District of Massachusetts

BOSTON – A Vineyard Haven CPA was sentenced on Tuesday, April 28, 2015, for filing false tax returns in which he underreported more than $800,000 in income for three years.

Roger A. Armstrong, 61, was sentenced by U.S. District Court Judge Indira Talwani to three years of probation, the first nine months of which are to be served in home confinement, and ordered to pay a fine of $3,000.  At the sentencing hearing, Armstrong paid restitution of $389,365, which included his taxes owed, as well as interest and penalties.  In January 2015, Armstrong pleaded guilty to three counts of filing false tax returns. 

Armstrong, a certified public accountant (CPA) and tax preparer who lived and worked on Martha's Vineyard, owned rental property in Massachusetts and Florida.   As a sole proprietor, Armstrong was required to accurately report his gross receipts and his business profit or loss on his individual income tax returns and also was to report any rental income he received.  For tax years 2009 through 2011, Armstrong filed tax returns in which he significantly underreported both his business gross receipts and his rental income.  Specifically, he did not report a total of $790,000 in gross receipts and $47,000 in rental income, and, as a result of the underreporting, did not pay $200,000 in taxes.

United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today.  The case was prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.

BOSTON – A skilled nursing facility operator in Maine, Rousseau Management, Inc., entered into an agreement with the United States to pay $300,000 to resolve allegations concerning inflated Medicare claims.

Rousseau, which owns the Horizons Living and Rehab Center in Brunswick, Maine, and previously provided administrative management services to the Amenity Manor skilled nursing facility in Topsham, Maine, entered into an agreement concerning claims for therapy purportedly provided by its subcontractor, RehabCare Group East, Inc. (RehabCare), a part of Kindred Healthcare, Inc.  This settlement resolves allegations that Rousseau submitted, or caused the submission of, claims to Medicare that sought inflated amounts of reimbursement based on the provision of unreasonable, unnecessary, unskilled rehabilitation therapy, or therapy that was not provided at all.

“This settlement is another in a series of resolutions involving inflated Medicare billing at skilled nursing facilities,” said United States Attorney Carmen M. Ortiz.  “We continue our efforts to ensure that the provision of care in nursing facilities is based on patients’ clinical needs and not tied to the inflated financial interests of the companies providing care.”

“These defendants allegedly made decisions based on profitability, rather than on patient care,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division.  “These actions not only affect patients, but have a ripple effect on taxpayers who pay into the system.  The FBI will continue to work with all of our law enforcement partners to make sure those who abuse the healthcare system are brought to justice.”

The United States alleges that prior to Oct. 1, 2011, Rousseau failed to take sufficient steps to prevent RehabCare from engaging in a pattern and practice of providing high levels of therapy that were not reasonable or necessary during so-called “assessment reference periods,” thereby causing Horizons and Amenity Manor to bill for their Medicare patients’ care at the highest reimbursement level, even though RehabCare was providing less therapy to those same patients during those periods when the facilities were not required to report to Medicare the amount of therapy their Medicare patients were receiving.

This settlement further resolves allegations that, even after Oct. 1, 2011, Rousseau failed to prevent other RehabCare practices designed to inflate Medicare reimbursement, including:  (1) presumptively placing patients in the highest reimbursement level unless it was shown that the patients could not tolerate that amount of therapy, rather than using individualized evaluations to determine the level of care most suitable for each patient’s clinical needs; (2) planning the minimum number of minutes of therapy required to bill at the highest reimbursement level while discouraging the provision of therapy in amounts beyond that minimum threshold, despite the Medicare requirement that the amount of care provided be determined by patients’ clinical needs; (3) arbitrarily shifting the number of minutes of planned therapy between therapy disciplines to ensure targeted reimbursement levels were achieved; (4) reporting that time spent on initial evaluations was therapy time in order to avoid the Medicare prohibition on counting initial evaluation time as therapy time; and (5) reporting that time spent providing unskilled palliative care was time spent on skilled therapy. 

HHS Hotline.  The government encourages anyone with information about the practices described above, or similar practices involving rehabilitation therapy in nursing facilities, to contact the Department of Health and Human Services Office of Inspector General Hotline via telephone, 1-800-HHS-TIPS (1-800-447-8477), or in writing via https://forms.oig.hhs.gov/hotlineoperations/.

This matter was investigated by the Department of Health and Human Services, Office of the Inspector General, and the Federal Bureau of Investigation.  The case was handled by Assistant U.S. Attorneys Gregg Shapiro and Patrick Callahan of Ortiz’s Affirmative Civil Enforcement Unit and Department of Justice Trial Attorneys Christelle Klovers and Rohith Srinivas.

BOSTON – The U.S. Attorney’s Office and the Justice Department today announced an agreement with J & R Associates, the owner and operator of the Royal Park Apartments in North Attleboro, Mass., to resolve allegations of discrimination against families with children in violation of the Fair Housing Act.

The lawsuit, filed today in U.S. District Court in Boston, alleges that J & R Associates discriminated against families with children seeking to rent units at Royal Park Apartments by maintaining and enforcing policies that segregate families with children in certain buildings and restrict them to certain floors and units within the 224-unit complex.  The allegations are based on evidence generated by the Department’s Fair Housing Testing Program, in which individuals pose as renters to gather information about possible discriminatory practices.

Under the terms of the agreement, which is in the form of a consent order and still must be approved by the Court, J & R Associates will establish a settlement fund in the amount of $135,000 to compensate victims of their discriminatory practices.  The defendant also will pay $7,500 in civil penalties to the United States.  The agreement requires J & R Associates to take steps to ensure that families with children no longer are restricted from renting units anywhere at Royal Park Apartments. 

“Families should be able to rent and live where they choose, without being discriminated against because they have children,” said United States Attorney Carmen M. Ortiz.  “My office remains committed to enforcing federal civil rights laws to ensure equality for the residents in this district.”

“Discrimination against families because they have children limits their ability to find suitable housing and will not be tolerated,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division.  “We appreciate the defendant’s cooperation with our investigation and willingness to resolve the claims.”

The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.  More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.  Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777.

This matter was handled by Assistant U.S. Attorney Jennifer Serafyn of Ortiz’s Civil Rights Enforcement Team and Trial Attorney Beth Pepper of the Justice Department’s Civil Rights Division.

BOSTON – A former Merrill Lynch and Smith Barney investment adviser already serving a federal prison term for investment fraud pleaded guilty on Tuesday, April 28, 2015 to additional fraud charges in connection with a nearly two-decade-long scheme to defraud clients of hundreds of thousands of dollars.

Jane E. O’Brien, 62, of Needham, pleaded guilty to three counts of mail fraud, two counts of wire fraud, and two counts of investment adviser fraud.  U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Aug.6, 2015.

As alleged in the indictment, between 1995 and 2013, O’Brien defrauded several clients for whom she provided investment advisory services.  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 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, paying purported investment returns, or repaying personal loans to other clients.  Finally, in order 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.

Specifically, O’Brien caused one client to empty her Smith Barney brokerage account, 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 was previously convicted of securities fraud after pleading guilty in December 2012 to a scheme to defraud yet another client of $240,000 by selling her a security that did not exist.  She is currently serving a sentence of 33 months in prison.

The charges of mail and wire fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater.  The charge of investment adviser fraud provides for a sentence of no greater than five years in prison, three years of supervised release, and a $10,000 fine.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

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 Stephen E. Frank, Deputy Chief of Ortiz’s Economic Crimes Unit.

BOSTON – Robert Fitzpatrick, former Assistant Special Agent in Charge (ASAC) of the FBI’s Boston Field Office, has been indicted by a federal grand jury on six counts of perjury and six counts of obstruction of justice in connection with his testimony at the 2013 trial of James “Whitey” Bulger.  Fitzpatrick was an ASAC in Boston between 1981 and 1986 and supervised the FBI’s organized crime squad in Massachusetts, Rhode Island, New Hampshire and Maine. 

Fitzpatrick, 75, of Charlestown, R.I., who is the author of “Betrayal, Whitey Bulger and the FBI Agent Who Fought To Bring Him Down," testified under oath at the Bulger trial on July 29 and July 30, 2013.  During that testimony, it is alleged that Fitzpatrick made false material declarations to aid Bulger’s defense and designed, in part, to enhance his own credibility as a former FBI official testifying for the defense.

It is alleged that Fitzpatrick falsely testified that: he was specifically sent to Boston by the Assistant Director of the FBI because there were major problems in the office, when, in fact, it was a routine reassignment and Fitzpatrick received no special instructions from the Assistant Director; that Bulger told Fitzpatrick that Bulger was not an FBI informant when, in fact, Bulger never denied to Fitzpatrick that Bulger was an informant; that Fitzpatrick tried to close Bulger as an FBI informant but was overruled by, among others, FBI headquarters when, in fact, Fitzpatrick never advocated that Bulger be closed as an informant; that he was not demoted and reduced in grade because of charges related to a shooting incident, when, in fact, Fitzpatrick was demoted due to his falsification of reports related to his investigation of a shooting incident; and that he personally arrested mob boss Jerry Angiulo when, in fact, Fitzpatrick did not arrest Jerry Angiulo.  Finally, it is alleged that Fitzpatrick falsely testified that he personally found the rifle that was used to assassinate Dr. Martin Luther King, Jr. in Memphis in 1968, “having just missed James Earl Ray, the shooter.”  According to the indictment, Fitzpatrick was not the first officer at the scene who recovered the weapon used to assassinate Martin Luther King.

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 on each of the six perjury counts and a sentence of no greater than 10 years in prison on the obstruction of justice counts.  The 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.

Fitzpatrick is scheduled to have his initial appearance before U.S. Magistrate Judge Donald L. Cabell later today.

United States Attorney Carmen M. Ortiz and Michael E. Horowitz, Inspector General for the Department of Justice made the announcement today.  This matter is being investigated by the Department of Justice Office of the Inspector General and is being prosecuted by Assistant U.S. Attorney Zachary R. Hafer of Ortiz’s Public Corruption and Special Prosecutions Unit.

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

BOSTON – A former Boston Police Officer was sentenced today in U.S. District Court in Boston for making false statements to the FBI relating to an investigation of the Academy Homes Street Gang (AHSG), a violent narcotics trafficking gang that operated out of the Academy Homes housing development in Roxbury.

Mel Steele, 36, of Boston, was sentenced to one year of probation and a fine of $2,000.  In December 2014, Steele pleaded guilty to one count of making false statements to the FBI during the course of a federal investigation.

Steele, who was assigned to the Boston Police Department’s (BPD) Youth Violence Task Force (YVTF), was a long-time friend of an associate of the AHSG.  During the course of joint FBI-BPD investigation of the AHSG from 2009 to 2011, Steele provided assistance to the AHSG associate.  On one occasion, Steele allegedly used his BPD computer to run a license plate check on a vehicle which was later determined to be an unmarked BPD vehicle operated by a detective who was conducting surveillance on the AHSG.  On another occasion Steele contacted a Massachusetts State Trooper to glean information about a gang member’s pending charges on another criminal case.  In May 2011, Steele made false statements about these matters when confronted by FBI agents.

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 investigation was conducted jointly by the FBI Public Corruption Unit and the Boston Police Department Anti-Corruption Division.  The case was prosecuted by Assistant U.S. Attorney Dustin Chao of Ortiz’s Public Corruption and Special Prosecutions Unit.

BOSTON – Frank Almeida, 49, of Fall River, pleaded guilty Wednesday, April 29, 2015, to distribution and possession of child pornography.  U.S.  District Court Judge Nathaniel M. Gorton scheduled sentencing for July 30, 2015. 

In June 2014, law enforcement officers became aware that an individual had posted child pornography to “megachat.us,” a public Internet file sharing program.  Federal agents examined the files, determined that they contained pictures and videos of minors engaged in sexually explicit conduct, and had been posted by Almeida.  When federal and state law enforcement officers executed a federal search warrant on Almeida’s residence, they seized a computer and various digital storage devices containing multiple images and videos of child pornography.

The charging statutes provide for a minimum mandatory term of five years and no greater than 20 years in prison, and a minimum mandatory term of five years and up to a lifetime 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; 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 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/. 

Members of the public who have questions, concerns or information regarding this case should call (617) 748-3274.

The City of Lawrence entered into a Consent Decree today with the Department of Justice to address violations of the Clean Water Act in connection with sewer overflows and the discharge of contaminated stormwater.

The Consent Decree is the result of a federal enforcement action brought by the U.S. Department of Justice, on behalf of the U.S. Environmental Protection Agency (EPA).  The complaint filed simultaneously with the Consent Decree alleges that Lawrence discharged untreated sewage without permit authorization and violated conditions of its permit controlling stormwater discharges.

“Unlawful discharges of pollutants from cities and towns during storm events remain among the most significant challenges to improving water quality in New England,” said U.S. Attorney Carmen M. Ortiz.  “By entering into this Consent Decree, the City of Lawrence has agreed to take significant steps to improve water quality, and the quality of life along the Merrimack River corridor.”

“This settlement ensures progress will be made in controlling major sources of pollution to the Merrimack River,” said Curt Spalding, Administrator of EPA’s New England region.  “We welcome this progress toward restoring the River and look forward to the day when it is safe for all kinds of recreation.”

The Consent Decree imposes a schedule for the City to develop sewer system management programs to investigate and rehabilitate its assets, minimizing the discharge of untreated sewage.  In addition, the City will institute programs to detect and eliminate sources of wastewater contamination of its stormwater system, as well as control runoff from land redevelopment projects.

Preventing sewage from contaminating surface and ground waters of the United States is one of EPA’s National Enforcement Initiatives.  Municipal wastewater presents significant health threats to those using contaminated waters for recreational use and downstream drinking water systems.

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

U.S. Attorney Ortiz and EPA Regional Administrator Spalding made the announcement today.  The case is being litigated by Assistant U.S. Attorney Susan M. Poswistilo of Ortiz’s Civil Division, Senior Attorney Michael Wagner of the  EPA, and Trial Attorney Brian Donohue of the Department of Justice’s Environment and Natural Resources Division.   

BOSTON – The U.S. Attorney’s Office entered into an agreement today with the Ware Police Department resolving a complaint that the Department lacked effective means to communicate with people who are deaf or hard of hearing.

“Equal access to justice requires that law enforcement be able to effectively communicate with all arrestees, witnesses, and victims to ensure they understand their rights,” said U.S. Attorney Carmen Ortiz.  “Through their cooperation and commitment to implementing this agreement, the Ware Police Department is taking a critical step in effecting these necessary changes.”

The agreement requires the Ware Police Department to contract with a qualified sign language interpreting agency and provide sign language interpreters to arrestees, detainees, suspects, victims, witnesses, complainants, and visitors who are deaf or hard of hearing.  The agreement also requires the Ware Police Department to establish nondiscriminatory policies and to train all officers on communication with persons who are deaf or hard of hearing. 

This complaint arose under the Americans with Disabilities Act which requires the Ware Police Department, as a public entity, to ensure effective communication with people with disabilities. 

This matter was handled by Assistant U.S. Attorneys Michelle Leung of Ortiz’s Civil Rights Enforcement Team and Kevin O’Regan, Chief of the Springfield Branch Office.

BOSTON – A Boston area attorney, who was disbarred in 2007 after practicing law for more than three decades, was sentenced to federal prison today for tax and bank fraud violations.  His crimes arose in connection with recording fraudulent tax and bank releases on his seaside Marblehead home and his vacation home in Edgartown on Martha’s Vineyard.  Both properties were later foreclosed on.

John C. McBride, 66, was sentenced today to two years in prison, two years of supervised release, and restitution to be determined at a later date.  In January 2015, McBride pleaded guilty before U.S. District Chief Judge Patti B. Saris to bank fraud and endeavoring to obstruct and impede the due administration of the Internal Revenue laws.

In early 2008, McBride, a now-disbarred criminal defense lawyer, recorded six fraudulent federal tax lien releases against his Marblehead home, in order to obtain a $288,000 loan secured by that property and deprive the IRS of its nearly $700,000 secured interest.  McBride prepared the releases himself, without the knowledge or authorization of the IRS, and forged the signatures of IRS officials on them.  In March 2008, McBride attempted, unsuccessfully, to record two similar fraudulent tax lien releases against a second home he owned in Edgartown, on Martha’s Vineyard.  In 2011, McBride attempted to obtain a $387,000 reverse mortgage loan from Bank of America, which was to have been secured by his Edgartown property.  In connection with that loan application, McBride falsely told the bank that there were no liens on the Edgartown property and that he was not then in bankruptcy.  In fact, there were substantial liens on the property and McBride’s bankruptcy case, which he had filed in 2009, was still ongoing.  In furtherance of his effort to obtain the bank loan, McBride prepared and recorded a fraudulent and unauthorized discharge of mortgage which purported to discharge a more than $700,000 existing mortgage on his Edgartown property.  Bank of America discovered that the discharge was fraudulent before the loan closed, and no funds were disbursed to McBride.

United States Attorney Carmen M. Ortiz; Robert E. O’Malley, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration, Office of Investigations, New York Field Office (TIGTA); Vincent B. Lisi, Special Agent Charge of 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 was prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.

BOSTON – A Northampton man, who was convicted in 2005 for possessing child pornography, was charged today in U.S. District Court in Springfield with the same offense.

Robert F. Sokolowski, Jr., 42, was charged in an information with one count of possessing material involving the sexual exploitation of a minor.  Pursuant to a plea agreement, Sokolowski has agreed to be sentenced to 12.5 years in prison and 10 years of supervised release pending approval by the Court.  A plea hearing is scheduled for May 12, 2015.

According to court documents, on July 3, 2013, Sokolowski uploaded a child pornography file to a Facebook account in the fictitious name of “Amy Addams.”  During a search executed by local law enforcement officers at Sokolowski’s apartment, a laptop was seized that revealed 14 fictitious Facebook accounts, including the “Amy Addams” account.  Also found on the laptop were 400 images of child pornography, including a copy of the file that had been uploaded to the “Amy Addams” account, as well as four video files of child pornography, including one that depicted the rape of a female toddler. 

On July 25, 2013, law enforcement obtained a search warrant for the Facebook accounts used by Sokolowski and located additional evidence of child pornography.

The charging statute provides for a minimum mandatory sentence of 10 years and no greater than 20 years in prison, a minimum of five years and a maximum lifetime of supervised release, a fine of $250,000, forfeiture of his computer media, and restitution to the victims in his child pornography collection.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

In June 2005, Sokolowski pleaded guilty to one count of possessing material involving the exploitation of minors.  In October of that year, he and was sentenced to 46 months in prison and three years of supervised release.   

United States Attorney Carmen M. Ortiz; Chief Russell P. Sienkiewicz of the Northampton Police Department; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.

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

BOSTON – A North Adams woman pleaded guilty in U.S. District Court in Springfield on Wednesday, April 22, 2015, to fraudulently concealing her marriage from the Social Security Administration to secure unauthorized Social Security payments.

Nancy Killackey, 54, pleaded guilty before U.S. District Court Judge Mark G. Mastroianni to one count of fraudulent concealment to secure unauthorized social security payments.  Between Jan. 1, 2002 and Oct.1, 2013, Killackey fraudulently concealed her 2001 marriage with the intent to secure $72,635 in Social Security Supplemental Security Income payments.  Because her husband earned sufficient income, Killackey was not eligible to receive the supplemental income benefit.  When confronted by federal agents from the SSA Office of Inspector General, Killackey falsely claimed that she was not married to her husband. She said that on the day of their marriage, he had a heart attack and the wedding did not take place.

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

United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Regional Office, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.

BOSTON – A former clinical care technician at Tufts New England Medical Center was charged yesterday with stealing pain medication from patients in intensive care.

Michelle R. Tomlinson, 29, of Somerville, was charged in an Information with acquiring and obtaining a controlled substance by deception and subterfuge.

According to the charging document, on Jan. 1, 2014, Tomlinson, who worked as a clinical care technician at Tufts New England Medical Center, diverted Dilaudid, also known as hydromorphone, from IV bags.  Specifically, it is alleged that Tomlinson entered the rooms of three patients in the surgical intensive care unit under false pretenses and surreptitiously extracted Dilaudid from their IV bags through a syringe.

The charging statute provides a sentence of no greater than four 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; Jeffrey Ebersole, Acting Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health, Division of Food and Drugs, Drug Control Program, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Maxim Grinberg of Ortiz’s Health Care Fraud Unit.

BOSTON – Julio Gomez, 30, of Lowell, Mass., was sentenced yesterday by U.S. District Court Judge Richard G. Stearns to 57 months in prison and three years of supervised release.  In January 2015, Gomez pleaded guilty to being a felon in possession of a firearm.

On May 2, 2014, after law enforcement officers determined that Gomez was trafficking firearms, they executed a federal search warrant at 43 Elm Street, Apartment 4, in Lowell, Mass.  During a search of the residence, which was used by Gomez and others as a base of operation in an illegal gun trafficking business, officers seized a Remington Arms rifle, a WASR-10 rifle, and a High Standard revolver loaded with nine rounds of ammunition, as well as an additional 193 rounds of ammunition.

During an interview, Gomez admitted to selling 12 to 14 firearms to two men from Boston.  Gomez explained that he was the middleman for the transactions and that he found buyers for people looking to sell firearms.

United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Lowell Police Superintendent William Taylor, made the announcement today.  The case was prosecuted by Assistant U.S. Attorney Tobin of Ortiz’s Major Crimes Unit.

BOSTON – Following a six-day trial, a federal jury convicted a Springfield man with distributing cocaine, crack cocaine, and being a felon in possession of a firearm and ammunition.

Sherad Therrien, 24, was convicted yesterday of distributing and possessing with intent to distribute both cocaine and crack cocaine, and being a felon in possession of a firearm and ammunition.  U.S. District Court Judge Timothy S. Hillman scheduled sentencing for July 16, 2015. 

On Sept. 4, 2013, Therrien sold a cooperating witness 27 grams of cocaine, 6 grams of cocaine base in the form of crack cocaine, a HiPoint, 9mm handgun, and 7 rounds of 9mm ammunition for $2,140.  On Dec. 11, 2013, Therrien sold the witness an additional 12 grams of cocaine base in the form of crack cocaine for $62.  Two months later, Therrien sold nearly 14 grams of cocaine for $620 to the witness.  Finally, on March 28, 2014, Therrien sold 10 grams of cocaine for $625.

The charge of distributing cocaine and/or crack cocaine provides a sentence of no greater than 20 years in prison, five years of supervised release, and a fine of $1 million.  The charge of being a felon in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner John Barbieri, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Todd E. Newhouse of Ortiz=s Springfield Branch Office.

BOSTON – The United States Attorney’s Office, in partnership with Worcester Public Schools, the Worcester County District Attorney’s Office and the Worcester Police Department, conducted a youth violence prevention event on Wednesday, April 15, 2015 for 110 fifth and sixth-grade students at Woodland Academy in Worcester.

The “Your Future, Your Decision” program has been presented by the U.S. Attorney’s Office to over 2,700 middle school students around the state, combining an emphasis on the importance of good decision-making skills with a resource fair featuring after-school and summer activities.  Speakers representing the U.S. Attorney’s Office, District Attorney’s Office, Worcester Public Schools and Police Department told the students about the choices they made along the way that kept them on a positive path in their lives.  Worcester native Jeffrey Lassey also made a powerful presentation to the young people about poor decisions that he made as a young person and the consequences he faced, including prison time.  Topics that were spotlighted included involvement with gang activity, guns, drugs, bullying, and the legal and social consequences that can impact the students’ futures, particularly affecting their ability to get jobs, housing and admission to college.  

U.S. Attorney Carmen Ortiz said, “It’s extremely important that we get the message to middle school students that this is the time to start thinking about the decisions they make every day and how those choices can affect the rest of their lives.  Many outside factors are influencing our youth, and the best possible tool for them is the resiliency to be able to step back and evaluate their options when faced with difficult decisions.  That’s what we endeavor to provide with the ‘Your Future, Your Decision’ program.”

According to Woodland Academy Principal Patricia Padilla, “Woodland Academy students were very fortunate to take part in the ‘Your Future, Your Decision’ program.  Having the opportunity to hear powerful messages about making positive choices, has equipped them with the strategies needed when faced with challenging situations throughout their lives.”

Following the speaker presentations, the students visited a resource fair in the school’s gymnasium offering information on after-school and summer programs.  Agencies participating in the fair included the Worcester Boys & Girls Club, Clark University Basketball Camp, Friendly House Neighborhood Center, Girl Scouts of Central and Western Massachusetts, Guild of St. Agnes, Salvation Army’s Bridging the Gap Program, Worcester Public Library, Worcester YMCA and Worcester Youth Flag Football.  A resource guide, developed by the U.S. Attorney’s Office and produced by Worcester Public Schools, was also provided to students.  The guide provides information about activities and programs in the City of Worcester.

BOSTON –A physician specializing in pain management was charged in a second superseding indictment yesterday for overbilling the Medicare Program.

Fathalla Mashali, 60, of Dover, was charged with 27 counts of heath care fraud, one count of mail fraud conspiracy, and 16 counts of money laundering in connection with billing the Medicare Program for services that he did not provide to his Medicare patients between October 2010 and March 2013.  Mashali was originally indicted in April 2014.

The indictment alleges that Mashali was a licensed physician in Massachusetts and Rhode Island.  Mashali operated New England Wellness & Pain Management, P.C., a/k/a New England Pain Associates, P.C., of Massachusetts and Rhode Island, a/k/a Greystone Pain Management, Inc., a/k/a New England Pain Institute, P.C. (NEPA).  Many of the patients at NEPA were Medicare beneficiaries.

It is alleged that Mashali trained NEPA employees, including physician assistants and registered nurses, to overbill the Medicare Program.  Mashali overbooked patient appointments, sometimes with as many as four patients per appointment slot, and arrived to work up to four hours late.  The patient appointments often lasted less than 10 minutes and sometimes as few as two to three minutes during which he often failed to perform physical examinations.  With the exception of patients requiring injections, Mashali conducted patient visits in a small office with a desk, resembling a business office, rather than in an examination room containing medical equipment.  Nevertheless, Mashali submitted materially false and fraudulent claims to the Medicare program, seeking reimbursement for patient services far exceeding in scope and duration the actual services he provided to his Medicare patients.

The indictment also alleges that between November 2011 and October 2012, while the laboratory was not in compliance with federal regulations, Mashali billed Medicare for urine drug tests.  Mashali collected urine specimens from his patients and tested them for drugs, presumably to determine whether the patients were using abusive drugs and whether they consumed their prescription medication.  Mashali tested each urine specimen at his laboratory in Holbrook on two chemical analyzers contemporaneously and billed Medicare for those tests.  In addition, he billed Medicare for a third test, called a confirmatory test, which he did not perform.   Although the administration of a confirmatory test would have depended on the outcome of the initial urine test, Mashali billed for the confirmatory tests before he conducted any urine tests whatsoever.

Furthermore, the indictment alleges that Mashali used two chemical analyzers that were not properly validated and used the same chemical method to test the urine for drugs and therefore could not confirm each other’s results.  Mashali also tested the urine weeks and sometimes three months after it had been collected from his patients.  The urine was kept unrefrigerated and, due to the age of the urine and the improper storage conditions, the smell permeated the laboratory, leaked from collection cups, and appeared discolored.  Prior to an inspection by a federal health inspector in February 2012, Mashali ordered his staff to move the unrefrigerated urine specimens out of the laboratory, but then returned the specimens following the inspection.

The indictment further alleges that between March and April 2013, Mashali conspired to defraud Medicare.  Specifically, in February 2013, the Centers for Medicare & Medicaid Services (CMS) directed its contractor, StrategicHealthSolutions, LLC, to audit NEPA’s charges to Medicare for patients’ follow-up office visits, known as CPT charges.  StrategicHealthSolutions mailed a letter to Mashali informing him of the post-payment review, selected 40 claims from the myriad claims Mashali had submitted in 2011 and 2012, and requested that he submit supporting documentation to validate the provided patient services.  It also noted that failure to comply with this request, “could result in potential denial and recoupment of payment previously issued.”  In response to the request, Mashali and others created false patient notes and urine drug test reports.

Specifically, the indictment alleges that Mashali and his co-conspirators included false new information, such as the written memorialization of extensive patient physical examinations and treatment plans, false urine drug test reports containing Mashali’s notations and signature that were not present in the original reports, and false dates on which the urine was tested in order to suggest that Mashali actually had reviewed the test results.  This was done to conceal from CMS the long delays in testing patients’ urine specimens and the improper storage conditions at NEPA.

Lastly, the indictment alleges that, on 16 occasions, Mashali transferred $670,758 out of NEPA’s operating account for personal expenditures, such as improvements to his home in Dover and his second residence in Fort Lauderdale, Fla., car loan payments, and other personal expenses.

The charge of health care fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000 or twice the pecuniary gain or loss, and restitution on each count.  The charge of conspiracy to commit mail fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the pecuniary gain or loss, and restitution on each count.  The charge of conspiracy to commit mail fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the pecuniary gain or loss, and restitution.  The charge of money laundering provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000 or twice the pecuniary gain or loss, and restitution on each count.  The indictment also contains a forfeiture allegation listing the assets traceable to the ill-gotten gains from Medicare.  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; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorneys Maxim Grinberg of Ortiz’s Health Care Fraud Unit and Katherine Ferguson of Ortiz’s Drug Task Force 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.

BOSTON – Two former members of a powerful Boston Teamsters local, including its principal officer and a member who had been convicted of a prior felony, were sentenced today on charges of extortion and racketeering, including charges that they extorted local non-profits.

John Perry, 62, of Woburn was sentenced to 30 months in prison, a $12,500 fine and one year of supervised release following his conviction on multiple felony counts after a seven week trial.  His co-defendant, Joseph “Jo Jo” Burhoe, 46, of Braintree, who was also convicted of multiple felony counts at the same trial, was sentenced to 70 months in prison and three years of supervised release.   Both were sentenced by Judge Denise Jefferson Casper who scheduled a restitution hearing for May 22.  Several members of former Local 82 gave victim impact statements at the sentencing hearing

Perry, the former Secretary/Treasurer of Boston Teamster’s Local 82, and Burhoe, a member who acted as Perry’s enforcer, were convicted of extorting non-profits and other non-union businesses in Boston, as well as extorting other union members of their wages and benefits.  Among the extortion victims were Brigham and Women’s Hospital, Massachusetts General Hospital, and the United States Green Building Council.  Since the time of the crimes, Local 82 has been merged with Teamsters Local 25.  Those Locals load and unload trucks at major business and entertainment venues in downtown Boston.

Perry, Director of Trade Shows and Convention Centers for the International Brotherhood of Teamsters Local 82, and Burhoe, a convicted felon who was a member of the union, worked in the trade show and moving industries.  Since 2007 the defendants engaged in illegal activities in order to generate money for themselves, their friends, and family members.  The defendants extorted various entities throughout Boston including hotels, event planners, catering companies, pharmaceutical companies, hospitals, music entertainment companies, and non-profit organizations, none of which had collective bargaining agreements with Local 82.

The defendants threatened to picket and disrupt business, sometimes just hours before an event, if the entity did not accede to the defendants’ demand for unwanted, unnecessary and superfluous jobs for themselves, their friends and family.  Payment was demanded for these unnecessary jobs.  They also used threats of physical and economic harm to deprive members of Local 82 of their legally-protected rights as union members.

Two other defendants, James Deamicis, a/k/a “Jimmy the Bull,” 51, of Quincy, and Thomas Flaherty, 50, of Braintree were acquitted during the trial.

U.S. Attorney Ortiz; Inspector General Scott S. Dahl; Mark J. Neylon, District Director, Office of Labor-Management Standards, U.S. Department of Labor; Susan A. Hensley, Regional Director of The Employee Benefits Security Administration, U.S. Department of Labor; and Commissioner Evans made the announcement today.  The case is being prosecuted by Laura J. Kaplan and Susan G. Winkler of Ortiz’s Organized Crime and Drug Task Force Unit, respectively.

BOSTON – A Fitchburg man was sentenced today for possessing at least 600 images and 200 videos of child pornography.

Leonel Ramon Grullon, 44, was sentenced by U.S. District Court Judge Leo T. Sorokin to five years in prison, five years of supervised release and restitution.  In January 2015, Grullon pleaded guilty to transporting and possessing child pornography.

On May 24, 2014, Grullon landed at Logan International Airport, returning from a trip to the Philippines.  During a customs examination, child pornography was found on Grullon’s tablet device.  Additional images and videos of child pornography were located on Grullon’s smartphone.

During questioning, Grullon initially denied knowledge that he was in possession of child pornography.  After officers described the video located on the Samsung tablet, Grullon admitted possessing and downloading the file and to downloading child pornography from the internet.  Grullon stated that he watched child pornography and bestiality videos on different websites, some of which he downloaded to his phone and his desktop computer at his home.  Grullon also stated that he had engaged in sexual activity with a 17-year-old boy while in the Philippines.

During a search executed at Grullon’s residence in Fitchburg, forensic examination of Grullon’s numerous digital devices, including computers, DVDs, and hard drives, revealed a substantial collection of child pornography, totaling at least 600 images and 200 videos, largely depicting boys aged 6 to 10-years-old engaged in sexually explicit conduct, including lewd and lascivious posing, sexual acts, and sado-masochistic bondage.

The United States Attorney’s Office asked the Court to impose a 78 month prison sentence.  The defense requested a 60 month prison sentence, which was the lowest sentence allowed by law.  The United States argued that the imposition of the lowest sentence allowed by law would send the wrong message to victims and those contemplating committing such crimes.  In his comments, Judge Sorokin noted that he was imposing the 60 month sentence not because it was the lowest allowed by law, but because he believed it was a fair sentence.

United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today.  The case was prosecuted by Assistant U.S. Attorney David G. Tobin of Ortiz’s Major Crimes Unit.

BOSTON – A Chelsea man was sentenced today for illegally obtaining unemployment insurance benefits.

Oscar P. Valles-Lopez, a/k/a Oscar Valle, 44, was sentenced by U.S. District Court Judge George A. O’Toole, Jr. to one year of probation, the first four months of which is to be served in home confinement, and restitution in the amount of $46,218 to the Massachusetts Division of Unemployment Assistance.  In November 2014, Valles-Lopez pleaded guilty to one count of mail fraud.

Valles-Lopez is an El Salvadorian national who illegally reentered the United States in July 2003 after previously living in this country from 1996 to 2001.  After working for several years under fraudulently obtained immigration papers, he lost his job in 2009.  Although Valles-Lopez knew he was not entitled to unemployment insurance benefits without a valid work permit, he paid $400 for a false permit and made three claims for benefits in 2009, 2010, and 2012.  Over the course of several years, Valles-Lopez cashed 111 unemployment checks totaling $46,218.

United States Attorney Carmen M. Ortiz; Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, New York Regional Office; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today.  The case was prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.

BOSTON – In a third superseding indictment unsealed today, two men were charged with witness tampering by attempting to kill him and for conspiring with each other to do so.  These charges were brought in addition to charges previously filed against one of the men involving a multi-state sex trafficking ring that victimized minor and adult women.

Jaquan Casanova a/k/a “Cass,” “Joffe,” “Joffy,” and “Joffy Joe,” 24, of Dorchester was charged for the first time in a third superseding indictment for tampering with a witness by attempting to kill him and for making false statements to a federal agent.  Raymond Jeffreys, a/k/a “Skame Dollarz,” “Skame,” “Skamen,” “Define Dollarz,” and “Frenchy,” 27, of Dorchester, Jamaica Plain, and Portland, Maine; and Corey Norris, a/k/a “Case,” and “Jacorey Johnson,” 25, of Dorchester, were also charged in the third superseding indictment.  Jeffreys was charged alongside Casanova with tampering with a witness by attempting to kill him and with conspiring with each other to do so.  In addition, Jeffreys and Norris were charged again with the multiple sex trafficking counts brought against them in previous indictments. 

Specifically, the third superseding indictment charges Jeffreys and Norris with the trafficking and transportation of nine victims, six of whom were under the age of 18, for the purposes of prostitution in Massachusetts, Maine, New Hampshire, Vermont, Rhode Island, Connecticut, Pennsylvania, New Jersey, New York, Maryland, Nevada, Georgia, Florida and California.  The charges of tampering with a witness by attempting to kill that witness are related to this sex trafficking organization.  The initial indictment in the case, returned in March 2013, charged Norris, Darian Thomson, a/k/a “Bo,” “Dee Bo,” and a woman named Vanessa Grandoit with sex trafficking of a minor from Massachusetts to Rhode Island in December 2012.  According to the allegations in the third superseding indictment, in April 2013, Thomson was released from state custody on unrelated state charges in New Jersey and returned to Boston, where he was shot in the head by Casanova at the direction of Jeffreys.  The third superseding indictment alleges that Jeffreys believed that Thomson had cooperated with law enforcement in New Jersey and directed the shooting of Thomson with the intent to kill him in order to prevent Thomson from providing information to federal law enforcement regarding his and Norris’ sex trafficking activities.

The third superseding indictment also re-alleges that, at various times from 2006 through 2014, Jeffreys, Norris, and others trafficked the victims for prostitution by force, fraud or coercion and, in the cases of the minor girls, knowing or in reckless disregard that they were under the age of 18.  The third superseding indictment contains specific allegations regarding the sex trafficking operation, such as that Jeffreys targeted vulnerable girls and women, including those who were poor and/or homeless, drug addicts, and those who were already working as prostitutes or who had done so in the past.  Many of the women either had children when they met Jeffreys and/or became pregnant with his child.  Jeffreys used a variety of techniques to persuade and manipulate the women, including making promises about providing for them and their children, and then only doing so if the women performed acts of prostitution.  Jeffreys used a variety of techniques to control the girls and women through force, fraud, coercion and a combination of those means, including by threatening the women that he would kill them.  The third superseding indictment also alleges that Jeffreys worked with other men as “pimp partners” or “p partners” to share resources, such as car rides, hotel rooms, and payment for online advertisements.  Jeffreys taught other men, including Norris and Thomson how to engage in sex trafficking, and these men became “pimp partners” with Jeffreys.

The charge of tampering with a witness by attempting to kill him or conspiring to do so provides a sentence of no greater than 30 years in prison, five years of supervised release, a fine of $250,000, and restitution.  Each of the charges of sex trafficking by force, fraud or coercion, provides for a mandatory minimum sentence of 15 years in prison and a maximum sentence of a lifetime in prison,  a minimum of five years and a maximum of a lifetime of supervised release, a fine of $250,000, and restitution.  Each of the charges of sex trafficking of a minor provides for a mandatory minimum sentence of 10 years in prison and a maximum of a lifetime in prison, five years of supervised release, a fine of $250,000, and restitution.  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, Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans, made the announcement today.  The witness tampering charges were investigated jointly by HSI and the Boston Police Department’s Human Trafficking Unit and Homicide Unit.  The sex trafficking charges were investigated jointly by HSI, BPD, and the Federal Bureau of Investigation.

The U.S. Attorney’s Office also wishes to recognize and thank Shawn Meehan, Resident Agent in Charge of the HSI Portland Office; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Aaron Steps, Supervisory Senior Resident Agent in Charge of the FBI Maine Office; the Suffolk County District Attorney’s Office; Cumberland County (Maine) District Attorney’s Office; the United States Attorney’s Office for the District of Maine; the Massachusetts State Police; the Portland (Maine), Old Town (Maine), Braintree, and South Portland (Maine) Police Departments; the Maine Drug Enforcement Agency; and the Cumberland County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorneys Amy Harman Burkart and Christopher Pohl of Ortiz’s Civil Rights Enforcement Team and Special Assistant United States Attorney and Suffolk County Assistant District Attorney David S. Bradley.

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.

Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.

BOSTON – An Acton woman pleaded guilty today to distributing 25B-NBOMe, a synthetic hallucinogen, also known as “N-Bomb” that is gaining popularity among young people.

Mikayla Brogna, 19, pleaded guilty to a superseding information that charged her with distribution of 25B-NBOMe, a Schedule I controlled substance.  Brogna was indicted in November 2014 and is scheduled to be sentenced on ­Aug. 11, 2015 before U.S. District Court Senior Judge Mark L. Wolf.

On August 9, 2014, the defendant supplied 14 tabs of 25B-NBOMe (NBOMe) to a 16-year-old high school boy for $100.  The student later ingested the drug and experienced a non-fatal overdose requiring hospitalization.  NBOMe, is a psychedelic drug that can be similar in appearance to LSD and can take many forms, including pills, powder, liquid drops, and colorful paper blotter tabs.  NBOMe is a synthetic hallucinogen that is growing in popularity among young people who are unaware of its potentially lethal effects, even in small doses.  Across the country, numerous deaths have been linked to NBOMe.

The charging statute provides a sentence of no greater than 20 years in prison, a minimum of three years of supervised release, and a $1 million fine.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today.  Assistance with this investigation was also provided by the Concord, Acton, Chelmsford, Lincoln, Sudbury, and Westford Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Linda M. Ricci of Ortiz’s Organized Crime Drug Enforcement Task Force.

BOSTON – A Worcester woman was sentenced yesterday in U.S. District Court in Worcester for fraudulently receiving more than $50,000 of disability benefits under a stolen identity.

Lydean Howe, a/k/a “Sally Smith,” 52, was sentenced by U.S. District Court Judge Timothy S. Hillman to two years and one day in prison and three years of supervised release.  In November 2014, Howe pleaded guilty to one count of aggravated identity theft and one count of Social Security fraud.

In 1998, Howe stole the identity of another individual, and used the stolen identity to work, obtain a driver’s license and other identification documents, and to obtain credit cards, among other things.  In 2008, using the stolen identity, Howe applied for and obtained Social Security Administration disability benefits, falsely claiming that the other individual’s social security number had been assigned to her by the Social Security Administration.  When first questioned by the Social Security Administration about her identity, Howe claimed that she was a victim of identity theft and thereafter attempted to divert law enforcement’s focus to another person.  Howe obtained $50,827 in disability benefits under the stolen identity.

United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today.  The case was prosecuted by Assistant U.S. Attorneys Michelle L. Dineen Jerrett and Greg A. Friedholm of Ortiz’s Worcester Branch Office.

BOSTON – Daniel J. O’Hern, 65, a Mashpee resident and former New York pediatrician, pleaded guilty yesterday to distribution and possession of child pornography.  U.S. District Court Judge Denise J. Casper scheduled sentencing for July 21, 2015. 

On May 31, 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 5 to 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. 

The charge of distribution of child pornography provides for a minimum mandatory term of five years and no greater than 20 years in prison, a minimum term of five years to a lifetime of supervised release, and registration with the sex offender registration board.  The charge of possession of child pornography provides for a term of no greater than 10 years in prison and a lifetime 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; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Chief Rodney Collins of the Mashpee Police Department; and Chief Paul MacDonald of the Barnstable Police Department made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.

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

BOSTON – A Dartmouth Selectman was convicted today of embezzling funds from his bus company, which was subsidized with taxpayer funds, to bankroll his personal farm.

John George, 68, was indicted in August 2014, and today he was convicted by a jury of one count of conspiracy and one count of embezzlement.  Sentencing is scheduled for July 15, 2015, before Judge Denise Casper.

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.

The maximum penalty for the charge of embezzlement is a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 on the charge of embezzlement from an organization that received federal funds.  On the charge of conspiracy to defraud the United States, the maximum penalty is 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. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz and Todd A. Damiani, Special Agent in Charge of the U.S. Department of Transportation, Office of Inspector General, Boston Field Office, made the announcement today.  The case was investigated by the U.S. Department of Transportation, Office of the Inspector General, and is being prosecuted by Assistant United States Attorney Dustin Chao and Assistant United States Attorney Ryan M. DiSantis of Ortiz’s Public Corruption Unit.

BOSTON – A Chelmsford man was charged yesterday in U.S. District Court in Boston for initiating a murder-for-hire plot.

Andrew S. Gordon, 52, was charged in a criminal complaint with use of interstate commerce facilities in the commission of murder-for-hire.  He is scheduled to have an initial appearance before U.S. District Court Magistrate Judge Judith G. Dein on Friday, April 17, 2015.

According to the complaint, in October 2014, Gordon was charged by the Middlesex County District Attorney’s Office with plotting to have his estranged wife murdered.  In that case, Gordon attempted to hire a “hit man” to kill his wife; however, the “hit man” was actually an undercover Massachusetts State Trooper.  Since his arrest, Gordon has been held on state charges at the Middlesex House of Correction and Jail.

According to the federal complaint, while Gordon was incarcerated on the state charge, he attempted to hire a gang member living in New Hampshire to kill a Massachusetts State Trooper and another individual who were both witnesses against him in the pending case.  For the commission of the murders, Gordon offered $15,000 and instructed that the murders were to appear accidental.  Gordon, who believed that murdering the witnesses would effectively end the state’s ability to prosecute him, was actually communicating with an undercover officer.

The federal statute provides for a sentence of no greater than ten years in prison, three years of supervised release, and a fine of $250,000.  Gordon will be prosecuted and sentenced separately by the Commonwealth of Massachusetts for the crimes charged by the state.

U.S. Attorney Carmen M. Ortiz; Middlesex County District Attorney Marian Ryan; Middlesex Sheriff Peter J. Koutoujian; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney David G. Tobin of Ortiz’s Major Crimes Unit. 

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

BOSTON – An Andover man was sentenced today for stealing more than $149,000 in Social Security benefits.

Graeme Griffith, 60, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to four months in prison, two years of supervised release, and a $3,000 fine.  Griffith also paid full restitution of $149,285 today.  In January 2015, Griffith pleaded guilty to theft of public money.

In 2003, Griffith’s father died, but his monthly Social Security benefits continued to be directly deposited into a joint bank account in his and his father’s names.  From 2003 to 2014, Griffith continued to receive his deceased father’s benefits totaling $149,285.

This case was brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the Social Security Administration to investigate and prosecute the posthumous fraud of Social Security benefits.  In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died.

One of the ways the Social Security Administration detects this kind of fraud is through the Medicare Non-Utilization Project, in which the agency investigates people receiving benefits who are at least 90 years old and who have not used their Medicare Part B benefits for three or more years.  In some instances, the agency learns that such a person is actually deceased, but a surviving child has continued to take the deceased person’s benefits.

Since October 2013, the U.S. Attorney’s Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money.

Earlier this month, Frances Kenney Moseley, of Boston, was sentenced to three years of probation, including six months of home confinement, 1500 hours of community service, a fine of $5,000, and restitution of $470,188, of which she has paid $124,000.  From 2003 to 2010, Moseley stole $222,172 in Social Security benefits and $248,016 in annuity funds paid to her deceased father.

In February 2015, Charles Gerbutavich, of Manchester, was sentenced to one year of probation, including three months of home confinement, and was ordered to pay a $3,000 fine and $161,587 in restitution to the Social Security Administration, which he paid in full in February.  Gerbutavich pleaded guilty in connection with taking his deceased father’s Social Security benefits, which were directly deposited into a joint bank account after his death in 1993.

In October 2014, Mary Murphy, of Dorchester, was sentenced to 18 months of home confinement and 10 hours per week of community service, and was ordered to pay a fine of $40,000 and $331,630 in restitution, which she paid in full in October.  Murphy pleaded guilty in connection with taking her deceased mother’s Social Security and Civil Service retirement benefits, which were directly deposited into a joint bank account after her death in 1977.

Also in October 2014, Richard Oldham, of Old Orchard Beach, Maine, was sentenced to four months in prison, six months of home confinement, and was ordered to pay $195,862 in restitution for endorsing Social Security checks in his deceased mother’s name following her death in 1993. 

In August 2014, George Bergstrom, of Shrewsbury, was sentenced to one year of probation and was ordered to pay $57,948 in restitution – which he paid in full in August – for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 2009.

In October 2013, John Flaherty, of Newburyport, was sentenced to 10 months in prison and was ordered to pay $168,830 in restitution for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 1993.

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

BOSTON – A Lawrence man was sentenced today to 16 years in prison for his role in a 2012 kidnapping.

Julio Gonzalez, 30, was sentenced to 16 years in prison and three years of supervised release after pleading guilty in November 2014 to conspiracy to commit kidnapping.

Gonzalez was part of a kidnapping crew headed by Alfred Vasquez.  On Jan. 30, 2012, Vazquez, Gonzalez, Edgar Acevedo, Alberto Moreno, and Deborah Torres, all of Lawrence, held a gun to a victim and kidnapped him from a street in the Jamaica Plain neighborhood in Boston. Through Vasquez, the crew demanded a $100,000 ransom for the victim’s release and, joined by William Ayala, held the victim in Lawrence for five days.  After agents interceded, the victim was rescued, unharmed, in Lawrence.  Among other evidence, members of the crew were identified by fingerprint and DNA evidence.

Gonzalez is the second member of this Lawrence-based kidnapping crew to be sentenced.  In March 2015, Acevedo was sentenced to 16 years in prison.

The charge of conspiracy to commit kidnapping provides for a sentence of life in prison.  Actual sentences for federal crimes are typically less than the maximum penalty.  Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.    

This case is part of a two-year investigation by the U.S. Attorney’s Office, the Federal Bureau of Investigation, the Massachusetts State Police, the Lawrence Police Department, and other law enforcement agencies into violent kidnapping and home invasion crews operating in Lawrence.  According to affidavits and other documents filed in court, the investigation revealed that the majority of these kidnappings were carried out by organized, armed, violent crews often referred to as Joloperros (loosely translated as “Stick-up Guys”).  These Joloperros crews typically kidnapped drug dealers for large ransoms, paid in cash and/or drugs; used safe houses to hold their hostages; and sometimes assaulted and burned their victims while they held them captive.  These crews also frequently used sophisticated tracking techniques, such as GPS devices, to follow their victims before the abductions, and at times used associates in the Dominican Republic to receive ransom money.

United States Attorney Carmen M. Ortiz; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Chief James Fitzpatrick of the Lawrence Police Department; Commissioner William Evans of the Boston Police Department; Chief Domenic J. DiMella of the Saugus Police Department, made the announcement today.  The cases are being prosecuted by Assistant U.S. Attorneys Peter K. Levitt, Christopher Pohl, and Timothy E. Moran of Ortiz’s Organized Crime and Gang Unit.

BOSTON – Two Boston men were arrested Friday, April 10, 2015, on federal drugs charges for their roles in trafficking large quantities of heroin and cocaine.  In the raid conducted by the DEA on the three locations used by the drug traffickers, federal agents seized six kilograms of heroin, one-and-a-half kilograms of cocaine, a handgun, and a large sum of cash.

Yamal Gonzalez, 33, of Boston, was charged with distribution of heroin, and Jose Polanco, 33, of Boston, was charged with conspiracy to possess heroin with intent to distribute and possession of heroin with intent to distribute.  Gonzalez and Polanco are scheduled for detention hearings on Monday, April 20, 2015 at 2:00 p.m. before U.S. District Court Magistrate Judge Judith G. Dein.

According to the criminal complaint, the DEA conducted a three-month investigation into Gonzalez who sold heroin to a cooperating witness on three occasions.  The investigation revealed that the drug traffickers utilized three locations in their operation: 1431 Commonwealth Avenue, Apartment 9, in Brighton; 15 School Street, Apartment 2, right side, Dorchester; and 457 Massachusetts Avenue, Apartment 2, Roxbury.

On Friday, April 10, 2015, federal agents observed Gonzalez and Polanco exit the School Street apartment in Dorchester together and walk towards their vehicles.  Officers converged on the two men, and Gonzalez was arrested, searched, and found to be in possession of 80 grams of heroin and one-half ounce of cocaine.  Officers confronted Polanco, who initially fled as they approached, but was quickly arrested and found to be in possession of a plastic corn starch container with 300 grams of heroin inside.  Agents executed a federal search warrant at the School Street apartment and seized, among other things, a Smith and Wesson; .40 caliber, semi-automatic handgun containing ammunition; additional rounds of 9mm ammunition; six kilograms of heroin; one and one-half kilograms of cocaine; drug packaging materials; drug “presses” used to package narcotics; cash; and scales.  Agents also executed a federal search warrant at the Commonwealth Avenue apartment in Brighton and seized 50 grams of heroin and 20 grams of cocaine.  At the Massachusetts Avenue apartment in Roxbury, agents seized a large quantity of cash.

The charging statutes provide for a sentence of no greater than 20 years in prison, a lifetime of supervised release, and a fine of $1 million.

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

United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today.  The case was investigated by the DEA; the Massachusetts State Police; the Somerville, Cambridge, Arlington, Ipswich, and Boston Police Departments; and the Essex County Sherriff’s Office.  The case is being prosecuted by Assistant U.S. Attorney Glenn A. Mackinlay of Ortiz’s Organized Crime and Gang Unit.

BOSTON – U.S. Attorney Carmen M. Ortiz announced the latest arrest today in Operation Point Break, a long-term and previously unpublicized investigation into thieves who use stolen identities to file for and obtain fraudulent federal income tax refunds, also known as “stolen identity refund fraud” (SIRF).

In a typical SIRF transaction, the SIRF conspiracy steals the identity of a U.S. citizen and files a fraudulent federal income tax return in his or her name, using false wage and tax-withholding data that, if true, would entitle the person to a sizeable tax refund, often worth thousands of dollars.  The fraudulent refund never goes to the identity theft victim, but rather to the SIRF conspiracy, either in the form of a paper U.S. Treasury check mailed to an address specified on the fraudulent tax return, an address that the SIRF conspiracy controls, or in the form of an electronic deposit onto a prepaid debit card owned by the SIRF conspiracy.  The conspiracy then converts the fraudulent refund into cash.  If the fraudulent refund comes by check, a co-conspirator brings it to another co-conspirator, an employee of a bank or check-cashing company who cashes the check, even though the person presenting the check and the person to whom the check was issued are not the same.  Each co-conspirator — the original identity thief, the tax return filer, the “runner” of the check to the bank or check-cashing company, and the bank or check-cashing company employee — takes a cut of the refund.

Operation Point Break has targeted SIRF conspiracies for two-and-a-half years.

Its most recent success was the arrest earlier today of Junior Albert Lopez, 30, of Dorchester, on a five-count indictment alleging that as part of a SIRF conspiracy, Lopez kept at his Dorchester apartment a USB flash drive that contained more than 700 individuals’ identity information, Employer Identification Numbers, and tax tables for creating false Forms W-2, and spreadsheets used to track the filing of fraudulent returns.  The indictment alleges Lopez’s SIRF conspiracy used these identifiers to file more than $750,000 in fraudulent tax returns with the IRS.  The indictment also charges Lopez with possessing 27 prepaid debit cards found hidden in a wall at his apartment in February 2013, with making fraudulent purchases using two of those debit cards, and with using an identity theft victim’s name, date, and Social Security Number in relation to the scheme.  If convicted, Lopez faces a statutory maximum sentence of 10 years in prison, and a maximum fine of $250,000 on each of the indictment’s first four counts and a mandatory, two-year consecutive sentence on the final count.

Prior successes of Operation Point Break include the conviction of four bank employees who cashed SIRF checks or deposited them into co-conspirator’s bank accounts, and often falsified bank records to cover their tracks.  On April 1, 2015, Cynthia Mansfield, a bank manager, was sentenced to five years of probation, including 11 months of in a residential re-entry center, and full restitution for cashing 138 Treasury tax refund checks worth $993,158.  In December 2014, Mildred Martinez, a bank employee, was sentenced to three years of probation, including six months in home detention, and full restitution for cashing 31 Treasury tax refund checks worth $226,349.  In November 2014, Danielle Pazi, another bank employee, was sentenced to 11 months in prison, two years of supervised release, and full restitution for cashing 162 Treasury checks worth $1,147,216.  Pazi’s charges included taking responsibility for the SIRF checks that she supplied to her coworker, Gregory Guertin, an assistant bank manager, who in December 2014 was sentenced to time-served and supervised release for three years, and full restitution for cashing 20 Treasury checks worth $137,673.  As a result of committing these offenses, all of the bank employees lost their jobs.

Three other defendants have pleaded guilty in connection with the checks given to Pazi and Guertin.  In January 2015, Oscar Demota of Worcester was sentenced to 11 months in prison for supplying Pazi and Guertin more than $400,000 in fraudulently obtained tax refund checks to cash at the bank.  Demota’s co-conspirator in more recent SIRF crimes, Nancy Hernandez, is scheduled to be sentenced in June 2015.  Another co-conspirator, Maties Toribio, pleaded guilty in February 2015 in the Southern District of New York, and is also awaiting sentencing.

In another case prosecuted under Operation Point Break, seven defendants pleaded guilty in the District of Massachusetts in connection with a scheme to steal customer data from a local health insurance company and use the data to file fraudulent tax returns and to steal Social Security benefits.  In August 2014, Emeline Lubin of Boston, pleaded guilty to stealing customer data from a local health insurance company where she was employed.  She transmitted the data to Sniders Jean-Jacques of Florida.  The data was then used to file fraudulent tax returns and to steal Social Security benefits.  The tax refunds and Social Security benefits, which were obtained using the identities of 45 individuals and which totaled more than $100,000, were directly deposited into banks in Worcester.  A team of couriers, including Juanita Hall, Shantelle Smith, Natalia Santana, and Brittany Davis withdrew the money from the accounts.  The couriers were recruited and managed in part by Marvin Lubin, who is Emeline Lubin’s brother.  Jean-Jacques is serving two years in prison; Marvin Lubin is serving one year in prison; Hall, Smith, and Santana were sentenced to terms of supervised release; and Emeline Lubin and Brittany Davis are awaiting sentencing.

Joining Ortiz in the announcement were William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston.

Operation Point Break is being prosecuted by Assistant U.S. Attorneys Scott L. Garland, formerly of Ortiz’s Cybercrime Unit, and currently of Ortiz’s Anti-Terrorism and National Security Unit; Sean Delaney of the District of Maryland; Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit; Seth B. Kosto of Ortiz’s Cybercrime Unit; and Jordi de Llano Campos of Ortiz’s Major Crimes Unit.

The details contained in charging documents are allegations.  Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

BOSTON – Following a four-day trial, a Holyoke man was convicted today of distributing heroin at a strip mall in Holyoke and outside a bank in Springfield. 

Luzander Montoya, 28, was convicted of possession with intent to distribute and distribution of heroin on three separate occasions in 2012.  Montoya, who was indicted in March of 2013 is scheduled to be sentenced by U.S District Court Judge Timothy Hillman on July 10, 2015.

In March 2013, Montoya was arrested along with ten other men after a police raid in Holyoke.  Montoya was caught on video selling heroin three times to a cooperating witness in August and September 2012.  During the third deal, Montoya exchanged 200 bags of heroin for $750 in cash.  He did the deal in his car as his young child sat in a car seat in the back seat.

“This case highlights the opioid epidemic we are facing in Massachusetts and the conviction emphasizes the U.S. Attorney’s Office’s commitment to combating the influx of heroin in western Massachusetts,” said United States Attorney Carmen M. Ortiz.

“The heroin epidemic is a huge problem and this case is another example of the FBI’s ongoing efforts to target the problem and make our neighborhoods safer,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division.

The charging statute provides a sentence of no greater than 20 years in prison, a minimum of three years of supervised release on each count, and a fine of up to $1 million.  Actual sentences for federal crimes are typically less than 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 and SAC Lisi made the announcement today.  The case was prosecuted by Assistant U.S. Attorneys Deepika Bains Shukla and Kevin O’Regan of Ortiz’s Springfield Branch Office.

BOSTON – The former Chief Executive Officer and Vice President of Sales of Acclarent, Inc., a medical device company, were charged in an indictment unsealed today with conspiracy, securities fraud, wire fraud and violations of the Food, Drug and Cosmetic Act.

William Facteau, 45, of Atherton, California, and Patrick Fabian, 48, of Lake Elmo, Minnesota, were indicted on one count of conspiracy, three counts of securities fraud, four counts of wire fraud and 10 counts of introducing adulterated or misbranded medical devices into interstate commerce. 

The indictment alleges that Facteau and Fabian engaged in a scheme to fraudulently drive up Acclarent revenues and stock valuation by illegally marketing a medical device known as the Relieva Stratus Microflow Spacer (“Stratus”) for uses not cleared or approved by the United States Food and Drug Administration (“FDA”).  Despite the fact that the company had told the FDA that the Stratus was a medical device intended to maintain an opening to a patient’s sinus, Facteau and Fabian launched the product intending it to be used as a steroid delivery device.  The indictment alleges, however, that the FDA had specifically refused Acclarent’s request to clear the Stratus for marketing as a drug delivery device without further submissions to support that use.

Facteau and Fabian are alleged to have sought to quickly develop and market products to create a projected revenue stream that would make Acclarent an attractive target for either an initial public offering (“IPO”) or acquisition.  The former health care executives allegedly concealed Acclarent’s illegal promotion and distribution of the Stratus as a steroid delivery device from potential purchasers of the company, including Ethicon, Inc., a subsidiary of Johnson & Johnson, (together, “Ethicon”).  In early 2010, Ethicon purchased Acclarent for approximately $785 million.  Facteau and Fabian received approximately $30 million and $4 million, respectively, for stock options and other compensation in connection with the merger of Acclarent into Ethicon.

The charging statutes provide for a maximum prison sentence of up to 20 years on each count of wire fraud and securities fraud, five years for the conspiracy count, and three years for each count for violations of the Food, Drug and Cosmetic Act, followed by a term of supervised release and a $250,000 fine or twice the gross loss or gain, 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 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.

The case is being prosecuted by Assistant U.S. Attorneys Sara Miron Bloom and Patrick Callahan of the District of Massachusetts with the assistance of Trial Attorney Ross Goldstein of the Civil Division’s Consumer Protection Branch in Washington, DC and Beth Weinman in the FDA’s Office of General Counsel.  The case was investigated by the Federal Bureau of Investigation’s Boston Field Division; the FDA’s Office of Criminal Investigations; U.S. Department of Health and Human Services’ Office of the Inspector General; Department of Defense Office of Criminal Investigation; and the Department of Veterans Affairs’ Office of Inspector General.

BOSTON – The former Chief Executive Officer and Vice President of Sales of Acclarent, Inc., a medical device company, were charged in an indictment unsealed today with conspiracy, securities fraud, wire fraud and violations of the Food, Drug and Cosmetic Act.

William Facteau, 45, of Atherton, California, and Patrick Fabian, 48, of Lake Elmo, Minnesota, were indicted on one count of conspiracy, three counts of securities fraud, four counts of wire fraud and 10 counts of introducing adulterated or misbranded medical devices into interstate commerce. 

The indictment alleges that Facteau and Fabian engaged in a scheme to fraudulently drive up Acclarent revenues and stock valuation by illegally marketing a medical device known as the Relieva Stratus Microflow Spacer (“Stratus”) for uses not cleared or approved by the United States Food and Drug Administration (“FDA”).  Despite the fact that the company had told the FDA that the Stratus was a medical device intended to maintain an opening to a patient’s sinus, Facteau and Fabian launched the product intending it to be used as a steroid delivery device.  The indictment alleges, however, that the FDA had specifically refused Acclarent’s request to clear the Stratus for marketing as a drug delivery device without further submissions to support that use.

Facteau and Fabian are alleged to have sought to quickly develop and market products to create a projected revenue stream that would make Acclarent an attractive target for either an initial public offering (“IPO”) or acquisition.  The former health care executives allegedly concealed Acclarent’s illegal promotion and distribution of the Stratus as a steroid delivery device from potential purchasers of the company, including Ethicon, Inc., a subsidiary of Johnson & Johnson, (together, “Ethicon”).  In early 2010, Ethicon purchased Acclarent for approximately $785 million.  Facteau and Fabian received approximately $30 million and

$4 million, respectively, for stock options and other compensation in connection with the merger of Acclarent into Ethicon.

The charging statutes provide for a maximum prison sentence of up to 20 years on each count of wire fraud and securities fraud, five years for the conspiracy count, and three years for each count for violations of the Food, Drug and Cosmetic Act, followed by a term of supervised release and a $250,000 fine or twice the gross loss or gain, 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 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.    

The case is being prosecuted by Assistant U.S. Attorneys Sara Miron Bloom and Patrick Callahan of the District of Massachusetts with the assistance of Trial Attorney Ross Goldstein of the Civil Division’s Consumer Protection Branch in Washington, DC and Beth Weinman in the FDA’s Office of General Counsel.  The case was investigated by the Federal Bureau of Investigation’s Boston Field Division; the FDA’s Office of Criminal Investigations; U.S. Department of Health and Human Services’ Office of the Inspector General; Department of Defense Office of Criminal Investigation; and the Department of Veterans Affairs’ Office of Inspector General.

BOSTON – A Boston woman was sentenced today for taking more than $220,000 in Social Security payments to which she was not entitled and failing to pay taxes on that income.

Frances Kenney Moseley, 66, was sentenced by U.S. District Judge Indira Talwani to three years of probation, including six months of home confinement, 1500 hours of community service, a fine of $5,000, and restitution of $470,188.  In September 2014, Moseley pleaded guilty to theft of public money and tax evasion.

Following the death of Moseley’s father in 2003, and, unaware that he was deceased, the Social Security Administration continued to deposit his retirement benefits into his bank account.  Moseley, who was not entitled to the benefits, regularly withdrew the deposited Social Security funds after her father’s death.  Between 2003 and 2010, Moseley withdrew approximately $222,172 in Social Security funds paid to her deceased father.  Moseley also failed to report the money as income on her federal income taxes.

During the same period of time, TIAA-CREF, a private investment/annuity company, unaware that Moseley’s father had died, continued to deposit annuity payments into the father’s account.  Between 2003 and 2010, Moseley regularly withdrew the annuity payments, totaling approximately $248,016.  Under the terms of the annuity, the payments were to have ceased upon the death of Moseley’s father.

This case is brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the Social Security Administration to investigate and prosecute the posthumous fraud of Social Security benefits.  In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died.

Since October 2013, the U.S. Attorney’s Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money.

In February 2015, Charles Gerbutavich, of Manchester, was sentenced to one year of probation, including three months of home confinement, and was ordered to pay a $3,000 fine and $161,587 in restitution to the Social Security Administration, which he paid in full in February.  Gerbutavich pleaded guilty in connection with taking his deceased father’s Social Security benefits, which were directly deposited into a joint bank account after his death in 1993.

In January 2015, Graeme Griffith, of Andover, pleaded guilty to taking his deceased father’s Social Security benefits totaling $149,285, which were directly deposited into a joint bank account after the father’s death in 2003.  Griffith is scheduled to be sentenced on April 16, 2015.

In October 2014, Mary Murphy, of Dorchester, was sentenced to 18 months of home confinement and 10 hours per week of community service, and ordered to pay a fine of $40,000 and $331,630 in restitution, which she paid in full in October.  Murphy pleaded guilty in connection with taking her deceased mother’s Social Security and Civil Service retirement benefits, which were directly deposited into a joint bank account after her death in 1977.

Also in October 2014, Richard Oldham, of Old Orchard Beach, Maine, was sentenced to four months in prison, six months of home confinement, and ordered to pay $195,862 in restitution for endorsing Social Security checks in his deceased mother’s name following her death in 1993. 

In August 2014, George Bergstrom, of Shrewsbury, was sentenced to one year of probation and ordered to pay $57,948 in restitution – which he paid in full in August – for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 2009.

In October 2013, John Flaherty, of Newburyport, was sentenced to 10 months in prison and was ordered to pay $168,830 in restitution for taking his deceased mother’s Social Security benefits, which were directly deposited into a joint bank account after her death in 1993.

United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service, made the announcement today.  The Moseley case is being prosecuted by Assistant U.S. Attorney David G. Tobin and Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.

BOSTON – The owner and operator of a prep school admissions business was convicted yesterday in U.S. District Court in Boston in connection with his role in embezzling funds.

Mark J. Zimny, 43, was convicted by a federal jury on five counts of wire fraud, five counts of unlawful money laundering, two counts of filing false federal tax returns and one count of bank fraud.  The jury acquitted Zimny on an additional count of bank fraud.  U.S. District Court Judge Rya W. Zobel scheduled sentencing for July 9, 2015.

Zimny owned and operated a business called IvyAdmit Consulting Associates that claimed to assist students in obtaining admission to elite American prep schools, colleges and universities.  In 2008, Zimny defrauded a couple from Hong Kong of more than $650,000 by promising that if they provided him large funds to give to prep schools in New England for "development contributions," he could influence admissions decisions to the schools on behalf of the couple’s two children.  Rather than delivering the funds to the schools as he promised, however, Zimny embezzled the funds for his own purposes.

Zimny was found guilty of tax violations for underreporting the gross receipts of IvyAdmit for tax years 2008 and 2009 in personal tax returns filed with the IRS.

Furthermore, Zimny defrauded Mt. Washington Bank (now part of East Boston Savings Bank) by providing the bank with false information, including fictitious tax returns that over reported his receipts from IvyAdmit, to support his application for a mortgage loan.

The charges of wire fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release and a $250,000 fine on each count; the charges of money laundering provide for a sentence of no greater than 10 years in prison, two years of supervised release and a $250,000 fine on each count; the charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release and a $1 million fine; the charges of filing false tax returns provides for a sentence of no greater than three years in prison, one year of supervised release and a $250,000 fine on each count.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorneys Victor A. Wild of Ortiz’s Economic Crimes Unit and Giselle J. Joffre of Ortiz’s Civil Division.

BOSTON – Zack Sawyer, 30, was charged in a criminal complaint in U.S. District Court in Springfield with one count of sexual exploitation of children.

According to the complaint, Sawyer used online interactive video games including X-Box Live and MineCraft to communicate with at least eight boys aged 10 to 13 years old in Massachusetts, Illinois, and Virginia.

Specifically, in March 2010, Sawyer allegedly used X-Box Live to contact 12-year-old boys from Roselle, Ill.  Sawyer asked one boy to send him nude photographs and the addresses and phone numbers of the boy’s friend, and engaged the other boy in sexually explicit chats.  When the second boy blocked Sawyer from the X-Box Live system, Sawyer responded with a death threat.

In May 2010, Sawyer used X-Box Live to allegedly contact two 13-year-old boys in Hampshire County, Mass.  Sawyer asked one boy to send him nude photographs, and when the boy refused, Sawyer threatened to rape him and kill him.  Sawyer asked the second boy to send him naked pictures and when the boy refused, Sawyer also threatened to rape him, claiming that he had a drug that would paralyze people.

In August 2010, Sawyer allegedly used X-Box Live to contact a 12-year-old boy in Rockton, Ill.  Sawyer asked the boy to send him naked pictures and to provide his address.  When the boy refused, Sawyer told him, “I don’t wanna have to do anything bad.”  In January 2011, Sawyer used X-Box Live to contact two 13-year-old boys from Lockport, Ill.  Sawyer engaged both boys in sexually explicit conversations and threatened to kill them and their families if they told anyone about his contact with them.

In early August 2014, after Sawyer had been notified that he was the subject of a Massachusetts arrest warrant based upon his solicitation of the two Hampshire County boys, Sawyer used MineCraft to contact a 10 year-old boy in Loudon County, Va.  Sawyer sent the boy a picture of his penis, and asked the boy to send him a similar photograph.  On two occasions, the boy used Skype to show Sawyer his genitals.  In one online chat, Sawyer admitted to the boy that he was a “truck driver on the run from the cops.”  Sawyer was ultimately arrested on Dec. 23, 2014.

The charging statute provides for a mandatory minimum sentence of 15 years and a maximum of 30 years in prison, a mandatory minimum of five years and a maximum of a lifetime of supervised release, a fine of $250,000 and restitution.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.

BOSTON – After a two-week trial, a federal jury in U.S. District Court in Boston convicted a violent New Bedford drug dealer of heroin trafficking and robbery.

Francisco Monteiro, a/k/a “Cisco,” 35, of Bourne, Mass., was found guilty of conspiracy to distribute 100 grams or more of heroin, distribution of heroin, possession with intent to distribute heroin, and interference with commerce by threat or violence.  U.S. District Court Judge Denise J. Casper scheduled sentencing for July 6, 2015.

Monteiro, a long-time, large-scale South Coast drug trafficker, acquired drugs through violent drug robberies.  At trial, federal agents described how, in February 2013, they recorded Monteiro offering to provide large quantities of heroin to a cooperating witness and then recorded Monteiro as he and two associates sold nearly 100 grams of heroin to the cooperating witness.  When agents attempted to set up a second heroin purchase, Monteiro robbed the cooperating witness of the buy money.  Monteiro was arrested three days later, at which time agents seized heroin, much of the stolen “buy money,” other drug trafficking materials, handcuffs, and brass knuckles.

The jury also heard testimony concerning a 2011 robbery committed by Monteiro and several other men.  Monteiro and others lured Stanley and Joshua Gonsalves, two Cape Cod OxyContin dealers, to a meeting where the Gonsalves Brothers believed they were purchasing 15,000 OxyContin pills. Instead, Monteiro and his crew robbed the Gonsalves brothers of the $225,000 they brought to purchase the pills.

The charge of conspiracy to distribute over 100 grams of heroin provides for a sentence of no greater than life in prison, and a mandatory minimum term of 10 years due to a prior drug trafficking conviction.  The charges of distribution of heroin and possession with intent to distribute heroin provide a sentence of no greater than 30 years in prison.  The charge of interference with commerce by threat or violence provides for a sentence of no greater than 20 years.  The charges also provide for a mandatory minimum of eight years and up to a lifetime of supervised release and a fine of $8 million.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Division; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today.  Significant assistance was also provided by the Barnstable and Bristol County Sheriffs’ Offices and the Barnstable, Bourne, Fairhaven, Fall River, New Bedford, and Wareham Police Departments.  The case was prosecuted by Assistant U.S. Attorneys Christopher Pohl and Timothy E. Moran of Ortiz’s Organized Crime and Gang Unit.

BOSTON – The Justice Department has filed suit on Friday, April 3, 2015, in the U.S. District Court for the District of Massachusetts against Michael P. Ferry Inc. and its owner, Michael P. Ferry (Ferry), to block them from violating the Federal Food, Drug and Cosmetic Act (FDCA) in connection with their alleged unlawful use of new animal drugs in cows slaughtered for food.  The Justice Department filed the suit on behalf of the U.S. Food and Drug Administration (FDA).

The defendants have agreed to settle the litigation and be bound by a consent decree of permanent injunction that enjoins them from committing violations of the FDCA.  The proposed consent decree has been filed with the court and is awaiting judicial approval.

“Failing to maintain appropriate controls in food-producing animals bound for slaughter jeopardizes the public health,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.  “The resolution of this matter ensures that, should it choose to re-enter business, this farm will have the necessary procedures in place to ensure that it delivers safe food to consumers.”

The defendants are primarily in the dairy business, but also sell cows for slaughter as food.  Government inspections as recently as June 2014 revealed that Ferry sold animals for slaughter containing excessive and illegal drug residues in their edible tissues.  The inspections also revealed that the defendants failed to maintain complete records concerning the medication of their animals.  The FDA issued a warning letter to the farm concerning its violations in 2011 and also held a regulatory meeting with the farm in 2013 to discuss unlawful residues found in its cattle.  The complaint states that consumers of edible animal tissues who are susceptible to antibiotics may experience severe allergic reactions as a result of ingesting food containing out-of-tolerance antibiotic levels.  Furthermore, food containing above-tolerance antibiotic levels contributes to the development of antibiotic-resistant strains of bacteria in those who eat or handle food containing residues of such drugs.

Under the consent decree, the defendants have agreed to shutter their business selling animals for slaughter.  To resume selling cows for slaughter, the consent decree requires the defendants to take certain actions and institute measures that must be confirmed by the FDA as compliant.

BOSTON – A former executive of the Chelsea Housing Authority (CHA) and a former public housing inspector were convicted on Wednesday, April 1, 2015, for their roles in rigging the inspection process of federally funded housing units.

James Fitzpatrick, 63, of Acton, Mass., and Bernard Morosco, 50, of Utica, NY, were convicted of conspiring to defraud the United States and the U.S. Department of Housing and Urban Development (HUD) by impairing, impeding, and defeating the proper operation of HUD’s physical condition assessment.

Pursuant to federal regulations, to determine whether a public housing authority is meeting the standard for its residents of conditions that are “decent, safe, sanitary, and in good repair,” HUD’s Real Estate Assessment Center (REAC) is required to “provide for an independent physical inspection of a public housing authority’s property or properties that includes, at a minimum, a statistically valid sample of the units in the CHA’s public housing portfolio to determine the extent of compliance with the standard.”  REAC inspections are conducted by independent contractors who have received training from REAC on the inspection protocol and applicable regulations, and have been certified by HUD.  Once certified, an inspector is given an inspector number, and with a password, can access the secure REAC server, which contains data on all public housing authorities and also later enable the inspector to generate a random sample of units to inspect on the scheduled date of the inspection.

Before the REAC inspections of the CHA in 2007, 2009, and 2011, Morosco gave Fitzpatrick, the Assistant Director of the CHA, an advance list that revealed which units at the CHA would be inspected.  During those years, Morosco, who was a REAC-certified inspector, worked for the CHA as a consultant, advising the CHA about how to get better scores on its REAC inspections.

One or two months before each REAC inspection, using information provided by Fitzpatrick, Morosco accessed HUD’s secure database and downloaded information to which he was not entitled.  That information enabled him to use his REAC software to generate, in advance, the random sample that would later be generated by the assigned REAC inspector.  Morosco then gave the samples to Fitzpatrick who, in turn, provided it to the CHA’s Executive Director, Michael McLaughlin.

McLaughlin divided CHA employees into pairs, calling each pair a SWAT team, and sent them to inspect the units identified by Morosco.  For the month before each inspection, the SWAT teams visited several apartments a day, inspecting and re-inspecting them as maintenance crews visited the units to make repairs, fumigate, and exterminate.  When the REAC inspectors conducted the inspections, the units that were selected were the same as the ones provided in advance by Morosco.

United States Attorney Carmen M. Ortiz and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorneys S. Theodore Merritt of Ortiz’s Public Corruption and Special Prosecutions Unit and Brian Pérez-Daple of Ortiz’s Economic Crimes Unit.

BOSTON – Carmen M. Ortiz, U.S. Attorney for the District of Massachusetts and Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division, announced today that the Department of Justice has entered into a settlement agreement with edX Inc. to remedy alleged violations of the Americans with Disabilities Act (ADA).  The agreement resolves the Department’s allegations that edX’s website, www.edx.org, and its platform for providing massive open online courses (“MOOCs”), were not fully accessible to individuals with disabilities, including individuals who are blind or have low vision, individuals who are deaf or hard of hearing, and individuals who have physical disabilities affecting manual dexterity, in violation of Title III of the ADA.  Among other things, the settlement requires edX to provide accurate captioning for the deaf, oral navigation signals for the blind, and programing changes so those with dexterity disabilities can navigate content without struggling with a hand-operated mouse.

“Critical portions of education are moving online, in tandem with the rest of our social experience.  This new, educational online world readily can, and should be, built from the outset in a way that does not discriminate against those with disabilities,” said U.S. Attorney Carmen Ortiz.  “Access to high quality education is one of the essential pillars of our democracy and to the well-being of our communities.  This agreement ensures that those with disabilities will not be left behind.”

“MOOCs have the potential to increase access to high-quality education for people facing income, distance, and other barriers, but only if they are truly open to everyone.  This landmark agreement is far-reaching in ensuring that individuals with disabilities will have an equal opportunity to independently and conveniently access quality higher education online” said Acting Assistant Attorney General Gupta.  “edX is to be commended for working with the Justice Department to take such steps.”

edX was created by the Massachusetts Institute of Technology and Harvard University in 2012 as a nonprofit platform for select universities to offer MOOCs to the world.  The consortium’s 36 charter members include University of California at Berkeley, Georgetown, Dartmouth, Caltech, the Sorbonne, and Peking University, in addition to Harvard and MIT.  Today, edX has approximately 60 university and institutional members providing over 450 courses to over 3,000,000 learners.  The courses are offered largely for free in subject matters as varied as business, computer sciences, hard sciences, food and nutrition, and social sciences.

Today’s agreement requires edX to make significant modifications to its website, platform, and mobile applications to conform to the Web Content Accessibility Guidelines (WCAG) 2.0 AA, which are industry guidelines for making web content accessible.  Under the agreement, edX will also provide guidance and authoring tools to the entities that create and post courses on www.edx.org, many of which are independently covered by the ADA, to assist them in creating accessible course content.  Because edX makes its software code freely available, any modifications to that code under this agreement will enable other MOOC providers to enhance the accessibility of their online offerings.

The four-year agreement requires edX to:

1. make the edX website, its mobile applications, and learning management system software, through which online courses are offered, fully accessible within 18 months;
2. ensure that its content management system, called Studio, which edX makes available to entities creating online courses, permits posting of accessible content;
3. make its content management system fully accessible and equipped to create courses that are accessible to learners with disabilities within an additional 18 months;
4. provide guidance to course creators at its member universities and other institutions on best practices for making online courses fully accessible;
5. appoint a web accessibility coordinator;
6. adopt a web accessibility policy;
7. solicit feedback from learners on the accessibility of the courses;
8. conduct web accessibility training for employees responsible for the website, platform, and mobile applications; and
9. retain a consultant to evaluate conformance of the website, platform, and mobile applications.

Title III of the ADA prohibits discrimination on the basis of disability by public accommodations in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, and accommodations of places of public accommodations.  Title III of the ADA also requires public accommodations to take necessary steps to ensure individuals with disabilities are not excluded, denied services, segregated, or otherwise treated differently because of the absence of auxiliary aids and services, such as accurate captioning of audible materials and labeling of visual materials.  The Justice Department has long considered Title III and its implementing regulation to apply to the online services and communications of public accommodations.

This case was handled by Assistant U.S. Attorney Stephen P. Heymann of Ortiz’s Civil Rights Enforcement Team, and Trial Attorneys Eugenia Esch, William F. Lynch, and Dov Lutzker of the Department of Justice’s Disability Rights Section of the Civil Rights Division.

To find out more about federal disability rights laws, call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov.  ADA complaints, including those involving the inaccessibility of www.edx.org, may be filed by email to [email protected].

BOSTON – A previously convicted felon was sentenced today in connection with the sale of multiple firearms, including handguns with obliterated serial numbers.

Shayne Sullivan, 25, formerly of Lowell, was sentenced by U.S. District Court Judge Richard G. Stearns to four years in prison and three years of supervised release.  In January 2015, Sullivan pleaded guilty to two counts of being a felon in possession of firearms and ammunition.

On March 5, 2014, Sullivan sold a .357 caliber revolver with an obliterated serial number as well as ammunition to an undercover agent for $600.  Eleven days later, Sullivan arranged for another defendant, Eric Texeira, to sell several other firearms, including two revolvers with obliterated serial numbers and a rifle, to another criminal for $1,300.  Sullivan’s prior convictions include, among other offenses, armed robbery with a gun and assault and battery on a disabled person over the age of 65.

In February 2015, Texeira was sentenced to 42 months in prison after he pleaded guilty to being a felon in possession of firearms and ammunition.

United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Lowell Police Superintendent William Taylor, made the announcement.  The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.

BOSTON – A Worcester tax preparer was found guilty today by a federal jury of filing false tax returns with the IRS, following a four-day trial in U.S. District Court in Worcester.

Nydia Elicier, 56, owner of Cox Elicier Tax, was found guilty by a federal jury of four counts of aiding or assisting in the preparation of false tax returns.  U.S. District Court Judge Timothy Hillman scheduled sentencing for July 13, 2015.  .

In 2008, Elicier, who also served as a pastor in a Worcester congregation, inflated client refunds by falsifying deductions in filings with the IRS.  Specifically, Elicier generated illegal refunds for clients by claiming deductions typically reserved for educators, false gifts to charity, overinflated medical expenses, and fraudulent unreimbursed employee expenses.

The charging statute provides a sentence of no greater than three years in prison, one year of supervised release, and a $100,000 fine.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz 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 Jordi de Llano of Ortiz’s Major Crimes Unit.

BOSTON – A Hyannis man was charged today in federal court with purchasing a firearm and silencer on a “Darknet Market” website, which provides anonymity to users to buy and sell illegal goods.

Justin Moreira, 21, was arrested today and charged in a criminal complaint with one count of being a felon in possession of the firearm and silencer.  According to court documents, Moreira has a previous felony conviction in Barnstable County in 2013 for possession of a controlled substance with intent to distribute.

As alleged in the criminal complaint, a Darknet Market website is an online market that operates outside the parameters of the traditional Internet, allowing individuals anonymity to buy and sell illegal items, such as firearms and drugs.  Such transactions are often conducted for bitcoins.  The complaint alleges that beginning in January 2015, Moreira engaged a federal undercover agent in a series of online messages during which Moreira inquired about the potential purchase of several different firearms.  Ultimately, Moreira allegedly ordered a Walther PPK/S .380 caliber pistol and silencer from the agent for which he paid the equivalent of $2,500 in Bitcoins.  Moreira instructed the agent to ship the package to a Post Office box in Hyannis.  Federal agents monitoring the Post office box immediately arrested Moreira after he retrieved the package this morning.

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

United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Barnstable Police Chief Paul MacDonald, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Mary B. Murrane of Ortiz’s Major Crimes Unit.

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

BOSTON – The founders and principals of Inofin, Inc, a shuttered motor vehicle finance company based in Rockland, Mass., were charged in U.S. District Court in Boston today with fraud relating to their solicitation of investments that resulted in losses of over $11 million to investors. 

Michael J. Cuomo, 52, of Plymouth, and Kevin J. Mann Sr., 64, of Marshfield, were indicted on one count of conspiracy to commit mail and wire fraud, three counts of mail fraud, and one count of wire fraud.  Cuomo and Mann were arrested on Feb. 1, 2015.

The indictment alleges that, from 1994 through February 2011, Cuomo and Mann owned and operated Inofin, which funded loans to purchasers of used cars who could not qualify for traditional financing.  In order to fund Inofin’s operations, Cuomo and Mann raised capital by securing investments from dozens of individuals.  In an effort to gain access to a source of investor monies that they would otherwise not have had access to, Cuomo and Mann falsely represented to investors that the investors could effect rollovers of monies held in retirement plans to Inofin, and that Inofin was an authorized custodian of retirement monies.  In fact, at no point was Inofin an authorized custodian, or trustee, of retirement funds.  As a result of these misrepresentations by Cuomo and Mann, Inofin investors transferred more than $11 million in retirement funds to Inofin, practically all of which was lost after Inofin entered into involuntary bankruptcy proceedings.

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

United States Attorney Carmen M. Ortiz; 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 U.S. Attorney’s Office also acknowledges the assistance it received from the U.S. Securities and Exchange Commission, Boston Regional Office.  The case is being prosecuted by Assistant U.S. Attorney Vassili Thomadakis of Ortiz’s Economic Crimes 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.

BOSTON – A Brookline man and a Connecticut fund manager were arrested and charged today in U.S. District Court in Boston in connection with their role in an insider trading scheme that netted more than $1 million in illegal profits.

Amit Kanodia, 47, of Brookline, and Iftikar Ahmed, 44, of Greenwich, Conn., were charged with one count of securities fraud.  Both were arrested this morning and are scheduled to appear before U.S. District Magistrate Judge Marianne B. Bowler this afternoon.

As alleged in the criminal complaint, prior to April 2013, Kanodia secretly tipped off his friend Ahmed, an executive at a Connecticut-based fund, and another friend, about the contemplated acquisition of Cooper Tire & Rubber Company by India-based Apollo Tyre.  Kanodia learned about the possible acquisition from his wife who was the General Counsel of Apollo at the time.  In the months leading up to the public announcement of the acquisition, both Ahmed and the associate, purchased shares and options in Cooper Tire which trades on the New York Stock Exchange.  On the day of the announcement, Cooper Tire’s share price increased 41% and Ahmed and his associate began selling their interests in the company for a combined profit of more than $ 1 million.  It is alleged that both Ahmed and his associate paid Kanodia a portion of their illegal profits.

“The defendants here are alleged to have improperly obtained confidential information from Apollo Tyre and used that information to unlawfully beat the markets and line their own pockets,” said United States Attorney Carmen M. Ortiz.  “Trading on insider information is fraud, plain and simple.”

“The integrity of the capital market is seriously compromised when people trade inside information for personal gain,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation in Boston.  “The FBI will continue to go after those who violate the securities laws to make sure no one has an unfair advantage.”

The charging statute provides for a sentence of no greater than 20 years in prison, five years of supervised release, a fine of $5 million.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Ortiz and SAC Lisi made the announcement today.  The U.S. Attorney’s Office received valuable assistance from the Securities & Exchange Commission, which today filed a separate civil action in federal court (http://www.sec.gov/news/pressrelease/2015-56.html#.VR1whrqgzal).  The case is being prosecuted by Assistant U.S. Attorney Sarah E. Walters, Chief of Ortiz’s Economic Crimes Unit.

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

BOSTON – A Wakefield veteran was sentenced yesterday for fraudulently receiving $174,000 in benefits paid to him based upon falsified Vietnam War service records.

Albert L. Seely, 67, was sentenced by U.S. District Court Judge Rya W. Zobel to six months in prison, three years of supervised release, and ordered to pay $174,000 in restitution to the Veteran’s Administration.  Seely pleaded guilty in December 2014.

Seely, a former U.S. Marine, was deployed to Vietnam and served there from 1966 to 1967.  In December 1970, Seely filed his discharge papers with the Veterans Benefit Administration (VBA) and misrepresented the dates and places of his deployment in Vietnam.  He also falsely listed numerous commendations, including two Purple Hearts, a Vietnam Cross of Gallantry, a Bronze Star, and a Silver Star.  In March 1999, Seely applied for and received VBA disability payments based upon his false claims of combat and valor.  He ultimately fraudulently obtained $174,656 in government benefits.  In February 2014, the VBA terminated his benefits after his fraud was revealed.

United States Attorney Carmen M. Ortiz and Jeffrey G. Hughes, Special Agent in Charge of the 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 Kenneth G. Shine of Ortiz’s Major Crime Unit.

BOSTON – Jose Vargas, 29, of Springfield, pleaded guilty yesterday in U.S. District Court in Springfield to conspiracy to possess with intent to distribute and to distribute heroin, and possession with intent to distribute and distribution of heroin.  U.S. District Judge Mark G. Mastroianni scheduled sentencing for July 2, 2015.

At his change of plea hearing, Vargas admitted that on Oct. 6, 2013, he sold heroin to an undercover federal agent in Springfield.  He also admitted that, during the transaction, he handed the heroin to the undercover agent just before his co-conspirator accepted $400 in cash in return for the drugs.  The drug purchase was captured on video.

The charge of conspiracy to possess with intent to distribute heroin provides a sentence of no greater than 20 years in prison, 3-5 years supervised release and a fine of $1 million.  The charge of distribution of heroin provides a sentence of no greater than 20 years in prison, 3-5 years 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 & Explosives, Boston Field Division, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.

BOSTON – A Raynham man was sentenced today for engaging in a fraud scheme involving the creation of phony invoices for annual dues that purported to come from legitimate business and trade associations.

Darren Stokes, 43, of Raynham, Mass., was sentenced today by U.S. District Court Judge Richard G. Stearns to four years in prison, three years of supervised release, and was ordered to pay $1,170 in restitution.  In November 2014, Stokes pleaded guilty to eight counts of wire fraud and seven counts of mail fraud.

From 2008 to 2012, Stokes caused tens of thousands of fraudulent invoices to be faxed to businesses throughout the United States.  The invoices purported to be from business or trade associations and sought payment for annual membership dues or inclusion in a business directory.  In fact, Stokes had no authorization from any business or trade association to collect such payments.  Stokes caused invoices to be sent to members of associations, including the American Dental Association, the National Association of Manufacturers, the Automotive Parts Remanufacturers Association, the American Trucking Association, the Associated General Contractors of America, and the American Hospital Association.  Hundreds of businesses were deceived by Stokes’ scheme and mailed checks to addresses he controlled.  Stokes cashed them at a check-cashing business, and pocketed the proceeds for himself.

United States Attorney Carmen M. Ortiz and Shelly Binkowski, Special Agent in Charge of the U.S. Postal Inspection Service, made the announcement today.  The case was prosecuted by Assistant U.S. Attorneys Mark J. Balthazard of Ortiz’s Economic Crimes Unit, and Doreen M. Rachal of Ortiz’s Asset Forfeiture Unit.

BOSTON – A Massachusetts cardiologist and his practice entered into an agreement with the United States yesterday to resolve allegations that they improperly billed Medicare for medically unnecessary stress tests.

Primary Care Specialists, Inc., and Terrence C. Hack, M.D. agreed to pay $24,000 to resolve the government’s claim that Dr. Hack and Primary Care Specialists improperly billed Medicare for medically unnecessary myocardial perfusion studies, also known as nuclear stress tests, in violation of the False Claims Act.  Performing these unnecessary stress tests results in patients’ needless exposure to radiation as well as wasting Medicare dollars.  Dr. Hack is a cardiologist licensed in Massachusetts, and Primary Care Specialists, Inc. is his Ayer, Mass. practice.  In agreeing to settle this claim, Dr. Hack has not admitted liability.

“We protect the integrity of Medicare by scrutinizing billing practices that burden the Medicare fund, such as when reimbursement is sought for medically unnecessary tests,” said United States Attorney Carmen M. Ortiz.  “We take every opportunity to investigate, eliminate, and deter waste and fraud in this vital government program.”

This matter was investigated by the Department of Health and Human Services, Office of the Inspector General.  It was handled by Assistant U.S. Attorneys Sonya A. Rao and Rosemary Connolly, Chief of Ortiz’s Civil Division.

BOSTON – A Lawrence man was arraigned yesterday on one count of conspiring to import controlled substances from China, including Methylone and a-PvP.

In August 2013, Stanislav Nestorov, 24, allegedly conspired with others to import controlled substances from China, including Methylone and a-PvP.  Methylone, also known as “Molly,” and a-PvP, are synthetic drugs, meaning they are created in a laboratory.  A-PvP is a controlled substance analog that is substantially similar in make-up and effect on the central nervous system to other Schedule I drugs and, like Molly, is highly dangerous to those who consume it.

The charging statute provides a sentence of no greater than 20 years in prison, 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 Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement.  The case is being handled by Assistant U.S. Attorney Susan Winkler of Ortiz’s Drug Task Force 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.