District of Massachusetts

BOSTON – A Holyoke man was sentenced today for embezzling $60,000 from the Boston Veteran’s Administration Research Institute (BVARI).

Riccardo D'Orsainville, 48, was sentenced by U.S. District Court Judge Rya W. Zobel to 21 months in prison, three years of supervised release, and $59,979 in restitution. In February 2014, D'Orsainville pleaded guilty to embezzlement and misuse of a passport.

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 fraudulently employing 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; 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 case was prosecuted by Assistant U.S. Attorney Shelby Wright.

BOSTON – A former postal worker was sentenced today for stealing more than 200 video games from the mail.

James L. White, 68, of Dorchester, was sentenced by U.S. District Judge Douglas P. Woodlock to 30 days in prison, three years of supervised release, and $8,000 in restitution to Gamefly. In January, White pleaded guilty to theft of mail.

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 then resold those video games to Gamestop, a videogame and software retailer, garnering himself several thousands of dollars in profit.

United States Attorney Carmen M. Ortiz and Rafael Medina, Special Agent in Charge of the United States 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.

BOSTON – The former manager of a Massachusetts electronics company was re-sentenced yesterday for illegally exporting electronics components to China.

Yufeng Wei, a Chinese national residing in Belmont, Mass., was sentenced to 23 months in prison for conspiring, over a 10 year period, to illegally export military and sophisticated electronics used in military phased array radar, electronic warfare, and missile systems to the People’s Republic of China (PRC) and illegally exporting sensitive electronic components to the PRC in violation of the Export Administration Regulations. Several Chinese military entities were among those to whom the defendant and her co-conspirators exported the equipment.

On March 19, 2013, the U.S. Court of Appeals for the First Circuit affirmed Wei’s conviction on export violations charges, for which a jury convicted her in May 2010.  The First Circuit vacated two counts of the conviction that charged Weiand her now ex-husband, Zhen Zhou Wu, with illegally exporting parts designated on the United States Munitions List because it held that the jury instructions given were constitutionally inadequate.  However, the First Circuit observed that, from 1996 until 2008, Wu and Wei, shipped tens of millions of dollars worth of sophisticated electronic components from the United States to China, with little regard for whether the parts that they sold were export-controlled.  Further, the First Circuit determined that Wu and Wei repeatedly attempted to disguise the fact that they were exporting to China and that they lacked the necessary licenses to do so.  Because two counts of conviction were vacated, the case was remanded for a re-sentencing hearing.  Wu was sentenced to 84 months in prison at his re-sentencing hearing held on Sept. 9, 2013.     

Wei50, was also sentenced to two years of supervised release.  After serving her sentence Wei, who has been residing in the United States as a Lawful Permanent Resident, will be subject to deportation. 

On May 17, 2010, WeiWu and Chitron Electronics, Inc. (Chitron-US), were convicted of conspiring from 1997 to 2007 to unlawfully export to the PRC military electronics and export restricted electronics components and illegally exporting such parts to the PRC on numerous occasions between 2004 and 2007.  The defendants’ illegal enterprise involved the use of Chitron-US, a company Wu established in Waltham, Mass., as a front company for its parent company, Chitron Electronics Company Limited, based in Shenzhen, PRC.  Wei was a “hands-on” manager at Chitron-US who oversaw the procurement of export restricted equipment from U.S. suppliers and shipment of those goods from Waltham to China, through Hong Kong without the suppliers’ knowledge.  The exported equipment is used in electronic warfare, military radar, fire control, military guidance and control equipment, missile systems, and satellite communications.  Many of Chitron’s customers were Chinese military research institutes and military entities responsible for procuring, developing, and manufacturing electronic components for China’s Army, Navy, and Air Force. 

            The Department of Defense’s Defense Technology Security Administration concluded in a report filed with the Court that the defendants’ activities in this case seriously threatened “U.S. national and regional security interests.”  According to the Department of Defense, the parts the defendants were convicted of illegally exporting are “vital for Chinese military electronic warfare, military radar, fire control, military guidance and control equipment, and satellite communications.”  The report further concluded that the illegally exported parts are “precisely the [types of] items ... that the People’s Liberation Army actively seeks to acquire.”

BOSTON – A Shrewsbury woman was sentenced today in U.S. District Court in Worcester for underreporting income on her federal tax returns.

Roberta I. Crudale Blute, 56, was sentenced by U.S. District Court Judge Timothy S. Hillman to one year probation and 100 hours of community service.  Judge Hillman further ordered her to pay $114,576 in restitution to the IRS and to cooperate with the IRS to file amended tax returns and pay the taxes owed.  In January 2014, Blute pleaded guilty to filing false federal tax returns for tax years 2007 and 2008.

Blute omitted from her tax returns hundreds of thousands of dollars in income she earned from numerous employers in 2007 and 2008.  Specifically, she failed to report income she earned from four companies in 2007 and five companies in 2008.

            United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Phillip M. Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Office of Investigations, made the announcement today.  The case was prosecuted by Amanda P.M. Strachan and Miranda Hooker of Ortiz’s Health Care Fraud Unit.

BOSTON - U.S. Attorney Carmen Ortiz announced that John T. McNeil will serve as First Assistant United States Attorney.  Mr. McNeil replaces Jack Pirozzolo who served as Ortiz’s First Assistant for more than four years.

“I am pleased to announce that John McNeil will serve as the new First Assistant United States Attorney,” said U.S. Attorney Ortiz. “I am confident that John’s breadth of legal and managerial experience will serve the Office and the District well.  I look forward to working with him in this new capacity.”

Mr. McNeil has been a public interest litigator for more than 20 years.  He has held several leadership positions under U.S. Attorney Ortiz, serving as the Deputy Chief of the Criminal Division from 2010-2012,  Acting Chief of the Major Crimes Unit, and Counsel to the United States Attorney.  

Mr. McNeil has been the lead prosecutor in a number of notable cases, including the prosecutions of State Senator Dianne Wilkerson, Boston City Councilor Chuck Turner, Massachusetts Speaker of the House Thomas Finneran, and a number of corrupt law enforcement officers, including Boston Police Officers Roberto Pulido and Jose Ortiz, and Malden Police Detective David Jordan.  Mr. McNeil also brought the first federal investigation of clergy sexual abuse of children, and reached the first criminal settlement in the nation with a Catholic diocese in In re Archdiocese of Boston.  In addition to his trial work, Mr. McNeil has briefed and argued numerous matters before the U.S. Court of Appeals for the First Circuit, and more recently, several matters before the Ninth Circuit Court of Appeals.

He joined the U.S. Attorney’s Office in 1999, after serving for nearly a decade at the U.S. Environmental Protection Agency, investigating and prosecuting complex environmental crimes.  He has also represented the United States in numerous civil environmental matters including the negotiation and litigation of multi-million dollar hazardous waste clean-up cases, emergency remedial actions, and regulatory penalty matters.  His litigation career started as an Assistant District Attorney in Norfolk County.  He recently returned to Boston after serving one year as an Assistant US Attorney in Seattle where he tried a multi-defendant international gun running and narcotics trafficking case.

Mr. McNeil currently serves as a lecturer at Boston University School of Law, and has been a speaker and taught courses at the Federal Law Enforcement Training Center, Harvard Law School and the Boston Bar Association, among others.   He earned his J.D. from Harvard Law School and his B.A. from the University of California at Berkeley.

BOSTON – A Maryland man was sentenced today in U.S. District Court in Springfield today for a number of charges related to the altering of U.S. currency in connection with a "black money" scheme.

Cole Williams, 32, of Frederick, Md., was sentenced by U.S. District Judge Michael A. Ponsor to 27 months in prison, $329,000 in restitution to five victims, and forfeiture of $329,000.
In November 2013, Williams pleaded guilty to conspiracy, wire fraud, and possession of altered U.S. currency with intent to defraud involving a fraud scheme in Springfield, Mass. Williams admitted that he perpetrated similar "black money" schemes in Billerica, Leominster, Groton, Conn., and Woonsocket, R.I.

In the charged scheme, Williams and another co-conspirator defrauded two businessmen who operated Village Pizza in Indian Orchard, Mass. Williams and his partner first offered to purchase Village Pizza with $150,000 of what they called “black money,” which they represented to be genuine U.S. currency that had been altered to appear completely black, and they said, could be converted back into genuine currency through a chemical process. They claimed the currency had been colored black as part of a plan to smuggle it back to the U.S. from Africa.

In July 2011 at Village Pizza, Williams and the co-conspirator presented the two businessmen with genuine U.S. currency that they had previously coated black, and then used chemicals and powder to remove the black coating, thereby convincing the two businessmen into believing that they really possessed hundreds of thousands of dollars in “black money.” Williams and the co-conspirator then induced the businessmen to provide them with $50,000 in cash, which they said they would use to convert more “black money” into genuine U.S. currency that they promised to give to the businessman in exchange for the pizza restaurant. Williams and the co-conspirator then pretended to use the businessmen’s $50,000 to convert their “black money,” which was simply black paper cut to the size and shape of U.S currency, and then they took the $50,000 and left the businessmen with a large amount of black paper. The co-conspirator was indicted for a similar scheme in Rhode Island, but fled prior to trial, and is a fugitive from justice.

United States Attorney Carmen M. Ortiz and Stephen Marks, Acting Special Agent in Charge of the United States Secret Service, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.

BOSTON – Enrico M. Ponzo, a/k/a Jeffrey John Shaw, a/k/a Jay Shaw, a longtime fugitive who posed as a rancher while living on the run in Idaho, was sentenced today for racketeering charges in U.S. District Court in Boston.
 
Ponzo, 45, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 28 years in prison to be followed by three years of supervised release.  In November 2013, following a seven-week-trial, Ponzo was found guilty of racketeering conspiracy, the 1989 attempted murder of Francis P. Salemme, Sr. and the 1994 attempted murder of Joseph Cirame, both of whom were shot and seriously injured.

U.S. Attorney Carmen Ortiz said, “This case should send a clear message that we take seriously our commitment to hold violent criminals accountable for their actions, even after many years on the run. The severity of today’s sentence reflects the seriousness of his actions and I believe that it adequately addresses the violent nature of his crimes.” 

The jury found Ponzo guilty of murder conspiracy in aid of racketeering, firearm possession in relation to murder conspiracy, conspiracy to distribute more than 500 grams of cocaine, conspiracy to distribute more than 1,000 kilograms of marijuana, conspiracy to use extortionate means to collect a debt, use of extortionate means to collect a debt, unlawful flight to avoid prosecution, money laundering conspiracy, money laundering, and attempted witness tampering.

BOSTON – A Maryland man was sentenced today to serve one year and a day in prison for defrauding thousands of homeowners in a $4 million nationwide home loan modification scheme. 

Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Carmen M. Ortiz of the District of Massachusetts and Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Christy Romero made the announcement. 

Brian Kelly, 37, of Forest Hill, Md., was sentenced by U.S. District Court Judge Rya W. Zobel of the District of Massachusetts and ordered to serve three years of supervised release following his prison term.  Restitution will be determined at a later date.

            Kelly pleaded guilty on May 2, 2013, to one count of conspiracy, nine counts of mail fraud and nine counts of wire fraud. 

            According to court records, Kelly 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.  Kelly was one of HOPE’s more successful salespeople, receiving approximately $24,000 after arranging fraudulent home loan modifications totaling approximately $180,000.

Also according to court documents, 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. 

According to court documents, 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.

Two co-defendants, Christopher S. Godfrey, 44, of Delray Beach, Fla., and Dennis Fischer, 42, of Highland Beach, Fla., were convicted after trial and were each sentenced on Feb. 20, 2014, to serve 84 months in prison.  A third co-defendant, Vernell Burris, Jr., 54, of Coconut Creek, Fla, pleaded guilty and was sentenced on Feb. 25, 2014, to serve a year and a day in prison.  

BOSTON – A Methuen woman was charged today in connection with offering buttock and lip augmentation injections in exchange for money.

Valentina Perez Tavarez, a/k/a Rossi Tavarez, 37, was indicted with receipt in interstate commerce of a misbranded cosmetic device and offered injection of that device for pay. Tavarez is scheduled for an initial appearance before U.S. District Magistrate Court Judge Judith G. Dein on April 29, 2014.

The Indictment alleges that between February and September 2011, Tavarez offered buttock and lip augmentation injections with a substance she referred to as “Metacor” and “Metacrill” in exchange for money. Tavarez referred to the substance as the “best stuff” that lasts “forever.” Tavarez offered to charge $700 per injection. The substance was a liquid contained in a bottle labeled “Estetical Plus 100% Natural.” The bottle bore a written description in Spanish that referred to its content as massage oil and provided directions for external skin application. The bottle did not provide any information or directions for using the substance for subcutaneous injections. The bottle had been shipped from Colombia via Federal Express. Tavarez was not a licensed physician or nurse.

If convicted, Tavarez faces a maximum sentence under the statute of one year in prison, one year of supervised release, and a $10,000 fine.

United States Attorney Carmen M. Ortiz; Mark Dragonetti, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; 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 case is being prosecuted by Maxim Grinberg of Ortiz’s Health Care Fraud Unit.

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

BOSTON – A Virginia podiatrist was sentenced yesterday for making false declarations to a grand jury about her participation in a Medicare fraud scheme.

U.S. District Court Judge Nathaniel M. Gorton sentenced Ilene Terrell, 65, of Fredericksburg, Va., to five months in prison, five months of home confinement, and two years of supervised release. He also ordered her to pay a $15,000 fine. In January 2014, Terrell pleaded guilty to four counts of making false declarations to a grand jury.

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, which costs approximately $4,000, if the medical supplier provides records demonstrating that fracture healing has ceased for three or more months.

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 in fact that was not true and Medicare should not have paid the claim. For instance, they deleted references in chart notes that the patient was using the stimulator and was healing, and they created new, fictitious notes 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 and signed Medicare Certificates of Medical Necessity falsely stating that she had ordered the stimulator at the end of the 90-day window, when in fact the patient had received the device months previously. These medical records were altered solely to ensure that Medicare paid Orthofix for bone stimulator claims that did not satisfy the program’s payment rules.

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, 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 “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 representative stated that he did not know what the investigation was about.

Subsequent to her testimony, after learning that her practice administrator had provided truthful, damaging testimony to the grand jury, Terrell fired this employee after 23 years of service.

In addition to the Terrell sentence, the Orthofix investigation has to date resulted in a number of felony charges against employees and contractors of Orthofix, including the following:

• On Dec. 14, 2012, Orthofix was convicted of obstruction of a federal audit and paid approximately $42 million in criminal fines and civil payments, and was sentenced to probation for five years;
• On Jan. 22, 2013, Thomas Guerrieri, the former Orthofix Vice President of Sales, was sentenced to eight months in prison and was ordered to pay $50,000 in forfeiture and fines for paying kickbacks to health care professionals;
• On July 19, 2012, Michael Cobb, a physician’s assistant, was sentenced to six months in prison, six months home confinement and ordered to forfeit $10,000 and pay a $3,000 fine for accepting kickbacks from Orthofix;
• On Aug. 9, 2013, Hunter Rigsby, a former Orthofix Territory Manager, was sentenced to eight months in prison and ordered to pay $75,000 in criminal fines and forfeiture for committing Medicare fraud and paying kickbacks;
• On Jan. 31, 2013, Mitchell Salzman, a former Orthofix Regional Manager, was sentenced to three months of home confinement and one year of probation for committing perjury;
• On Jan. 9, 2013, Derrick Field, a former Orthofix Territory Manager, was sentenced to five months of home confinement as part of a two year probation sentence, in addition to paying $44,000 in forfeiture and fines for committing health care fraud;
• On Jan. 23, 2013, Michael McKay, a former Orthofix Territory Manager, was sentenced to three months home confinement, one year probation and paid $13,000 in forfeiture and fines for committing health care fraud;
• On Sept. 28, 2012, Brian Racey, a former Orthofix Territory Manager, was sentenced to one day in prison, six month of home confinement, two years of supervised release, and a $2,500 fine for committing health care fraud; and
• Michael Jenkins, a former Orthofix Territory Manager, has agreed to plead guilty to committing health care fraud.

United States Attorney Carmen M. Ortiz and Philip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Office of Investigations, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys David S. Schumacher and Miranda Hooker of Ortiz’s Health Care Fraud Unit.

BOSTON – Warrants were recently unsealed in U.S. District Court detailing the seizure of radio transmission equipment used by three pirate radio stations: 100.1 FM, broadcasting from Everett, Mattapan, and Brockton, with a studio in Dorchester; Touch 106.1 FM, broadcasting from Boston; and 88.7 FM, broadcasting from Brockton.

It is alleged that all three stations were operating without a license from the Federal Communications Commission (FCC). Separate civil actions were brought seeking forfeiture of the equipment because it was allegedly used in violation of federal law.

According to affidavits filed with the court, the FCC issued multiple warnings to the illegal operators at the above addresses, but the radio stations continued to broadcast. The forfeiture actions were brought after complaints were received, including a complaint from a licensed broadcaster about interference with its radio signal.

“As prosecutors we work in conjunction with the FCC’s Enforcement Bureau to identify violators of federal communications law,” said United States Attorney Carmen M. Ortiz. “It is a public safety hazard for illegal radio stations to broadcast, potentially interfering with critical radio communications.

“Like any member of the community, the operators of these illegal stations could have applied for free low power radio licenses and operated their stations in compliance with the law. When they choose to operate illegally, and continue those operations after being warned multiple times, action must be taken,” added U.S. Attorney Ortiz.

Since 2011 the U.S. Attorney’s Office has filed eight forfeiture actions against illegal radio stations in the greater Boston area, effectively shutting down all eight stations.

The Communications Act of 1934 prohibits the operation of radio broadcasting equipment above certain low-intensity thresholds without a license issued by the FCC. The Act authorizes the seizure and forfeiture of any electronic or radio frequency equipment used to broadcast without an FCC license. The number of available radio frequencies is limited, and unlicensed broadcasting can interfere with the broadcasting of legitimate licensed radio stations, potentially causing chaos in the radio spectrum.

Said Acting FCC Enforcement Bureau Chief Travis LeBlanc, “Like driving a car, radio broadcasting requires a license, permit, or other government authorization. This week’s seizures by FCC agents and U.S. Marshals ensure that everyone who uses the public airwaves follows the same rules.”

Federal officials seized the equipment on April 16 and 17, 2014. Officials seized equipment operated by the radio station using frequency 100.1 MHz at the station’s last known addresses on Walnut Street in Everett, Outlook Road in Mattapan, N. Manchester Street in Brockton, and Gallivan Boulevard in Dorchester. Equipment operated by the radio station using frequency 106.1 MHz was seized at the station’s last known addresses on Cheney Street and Blue Hill Avenue in Boston. Lastly, equipment operated by the radio station using frequency 88.7 MHz was seized at the station’s last known address on Crescent Street in Brockton.

U.S. Attorney Ortiz and Chief LeBlanc made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Christine Wichers of Ortiz’s Civil Division. The seizures were conducted by the United States Marshals Service and the FCC.

BOSTON – A Lawrence man was convicted yesterday for being a previously convicted felon in possession of a firearm.

Germaine M. Rivera, 20, pleaded guilty today to being a previously convicted felon in possession of a firearm. Sentencing is scheduled for July 15, 2014. Rivera faces up to 10 years in prison, three years of supervised release, and a $250,000 fine.

On May 20, 2013, officers responded to a call of suspicious activity on Auburn Street in Methuen and observed two individuals approaching a previously parked white Toyota. One of the individuals, later identified as Rivera, was observed throwing a small black object into the bushes near the Toyota. The officers located a .22 caliber Beretta semi-automatic firearm which was loaded with six rounds of .22 caliber ammunition and had an obliterated serial number. Both the firearm and ammunition were manufactured outside of Massachusetts.

United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Methuen Police Chief Joseph Solomon, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Kenneth G. Shine and Maxim Grinberg of Ortiz’s Major Crimes Unit.

BOSTON – A Ware man pleaded guilty today to defrauding the Social Security Administration of more than $50,000.

Carl Lynch, 43, pleaded guilty before U.S. District Court Judge George A. O’Toole, Jr. to theft of public money. In March 2014, he was charged in a felony Information. Sentencing is scheduled for July 22, 2014.

In 2003, Lynch began receiving Social Security disability benefits. In 2007, however, while still collecting disability benefits, Lynch began working under another man’s identity as a personal care provider for an elderly person in Rehoboth. Lynch’s income from this job, which averaged about $80,000 per year, would have made him ineligible to receive disability benefits. Lynch did not report this work to the Social Security Administration (SSA), and, in fact, in February 2013, he falsely told SSA that he had not worked since 1998. In December 2013, Lynch admitted to investigators that he worked under a false identity to conceal his income from SSA. Through this scheme, Lynch received $50,264 in benefits that he would not have received if Social Security had been aware of his actual work and income.

United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Lieutenant James J. Trombetta, Acting Chief of Police of the Rehoboth Police Department, made the announcement today. The case is being prosecuted by Special Assistant United States Attorney Timothy Landry of Ortiz’s Major Crimes Unit.

BOSTON – A Connecticut man was charged today with attempting to engage a 14-year-old in sexual activity.

Paul R. Hinkel, 56, of Chester, Conn., was indicted on charges that he induced and coerced, and attempted to induce and coerce, a minor to engage in sexual activity.

In February 2014, federal undercover agents in Boston placed an advertisement on Craigslist purportedly as a mother seeking an adult interested in a “taboo relationship” with her daughter. Hinkel responded that he was interested, even after the purported mother disclosed that the daughter was only 14-years-old. Hinkel proceeded to engage in email communications with the purported mother, detailing the sexual activities in which he would engage with the minor “daughter”. On March 19, Hinkel traveled from his home in Chester to Watertown, Mass., for the purpose of having sex with a minor. Upon his arrival at the designated meeting place, he was arrested by federal agents. At the time of his arrest, Hinkel was carrying a bag which contained sexual paraphernalia, men’s cologne, and a stuffed animal for the minor.

If convicted, Hinkel faces a statutory mandatory minimum term of 10 years in prison, a minimum of five years and a maximum of a lifetime of supervised released, and a $250,000 fine.

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. Assistance was also provided by the U.S. Attorney’s Office in Connecticut, HSI Connecticut, the Massachusetts State Police, and the Watertown Police Department. The case is being prosecuted by Assistant U.S. Attorney Eve A. Piemonte Stacey 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.

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

BOSTON – A Cambridge elementary school teacher was charged today with transporting child pornography.

Josh Wairi, 27, of Somerville, was arrested and charged in a criminal complaint with transportation of child pornography. Wairi is being held without bail pending a detention and probable cause hearing which is scheduled for April 23, 2014 at 2:30 pm.

The complaint alleges, among other things, that Wairi, a fifth grade teacher, used his email account to trade and receive images of child pornography and also uploaded images and videos of children being sexually exploited. The complaint further alleges that Wairi transferred the images and videos of child pornography to other users.

If convicted, Wairi faces a mandatory minimum sentence of five years and a maximum of 20 years of in prison, a mandatory minimum of five years and a maximum of a lifetime of supervised release, and a $250,000 fine.

United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Acting Somerville Chief of Police Charles Femino, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.

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

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

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

BOSTON - A West Roxbury man was charged on April 10, 2014, with criminal contempt for violating an asset freeze and other court orders entered in a civil case brought by the United States Securities and Exchange Commission.

Steven Palladino, 57, was charged in an Information with twenty-five counts of criminal contempt.

The Information alleges that from May 2013 through November 2013, Palladino willfully violated court orders in the United States Securities and Exchange Commission’s civil case when he incurred thousands of dollars in credit card charges and cash advances – including charges at high-end restaurants – and did not deposit the proceeds of cash advances into an escrow account established by the Court. In addition, Palladino is alleged to have violated the same court orders in June 2013 when he sold a truck he owned and did not deposit the proceeds into the escrow account established by the Court. The Information also alleges that Palladino violated another court order that commanded Palladino to undo his transfers of luxury vehicles to his wife and the subsequent encumbrance of those luxury vehicles with approximately $137,000 in new loans by November 22, 2013.

United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. United States Attorney Ortiz also expressed appreciation for the significant assistance of the United States Securities and Exchange Commission. The case is being prosecuted by Ryan M. DiSantis of Ortiz’s Economic Crimes Unit.

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

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

BOSTON – A Rhode Island man pleaded guilty today for failing to register as a sex offender last year.

Ryan Hathaway, 32, pleaded guilty before U.S. District Court Judge Rya W. Zobel to failure to register as a sex offender. In March 2014, Hathaway was indicted. Sentencing is scheduled for July 16, 2014.

In 2004, Hathaway pleaded guilty in Massachusetts state court to indecent assault and battery on a child under age 14. This conviction required him to register as a sex offender. In 2012, he was convicted in Massachusetts state court for failure to register as a sex offender, and was incarcerated. After being released in October 2013, Hathaway briefly stayed at a shelter in Boston. On November 5, he left the shelter and his GPS tracking bracelet was found on a street in Boston the following day. On Dec. 7, 2013, Hathaway was arrested in Pawtucket, R.I. Investigators later learned that Hathaway had been living in Rhode Island for about a month without registering as a sex offender.

United States Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal of the U. S. Marshals Service, District of Massachusetts, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.

BOSTON – A Chelsea man was charged today with conspiring to fraudulently issue identification documents and aggravated identify theft.

Leonel Sanchez, 52, was indicted in connection with a scheme to produce false identification documents. From December 2012 through January 2013, it is alleged that Sanchez bribed an employee of the Massachusetts Registry of Motor Vehicles in connection with a scheme to issue Massachusetts driver’s licenses to individuals who presented fraudulently obtained, but valid, Puerto Rican identification documents in identities other than their own.

This indictment is the most recent development in investigations involving identity theft and public corruption relating to the Massachusetts Registry of Motor Vehicles.

United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts States Police; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Cheryl Garcia, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, New York Regional Office, made the announcement today. The case is being prosecuted by Eugenia M. Carris of Ortiz’s Public Corruption Unit.

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

BOSTON - A Worcester man pleaded guilty today in U.S. District Court in Worcester today to participating in a scheme to steal more than $110,000 from the federal government.

Marvin Lubin, 22, pleaded guilty before U.S. District Court Judge Timothy S. Hillman to theft of public money. In March 2014, Lubin was charged in a felony information. Sentencing is scheduled for July 7, 2014.

In early 2013, Lubin and a co-conspirator, Sniders Jean-Jacques, recruited several individuals to work as couriers in a scheme to steal and launder Social Security and IRS tax refund payments. Lubin hosted a meeting in his home in Worcester, which included Jean-Jacques and several of the couriers. At the direction of Lubin and Jean-Jacques, the couriers opened bank accounts in Massachusetts in the names of fake businesses. On various dates in 2013, illegally obtained Social Security benefits and IRS refunds were directly deposited into the accounts. At the direction of Lubin or Jean-Jacques, the couriers immediately withdrew the money in cash, and then delivered the cash as instructed by Lubin or Jean-Jacques. In some instances, couriers brought cash directly to Lubin. Jean-Jacques or Lubin would typically authorize the couriers to retain a portion of the stolen money as payment for their courier services.

On Oct. 10, 2013, during the execution of a search warrant of Lubin’s home, law enforcement agents recovered, among other things, a debit card associated with one of the bank accounts opened in the name of a fake business, and a list of 375 names, dates of birth, and Social Security numbers. On the same date, law enforcement agents interviewed Lubin, who admitted to his role in this scheme. Jean-Jacques was arrested on March 18, 2014.

The investigation so far has determined that as part of this scheme, Social Security payments totaling $11,689 were illegally obtained under the identities of 14 victims, and IRS payments totaling $98,610 were illegally obtained under the identities of 20 victims.

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; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Stephen Marks, Acting Special Agent in Charge of the U.S. Secret Service; Phillip Coyne, Special Agent in Charge of U.S. Health and Human Services, Office of the Inspector General, Office of Investigations; and Chief Gary J. Gemme of the Worcester Police, made the announcement today. The case is being prosecuted by Timothy Landry of Ortiz’s Major Crimes Unit.

BOSTON - A North Carolina woman, formerly of Boston, was convicted for stealing more than $179,000 in benefit payments from the Social Security Administration.

Mary Ann Allen, 75, pleaded guilty today before U.S. District Court Judge Denise J. Casper to theft of public money. Sentencing is scheduled for July 16, 2014.

The Social Security Administration (SSA) began an investigation regarding disability benefit payments that were being paid to a deceased individual since June 1973. In 1983, those benefits were converted into retirement benefits. In 1982, the individual and Allen opened a joint bank account with Bank of America to which the individual’s SSA benefit checks were deposited. The only signatories on the account were the individual and Allen’s. Until November 2009, the SSA continued depositing the individual’s benefits, ranging in installments between $400 and $827, into that account.

Further investigation by the SSA revealed that on August 24, 1984, the individual died. However, because the SSA was not notified of individual’s death, benefit payments were deposited until November 2009. During that period of time the SSA deposited $179,926 into the account. Between August 1984 and November 2009, Allen withdrew these funds in Massachusetts and North Carolina and used them for personal use.

In 2010, Allen was interviewed by SSA agents in North Carolina when she admitted that after the individual’s death she continued to receive his benefit payments and continued to withdraw the funds.

Allen faces up to 10 years in prison, three years of supervised release, a fine of up to $250,000 and $179,926 in restitution to the Social Security Administration.

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

BOSTON – The office manager of a sober house in Attleboro was charged today with possessing child pornography.

Michael Paterson, 53, was charged via a criminal complaint with possession of child pornography. Paterson remains in custody and is scheduled for a probable cause detention hearing on April 18, 2014 in the U.S. District Court in Worcester.

The criminal complaint alleges that Paterson was observed viewing child pornography by a resident of the sober house on two occasions. A search warrant was executed at the residence and uncovered multiple computers, CPU units, hard drives, thumb drives, CDs, DVDs, and printers containing pictures of children being sexually exploited. Additionally, a lock-box containing a black stun gun and $71,502 was seized. A second search warrant was executed on Paterson’s car and multiple computer storage devices, printed images of children being sexually exploited, and $1500 was recovered.

United States Attorney Carmen M. Ortiz; Shelly Binkowski, Special Agent in Charge of the U.S. Postal Inspection Service; and Attleboro Police Chief Kyle P. Heagney, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.

The details contained in the criminal 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.

BOSTON – A former attorney practicing in Boston was sentenced today for his involvement in a mortgage fraud scheme that resulted in more than $2.5 million in losses.

Charles R. Sammon, 37, of West Pittston, Pa., was sentenced today by U.S. District Court Judge Richard G. Stearns to 33 months in prison, 36 months of supervised release and $977,042 in restitution to defrauded lenders. In November 2013, Sammon pleaded guilty to wire fraud, mail fraud and unlawful monetary transactions.

Sammon participated in at least 13 fraudulent real estate transactions involving triple-decker apartment buildings in various sections of Boston, including Dorchester, Roxbury, and Jamaica Plain. For eight of those transactions, Sammon served as the real estate closing attorney representing the mortgage lender. For the other five, Sammon participated as the seller of real property himself. The basic scheme involved recruiting people to buy properties by promising to pay them as much as $40,000 per transaction, which was not disclosed to the lenders. Many of the buyers were also promised that the seller would pay the mortgage for upwards of a year. Also central to the scheme was telling the lenders that each borrower intended to occupy the property as their primary residence, which was not true.

Many of the payments to buyers were made directly from Sammon’s law firm bank account on transactions for which he was the closing attorney, but he failed to disclose those payments to the mortgage lenders that he represented. Sammon also received some of the loan proceeds in addition to his legal fees for doing so, which was also not disclosed to the lender. In one transaction, he received more than $50,000.

Each of the loans given for these 13 transactions went into default, usually 12-18 months after the transaction, and all the properties were sold at foreclosure or through a short sale, resulting in combined losses to the lenders of more than $2.5 million.

United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in New England; Shelly Binkowski, Inspector in Charge of the United States Postal Inspection Service; Steven Marks, Acting Special Agent in Charge of the United States Secret Service; and Fred Gibson, Acting Inspector General of the Federal Deposit Insurance Corporation, Office of Inspector General, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz's Economic Crimes Unit and DOJ Trial Attorney Alexander H. Berlin.

BOSTON – A Worcester tax return preparer was charged yesterday with preparing false tax returns.

Nydia Elicier, 55, was indicted on seven counts of aiding and assisting in the preparation of false tax returns. The indictment alleges that Elicier prepared individual federal tax returns for clients at Cox Elicier Tax, a Worcester business that she operated with her daughter, Jenniffer Cox Elicier. The allegations are that Nydia Elicier inserted false information into her clients’ Form 1040 returns, including false adjustments and Schedule A deductions such as medical and dental expenses, gifts to charity, educator expenses, and other unreimbursed employee expenses. In so doing, Elicier generated illegal refunds for her clients. In January 2014, Jenniffer Cox Elicier pleaded guilty to the offense.

If convicted, Elicier faces a statutory maximum penalty of three years in prison, one year of supervised release and a $100,000 fine.

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. The case is being prosecuted by Lori J. Holik, Chief 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.

BOSTON - A Braintree man was charged yesterday for selling narcotics from a pharmacy.

Daniel McPeck, 27, was charged with robbery involving a controlled substance.
According to the indictment, in April 2013, police officers responded to a Rite Aid on Pearl Street in Braintree in response to an armed robbery.  Witnesses reported that McPeck entered the pharmacy carrying a plastic bag and a gun.  The charges further allege that McPeck announced that a robbery was occurring, and ordered the pharmacist to put all the narcotics in the safe into the plastic bag he was carrying.  He then fled through a back door.

If convicted, McPeck faces a maximum sentence of 25 years in prison, a maximum of five year of supervised release and a $250,000 fine.

United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Braintree Police Chief Russell W. Jenkins, made the announcement today.  The case is being prosecuted by Eve A. Piemonte Stacey 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.

BOSTON – A Boston man was sentenced today for the 2012 robbery of an ATM in Boston’s South End.

Terry K. Leigh, 47, was sentenced by U.S. District Court Judge Dennis F. Saylor today to 30 months in prison, three years of supervised release, and ordered to pay $58,000 in restitution to the Bank of America.  In January 2014, Leigh pleaded guilty to bank burglary.

On Aug. 11, 2012, federal agents and detectives were conducting surveillance on a Bank of America ATM located at 465 Columbus Avenue, Boston, as part of an ongoing investigation into ATM burglaries.  At approximately 9:45 p.m. the agents observed two individuals enter the lobby of an apartment building located next to the ATM.  Access to the ATM’s “money room” is gained through a locked security door within the apartment building’s lobby.  One of the individuals, later identified as Leigh, was carrying a green duffle bag and wearing a blue hat, a gray shirt, dark sweatpants and what appeared to be a fake black beard.  After a few minutes, both individuals left the apartment building, exiting onto Columbus Avenue.  Leigh then reentered the apartment building.  The agents, believing that the ATM was about to be robbed, gained access to the building’s lobby and observed Leigh exiting the ATM’s money room.  Leigh fled up an adjoining staircase and was captured a short time later on the roof.  Following Leigh’s arrest, the agents located the green bag containing various cutting tools, the blue hat and the fake beard which Leigh had been wearing. The ATM, which sustained significant damage, contained in excess of $240,000.

BOSTON - A Hyde Park man was indicted yesterday, charged with producing child pornography.

Geraldo Christiano DeSouza, 42, was indicted on possession of child pornography, distribution of child pornography, production of child pornography, and two counts of coercion and enticement of a minor.

In October 2012, an undercover officer accessed a peer-to-peer file sharing program and located a host computer that offered files indicative of child pornography for sharing.  Two of the files downloaded by the officer contained child pornography.  A search warrant was executed at DeSouza’s apartment, and officers seized four laptops and other computer media from his room.  The indictment alleges that child pornography was found on all four laptops, as well as evidence that DeSouza had engaged in sexual activity with minors.  DeSouza also "chatted" with these minor victims using various forms of social media and webcam, and directed the minors to display themselves in a sexually explicit manner. Using his cell phone, DeSouza allegedly also filmed himself having sexual intercourse with minors.

If convicted, DeSouza faces a maximum of 10 years in prison on the charge of possession of child pornography; a mandatory minimum of five years and a maximum of 20 years in prison on the charge of distribution of child pornography; a mandatory minimum of 15 years and a maximum of 30 years in prison on the charge of production of child pornography; and a mandatory minimum of 10 years and a maximum of a lifetime in prison on the charge of coercion and enticement of a minor.  DeSouza also faces a minimum of five years and a maximum of a lifetime of supervised release and a $250,000 fine on each count.  

United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Evans, made the announcement today.  The case is being prosecuted by Eve A. Piemonte Stacey 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.

BOSTON – A Lynn man, who is allegedly a member of the Magnolia Street Steelers gang, was arrested today for drug trafficking in North Andover. The arrest marks the 44th individual charged in the multi-phase investigation dubbed "Operation Whiplash."

On Sept. 25, 2013, Tyrone Shepherd, a/k/a Pooh, 30, was indicted on charges of conspiracy to distribute cocaine base and four counts of distribution of cocaine base. Operation Whiplash was a wide-ranging FBI Gang Task Force investigation of several gangs in and around Lynn and Revere. Operation Whiplash is the successor investigation to Operation Melting Pot which, in 2010, resulted in 62 Lynn gang leaders, members, and associates of the Avenue King Crips, Bloods, Gangsta Disciples, Deuce Boyz/Soldiers, and Latin Kings being charged in federal and state court. More than 40 guns were seized.

The goal of Operation Whiplash was to target the gangs and gang members who remained in and around Lynn, before they were able to fully reconstitute and seize power in the vacuum created by Operation Melting Pot. Operation Whiplash has resulted in state and federal charges against 44 leaders, members and associates of the Money Over Broken Bitches (M.O.B.B.) street gang in Lynn, the Bloods in Revere, and other gangs. These individuals, including 27 federal defendants, face drug, firearms, and witness tampering charges. Operation Whiplash also resulted in the seizure of 16 firearms.

According to the detention affidavit filed today, Shepherd is a member of the MIC (Magnolia, Intervale and Columbia) Street Gang, also known as the Magnolia Street Steelers. Shepherd has a tattoo of the insignia of the Pittsburgh Steelers, which is also a symbol of the gang. On Sept. 25, 2013 the FBI issued an arrest warrant and offered a reward of $5,000 for information leading directly to his arrest.

If convicted, Shepherd faces a statutory mandatory minimum sentence of five years and a maximum of 40 years in prison; a mandatory minimum term of four years and up to a lifetime of supervised release; and a $5 million fine on the charge of conspiracy to distribute cocaine base. If convicted on the charge of distribution of cocaine base, Shepherd faces a maximum of 20 years in prison, a mandatory minimum term of three years and up to a lifetime of supervised release; and a $1 million fine.

United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben of the Massachusetts State Police; Essex County District Attorney Jonathan Blodgett, and Chief Kenneth L. Santoro of the Lynn Police Department, made the announcement today. Operation Whiplash was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, Essex Sheriff’s Office, Revere Police Department, Chelsea Police Department, North Andover Police Department, Suffolk County District Attorney’s Office, and the Massachusetts Department of Corrections. The case is being prosecuted by Assistant United States Attorneys Peter Levitt and Timothy A. Moran of Ortiz’s Strike Force Unit.

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

BOSTON - A former Cambridge resident was charged today with defrauding mortgage lenders.

Mark J. Zimny, 42, was previous indicted on five counts of wire fraud, five counts of unlawful money laundering and two counts of federal tax violations. Today’s superseding indictment charges Zimny with two additional counts of bank fraud in connection with real estate mortgage loans. The previous charges, filed in January 2013, allege that Zimny defrauded business clients, engaged in unlawful monetary transactions and failed to report income on federal tax returns.

The superseding indictment alleges that Zimny owned and operated a business called IvyAdmit Consulting Associates that claimed to assist students in obtaining admission to elite American prep schools, colleges and universities. Zimny told a couple from Hong Kong that if they provided him large funds to give to schools in New England for "development contributions" he could influence admissions decisions to the schools on behalf of their two children. The indictment alleges that Zimny took the funds but never delivered them to schools as promised, and instead used the funds, in excess of $600,000, for his own purposes.

The new bank fraud charges allege that Zimny set out to defraud mortgage lenders by using misrepresentations and false documents in his loan applications to purchase real estate in Massachusetts, New York and California. Additionally, it is alleged that Zimny failed to report income he received in 2008 and 2009.

If convicted, Zimny faces a maximum sentence of 20 years in prison, three years of supervised release and a $250,000 fine on each count of wire fraud; 10 years in prison, two years of supervised release and a $250,000 fine on each count of money laundering; 30 years in prison, five years of supervised release and a $1 million fine on each count of bank fraud; and three years in prison, one year of supervised release and a $250,000 fine on each count of tax violation.

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

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

BOSTON - A Hyde Park male pleaded guilty today to transporting a woman from Massachusetts to New Jersey, Vermont and Pennsylvania for the purpose of prostituting the woman.

Darrell B. Graham, a/k/a Diamond, 51, pleaded guilty to transporting a woman to engage in prostitution. In September 2012, Graham was indicted. Sentencing is scheduled for July 23, 2014.

At the change of plea hearing, the government stated that Graham promised the 19-year-old victim money and dreams of a better life. Instead, Graham took the victim’s identification documents, posted her picture on the Internet, instructed her to cut ties with her family and friends, and for the next two months prostituted the victim in hotel rooms located in Massachusetts and elsewhere. Graham never paid the victim, and instead caused her to engage in prostitution by a coercive scheme that included placing the victim in fear and using violence and threats of violence. Specifically, Graham pleaded guilty to transporting the victim from Massachusetts to New Jersey on Aug. 18, 2011, to Vermont on Sept. 19, 2011, and to Pennsylvania on Sept. 24, 2011.

The plea agreement, if accepted by the judge, calls for a sentence of 10 to 15 years in prison, three years of supervised release, and fines, restitution and forfeiture in amounts to be determined at sentencing.

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 Kristina E. Barclay and S. Theodore Merritt of Ortiz’s Civil Rights Enforcement Team.

BOSTON – A former employee of the Massachusetts Registry of Motor Vehicles was sentenced today for his role in a conspiracy to produce false information documents.

Alexander Brewer, 25, of Boston, was sentenced by Senior U.S. District Judge Mark L. Wolf to 24 months of probation and a $3,000 fine. In May 2013, Brewer pleaded guilty to conspiracy to produce false identification documents. From December 2011 through December 2012, Brewer issued Massachusetts driver=s licenses to individuals who presented legitimate Puerto Rican identity documents, in an identity other than their own, to obtain driver=s licenses for the purpose of concealing their true identities.

United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Cheryl Garcia, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, New York Regional Office, made the announcement today. The case is being prosecuted by Eugenia M. Carris of Ortiz’s Public Corruption Unit.

BOSTON - An Iowa man pleaded guilty to federal child exploitation charges moments before his jury trial began this morning.

Joshua Dunfee, 32, of Oxford Junction, Iowa, pleaded guilty before U.S. District Court Chief Judge Patti B. Saris to the coercion and enticement of a child to engage in illicit sexual activity and the sexual exploitation of a child to produce child pornography. Sentencing is scheduled for June 27, 2014. Dunfee faces a mandatory minimum sentence of 15 years and a maximum of 40 years in prison, a maximum of a lifetime of supervised release and a $250,000 fine. Dunfee has been in custody since his arrest in November 2011.

Dunfee posed as “John” from “Hunt Photography” on Facebook and communicated with a Massachusetts mother who was seeking employment as a model and believed Hunt Photography to be a legitimate business. In October 2011, Dunfee contacted the mother and told her that Hunt Photography had a client willing to pay $20,000 for a mother-daughter bikini modeling contract. Dunfee told the mother that in order to apply she would need to audition her daughter for him immediately and persuaded the mother to take her minor daughter out of school.

At Dunfee’s further direction, the mother placed her daughter on webcam for him to view for a 48-minute video call. During this time, Dunfee was able to see and hear the mother and her minor daughter, but they were unable to see or hear him. During the “audition,” Dunfee directed via instant messenger that the minor be posed for him—first in a bra and underwear and then completely naked. Dunfee knew that the girl was a minor.

On Nov. 3, 2011, federal agents executed a federal search warrant at Dunfee’s residence, where law enforcement had traced the illicit conduct via IP address records. A forensic examination of Dunfee’s computers (obtained during the execution of the search warrant) revealed various activities consistent with the use of certain platforms to communicate while posing as Hunt Photography, including Facebook, Skype, and Windows Live Messenger Chat.

United States Attorney Carmen M. Ortiz, Assistant Attorney General David A. O’Neil of the Department of Justice’s Criminal Division, and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. The case was investigated by the U.S. Postal Inspection Service, the Jones County (IA) Sheriff's Office, the Massachusetts State Police, the Attleboro Police Department, and the Department of Justice’s High Technology Investigative Unit. Substantial assistance was provided by the U.S. Attorney's Office for the District of Iowa. The case is being prosecuted by Assistant U.S. Attorneys Stacy Dawson Belf and David Tobin of Ortiz's Major Crimes Unit and Trial Attorney Herbrina Sanders of the Department of Justice Child Exploitation & Obscenity Section.

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

BOSTON – A Cambridge man was indicted yesterday on child pornography charges.

James E. Schultz, 61, was charged with possession of child pornography and two counts of distribution of child pornography. The indictment alleges that in March 2014, Schultz possessed child pornography and that on various dates in 2013, he distributed visual depictions of minors engaged in sexually explicit conduct.

If convicted, Schultz faces a mandatory minimum term of five years in prison on the charge of distribution of child pornography, a maximum of 20 years in prison on the charge of possession of child pornography, a mandatory minimum of five years and a maximum of a lifetime of supervised released, and a $250,000 fine on each count.

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. Assistance was also provided by the Woburn Police Department. The case is being prosecuted by Eve A. Piemonte Stacey 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.

The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys= Offices and the Criminal Division=s 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/.

BOSTON - Two men pleaded guilty yesterday to conspiring to defraud the government in connection with the renovation of the John W. McCormack Post Office and Courthouse in Boston.

Wael Isreb, 55, of Wrentham and Aluisio Dasilva, 67, of Hudson, Mass., pleaded guilty before United States District Court Judge George A. O’Toole, Jr., to conspiracy to commit mail fraud and false statements. Isreb and Dasilva are scheduled to be sentenced on July 17 and 15, respectively.

Isreb operated Taunton Forms, a now-defunct concrete construction company based in Lakeville, Mass. DaSilva was employed by Taunton Forms as a cement mason. In 2006, the Government Services Administration (GSA) retained Suffolk Construction Company as the general contractor to renovate the McCormack Building. Suffolk Construction, in turn, retained Taunton Forms as a subcontractor to perform certain concrete work on that project. Suffolk Construction ultimately paid Taunton Forms in excess of $1 million for its work.

Federal law requires that contractors on federal projects over $2,000 pay workers a prevailing wage, and that they submit weekly reports certifying the wages they paid their employees. Beginning in December 2007, however, Isreb, DaSilva and others conspired to pay Taunton Forms workers less than the prevailing wage while certifying to Suffolk Construction, the GSA, and the United States Department of Labor (DOL) that Taunton Forms was, in fact, paying the prevailing wage.

As part of the conspiracy, the defendants agreed to report, falsely, to the Massachusetts Department of Unemployment Assistance (DUA) that DaSilva and other workers had been laid off. That permitted the workers to offset their lower wages with unemployment benefits while they worked on the McCormack Building project and other projects. The conspiracy also permitted Taunton Forms to avoid making fringe benefit payments to certain labor union benefit plans that it was required to pay pursuant to its applicable collective bargaining agreements. Taunton Forms also failed to withhold applicable payroll taxes.

The maximum sentence under the statute is five years in prison, three years of supervised release and a fine of $250,00 or twice the gross gain or loss. Pursuant to their plea agreements, Isreb and DaSilva are also required to pay restitution to the government and the labor unions that were defrauded as a result of the conspiracy.

United States Attorney Carmen M. Ortiz; Cheryl Garcia, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, New York Regional Office; Luis A. Hernandez, Special Agent in Charge of the U.S. General Services Administration, Office of Inspector General, Office of Investigations; Susan A. Hensley, Regional Director of the Employee Benefits Security Administration, U.S. Department of Labor, Boston Regional Office; 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 United States Attorney Stephen E. Frank of Ortiz’s Economic Crimes Unit.

BOSTON – A New Hampshire man was charged today with attempting to coerce a minor to engage in sexual activity.

Karl W. Leeman, 46, of Milford, N.H., has been indicted on charges that he induced and coerced, and attempted to induce and coerce, a minor to engage in sexual activity.

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

If convicted, Leeman faces a statutory mandatory minimum term of 10 years in prison, a minimum of five years and a maximum of a lifetime of supervised released, and a $250,000 fine.

United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs enforcement’s Homeland Security Investigations in Boston, made the announcement today. Assistance was also provided by HSI Manchester, the Massachusetts State Police, the Watertown Police Department and the Milford, N.H. Police Department. The case is being prosecuted by Eve A. Piemonte Stacey 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.

The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys= Offices and the Criminal Division=s 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/.

BOSTON – A disbarred Somerset attorney was indicted today on fraud charges arising out of his promotion of various fraudulent investments.

John Silvia, 55, purportedly the “Managing Member” of Richardson Consulting, LLC, was charged with securities, mail and wire fraud. He was arrested on Feb. 7, 2014.

Silvia, who was licensed to practice law in Massachusetts in 1975, has been disbarred since 2003. He was charged based on his promotion of various fraudulent investments, including investments in real estate and Advance Space Monitor, LLC (ASM), a technology company with which he was affiliated. According to the indictment, Silvia obtained money from various individuals based on false representations regarding certain real estate transactions and his purported ability to transfer interests in ASM. Specifically, Silvia issued promissory notes based on the false representation that he was investing the money in real estate transactions that would yield profits within a short amount of time, thereby allowing him to re-pay the notes. In fact, Silvia was not engaged in such transactions. Silvia also falsely represented that he was entitled to receive shares in ASM in exchange for investment money. In fact, Silvia was not entitled to receive shares of ASM, as he had represented, and was not permitted to assign any interests in ASM.

If convicted, Silvia faces the statutory maximum penalties for the securities fraud charges are 20 years in prison, five years of supervised release and a $5 million fine. 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.

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 Massachusetts Securities Division, which filed an administrative complaint charging Silvia with violation of Massachusetts securities laws, referred this case to the U.S. Attorney’s Office and cooperated with the criminal investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah E. Walters of Ortiz’s Economic Crimes Unit.

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

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

U.S. Attorney Carmen Ortiz spoke at Boston College Law School on March 26 as a part of a speaker series for Diversity and Inclusion, presented by the Boston College Latin American Law Students Association. “From Tough on Crime to Smart on Crime” was the theme of the night, where USA Ortiz spoke about her path to becoming the first female Hispanic U.S. Attorney for the District of Massachusetts and the USAO’s commitment to implementing the DOJ’s “Smart on Crime” initiative. “Smart on Crime” emphasizes smarter approaches to federal prosecution while modernizing the criminal justice system. She is pictured here with Tracey West, Boston College’s Associate Dean for External Relations, Diversity and Inclusion.

BOSTON – A Mattapoisett woman pleaded guilty today in connection with her theft of nearly $320,000 from two Middleboro businesses.

Marie Greany, 43, pleaded guilty before U.S. District Court Judge Rya W. Zobel to wire fraud. Sentencing is scheduled for June 25, 2014 at 2:00 pm. Greany was charged in an Information earlier this month.

From 2006 to 2012, Greany, who worked as a bookkeeper for two computer systems design and consulting businesses in Middleboro, Mass., stole nearly $320,000 from the two companies. Among other things, Greany used a company credit card to make unauthorized charges for personal expenses, including travel, tickets to sporting events and theater productions, restaurant meals and tuition, as well as the costs of operating her photography business. She then caused the charges to be paid with corporate funds from both companies. Greany also transferred money from the businesses’ bank accounts to pay her personal credit card bills. Additionally, Greany caused the payroll processing company for the victim companies to issue payments to her as reimbursement for expenses which had actually been incurred by other employees as well as increased salary payments for herself. She also wrote two unauthorized checks on a company account which she used for her own purposes.

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 Sandra S. Bower of Ortiz’s Economic Crimes Unit.

BOSTON – A Mansfield man was arrested Monday and arraigned in U.S. District Court in Boston on Tuesday, March 24 on charges that he defrauded a married couple out of nearly $200,000 in connection with alleged real estate transactions.

Michael David Scott, 48, was indicted on five counts of wire fraud. Scott is currently awaiting a June 2, 2014 trial in federal court involving unrelated mortgage frauds charges. U.S. District Court Magistrate Judge Marianne B. Bowler ordered Scott detained pending further proceedings.

The Indictment alleges that from 2001 to 2013, while Scott was a real estate broker, he collected $199,000 as deposits for the purchases of three properties by a husband and wife. Although Scott promised to hold the funds in escrow, he instead spent them for his own use. It is also alleged that Scott knew two of the deals fell through and personally participated in the sale of the third property to someone else, but refused to refund the deposits to the victims.

If convicted, Scott faces a statutory maximum sentence for wire fraud of 20 years in prison, five years of supervised release and a $250,000 fine.

United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. The case is being prosecuted by Victor A. Wild and Ryan M. DiSantis of Ortiz’s Economic Crimes Unit.

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

BOSTON – An Adams man was charged yesterday in U.S. District Court in Springfield with possessing child pornography.

William Guinan, 51, of Adams, Mass., was charged in an Information with possessing material involving the sexual exploitation of a minor. Pursuant to a plea agreement also filed, Guinan has agreed to a sentence of between 37 and 46 months in prison and five to 15 years of supervised release.

In October 2012, a federal agent used a computer program to conduct a search for individuals engaged in receiving, possessing, and distributing child pornography over a peer-to-peer filing sharing (P2P) network. The program successfully downloaded several files of child pornography from an IP address that agents later determined was connected to a residence in Adams. Based upon this investigation, agents obtained and executed a federal search warrant for the residence in November 2012. A computer that contained numerous files of child pornography, including three video files that were downloaded in November 2012, was located. During the execution of the search warrant, Guinan stated that he used the computer and that approximately four days earlier, he downloaded these three files of child pornography using the P2P network.

On Nov. 29, 2012, federal agents arrested Guinan. He was charged in a criminal complaint with receiving material involving the sexual exploitation of a minor. The Information filed today charges Guinan with possessing child pornography.

United States Attorney Carmen M. Ortiz and Bruce Foucart, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in New England, made the announcement. The case was investigated with assistance from the Massachusetts State Police and the Adams Police Department. It is being prosecuted by Assistant United States Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.

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

BOSTON – Two men were charged yesterday in connection with the attempted robbery, assault and kidnapping of a U.S. Postal letter carrier.

Maurice Williams Miner-Gittens, 23, and Keyon Taylor, 21, both of Dorchester were indicted with conspiracy, assault, robbery, attempted kidnapping, and kidnapping of a federal employee, as well as the use of a firearm in connection with these crimes. In January 2014, both men were arrested and held on federal criminal complaints.

In December 2013, Miner-Gittens and Taylor allegedly jumped into a postal truck in Dorchester and put a pistol to the letter carrier’s head. When the letter carrier attempted to move the gun away, he 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 filed with the previous complaint, 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 allegedly drove the truck a short distance 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 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.

Miner-Gittens allegedly rented and drove a U-Haul van that was used during the attempted robbery, which had the letter carrier’s blood on the outside.

If convicted, Miner- Gittens and Taylor each face a statutory maximum sentence of life in prison on the charge of kidnapping; five years in prison on the charges of conspiracy; 20 years in prison on the charge of assault; 25 years in prison on the charge of robbery of federal property, and 10 years in prison on and after the other sentences for the use of a firearm in furtherance of the crimes of violence. In addition, Gittens and Taylor face a maximum of five years of supervised release and a $250,000 fine.

United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Commissioner William Evans, made the announcement. The case is being prosecuted by Thomas E. Kanwit of Ortiz’s Major Crimes Unit.

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

BOSTON – A Springfield man was charged today in U.S. District Court in Springfield with child pornography charges.

Daniel P. Lorenz, 44, was indicted with two counts of distributing child pornography, three counts of receiving child pornography and possessing child pornography files.

If convicted, Lorenz faces a statutory mandatory minimum of five years and a maximum of 20 years in prison, a minimum mandatory of five years and a maximum lifetime of supervised release, and a maximum fine of $250,000 on the charges of distribution and receipt of child pornography. If convicted on the charge of possession of child pornography, Lorenz faces a statutory maximum of 20 years in prison, a minimum mandatory of five years and a maximum lifetime of supervised release, and a maximum fine of $250,000.

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

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 investigated by the FBI with assistance from the Springfield Police Department. It is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.

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

The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys= Offices and the Criminal Division=s 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/.

BOSTON – A Connecticut man was arrested yesterday after driving to Watertown to allegedly meet with a woman who posted an ad on Craigslist, seeking a male that might be interested in a relationship with her minor daughter. The Craigslist advertisement was placed by undercover Homeland Security Investigation agents.

Paul R. Hinkel, 56, from Chester, Conn., was charged via criminal complaint that he persuaded, induced, enticed or coerced a minor to engage in sexual activity.

The criminal complaint alleges that in February 2014, undercover federal agents placed an ad on Craigslist using the name “Lisa Richards” and seeking a male that might be interested in a relationship involving her daughter. Hinkel responded to the advertisement, and engaged in e-mail communications with undercover agents regarding the fictional minor daughter and the sexual activities that he would engage in with her. On March 19, Hinkel traveled from his home in Connecticut to an apartment in Watertown to meet the fictional minor daughter. He carried a bag to the door with him, which agents later discovered contained sexual paraphernalia, men’s cologne and a stuffed animal. Hinkel was arrested and taken into custody. He remains in custody pending a detention hearing in U.S. District Court on March 24.

United States Attorney Carmen M. Ortiz said, “We vigorously pursue defendants who intend to use the Internet to evade detection and to infringe on the protections of children.”

“I am very proud of my agents’ tireless work in targeting online predators, and I would like to commend our outstanding partners in the Massachusetts and Connecticut State Police Departments,” said Bruce Foucart, Special Agent in Charge of Homeland Security Investigations in Boston. “The Internet is a necessity of modern life; however, we will continue to aggressively pursue those who use it to prey on the defenseless.”

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

U.S. Attorney Ortiz and SAC Foucart made the announcement today. The Watertown Police Department and Massachusetts State Police assisted with Hinkel’s arrest. The case is being prosecuted by Eve A. Piemonte Stacey 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.

The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys= Offices and the Criminal Division=s 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/.

BOSTON – A Boston woman has been charged with making fraudulent withdrawals from accounts in other people’s names at Citizens Bank branches throughout Massachusetts.

On March 19, Kimberly B. Gomez, 53, was indicted with bank fraud. According to the indictment, beginning in 2010, Gomez and others participated in a scheme to obtain personal identification and account information for Citizens Bank customers and to use that information to withdraw money from these customers’ accounts. A participant in the scheme obtained, from Citizens Bank, the names of customers with high savings account balances, along with their home addresses, dates of birth, and account numbers. Another participant took Gomez’s picture and used it, along with the information from Citizens Bank, to obtain fake ID’s with the names and addresses of Citizens’ customers. Gomez then used these fake IDs to make the fraudulent withdrawals from Citizens Bank.

The indictment alleges that Gomez was able to withdraw more than $67,000 from accounts belonging to three different Citizens customers. She tried, unsuccessfully, to withdraw another $13,000.

If convicted, Gomez faces a statutory maximum penalty of 30 years in prison and five years of supervised release.

United States Attorney Carmen M. Ortiz and Thomas P. Baker, Acting Special Agent in Charge of the U.S. Secret Service in Boston, made the announcement today. Citizens Bank cooperated with the investigation. The case is being prosecuted by Assistant United States Attorney Adam J. Bookbinder of Ortiz’s Cybercrime Unit.

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

BOSTON – The elected Chairman of the Needham Tax Assessors Office was sentenced yesterday for felony tax evasion.

U.S. District Court Judge Richard G. Stearns sentenced Kevin Foley, 56, of Needham, to 18 months in prison, two years of supervised release and $115,500 in restitution to the IRS. In July 2013, Foley pleaded guilty to three counts of felony tax evasion.

Foley misappropriated approximately$492,000 in funds belonging to an elderly Needham resident and failed to file taxes reflecting not only the misappropriated funds, but also the income he legally earned from the Town of Needham for tax years 2007, 2008, and 2009.

United States Attorney Carmen M. Ortiz, William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, and Needham Police Chief Philip Droney, made the announcement. The case was prosecuted by Assistant U.S. Attorney Robert A. Fisher of Ortiz's Public Corruption and Special Prosecutions Unit.

BOSTON – The owner and operator of a Worcester tax preparation business was arrested yesterday and charged with tax fraud.

Yaw Aboagye- Marfo was indicted on 23 counts of tax fraud. Between 2009 and 2012, Marfo, the owner and operator of a tax preparation business, variously called “People’s Choice Tax Service” and “National Taxpert,” with locations in Worcester and outside of Boston, filed false tax returns seeking refunds for individuals who were not entitled to tax refunds. Marfo also prepared false tax returns for clients and falsely reported that those clients owned sole proprietorship businesses.

If convicted, Marfo faces a maximum sentence of five years in prison and a $250,000 fine on each count of filing false claims.

Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division, United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revue Service’s Criminal Investigation in Boston, made the announcement. The case is being prosecuted by Assistant Chief Karen Kelly and Trial Attorney Sean Delaney of the Department’s Tax Division.

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

BOSTON - A husband and wife from Cape Coral, Fla., pleaded guilty today to mail fraud involving the theft of more than $210,000.

Michelle Minihan, 49, and James Minihan, 51, pleaded guilty to conspiring to commit mail fraud. The Minihans who were charged in February, are scheduled for sentencing on June 18, 2014.

Michelle Minihan worked for an individual who ran a court-reporting and transcription business. Her duties included, among other things, payroll, invoicing, accounting, and processing payments to the company. She was also responsible for depositing checks from clients into the company’s bank account.

In 2007, Michele and James Minihan moved to Florida, but Michelle Minihan continued to work for the company, receiving the company checks that she was supposed to deposit by mail. Beginning in August 2008, the Minihans began depositing the company’s checks into their own personal bank accounts and using the proceeds of these converted checks for their own personal use. Michelle Minihan attempted to cover up the scheme by falsifying the company’s accounting records. In total, between 2008 and 2013, they stole more than $210,000 in checks.

United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case is being prosecuted by Eric P. Christofferson of Ortiz’s Economic Crimes Unit.

BOSTON – A physician specializing in pain management was charged today for overbilling the Medicare program.

Fathalla Mashali, 59, of Dover, was indicted on nine counts of heath care fraud.

Mashali was a licensed physician in Massachusetts and Rhode Island who operated New England Wellness & Pain Management, P.C., which was also known as New England Pain Associates, P.C., Greystone Pain Management, Inc., and New England Pain Institute, P.C., or NEPA. NEPA, a pain management clinic with locations in Massachusetts and Rhode Island, served many patients who were Medicare beneficiaries.

The indictment alleges that Mashali trained NEPA employees, including physician assistants and registered nurses, to overbill the Medicare program. Mashali overbooked patient appointments, sometimes with as many as four patients per slot, and arrived to work up to four hours late, causing significant overcrowding at NEPA’s waiting rooms. The patient appointments often lasted less than 10 minutes and sometimes as few as two to three minutes. Mashali often saw patients without performing physical examinations. The indictment also alleges that with the exception of patients requiring injections, Mashali conducted patient visits in a small office with a desk, resembling a business office, rather than in an examination room containing medical equipment. Nevertheless, Mashali submitted fraudulent claims to the Medicare program seeking reimbursement for patient services far exceeding in scope and duration the actual services he provided to patients.

If convicted, Mashali faces a maximum sentence under the statute on each count of health care fraud of 10 years in prison, three years of supervised release, a fine in the amount of $250,000 or twice the pecuniary gain to Mashali or loss to the Medicare program, and restitution.

United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau; 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 Kimberly P. West and Lisa Asiaf-Schlatz of Ortiz’s Health Care Fraud Unit and Katherine Ferguson of Ortiz’s Drug Task Force Unit.

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

BOSTON – A former Boston Children’s Hospital pediatric endocrinologist was sentenced today in U.S. District Court in Boston for purchasing child pornography.

Richard Keller, M.D., 57, of Andover, was sentenced by U.S. District Judge F. Dennis Saylor IV to 78 months in prison and five years of supervised release. Upon release, Keller must register as a level 3 sex offender. In November 2013, Keller pleaded guilty to two counts of receipt of child pornography and possession of child pornography. At the time of his arrest in 2012, Dr. Keller was a pediatric endocrinologist at Boston Children=s Hospital and a pediatrics instructor at Harvard Medical School. Before stepping down in 2011, Keller was the Medical Director at Phillips Academy for 19 years.

“Any crime that preys upon children, the most vulnerable and precious population, is reprehensible,” said United States Attorney Carmen M. Ortiz, “but when the predator is in a position of trust, as Mr. Keller was as a pediatrician, it is particularly disturbing. The U.S. Attorney’s Office will continue to work alongside our law enforcement partners to unveil the cloak of anonymity that these defendants seem to think the Internet provides them.”

“The demand that creates the market for child pornography can only be satisfied by sexually abusing more children,” stated Inspector in Charge Shelly Binkowski. “For this reason, the Postal Inspection Service will continue to aggressively identify, target and arrest those who dare prey on our children.”

Keller possessed visual depictions of minors engaged in sexually explicit conduct, including males between the ages of approximately seven to 16 years old. In October 2012, the U.S. Postal Inspection Service and foreign law enforcement began an investigation into a Toronto company that sold child pornography, specifically movies of nude young minor boys. Foreign law enforcement seized the company’s customer database, which revealed Keller as a customer. Specifically, between July 2009 and January 2011, Keller purchased and ordered videos and images from this company on 19 different occasions. These orders included over 50 separate titles totaling over $2,695 in purchases.

Federal agents obtained a search warrant for Keller’s residence and seized multiple items of computer media. In addition, more than 500 high-gloss print-outs of child pornography and approximately 60 to 100 DVDs of child pornography were seized from Keller’s bedroom, which depicted naked boys from approximately 10 to 14 years old engaged in lewd and lascivious displays of their genitalia.

In addition, Keller possessed a DVD containing child pornography, including images and videos that depicted naked boys from approximately age seven to 16 engaged in sexual activity, including oral and anal sex, as well as sadomasochistic conduct. As part of his plea agreement, Keller admitted that he has had a long-standing sexual interest in adolescents since the early 1970s. Keller further admitted to viewing child pornography on the Internet and that he had previously tried to stop, but failed to do so.

US Attorney Ortiz, Inspector Binkowski, and Andover Police Chief Patrick Keefe made the announcement today. The case was prosecuted by Assistant U.S. Attorney Stacy Dawson Belf of Ortiz=s Major Crimes Unit.

The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys= Offices and the Criminal Division=s 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/.

BOSTON – The former treasurer and chairman of the board of directors of a Nevada-based publicly traded company was sentenced yesterday for his role in a fraudulent kickback scheme.

U.S. District Court Judge Denise J. Casper sentenced Albert Reda, 67, of Tustin, Calif., to 26 months in prison, one year of supervised release, a fine, and forfeiture of his illegal earnings. In November 2013, following a six-day trial, a jury convicted Reda of wire fraud and mail fraud.

Reda was involved in a scheme to pay secret kickbacks to an investment fund representative in exchange for having the investment fund buy stock in the Reda’s company, First Global Financial Corporation, which traded on the over-the-counter securities market. The kickbacks were concealed through the use of a sham consulting agreement and other fraudulent documents, such as bogus invoices. What Reda did not know was that the purported investment fund representative was actually an undercover federal agent.

Reda’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 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 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.

BOSTON – A Bridgewater man was sentenced yesterday for possessing more than 2000 images and videos of child pornography.

Kevin J. Balzarini, 38, was sentenced by U.S. District Court Judge Rya W. Zobel to 36 months in prison and five years of supervised release. In December 2013, Balzarini pleaded guilty to possession of child pornography.

An officer, acting in an undercover capacity, signed onto a peer-to-peer network and observed that Balzarini was offering files indicative of child pornography to share with network users. The officer requested and received an image containing child pornography. A search warrant was then executed at Balzarini’s residence, where computer media containing more than 2000 images and videos of child pornography was seized. At the time of the search, Balzarini admitted to agents that he had been looking at child pornography for a number of years and stated that his interest was in children 13 years old and younger. Printed images of child pornography were recovered from Balzarini's bedroom, as well as a container of girls' underwear that Balzarini admitted he took from homes when he made deliveries as part of his employment.

United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Bridgewater Police Chief Christopher D. Delmonte, made the announcement today. The case was prosecuted by Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.