District of Massachusetts

BOSTON – A Maine skilled nursing facility, Ross Manor, entered into an agreement with the United States to pay $1.2 million to resolve allegations concerning inflated Medicare claims for rehabilitation therapy.

Ross Manor, which is located in Bangor, Maine, and owned by First Atlantic Corporation and Rosscare Nursing Homes, Inc., 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 Ross Manor caused the submission of claims to Medicare that sought inflated amounts of reimbursement based on the provision of unreasonable or unnecessary rehabilitation therapy.

The United States alleges that, prior to Oct. 1, 2011, Ross Manor 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 Ross Manor to bill for its Medicare patients’ care at the highest reimbursement level, even though RehabCare was providing less therapy to those same patients outside the assessment reference periods, when Ross Manor was not required to report to Medicare the amount of therapy its Medicare patients were receiving.

“This settlement is the latest in a series of resolutions involving Medicare billing for rehabilitation therapy at skilled nursing facilities,” said United States Attorney Carmen M. Ortiz.  “We will continue our work to ensure that the provision of care in skilled nursing facilities is based on patients’ clinical needs and not tied to the financial targets of the companies providing their care.”

This settlement further resolves allegations that, even after Oct. 1, 2011, Ross Manor 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 therapy minutes 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; and (3) providing significantly higher amounts of therapy on the final day of a period that determines reimbursement in order to reach the next highest threshold level.

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 – A Pittsburgh woman was sentenced on Friday, March 27, 2015 for orchestrating a multi-million dollar Ponzi scheme that harmed scores of victims.

Patricia S. Miller, 68, was sentenced by U.S. District Court Judge Leo T. Sorokin to six years in prison, three years of supervised release, restitution and forfeiture.  In December 2014, Miller pleaded guilty to five counts of wire fraud for orchestrating a large Ponzi scheme that harmed over 80 victims.

Miller used her position as a trusted financial adviser, as well as her association with a Massachusetts-based broker dealer, to obtain money from clients for purported investments that she never made on behalf of clients.  Specifically, Miller promised high returns if clients put their money into “investment clubs” called, among other things, “KS Investments” and “Buckharbor.”  Miller represented, among other things, that funds put into her “investment clubs” would be placed in fixed-income notes and other investments.  Miller was able to obtain over $4.1 million from more than 80 clients for these purported investment clubs.  Instead of investing the money as promised, she misappropriated client funds for her own use, which robbed many victims of their life savings.

“The personal nature and scope of Ms. Miller’s fraud, as well as the calculated effort she took while carrying it out, makes this one of the more serious white collar cases,” said United States Attorney Carmen M. Ortiz.  “The crime has had tangible and long-lasting effects on the lives of the victims who now face the frightening reality of financial insecurity.”

“Ms. Miller engineered an elaborate scam and stole millions of dollars from dozens of unsuspecting victims who trusted her,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division.  “The FBI will continue to go after people like her who shamelessly swindle others out of their hard-earned money for the benefit of themselves.”

U.S. Attorney Ortiz and SAC Lisi made the announcement today.  U.S. Attorney Ortiz also expressed appreciation for the help and cooperation her office received from the U.S. Attorney’s Office for the Western District of Pennsylvania and the Federal Bureau of Investigation, Pittsburgh Field Division.  The case was prosecuted by Assistant U.S. Attorney Ryan M. DiSantis of Ortiz’s Public Corruption Unit.

Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s Securities and Commodities Fraud Working Group. The interagency FFETF was created to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force, chaired by Attorney General Eric Holder, includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.

BOSTON – A Haitian national pleaded guilty and was sentenced today in U.S. District Court in Boston for disrupting a transatlantic American Airlines flight. 

Edmond Alexandre, 60, a Haitian national residing in Paris, was sentenced today by U.S. District Court Judge Denise J. Casper to one year of supervised release, a fine of $1,000 and restitution of $6,303 to American Airlines.  Alexandre pleaded guilty to interference with flight crew members.    

On Aug. 27, 2014, at 7:00pm, American Airlines Flight 62 departed Miami, Fla. en route to Paris, France.  At 9:00pm, Alexandre, a passenger on the plane, became disruptive and started arguing with other passengers.  A flight crew member intervened, and attempted to calm Alexandre down.  Unable to do so, the flight crew member walked away towards the back of the plane at which time Alexandre raised his voice again, chased the crew member down the aisle towards the back of the plane, and grabbed the crew member’s arm.  Immediately, federal air marshals, who were on the plane, identified themselves and subdued Alexandre.  Alexandre was taken into custody, and the captain of the plane diverted the flight to Boston’s Logan Airport.  Alexandre was removed from the plane and taken into custody.  Four hours later, the flight received clearance and departed for Paris.

United States Attorney Carmen M. Ortiz; Dwain G. Troutt, Special Agent in Charge of the U.S. Transportation Security Administration, Office of Law Enforcement, Federal Air Marshal Service, Boston Field Office; Bob Allison, Federal Security Director for the Transportation Security Administration for the District of Massachusetts; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Timothy P. Allen, Superintendent of the Massachusetts State Police, made the announcement today.  The case is being prosecuted by Assistant United States Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.

BOSTON – A Salem, New Hampshire man pleaded guilty today to committing six armed bank robberies in the Merrimack Valley area in 2013.

Rafael Beamud, Jr., 34, pleaded guilty today to six counts of armed robbery and one count of possession of a firearm in furtherance of his crimes.  U.S. District Court Judge Denise J. Casper scheduled sentencing for June 18, 2015. 

On Feb. 21, 2013, Beamud walked into a TD Bank in Methuen.  He approached a teller, brandishing a firearm, and ordered the teller to empty the cash drawers, making sure there was no “dye pack” put into plastic bags that he provided.  Beamud threatened to shoot if an alarm was tripped.  The teller placed the money from the drawers into one of the plastic bags and Beamud left the bank, leaving one of the plastic bags behind.  The bag was processed for fingerprints which led to Beamud’s identification.  He was arrested in April 2013 whereupon he confessed to committing a total of 16 armed robberies across three New England states, including 13 in Massachusetts.

The charge of armed robbery provides a sentence of no greater than 25 years in prison, five years supervised release, and $250,000 fine on each count.  The charge of brandishing a firearm during the commission of a crime of violence provides for a mandatory minimum term of seven years in prison with no greater than a lifetime in prison, five years of supervised release, and a $250,000 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.  Assistance was also provided by the Drug Enforcement Administration; Salem, N.H., North Andover, Dracut, and Methuen Police Departments; and the Massachusetts State Police.  The case is being prosecuted by Assistant U.S. Attorney Eve A. Piemonte of Ortiz’s Major Crimes Unit.

BOSTON – The former Director of Financial Aid for Merrimack College was sentenced on Tuesday, March 24, 2015, for fraudulently obtaining Perkins Loan funding for students over a nine-year period.

Christine Mordach, 63, of Methuen, was sentenced by U.S. District Court Chief Judge Patti B. Saris to one year and one day in prison.  A restitution hearing was scheduled for June 22, 2015.  In November 2014, Mordach pleaded guilty to mail and wire fraud.

As the Director of Financial Aid for Merrimack College, Mordach was responsible for administering the Perkins Loan program at Merrimack College.  The Federal Perkins Loan Program provides low-interest loans to help needy students finance the costs of post-secondary education.  The United States Department of Education provides Perkins Loan funding to each participating school, and the school determines which students have the greatest need and disburses the funds accordingly.  Each school’s revolving Perkins Loan fund is replenished by ongoing activities, such as collections by the school on outstanding Perkins Loans the school makes.  If awarded a Perkins Loan, a student must complete and sign a Perkins Loan promissory note in order to receive the loan funds.

Between at least 1998 and 2007, Mordach caused Perkins Loan funds to be fraudulently disbursed to Merrimack College students.  Specifically, Mordach disbursed the Perkins Loan funds to students without a signed promissory note and without the students’ knowledge or approval.  Through at least September 2011, Mordach took actions to conceal the fraudulent loans from the students, their parents, and from Merrimack College.

United States Attorney Carmen M. Ortiz; Brian Hickey, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General, Region I and II; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today.  The case was prosecuted by Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption Unit.

BOSTON – The U.S. Court of Appeals for the First Circuit in Boston affirmed the conviction and sentence of a Manchester woman who was convicted of procuring citizenship unlawfully.  This was the first such conviction in the nation based on concealing one’s personal participation in the Rwandan genocide.

Beatrice Munyenyezi, 45, was convicted in February 2013 following a 12-day trial of obtaining her U.S. citizenship unlawfully after fleeing her native country of Rwanda by misrepresenting material facts to U.S. Immigration authorities both before and after she arrived here.  She was sentenced in July 2013 to 10 years in prison and stripped of her U.S. citizenship.

Munyenyezi concealed her role in the 1994 Rwandan genocide, including her involvement in the MRND (National Republican Movement for Democracy and Development), the political party in power before and during the genocide, and its youth wing, the Interahamwe.  In affirming Munyenyezi’s conviction and sentence, the Court of Appeals stated that the evidence at trial provided for a “bone-chilling read,” and that the jury could reasonably have concluded that Munyenyezi, “personally inspected IDs” at a roadblock in front of the Hotel Ihuriro, where Munyenyezi was living during the genocide, that she “separated those who would live from those who would die (and die gruesomely), and kept records of the ghastly-goings on,” and thereafter misrepresented these facts in order to obtain immigration and naturalization benefits.

In a separate appeal, the Court of Appeals also affirmed the conviction of Prudence Kantengwa, a/k/a Prudentienne Kantengwa, on charges of immigration fraud, perjury, and obstruction of proceedings before an immigration court.  The charges against Kantengwa stemmed from lies she told about her membership in the MRND, her husband’s role as the director of Rwandas internal security service, and her knowledge of the existence of a genocidal roadblock erected in front of the Hotel Ihuriro, where Kantengwa spent half the period of the genocide in the company of individuals subsequently convicted of genocide in the International Criminal Tribunal for Rwanda.

United States Attorney Carmen M. Ortiz said, “These cases should send a strong message to all those who would seek to cheat the immigration system by lying about their background or otherwise deceiving U.S. immigration authorities.  The United States will not be a safe haven for those who conceal their past in order to gain the privilege of living in this country.”

United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement.  The cases were prosecuted by Assistant U.S. Attorneys Aloke Chakravarty and John Capin of Ortiz’s Anti‑Terrorism Unit in the District of Massachusetts.  The appeals were handled by Assistant U.S. Attorney Mark T. Quinlivan of Ortiz’s Appeals Unit.

BOSTON – Stephen Tavernier, 27, of Springfield, pleaded guilty yesterday to conspiracy to possess with intent to distribute and to distribute cocaine, and distribution of cocaine.  U.S. District Court Judge Timothy S. Hillman scheduled sentencing for June 29, 2015.

On Aug. 6, 2013, Tavernier sold cocaine to an undercover federal agent on Main Street in Springfield, just yards from the state courthouse.  Tavernier also admitted that, during the transaction, he removed a bag of crack cocaine from his mouth and handed it to the agent.  The drug purchase was captured on video. 

The charge of conspiracy to possess with intent to distribute cocaine provides a sentence of no greater than 20 years in prison, 3-5 years of supervised release, and a fine of $1 million.  The charge of distribution of cocaine provides a sentence of no greater than 20 years in prison, 3-5 years of supervised release, and a fine of $1 million.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement.  The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.

BOSTON – Four family members who operated a temporary employment agency in Lowell were sentenced yesterday on charges relating to a scheme to hide over $25 million in employee wages from the Internal Revenue Service.

Margaret Mathes, 67, was sentenced by U.S. District Court Judge Sr. Mark L. Wolf to 80 months in prison and three years of supervised release.  Her daughter, Bosea Prum, 47, was sentenced to two years in prison and three years of supervised release.  Prum’s brother-in-law, Sam Pich, 63, was given the same sentence.  Prum’s husband, Thaworn Promket, 52, was sentenced to one year and a day in prison and three years of supervised release.  All defendants were ordered to pay, jointly and severally, over $6 million in back taxes and workers compensation premiums.  The Court further required Mathes and Prum to pay, jointly and severally, $100,000 within the next 45 days, and Prum and Promket to pay over $500,000 in additional back taxes for amounts underreported on their personal tax returns.

In August 2014, all four defendants pleaded guilty to conspiracy to defraud the IRS, mail fraud, and to violating laws against structuring monetary transactions to avoid reporting requirements.  Prum also pleaded guilty to 10 counts of filing false employment tax returns, six counts of mail fraud, and two counts of structuring monetary transactions.  Pich also pleaded guilty to 17 counts of assisting the filing of false employment tax returns, six counts of mail fraud, and two counts of structuring monetary transactions.  Promket also pleaded guilty to seven counts of filing false employment tax returns, six counts of mail fraud, and two counts of structuring monetary transactions.

The charges arose from a temporary employment agency in Lowell that the defendants operated that provided unskilled labor to local companies, including those in the packaging and food services industries.  Between 2004 and 2009, the defendants reported to the IRS that their temporary employees made about $2.2 million in wages, when the real figure was nearly $30 million.  The defendants also defrauded the agency’s workers compensation insurer, Granite State Insurance Co., by hiding the true number of temporary workers the defendants employed, thus avoiding about $880,000 in insurance premiums.  As part of the conspiracy to help cover up the unreported worker wages, the defendants withdrew cash from about 20 bank accounts and paid their temporary workers “off the books.”  To further ensure that they would not be caught, the defendants structured these bank transactions – over 4300 in all – so they could withdraw the cash needed to pay the workers without triggering federal reporting requirements.

In the weeks leading up to the sentencing hearing, the government also developed evidence that defendant Mathes, with the help of her daughter, tried to mislead the Court about Mathes’s medical condition.  Mathes had recently been diagnosed with possible Alzheimer’s Disease, after which she greatly exaggerated her symptoms in an effort to win a shorter sentence.  At sentencing, the Court imposed an obstruction enhancement on both Mathes and her daughter, Prum.

United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau, made the announcement.  The case was prosecuted by Assistant U.S. Attorney Andrew E. Lelling of Ortiz’s Economic Crimes Unit.

BOSTON – For the second consecutive year, city, state, and federal officials in Boston will present events for young people in recognition of National Youth Violence Prevention Week, March 23-27, 2015.

A citywide Peace Rally at the Reggie Lewis Center at Roxbury Community College on March 26th from 5:30 to 7:30 pm, hosted by radio personalities, DJ Pup Dawg, DJ Maverik, and DJ EDubble from JAM’N 94.5, will be the highlight of the week.  At the rally, the winners of the anti-violence themed contest for Boston students will be announced and the event will also feature the Vine Street Dancers, the Seekers of Knowledge dance group, and surprise audience-participation contests.  Officials from the Mayor’s Office, Suffolk County District Attorney’s Office, and Boston Police Department will attend.  Over 250 people attended the 2014 Rally.

The Boston Interagency Committee on Violence Prevention announced creative anti-violence themed contests in schools and community centers several weeks ago.  Boston students in grades K-5 submitted posters with a theme of “Youth Standing Strong Against Violence;” grades 6-8 entered poetry with the same theme; and high school students were invited to create hip-hop music videos with an anti-violence message.

Prizes for the top entries include Red Sox tickets and a spotlight on JAM’N 94.5’s “Saturday Night Jump Off.”  Sponsoring schools or community centers will also receive Staples gift cards in recognition of their support.  Last year’s video contest winner appeared in a television interview with the Boston Police Department’s Chief Superintendent William Gross.

Another event taking place in Boston during National Youth Violence Prevention Week will be held at the Martin Luther King, Jr. K-8 School on March 24th.  The school will be the site of a half-day program for students, encouraging positive decision-making and alternatives to violence.  For the first time, the U.S. Attorney’s “Your Future, Your Decision” program will be combined with the Suffolk County District Attorney’s “Overcoming Violence” program, both designed to provide role models, positive options, and constructive activities for out-of-school time.

The Boston Interagency Committee on Violence Prevention consists of representatives from the U.S. Attorney’s Office, Boston Police Department, Suffolk County District Attorney’s Office, Boston Centers for Youth & Families, and Suffolk County Sheriff’s Department.

Sponsors of the event include Roxbury Community College, Longwood Security, MassHousing, Crystal Rock Beverages, Boston Police Athletic/Activities League, and the Youth Violence Prevention Funders Learning Collaborative.

For further information, visit www.cityofboston.gov/bcyf/programs and click on “Youth Standing Strong Against Violence,” or send an email to [email protected].

BOSTON – A Scranton, Pa. man pleaded guilty today in U.S. District Court in Springfield to charges relating to tobacco tax evasion.

Irfan Sami, 46, pleaded guilty to one count of conspiracy and three counts of wire fraud for his role in a multi-state scheme to defraud Massachusetts and Connecticut of tax revenue relating to cigars and smokeless tobacco.  Sami had been charged in November 2014.  U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept. 24, 2015.

Sami, along with a number of co-conspirators, helped wholesale businesses in Springfield and Attleboro, Mass., Danbury, Hamden, and Berlin, Conn. evade state tobacco taxes.  Working from a warehouse in Scranton, Sami helped his employer create fake invoices that would be used to make false tobacco tax filings that vastly understated the amount of tobacco tax due.

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

United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; 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. Attorneys Alex J. Grant of Ortiz’s Springfield Branch Unit and Veronica M. Lei of Ortiz’s Asset Forfeiture Unit.

BOSTON – A New Hampshire man pleaded guilty today to traveling with intent to engage in illegal sexual activity with a minor.

Karl W. Leeman, 48, of Milford, N.H., pleaded guilty before U.S. Chief District Court Judge Patti B. Saris to a Superseding Information charging travel with intent to engage in illegal sexual activity with a minor.

In February 2014, federal undercover agents in Boston placed an advertisement on Craigslist purportedly as a mother seeking an adult interested in a “taboo relationship” with her daughter.  Leeman responded that he was interested, even after the purported mother disclosed that her daughter was only 14-years-old.  Leeman proceeded to engage in more than 650 email communications with the purported mother, detailing the sexual activities in which he would engage with the minor “daughter.”  On Feb. 27, 2014, Leeman left his home in Milford, NH, traveled to work in Massachusetts, and then to Watertown for the purpose of having sex with a minor.  Upon his arrival at the designated meeting place, he was arrested by federal agents.  At the time of his arrest, Leeman was carrying alcohol, bath products, lubricant, and gifts of clothing for the minor.  

The charging statute provides a sentence of no greater than 30 years in prison, a minimum of five years and a maximum of a lifetime of supervised released, and a $250,000 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 Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today.  Assistance was also provided by HSI Manchester N.H., the Massachusetts State Police, the Watertown Police Department and the Milford, N.H. Police Department.   The case is being prosecuted by Assistant U.S. Attorney Eve A. Piemonte Stacey 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 Criminal Division=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 – Following a two-week trial, a federal jury convicted a Dorchester man yesterday in connection with the shooting, robbing, and kidnapping of a U.S. Postal letter carrier days before Christmas in 2013.

Keyon Taylor, 22, was found guilty of assault on a federal employee, robbery of a U.S. Postal worker, kidnapping, attempted kidnapping, and use of a firearm in a crime of violence.  Taylor and a co-defendant Maurice Williams Miner-Gittens, 24, also of Dorchester, were charged in January 2014.  Gittens pleaded guilty to robbery and conspiracy, and possession of a firearm in February 2015.

On Dec. 20, 2013, Taylor and Gittens rented a U-Haul van and followed a U.S. Postal delivery truck as a letter carrier was delivering holiday packages.  When the letter carrier returned to his truck after making a delivery, Taylor confronted him with a gun pointed inches away from his head and demanded his wallet.  While handing Taylor his wallet, the victim tried to move the gun away from his temple and was shot.  The bullet entered his wrist, shattering a bone, and lodging in his forearm.

Taylor then repeatedly demanded the “drawer,” presumably in reference to a cash drawer.  When the letter carrier told Taylor that the truck had no cash drawer, Taylor repeatedly pistol-whipped him.  Taylor struck the victim so hard that a piece of the pistol grip broke off.  Taylor then ordered the letter carrier into the back of the truck, and continued to beat him.  He demanded the keys to the postal truck and the letter carrier’s postal uniform which Taylor then used to try to wipe up some of the victim’s blood.

Taylor, who was partially disguised, told the letter carrier not to look at him and threatened to kill him if the carrier did so.  Moments later, frightened for his life, the letter carrier jumped out of the moving postal truck through the back cargo door.  At the time, Taylor had carjacked the postal truck with the bleeding carrier inside.  The victim ran for his life, in long johns and stocking feet.  Civilians in the area provided assistance and called the police.

While the assault took place, Gittens was in the U-Haul van right behind the postal truck.  In fact, Gittens got out and was directing traffic around the van and postal truck while Taylor was assaulting the letter carrier and then followed closely in the U-Haul van when Taylor drove off in the postal truck.

When the letter carrier jumped out of the postal truck, Taylor lost control of the truck, drove up onto the sidewalk and crashed the truck into a snowbank.  Taylor then fled through four backyards, carrying the victim’s pants and vest, as well as the revolver.  His flight path, which led to two chair link fences, was marked by a trail of boot prints in the snow.  While jumping over one of the fences, Taylor punctured his hand leaving blood and a piece of a purple nitrile glove on the top of the fence.  He also left more blood on a second fence and on the handle of a recycling bin.  The blood was matched to Taylor by DNA analysis.  Taylor dumped the victim’s pants and vest in the bin; further DNA analysis showed that both the letter carrier and Taylor had bled on the uniform.  The victim’s blood was also found on a black jacket which Taylor wore.  The jacket was recovered days later from a coat closet outside Taylor’s mother’s house in Attleboro, some 34 miles away from where the shooting took place.

Around 10:00 p.m. on the night of the robbery, Gittens was stopped in the U-Haul van.  Inside were two pairs of purple nitrile gloves that matched the one found on the fence along Taylor’s escape path.  On the outside of the van was a smear of the victim’s blood.

The charge of assault on a federal employee provides for a sentence of no greater than 25 years in prison and five years of supervised release.The charge of robbery of a U.S. Postal Worker provides for a sentence of no greater than 25 years in prison and three years of supervised release.The charge of kidnapping and attempted kidnapping provides for a sentence of no greater than life in prison and five years of supervised release.The charge of conspiracy provides for a sentence of no greater than five years in prison and three years of supervised release.For Taylor, the charge of use of a firearm in a violent crime provides for a mandatory minimum sentence of 10 years and three years of supervised release.Each charge also provides for a fine of no greater than $250,000.

U.S. Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Commissioner William Evans, made the announcement today.  The U.S. Attorney’s Office wishes to thank the Boston Police Department’s Forensic Crime Laboratory for their exceptional assistance in analyzing forensic evidence.  The case was prosecuted by William F. Bloomer and Thomas E. Kanwit of Ortiz’s Major Crimes Unit.

BOSTON – Calling his crime “heinous” and “dastardly,” a U.S. District Court Judge sentenced a Lawrence man to 16 years in federal prison yesterday for his role in a 2012 kidnapping.

Edgar Acevedo, 34, was sentenced to 16 years in prison and two years of supervised release.  In December 2014, Acevedo pleaded guilty to conspiracy to commit kidnapping.

Acevedo was part of a kidnapping crew headed by Alfred Vasquez.  On Jan. 30, 2012, Vazquez, Acevedo, Alberto Moreno, Julio Gonzalez, 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 federal agents interceded, the victim was rescued, unharmed, in Lawrence.  Among other evidence, members of the crew were identified by fingerprint and DNA evidence.

Before imposing sentence, Judge Gorton termed Acevedo’s crime “heinous” and remarked:

“You deserve to be severely punished here because you played an integral role in a sophisticated, well-planned kidnapping that involved the use of violence, firearms and an abduction for at least several days and the demand for and pursuit of a ransom after death threats. This kind of an egregious crime is rightly dealt with harshly in the sentencing guidelines, particularly to deter the commission of such crimes. And because you were part of the conspiracy to carry out this potentially deadly kidnapping, you are deserving of the long sentence you are about to receive. This sentence is intended not only to deter you from ever committing such a crime again but also to deter anyone else, whether engaged in drug trafficking or otherwise, from committing such dastardly crimes.”

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.

Seven people have pleaded guilty in connection with this kidnapping, including Miguel Nolasco, a relative of the victim who hired Vazquez to commit the kidnapping, Acevedo, Moreno, Gonzale,; Torres, and Ayala. Sentencing hearings for the remaining defendants are scheduled for March and April 2015.

Since the investigation began, more than 20 people have been charged in federal court with kidnapping-related offenses or because they were identified as being associated with members of Lawrence-based kidnapping crews.  Including the guilty pleas referenced here, to date, nine people have pleaded guilty to conspiracy to commit kidnapping, while four others have pleaded guilty to firearm-related offenses.

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 Damenic 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 – A business consultant who assisted public companies find financing was sentenced today in connection with a kickback scheme.

Barry Hawk, 46, of Woodmere, New York, was sentenced today by U.S. Senior District Court Judge Mark L. Wolf to 36 months of probation, the first six months to be served in home confinement, a fine of $20,000 and forfeiture of $12,150.  In December 2014, Hawk pleaded guilty to one count of wire fraud.

Hawk was the Managing Director of Statis Equities LLC, a consulting business, as well as President and CEO of Arctic Enterprises, Inc., a Florida-based plastics products manufacturing business.  Hawk recruited three of his clients – publicly-traded companies whose shares traded in the over-the-counter securities market – to participate in a scheme to pay secret kickbacks to an investment fund representative in exchange for having the investment fund buy stock in these two companies.  The kickbacks were concealed through the use of sham consulting agreements and other fraudulent documents.  In reality, however, and unbeknownst to Hawk or his clients, the purported investment fund representative was an undercover federal agent and the fund itself did not exist.  Hawk also participated in the scheme by having his own company, Arctic Enterprises, agree to pay kickbacks in exchange for funding.  In addition to getting funding for his company, Hawk personally received 10% of the kickback payments.

The case was part of a lengthy investigation focusing on preventing fraud in the microcap securities markets.  Microcap companies are small publicly-traded companies whose stock often trades at pennies per share.

United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. U.S. Attorney Ortiz expressed appreciation for the significant assistance received from the U.S. Securities and Exchange Commission.  The case was prosecuted by Assistant U.S. Attorney Mark J. Balthazard.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

BOSTON - A Revere woman was sentenced today for fraudulently receiving over $88,000 in disability payments and rental assistance.

Emily Lardiero, 64, was sentenced by U.S. District Court Judge Rya W. Zobel to three years of probation, including six months of home confinement, and was ordered to pay $47,671 in restitution to the Social Security Administration (SSA) and $40,391 in restitution to the U.S. Department of Housing and Urban Development.  In December 2014, Lardiero pleaded guilty to two counts of stealing public money.

In 2003, Lardiero began receiving Supplemental Security Income disability benefits from the SSA.  Recipients of these benefits are required to inform SSA if they return to work or if they acquire money or property that might make them financially ineligible to continue receiving benefits.  Lardiero did not report any work or income to SSA and stated during a benefits review in November 2013 that she was still disabled and had no income aside from her SSA benefits.  In reality, Lardiero was working at Action Emergency Services, a family business in Revere.  She also drew income from the business, which she did not report to SSA.  By failing to disclose her work and income to SSA, Lardiero received $47,671 in benefits to which she was not entitled.

Additionally, since 2001, Lardiero was illegally receiving rental assistance benefits from the U.S. Department of Housing and Urban Development (HUD). Under this program, HUD pays a significant portion of the monthly rent to the landlord, and the tenant pays the remainder.  To receive this subsidy, tenants are not allowed to have any ownership interest in the housing in which they live.  In 2007, Lardiero became the sole trustee of the trust that owned the house she was living in and as such she could control the property as if she were the legal owner.  Despite signing annual acknowledgements that she knew she could not have any interest in her housing unit, Lardiero continued to participate in the subsidy program.  From 2007 to 2010, an acquaintance of Lardiero’s received the monthly landlord’s payments from HUD, and then forwarded the money to Lardiero each month.  In this manner, Lardiero illegally received $40,391 in HUD benefits. 

This case was brought as part of an ongoing effort by the U.S. Attorney’s Office in partnership with the SSA to investigate and prosecute fraud pertaining to Social Security disability benefits.

In July 2014, Charles Flynn and Steven Grondell of Georgetown were each sentenced to three years of probation, including six months of home confinement, and were ordered to serve 105 hours of community service and to pay $105,158 in restitution to SSA.  Flynn received SSA disability benefits while working under Grondell’s identity, and with his permission, to conceal the work from SSA.

Also in July 2014, Carl Lynch, of Ware, was sentenced to three years of probation, including six months of home confinement, and was ordered to pay $50,264 in restitution to SSA.  Lynch received SSA disability benefits while working under another man’s identity to conceal the work from SSA.

In January 2014, Antonio Pulinario Brea, of the Dominican Republic, was sentenced to ten months in prison and was ordered to pay $60,455 in restitution to SSA.  Pulinario Brea used the identity of an American citizen to obtain SSA disability benefits that he would not have been entitled to receive under his true identity. 

United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Office of Inspector General, Social Security Administration, Office of Investigations – Boston Field Division; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today.  The Lardiero case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.

BOSTON – A former Boston computer industry consultant was found guilty following a five-day jury trial on March 6, 2015, of assuming the identity of an infant who died in 1966 and using that identity to obtain a Social Security number.

Steven Nolte, 51, was convicted of passport fraud, aggravated identity theft, and use of a falsely-obtained Social Security number.  U.S. District Court Judge Denise J. Casper scheduled sentencing for May 28, 2015.  He remains detained pending sentencing.

Nolte was born in Arizona in 1963 as Steven Nolte, but in 1997, he assumed the identity of a four-day-old infant who died in 1966.  At the time Nolte adopted this identity, he was in the process of stealing over $571,000 from a real estate company for which he had provided computer consulting services.  Nolte then obtained a passport in the assumed identity and traveled to Costa Rica, where proceeds of the theft had been wire-transferred.  Nolte thereafter traveled extensively in the South Pacific and ultimately settled in the Boston area, where he worked in the computer industry for many years under his assumed identity.  In 1999, he applied for a Social Security number by using the same false identity.  Nolte’s true identity was discovered in May 2012 when he submitted an application for a replacement passport in Boston under his assumed name.  State Department officials realized that the Social Security number Nolte was using had not been issued to Nolte in the assumed name until he supposedly was 33 years old.  Upon further investigation, agents learned of the infant’s death in 1966, and ultimately uncovered Nolte’s true identity.

The charge of making false statements in a passport application provides for no greater than 10 years in prison and three years of supervised release; the charge of using a falsely-obtained Social Security number provides for no greater than five years in prison and three years of supervised release; and the charge of aggravated identity theft provides for a mandatory two years in prison, and one year of supervised release.  All three charges provide for fines of up to $250,000.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentenced are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and statutory sentencing factors.

United States Attorney Carmen M. Ortiz; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorneys Brian Pérez-Daple and Robert E. Richardson of Ortiz’s Major Crimes Unit.

BOSTON – A Russian man known by the online nickname “Joga,” pleaded guilty today in U.S. District Court in Boston to participating in a scheme to acquire more than $400,000 in consumer goods and stored value cards using stolen credit and debit card information.

Alexey Svetlichnyy, 32, a Russian citizen living in Tewksbury, Mass., pleaded guilty to an Information charging him with one count of wire fraud conspiracy.  U.S. District Court Judge Allison Dale Burroughs scheduled sentencing for June 3, 2015.  Svetlichnyy was charged by complaint in May 2014.

As alleged in the charging document, Svetlichnyy, and others, obtained stolen credit and debit card data and related accountholder information over online forums dedicated to trafficking in stolen information, including Carder Planet, Vendorsname, and Direct Connect.

Svetlichnyy, and his co-conspirators, used the stolen data to make online purchases of numerous goods, including, Apple iPads, Samsung cell phones, laptop computers, servers, computer processors, scuba diving equipment, high-end camera lenses, and water filtration equipment.  They also used the stolen data to make online purchases of stored value cards issued by or on behalf of American Express, Visa, Budget Rental Car, Frontier Airlines, Macy’s, and other retailers.

When making these online purchases, Svetlichnyy, and others, frequently used the names and billing addresses associated with the stolen data, but then shipped the goods and cards to addresses that Svetlichnyy controlled.

Svetlichnyy, and others, advertised over Russian language social networks to recruit individuals to receive the stolen consumer goods and stored value cards.  Svetlichnyy, and others, paid the individuals to re-ship the items to addresses in Chelmsford and North Reading, Mass., among other places, where Svetlichnyy had opened private commercial mailboxes in the name of a Delaware company, Micaxr, LLC (Micaxr). 

From March 2010 to October 2013, Svetlichnyy sold the stolen consumer goods and stored value cards for more than $427,000 on eBay.  Svetlichnyy, and others, wired a portion of the criminal proceeds overseas, including to Russian bank accounts.

The charging statute 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 gross gain or loss, whichever is greater, 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; Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today.  Ortiz also thanked the U.S. Secret Service’s Cyber Investigative Section, and the Tewksbury and Hickory Hill, Illinois, Police Departments for their involvement in the investigation that led to today’s plea.  The case is being prosecuted by Seth B. Kosto of Ortiz’s Cybercrime Unit and Eric Christofferson of Ortiz’s Economic Crimes Unit.

BOSTON – Two Lynn men have pleaded guilty to federal charges related to their trafficking crack cocaine.

Jarmahl Sutson, a/k/a “Mahl,” and Nathaniel Freeman, a/k/a “Fatz,” both of Lynn, pleaded guilty to conspiring to distribute and distributing crack cocaine.  Suton pleaded guilty on March 4, 2015 and Freeman pleaded guilty on Feb. 20, 2015.  U.S. District Judge William G. Young scheduled Freeman’s sentencing for May 26, 2015, and Sutson’s sentencing for June 10, 2015.  Both defendants were charged in the same indictment in August 2014.

At the change of plea hearing, Sutson admitted responsibility for distribution of over 70 grams of cocaine base.  Freeman admitted responsibility for distribution of over 30 grams of cocaine base.

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

The case was part of Operation Whiplash, an investigation of several street gangs in and around Lynn and Revere.  Over the past two years, Operation Whiplash has resulted in federal and state charges against 47 leaders, members, and associates of gangs, including Money Over Broken Bitches (MOBB), the Crips, and Deuce Boyz in Lynn and the Bloods in Revere.  The investigation resulted in the seizure of more than 10 firearms and large amounts of crack and other drugs.

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 Chief Kevin F. Coppinger of the Lynn Police Department, made the announcement.  Operation Whiplash was investigated by members of the FBI’s North Shore Gang Task Force, which includes members of the FBI; Massachusetts State Police; Essex County Sheriff’s Office; and Chelsea, Lynn and Revere Police Departments.  The case was prosecuted by Assistant U.S. Attorneys Timothy E. Moran and Peter K. Levitt of Ortiz’s Organized Crime and Gang Unit.

BOSTON – Edward J. MacKenzie, Jr., a self-professed “enforcer” for James “Whitey” Bulger, was sentenced today to 12 years in prison in connection with his decade-long scheme to siphon off the considerable financial assets of a Beacon Hill Church.

MacKenzie, 57, of Weymouth, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 12 years in prison, three years of supervised release, and ordered to pay $754,569 in restitution.  In sentencing MacKenzie, Judge Saylor imposed a sentence two years above the guideline range, “struggling to find any redeeming qualities in Mr. MacKenzie.”  Judge Saylor also noted that MacKenzie had, among other things, apparently used his daughter to facilitate the commission of the charged offenses.

 “Edward MacKenzie preyed on the vulnerable, intimidated the altruistic, and wove a web of lies and fraud for more than a decade,” said U.S. Attorney Carmen M. Ortiz.  “He had literally led a life of crime and now faces a well-deserved twelve years in federal prison.”  

In October 2014, MacKenzie pleaded guilty to 13 counts, including RICO conspiracy, racketeering, mail fraud, wire fraud, and money laundering.  Judge Saylor also cited MacKenzie’s lengthy criminal history, most of which had gone unpunished.   

In September 2002, MacKenzie became a member of the Boston Society of the New Jerusalem Church, which was one of the first Swedenborgian churches in Massachusetts, and in 2003, he became the “Director of Operations,” a position that had not previously existed and paid him a salary as high as $200,000 per year.  In order to drain the Church of its assets, he began voting himself and his associates into positions of authority within the Church, and consolidated and fortified his control by, among other things, changing the Church’s by-laws for his own benefit.  MacKenzie was able to gain control over substantial Church assets, including an 18-story apartment building in downtown Boston, because the Church had a small number of voting members, many of whom were elderly.

After obtaining control, MacKenzie stole Church funds through a combination of fraud, deceit, theft, and bribery.  Moreover, MacKenzie intimidated and threatened individuals who were employed by and did work at the Church by, among other things, providing them with signed copies of his 2003 autobiography, Street Soldier: My Life as an Enforcer for Whitey Bulger and the Boston Irish Mob.  In the autobiography, MacKenzie admitted to a lengthy criminal history, including burglary, robbery, armed assault, and narcotics trafficking.

As stated in court documents, MacKenzie’s crimes cost the Church millions of dollars and deprived the needy who relied on its charity.  Judge Saylor questioned MacKenzie’s remorse and sincerity due to the fact, as the government noted, that since his incarceration on this case in May 2013, MacKenzie has continued to commit crimes in prison, including fraud, extortion, and witness tampering.

U.S. Attorney Ortiz, Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today.  The case was prosecuted by Assistant U.S. Attorneys Zachary Hafer and Dustin Chao of Ortiz’s Public Corruption and Special Prosecutions Unit.

BOSTON – A Plymouth man pleaded guilty today to possessing and distributing child pornography.

Brendan R. Kessler, 25, pleaded guilty to distribution and possession of child pornography.   U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for June 10, 2015.

On Sept. 2, 2014, after law enforcement became aware that Kessler had posted child pornography to a public file sharing program known as Lime Wire, federal agents executed a search warrant on Kessler’s residence and seized a computer and various digital storage devices containing multiple images and videos of child pornography.  Federal agents also located multiple boxes of fireworks, detonator cords, remote firing switches, a hand-written journal titled “Mass Murder Book,” and lists of chemicals needed to create explosive power.  Additionally, in an upstairs bedroom, agents located 14 firearms (3 semi-automatic pistols, 3 shotguns, and 8 rifles) and multiple boxes of various caliber ammunition. Kessler was arrested following the execution of the search warrant and is currently being held in federal custody.

The charging statute provides for a sentence of no greater than 20 years in prison, with a five year minimum mandatory term, and no less than five years and up to a lifetime of supervised release.  According to a plea agreement, the parties agreed that Kessler would recommend a sentence of no less than 63 months, and the government a sentence of no greater than 78 months. 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. Alban, Superintendent of the Massachusetts State Police; and Plymouth Police Chief Michael E. Botieri, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crime Unit.

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

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

BOSTON – Joshua Pelosi, 36, was sentenced on March 4, 2015 by U.S. District Court Judge Mark G. Mastroianni to 37 months in prison and six years of supervised release for failing to register as a convicted sex offender.  In October 2014, Pelosi pleaded guilty to two federal counts of failing to register as a sex offender.

Pelosi, after being released from prison in New York for failing to register as a sex offender, traveled from New York to Massachusetts and settled in the Commonwealth without notifying law enforcement authorities.  In April 2014, Pelosi traveled from Massachusetts to South Carolina and once again failed to register as a sex offender.

United States Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement.  The case was prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Office.

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

BOSTON – A former state pesticide manufacturing facility inspector was sentenced on March 4, 2015 in U.S. District Court in Springfield for making false statements on inspection reports he submitted to the U.S. Environmental Protection Agency.

Paul Ricco, 54, of Springfield, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 24 months of probation.  In November 2014, he pleaded guilty to 15 counts of making false statements.

From March 2010 through May 2012, Ricco was in charge of the Producer Establishment Inspection program at the Massachusetts Department of Agriculture where he inspected establishments that produce, sell and/or distribute pesticides.  During that time period, Ricco submitted 15 false reports of purported inspections that he never performed.  Ricco submitted the false reports to the EPA to conceal the fact that he was not performing environmental inspections which he was required to perform. Those inspections were necessary to insure that pesticide manufacturers across the state were producing and packaging pesticides safely.

United States Attorney Carmen M. Ortiz and Tyler Amon, Special Agent in Charge of the U.S. Environmental Protection Agency, Criminal Investigation Division, Boston Field Office, made the announcement.  The case was prosecuted by Assistant U.S. Attorney Carlos A. López.

BOSTON – A Dedham man was sentenced yesterday for robbing three Boston area banks within a two week period in January 2014 and stealing over $8,000.

Joseph Wilcox, 47, of Dedham, was sentenced before U.S. District Court Judge Rya W. Zobel to 96 months in prison and three years of supervised release.  Following a four month investigation, Wilcox was arrested in May 2014.  In November 2014, Wilcox pleaded guilty to three counts of bank robbery.

On Jan. 15, 2014, Wilcox, wearing a hat, gloves, and sunglasses, walked into a Blue Hills Bank in Brookline.  He approached a teller window and gave the teller a note that stated, “This is a hold-up,” and stole $1,318.  One week later, on Jan. 22, 2014, Wilcox, wearing a similar disguise, walked into an Eastern Bank in Cambridge and gave a teller a note that read, “no dye packs” and stole $839.  Three days later, Wilcox, again wearing a similar disguise, walked into a TD Bank in Brookline and gave a teller a note that read, “Give me the 100’s and large bills” and stole $6,260.

United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Brookline Police Chief Daniel C. O’Leary; and Cambridge Police Commissioner Robert C. Haas, made the announcement today.  The case was prosecuted by Assistant U.S. Attorney Carlos A. López.

BOSTON – A Russian man was sentenced yesterday to three years in prison for laundering profits from a scheme in which computer hackers essentially took people’s computers “hostage” electronically until a ransom was paid.

Aleksei Shushliannikov, 23, was sentenced by U.S. Senior District Judge Mark L. Wolf to three years in prison, three years of supervised release, forfeiture of profits and equipment, and restitution.  In November 2014, Shushliannikov pleaded guilty to one count of conspiracy to commit money laundering, one count of using a fictitious name and address in connection with the U.S. mail, and one count of identity fraud.  He was charged in October 2013.

The scheme began with computer hackers who actually, or seemingly, took over victims’ computers with a virus.  The hackers told the victims that they would restore the computers’ function if the victims bought a MoneyPak and sent the MoneyPak number to the hackers.  Sometimes the hackers posed as the FBI, saying that the FBI was freezing the victims’ computers as part of a law enforcement action, and that the victims could avoid arrest by paying a criminal fine via MoneyPak.  A MoneyPak is a product or service that allows a customer to load cash onto a prepaid debit card that is associated with a MoneyPak number; therefore, a MoneyPak number is almost equivalent to cash.  With that number, the customer, or anyone else, can transfer funds from one prepaid debit card to another electronically and with relative ease and anonymity.

But the hackers faced a problem.  If they transferred the ransom to physical debit cards, they risked being caught on videotape while withdrawing the ransom as cash at banks and ATMs.  So they sold the ransomed MoneyPak numbers over the Internet.

Shushliannikov participated in the scheme from December 2012 until February 2013 when he was caught.  The conspiracy bought the ransomed MoneyPak numbers and, in order to cash them with relative anonymity, opened prepaid debit cards using the identities of other, uninvolved people, whose names, dates of birth, and other information he had bought on the Internet.  The conspiracy then had the debit cards mailed to mail drops that Shushliannikov employed throughout New England.

Shushliannikov was responsible for finding appropriate mail drops at unsuspecting homeowners’ mailboxes.  To avoid discovery, Shushliannikov selected houses throughout Massachusetts and New Hampshire that looked unoccupied, especially those with a “for sale” sign out front.  Shushliannikov collected the debit cards from these houses’ mailboxes and brought the cards to his co-conspirator who then loaded the cards with the ransom money.  Shushliannikov and the conspiracy then withdrew the funds as cash.  Shushliannikov also deposited the ransom in other people’s bank accounts, from which the funds were periodically wired to accounts outside the United States.

Shushliannikov was discovered while removing mail from another person's mailbox in New Hampshire.  His GPS linked him to other mail drop addresses used in the scheme.  His apartment contained 246 prepaid debit cards, $26,000 in cash, and a money-counting machine, all of which have been forfeited.  In total, the conspiracy had opened about 1,100 prepaid debit cards and laundered or intended to launder between $400,000 and $1 million.

United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today.  Assistance was also provided by the Hampton, New Hampshire Police Department.  The case was prosecuted by Assistant U.S. Attorney Scott L. Garland of Ortiz’s Anti-Terrorism and National Security Unit.

BOSTON – A Russian man was sentenced yesterday to three years in prison for laundering profits from a scheme in which computer hackers essentially took people’s computers “hostage” electronically until a ransom was paid.

Aleksei Shushliannikov, 23, was sentenced by U.S. Senior District Judge Mark L. Wolf to three years in prison, three years of supervised release, forfeiture of profits and equipment, and restitution.  In November 2014, Shushliannikov pleaded guilty to one count of conspiracy to commit money laundering, one count of using a fictitious name and address in connection with the U.S. mail, and one count of identity fraud.  He was charged in October 2013.

The scheme began with computer hackers who actually, or seemingly, took over victims’ computers with a virus.  The hackers told the victims that they would restore the computers’ function if the victims bought a MoneyPak and sent the MoneyPak number to the hackers.  Sometimes the hackers posed as the FBI, saying that the FBI was freezing the victims’ computers as part of a law enforcement action, and that the victims could avoid arrest by paying a criminal fine via MoneyPak.  A MoneyPak is a product or service that allows a customer to load cash onto a prepaid debit card that is associated with a MoneyPak number; therefore, a MoneyPak number is almost equivalent to cash.  With that number, the customer, or anyone else, can transfer funds from one prepaid debit card to another electronically and with relative ease and anonymity.

But the hackers faced a problem.  If they transferred the ransom to physical debit cards, they risked being caught on videotape while withdrawing the ransom as cash at banks and ATMs.  So they sold the ransomed MoneyPak numbers over the Internet to people like Shushliannikov and his co-conspirator.

Shushliannikov participated in the scheme from December 2012 until February 2013 when he was caught.  His co-conspirator bought the ransomed MoneyPak numbers and, in order to cash them with relative anonymity, opened prepaid debit cards using the identities of other, uninvolved people, whose names, dates of birth, and other information he had bought on the Internet.  The co-conspirator then had the debit cards mailed to mail drops that Shushliannikov employed throughout New England.

Shushliannikov was responsible for finding appropriate mail drops at unsuspecting homeowners’ mailboxes.  To avoid discovery, Shushliannikov selected houses throughout Massachusetts and New Hampshire that looked unoccupied, especially those with a “for sale” sign out front.  Shushliannikov collected the debit cards from these houses’ mailboxes and brought the cards to his co-conspirator who then loaded the cards with the ransom money.  Shushliannikov and his co-conspirator then withdrew the funds as cash.  Shushliannikov also deposited the ransom in other people’s bank accounts, from which the funds were periodically wired to accounts controlled by co-conspirators outside the United States.

Shushliannikov was discovered while removing mail from another person's mailbox in New Hampshire.  His GPS linked him to other mail drop addresses used in the scheme.  His apartment, which he shared with his co-conspirator, contained 246 prepaid debit cards, $26,000 in cash, and a money-counting machine, all of which have been forfeited.  In total, he and his co-conspirator had opened about 1,100 prepaid debit cards and laundered or intended to launder between $400,000 and $1,000,000.

United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today.  Assistance was also provided by the Hampton, New Hampshire Police Department.  The case was prosecuted by Assistant U.S. Attorney Scott L. Garland of Ortiz’s Anti-Terrorism and National Security Unit.

BOSTON – Following a seven-day trial, three Worcester men were convicted yesterday of distributing crack cocaine in the City of Worcester and surrounding areas.

Sergio Hernandez, 33, James "Speedro" Dunston, 33, and Anthony Wooldridge, 30, were convicted of conspiracy with the intent to distribute over 280 grams of “crack” cocaine.  Wooldridge was also convicted of possession with intent to distribute cocaine.  A fourth co-defendant, Richard Cruz, aka Compi, 42, of Puerto Rico, pleaded guilty on the second day of trial to conspiring to sell over 500 grams of powder cocaine.  U.S. District Court Judge Timothy Hillman scheduled sentencing for May 14, 2015 for Cruz, May 15, 2015 for Wooldridge, May 22, 2015 for Dunston, and May 26, 2015 for Hernandez.  The Massachusetts defendants were arrested in September 2012, and Cruz was simultaneously arrested at his residence in Puerto Rico.

The conspiracy charges arose from a year-long investigation into a crack cocaine network run by Hernandez, Dunston and Wooldridge in Worcester.  On numerous occasions, Hernandez, Dunston and Wooldridge bought 200-500 gram amounts of powder cocaine from a number of sources inside and outside of Massachusetts.  They then cooked down the cocaine into crack and distributed it in and around Worcester. Evidence presented at trial included an undercover officer’s purchases of crack cocaine from the defendants, approximately 30,000 intercepted phone calls and text messages, and the August 2012 seizure of one half kilogram of powder cocaine that Cruz sent from Puerto Rico to Hernandez in Worcester through the U.S. mail.

In total, fourteen individuals were charged as a result of the joint investigation by the Drug Enforcement Administration, Worcester Police Department, and U.S. Postal Inspection Service.  Three codefendants -- Shawna Gotsis, Janette Hernandez and Jeneva Hernandez -- previously pleaded guilty to similar federal offenses.  The Worcester County District Attorney's Office charged seven other co-conspirators in Massachusetts state court.

The charging statute provides a mandatory minimum sentence of 10 years and no greater than life in prison, a minimum of five 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 court 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 Field Division; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Gary J. Gimme, made the announcement.  The case is being prosecuted by Assistant U.S. Attorneys Cory S. Flashner and Greg A. Friedholm of Ortiz’s Worcester Branch Office. 

BOSTON – A Framingham man was charged today in U.S. District Court in Boston with child pornography offenses.

Stephen John Hallissey, 37, was charged by criminal complaint with possession and receipt of child pornography.  At the initial appearance in federal court before Magistrate Judge David H. Hennessy, Hallissey agreed to pretrial detention, and waived his right to a preliminary hearing, at which the government would have had to establish probable cause that Hallissey committed the two charged child pornography offenses.

The affidavit filed in support of the charges alleged that Hallissey was arrested after law enforcement officers executed a federal search warrant at his Framingham home.  A preliminary review of Hallissey’s computer revealed over 10,000 images and videos of child pornography.  According to the affidavit, Hallissey admitted to the law enforcement officers that on a weekly basis he downloads child pornography from the Internet to his computer, and uploads child pornography from his computer to websites featuring sexually explicit content of minors.

United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today.  The case is being prosecuted by Assistant United States Attorneys David G. Tobin and Seth Orkand of Ortiz’s Major Crimes Unit.

The case was investigated by the Federal Bureau of Investigation's Boston Child Exploitation Task Force (CETF), which is comprised of members from the FBI, the Boston Police Department Child Abuse and Human Trafficking Units, the Arlington, Malden and Norwood Police Departments, the Massachusetts Department of Correction, and the Massachusetts State Police, with additional assistance provided by the U.S. Postal Inspection Service. 

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

BOSTON – A Boston area man pleaded guilty on Friday, Feb. 27, 2015, to robbing three banks in June 2014 and stealing over $18,000.

Edward Stone, 27, pleaded guilty to three counts of bank robbery after being indicted in July 2014.  U.S. District Court Judge Denise J. Casper scheduled sentencing for June 4, 2015.

On June 7, 2014, Stone walked into a TD Bank in Braintree holding a notebook and approached the bank teller.  He showed the teller a note written in the notebook demanding money in “Big Bills” [sic].  While speaking to the teller, he also threatened to “blow [her] head off” if she did not follow his instructions.  Stone left the bank with $7,363 a minute after he entered.  On June 12, 2014, Stone entered a TD Bank in Hingham at 11:24 a.m.  Once again, he presented a note demanding money and told her, “This is a robbery.  Give me the money.”  Stone stole $3,796 from the bank.  On June 20, 2014, Stone robbed the same TD Bank in Braintree for the second time.  Stone approached a teller and once again demanded money.  Stone left the bank forty seconds after entering with $7,098 in cash.

Following each robbery, the tellers and other witnesses identified Stone from a photo array, and police arrested him on June 25, 2014.  After his arrest, Stone gave a videotaped confession in which he admitted to all three robberies.

The charge of bank robbery provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and forfeiture of the proceeds of the crimes.  According to a plea agreement, the parties agreed that Stone would recommend a sentence of no less than 72 months, and the government a sentence no greater than 92 months. 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; Chief Russell Jenkins of the Braintree Police Department; and Chief Michael Peraino of the Hingham Police Department, made the announcement.  The case is being prosecuted by Assistant U.S. Attorney Brian A. Pérez-Daple of Ortiz’s Major Crimes Unit.

BOSTON – A New York operator of skilled nursing facilities entered into an agreement with the United States to pay $3.5 million to resolve allegations concerning inflated Medicare claims for rehabilitation therapy.

The Catholic Health Care System, a/k/a ArchCare, entered into an agreement concerning claims for therapy purportedly provided by its subcontractor, Physical and Occupational Rehabilitation Therapy and Speech-Pathology Services, PLLC, an affiliate of RehabCare Group East, Inc. (RehabCare), and Kindred Healthcare, Inc.

ArchCare operates Terence Cardinal Cooke Health Care Center in New York City and Ferncliff Nursing Home in Rhinebeck, New York, and it previously operated Kateri Residence in New York City (collectively, the ArchCare facilities).  This settlement resolves allegations that the three ArchCare facilities submitted claims to Medicare that sought inflated amounts of reimbursement based on either the provision of unreasonable or unnecessary rehabilitation therapy, or false reports of therapy being delivered.

The United States alleges that, prior to Oct. 1, 2011, the ArchCare facilities 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,” when Archcare was required to report to Medicare the amount of therapy it was providing to its patients.  ArchCare billed Medicare patients at the highest therapy reimbursement level, but RehabCare then provided less therapy to those same patients outside the assessment reference periods, when the facilities were not required to report to Medicare the amount of provided therapy.  As a result of this practice by RehabCare, ArchCare frequently billed Medicare for its patients’ care at the highest therapy-based levels, even though the patients often were not receiving therapy at those levels.

“This settlement is part of the government’s continuing effort to ensure that the provision of care in skilled nursing facilities is based on patients’ clinical needs and not tied to the financial targets of the companies providing their care,” said United States Attorney Carmen M. Ortiz.  “To its credit, ArchCare cooperated with the government’s investigation and took steps to address the issues that were revealed during the investigation.”

This settlement further resolves allegations that ArchCare 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 different 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 reimbursable therapy time; (5) reporting that time spent providing unskilled palliative care was time spent on reimbursable skilled therapy; and (6) reporting estimated or rounded minutes instead of reporting the actual minutes of therapy provided.

The government took ArchCare’s cooperation and its current practices into account in reaching the resolution being announced today.

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 – A Springfield man was sentenced today in U.S. District Court in Worcester in connection with using a firearm to threaten his parents.

Jamel Bolden, 22, was sentenced by U.S. District Judge Timothy S. Hillman to 78 months in prison and three years of supervised release.  In November 2014, Bolden pleaded guilty to conspiring to illegally possess a firearm and ammunition and conspiring to distribute cocaine.

On June 3, 2013, during a domestic dispute with his mother and his stepfather, Bolden brandished a silver long-barreled revolver and told his stepfather that he would “lay him down” (i.e., shoot him).  Bolden had been previously convicted of three counts of armed robbery and was currently on probation for these offenses.  Immediately after Bolden threatened to shoot his stepfather, Bolden fled from the police and hid the revolver at a nearby elementary school.

Bolden has also agreed to pleaded guilty to assault with a dangerous weapon in a related case in Hampden Superior Court.

United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Office; and Springfield Police Commissioner John Barbieri made the announcement today.  The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.

BOSTON – The owner of a home nursing agency was sentenced yesterday to 92 months in prison for fraudulently billing millions of dollars of services to Medicare and then laundering the proceeds.

Michael Galatis, 63, of Natick, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 92 months in prison, three years of supervised release, and ordered to pay a $50,000 fine, $7 million in restitution to Medicare, and to forfeit proceeds of the fraud scheme, including his house, valued at $850,000.  Galatis was convicted following a 16-day trial in December 2014 of conspiracy to commit health care fraud, ten counts of health care fraud, and seven counts of money laundering.

Galatis, who is also a registered nurse, owned and operated At Home VNA (AHVNA), a home health agency located in Waltham.  From 2006 to 2012, Galatis submitted more than $27 million in false and fraudulent home health care claims to Medicare.  Medicare paid AHVNA more than $20 million of those fraudulent claims.

The Medicare program pays for home health services only if the services are medically necessary and the individual is homebound.  Galatis ignored these requirements and trained AHVNA nurses to recruit healthy individuals with Medicare insurance who lived in large apartment buildings.  Galatis held “wellness clinics” at these buildings where nurses convinced senior citizens to enroll with AHVNA and have a nurse visit them in their home. Galatis, and his co-conspirator, trained AHVNA nurses to manipulate the patients’ Medicare assessment forms to make it appear as though the patients qualified for Medicare home health services, when that was often not the case.  Galatis paid a physician, Dr. Spencer Wilking, to sign the home health care orders, even though Dr. Wilking did not examine the vast majority of AHVNA’s patients.

Evidence at trial revealed the patients’ primary care physicians did not refer the patients to AHVNA and were unaware that AHVNA was sending nurses to see their patients in their homes.  A number of these physicians complained to Galatis, informing him that the patients did not need a visiting nurse, but Galatis ignored these complaints.  Similarly, AHVNA’s nurses testified that they informed Galatis that the patients did not need a visiting nurse, but Galatis refused to discharge the patients and continued to bill Medicare.

In 2011, Medicare passed a new requirement that a physician certify that she or he had a face-to-face encounter with the patient about the need for home health care.  Even after this regulation was enacted, Galatis continued to bill Medicare for millions of dollars of home health care even though Dr. Wilking signed each order without examining any of the patients.  Galatis used the proceeds of the fraud scheme to purchase a house currently valued at $850,000 in Natick free and clear of a mortgage.

Janice Troisi, also a registered nurse and the AHVNA clinical director, is scheduled to go to trial on July 27, 2015.  Dr. Wilking, who pleaded guilty in February 2014 to health care fraud, is scheduled to be sentenced on Sept. 22, 2015.

United States Attorney Carmen M. Ortiz; Philip Coyne, Special Agent in Charge of the U.S. Health and Human Services, Office of Inspector General, Office of Investigations; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement.  The case was being prosecuted by Assistant U.S. Attorneys David S. Schumacher and Lisa A. Schlatz of Ortiz’s Health Care Fraud Unit.  The trial team was also assisted by the New England Benefit Integrity Support Center, a fraud contractor for the Medicare program.

BOSTON – A former Cambridge man was sentenced today for identity fraud related to the sale of a valuable diary from the 1600s.                    

Michael Ford, 66, was sentenced by U.S. District Court Judge George A. O’Toole to 16 months in prison, half to be served in jail and half in community confinement, for using the identity of another man in August 2008 in connection with the sale a diary stolen from Boston’s historic Old South Church.  Ford pleaded guilty in November 2014.  

The diary was written by James Hull in 1652 and contained some unpublished sermons that had been given to soldiers before they departed to fight Native Americans.  It had been stolen from the Old South Church in Boston earlier in the summer of 2008.  On Aug. 11, 2008, a man sold the diary to Gray Booksellers in Harvard Square for $750, using the driver’s license of another man as identification.  Within 40 minutes of this transaction, Ford had obtained the check and the driver’s license and, using the license as identification, cashed the check at a bank in Harvard Square.  Gray Booksellers thereafter realized the diary was valuable and sold it to a collector in Rhode Island for $40,000, but upon learning that the diary had been stolen from the Church, the bookstore bought it back and restored it to the Church.

United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division; Boston Police Commissioner William Evans; Harvard University Police Francis D. Riley; and Boston University Police Chief Thomas G. Robbins made the announcement today.  The case was prosecuted by Assistant U.S. Attorney Robert E. Richardson of Ortiz’s Major Crimes Unit.

BOSTON – Two Boston men, alleged to be members of Boston’s Thetford Avenue Buffalos, have pleaded guilty in U.S. District Court to sex trafficking four minors.

Today, Anthony Pledger, also known as “Polo,” 27, pleaded guilty to two counts of sex trafficking of two minors before United States District Judge William G. Young.  On Feb. 11, 2015, a co-defendant, Miriam Kizzie, also known as “Keys,” 21, pleaded guilty to two counts of sex trafficking of two minors before Judge Young.  Pledger and Kizzie were charged in the same indictment in February 2014.

At the change of plea hearing today, Pledger admitted that, in October 2013, he brought two minors, aged 16 and 15 at the time, from Massachusetts to Providence, Rhode Island, intending to have them engage in prostitution.  The minors were rescued by Rhode Island and Massachusetts police officers before any prostitution occurred.

At the change of plea hearing on Feb. 11, 2015, Kizzie admitted that, for approximately a week in July 2013, he caused two different minors, aged 14 and 15, to be advertised online for prostitution and engage in prostitution primarily in Dorchester, Mass.

According to documents filed with the court, both Pledger and Kizzie were alleged to be members of the Thetford Avenue Buffalos, a local Boston street gang.

Pursuant to a proposed binding plea agreement, Pledger faces a mandatory sentencing range of 120 months to 204 months in prison, to be followed by five years of supervised release.  Also pursuant to a proposed binding plea agreement, Kizzie faces a mandatory sentencing range of 135 to 153 months, to be followed by five years of supervised release.  If the Court accepts the plea agreements, he will determine the sentences within those ranges.  The sentencing hearing for Kizzie has been set for May 4, 2015 at 2:00 p.m.  The sentencing hearing for Pledger has been set for May 28, 2015 at 2:00 p.m.

U.S. Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Custom’s Enforcement, Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans made the announcement today.  The case was also investigated by the Rhode Island State Police, Massachusetts State Police, and the Providence, Brockton, Dedham and Brookline Police Departments.  Significant assistance was provided by the Rhode Island Attorney General’s Office, and Plymouth, Middlesex and Suffolk County District Attorney’s Offices.  The case is being prosecuted by Assistant U.S. Attorneys Amy Harman Burkart and Timothy E. Moran of Ortiz’s Civil Rights Enforcement Team.

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 – A convicted felon was sentenced today in U.S. District Court in Springfield for illegally possessing a Smith & Wesson handgun and ammunition.

Randy Rivera, 36, of Springfield, was sentenced by U.S. District Court Judge Michael A. Ponsor to 15 years in prison and four years of supervised release.  In December 2014, Rivera pleaded guilty to possessing a firearm as a convicted felon.  Rivera had an extensive criminal history at the time of his gun possession which qualified him as a federal armed career criminal.

On Jan. 4, 2013, law enforcement officers executed a search warrant at Rivera’s residence in Springfield.  Officers found a Smith & Wesson, model M&P 9C, 9mm pistol, and 17 rounds of 9mm ammunition in a hidden compartment behind his bedroom headboard.  The handgun, with a loaded high capacity magazine, was attached to a magnet for quick access.  The officers also found $132,531 in cash hidden in the bedroom and a closet.

United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives in New England; 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. Attorney Kevin O’Regan of Ortiz’s Springfield Branch Office.

BOSTON – A Connecticut executive was arrested this morning on charges that he sold confidential business information regarding the wireless industry to an analyst at a Boston-based financial services firm. 

James Dunham, 59, of Glastonbury, Conn. was arrested on a federal criminal complaint on charges of mail fraud and wire fraud.  He is scheduled to appear in U.S. District Court in Boston at 2:45 p.m. today before Chief Magistrate Judge Jennifer C. Boal.

The complaint alleges that Dunham, formerly the Chief Operating Officer (COO) of a retailer for a major provider of wireless services, had access to confidential information regarding sales, compensation, and product launches at the retailer’s 400 locations.  For more than three years, and unbeknownst to his employer, Dunham had a secret consulting agreement with a financial services firm to provide confidential information in return for which he was paid $2,000 per month.

Specifically, the complaint alleges that seven research notes prepared and distributed by the financial services firm included information supplied by Dunham, including information regarding the status of certain product launches, the number of new subscribers to a specific wireless provider, and sales and return information for specific smartphones.  In particular, Dunham was allegedly the source for an April 11, 2013, research note in which the firm reported that product returns were exceeding sales for a specific smartphone.  Following distribution of that note, the stock price for the smartphone manufacturer dropped seven percent in a single day.

“The black market for business secrets continues to flourish,” said United States Attorney Carmen M. Ortiz.  “Sometimes business secrets are sold for use in insider trading; sometimes they are used for other improper purposes.  But the sale of confidential business information by corporate insiders—in violation of their duties to employers, business partners, customers, and shareholders—is always wrong and illegal.”

“As alleged, Mr. Dunham has undermined the credibility and efficiency of capital markets in favor of lining his own pocket by profiting from the sale of confidential information,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division.  “This complaint should serve as a reminder that no one is excused from obeying the laws of this country, and the FBI will continue to root out corporate fraud wherever it is found.”

The maximum sentence under each charging statute is 20 years in prison, three years of supervised release, and a fine of the greater of $250,000, or twice the gross gain or loss.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

The case was investigated by the Federal Bureau of Investigation, Boston Field Division.  The United States Attorney’s Office also received valuable assistance from the Securities & Exchange Commission.  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 defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – Joseph J. Kennedy, 27, of Charlestown, pleaded guilty to being a previously convicted felon in possession of ammunition.  U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for June 1, 2015.

On May 7, 2014, Kennedy, who was the subject of an outstanding arrest warrant, was observed driving a vehicle in Charlestown.Kennedy was apprehended and the arresting officers discovered a stolen safe in his vehicle which contained multiple rounds of ammunition.

As an armed career criminal, the defendant is subject to a mandatory minimum sentence of 15 years in prison and no greater than life, five years of supervised release, and a $250,000 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; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; John Gibbons, U.S. Marshal of the U.S. Marshals Service, District of Massachusetts; and Boston Police Chief William Evans, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorneys Kenneth G. Shine and Mary B. Murrane of Ortiz’s Major Crimes Unit.

BOSTON – An Arizona man was charged in an indictment unsealed today with defrauding numerous victims who invested in his foreign currency trading company. 

David Prescott, 44, formerly of Boston, was charged with 16 counts of wire fraud.  Prescott, who previously went by the name of David Weeks, was arrested today in Arizona.

According to the indictment, David Prescott was the owner and President of Cambridge Currency Partners, LLC (CCP), which was purportedly engaged in the business of buying and selling foreign currency.  Prescott falsely represented to investors that their funds would be invested in CCP and used for business purposes, and that the investors would receive a monthly return.  In fact, Prescott used the majority of the funds on personal expenses and repayments to other investors.

As part of the scheme, Prescott allegedly solicited investors by promising monthly returns ranging from one to six percent with little to no risk to the underlying principal.  The indictment alleges that Prescott made false representations to the investors regarding the balances in their accounts and made payments to them that purported to be interest, but that, in fact, simply consisted of money from other investors.  As a result, Prescott was allegedly able to secure multiple investments from the same investors.  On one occasion, Prescott allegedly emailed an investor and promised to increase the interest paid on her previous investments if she were willing to invest additional funds, even though Prescott had already spent the majority of her previous investments on personal expenses and repayments to other investors.

The charging statute provides a maximum sentence of 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gain or loss, 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 Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Alexander H. Berlin of Ortiz’s Economic Crimes Unit.

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

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

BOSTON – A Dominican national living in Methuen was sentenced on Monday for using stolen identities to obtain official identification documents.

Delcin Belarminio Soto Baez, a/k/a Nelso Santos Ramos, was sentenced by U.S. District Court Judge F. Dennis Saylor, IV, to 27 months in prison and one year of supervised release.  In July 2014, Baez pleaded guilty to passport fraud and false representation to the Social Security Administration.  

In April 2004, Baez submitted an application for a U.S. passport at the U.S. Post Office in Lawrence, representing himself to be José Torres, an individual born in the Commonwealth of Puerto Rico and, therefore, a U.S. citizen.  Almost eight years later, in January 2012, Baez submitted an application for a Social Security number replacement card at the Social Security Administration District Office in Lawrence, representing himself to be Hermer Maldonado, a U.S. citizen also born in the Commonwealth of Puerto Rico.

A subsequent investigation revealed that Baez assumed the identities of the true JosJ Torres and Hermer Maldonado, which he supported with government issued birth certificates and photo identification documents.  Baez provided these identities, along with other aliases, to law enforcement officials at various times when arrested on separate and unrelated state narcotics charges.  Baez is a citizen of the Dominican Republic with no legal status in the United States.

United States Attorney Carmen M. Ortiz; David W. Hall, Special Agent in Charge of the U.S. Department of States, Bureau of Diplomatic Security, Boston Field Office; 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.  The case was prosecuted by Assistant U.S. Attorney Carlos A. López of Ortiz’s Drug Task Force Unit.

BOSTON – The Harvard-educated founder of a Boston-based financial services firm was indicted today on multiple charges of fraud and obstruction of justice for allegedly defrauding investors in a $40 million mutual fund.

Daniel Thibeault, 40, of Framingham, was charged in an eight-count indictment with securities fraud, wire fraud, aggravated identity theft, and obstruction of justice.  Thibeault was previously arrested on a complaint in December charging him with a single count of securities fraud. 

As alleged in the indictment, Thibeault, a 2004 graduate of Harvard Business School, is the founder and principal owner of Graduate Leverage, LLC, an asset management and financial advisory firm.  Thibeault also served as the co-portfolio manager of the GL Beyond Income Fund, a mutual fund launched in March 2012 that purported to invest in consumer loans to individuals with graduate degrees – including medical doctors, dentists, veterinarians, and attorneys – who the fund described in marketing materials as “less susceptible to economic downturns.”

The indictment alleges that many of the loans purportedly issued by the fund were fictitious, and the individuals in whose names they were issued – friends and associates of Thibeault – never applied for them and did not receive the money.  Instead, Thibeault allegedly used the fictitious loans to divert a portion of the fund’s assets into the operating accounts of his company, and then used the money for business and personal expenses.  In an effort to perpetuate and conceal his scheme, Thibeault occasionally used the proceeds of new loans to make interest payments on fictitious loans he had previously caused the fund to issue.

The indictment also alleges that Thibeault sought to obstruct a Securities and Exchange Commission (SEC) investigation of the fund by intentionally misleading SEC examiners about the fund’s operations.  Specifically, Thibeault told the SEC during an unannounced examination in December 2014 that the loans in the fund were issued to individual consumers, that the proceeds of the loans went to the individuals listed on the promissory notes or to their creditors, and that neither Thibeault nor Graduate Leverage ever made interest or principal payments on the loans.  In fact, Thibeault knew that none of those statements was true.

“The defendant’s alleged lies didn’t stop with investors, but continued even when regulators showed up on his doorstep to examine his books and records,” said United States Attorney Carmen M. Ortiz.  “Protecting investors and the integrity of the securities markets from this kind of criminal behavior is a top priority for federal law enforcement agencies and regulators.”

Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, said: “Mr. Thibeault allegedly used his position to steal over $15 million from honest and unsuspecting investors for his own personal piggy bank to prop up his business and personal lifestyle.  The FBI hopes this case will serve as a warning to others who are thinking about using their positions within the financial market for their own personal gain.  We’re not going to tolerate it.”

The charges of securities fraud, wire fraud and obstruction of justice provide for sentences no greater than 20 years in prison and three years of supervised release.  Securities fraud also carries a maximum fine of $5 million, and wire fraud carries a fine of $250,000 or twice the gross gain or loss from the scheme, whichever is greater.  The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, which term must be imposed consecutive to any underlying fraud sentence.  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 United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission in the course of investigating this case.  The case is being prosecuted by Assistant U.S. Attorneys Stephen E. Frank and Brian Perez-Daple of Ortiz’s Economic Crimes Unit.

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

BOSTON – Alberto Correa-Martinez, 26, of Springfield, pleaded guilty today to conspiracy to possess with intent to distribute and to distribute cocaine, distribution of heroin, and three counts of distribution of cocaine.  U.S. District Judge Timothy S. Hillman scheduled sentencing for June 17, 2015.

On July 23, 2013, Correa-Martinez sold heroin and cocaine to an undercover federal agent.  A week later, on July 31, 2013, Correa-Martinez sold cocaine to the same agent.  Then on August 6, 2013, Correa-Martinez, along with a co-conspirator, met the agent on Main Street in Springfield, just yards from the state courthouse, to sell him cocaine once again.  The drug purchases were captured on video.

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

United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & 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 Springfield man was sentenced today in U.S. District Court for conspiring to illegally possess a firearm and ammunition and for conspiring to distribute cocaine.

Kevin Sligar, 30, was sentenced by U.S. District Judge Timothy S. Hillman to 10 years in prison and ten years of supervised release.  In October 2014, Sligar pleaded guilty to conspiring to illegally possess a firearm and ammunition and conspiring to distribute cocaine.

From April 1, 2012 through July 21, 2012, Sligar operated a narcotics distribution operation in and around Springfield, with three co-conspirators in which they distributed at least 300 grams of cocaine and an indeterminate amount of marijuana.  In connection with the operation, Sligar and a co-conspirator jointly possessed a Hi-Point Model C9, 9mm pistol, even though both had previous convictions. 

During the night of July 21, 2012, Sligar and his co-conspirators were leaving the Polish Festival in Ludlow, Mass. in a Dodge Neon when they encountered another car occupied by three individuals.  While both cars were stopped at a traffic light, an argument broke out between the occupants and Sligar brandished the pistol.  Shortly thereafter, the other car drove away, and the occupants called 911.  The Neon attempted to escape the Springfield Police by driving fast, but ultimately crashed at an intersection, injuring Sligar and his three co-conspirators.  During the search of the Neon, the pistol, which was fully loaded with 9mm ammunition, was recovered.

In a related case, Sligar pleaded guilty to assault with a dangerous weapon in Hampden Superior Court.

United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Office; and Springfield Police Commissioner William John Barbieri, made the announcement today.  The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.

BOSTON – Joshua Marrero, 28, of Holyoke, Mass., was indicted in U.S. District Court in Springfield on being a convicted felon in possession of a firearm and ammunition and possessing a firearm with an obliterated serial number.

The indictment alleges that on April 19, 2014, Marrero possessed a Lorcin Model L 380 .380 caliber firearm with an obliterated serial number and seven rounds of .380 caliber ammunition.

For those who qualify as armed career criminals, under federal law, the charge of being a felon in possession of a firearm provides a mandatory minimum sentence of 15 years, and a maximum of a lifetime in prison, five years of supervised release, and a fine of $250,000.  The charge of possessing a firearm with an obliterated serial number provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Holyoke Police Chief James M. Neiswanger, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.

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

BOSTON – The owner of a Norwood roofing company pleaded guilty today to hiding thousands of dollars of his business income by intentionally filing false tax returns with the Internal Revenue Service.

Michael Olen, 60, pleaded guilty to making and subscribing a materially false tax return after being charged via an Information in January 2015.  U.S. District Court Senior Judge Rya W. Zobel scheduled sentencing for May 27, 2015.

Olen owned and operated O’Lyn Contractors, Inc., a roofing service based in Norwood, Mass.  O’Lyn’s customers generally paid for roofing services by check, and Olen used a local tax preparer to draft his business and personal tax returns based on business revenue for the year.  But in tax year 2008, Olen hid a substantial amount of his business income from his tax preparer by diverting customer payments to his personal accounts.  Consequently, the tax preparer unwittingly entered false figures for O’Lyn’s business income, and Olen’s personal income, on the relevant tax returns.  In 2008, Olen hid 97 payments in this manner, diverting 78 of them to his personal bank accounts and cashing 19 of them at a local check cashing service.  In total, Olen underreperted his 2008 income from O’Lyn by $207,567.  Moreover, Olen used the same method to hide income during tax years 2004 – 2007.  Over five years, Olen hid in total $1,184,927 from the Internal Revenue Service.

The charging statute provides a sentence of no greater than three years in prison, three years of supervised release, a fine of $100,000, paying for the cost of his prosecution, and paying restitution to the Internal Revenue Service for the cumulative tax losses.  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 Andrew E. Lelling of Ortiz’s Economic Crimes Unit.

BOSTON – A Lynn gang member was sentenced today to 10 years in prison for heroin trafficking.

Jairo Fernandez, 27, was sentenced by U.S. District Court Judge Denise J. Casper to ten years in prison and four years of supervised release.  In November 2014, Fernandez pleaded guilty to conspiracy to distribute heroin and distributing heroin.  At that hearing, Fernandez admitted responsibility for over 100 grams of heroin.

The case was part of Operation Whiplash, an investigation of several street gangs in and around Lynn and Revere.  Over the past two years, Operation Whiplash has resulted in federal and state charges against 47 leaders, members and associates of gangs, including Money Over Broken Bitches (MOBB), the Crips and Deuce Boyz in Lynn and the Bloods in Revere.  As part of the investigation, law enforcement identified Fernandez as a member of the Deuce Boyz gang.

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 Lynn Police Chief Kevin F. Coppinger, made the announcement.  Operation Whiplash was investigated by members of the FBI’s North Shore Gang Task Force, which includes members of the FBI; Massachusetts State Police; Essex County Sheriff’s Office; and Chelsea, Lynn and Revere Police Departments.  The case was prosecuted by Assistant U.S. Attorneys Timothy E. Moran and Peter K. Levitt of Ortiz’s Organized Crime and Gang Unit.

BOSTON – A Connecticut man was convicted today in U.S. District Court in Boston for traveling to Watertown in response to an advertisement on Craigslist in which a woman sought an adult male that might be interested in a relationship with her minor daughter.  The Craigslist advertisement was place by undercover Homeland Security Investigation agents.

Paul R. Hinkel, 57, of Chester, Conn. was convicted following a three-day jury trial for using the Internet to lure a minor to engage in sex.  U.S. District Court Judge William G. Young scheduled sentencing for May 5, 2015.  In March 2014, Hinkel was arrested and charged via criminal complaint.

In February 2014, undercover federal agents placed an advertisement on Craigslist posing as a mother purporting to seek an adult male interested in a sexual relationship with her daughter.  Hinkel responded to the advertisement, and was not deterred when it was revealed that the daughter was only 15-years-old.  Hinkel proceeded to engage in hundreds of emails with the undercover agents, detailing the sexual activities in which he would engage with the teen.  On March 19, 2014, Hinkel traveled from his home in Chester, Conn. to Watertown to meet and have sex with the fictional minor daughter.  He carried a bag to the door with him, which agents later discovered contained sexual paraphernalia, men’s cologne and a stuffed animal.  Hinkel was arrested by federal agents upon his arrival at the site in Watertown.

The charging statute provides a mandatory minimum sentence of 10 years and no greater than a lifetime 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 and Bruce Foucart, Special Agent in Charge of Homeland Security Investigation in Boston, made the announcement today.  Homeland Security Investigations, New Haven, Conn. Field Division; Customs & Border Protection, New York Air Unit; Watertown Police Department; and Massachusetts State Police also assisted with the investigation. The case was tried by Assistant U.S. Attorneys Eve A. Piemonte Stacey and Jordi de Llano of Ortiz’s Major Crimes Unit.

This case is brought as part of Project Safe Childhood.  In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse.  Led by the U.S. Attorneys’ Offices and the 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 – The facilities director of two non-profits which provide support services for developmentally disabled adults and their families was sentenced today in connection with soliciting bribes.

Charles Feeney, 60, of Billerica, was sentenced by U.S. Senior District Judge Mark L. Wolf to six months in prison, three years of supervised release, and ordered to pay $142,927 in restitution.  In May 2012, Feeney pleaded guilty to two counts of soliciting bribes.

Feeney was the facilities director for Community Alternative Residential Environments, Inc. (CARE) and Walnut Street Center (WSC), two Massachusetts based non-profits which provide support services for developmentally disabled adults and their families.   When CARE/WSC purchased a building which was to be renovated and turned into administrative offices and a day facility, it was Feeney’s job to solicit bids for the general contract and oversee the renovation process.  Instead, Feeney made an agreement with a general contractor he knew to get the contract and in exchange, Feeney would get the electrical subcontract for his business, C.T. Feeney & Sons Electrical Services.  In so doing, Feeney falsely assured both the then-executive director and the finance director of CARE/WSC that he had received three bids for the project when, in fact, there were no bids.

In 2006 and 2007, the renovations were done in two phases.  During the second phase, Feeney told the general contractor that he wanted a bucket truck for use in his own business and the two agreed that the contractor would pay for Feeney’s bucket truck in purported project rental fees to reimburse Feeney for the truck.  Feeney’s net benefit from the electrical subcontract was more than $139,000.  After Feeney’s role in the renovation was discovered, the non-profit also incurred more than $142,000 in attorney’s fees in the effort to determine whether the renovations had been properly performed and in assisting the government in the investigation of the offense.

United States Attorney Carmen M. Ortiz; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Glenn A. Cunha, Inspector General of the Commonwealth of Massachusetts made the announcement.  The case was prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.

BOSTON – Alexis Hidalgo and Jonathan DaSilva, the respective leaders of two Boston street gangs -- the Hendry Street Gang and the Woodward Avenue Gang -- pleaded guilty today to drug trafficking and firearm charges.

Hidalgo, 34, and DaSilva, 31, both of Boston, each pleaded guilty before U.S. District Court Judge Rya W. Zobel to conspiracy to distribute crack cocaine, cocaine, marijuana, and oxycodone, as well as firearm related charges.  In January 2013, Hidalgo and DaSilva were two of 29 defendants charged with drug trafficking and firearm charges arising out of Operation Concord, a joint investigation conducted by the Federal Bureau of Investigation, Boston Police Department, Massachusetts State Police, and Homeland Security Investigations that focused on gang violence and drug dealing in the Henry Street and Woodward Avenue areas of Boston.  During the course of Operation Concord, law enforcement officials seized approximately $400,000 in cash, guns, jewelry, gold and silver bars, and several luxury vehicles.

From August 2011 through January 2013, Hidalgo and DaSilva, the respective heads of the Hendry Street and Woodward Avenue gangs, ran a lucrative drug trafficking business distributing crack cocaine, cocaine, marijuana, and oxycodone which was in turn distributed in Boston, Brockton, and Maine.

Hidalgo and DaSilva operated their drug business out of two primary locations: a house at 37 Hendry Street in Boston and a house known as “the Trap” at 36 Woodward Avenue in Boston.  Customers seeking crack and marijuana would go to 37 Hendry Street to purchase drugs from gang members who stored the drugs and cooked cocaine into crack in the second floor apartment.  In August 2012, 37 Hendry Street was shut down by the City of Boston as a result of numerous neighborhood complaints of drug and gang activity.

“The Trap” at 36 Woodward Avenue, which was run by DaSilva, operated as a round-the-clock distribution center for crack, oxycodone, cocaine and marijuana.  When 37 Hendry Street was shut down, Hidalgo transferred his crack business to 36 Woodward Avenue.

Hidalgo and DaSilva used gang members to distribute and store drugs, drug proceeds, and to carry out gang-related missions.  For example, on Oct. 23, 2012, DaSilva directed gang member Patrick “Pistol” Gomes to obtain a firearm and go to Roxbury District Courthouse to assist a fellow gang member who was “trapped” by a rival gang member.  Gomes asked DaSilva if he had a “greenlight” to shoot if necessary and DaSilva gave Gomes the go-ahead.  Investigators had Gomes stopped in his rental car by the police outside of the Roxbury courthouse where officers seized a fully loaded Ruger P89 semiautomatic handgun from the glove box.  On Feb. 4, 2015, Gomes pleaded guilty to conspiracy to distribute cocaine base and marijuana and being a felon in possession of a firearm and ammunition. 

The charging statutes provide a sentence of no less than 10 years and up to a lifetime in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $10 million on the charge of conspiracy to distribute controlled substances; no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $10 million on the charges of distribution of controlled substances; no greater than 10 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $250,000 on the charge of being a felon in possession of a firearm.  Pursuant to their respective plea agreements with the government, and pending acceptance by the district court at sentencing, Hidalgo has agreed to a sentence of 144-168 months in prison and DaSilva has agreed to a sentence of 120-168 months in prison.  Both defendants also agreed to the forfeiture of cash, jewelry, and luxury vehicles.  

United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement.  The case was prosecuted by Assistant U.S. Attorney Emily Cummings of Ortiz’s Organized Crime and Gang Unit.

BOSTON – The leader of the Salem Chapter of the Hells Angels Motorcycle Club pleaded guilty today in U.S. District Court in Boston to criminal charges in connection with the assault and maiming of a former member of the Red Devils Motorcycle Club.

Sean Barr, 50, of Lynn, pleaded guilty before U.S. District Judge Nathaniel M. Gorton to conspiring to commit violent crimes in aid of racketeering, maiming in aid of racketeering, assault with a dangerous weapon in aid of racketeering, and assault resulting serious bodily injury in aid of racketeering.  On Feb. 5, 2015, three co-defendants, Marc Eliason, 37, of Lynn; Robert DeFronzo, 47, of Saugus; and Brian Weymouth, 42, of Danvers, pleaded guilty to similar charges.  Eliason and DeFronzo were members of the Salem Hells Angels and Weymouth was a member of the Red Devils.  The Red Devils Motorcycle Club is a support club of the Hells Angels.

Barr, Eliason, DeFronzo and Weymouth were involved in luring the victim, who was targeted for failing to follow orders issued by the Salem Hells Angels, and assaulting the victim.  The victim was targeted because he failed to assault a former member of the Salem Hells Angels, who had been “put out bad” from the Hells Angels.  At the Byfield clubhouse, the victim was surrounded by the defendants and beaten.  During the assault, Barr used a ballpeen hammer, a favored weapon of the Hells Angels, to maim the victim by breaking a number of bones in the victim’s hand.  Eliason and Weymouth then stole the victim’s motorcycle.

The charging statutes provide a sentence of no greater than three years in prison, one year of supervised release, and a $250,000 fine on the charge of conspiring to commit violent crimes in aid of racketeering; 30 years in prison, five years of supervised release, and a $250,000 fine on the charge of maiming in aid of racketeering; 20 years in prison, three years of supervised release, and a $250,000 fine on the charge of assault with a dangerous weapon in aid of racketeering; and 20 years in prison, three years of supervised release, and a $250,000 fine on the charge of assault resulting in serious bodily injury in aid of racketeering.  Pursuant to their respective plea agreements with the government, and pending acceptance by the district court at sentencing, Barr and Eliason have each agreed to sentences of 97 months in prison, and DeFronzo and Weymouth have each agreed to sentences of 57 months in prison.

United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of Federal Bureau of Investigation, Boston Field Division; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today.  The case was prosecuted by Assistant U.S. Attorneys Emily Cummings and Michael Crowley of Ortiz’s Organized Crime and Gang Unit.

BOSTON – A North Adams man was sentenced yesterday in U.S. District Court in Springfield for possession of material involving the sexual exploitation of a minor.

Wade Galli, 49, was sentenced by U.S. District Judge Mark G. Mastroianni to 50 months in prison and 10 years of supervised release.  He pleaded guilty in September 2014.

On May 29, 2013, law enforcement officers executed a search warrant at Galli’s residence and seized computer media containing numerous image and video files which included images of violent and sadomasochistic sexual assaults of young girls.  Galli admitted that he downloaded child pornography from the Internet.  He also created some videos by filming nude girls at the beach.  Galli said he did so “whenever I had time” and filmed girls as young as 13 at beaches in Pittsfield, Mass. and Vermont.  

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 was investigated with the assistance of the Massachusetts State Police and the North Adams Police Department.  It is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.

BOSTON – A former Cape Cod man who was residing in Missouri under an alias was sentenced yesterday for failing to register with law enforcement authorities as a sex offender.

David W. Lacouture, 52, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 78 months in prison and seven years of supervised release.  In November 2014, Lacouture pleaded guilty to a one-count Indictment charging him with failing to register as a sex offender.

In September 2010, Lacouture was convicted in Barnstable County of indecent assault and battery on a child.  As a result of that conviction, Lacouture was required to register as a Level 3 sex offender.  At some point, Lacouture relocated to Florida and then Missouri where he failed to notify law enforcement authorities in Massachusetts, Florida, and Missouri.  Notifications to law enforcement authorities are required so that sex offenders can be properly monitored, and so communities can have information about sex offenders living, working, or going to school in their neighborhoods.  In April 2013, he was arrested under an alias on new state charges and returned to Massachusetts.

Lacouture’s previous criminal convictions include indecent exposure to an 11-year-old girl and a federal conviction for conspiracy to possess a firearm by a felon involving a Chinese SKS assault rifle.  Furthermore, by his own admission, Lacouture was previously a member of the Aryan Nation.

 United States Attorney Carmen M. Ortiz and John Gibbons, United States Marshal for District of Massachusetts, made the announcement.  The case was prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.