District of Massachusetts
Press releases recorded for this federal judicial district.
Westfield Man Pleads Guilty to Child Pornography ChargeRead the Press Release
BOSTON - A Westfield man pleaded guilty yesterday in U.S. District Court in Springfield to child pornography charges.
In March 2013, Gardner Whitney, 62, was indicted on possessing child pornography. Sentencing is scheduled for June 16, 2014. If the court accepts the plea agreement, Whitney will be sentenced to 10 years in prison.
In December 2012, Whitney possessed child pornography on a laptop computer and on a flash drive which included one video he produced himself which depicted him and a minor female.
United States Attorney Carmen M. Ortiz; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Chief John Camerota of the Westfield Police Department, made the announcement. The case is being prosecuted by Alex J. Grant of Ortiz’s Springfield Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Three Holyoke Residents Plead Guilty to Oxycodone ConspiracyRead the Press Release
BOSTON - Two Holyoke residents were convicted yesterday in U.S. District Court in Springfield for their role in distributing oxycodone pills shipped from Florida.
Angel Luis Medina, 31, Luz Eneida Morales, 46, and Doel Vega, 24, pleaded guilty before U.S. District Judge Douglas P. Woodlock to conspiring to possess with intent to distribute oxycodone. Judge Woodlock scheduled sentencing for June 27, 2014. On Feb. 25, 2014, a third Holyoke resident was convicted as part of the same conspiracy.Between January 2009 and April 11, 2013, the defendants were part of a conspiracy to distribute oxycodone pills which they received in large quantities from Florida via Express Mail. The pills were then sold in western Massachusetts and the drug proceeds were deposited in branches of national banks in Holyoke. Co-conspirators in Florida were able to withdraw these drug proceeds from branches of the national banks.
The defendants face up to 20 years in prison, three years of supervised release, and a $1 million fine.United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kevin O’Regan of Ortiz’s Springfield Office.
Watertown Councilman and Ex-Wife Sentenced for Marijuana Distribution and Money LaunderingRead the Press Release
BOSTON – A former Watertown Town Councilman and his ex-wife were sentenced yesterday for their roles in marijuana-trafficking and money-laundering conspiracies involving hundreds of kilograms of marijuana and millions of dollars of drug proceeds.
Thomas Gus Bailey, 52, was sentenced by U.S. District Court Judge Rya W. Zobel to 84 months in prison and three years of supervised release. Barbara Waldman, 49, was sentenced by Judge Zobel to six months in prison and three years of supervised release. In November 2013, Bailey pleaded guilty to conspiracy to manufacture and distribute marijuana, distribution of marijuana, and conspiracy to commit money laundering. Waldman pleaded guilty to conspiracy to commit money laundering.
In October 2011, a federal investigation was initiated into the history and scope of Bailey’s criminal operation when law enforcement found and seized more than 1,000 marijuana plants in the former councilman’s warehouse in Waltham. The investigation revealed that from at least 2001 through October 2011, Bailey ran a marijuana cultivation and distribution business which overlapped with the time he served on Watertown’s Town Council (January 2002 to December 2005). Over this 10-year period, Bailey gradually expanded his lucrative marijuana business by moving his operation to successively larger indoor grow locations and hiring more workers to trim his marijuana plants and prepare the marijuana for sale. Further, beginning in at least 2006, he orchestrated a money laundering scheme where he and his co-conspirators, including his ex-wife, as well as his former mistress, laundered more than $1 million in drug proceeds. At Bailey’s direction, his co-conspirators made hundreds of separate cash deposits in amounts of $5,000 or less into their bank accounts, and then provided checks to Bailey in furtherance of his marijuana operation. Waldman was responsible for laundering at least $900,000 as part of this scheme. All of Bailey and Waldman’s co-defendants have also been convicted and sentenced in this case.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Chief Keith MacPherson of the Waltham Police Department, made the announcement. The Suburban Middlesex County Drug Task Force also provided assistance to the investigation. The case is being prosecuted by Young Paik of Ortiz’s Drug Task Force Unit.
Two West Springfield Men Sentenced for Lacey Act CrimesRead the Press Release
BOSTON - Two West Springfield, Mass. men were sentenced today in U.S. District Court in Springfield for dealing in live bait fish without the required state permits and health certifications.
Paul Zombik, 49, was sentenced by U.S. District Court Judge Michael A. Ponsor to one year and one day in prison, two years of supervised release, and to pay a $50,000 fine to the Lacey Act Reward Fund. Michael Zombik, 70, was sentenced by Judge Ponsor to six months in prison, two years of supervised release, to pay a $50,000 fine to the Lacey Act Reward Fund. In November 2012, the Zombiks pleaded guilty to three counts of violating the federal Lacey Act by importing into Massachusetts and exporting from Massachusetts live fish without obtaining the required permits.
Between October 1, 2005, and February 25, 2009, Paul Zombik and his father, Michael Zombik, ran Michael's Wholesale Bait (MWB) in West Springfield. During that time, WMB purchased and sold in interstate commerce millions of dollars of live bait fish. Almost all of those transactions were without the necessary Massachusetts state permits and required health certifications. The Zombiks' failure to follow state regulations increased the likelihood that invasive diseases and organisms would be introduced into Massachusetts' waters and ecosystem.
United States Attorney Carmen M. Ortiz; Honora Gordon, Special Agent in Charge of the U.S. Fish and Wildlife Service, Northeast Region; and Wayne F. MacCallum, Director of the Massachusetts Division of Fisheries and Wildlife, made the announcement today. The case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement; the Massachusetts Division of Fisheries and Wildlife; the Massachusetts Executive Office of Environmental Affairs; the Massachusetts Environmental Police; and the New York State Department of Environmental Conservation, Bureau of Environmental Crimes Investigation. The case was prosecuted by Kevin O'Regan of Ortiz’s Springfield Office.
Medway Man Convicted of Fraud and Collecting Section 8 Housing FundsRead the Press Release
BOSTON – A Dominican national living in Medway was convicted yesterday of fraudulently receiving more than $120,000 in federal housing funds.
Samuel Stalin Lebreault Feliz, a/k/a Antonio Jose Rodriguez Rodriguez, was convicted following a four-day jury trial of two counts of passport fraud, false representations to the Social Security Administration, and theft of public money. U.S. District Judge Denise J. Casper scheduled sentencing for May 29, 2014.
In November 2003, Feliz submitted an application for a U.S. passport at the U.S. Embassy in Caracas, Venezuela, representing himself to be Juan Antonio Castro Pizarro, an individual born in San Juan, Puerto Rico and, therefore, a U.S. citizen. Feliz claimed that he had lost his travel documents while traveling abroad and wanted to return to Massachusetts where he lived. Feliz succeeded in deceiving embassy officials and was issued a passport in the name of Juan Antonio Castro Pizarro.
After arriving at Miami International Airport, Feliz attempted to use the issued passport and was held for further questioning during which Feliz claimed that he was not Juan Antonio Castro Pizarro, but rather Antonio Jose Rodriguez Rodriguez, a Venezuelan citizen seeking political asylum. Feliz’s application for political asylum was eventually denied, but he was not deported from the United States at that time because while his application was pending he married a U.S. citizen. He later claimed to be the victim of abuse by his wife, and petitioned the government under a special program for victims of domestic violence to be able to stay in the United States.
From March 2007 through September 2013, Feliz, using the false name of Antonio Jose Rodriguez Rodriguez, applied for and received over $120,000 in funds from the U.S. Department of Housing and Urban Development’s Section 8 program. The Section 8 program is a federal program that provides rent and utility money to low income lawful residents.A subsequent investigation revealed that Feliz assumed the identity of the true Juan Antonio Castro Pizarro and later concocted the identity of Antonio Jose Rodriguez Rodriguez from Venezuela. Feliz’s true identity is Samuel Stalin Lebreault Feliz, a citizen of the Dominican Republic with no legal status in the United States.
The statutory maximum penalty for passport fraud and theft of public money, respectively, is 10 years in prison, three years of supervised release and a fine of up to $250,000 on each count. The statutory maximum penalty for making a false representation to the Social Security Administration is five years in prison, three years of supervised release and a fine of up to $250,000.
United States Attorney Carmen M. Ortiz; David W. Hall, Special Agent in Charge of the U.S. Bureau of Diplomatic Security, Boston Field Office; Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Office; 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. The case is being prosecuted by Assistant U.S. Attorneys Carlos A. López and David G. Tobin of Ortiz’s Major Crimes Unit.
Former Needham Investment Adviser Indicted on Fraud ChargesRead the Press Release
BOSTON - A former Merrill Lynch and Smith Barney investment adviser was indicted yesterday in connection with a nearly two-decade scheme to drain clients’ accounts.
Jane E. O'Brien, 61, of Needham, was charged in an eight-count indictment with mail fraud, wire fraud and investment adviser fraud. The indictment charges that between 1995 and 2013, O’Brien defrauded several clients for whom she provided investment advisory services. As part of the scheme, O’Brien misappropriated funds entrusted to her through a variety of means, including persuading clients to withdraw money from their bank and brokerage accounts and give the money to her personally to invest on their behalf. After gaining control of her clients’ money, however, O’Brien made no such investments. Instead, she used the misappropriated client funds for a variety of improper purposes, including paying personal expenses, and paying purported investment returns or repaying personal loans to other clients. Finally, in order both to perpetuate her fraud and conceal it from her clients, O’Brien made false statements and misrepresentations to clients, including making lulling payments to clients and otherwise providing them with false assurances of their financial security.
With respect to one client, the indictment charges that O’Brien caused the client first to empty her Smith Barney brokerage account and give the proceeds to O’Brien, and then to borrow an additional $1 million on her home and give much of that money to O’Brien to invest. With respect to a second client, the indictment charges that O’Brien caused the client to empty her Merrill Lynch brokerage account and give the proceeds to O’Brien to invest in a Hollywood movie called "Crooked Arrows." With respect to a third client, the indictment alleges that O’Brien caused the client to withdraw $190,000 from her bank account and give the proceeds to O’Brien to invest. The indictment alleges that O’Brien made none of the investments she promised.
In December 2012, O’Brien was convicted in a separate matter of securities fraud after pleading guilty to a scheme to defraud yet another client of $240,000 by selling her a security that did not, in fact, exist. In May 2013, U.S. District Judge Nathaniel M. Gorton sentenced O’Brien to 33 months in prison. She is currently serving that sentence.
If convicted of the pending charges, O'Brien faces up to 20 years in prison on each count of mail and wire fraud, a fine of $250,000 or twice the gross gain or loss. If convicted of investment advisor fraud, she faces up to 5 years in prison and a $10,000 fine.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Stephen E. Frank 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.
Fifth Defendant Sentenced in Interstate Stolen Medical Supply SchemeRead the Press Release
BOSTON – A former employee of an Atlanta-based hospital was sentenced yesterday for conspiring to sell stolen medical supplies valued at more than $1.7 million.
Felicia Duggan, 41, of Georgia, was sentenced by U.S. District Judge Mark L. Wolf to 36 months of probation, with six of those months to be served in home confinement, $1,714,350 in restitution to the hospital, and $33,887 in restitution to the IRS. In August 2013, Duggan pleaded guilty to conspiracy to commit interstate transportation of stolen property and two counts of subscribing false tax returns. Over a two-year period, Duggan stole numerous medical supplies and devices from an Atlanta-based hospital where she was formerly employed. Beginning in March 2008, Duggan conspired with others, including a Boston-based medical supply thief, Corey Gatlin, to sell those stolen medical supplies on the black market.
Duggan was the fifth and final defendant to be sentenced in an investigation into the lucrative black market for stolen medical supplies and devices.
Gatlin, 37, of Georgia, was sentenced in March 2012 by U.S. District Judge William G. Young to 51 months in prison, 12 months supervised release, $3,226,715 in restitution to the three victim hospitals. Gatlin pleaded guilty to a three-count Information charging him with conspiracy and two counts of subscribing false tax returns. In 2004, Gatlin began stealing medical supplies from a hospital in Boston and selling them on the black market. In 2005, he moved to Atlanta and continued to steal, and recruit other employees to steal for him, medical supplies from two victim hospitals in Atlanta. Over the course of six years, Gatlin sold a total of more than $3.2 million in medical supplies that he and others had stolen from the three Boston and Atlanta-based hospitals.David Kelly, 54, of Florida, was sentenced in January 2014 by Judge Wolf to 12 months and 1 day in prison, 36 months of supervised release, $191,285 in restitution to the Boston-based victim hospital, and a $4,000 fine. Kelly pleaded guilty to a one-count Information charging him with sale or receipt of stolen goods. Kelly purchased stolen medical supplies from several individuals, including another defendant, Eric Jones, over a period of five years, worth a total of at least $191,285.
Eric Jones, 42, of Quincy, was sentenced in April 2011 by Judge Young to 12 months and 1 day in prison, 36 months of supervised release, and $1,130,669 in restitution to the Boston-based victim hospital. Jones pleaded guilty to a one-count Information charging him with interstate transportation of stolen property. Jones, a former Boston hospital worker who later became an operator for the Massachusetts Bay Transportation Authority (MBTA), stole, over a period of four years, numerous medical supplies from a supply room at the his former employer. Jones often stole the supplies from the hospital while on a break from his job at the MBTA and while wearing his MBTA uniform. Jones stole over $1.13 million worth of medical supplies from the hospital, which he sold to various individuals, including Kelly.
Tristen Slavin, 33, of Norwood, was sentenced in February 2011 by U.S. District Judge Richard G. Stearns to three years of probation and $238,029 in restitution to a victim hospital based in a suburb of Boston. Slavin pleaded guilty to a one-count Information charging her with interstate transportation of stolen property. Over a period of approximately three years, Slavin stole medical supplies worth at least $238,029 from her then hospital employer, and sold them on the black market.
United States Attorney Carmen M. Ortiz; Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Shelly Binkowski, Acting Inspector in Charge of the U.S. Postal Inspection Service; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. The cases were prosecuted by Assistant U.S. Attorneys Amanda P.M. Strachan and Jim Arnold of Ortiz’s Health Care Fraud Unit.
FBI Undercover Operation Nets Seven Defendants in Securities Kickback SchemeRead the Press Release
BOSTON – Federal charges have been filed in U.S. District Court in Boston against seven individuals alleged to have been involved in a microcap stock kickback scheme.
According to the charges, the schemes involved secret kickbacks to an investment fund representative in exchange for having the investment fund buy stock in certain companies. The kickbacks were to be concealed through the use of sham consulting agreements. What the defendants did not know was that the purported investment fund representative was actually an undercover government agent.The charges follow a lengthy investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies per share. Fraud in the microcap stock market is of increasing concern to regulators as such markets tend to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the U.S. Securities and Exchange Commission.
U.S. Attorney Carmen Ortiz stated that, “Secret deals like the ones alleged today harm hard working Americans who invest their savings in the financial markets. Illegal kickbacks undermine fair competition, and ultimately destabilize financial markets. For the sake of the investing public, it is critical to protect the integrity of the financial markets and promote fair play by combatting the types of illegal agreements alleged in these cases.”
“Market manipulators should know that our law enforcement team has a proven track record of high-returns in rooting out fund representatives, CEOs, traders, fund managers, equities analysts, lawyers and publicists who illegally tilt the playing field against honest investors,” said Vincent B. Lisi, Special Agent in Charge of the Federal Bureau Investigation’s Boston Division. “The FBI's undercover investigation of the illegal manipulation of microcap stocks has resulted in the conviction of 15 people to date and those who believe they can get away with manipulating the markets should be running scared.”
The following individuals have been charged:
Shmuel Shneibalg, 43, formerly of Brooklyn, N.Y. (President and Chief Operating Officer of Safetek International, Inc.), charged with mail fraud and wire fraud;
Gerard Haryman, 70, of Lake Worth, Fla. (consultant for, and investor in, A Clean Slate, Inc.), charged with mail fraud and wire fraud;
Ronald Lawrence Schuman, 58, of Palm City, Fla. (President and Chief Executive Officer of Connectyx Technologies Corp.), charged with conspiracy to commit wire fraud;
Barry Hawk, 45, of Woodmere, N.Y. (President and Chief Executive Officer of Arctic Enterprises, Inc. and Strategic Rare Earth Metals, Inc.), charged with wire fraud;
Hadi Aboukhater, 42, of Haymarket, Va. (in the business of finding funding for public companies), charged with wire fraud;
Sandip Shah, 40, of Chino, Calif. (stock promoter), charged with wire fraud; and
Shailesh Shah, 47, of Chino, Calif. (President and Chief Executive Officer of SOHM, Inc. and Costas, Inc.), charged with mail fraud and wire fraud.
If convicted, the defendants each face up to 20 years in prison to be followed by three years of supervised release and a $250,000 fine on each count. The initial appearances in U.S. District Court in Boston have not yet been scheduled.
U.S. Attorney Ortiz and FBI Special Agent in Charge Lisi made the announcement today. U.S. Attorney Ortiz expressed appreciation for the significant assistance her office received from the U.S. Securities and Exchange Commission. The criminal cases are being prosecuted by Assistant U.S. Attorneys Sarah E. Walters, Ryan M. DiSantis, and Mark Balthazard of Ortiz’s Economic Crimes Unit, and Trial Attorney Alexander H. Berlin of the U.S. Department of Justice.
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.
Connecticut Man Sentenced in Connection with Tax Free Property Exchange BusinessRead the Press Release
BOSTON – A Connecticut man who victimized exchangors in Massachusetts was sentenced yesterday for his role in a mail and wire fraud scheme involving a tax free property exchange business.
Daniel E. Carpenter, 59, of Simsbury, Conn., was sentenced by U.S. District Court Judge George A. O’Toole to 36 months in prison, three years of supervised release and a $100,000 fine. In June 2008, Carpenter was convicted of 19 counts of mail and wire fraud following a 13-day jury trial.
Carpenter was charged with mail and wire fraud in connection with his handling of money entrusted to him by clients who engaged in tax-deferred real estate exchange transactions from August to December 2000. Under the relevant federal tax code provision, sellers of investment real estate were permitted to defer capital gains taxes on sale proceeds, provided they purchased a like property within six months and did not take possession of the sale proceeds during the interim. Carpenter owned a company, Benistar, which acted as an intermediary for these exchanges, holding clients’ money pursuant to escrow agreements until they purchased a replacement property. Carpenter, through Benistar, marketed his services as a qualified intermediary using materially false and misleading statements in marketing materials and contracts. The documents omitted critical information about Carpenter’s risky investment strategy, while at the same time emphasizing the importance of the safety and security of the funds and representing that Benistar would “invest” the exchangors’ money in low-yield “escrow” accounts for the exchangors’ benefit at established financial institutions. Carpenter obtained millions of dollars from clients engaged in these property exchanges and, without telling them, used their money to trade in high-risk stock options in an attempt to earn substantial profits for himself and Benistar, even as the exchangors’ earnings were capped at the modest rates of return reflected in the agreements.Carpenter’s high-risk strategy was unsuccessful, and he lost over $9 million of the exchangors’ money. As Carpenter’s options trading losses mounted, Benistar’s available funds fell millions of dollars short of the sums needed to repay clients as they redeemed their escrow funds. Carpenter’s actual use of the escrow funds came to light when clients who needed to complete their property exchanges discovered their money was gone.
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 was prosecuted by First Assistant United States Attorney Jack W. Pirozzolo.
Peabody Man Sentenced to Seven Years for Heading Identity Theft RingRead the Press Release
BOSTON – A Peabody man was sentenced today for heading an identity theft ring that used the identities of a Florida company’s employees to cause $375,000 in credit card losses at large retail stores.
William Dodge, 46, was sentenced by U.S. District Court Judge Joseph L. Tauro to seven years in prison, three years of supervised release, $375,000 in restitution, and forfeiture of criminal proceeds. In May 2012, Dodge pleaded guilty to credit card fraud, conspiracy to commit credit card fraud and aggravated identity theft.
When Dodge was in Florida, he met the benefits administrator for a Florida-based company and obtained from her lists of coworkers' identity information, such as their names, dates of birth and Social Security numbers. Dodge traveled to Boston where he and at least five co-conspirators obtained false identity cards bearing Dodge’s or the co-conspirators’ pictures and the Florida company employees’ personal information. The false identity cards looked like Massachusetts drivers’ licenses and allowed the co-conspirators to pose as the employees from the Florida company.
With the false identity cards, Dodge and the co-conspirators posed as the Florida company’s employees at large chain retail stores. When it came time to pay for the merchandise, Dodge and his co-conspirators lacked a working credit card number. So they pretended to have left their store credit card at home and asked the store to remind them of the number. The stores, taken in by the false identity cards, often complied. If the identity victim had no credit account at the store, Dodge and his co-conspirators applied for a new credit account in the identity victim’s name. Again, the stores, taken in by the false identity cards, often complied. Upon obtaining a new or existing credit card number, Dodge and his co-conspirators used the account to purchase gift cards and other merchandise, such as electronics, that they could resell. The stores lost money, because Dodge and the co-conspirators did not pay the credit bills.
As the group’s ringleader, Dodge directed his co-conspirators’ actions and took about 50% of their profits. The conspiracy netted over $375,000 in merchandise and services, with Dodge personally responsible by posing as an identity theft victim for over $212,000 of the losses.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William B. Evans made the announcement today. The U.S. Attorney’s Office thanks the Florida company for cooperating during the investigation. The case was prosecuted by Assistant U.S. Attorney Scott L. Garland, formerly of Ortiz’s Cybercrime Unit and currently of the National Security and Anti-terrorism Unit.
Multi-Agency Team Plans Events in Boston During National Youth Violence Prevention WeekRead the Press Release
BOSTON - In an effort to give school-aged youth a voice in preventing violence in the community, a series of events will take place throughout the City of Boston during National Youth Violence Prevention Week, April 7-11, 2014. A highlight will be an anti-violence, hip-hop video contest, featuring videos submitted by Boston youth. The winners of the contest will be announced on April 10, at the Reggie Lewis Track & Athletic Center in Roxbury.
A coalition consisting of representatives from the Boston Police Department, Suffolk County District Attorney’s Office, Boston Centers for Youth and Families, Suffolk County Sheriff’s Department and the United States Attorney’s Office has developed several contests to encourage creativity and inclusiveness in the process of creating peace in the City’s neighborhoods. The theme of this year’s National Youth Violence Prevention Week activities is, “Youth Standing STRONG Against Violence.”
“It is extremely important for young people to get reinforcement that they’re a vital part of the community, that they have real power to prevent violence, and that there are people who care a great deal about their futures. That’s the message these events are designed to deliver,” said United States Attorney Carmen M. Ortiz.
“Engaging with our youth is a key piece of a comprehensive approach to addressing violence,” said Boston Mayor Martin J. Walsh. “We need to get kids invested in their communities and we need to show them that we are equally invested in them and in their neighborhoods. We can’t arrest our way out of this problem. We need to go further and start earlier, getting at the root causes of violence, including supporting our kids.”
“When it comes to preventing violence, Boston's youth are our most powerful allies. These events aren't just engaging kids and teens in contests and creative pursuits: they're empowering young people at every level to make the world around them a better, safer place for all of us,” said Suffolk County District Attorney Daniel F. Conley.
"The Boston Police Department is thrilled to be partnering with so many agencies on violence prevention week. Together we are engaging youth from kindergarten through high school in creative ways to stand up and speak out about the violence that is impacting their communities. I'm really looking forward to seeing and hearing how they will express themselves on this critically important issue. Preventing and reducing youth violence is my top priority -- I encourage young people to take advantage of these contest opportunities to make your voices heard," said Police Commissioner William B. Evans.
"Violence prevention and youth outreach have been two of the cornerstones of my administration and I am proud to be part of activities like this, which can help young people to not only steer clear of our facilities, but realize their talent and potential to be successful," said
Suffolk County Sheriff Steven W. Tompkins."If we are going to eradicate violence in the world, then we must involve youth on many levels. This week's events are opportunities to engage the collective youth voice in promoting peace,” said Christopher Byner, Interim Executive Director for Boston Centers for Youth & Families.
Children in grades K-5 in all Boston schools are invited to enter a poster contest, designing their own poster with an anti-violence theme. Prizes for the top three winners will include Target gift cards and a plaque presented at an assembly at their schools. The first-place winner will also be treated to “Lunch with a VIP.”
Middle school students are encouraged to write a poem reflecting the “Youth Standing STRONG Against Violence” message. Prizes for the top three winners will include Target gift cards and a plaque presented at an assembly at their schools. The first-place winner will also be treated to “Lunch with a VIP.”
High school students can submit an anti-violence hip-hop video up to three minutes long, with the top three winners to be announced on April 10, at an event being held at the Reggie Lewis Track & Athletic Center from 4:00 to 6:00 p.m. First, second and third-place winners will receive Target gift cards. The Grand Prize will also include four Red Sox tickets as well as their song and video being spotlighted in a special segment on JAM’N 94.5’s “Launch Pad” as well as the station’s blog and social media. The second prize includes four Red Sox tickets.
All entries must be received no later than March 14, 2014. Winners will be announced by April 3, 2014.
For contest rules, entry forms and more information, visit www.cityofboston/bcyf or send an email to [email protected].
Massachusetts Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
BOSTON - A former Jamaica Plain man pleaded guilty in federal court today to Failure to Register as a Sex Offender.
Gary Dixon, 49, pleaded guilty to a one count indictment before United States District Judge Nathaniel M. Gorton. Dixon was indicted in August 2013 after his arrest in Maine. Sentencing is scheduled for June 4, 2014.
Dixon was previously convicted in Massachusetts state courts for Indecent Assault and Battery on a Child in 1988 and 1993, and for Open and Gross Lewd and Lascivious Behavior in 2003. As a registered sex offender, Dixon was required to promptly inform Massachusetts law enforcement authorities of any change in his residence or employment, as well as to appear in person, within three days, to the law enforcement authorities in any state to which he changed his residence. Dixon moved from his registered address in Jamaica Plain in the summer of 2012 without informing Massachusetts authorities. Beginning at least as early as January 2013, he primarily resided in Brunswick, Maine, without informing either Massachusetts or Maine law enforcement authorities. Dixon was attempting to start a landscaping business in Maine. He was arrested in Brunswick on July 19, 2013.
United States Attorney Carmen M. Ortiz and United States Marshal John Gibbons made the announcement today. The case is being prosecuted by Victor A. Wild of Ortiz’s Economic Crimes Unit.
Boston Man Sentenced to 70 Months in Prison for Wire Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A Boston man was sentenced late yesterday for his role in a wire fraud and identity theft scheme.
Jean Exume, 32, of Dorchester, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 70 months in prison to be followed by three years of supervised release. On August 5, 2013, Exume was convicted of 22 counts of wire fraud and three counts of aggravated identity theft following a six-day jury trial.
From December 2009 through October 2011, Exume was an active participant in a scheme in which he used fraudulently obtained Bank of America bank cards that belonged to Bank of America customers primarily living in the Greater Boston area to purchase postal money orders. Exume often utilized fraudulent Florida driver’s licenses in the names of several of these customers in connection with the purchases. In addition, Exume used the Bank of America cards to withdraw funds directly from the customers’ accounts. The overall loss associated with Exume’s scheme was over $500,000.
United States Attorney Carmen M. Ortiz, Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, and Boston Police Commissioner William B. Evans made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Vassili Thomadakis of Ortiz’s Economic Crimes Unit and Amy Harman Burkart of Ortiz’s Cybercrime Unit.
Florida Man to Serve 13 Months for Defrauding Thousands of Homeowners in $4 Million Home Loan Modification ScamRead the Press Release
BOSTON – A Florida man was sentenced today to serve 13 months in prison for defrauding thousands of homeowners in a $4 million nationwide home loan modification scheme.
United States Attorney Carmen M. Ortiz, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Christy Romero made the announcement.
Vernell Burris Jr., 54, of Coconut Creek, Fla., was sentenced by U.S. District Court Judge Rya W. Zobel and ordered to serve two years of supervised release following his prison term. Two co-defendants, Christopher S. Godfrey, 44, of Delray Beach, Fla., and Dennis Fischer, 42, of Highland Beach, Fla., were each sentenced on Feb. 20, 2014, to serve 84 months in prison and three years of supervised release following their prison term.
On Nov. 28, 2012, Burris pleaded guilty, to conspiracy and nine counts of wire fraud.
Burris worked for Godfrey and Fischer, initially as a salesman and later as the sales manager. From January 2009 through May 2011, Burris, along with Godfrey, Fischer and others, operating under the name Home Owners Protection Economics Inc. (HOPE), made a series of misrepresentations to induce struggling homeowners to pay HOPE $400 to $2,000 in up-front fees in exchange for HOPE’s help obtaining federally-funded home loan modifications. The scheme generated over $4 million in revenues.
The conspirators misrepresented that, with HOPE’s assistance, the homeowner was guaranteed to receive a loan modification under the Home Affordable Modification Program (HAMP), which is part of the Troubled Asset Relief Program (TARP) and is a federally-funded, mortgage-assistance program. For example, the defendants routinely claimed that the homeowner had already been approved for a loan modification, provided phony “approval codes,” quoted new (and wholly fictitious) mortgage terms and due dates, touted their 98 percent past success rate and claimed that they were “underwriters” or were otherwise affiliated with the homeowners’ mortgage companies. HOPE also claimed that it would offer homeowners refunds in the unlikely event that they did not receive a loan modification.
In exchange for the up-front fees, HOPE sent its customers, including homeowners in Massachusetts, a do-it-yourself application package, which was virtually identical to the application that the government provides free of charge. The HOPE customers had no advantage in the application process, and, in fact, most of their applications were denied. Through these misrepresentations, HOPE was able to persuade thousands of homeowners to pay more than $4 million in fees.
The remaining defendant in the case, Brian Kelly, has pleaded guilty and is awaiting sentencing.The case was investigated by SIGTARP, and is being prosecuted by Assistant U.S. Attorney Adam Bookbinder of Ortiz’s Computer Crimes Unit and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section.
Concord Doctor Pleads Guilty for Role in $27 Million Home Health Care ScamRead the Press Release
BOSTON - The former medical director of a Waltham-based home health agency pleaded guilty today for his role in a home health fraud scheme which cost Medicare over $27 million.
Dr. Spencer Wilking, 65, of Concord, pleaded guilty today before U.S. District Judge Joseph L. Tauro to health care fraud. Sentencing is scheduled for May 20, 2014. The statutory maximum penalty for the crime is 10 years in prison, three years of supervised release, a fine of $250,000 or twice the gross loss to the Medicare program or twice the gross gain to Wilking (whichever is greater), restitution to Medicare, forfeiture of any proceeds of the offense, and exclusion from the Medicare program.
From at least April 2011 through March 2012, Wilking was employed as the Medical Director for MJG Management Company, d/b/a At Home VNA (AHVNA), a home health agency located in Waltham. During this period, Wilking signed certifications and recertifications to provide AHVNA home health services to hundreds of Medicare beneficiaries who did not qualify for services under the Medicare program. To qualify for home health services under the Medicare program, the beneficiary had to be: (1) confined to his/her home, (2) in need of skilled nursing services, physical therapy, or speech therapy on an intermittent basis or occupational therapy on a continuing basis, and (3) under the care of the physician who established the plan of care for home health services.
Prior to initially certifying eligibility, Wilking had to document that he, or another qualified health care provider, had a “face-to-face encounter” with the beneficiary, which showed that the patient was homebound and in need of home health services. Despite these legal requirements, Wilking certified hundreds of Medicare beneficiaries for home health services by AHVNA, without conducting a “face-to-face encounter” with the beneficiary, the vast majority of whom were not referred to AHVNA by their primary care physician or another physician who had examined the patient. Instead, Wilking typically certified services after spending a minimal amount of time reviewing patient assessment forms that were prepared by AHVNA nurses and/or participating in brief discussions about the patients with the nurses and/or AHVNA’s Clinical Director, Janice Troisi. Had Wilking reviewed the patient files, he would have discovered that many of the files contained information demonstrating that many of the patients were not homebound because, for example, they worked, took vacations, and spent substantial time outside the home. The patient files also contained information demonstrating that many patients had not requested home health services and/or were not provided with skilled nursing services.
Wilking’s certifications and recertifications allowed AHVNA to bill Medicare Part A for payment for these home health services. In addition, Wilking, billed Medicare Part B for both the certifications and subsequent recertifications. During the relevant time period, Medicare paid AHVNA over $1 million for the services certified by Wilking where the patients had not had the required face to face encounter with a physician. In addition, during the same period, Medicare paid nearly $30,000 to Wilking for certifying and recertifying the patients. Finally, between April 2011 and April 2012, AHVNA paid Wilking approximately $42,000 to serve as the company’s medical director.
In September 2013, the owner of AHVNA Michael Galatis, 62, of Natick and the Clinical Director, Janice Troisi, 64, of Revere, were charged with conspiracy to commit health care fraud and 11 counts of health care fraud. Galatis was also charged with seven counts of money laundering. According to the indictment, between 2007 and 2012, Galatis and Troisi conspired to fraudulently induce the Medicare program to pay for home health care services that, by and large, the Medicare beneficiaries did not need nor want. They trained AHVNA nurses to recruit Medicare beneficiaries who lived in residential facilities for senior citizens by asking if they were insured by Medicare, and if so, if they would like to have a nurse visit them in their home. The indictment also alleges that they trained the nurses to manipulate the patients’ initial assessments to make it appear as though the patients qualified for home health services pursuant to Medicare’s guidelines, when that was often not the case. The home health certifications and plans of care were then signed by Wilking, who certified that the patients were homebound and in need of skilled services, when, in fact, the overwhelming majority of AHVNA’s patients were not homebound and did not need home health services. During the course of the conspiracy, AHVNA submitted more than $27 million in false and fraudulent claims to Medicare, and Medicare paid AHVNA more than $20 million.
Both Galatis and Troisi have entered not guilty pleas. If convicted, they each face up to 10 years in prison, three years of supervised release, a $250,000 fine or twice the gross loss to the Medicare program or twice the gross gain to the defendant (whichever is greater), restitution to Medicare, forfeiture of any proceeds of the offenses, and exclusion from the Medicare program.
The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Carmen M. Ortiz; Phillip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General; Office of Investigations; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation; 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. Attorneys David S. Schumacher and Lisa Asiaf Schlatz of Ortiz’s Health Care Fraud Unit.
Two Florida Men Sentenced for Defrauding Thousands of Homeowners in $4 Million Nationwide Home Loan Modification ScamRead the Press Release
BOSTON – Two Florida men were sentenced today to serve 84 months in prison for defrauding thousands of homeowners in a $4 million nationwide home loan modification scheme.
United States Attorney Carmen M. Ortiz, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Christy Romero made the announcement.
Christopher S. Godfrey, 44, of Delray Beach, Fla., and Dennis Fischer, 42, of Highland Beach, Fla., were sentenced by U.S. District Court Judge Rya W. Zobel and ordered to serve three years of supervised release following their prison term.
The defendants were convicted on Nov. 14, 2013, after a two-week trial, of one count of conspiracy, eight counts of wire fraud, eight counts of mail fraud and one count of misusing a government seal.
“These convictions and sentences should send the message that those who prey on the most economically vulnerable among us to line their own pockets will be caught, convicted and given the long prison sentences they deserve,” said U.S. Attorney Ortiz.“These men stole millions of dollars from struggling Americans who had achieved the dream of home ownership and sought help to refinance their mortgages and save their homes from foreclosure,” said Acting Assistant Attorney General Raman. “Today’s sentences should serve as a warning to anyone who exploits distressed homeowners and prevents them from getting the real help they need.”
“Scamming homeowners by selling for $400 to $2,000 what is a free application to TARP’s housing program is a despicable crime, and for their crimes, Godfrey and Fischer will each spend the next seven years in federal prison,” said Special Inspector General Romero. “Godfrey and Fischer swindled homeowners out of more than $4 million, which they used for extravagant trips to Dubai and France, luxury shopping sprees, and to pay their own mortgages on waterfront homes in Florida beach communities. SIGTARP and our law enforcement partners will put an end to scams that exploit TARP and bring swift justice to con men who perpetrate these scams.”
According to the evidence presented at trial, from January 2009 through May 2011, Godfrey, Fischer and their employees, operating under the name Home Owners Protection Economics Inc. (HOPE), made a series of misrepresentations to induce struggling homeowners to pay HOPE a $400 to $2,000 up-front fee in exchange for HOPE’s help obtaining federally funded home loan modifications. Among these misrepresentations were the claims that, with HOPE’s assistance, the homeowner was guaranteed to receive a loan modification under the Home Affordable Modification Program (HAMP), which is part of the Troubled Asset Relief Program (TARP) and is a federally funded mortgage-assistance program. For example, the defendants routinely claimed that the homeowner had already been approved for a loan modification, provided phony “approval codes,” quoted new (and wholly fictitious) mortgage terms and due dates, touted their 98 percent past success rate and claimed that they were “underwriters” or were otherwise affiliated with the homeowners’ mortgage companies. HOPE also claimed that it would offer homeowners refunds in the unlikely event that they did not receive a loan modification.
According to the trial evidence, in exchange for the up-front fees, HOPE sent its customers, including homeowners in Massachusetts, a do-it-yourself application package, which was virtually identical to the application that the government provides free of charge. The HOPE customers had no advantage in the application process, and, in fact, most of their applications were denied. Through these misrepresentations, HOPE was able to persuade thousands of homeowners to pay more than $4 million in fees.
Trial evidence also showed that the defendants claimed that they operated HOPE as a non-profit, when, in fact, they operated as a for-profit telemarketing fraud scheme. Godfrey and Fischer used funds that homeowners had paid into the purported non-profit’s bank account to pay for their trips to Dubai and the South of France, to shop at luxury stores, to pay for their pool service, and to pay the mortgages on their waterfront home and condominium. The remaining two defendants in the case, Vernell Burris Jr. and Brian Kelly, have pleaded guilty and will be sentenced on Feb. 25, 2014.
The case was investigated by SIGTARP, and is being prosecuted by Assistant U.S. Attorney Adam Bookbinder of Ortiz’s Computer Crimes Unit and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section.New Bedford Man Indicted for Armed Bank RobberyRead the Press Release
BOSTON – A New Bedford man was charged today with the armed robbery of a New Bedford credit union.
David A. Frates, 36, was charged with armed bank robbery. The indictment alleges that on Sept. 24, 2013, an individual, later determined to be Frates, entered the St. Anne’s Credit Union in New Bedford. Once inside, Frates, who was wearing a translucent mask and gloves, brandished what appeared to be a black semi-automatic firearm and demanded cash. The tellers handed Frates $1,098 which he stuffed inside an orange bag before fleeing the bank. A witness stated that Frates was wearing a gray sweatshirt with the words, “Bristol Community College” imprinted on the front. Following an investigation, Frates was arrested and officers recovered the gray sweatshirt, the translucent mask, an orange bag, and a black BB gun.
If convicted, Frates faces a maximum sentence of 25 years in prison, five years of supervised release, a $250,000 fine and $1,098 in restitution to St. Anne’s Credit Union.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Chief David Provencher of the New Bedford Police Department, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Holyoke Man Pleads Guilty to Embezzlement from Veteran's Administration OrganizationRead the Press Release
BOSTON – A Holyoke man pleaded guilty today to embezzling $60,000 from the Boston Veteran’s Administration Research Institute (BVARI).
Riccardo D'Orsainville, 48, pleaded guilty to embezzlement and misuse of a passport. Sentencing is scheduled for May 8, 2014 before U.S. District Court Judge Rya W. Zobel. As part of the plea agreement, D'Orsainville has agreed to repay BVARI $57,479 in restitution.
In August 2011, D'Orsainville was hired by the BVARI as a temporary employee. BVARI is non-profit, tax-exempt institute whose purpose is to conduct the medical research and educational activities of the U.S. Veteran’s Affairs healthcare system. D'Orsainville's responsibilities included helping BVARI’s CEO with administrative duties, such as preparing for meetings, writing the minutes for each meeting, collecting the mail, and depositing certain checks payable to BVARI into BVARI's business bank accounts.
In July 2012, D'Orsainville forged the signatures of two BVARI employees to open an unauthorized corporate Citizens bank account in the name of BVARI. Between July 2012 and January 2013, D'Orsainville embezzled approximately $68,336 in checks made out to BVARI by depositing them into the Citizens bank account from which he ultimately withdrew approximately $60,000 for his personal use.
When D'Orsainville was arrested on July 17, 2013, he was in possession of a European Union passport belonging to a British national. D’Orsainville had altered the passport by replacing the passport photograph of the British national with his own. The investigation determined that on June 29, 2013, D'Orsainville used the altered passport to obtain employment at D. Hotel in Holyoke using the name of the British national.
United States Attorney Carmen M. Ortiz; Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; made the announcement today. The case is being prosecuted by Maxim Grinberg of Ortiz’s Health Care Fraud Unit.
Two Charged with Sex Trafficking of MinorsRead the Press Release
BOSTON – In an indictment unsealed today, two Boston men have been charged in the U.S. District Court with the sex trafficking of minors.
Miriam Kizzie, also known as “Keys” and “Keyshawn,” 21, was charged with sex trafficking of minors and transportation of minors with intent to engage in criminal sexual activity.
Anthony Pledger, also known as “Polo,” “Polo B.” and “Jaden,” 26, was charged in the same indictment with sex trafficking of minors and transportation of minors with intent to engage in criminal sexual activity.
According to the indictment, in October 2013, Kizzie and Pledger conspired with each other to sex traffic two minors and to transport them between Massachusetts and Rhode Island with intent that they engage in prostitution. Kizzie and Pledger are also charged with aiding and abetting each other in sex trafficking the two minors and in actually transporting them between Massachusetts and Rhode Island with intent that they engage in prostitution.
Further, according to the indictment, in July 2013, Kizzie trafficked two other minors.
Pledger had been previously charged, first in state court and then by complaint in U.S. District Court, based on the incidents that occurred in October 2013. Pledger and Kizzie will be arraigned together on the indictment on Feb. 27, 2014.
If convicted, Kizzie and Pledger face minimum mandatory sentences of 15 years on the sex trafficking charges and 10 years on the transportation charges. They face maximum sentences of a lifetime in prison.
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 U.S. Attorney’s Office would like to thank the Suffolk County District Attorney’s Office, Plymouth County District Attorney’s Office, Middlesex District Attorney’s Office, Rhode Island Attorney General’s Office, Rhode Island State Police, Brookline Police Department, Brockton Police Department and Providence Police Department for providing assistance in this case.
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.
The details contained in the charges are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The aggressive enforcement of federal civil rights laws is a top priority of the U.S. Attorney’s Office for the District of Massachusetts. Since U.S. Attorney Ortiz created the Civil Rights Enforcement Team (CRET) in 2010, the Office has substantially increased its focus on civil and criminal civil rights enforcement. In the last two years, the office has charged multiple defendants with sex trafficking and other criminal civil rights violations.
Former Plymouth Police Officer Convicted of Using Excessive Force and LyingRead the Press Release
BOSTON - A former Plymouth police sergeant was convicted today of using excessive force on an arrestee and covering up his actions by falsifying police reports related to the incident.
After three hours of deliberation, a jury convicted Shawn Coughlin, 47, of deprivation of constitutional rights under color of law and falsifying a record to impede a federal investigation.
On Nov. 19, 2011, at the Plymouth police station, Coughlin assaulted an arrestee who was in a holding cell and handcuffed behind his back. Coughlin struck the arrestee in the head and kneed him in the body, resulting in bodily injury. Evidence at trial also established that Coughlin falsified the official police incident reports regarding the incident.
“A critical component of effective law enforcement is trust,” said US Attorney Carmen M. Ortiz. “Quality policing cannot exist if citizens can’t trust that the police who are sworn to protect them use excessive force and lie about their actions. It is very important to our entire system of justice that individuals who violate that trust are held accountable.”
“This investigation shows that the FBI, Plymouth Police and the United States Attorney’s Office places a high-priority on investigating civil rights violations including violations by those sworn to protect and serve. The FBI was proud to work with the Plymouth Police Department and the United States Attorney’s Office on this investigation to ensure that justice was served. Nothing justifies or excuses Mr. Couglin’s actions because it is never acceptable to break the law in order to enforce it,” said Vince Lisi, Special Agent in Charge of the FBI.
Sentencing is scheduled for May 20, 2014. Coughlin faces up to 10 years in prison to be followed by three years of supervised release and a $250,000 fine on the civil rights conviction. Coughlin faces up to 20 years in prison to be followed by three years of supervised release and a $250,000 fine on the obstruction conviction.
United States Attorney Ortiz and FBI Special Agent in Charge Lisa made the announcement today. The case is being prosecuted by S. Theodore Merritt and Kristina E. Barclay of Ortiz’s Civil Rights Enforcement Team.
North Dartmouth Man Pleads Guilty to Tax FraudRead the Press Release
BOSTON - A North Dartmouth male pleaded guilty yesterday to filing a false tax return in 2007 that grossly under-reported his income.
Gerald Sicard, 57, pleaded guilty to filing a materially false tax return. In January 2014, Sicard was charged by information as part of an agreement to plead guilty. Sentencing is scheduled for May 15, 2014.
According to the Information, in 2007, Sicard, a self-employed building contractor, intentionally under-reported his business income to his tax preparer, who then prepared Sicard's 2007 personal tax return in reliance on the false numbers. Sicard's actual gross income for 2007 was approximately $488,112, but he reported only $174,310 of gross income to his tax preparer, which was the amount the tax preparer entered on Sicard’s return. Sicard then verified his tax return as accurate and authorized the tax preparer to file it with the IRS on Sicard's behalf. Sicard's misrepresentations deprived the U.S. Treasury of about $111,969 in tax revenue for 2007.
The charge to which Sicard pleaded guilty carries a maximum sentence of three years of in prison, three years of supervised release and a fine of $100,000. Sicard may also be required to pay the costs of prosecution. By agreement, Sicard and the U.S. Attorney’s Office will recommend that Sicard serve a period of home confinement instead of incarceration.
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 Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
Greenfield Doctor Sentenced for Multiple Tax Related CrimesRead the Press Release
BOSTON - A Greenfield, Mass. doctor was sentenced this week in U.S. District Court in Springfield for tax evasion and other charges.
On Feb. 12, Richard C. McGinn, 67, was sentenced by U.S. District Court Judge Michael A. Ponsor to 30 months in prison and two years of supervised release. In 2013, a jury convicted Dr. McGinn of tax evasion, five counts of failing to pay over employment taxes, and failure to file a tax return.
From 2007 until 2009, Dr. McGinn owned and operated a medical practice in Greenfield. During that time, he evaded the payment of a tax liability of over $1 million which he had accumulated from 1987 to 2003. Among other things, Dr. McGinn paid personal expenses with corporate funds, and he used the bank account of a family member to conceal the income from the medical practice. During this time, Dr. McGinn also withheld employment taxes from the paychecks of his employees, and he kept the money for himself, rather than paying the money to the IRS as he was required to do. Additionally, Dr. McGinn failed to file corporate income tax returns for his medical practice.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Alex J. Grant of Ortiz’s Springfield Branch Unit.
Former Lab Executive Sentenced for Tax-Related CrimesRead the Press Release
BOSTON – The former chief operating officer of a Woburn drug testing laboratory was sentenced yesterday for federal tax related crimes.
U.S. District Court Judge George A. O’Toole, Jr. sentenced Patrick Cavanaugh, 50, of Gloucester, to 18 months in prison and one year of supervised release. In 2013, Cavanaugh pleaded guilty to four counts of subscribing to false tax returns for the tax years 2005 through 2008.
Cavanaugh, the former chief operating officer of Calloway Laboratories, Inc., a urine drug testing company in Woburn, Mass., filed false federal income tax returns for tax years 2005 through 2008, by substantially underreporting his income during those tax years. During that period, while employed at Calloway, Cavanaugh received payments, in the form of checks and cash, from JAC Resources, Inc., a straw company that Cavanaugh owned and controlled, but failed to report the income on his federal income tax returns.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Philip Coyne, Special Agent in Charge of the Health and Human Services, Office of Inspector General, Office of Investigations; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Sonya Rao and Amanda Strachan.
Chiropractor Arrested for Bribing IRS AuditorRead the Press Release
BOSTON - A chiropractor was arrested today for bribing an IRS auditor.
Stephen Jacobs, 55, of Lowell, was arrested for bribery of a public official. The complaint alleges that Jacobs paid an IRS auditor $5,000 in cash to ignore two deductions he improperly took on this 2011 income tax form. These deductions were in fact payments Jacobs made to two different women because he touched them inappropriately during medical treatments during 2011 and 2012.
A probable cause hearing is scheduled for March 5, 2014 at 2:00 pm.
United States Attorney Carmen M. Ortiz and Robert O’Malley, Special Agent in Charge of the Treasury Inspector General for Tax Administration, made the announcement today. The case is being prosecuted by Eugenia M. Carris of Ortiz’s Public Corruption 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.
Douglas Man Arrested for Attempting to Entice A Federal Agent Posing as MinorRead the Press Release
BOSTON - A Douglas man was charged in the U.S. District Court in Worcester today with attempting to entice a 13-year-old girl over the internet.
Scot Trudeau, 39, was charged in a complaint with using a means or facility of interstate commerce to induce and/or entice a minor to engage in unlawful sexual activity.
An affidavit unsealed today alleges that an undercover investigation was initiated after receiving complaints that Trudeau had been communicating via email with a minor in New York State. Between September 2013 and January 2014, federal agents posed as a 13-year-old-girl and communicated with Trudeau via email during which time Trudeau repeatedly enticed the agent to engage in unlawful sexual conduct and discussed the possibility of traveling to New York to meet and engage in sexual acts.
If convicted, Trudeau faces a mandatory minimum sentence of 10 years and a maximum of a lifetime in prison, a mandatory minimum of five years and up to a lifetime of supervised release.
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 Mark J. Grady of Ortiz’s Worcester Branch Office.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
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.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Bolton Man Charged with Child Pornography OffensesRead the Press Release
BOSTON - A Bolton man was charged today in U.S. District Court in Worcester on child pornography charges.
Michael Hayes, 24, was charged with distribution of child pornography and possession of child pornography. According to the criminal complaint affidavit, in November 2013, Hayes permitted an undercover federal agent, through the use of a peer-2-peer file sharing network, to download a number of image files and video files which depict child pornography.
If convicted, Hayes faces a mandatory minimum sentence of five years and up to 20 years in prison, a five year mandatory minimum and up to a lifetime of supervised release and a $250,000 fine on the charge of distribution of child pornography; and a maximum of 10 years in prison, lifetime supervised release and a $250,000 fine on the charge of possession of child pornography.United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Vincent C. Alfano, Chief of the Bolton Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett of Ortiz's Worcester Branch Office.
New Hampshire Man Sentenced for Gun TrafickingRead the Press Release
BOSTON - A New Hampshire male was sentenced today for being a previously convicted felon in possession of firearms.
Sean Meola, 42, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 70 months in prison and three years of supervised release. In October 2013, Meola pleaded guilty to being a previously convicted felon in possession of firearms.
On January 14, 2013, Meola negotiated with an undercover federal agent for the sale of a number of firearms. Meola and another individual arrived at a prearranged location and sold the undercover agent three semi-automatic handguns and two shotguns for which Meola received $1,200. Further investigation revealed that the weapons had been recently stolen from a home in New Hampshire.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case was prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Disbarred Somerset Attorney Charged with FraudRead the Press Release
BOSTON – A disbarred Somerset attorney was arrested this morning on fraud charges arising out of his promotion of a variety of investment opportunities.
John Silvia, 64, was charged in a complaint with mail and wire fraud. Silva, purportedly the “Managing Member” of Richardson Consulting, LLC, was charged for his promotion of various investments, including investments in real estate and a “performance bond.” According to the complaint, Silvia represented that the investments were “risk-free” and promised to return the principal, along with substantial interest, within approximately 90 days. Silvia did not invest the funds and did not make the promised payments. Silvia, who was licensed to practice law in Massachusetts in 1975, has been disbarred since 2003.
The statutory maximum penalties for the mail and wire fraud charges are 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gain to the defendant or loss to the victim.
The Massachusetts Securities Division, which filed an administrative complaint today charging Silvia with violation of Massachusetts securities laws, referred this case to the U.S. Attorney’s Office and cooperated with the criminal investigation.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sarah E. Walters of Ortiz’s Economic Crimes Unit.The details contained in the complaint 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.
Dorchester Man Sentenced in Murder-For-Hire CaseRead the Press Release
BOSTON - A Dorchester man was sentenced today in U.S. District Court in Worcester for a murder-for-hire plot against an Assistant District Attorney in Worcester County.
Pernell Powell, 76, was sentenced by U.S. District Court Judge Timothy S. Hillman to nine years in prison and two years of supervised release. In August 2013, Powell was convicted following a jury trial of using interstate commerce facilities in the commission of a murder-for-hire.
Powell tried to hire his cellmate at the Worcester County House of Correction to murder an Assistant District Attorney who he believed was involved in the prosecution of his pending OUI multiple offender case. Evidence against Powell included recorded conversations which contained explicit threats against the ADA.
U.S. Attorney 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 Sheriff Lewis G. Evangelidis of the Worcester County Sheriff's Office, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Cory S. Flashner and Michelle L. Dineen Jerrett of Ortiz's Worcester Branch Office.
Businesswoman Sentenced for Role in Securities Fraud SchemeRead the Press Release
BOSTON – The principal of two companies was sentenced yesterday for her role in a fraudulent scheme in which executives agreed to pay secret kickbacks to an investment fund representative.
Kelly Black-White, 52, of Mesa, Ariz., was sentenced by U.S. District Court Judge Denise J. Casper to one year and one day in prison, two years of supervised release, a $7,500 fine and forfeiture of the illegal earnings. In September 2013, Black-White pleaded guilty to conspiracy to commit securities fraud and wire fraud.
Black-White, the principal of Premier Funding, Inc. and Premier Services, Inc., provides investor and public relations services to publicly traded companies. Black-White was sentenced for her role in a fraudulent scheme in which highly-placed executives agreed to pay secret kickbacks to an investment fund representative who had offered to steer his investment fund to buy stock in their companies. Black-White’s role involved referring such executives to the investment fund representative so that those executives could enter into the kickback arrangement. In exchange, Black-White accepted a portion of the kickbacks paid by the executives. Unbeknownst to Black-White, the purported investment fund representative was actually an undercover federal agent.Black-White’s conviction and sentence followed a year-long investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly-traded companies whose stock often trades at pennies a share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the Securities Exchange Commission.
The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the FBI undercover operation, cooperated with criminal authorities in bringing these charges, as well as charges against other defendants who participated in the kickback scheme. To date, 14 other individuals have been charged and convicted for their participation in the scheme.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 was prosecuted by Assistant U.S. Attorneys Vassili Thomadakis, Eric P. Christofferson, and Sarah E. Walters of Ortiz’s Economic Crimes Unit.
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.
Nine Brockton Men Face Narcotics and Weapons ChargesRead the Press Release
BOSTON – Nine Brockton men have been charged with federal and state narcotics and firearms charges.
Federal indictments were returned against Jethro Lujares, 27; George Guyton, 28; Peterson Paul, 35; and Manuel Gomes, 34, for distribution of cocaine base, they will have an initial appearance in U.S. District Court in Boston later today. Lujares and Paul were arrested today, Gomes is still wanted on the charge, and Guyton was already in federal custody on an unrelated matter.
The following were arrested today and charged by Plymouth County District Attorney Timothy Cruz’s Office and will appear in Brockton District Court: Jason Lopes, 19, was charged with unlawful possession of a firearm; Jeffrey Fonseca, 29, charged with distribution of Class D, marijuana; Brendan Fernandes, 24 and Matthew Veiga, 23, were charged with distribution of Class B, Percocets; and Nelson Dossantos, 23, is still wanted in the charge of distribution of Class C, Ecstasy. If convicted, Lopes faces five years in prison; Fonseca faces two years in prison; Fernandes and Veiga each face 10 years in prison; and Dossantos faces five years in prison.
U.S. Attorney Carmen M. Ortiz said, “Today’s arrests are the culmination of excellent investigative work and outstanding interagency cooperation. The U.S. Attorney’s Office and its sister agencies will continue to work in the City of Brockton to ensure that it is a safe place to live and work. I want to commend all of our law enforcement partners for all of their hard work and tireless efforts.”
“This successful investigation brought together law enforcement professionals from local, state and federal agencies to remove drug dealers from the streets of Brockton,” said Plymouth County District Attorney Timothy J. Cruz. “These defendants will be prosecuted for dealing crack cocaine, prescription narcotics, marijuana and a concentrated form of the drug Ecstasy known as “Molly,” on the streets of this city. The sale of illegal drugs fuels a vicious cycle of addiction, property crimes and violence in the community…the quality of life in the community is enhanced when drug dealers are held accountable for their crimes. This sweep is another example of the strong partnership between local, state and federal law enforcement that we have here in Plymouth County, and of the benefit to the community through these concerted efforts.”
“I would like to thank all those who made today’s operation a success, including our own special agents, the DEA, and the brave officers of Plymouth County Sheriff’s Office and the Brockton Police Department. The long arm of the law reaches further when we all work together,” said Bruce Foucart, Special Agent in Charge of Homeland Security Investigations in Boston. “Working alongside our partner law enforcement agencies, HSI can remove more hardcore criminals from our streets, making our communities safer for everyone.”
“This is an ongoing relationship between the Plymouth County Sheriff’s Department, the U.S. Attorney’s Office, Homeland Security and the Brockton Police Department to conduct cooperative investigations that will lead to the removal of gang members and guns from the streets of our city,” said Brockton Mayor Bill Carpenter. “I fully support the efforts of all involved.”
“The DEA is committed to the dismantling of criminal organizations that bring drugs and violence into our communities,” said John Arvanitis, Special Agent in Charge of the DEA’s Boston Field Division. “Our commitment to the citizens of these neighborhoods is unwavering. Together with our federal, state and local law enforcement partners we will continue to target drug trafficking organizations operating throughout New England.”
“The hallmark of this investigation has been teamwork and cooperation,” said Plymouth County Sheriff Joseph D. McDonald Jr. “These arrests today should have an immediate and positive effect on all the communities of Plymouth County.”
If convicted, Gomes faces a statutory maximum sentence of 40 years in prison, a mandatory minimum sentence of five years, a maximum fine of $5 million, and a minimum of four years of supervised release. If convicted, Lujares, Guyton and Paul all face a statutory maximum sentence of 20 years in prison, a maximum fine of $1 million, and a minimum of three years of supervised release.
The details contained in the indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Questions regarding the state defendants should be directed to Jessica Healy (508) 584-8120 at the Plymouth County District Attorney’s Office.
Anyone with information regarding the whereabouts of Manuel Gomes or Nelson Dossantos should call ICE at 866-347-2423.
Ex-Metlife Employee Pleads Guilty in Phony Expense SchemeRead the Press Release
BOSTON - A former employee of MetLife, the New York-based insurance company, pleaded guilty today to defrauding the company of more than a quarter of a million dollars by submitting bogus expense reports.
Meredith Mandracchia, 32, of Brighton, pleaded guilty to wire fraud. The statutory maximum penalty for wire fraud is 20 years in prison, three years of supervised release and a $250,000 fine. United States Senior District Judge Mark L. Wolf scheduled sentencing for May 2, 2014.
From 2005 until 2010, Mandracchia, a former senior marketing consultant for MetLife, charged a wide variety of personal expenses to her corporate American Express card, including purchases at retailers such as Banana Republic, J. Crew, and Victoria’s Secret; payments to tanning salons, nail salons and grocery stores; and numerous calls to psychic hotlines. Mandracchia then fabricated invoices from legitimate MetLife vendors for conference sponsorships, membership fees, and other charges, prompting the company to make payments to Mandracchia’s corporate American Express account. In fact, however, those payments simply satisfied Mandracchia’s personal charges. In addition, Mandracchia submitted fabricated invoices for company expenses she claimed to have charged to her personal credit card, causing the company to reimburse her directly for those fake charges. The loss to MetLife totaled $230,000.
United States Attorney Carmen M. Ortiz; Kevin Niland, Postal Inspector in Charge of the U.S. Postal Inspection Service; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Stephen E. Frank of Ortiz’s Economic Crimes Unit.
Statement by U.S. Attorney Carmen M. Ortiz Regarding Attorney General's Authorization of the Death PenaltyRead the Press Release
Today, United States Attorney General Eric H. Holder, Jr. authorized the government to seek the death penalty in the case of United States v. Dzhokhar A. Tsarnaev. We support this decision and the trial team is prepared to move forward with the prosecution.
A short time ago, the government filed with the Court the required notice of intent to seek the death penalty. The case will now continue to proceed through the pretrial process and the next scheduled court event is a status conference set for February 12, 2014.
While I understand the public interest in this matter, we have rules that limit the release of information and the scope of public statements. The process by which this decision was made is confidential, and I will not comment further about that process other than to say that it entailed a careful and detailed consideration of the particular facts and circumstances of this case.
Former Postal Worker Pleads Guilty to Stealing Video Games from the MailRead the Press Release
BOSTON – A former postal worker pleaded guilty today to stealing more than 200 video games from the mail.
James L. White, 68, of Dorchester, pleaded guilty before U.S. District Judge Douglas P. Woodlock to theft of mail. Sentencing is scheduled for May 8, 2014. The statutory maximum penalty for the crime is five years in prison, three years of supervised release and a $250,000 fine.
From July through November 2012, White, while working as a mail handler at the Boston General Mail Facility, stole GameFly video games from the mail. He resold those video games to Gamestop, a videogame and software retailer. During the course of the theft, White stole over 200 video games worth several thousand dollars.
United States Attorney Carmen M. Ortiz and Rafael Medina, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption and Special Prosecutions Unit.
Former Postal Worker Sentenced for Mail TheftRead the Press Release
BOSTON – A former mail sorter, who last year pleaded guilty to stealing mail, was sentenced today in U.S. District Court.
Michael Gilman, 27, of Taunton, was sentenced by Senior U.S. District Court Judge Mark L. Wolf to one year of probation and ordered to pay $789 in restitution. In April 2013, Gilman pleaded guilty to theft of mail.
Gilman, a mail sorter for the U.S. Postal Service in Brockton, had opened greeting cards, stealing their contents over a two-month period. The senders of these cards included parents, grandparents and friends, whose intended recipients never received their gifts and greeting cards. Gilman’s theft resulted in monetary loss to 20 victims.
United States Attorney Carmen M. Ortiz and Rafael Medina, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption and Special Prosecutions Unit.
Worcester Tax Preparer Pleads Gulity to Preparing False ReturnsRead the Press Release
BOSTON – A Worcester woman pleaded guilty today in U.S. District Court in Worcester to falsifying tax returns.
Jenniffer Cox Elicier, 34, of Worcester pleaded guilty before U.S. District Court Judge Timothy S. Hillman to two counts of aiding and assisting in the preparation of false tax returns. The statutory maximum penalty for the crime is three years in prison, one year of supervised release and a $250,000 fine. Sentencing is scheduled for May 2, 2014.
Elicier operated Cox Elicier Tax in Worcester where she prepared individual federal income tax returns for clients. Elicier inserted false information into her clients= Form 1040 returns, including false Schedule A deductions such as gifts to charity and unreimbursed employee expenses, and thereby generated illegal refunds.
United States Attorney Carmen M. Ortiz and John G. Collins, Special Agent in Charge of Internal Revenue Service=s Criminal Investigation in Boston made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Lori J. Holik of Ortiz=s Economic Crimes Unit.
Dominican Man Sentenced for Social Security and Passport FraudRead the Press Release
BOSTON - A Dominican man was sentenced today for his theft of an American citizen’s identity to obtain a U.S. passport and more than $60,000 in Social Security benefits.
Antonio Pulinario Brea, 55, was sentenced by U.S. District Court Judge Denise J. Casper to 10 months in prison and ordered to pay $60,455 in restitution. In November 2013, Pulinario Brea pleaded guilty to theft of public money and two counts of making a false statement in a passport application.
Beginning in 2001, Pulinario Brea, who was born in the Dominican Republic and later came to the United States, stole the identity of an American citizen and used it to obtain a driver’s license, Social Security card, and passport in the citizen’s name. Pulinario Brea also used the citizen’s identity to obtain more than $60,000 in Social Security 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 U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; and David Hall, Special Agent in Charge of the U.S. Department of State’s Bureau of Diplomatic Security’s Boston Field Office, made the announcement today. The case was prosecuted by Special Assistant United States Attorney Timothy Landry of Ortiz’s Major Crimes Unit.Service Station Owner Sencenced for Extortion and Mail FraudRead the Press Release
BOSTON – An automobile service station owner, who conspired with a Massachusetts Registry of Motor Vehicle (RMV) project manager to extort other service station owners who wanted to obtain a license to conduct vehicle safety inspections, was sentenced today.
Simon Abou Raad, 51, of Tyngsborough, was sentenced by U.S. District Court Judge George A. O’Toole to three years in prison, two years of supervised release, a $10,000 fine and ordered to forfeit $360,000 in illegal proceeds. In December 2013, Abou Raad pleaded guilty to mail fraud and conspiracy to extort money under color of official right.
Abou Raad owned service stations in Tewksbury and Tyngsboro. His co-defendant, Mark LaFrance, project manager for Vehicle Safety and Compliance Services at the RMV, had oversight responsibilities for the entire motor vehicle inspection program within Massachusetts. In Massachusetts, applications to obtain a license to conduct motor vehicle safety inspections are intended to be granted off a waiting list with consideration given to geographic location. An applicant for a vehicle inspection license must pay a $100 fee and the actual equipment costs about $2,500. The inspection network was at its capacity, therefore the RMV was not granting new licenses off the waiting list.LaFrance and Abou Raad operated what was essentially “a black market” for such licenses through the use of LaFrance’s official position. LaFrance provided to Abou Raad a list of vehicle inspection stations that had a low volume of inspections and/or were planning to surrender their license and sell the inspection equipment. Abou Raad then contacted the service station owner and offered to buy the inspection license and equipment for prices usually in the range of $5,000 to $6,000. Abou Raad offered for sale such licenses and equipment to service station owners desirous of acquiring a license for prices between $50,000 to $75,000. Abou Raad then arranged the transaction to appear as if the service station owners selling and buying the license were merging as a new business entity or with a change in ownership. Although he was aware that these purported mergers were not bona fide, LaFrance either approved the issuing of a new license or permitted others in the RMV to approve the new license. After the fraudulent transaction resulting in the issuance of a vehicle inspection licenses was completed and payment was made to Abou Raad, he split the illegal proceeds with LaFrance. Through this illegal scheme, Abou Raad sold at least 10 inspection licenses and/or machines for approximately $657,000 in total.
In November 2013, LaFrance was sentenced to three years in prison.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys S. Theodore Merritt and Robert Fisher of Ortiz’s Public Corruption Unit.Man Arrested on Federal Charges in USPS Shooting Second Suspect Still at LargeRead the Press Release
Boston – One Dorchester man was arrested this morning and another remains a fugitive in connection with the attempted robbery, assault and kidnapping of a U.S. Postal letter carrier that took place just before Christmas. The federal criminal complaint was filed in U.S. District Court in Boston yesterday and was unsealed today.
Maurice Williams Miner-Gittens, 23, and Keyon Taylor, 21, were charged with conspiracy to rob, attempted robbery and kidnapping of a federal employee.
The government is seeking the public’s assistance in locating Keyon Taylor. Anyone with information regarding Taylor’s whereabouts should contact the U.S. Postal Inspectors at 877-876-2455 (option 2). Taylor may be armed and should be considered dangerous; no one should attempt to apprehend him.
Gittens and Taylor were charged in connection with the Dec. 20, 2013 attempted robbery, shooting and kidnapping of a U.S. Postal letter carrier in Dorchester. While the letter carrier was delivering holiday packages, Taylor allegedly jumped into the postal truck and put a pistol to the letter carrier’s head. A scuffle ensued and the letter carrier was shot in the wrist and was subsequently beaten with the pistol and kicked, told to take off his postal uniform and lie face down.
It is alleged that Taylor took the letter carrier’s keys and started to drive the postal truck away. According to the affidavit, the letter carrier, who was bleeding extensively and who feared for his life, escaped by jumping out of the back door of the truck and running away. Taylor drove the truck a short distance further before abandoning it and fleeing on foot, leaving a trail of boot prints in the snow and his blood on a chain link fence from a cut or puncture wound on his hand. The trail of boot prints led through several back yards to a trash or recycling bin, which also had his blood on the handle.
The letter carrier's uniform, cell phone and personal keys were found in the bin.
Gittens, meanwhile, was the renter and driver of a U-Haul van that was used during the attempted robbery, which had the letter carrier’s blood on the outside.The charges were made after an extensive investigation by the U.S. Postal Inspection Service and the Boston Police Department. The Boston Police Department’s crime laboratory also provided exceptional assistance in analyzing forensic evidence within a very short time period.
The defendants each face a maximum sentence of life in prison on the kidnapping charges; five years on the conspiracy charges; and 25 years on the robbery of federal property.
United States Attorney Carmen M. Ortiz; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Commissioner William Evans made the announcement today. The case is being prosecuted by Thomas E. Kanwit of Ortiz’s Major Crimes Unit.
The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dorchester Man Guilty of Passport FraudRead the Press Release
BOSTON – A Dorchester man pleaded guilty yesterday to passport fraud.
Khanh Phan, 28, pleaded guilty before Senior U.S. District Court Judge Joseph L. Tauro to making false statements in a passport application and aggravated identity theft. Sentencing is scheduled for March 27, 2014.
On July 25, 2011, Phan submitted a passport application at a Dorchester post office. In the application, Phan claimed to be a different individual, providing the name, date of birth, and social security number of this other person, as well as a birth certificate and Massachusetts driver’s license in the other person’s name. Because Phan had worked with this individual at a Boston-based business in 2007, Phan knew not only that he was making false statements regarding his identity in the passport application, but also that he was using the name and other identifying information of a real person.
Phan faces a maximum sentence of 10 years in prison for making false statements in the passport application; and a mandatory sentence of two years in prison for aggravated identity theft, which must run consecutively to any sentence imposed for the passport fraud.
United States Attorney Carmen M. Ortiz and David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office, made the announcement today. The case is being prosecuted by Robert E. Richardson and Carlos A. López of Ortiz’s Major Crimes Unit.Maine Man Sentenced for Wildlife Trafficking ViolationsRead the Press Release
BOSTON – A former Maine resident was sentenced yesterday for violating federal wildlife protection laws which prohibit the illegal purchase and transportation of wildlife.
Senior U.S. District Court Judge Mark L. Wolf sentenced Eric Zeng, 49, to two years of probation and ordered to pay a fine of $5,000. In addition, the court ordered the forfeiture of Zeng’s vehicle. In October 2013, Zeng pleaded guilty to two counts of violating the Lacey Act, a federal wildlife protection statute which prohibits, among other things, the interstate purchase, sale and transportation of wildlife which was obtained in violation of federal, state or local law.
“Protecting the wildlife of our region is critical to ensuring the security of our precious environment,” said United States Attorney Carmen M. Ortiz. “It is our duty to prosecute individuals who senselessly exploit and traffic wildlife, and we will continue to work with our law enforcement partners to prevent these crimes.”
At the time of the offenses, Zeng was living in Presque Isle, Maine where he owned and operated a restaurant. He was actively engaged in the illegal purchase and sale of bear and deer parts in Maine, and continued the illegal trafficking by completing two purchases in Massachusetts.
On two occasions, Zeng bought what he was told were illegally obtained wildlife parts, specifically, black bear gall bladders and bear paws. He then traveled to Massachusetts to complete the purchase. After reviewing the items and paying in cash, Zeng transported them to locations in Connecticut where he sold them to third parties. Zeng drove a Cadillac Escalade, valued at $70,000, to both meetings and, as a result, the vehicle was subsequently seized by law enforcement and was forfeited as part of the sentence.
“We attribute the success of this case to the excellent working relationship we have with the U.S. Attorney’s Office and our counterparts in the U.S. Fish and Wildlife Office of Law Enforcement,” said Colonel Joel Wilkinson of the Maine Warden Service.“This sentence represents the gravity of such crimes committed against our wildlife, conservation and the hunting heritage,” said U.S. Fish and Wildlife Service, Northeast Region Special Agent in Charge Honora Gordon. “The case is another fine example of how our partnership with the Maine Warden Service and the Boston U.S. Attorney's Office is crucial in protecting black bears and other North American species from commercial exploitation."
U.S. Attorney Carmen M. Ortiz; Colonel Joel Wilkinson of the Maine Warden Service; and Honora Gordon, SAC of the U.S. Fish and Wildlife Service made the announcement today. The investigation leading to Zeng’s arrest was a joint effort between the Maine Department of Inland Fisheries and Wildlife, Maine Warden Service, and the United States Fish and Wildlife Service, Office of Law Enforcement. The case was prosecuted by Nadine Pellegrini of Ortiz’s Major Crimes Unit.
Former Stockbroker Arrested for Perpetrating Investment FraudRead the Press Release
BOSTON – A Cape Cod man was charged today with defrauding three people out of $800,000 as part of a long-term investment scam.
Jeffrey M. Semanscin, 38, of Marstons Mills, was charged in a criminal complaint with violating the 1940 Investment Advisers Act. The charges allege that between 2007 and late 2013, Semanscin ran an investment fraud scheme in which he pretended to be the managing director of a private equity fund called "Ibex Omega Private Equity." Three investors invested a total of about $800,000 with him. While Semanscin, a previously registered stockbroker, sent the investors periodic performance summaries and other financial information for the purported fund, the fund did not exist. Semanscin simply used the investors' money for his own personal expenses. By November 2013, Semanscin had dissipated all but $450 of the investor funds entrusted to him.
The case was referred to the United States Attorney’s Office by the U.S. Securities & Exchange Commission (SEC), which became aware of the scheme in October 2013 through a tip submitted through the SEC’s web site.
If convicted, Semanscin faces a maximum sentence under the statute of five years in prison, three years of supervised release and a $10,000 fine. The government will also seek $800,000 in restitution to Semanscin’s victims.
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 Andrew E. Lelling 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.
Dominican Man Sentenced for Repeated Illegal ReentryRead the Press Release
BOSTON – A Dominican man was sentenced today for illegally reentering the United States for the third time.
Luis Erasmo Carmona-Avalo, 42, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 30 months in prison. In October 2013, Carmona-Avalo pleaded guilty to illegal reentry by a deported alien.
At the sentencing hearing, Chief Judge Saris explained that the sentence reflected Carmona-Avalo’s history of immigration and drug crimes. In 1997, Carmona-Avalo, a citizen of the Dominican Republic, first came to the United States. In 2003, he pleaded guilty to heroin distribution in Massachusetts state court and was removed to the Dominican Republic. Carmona-Avalo then reentered the United States. In 2006, he was arrested on drug charges in Massachusetts and was removed to the Dominican Republic again.
In March 2007, Carmona-Avalo reentered the United States. In July 2007, he pleaded guilty to illegal reentry in the U.S. District Court for the Southern District of Texas, and was sentenced to 10 months in prison. In April 2008, he was removed for the third time to the Dominican Republic. In November 2011, having reentered the United States again without permission, Carmona-Avalo was arrested in Massachusetts for drug distribution. He was ultimately convicted and sentenced on the drug charges.
United States Attorney Carmen M. Ortiz and Sean Gallagher, Field Office Director of the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations Office in Boston, made the announcement today. The case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Cape Cod Man Facing Child Pornography ChargesRead the Press Release
BOSTON – At a detention hearing in U.S. District Court in Boston today, a magistrate judge ordered a Cape Cod man, facing child pornography charges, held until further notice.
Adam Polakowski, 45, of West Yarmouth, is charged in a criminal complaint with distribution and possession of child pornography. Polakowski, who has worked sporadically as a house painter, was arrested by federal agents on January 14. Magistrate Judge Jennifer Boal took the government’s request to have Polakowski held, under advisement. He is currently being held in the custody of the U.S. Marshal’s. No new court date has been scheduled.
According to court documents, federal agents identified a man in Arizona that was trading child pornography with an individual later identified as Polakowski. In addition to trading child pornography, Polakowski discussed his desire to violently abduct and rape pre-pubescent girls.On January 14, agents executed a search warrant at Polakowski’s home in West Yarmouth. During the time of the search, Polakowski was present, indicated he resided alone, and admitted that his computer contained child pornography. Polakowski further admitted that the email addresses were his and that he had traded the child pornography as indicated. During the execution of the search warrant, agents also recovered digital devices containing more than 800 images of child pornography, young girls’ underwear, and unopened children’s toys. Agents also identified items that Polakowski indicated in emails that he intended to use to carry out his violent plans, including his white cargo van, as well as the tape, rope cord, and baseball bat contained inside.
If convicted, Polakowski faces a minimum of five and a maximum of 20 years in prison, a minimum of five years and a maximum of lifetime supervised release and a $250,000 fine on the charge of distribution of child pornography. Polakowski faces a maximum of 20 years in prison, a minimum of five years and a maximum of lifetime supervised release and a $250,000 fine on the charge of possession of child pornography.United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The U.S. Attorney’s Office also wishes to thank the Massachusetts State Police and the West Yarmouth Police Department for their tremendous work on the case and their continued cooperation with the prosecution. The case is being prosecuted by Assistant U.S. Attorney Stacy Dawson Belf of Ortiz’s Major Crimes Unit.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
The case is brought as part of Project Safe Childhood, a nationwide initiative created in 2006 by the Department of Justice to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the complaint affidavit are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Virginia Doctor Convicted on Perjury Charges in Orthofix InvestigationRead the Press Release
BOSTON – A Virginia doctor was convicted today of making a false declaration to a grand jury regarding her involvement in falsifying patient medical records.
Ilene Terrell, 65, of Fredericksburg, Va. pleaded guilty before U.S. District Judge Nathaniel M. Gorton to four counts of making a false declaration to a grand jury. Judge Gorton scheduled sentencing for April 17, 2014. Terrell faces a maximum of five years in prison, three years of supervised release and a $250,000 fine on each count.
Terrell, a podiatrist, lied to the grand jury about her role in falsifying patient medical records to induce Medicare to pay for claims for Orthofix bone growth stimulator medical devices that did not meet Medicare’s payment guidelines. Bone growth stimulators are externally-worn medical devices that help regenerate bone cells and are used to assist the healing of broken bones. Medicare only pays for a bone growth stimulator if the medical supplier provides records demonstrating that fracture healing has ceased for three or more months. If the bone may heal on its own, Medicare will not pay for a stimulator, which can cost upwards of $4,000.On numerous occasions, Terrell prescribed a stimulator for a patient where the claim would not have met Medicare’s guidelines. When this occurred, the Orthofix territory manager, Terrell, and an employee at Terrell’s direction often falsified the patient’s medical records, making it appear as though the stimulator was not prescribed until three months had elapsed without healing, when that was untrue and Medicare should not have paid the claim. On some occasions, Terrell prescribed a stimulator for a patient and the patient’s bone healed within the prohibited three-month window. When that occurred, Terrell, an Orthofix representative, and an employee at Terrell’s direction deleted references in chart notes that the patient was using the stimulator and was healing, and they created a new, fictitious note at the end of the 90-day period stating that the bone was still broken and that a stimulator would be ordered. Terrell also created fictitious prescriptions to support the bogus claims.
On May 22, 2012, Terrell testified before the grand jury. She was asked several times if she was aware that patient records had been manipulated. Terrell lied to the grand jury, emphatically denying that she manipulated patient records or that she was even aware that anyone had done so. Terrell lied about other matters as well, including her communications with an Orthofix representative about the government’s investigation. Terrell discussed the government’s investigation at length with the Orthofix representative and instructed him that “you and I have not talked.” She also threatened him, stating: “If you guys take me out you are never going to live to hear the end of it. If I roll on this, I am serious, heads are going to roll, heads are absolutely gonna roll.” In the grand jury, Terrell was asked if she had recently spoken with the Orthofix representative. Terrell lied, stating that she only spoke with him briefly and that the sum total of the conversation was that the representative stated that he did not know what the investigation was about.
United States Attorney Carmen M. Ortiz and Philip Coyne, Special Agent in Charge of the Department of Health and Human Services made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys David S. Schumacher and Miranda Hooker of Ortiz’s Health Care Fraud Unit.
Malden Man Indicted for Tax CrimesRead the Press Release
BOSTON – A Malden man was charged today with a number of tax crimes stemming from him filing tax returns in the name of a dead relative.
Mark R. Fisette, 53, was indicted for tax evasion and four counts of filing false tax documents. The indictment alleges that Fisette worked as a freelance photographer for various weekly and daily newspapers, and had not timely filed or paid his income taxes. When state and federal taxing authorities began collection efforts, including seizing a paycheck, Fisette provided the newspaper distributor with the name and Social Security number of a deceased relative for future payments for Fisette’s photography services. It is also alleged that Fisette filed false income tax returns and a false financial statement which did not report the income he received in the dead relative’s name.
If convicted, Fisette faces a maximum sentence of five years in prison and three years of supervised release on the charge of tax evasion, and three years in prison and one year of supervised release for the charge of filing false tax documents. Both carry a maximum fine of $250,000 or twice the gain or loss, whichever is greater.United States Attorney Carmen M. Ortiz and John J. Collins, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Sandra S. Bower 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.
Lawrence Police Officer Sentenced to Prison for Bribery SchemeRead the Press Release
BOSTON - A Lawrence police officer was sentenced today for engaging in a bribery scheme with a local towing company, lying about the scheme to the Federal Bureau of Investigation and trying to obstruct the FBI’s investigation.
Pedro Jose Lopez, 47, was sentenced by U.S. District Court Judge Sr. Mark L. Wolf to 18 months in prison, three years of supervised release, and ordered to pay a $10,000 fine.
In October 2013, Lopez was convicted by a jury of federal program bribery, making false statements to a federal agent, and obstruction of justice. These charges stemmed from an arrangement he had with a Lawrence tow company, under which Lopez would call in numerous unjustified tows to the company, in exchange for which the company gave him discounts on abandoned vehicles and paid for a snow plow to be installed on his truck. Once the FBI began investigating the scheme, Lopez lied to agents about whether he’d reimbursed the owner of the towing company for the snow plow. Lopez also obstructed the FBI investigation by giving the FBI a copy of a bogus receipt showing that he’d paid $4,000 to the owner of the tow company for the plow.
United States Attorney Carmen M. Ortiz, Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and James X. Fitzpatrick, Interim Chief of the Lawrence Police Department, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys William F. Bloomer and Andrew E. Lelling.
Former Co-Owners of Palmer Company Plead Guilty to Wire FraudRead the Press Release
BOSTON – The former co-owners of a Palmer equipment company pleaded guilty yesterday in U.S. District Court in Springfield to conspiracy and wire fraud.
Aaron Peabody, 42, of Houlton, Maine, and Gary Como, 49, of Warren, Mass., pleaded guilty to conspiracy to commit wire fraud and three counts of wire fraud.
Between 2006 and 2010, Como and Peabody were co-owners of New England Equipment Company (NEECO, Inc.). During that time, Como and Peabody engaged in a long running scheme that was perpetrated in a variety of ways, resulting in losses of more than $1 million. Their schemes included obtaining fake loans using the names of NEECO's customers and by selling rented or leased wood chipping machines equipment that they did not own and selling them to customers. Como and Peabody also engaged in check-kiting through a rapid series of deposits and withdrawals between two banks, giving the impression that NEECO had more money that it did. When one of the banks stopped honoring NEECO’s checks, the other bank had lost more than $138,000.
Furthermore, the men obtained money in other ways, including by taking wood chipping equipment on consignment from NEECO’s customers and falsely promising to pay back the customer’s loan on the equipment once the machine sold. After the machine was sold on consignment, they kept the sale proceeds and left the customer liable for the loan.
U.S. District Judge Michael A. Ponsor scheduled sentencing for April 10, 2014. Como and Peabody face a maximum sentence of 20 years in prison, three years of supervised release, and a $250,000 fine on each count of wire fraud.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Chief Robert P. Frydryk of the Palmer Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz's Springfield Branch Unit.
Beverly Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A Beverly man who sold child pornography and erotica was convicted today for mailing child pornography to a customer in Atlanta.
Stanton Hager, 67, pleaded guilty to mailing child pornography and possession of child pornography. He is scheduled to be sentenced by Judge Rya W. Zobel on April 9, 2014.
Hager operated a business selling child pornography and child erotica over the Internet. In April 2013, personnel at an Atlanta bank notified law enforcement that they received a package containing child pornography and child erotica. The package, which had been wrongly delivered to and opened by the bank, had been mailed by Hager and intended for a customer in Atlanta.
In May 2013, law enforcement obtained a search warrant of Hager’s Beverly residence where they found a collection of child pornography including videos of children and adult males engaging in sex. Also found at his residence were documents and records pertaining to Hager’s business of selling child pornography and erotica. His business webpage made reference to “boy love” as his specialty. The government indicated that after being advised of his rights by law enforcement, Hager stated that he knows child pornography is illegal, but that the government had no right to come into his home and take his pictures.
During today’s hearing, Judge Zobel inquired about releasing the defendant, who had been held in custody since his arrest, prior to sentencing. The government argued against release and informed the court that there is reason to believe that Hager has had sexual contact with children. Specifically, during the search of his residence law enforcement recovered Hager’s personal journal where he had written that he had had sexual contact with children during a stay in Thailand. The government further described that an entry in Hager’s journal described a sexual encounter with a boy in Thailand Hager believed was 11-years-old.
Hager was detained until sentencing. He faces a maximum penalty of 20 years in prison, to be followed by five years of supervised release. Under federal law, he must serve at least five years in prison.
United States Attorney Carmen M. Ortiz and Kevin M. Niland, Inspector in Charge of the U.S. Postal Inspection Service in Boston, made the announcement today. The case is being prosecuted by David Tobin of Ortiz’s Major Crimes Unit.
Administrative Assistant Charged with Theft from Cambridge Non-ProfitRead the Press Release
BOSTON – The administrative assistant of a non-profit organization was charged yesterday with stealing $118,000 from the institute.
Tysen Julian, 33, of East Hampstead, New Hampshire, was charged by Information, and has agreed to plead guilty to theft from an organization receiving more than $10,000 in federal funds in a one year period. From October 2009 through July 2013, Julian allegedly stole approximately $118,000 from a non-profit institute in Cambridge by submitting false expense reimbursements.
Julian faces a maximum sentence of 10 years in prison, three years of supervised release, $118,000 in restitution, and a $250,000 fine, or twice the gross gain or loss, whichever is greater.
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 Sara Miron Bloom of Ortiz's Economic Crimes Unit.