District of Massachusetts
Press releases recorded for this federal judicial district.
United States Attorney Ortiz Appoints Fred Wyshak to Head Public Corruption UnitRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today that she has appointed Assistant United States Attorney Fred Wyshak as the Chief of her Public Corruption and Special Investigations Unit. Mr. Wyshak replaces former Assistant United States Attorney Brian Kelly who left the office at the end of last year.
“Fred has an extraordinary record as a trial lawyer and a profound commitment to public service,” said U.S. Attorney Ortiz. “While he is well-known for his efforts to prosecute and convict James Bulger, Fred’s prosecutorial resume extends far beyond that. He has served this office with distinction for 25 years and I know his experience and legal acumen will serve him well in this position.”
In 1978, Mr. Wyshak began his legal career in the Brooklyn (NY) District Attorney’s Office, as an Assistant District Attorney, later becoming the Deputy Chief of that office’s Economic Crime and Arson Bureau. He came to Boston in 1989, coming from the US Attorney’s Office in New Jersey where he prosecuted organized crime cases, including the acting boss of a prominent LCN family. He joined the United States Attorney’s Office in Massachusetts as a prosecutor in the Organized Crime Strike Force, handling some very difficult and defining cases – including labor racketeering cases. In 2005, he was cross-designated as a state’s attorney in Florida to assist in the prosecution of former FBI agent John Connolly for the murder of John Callahan.
“I am honored to have the opportunity to serve as Chief of the Public Corruption and Special Investigations Unit,” said Wyshak. “I intend to build upon the strong foundation and hard work of each of my predecessors and the dedicated prosecutors in the Public Corruption Unit. These cases are crucial to ensure that the public maintains faith in government, the law is upheld, and taxpayer money is spent correctly. I look forward to continuing to prosecute these very important cases.”
While Mr. Wyshak has prosecuted some of the most high-profile cases handled by this office – including Bulger and the Big Dig cases – he has also worked behind-the-scenes as its Senior Litigation Counsel, providing training and mentoring to Assistant United States Attorneys, for the past 10 years.
“Fred is known for his excellent trial skills, case preparation and an attention to detail and potential legal issues, which have consistently resulted in successful prosecutions. Given his experience and accomplishments, I am thrilled to have him as Chief of the Public Corruption Unit,” added U.S. Attorney Ortiz.
Mr. Wyshak is a graduate of New York University and St. John’s School of Law.
The Public Corruption and Special Prosecutions Unit handles sensitive cases involving offenses at the federal, state and local levels by the actions of corrupt officials who abuse the power and responsibilities that they have been entrusted. Whether it be accepting a bribe, inflating a salary, or selling drugs on the side, corruption takes a heavy toll on communities.
California Corporation Sentenced for Defrauding U.S. CustomsRead the Press Release
BOSTON - All Fabrics, Incorporated, an importer based in California, was sentenced today for defrauding U.S. Customs to avoid paying duties on textile shipments.
All Fabrics, Incorporated, represented by its President, Ricky Chen, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to five years of probation, $148,506 in restitution and a fine of $180,000. In August of 2013, All Fabrics pleaded guilty to 10 counts of entering goods to the United States by means of false statements.
Between 2006 and 2009, All Fabrics provided false consolidated invoices to U.S. Customs for hundreds of shipments of cotton, polyester, and other textiles imported from China through ports on the eastern and western coasts of the United States. Based on these invoices, U.S. Customs imposed importation duties far lower than what was actually due. Losses to U.S. Customs were $468,506 in total, $320,000 of which the company paid when first confronted with evidence of wrongdoing.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case was prosecuted by Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
Dighton Tax Preparer Sentenced for Filing False Tax ReturnsRead the Press Release
BOSTON – A Dighton man was sentenced for falsifying his own personal income tax returns.
David J. Woods, 65, was sentenced by U.S. District Court Judge Patti B. Saris to six months in prison, six months home confinement and a $3,000 fine. In June 2013, Woods pleaded guilty to filing false individual tax returns which resulted in the underreporting of over $500,000 in income from his tax preparation service.
United States Attorney Carmen M. Ortiz and John G. Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Lori J. Holik of Ortiz’s Economic Crimes Unit.
Boston Man Pleads Guilty to ATM BurglaryRead the Press Release
BOSTON – A Boston man was convicted today for the 2012 robbery of an ATM in Boston’s South End.
Terry K. Leigh, 47, pleaded guilty to bank burglary. He is scheduled to be sentenced by Judge F. Dennis Saylor on April 3, 2014.
On Aug. 11, 2012, federal agents and detectives were conducting surveillance on a Bank of America ATM located at 465 Columbus Avenue, Boston, in regards to an ongoing investigation of 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’s lobby and exited 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 building’s 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.
Leigh faces a maximum penalty of 20 years in prison, three years of supervised release, a $250,000 fine, and restitution for the damage to the ATM.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Harvard Couple Plead Guilty to Fair Labor Standards Act ViolationDefendants Failed to Pay Their Nanny Minimum Wage for More Than 13 YearsRead the Press Release
Boston – A Harvard, Mass. couple today pleaded guilty to an Information in federal court charging them with one count of violating the Fair Labor Standards Act. The couple failed to pay their nanny and housekeeper minimum wage for over 13 years. As part of their plea agreement, the defendants will pay the nanny a substantial portion of the wages owed her.
Martha, 48 and Richard Smalanskas, 49, hired a 16-year-old Bolivian nanny, in Bolivia, to cook, clean and take care of their children. After three years, they brought her to the United States under false documentation which made it appear as if the nanny was related to them. Once here, her travel documents were taken away and she was required to work long hours. She was promised, but not paid, a wage of up to $150 per month even though the nanny was working 80 hours per week. The Smalanskases were aware that they were not paying the nanny minimum wage; in fact, the total amount they paid her over those years was less than $2,500, plus the room and board they provided.
The Smalanskases face up to one year probation, a $10,000 fine and restitution. Sentencing is set for April 2, 2014.
Springfield Man Agrees to Plead Guilty to Trafficking in Counterfeit GoodsRead the Press Release
BOSTON - A Springfield man was charged today in U.S. District Court in Springfield with selling counterfeit merchandise.
Josue Rivera, 38, was charged with trafficking in counterfeit goods. In a plea agreement also filed today, Rivera agreed to restitution of approximately $29,000 and forfeiture of two bank accounts worth approximately $79,000.
Rivera operated a retail merchandise business called Main Source, which was located in Springfield. In the course of this business, around April 11 until June 25, 2012, Rivera stocked and sold counterfeit merchandise, including clothing, footwear, and accessories that bore a variety of brand names and trademarks, including Gucci, Nike, Coach, Chanel, and Oakely. Rivera also stocked and sold unauthorized reproductions of digital video discs of movies and compact discs of music.
United States Attorney Carmen M. Ortiz, Bruce Foucart, Special Agent in Charge of the U.S. Department of Homeland Security, Homeland Security Investigations, New England Division, and Springfield Police Commissioner William Fitchett, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
East Boston Man Guilty of Robbing Peabody BankRead the Press Release
BOSTON – An East Boston man pleaded guilty today to armed robbery of a bank in Peabody.
Mark Lepage, 51, pleaded guilty to armed bank robbery and possession of a firearm in furtherance of a crime of violence. Sentencing is scheduled for April 3, 2014.
On April 4, 2011, at approximately 1:14 p.m., Lepage walked into the Eastern Bank in Peabody brandishing a handgun, wearing sunglasses and a grey hooded sweatshirt pulled up over his head. He grabbed a male customer, held the gun to the customer's neck, and demanded money. After three bank tellers handed him $21,709, he fled the bank. He was arrested in East Boston two days later and indicted that month.
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 Peabody Police Chief Robert St. Pierre, made the announcement today. The case is being prosecuted by David G. Tobin and Carlos A. López of Ortiz’s Major Crimes Unit.
Developer Sentenced to 12.5 Years in Prison for Orchestrating Massive Mortgage Fraud Involving over $7 Million in LossRead the Press Release
BOSTON – A Boston man was sentenced late yesterday on charges relating to a massive mortgage fraud that he orchestrated.
Sirewl R. Cox, 38, was sentenced by U.S. Judge Denise J. Casper to 150 months in prison and three years of supervised release. On Nov. 15, 2013, following a 16-day jury trial, Cox was convicted of wire fraud, bank fraud and conducting an unlawful monetary transaction.
In 2006 and 2007, Cox identified multiple-family buildings for sale and recruited straw buyers to purchase the buildings. Cox and others then recruited straw buyers to purchase individual units in buildings that Cox controlled. The straw buyers’ financing for the purchases was obtained by submitting mortgage loan applications and other documents that falsely represented key information, such as the buyers’ income, employment, assets, and/or intention to reside in the condominiums. Deals were closed with HUD-1 settlement statements that falsely represented that straw buyers had made down payments and paid other funds in connection with the property transactions, and that falsely represented how the proceeds of the mortgage loans were disbursed.
United States Attorney Ortiz said, “This case involved the largest mortgage fraud scheme perpetrated in the run up to the financial crisis by a convicted defendant in this district. Sham transactions like the ones in this case help drive up prices for legitimate homeowners, and the abandonment of properties to foreclosure that often results further victimizes the affected neighborhoods. So-called ‘white-collar’ crimes like this one have a profound and direct impact on the lives of innocent homeowners.”
Cox is the fourth defendant involved in this scheme to be sentenced. Three other defendants pleaded guilty and have been sentenced. In December 2012, Lord Allah was sentenced to 18 months in prison. In January 2013, Rebecca Konsevick was sentenced to 30 months in prison while Latonya Burnett was sentenced to three years of probation.
United States Attorney Carmen M. Ortiz; Thomas P. Baker, Acting Special Agent in Charge of the U.S. Secret Service; John G. Collins, Special Agent in Charge of Internal Revenue Service’s Criminal Investigation in Boston; Kevin M. Niland, Inspector in Charge of U.S. Postal Inspection Service; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Ryan M. DiSantis of Ortiz’s Economic Crimes Unit.Drywaller Sentenced in Tax Evasion ScamRead the Press Release
BOSTON - A Waltham man was sentenced today for a tax evasion scam in connection with his drywalling and plastering business.
Paul Landry, 47, was sentenced by U.S. District Court Judge Mark L. Wolf to three months in a halfway house, six months home detention, three years of probation, a $3,000 fine, and nearly $200,000 in restitution to the IRS. In February 2012, Landry pleaded guilty to three counts of tax evasion. At the hearing, Judge Wolf explained that he was not sentencing Landry to jail time because of Landry’s declining health and his record of good works in his community.
Landry, a drywall and plastering company owner from Waltham, who owns and operates P.L. Drywall, Inc., falsified tax returns in 2004-2006, failing to report more than $900,000 of income during that period, and failing to pay nearly $200,000 in federal income taxes. In addition, when Landry was being interviewed by an IRS inspector he lied about his income in an effort to conceal the crime.
United States Attorney Carmen M. Ortiz and John G. Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by former Assistant U.S. Attorney Paul Levenson and current Assistant U.S. Attorney John T. McNeil of Ortiz’s Criminal Division.
Chicopee Man Charged with Failing to Register as Sex OffenderRead the Press Release
BOSTON – David Mullins, 47, of Chicopee was charged today in federal court with failure to register as a sex offender.
The indictment alleges that between Dec. 20, 2008 and Aug. 2, 2009, Mullins traveled from Vermont to Massachusetts and failed to update his registration with the sex offender registry.
If convicted, Mullins faces up to 10 years in prison, a lifetime of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz's Springfield Branch 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.
Beverly Man Sentenced for Child Pornography CrimesRead the Press Release
BOSTON – A Beverly man was sentenced today in U.S. District Court on child pornography charges.
Timothy Bird, 39, was sentenced to five years in prison and five years of supervised release. Bird will be required to register as a sex offender upon his release from prison. In August 2013, Bird pleaded guilty to possession of child pornography and distribution of child pornography.
In November 2011, a federal agent, acting in an undercover capacity on a peer-to-peer file sharing network, downloaded images and videos depicting child pornography from Bird. At the time of his arrest, the defendant admitted that he had been downloading child pornography for approximately 10 years, and that he regularly used the peer-to-peer network to download and trade child pornography. Forensic examination of computer media seized from Bird’s apartment revealed more 32,000 images and videos depicting child pornography.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Chief John G. LeLacheur of the Beverly Police Department; and Chief Michael Begonis of the Wilmington Police Department made the announcement today. The case was prosecuted by Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
Haverhill Man Sentenced for Bankruptcy FraudRead the Press Release
BOSTON – A Haverhill man was sentenced today for concealing a property he owned in Puerto Rico from his bankruptcy creditors.
Peter A. Schutter, 57, was sentenced by U.S. District Judge Timothy S. Hillman to two years of probation. In July 2013, Schutter pleaded guilty to bankruptcy fraud.
In 1994, Schutter’s mother deeded a parcel of property in Aguadilla, Puerto Rico to Schutter and his wife. In April 2009, the Schutters filed a Chapter 7 bankruptcy petition in Worcester, but failed to list the Puerto Rico property as an asset. In May 2009, at a meeting of creditors, Schutter was specifically asked by his bankruptcy trustee whether he had owned any real estate in the prior four years and Schutter answered, under oath, “no, sir.” Schutter later disclosed the property to the trustee, but only after the trustee requested records from Schutter that would have led inevitably to the discovery of that property. The trustee later sold the property for $115,000 for the benefit of creditors.
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 referred for investigation by the U.S. Trustee=s Office in Worcester. The case is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz=s Economic Crimes Unit.
Cape Cod Man Sentenced to 15 Years for Child Sex CrimeRead the Press Release
BOSTON - A Teaticket, Mass. man was sentenced today for attempted enticement of two teenage girls.
Kevin B. Reid, 30, was sentenced by U.S. District Court Judge Sr. Mark L. Wolf to 15 years in prison and five years of supervised release. In April 2013, Reid pleaded guilty to attempted coercion and enticement of a minor.
Reid initiated contact with a 16-year-old Cape Cod girl over Facebook. The girl became bothered by the then 28-year-old defendant's contacts and told her mother. The girl's mother then initiated contact with Reid pretending to be her daughter. Eventually the mother's sister communicated with the defendant pretending to be a 14-year-old girl. When Reid’s communications became sexually explicit, the police were contacted and an undercover federal agent assumed the identity of the two "girls." Reid directed the two girls to make a pornographic video and ultimately instructed them to travel by bus to Cape Cod, where the three could have sex. In March 2012, Reid was arrested in Hyannis, as he ran to greet the bus he believed carried the two teenage girls.
United States Attorney Carmen M. Ortiz and Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was prosecuted by David G. Tobin of Ortiz’s Major Crimes Unit.
Two Georgetown Men Plead Guilty to Social Security FraudRead the Press Release
BOSTON - Two Georgetown men pleaded guilty today to defrauding the Social Security Administration of $105,158.
Charles Flynn, 35, and Steven Grondell, 44, pleaded guilty to theft of public money. In November 2013, they were charged in a felony Information. Sentencing is scheduled for March 18, 2014.
Flynn began receiving Social Security disability benefits in 2004. In 2008, however, while still collecting disability benefits, Flynn began working at the iParty store in Peabody under the identity of his partner, Steven Grondell. Flynn did not report this work to Social Security. In fact, in a benefits review in November 2012, he falsely stated that he had not worked since about 2003. Flynn’s income from iParty, which totaled about $30,000 to $40,000 per year, would have made him ineligible to receive disability benefits. Grondell aided and abetted this scheme by allowing Flynn to use his identity to work at iParty and by helping to cover up the fraud by claiming the iParty income on his own tax returns.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Office of Inspector General, Social Security Administration, Office of Investigations – Boston Field Division; and 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 Special Assistant United States Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Lawrence Woman Indicted for Misusing A Social Security NumberRead the Press Release
BOSTON - A Lawrence woman was charged today with misusing a social security number.
Kernia Avalo De Mejia, 28, was indicted for misusing a social security number in connection with renting apartments in the greater Lawrence area under a stolen identity. This indictment was part of a larger investigation into drug trafficking by illegal aliens in the Lawrence-Methuen area.
If convicted, Avalo faces a maximum sentence of five years in prison, three years of supervised release 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. The case is being prosecuted by Thomas E. Kanwit 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.
Harvard Student Charged with Bomb HoaxRead the Press Release
BOSTON - A Harvard student was named today in a criminal complaint alleging that he was responsible for yesterday’s bomb threats at Harvard University.
It is alleged that Eldo Kim, 20, of Cambridge, emailed several bomb threats to offices associated with Harvard University, including the Harvard University Police Department and the Harvard Crimson, the student-run daily newspaper. Kim will have an initial appearance in US District Court before United States Magistrate Judge Judith G. Dein on December 18.According to the complaint, on Dec. 16, 2013, at approximately 8:30 a.m., the Harvard University Police Department, two officials of Harvard University, and the president of the Harvard Crimson, received identical email messages bearing a “subject” line that read “bombs placed around campus.” The complaint alleges that the bomb threats specified four buildings on the Harvard campus – the Science Center, Sever Hall, Emerson Hall, and Thayer Hall. The complaint quotes the email messages as stating the following: “shrapnel bombs placed in science center, sever hall, emerson hall, thayer hall, 2/4. guess correctly. be quick for they will go off soon.”
According to the complaint, the FBI responded immediately to the threats, in coordination with the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the United States Secret Service; the Harvard University Police Department; the Cambridge Police Department; the Boston Police Department; and the Massachusetts State Police. Dozens of law enforcement officers, along with numerous other first responders, such as firefighters of the Cambridge Fire Department, immediately went to the vicinity of the buildings specified in the emails. The complaint further states that each of the Harvard buildings named in the threatening emails was immediately evacuated. Over the course of the next several hours, bomb technicians and hazmat officers conducted thorough sweeps of each of the four buildings. Law enforcement personnel ultimately concluded that no explosive devices had been placed in any of the four buildings
The maximum penalties under the bomb hoax statute, are five years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being handled by Assistant U.S. Attorney John A. Capin.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Chief Financial Officer of Merrimack Education Center Charged with Pension FraudRead the Press Release
BOSTON - A former senior executive at Merrimack Education Center (MEC) was charged today in federal court in connection with a fraud on the Commonwealth of Massachusetts’ pension system.
Carl A. Nystrom, 52, of Pelham, NH, was indicted on mail and wire fraud charges. The indictment alleges that he engaged in a scheme to defraud the state by allowing ineligible MEC employees to enroll in a state pension plan, making it appear as though those individuals were employees of a state entity when they were not.
MEC was a tax-exempt organization, a so-called not-for-profit company, engaged in the business of providing diversified educational and technological resources to schools, cities, towns and other non-profit organizations. MEC offered a broad range of special education, professional development, facilities management, transportation and technology programs. Merrimack Special Education Collaborative (MSEC) was a public entity engaged in providing educational and vocational services to children and adults with physical, emotional and developmental challenges. Pursuant to an administrative fee agreement, MEC provided fiscal and management services to MSEC, to include payroll services.
According to the indictment, Nystrom served as MEC’s Chief Financial Officer. During the relevant time period he directed and caused other MEC employees to code him and four other ineligible MEC employees in the ADP payroll system as MSEC employees. This fraudulent coding caused periodic paychecks and end-of-year W-2s to be made in the name of MSEC for each of the miscoded individuals. In addition, each of the miscoded individuals fraudulently enrolled in the state pension plan. The indictment alleges that the purpose of the scheme was for Nystrom and the others who were fraudulently enrolled in the pension to obtain pension payments that they were not entitled to receive. The indictment also alleges that in addition to Nystrom, a lobbyist and three other MEC employees were fraudulently enrolled in the state retirement system. The lobbyist and one former MEC employee have already collected nearly $300,000 in pension payments.
If convicted, Nystrom faces up to 20 years in prison, to be followed by three years of supervised release and a $250,000 fine on each count.
United States Attorney Carmen M. Ortiz; Glenn A. Cunha, Inspector General of Massachusetts; John Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Diane C. Freniere and Andrew Lelling and Special Assistant U.S. Attorneys Andrew Doherty and Eileen O’Brien of the Massachusetts Attorney General’s Office and the Massachusetts Inspector General’s Office, respectively.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.
Dominican Doctor and Assistant Indicted for Conspiring to Alter Fingerprint of Previously Deported AliensRead the Press Release
BOSTON – A Dominican doctor and his assistant were charged today for their roles in altering the fingerprints of illegal aliens through a surgical process.
Danilo Montero Ramirez, 61, and Teresa Araujo Martinez, 40, were indicted for conspiring to harbor illegal aliens by altering their fingerprints through a surgical process, conspiracy to distribute Oxycodone, and possession with intent to distribute Oxycodone.
In November 2013, federal agents became aware that Montero Ramirez, a licensed medical doctor in the Dominican Republic, was coming to the United States to meet with previously deported aliens and perform surgery on their hands to alter their fingerprints. Convicted criminals alter their fingerprints to help conceal their true identities from law enforcement and to disassociate themselves from their prior criminal history.
During the week of Nov. 12, 2013, Montero Ramirez arrived in the United States from the Dominican Republic and arranged to perform surgery on individuals for a fee of $4,000. Montero Ramirez and Araujo Martinez made arrangements to perform the surgery on Nov. 16, 2013, but were arrested before the surgery began. It is alleged that had the surgery taken place, these individuals would have been given controlled substances by Araujo Martinez. At the time of the arrests, agents seized surgical cutting equipment, gauze, bandages, syringes, prescription medication and $4,000 from the defendants. Araujo Martinez, also a Dominican citizen, was found to be in possession of a large quantity of pain medication, including Oxycodone and other substances.
If convicted on the charge of conspiracy to distribute a controlled substance, the defendants face a maximum of 20 years in prison, three years of supervised release and a fine of $1 million. If convicted on the charge of conspiracy to harbor aliens, the defendants face a maximum sentence of 10 years in prison, three years of supervised release and a fine of $250,000.
United States Attorney Carmen M. Ortiz and Bruce 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 Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Sentenced for Armed RobberyRead the Press Release
BOSTON - A Boston man was sentenced today for his role in an armed robbery of a Metro PCS store in Boston.
Ronald Brown, 40, was sentenced by U.S. District Court Judge Denise J. Casper to 272 months in prison and five years of supervised release. On May 10, 2013, Brown was convicted, following a five-day jury trial of armed robbery, being a previously convicted felon in possession of a firearm and using and carrying a firearm during, and in relation to, a crime of violence.
On Oct. 31, 2011, Brown and his co-conspirator, Lynch Arthur, armed with loaded semi-automatic weapons, entered the Metro PCS store in Codman Square in Dorchester. Arthur was observed carrying a black nylon bag as he entered the store. Once inside the store, the men displayed their firearms and took the clerk into a back storage area where the men restrained the clerk by duct-tapping her hands feet and mouth. The clerk was then placed on the floor while the robbers removed $664 in cash from the cash box. The individuals left the store and fled onto Washington Street. The Boston Police responded and a short time later two individuals who fit the description of the robbers were stopped and questioned. After questioning, the individuals were returned to the store and positively identified by the clerk as the robbers. A short time later the police observed a black nylon bag in a blue recycle bin. The bin was located a few yards from where the individuals were stopped and questioned. Inside the nylon bag the officers observed two loaded semi-automatic firearms, duct tape, and $664.
In June 2013, Brown’s co-defendant, Lynch Arthur, was sentenced to 228 months in prison and five years of supervised release.
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 Boston Police Commissioner William Evans, made the announcement today. The case was prosecuted by Kenneth G. Shine and Robert E. Richardson of Ortiz’s Major Crimes Unit.
Shirley Man Charged for Stealing Military Humvee from Fort DevensRead the Press Release
BOSTON - A Shirley man was charged today with stealing a Humvee from Fort Devens.
Lowell A. Shorey, 26, was indicted with theft of government property.
The indictment alleges that on Oct. 16, 2013, Shorey stole a Humvee from Fort Devens. According to the affidavit, Shorey then attempted to sell the stolen military Humvee, which is worth $60,000, to an undercover police officer. After stealing the military vehicle, Shorey drove it out of the motor pool through a hole he cut in a fence. He then parked the vehicle in the woods near his Shirley home, which is in close proximity to Fort Devens. Additionally, Shorey told the undercover officer that we wanted to “boost” the other 12 Humvees at Fort Devens all in one day.
If convicted, Shorey faces a maximum sentence of 10 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and the Department of Defense’s Police Department at Fort Devens made the announcement today. The case is being prosecuted by David G. Tobin 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.
Seven Individuals Indicted for Operating Million Dollar Marijuana ConspiracyRead the Press Release
BOSTON – Seven individuals from central Massachusetts were charged today in U.S. District Court in Worcester for operating a million dollar marijuana conspiracy.
Lam Ly, 43, and Tam Pham, 36, of Leicester; Nhi Le, 32, Diep Pham, 52, Ut Le, 33, and Minh Bui, 43, of Webster; and Luan Bui, 42, of Worcester were charged in a superseding indictment with conspiracy to manufacture marijuana, manufacturing and possession with the intent to distribute marijuana, and maintaining several drug involved premises. The indictment and arrests announced today are the culmination of a lengthy joint federal, state, and local investigation.
The indictment alleges that Lam Ly, Tam Pham, Nhi Le, Diep Pham, Ut Le, Luan Bui, Minh Bui, and others, maintained indoor marijuana growing operations in Douglas, three locations in Webster, Worcester, Paxton, and Leominster. To date, the investigation has led to the seizure of over $124,000 in cash and over 2,000 marijuana plants – a quantity that is capable of producing over a $1 million worth of marijuana.
If convicted, Lam Ly faces a mandatory minimum of 10 years and up to a lifetime in prison, a minimum of five years of supervised release, and a fine of up to $10 million dollars. If convicted, Tam Pham, Nhi Le, Diep Pham, Ut Le, Luan Bui, and Minh Bui faces a mandatory minimum of five years and up to 40 years in prison, a minimum of four years of supervised release, and a fine of up to $5 million.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; John G. Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Chief Timothy J. Bent of the Webster Police Department; Chief Gary J. Gemme of the Worcester Police Department; Chief Patrick T. Foley of the Douglas Police Department; Chief Michael Hassett of the Oxford Police Department; Chief Robert Desrosiers of the Paxton Police Department; and Chief Robert Healey of the Leominster Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mark Grady of Ortiz’s Worcester Branch Office.
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.
Man Charged for Escape from Coolidge HouseRead the Press Release
BOSTON - A Providence man was charged today with escaping from a halfway house.
Jason Shepard, 34, was indicted with escape from the Coolidge House. Coolidge House is a residential reentry center in Boston that assists incarcerated individuals successfully transition to the community after they are released. Shepard was confined there in connection with his federal conviction for being a felon in possession of a firearm.
If convicted, Shepard faces a maximum sentence of five years in prison, three years of supervised release and a $250,000 fine.
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 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.
Lowell Woman Indicted for Misuse of Social Security Account Number and False Statement to Federal AgentsRead the Press Release
BOSTON – A Lowell woman was charged with misuse of a social security account number.
Estafany Elizabeth Montero Munoz, 28, of Lowell, was indicted with misuse of a social security account number and making false statements.
It is alleged that Montero Munoz provided a false social security account number on her driver's license application and misrepresented her name to a federal agent.
If convicted, Montero Munoz faces a maximum sentence of five years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Gregory K. Null, Special Agent in Charge of the U.S. Department of Homeland Security, Office of Inspector General, Office of Investigations; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by 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.
Former Investment Adviser Sentenced for Fraud That Caused over $3 Million in Losses to Retired ClientsRead the Press Release
BOSTON - A Plymouth man was sentenced yesterday for his role in an investment fraud scheme that resulted in the loss of $3 million to retired clients.
Jeffrey A. Liskov, 43, was sentenced by U.S. District Court Judge Denise J. Casper to 36 months in prison, three years of supervised release, and ordered to pay $3 million in restitution. In July 2013, Liskov pleaded guilty to investment adviser fraud.
From November 2008 through August 2010, Liskov defrauded retired advisory clients. In 2008, despite sustaining large personal losses in risky, highly volatile foreign currency exchange trading, Liskov began advising retired clients with conservative investment goals to allow him to engage in such trading with a portion of their retirement money. Liskov received significant performance fees for conducting this volatile trading on behalf of clients based on short-term gains, without regard to the long-term performance of Liskov’s trading in the clients’ accounts.
In late 2009, after sustaining large trading losses for long-time clients, Liskov started liquidating securities in the brokerage accounts of these clients and investing the proceeds in foreign currency exchange trading without the clients’ knowledge or authorization. In order to fund these investments behind his clients’ backs, Liskov used white-out correction fluid and other methods to create fraudulent documents that allowed him to open new foreign currency exchange trading accounts and/or to transfer funds from client brokerage accounts to foreign currency exchange trading accounts. This allowed Liskov to secretly engage in additional foreign currency exchange trading on behalf of long-time clients for whom he had already lost significant amounts of money – additional trading from which, in some instances, Liskov was able to pocket large performance fees. The trading Liskov engaged in with the funds from this fraud caused over $3 million in losses to the long-time clients, but garnered Liskov over $200,000 in performance fees.
United States Attorney Carmen M. Ortiz and Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Offices expresses appreciation for the significant assistance of the United States Securities and Exchange Commission, and also acknowledges the cooperation of the United States Commodity Futures Trading Commission. The case was prosecuted by Ryan M. DiSantis of Ortiz’s Economic Crimes Unit.
Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s Securities and Commodities Fraud Working Group. The interagency FFETF was created to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force, chaired by Attorney General Eric Holder, includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.
Pennsyvlania Man Sentenced for Hacking into Multiple Computer NetworksRead the Press Release
BOSTON – A Pennsylvania man was sentenced today for his role in a scheme to hack into computer networks and sell access to those networks.
Andrew James Miller, 23, of Devon, Penn., was sentenced by U.S. District Judge Mark Wolf to 18 months in prison, 36 months of supervised release, a $25,000 fine, and $6,497 in restitution. In August 2013, he pleaded guilty to conspiracy and two counts of computer intrusion.
From 2008 to 2011, Miller remotely hacked into a variety of computers located in Massachusetts and elsewhere, and, in some instances, surreptitiously installed “backdoors” into those computers. These “backdoors” were designed to provide future administrator-level, or “root,” access to the compromised computers.
Miller obtained log-in credentials to the compromised computers. He and his co-conspirators then sold access to these backdoors, as well as other log-in credentials. The access sold by Miller and his co-conspirators allowed unauthorized people to access various commercial, education and government computer networks. Miller attempted to sell access for $50,000 to two super computers at the Lawrence Livermore Laboratory in Oakland, Calif., that were part of the National Energy Research Scientific Computing Center.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Carmen M. Ortiz of the District of Massachusetts made the announcement today. The case was investigated by the FBI and prosecuted by Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Bookbinder of the U.S. Attorney’s Office for the District of Massachusetts.
Mattapan Man Charged with the Possession and Distribution of Child PornographyRead the Press Release
BOSTON – A Mattapan man was charged today with possession and distribution of child pornography.
Luis Miguel Gonazlez-Buzetta, of Mattapan, was charged with possessing and distributing child pornography. According to the criminal complaint affidavit, filed in U.S. District Court, federal agents learned that Gonzalez-Buzetta, using a Google email address, had been sending and receiving images containing child pornography to individuals located outside of Massachusetts. On June 28, 2013 a search was executed at Gonzalez-Buzetta’s home, where digital devices containing child pornography were recovered. According to the affidavit, a forensic examination of Gonzalez-Buzetta’s computer revealed a collection of child pornography depicting pre-pubescent girls engaged in sexual activity, including those previously images identified as having been distributed by the defendant.
If convicted, Gonzalez-Buzetta faces a mandatory minimum sentence of five years and up to 20 years in prison, a five year mandatory minimum and up to a lifetime of supervised release and a $250,000 fine on the charge of distribution of child pornography; and up to 10 years in prison, lifetime supervised release, and a $250,000 fine on the charge of possession of child pornography.
United States Attorney Carmen M. Ortiz, Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Bruce M. Foucart, Special Agent in Charge U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans, made the announcement today. The U.S. Attorney’s Office also wishes to thank the Suffolk County District Attorney’s Office, the United States Secret Service, and the Boston Police Department for their tremendous work on the case and their continued cooperation with the prosecution. The case is being prosecuted by Assistant United States Attorney Stacy Dawson Belf of Ortiz=s Major Crimes Unit.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
The case is brought as part of Project Safe Childhood. 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/.
The details contained in the complaint affidavit are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Executive of Two Publicly Traded Companies Sentenced to 15 Months in Securities Fraud SchemeRead the Press Release
BOSTON – A Canadian man who served as an executive of two public companies, both of which traded on the over-the-counter securities market, was sentenced today for his role in a securities fraud scheme.
Seijin Ki, 42, of Toronto, was sentenced by United States District Court Judge William G. Young to 15 months in prison, one year of supervised release, a $4,000 fine, and ordered to forfeit illegal earnings. In October 2013, Ki pleaded guilty to wire fraud and mail fraud.
Ki was convicted for his role in a scheme to pay secret kickbacks to an investment fund representative who had agreed to steer the investment fund to buy stock in Lightlake Therapeutics, Inc. and Church & Crawford, Inc. The kickbacks were concealed through the use of a sham consulting agreement and other fraudulent documents. Ki did not know that the purported investment fund representative was actually an undercover federal agent.
The conviction and sentence followed a year-long investigation focusing on preventing fraud in the micro-cap 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 and Exchange Commission.
Ki is one of 15 defendants convicted of crimes associated with the illegal kickback scheme.
The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the FBI undercover operation, cooperated with criminal authorities in bringing these charges, as well as those against the other defendants.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 Sarah E. Walters and Vassili Thomadakis 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.
Peabody Investment Advisor Charged with Defrauding ClientsRead the Press Release
BOSTON - A Peabody investment advisor was arrested today after being charged with defrauding several Boston-area residents out of their retirement savings.
John Michael Babiarz, 39, was charged in a six-count indictment unsealed today with wire fraud, mail fraud, money laundering and aggravated identity theft. Babiarz was previously charged in an administrative complaint brought by the Massachusetts Securities Division with engaging in unregistered and fraudulent activities in violation of the Massachusetts Uniform Securities Act and applicable regulations.
The indictment alleges that, following his termination in September 2011 from Bishop, Rosen & Co., a retail brokerage firm headquartered in New York, Babiarz falsely told certain former clients that he had taken a job at Fidelity Investments, the Boston-based asset management firm. Babiarz told other clients that he was working as an independent financial advisor. In fact, Babiarz did not work at Fidelity, and has never been employed by that firm. Babiarz told his clients that he could continue to manage their money if they opened brokerage accounts at Fidelity. Babiarz assisted the individuals in opening such accounts online, and in so doing, set up the user names and passwords for those accounts. Unbeknownst to his clients, Babiarz then caused their funds – or money he borrowed in their names on margin – to be diverted to accounts that he controlled at several other banks and brokerage firms. Babiarz used the money to buy a new home and to pay other personal expenses. As part of the case the government is seeking the forfeiture of a single-family home Babiarz recently purchased in Peabody.
If convicted on the charge of wire and mail fraud, Babiarz faces a maximum sentence of 20 years in prison, three years of supervised release and a fine of the greater of $250,000 or twice the gain or loss from the offense; on the charge of money laundering, Babiarz faces a maximum sentence of 10 years in prison, three years of supervised release and a $250,000 fine; and on the charge of aggravated identity theft Babiarz faces a mandatory consecutive term of two years in prison.
United States Attorney Carmen M. Ortiz and Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistance was also provided by the Massachusetts Securities Division and the Essex County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Stephen E. Frank of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Seeks to Intervene in Lawsuit Alleging H&R Block's Tax Preparation Website Is Inaccessible to Individuals with DisabilitiesRead the Press Release
WASHINGTON – The Civil Rights Division and U.S. Attorney Carmen M. Ortiz announced today that they have moved to intervene in National Federation of the Blind et al v. HRB Digital LLC et al, a private lawsuit alleging disability discrimination by HRB Digital LLC and HRB Tax Group Inc., subsidiaries of H&R Block Inc. In the memorandum and proffered complaint filed by the United States in support of its motion to intervene, the United States alleges that the H&R Block companies discriminate against individuals with disabilities and that their website, www.hrblock.com, is being operated in violation of Title III of the Americans with Disabilities Act (ADA), notwithstanding well-established and readily available guidelines for delivering web content in an accessible manner. The motion, attached complaint in intervention and supporting memorandum were filed in U.S. District Court for the District of Massachusetts’ Boston Division.
As alleged in the filings today, H&R Block is one of the largest tax return preparers in the United States. Its companies offer a wide range of services through www.hrblock.com, including professional and do-it-yourself tax preparation, instructional videos, office location information, interactive live video conference and chat with tax professionals, hybrid online and in-store services and electronic filing. Their website, however, is not accessible to many individuals with disabilities and prevents some people with disabilities from completing even the most basic activities on the site.
Today’s filings further state that many individuals with disabilities, including, among others, people who are blind, deaf or have physical disabilities with an impact on manual dexterity, use computers and the Internet with the help of assistive technologies. For example, screen reader software makes audible information that is otherwise presented visually on a computer screen; captioning translates video narration and sound into text; and keyboard navigation allows keyboard input rather than a mouse to navigate a website for individuals with visual, hearing or manual dexterity disabilities. Such technologies have been widely used for some time and there are readily available, well-established, consensus-based guidelines – the Web Content Accessibility Guidelines (WCAG) 2.0 – for making web content accessible to individuals with disabilities.
The complaint in intervention seeks a court order that would ensure that tax services offered through www.hrblock.com are fully and equally accessible to individuals with disabilities. The department also seeks an award of monetary damages for aggrieved individuals, including the two named plaintiffs and a civil penalty to vindicate the public interest.
“The web revolutionizes our lives daily and maximizes our independence in many areas,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “Inaccessible websites of public accommodations are not simply an inconvenience to individuals with disabilities – they deny persons with disabilities access to basic goods and services that people without disabilities take advantage of every day. An inaccessible website can also mean a business loses a customer it never knew it had.”
“We are building an electronic world in which we ever-increasingly live,” said U.S. Attorney Carmen Ortiz for the District of Massachusetts. “All benefit when, as the ADA requires, we build our online businesses, schools and other public spaces in a manner equally accessible to all.”
Title III of the ADA prohibits discrimination on the basis of disability by public accommodations in the full and equal enjoyment of the goods, services, facilities, privileges, advantages and accommodations. It also requires public accommodations to take necessary steps to ensure individuals with disabilities are not excluded, denied services, segregated or otherwise treated differently because of the absence of auxiliary aids and services, such as accurate captioning of audible materials and labeling of visual materials.
To find out more about federal disability rights laws, call the department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD) or access its ADA website at www.ada.gov. ADA complaints, including those involving the inaccessibility of www.hrblock.com, may be filed by email to [email protected].
Resident of Dominican Republic Sentenced on Illegal Reentry CaseRead the Press Release
BOSTON - A resident of the Dominican Republic was sentenced today for illegally reentering the United States after being previously deported.
Melvin Vinicio-Arias, 39, of Lawrence, was sentenced by U.S. District Court Judge Timothy S. Hillman to 56 months in prison. Vinicio-Arias also faces deportation to the Dominican Republic upon completion of his prison term. In July 2013, Vinicio-Arias pleaded guilty to illegal reentry of a deported alien.
Vinicio-Arias had previously been removed from the U.S. in 1998 and 2010; he re-entered the United States illegally at some point after each removal without permission. In 1998, Vinicio-Arias arrived to the U.S. from Puerto Rico and attempted to gain admission by presenting a Puerto Rican birth certificate to immigration inspectors in New York. Additionally, in 2006, he was convicted of felony narcotics offenses and subsequently deported back to the Dominican Republic in 2010. Vinicio-Arias most recently re-entered the U.S. at an unknown place and date and came to the attention of agents in June 2012.
United States Attorney Carmen M. Ortiz; and Sean Gallagher, Field Office Director, U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.
Illegal Alien in Court for Conspiring to Produce False IDRead the Press Release
Boston – A Dominican man was in court today for his alleged involvement in the identity theft and public corruption investigation related the Massachusetts Registry of Motor Vehicles.
Leonardo Burgos Espinal, 42, most recently residing in Springfield, has been charged by criminal complaint with bribing 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. It is alleged that this scheme took place between January 2011 and June 2012. This case is the most recent development in investigations involving identity theft and public corruption relating to the Massachusetts Registry of Motor Vehicles.
Burgos Espinal had his initial appearance today and remains in federal custody.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge 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 complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Massachusetts Attorney Convicted of Mortgage FraudRead the Press Release
BOSTON - A Pennsylvania man, formerly an attorney practicing in Boston, was convicted of mortgage fraud.
Charles R. Sammon, 37, of West Pittston, Penn., pleaded guilty before U.S. District Judge Richard G. Stearns to 13 counts of wire fraud, mail fraud and money laundering, all in connection with the mortgage fraud scheme that occurred in 2006 and 2007.
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 payments were 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 representing to the lenders that each borrower intended to occupy the property as his or her primary residence, when that was not the case, as Sammon knew.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 Sammon 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, which was not disclosed to the lender. In one transaction, he received more than $50,000.
Each of the loans for these 13 transactions went into default, 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.
Sentencing is scheduled for Feb. 19, 2014. Sammon faces a maximum sentence of 20 years in prison, to be followed by three years of supervised release and a $250,000 fine on each of the mail and wire fraud charges, and 10 years in prison, three years of supervised release and a $250,000 fine on the money laundering charge.
United States Attorney Carmen M. Ortiz; John Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Kevin Niland, Inspector in Charge of the United States Postal Inspection Service; Steven Ricciardi, Special Agent in Charge of the United States Secret Service; and Fred W. Gibson, Jr., Acting Inspector General of the Federal Deposit Insurance Corporation, made the announcement today.
The case is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit and DOJ Trial Attorney Alexander H. Berlin.
New Hampshire Man Indicted for Armed RobberyRead the Press Release
BOSTON – A New Hampshire man was charged yesterday with robbing a bank in Methuen.
Rafael Beamud, Jr, 32, of Salem, NH was indicted with armed robbery and possession of a firearm in furtherance of his crime.
On Feb. 21, 2013, Beamud walked into TD Bank and approached the teller while holding a firearm. Beamud threw plastic bags on the counter, ordered the teller to empty the cash drawers and to “make sure there’s no dye pack.” He also ordered the teller not to trip the alarm or he would shoot. The teller placed the money from the drawers into one of the plastic bags, and Beamud left the bank, leaving one of the plastic bags behind. The bag was processed for fingerprints which lead to Beamud’s identification. In April 2013, Beamud was arrested.
If convicted, on the charge of armed robbery, Beamud faces a maximum penalty of 25 years in prison, five years of supervised release and a $250,000 fine; on the charge of possession a firearm during the commission of his crime, Beamud faces a mandatory minimum term of seven years in prison and a maximum term of life 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 Chief Joseph Solomon of the Methuen Police Department, made the announcement today. The case is being prosecuted by Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
The details in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
RMV Project Manager Sentenced for Extortion and Mail FraudRead the Press Release
BOSTON – A Massachusetts Registry of Motor Vehicle (RMV) project manager was sentenced today for scheming to extort other service station owners who wanted to obtain a license to conduct motor vehicle safety inspections.
Mark C. LaFrance, 51, of Braintree, was sentenced by U.S. District Court Judge George A. O’Toole to three years in prison, two years of supervised release, a $12,500 fine and forfeiture of $50,000 in illegal proceeds. In August 2013, LaFrance pleaded guilty to mail fraud and conspiracy to extort money under color of official right.
LaFrance, project manager for Vehicle Safety and Compliance Services at the RMV, had oversight responsibilities for the entire motor vehicle inspection program within Massachusetts. His co-defendant, Simon Abou Raad, owned service stations in Tewksbury and Tyngsboro. In Massachusetts, applications to obtain a license to conduct motor vehicle safety inspections are intended to be granted off a waiting list with consideration given to geographic location. An applicant for a vehicle inspection license must pay a $100 fee and the actual equipment costs about $2,500. Because the inspection network was at its capacity, the RMV was not granting new licenses off the waiting list.
LaFrance and Abou Raad operated what was essentially “a black market” for such licenses through the use of LaFrance’s official position. LaFrance provided to Abou Raad a list of vehicle inspection stations that had a low volume of inspections and/or were planning to surrender their license and sell the inspection equipment. Abou Raad contacted the service station owner and offered to buy the inspection license and equipment for prices usually in the range of $5,000 to $6,000. Abou Raad offered for sale such licenses and equipment to service station owners desirous of acquiring a license for prices between $50,000 to $75,000. Abou Raad then arranged the transaction to appear as if the service station owners selling and buying the license were merging as a new business entity or with a change in ownership. Although he was aware that these purported mergers were not bona fide, LaFrance either approved the issuing of a new license or permitted others in the RMV to approve the new license. After the fraudulent transaction was completed and payment was made to Abou Raad, he split the illegal proceeds with LaFrance. Through this illegal scheme, Abou Raad sold at least 10 inspection licenses and/or machines for approximately $657,000.
Abou Raad pleaded guilty and is scheduled to be sentenced on December 12, 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. The case is being prosecuted by Assistant U.S. Attorneys S. Theodore Merritt and Robert Fisher of Ortiz’s Public Corruption Unit.Former Watertown Town Councilman and Ex-Wife Plead Guilty to Marijuana Distribution and Money LaunderingRead the Press Release
BOSTON – A former Watertown Town Councilman and his ex-wife pleaded guilty today to marijuana distribution and money laundering charges in a case that arose from a law enforcement seizure of more than 1,000 marijuana plants found in the former councilman’s warehouse in 2011.
Thomas Gus Bailey, 51, pleaded guilty to conspiracy to manufacture and distribute marijuana, distribution of marijuana, and conspiracy to commit money laundering. Barbara Waldman, 49, pleaded guilty to conspiracy to commit money laundering.
From at least 2001 through October 2011, Bailey ran a marijuana cultivation and distribution business which overlapped with the time he served on Watertown’s Town Council (2002 to 2006). Over this 10-year period, Bailey gradually expanded his lucrative marijuana business by moving his operation to successively larger indoor grow locations and hiring more workers to trim his marijuana plants and prepare the marijuana for sale. Further, beginning in at least 2006, he orchestrated a money laundering scheme where he and his co-conspirators, including his ex-wife, as well as his former mistress, laundered more than $1 million in drug proceeds. At Bailey’s direction, his co-conspirators made hundreds of separate cash deposits in amounts of $5,000 or less into their bank accounts, and then provided checks to Bailey in furtherance of his marijuana operation. Waldman was responsible for laundering at least $900,000 as part of this scheme. All of Bailey’s and Waldman’s co-defendants have also pleaded guilty in this case.
On the charge of conspiracy to manufacture and distribute marijuana, Bailey faces a maximum sentence of a lifetime in prison, lifetime of supervised release, and a $10 million fine; on the charge of distribution of marijuana, Bailey faces a maximum sentence of five years in prison, a lifetime of supervised release, and a $250,000 fine; on the charge of conspiracy to commit money laundering, Bailey and Waldman face a maximum sentence of 20 years in prison, a lifetime of supervised release, and a $500,000 fine or twice the value of the property involved in the money-laundering transactions, whichever is greater. Both defendants will be sentenced on Feb. 27, 2014.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; John G. Collins, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Acting Chief Keith MacPherson of the Waltham Police Department, made the announcement today. The Suburban Middlesex County Drug Task Force also provided assistance to the investigation. The case is being prosecuted by Young Paik of Ortiz’s Drug Task Force Unit.
Dominican Doctor and Assistant Arrested for Conspiring to Alter Fingerprints of Previously Deported AliensRead the Press Release
BOSTON – A Dominican doctor and his assistant were arrested for conspiring to harbor illegal aliens by altering their fingerprints through a surgical process.
Danilo Montero Ramirez, 61, and Teresa Araujo Martinez, 40, were arrested on November 16 for conspiracy to harbor illegal aliens and conspiracy to distribute controlled substances.
Earlier this month, federal agents became aware that Montero Ramirez, a licensed medical doctor in the Dominican Republic, was coming in the United States to meet with previously deported aliens and perform surgery on their hands to alter their fingerprints. Convicted criminals alter their fingerprints to help conceal their true identities from law enforcement and to disassociate themselves from their prior criminal history.
During the week of November 12, Montero Ramirez arrived in the United States from the Dominican Republic and arranged to perform surgery on individuals for $4,500. Montero Ramirez and Araujo Martinez made arrangements to perform the surgery on Nov. 16. Montero Ramirez and Araujo Martinez were arrested before the surgery began. Had the surgery taken place, these individuals would have been given controlled substances by Araujo Martinez. At the time of the arrests, agents seized surgical cutting equipment, gauze, bandages, syringes and prescription medication from the defendants. Araujo Martinez, also a Dominican citizen, was found to be in possession of a large quantity of pain medication, including Oxycodone and other substances.
If convicted on the charge of conspiracy to distribute a controlled substance, the defendants face a maximum of 20 years in prison, a fine of $1 million and three years of supervised release. If convicted on the charge of conspiracy to harbor aliens, the defendants face a maximum sentence of 10 years in prison, three years of supervised release, and a fine of $250,000.
United States Attorney Carmen M. Ortiz and Bruce 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 Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Florida Men Convicted of Defrauding Homeowners in Home Loan Modification ScamRead the Press Release
BOSTON – Two Florida men were convicted yesterday for defrauding homeowners in Massachusetts and elsewhere in a home loan modification scam.
Christopher S. Godfrey, 44, of Delray Beach, Fla., Dennis Fischer, 42, of Highland Beach, Fla., were convicted of conspiracy, wire fraud, mail fraud, and misuse of a government seal.
From January 2009 through May 2011, Godfrey, Fischer, and their employees, operating under the name Home Owners Protection Economics, Inc. (HOPE), made a series of misrepresentations to induce struggling homeowners looking for a federally-funded home loan modification to pay HOPE a $400-$900 up-front fee in exchange for HOPE's help obtaining modifications. Among these misrepresentations were the claims that, with HOPE's assistance, the homeowner was guaranteed to receive a loan modification under the Home Affordable Modification Program (HAMP), which is part of the Troubled Asset Relief Program (TARP) and is a federally-funded mortgage assistance program. HOPE also claimed that it operated as a non-profit. In exchange for these 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.
Sentencing is scheduled for February 13, 2014. The defendants face a maximum sentence on each count of 20 years in prison, three years of supervised release, a $250,000 fine, and restitution.
United States Attorney Carmen M. Ortiz, Acting Assistant Attorney General Mythili Raman, and Christy Romero, Acting Special Inspector General for the Troubled Asset Relief Program (SIGTARP) in Wash., D.C., made the announcement today.
The case is being prosecuted by Assistant U.S. Attorney Adam Bookbinder of Ortiz's Computer Crimes Unit and Trial Attorney Mona Sedky of the Department of Justice's Computer Crime and Intellectual Property Section, Criminal Division.Former Watertown Police Officer Sentenced for Passing False Prescriptions Using Another's IdentityRead the Press Release
BOSTON - A former Watertown Police Officer was sentenced today for passing false prescriptions, using a stolen identify.
Joseph Deignan, 58, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 90 days in prison and three years of supervised release. In August 2013, Deignan pleaded guilty to unlawful possession of a controlled substance by fraud and of fraud in connection with identification documents.
Deignan, a former Watertown Police Officer who retired in February 2012, used the identity of another person to obtain oxycodone and other controlled substances by forging prescriptions in the other person’s name. Deignan stole the driver’s license of the person in 2010, while he was working as the traffic supervisor for the Watertown Police Department. Using various doctors’ information, Deignan forged over 100 prescriptions for controlled substances and used the stolen identity to fill the scripts.
United States Attorney Carmen M. Ortiz and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The case was prosecuted by Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Revere Man Arrested for Conspiring to Produce False IDRead the Press Release
BOSTON - A Revere man was arrested today in connection with a conspiracy to fraudulently issue identification documents.
Leonel Sanchez, 52, was arrested 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. This arrest 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 complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bulger Sentenced to Two Life TermsRead the Press Release
BOSTON – In U.S. District Court in Boston today, James J. Bulger was sentenced for operating a criminal enterprise that was responsible for the murder of 11 people, as well as numerous counts of extortion, money laundering, drug dealing, and firearms possession.
U.S. District Court Judge Denise J. Casper sentenced Bulger to two consecutive life terms plus five years and $19.5 million in restitution. During the sentencing hearing this morning, Judge Casper told Bulger that, “The scope, the callousness, the depravity of your crimes, is almost unfathomable.”
On August 12, 2013, Bulger was convicted by a jury following a two-month long trial. The jury found the former fugitive guilty of racketeering conspiracy and numerous racketeering acts of murder, extortion, narcotics distribution, money laundering and possession of firearms including machineguns. In their verdict, the jury found that Bulger played a role in the murders of Deborah Hussey, Paul McGonagle, Edward Connors, Thomas King, Richard Castucci, Roger Wheeler, Brian Halloran, Michael Donahue, John Callahan, Arthur Barrett and John McIntyre.
“The loss and anguish suffered by these families and many others is unimaginable. What is undeniable is the fact that all of this suffering was caused by James Bulger – who is now, finally being held accountable for his horrific acts,” said United States Attorney Carmen M. Ortiz.
Bulger, the former leader of the Winter Hill Gang, ran a vast criminal network that emanated from South Boston and controlled much of the city and the surrounding areas during the 1970s and 1980s. In order to generate money and maintain dominance among other criminal enterprises, Bulger and his associates engaged in numerous illegal activities such as loansharking, extortion of local business owners and bookmakers, trafficking of narcotics and firearms, and murder. Bulger, and associates under his direction, used violence, threats, and intimidation to carry out these illegal activities.In late 1994, upon learning of his impending indictment, Bulger fled Massachusetts. On June 22, 2011, Bulger and his companion, Catherine Greig, were arrested in Santa Monica, California after 16 years on the run. Greig was later convicted of conspiracy to harbor a fugitive and is currently serving eight years in federal prison.
U.S. Attorney Ortiz; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Michael E. Horowitz, Inspector General for the Department of Justice; Vincent Lisi, Special Agent in Charge of the FBI’s Boston Field Division, and U.S. Marshal John Gibbons made the announcement today.
The case was prosecuted by Assistant U.S. Attorneys Fred M. Wyshak, Jr., Brian T. Kelly and Zachary Hafer of Ortiz’s Public Corruption and Special Prosecutions Unit.
Maryland Man Pleads Guilty to “Black Money” Conspiracy and Admits Engaging in A Series of Similar Schemes in Massachusetts, Rhode Island, and ConnecticutRead the Press Release
BOSTON – A Maryland man was convicted yesterday in United States District Court in Springfield on 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., pleaded guilty before U.S. District Judge Michael A. Ponsor to conspiracy, wire fraud, and possession of altered U.S. currency with intent to defraud.
During the plea hearing, Williams agreed to repay $329,000 to the victims of five separate “black money” schemes that he perpetrated in 2011. Williams admitted that he perpetrated similar “black money” schemes in Billerica, Leominster, Groton, Conn., and Woonsocket, RI.
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 United States 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.
Williams faces a maximum sentence of 20 years in prison on the wire fraud count and possession of altered U.S. currency count and a maximum of five years in prison on the conspiracy count. Each count carries a maximum of three years of supervised release and a $250,000 fine. The co-conspirator was indicted for a similar scheme in RI, but fled prior to trial, and is a fugitive from justice.
United States Attorney Carmen M. Ortiz and Steven Ricciardi, Special Agent in Charge of the United States Secret Service, Boston Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Springfield Man Sentenced for Selling CocaineRead the Press Release
BOSTON - A Springfield man was sentenced in U.S. District Court in Springfield today for cocaine possession and distribution.
Bryan Murph, 24, was sentenced by U.S. District Court Judge Michael A. Ponsor to 14 months in prison and three years of supervised release. In April 2013, Murph pleaded guilty to two counts of possession with intent to distribute and distribution of cocaine base. On two occasions in February 2012, the defendant sold crack cocaine to a cooperating witness.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Mark Mastroianni, Hampden County District Attorney; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Commissioner William Fitchet of the Springfield Police Department; and Sheriff Michael J. Ashe, Jr., of Hampden County, made the announcement today. The case was prosecuted by Alex J. Grant of Ortiz’s Springfield Branch Office Unit.
Former Investment Adviser Sentenced to Ten Years for Fraud and Tax EvasionRead the Press Release
BOSTON – A North Attleboro man was sentenced yesterday on fraud and tax evasion charges arising from his operation of a financial planning service called The Center for Senior Financial Planning.
John A. Picini, 54, was sentenced by U.S. District Court Judge Joseph L. Tauro to 121 months in prison, three years of supervised release, $3.5 million in restitution to his investment clients, and $490,000 in unpaid taxes to the IRS.
Picini targeted senior citizen investors as his clients and persuaded them to cash out annuities for the supposed purpose of investing with Picini. Picini failed to roll these sums over into annuities, as promised, and instead spent a total of $3.5 million of 70 victims’ retirement savings. Picini lulled his victims into believing that their funds were safely invested by producing bogus account statements and also by making periodic payments to his victims with sums that supposedly represented investment earnings, but which were actually sums stolen from other victims.
United States Attorney Carmen M. Ortiz; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and John G. Collins, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The investigation was assisted by the Massachusetts Securities Division and the case was prosecuted by Lori J. Holik of Ortiz’s Economic Crimes Unit.
Dominican Man Pleads Guilty to Social Security and Passport FraudRead the Press Release
BOSTON - A Dominican man pleaded guilty today to theft of public money and passport fraud.
Antonio Pulinario Brea, 55, pleaded guilty to theft of public money and two counts of making a false statement in a passport application. In July 2013, Brea was indicted. Sentencing is scheduled for January 31, 2014.
From 2004 to 2013 Brea illegally received more than $60,000 in Social Security disability payments under another person's identity. He also used the alias to apply for United States passports in 2010 and 2011.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Office of Inspector General, Social Security Administration, Office of Investigations, Boston Field Division; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; and David Hall, Special Agent in Charge of the U.S. Department of State’s Bureau of Diplomatic Security’s Boston Field Office, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
California Man Arraigned on Multi-Million Dollar Fraud ScamRead the Press Release
BOSTON – A California man was arraigned yesterday after being indicted for defrauding a number of borrowers looking for multi-million dollar financing.
Damien Hess, a/k/a John Hess, 36, the former Chief Executive Officer of Quest Capital Finance (Quest), was arraigned yesterday after being indicted for wire fraud and conspiracy.
The indictment alleges that between 2008 and 2012, Hess and his co-defendant, Lucas Ford, falsely represented that Quest was a financing company with hundreds of millions of dollars to lend to prospective borrowers. Hess and Ford told these borrowers that in order to close on these loans, the borrowers first needed to put hundreds of thousands of dollars into escrow accounts that would be held by a third party until all contingencies for the financing were resolved. Contrary to explicit statements contained in the escrow agreements, prior to all contingencies being resolved and without providing any financing for the prospective borrowers, Ford and Hess took all or most of the escrowed money and transferred it to their company. Those stolen funds were later transferred to other business and personal accounts and used for personal expenses, such as plastic surgery and trips to Disneyland. When the deadlines for the various loan closings passed and borrowers asked where their loans were, Hess and Ford made false representations that the financing would be available shortly and provided a series of false excuses to explain why the funding was not yet ready. In total, Hess and Ford took into Quest over $2.8 million worth of borrower deposits and never provided any financing.
If convicted, the maximum sentence under the statute is 20 years in prison for the wire fraud counts, three years of supervised release and a fine of the greater of $250,000 per count or twice the gross loss or gain resulting from the offense.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Rafael A. Medina, Special Agent in of the U.S. Postal Service, Office of Inspector General, Northeast Area Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Sara Miron Bloom and Patrick M. Callahan of Ortiz’s Office.
The details contained in the Indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Businessman Convicted in Fraud SchemeRead the Press Release
BOSTON – The former Treasurer and Chairman of the Board of Directors of Nevada-based First Global Financial Corporation was convicted today for his participation in a fraudulent kickback scheme.
Albert Reda, 67, of Tustin, Calif., was convicted following a six-day jury trial. Reda was convicted of wire fraud and mail fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for February 11, 2014.
Reda was convicted for his participation in a scheme to pay secret kickbacks to an investment fund representative in exchange for having the investment fund buy stock in the defendant’s company, a publicly traded company that 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 the defendant did not know was that the purported investment fund representative was actually an undercover agent with the Federal Bureau of Investigation.
The conviction followed a year-long investigation focusing on preventing fraud in the micro-cap 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 SEC.
To date, 15 individuals have been charged arising out of the FBI’s undercover operation, and all 15 have been convicted, either after trial or by way of a guilty plea.
The statutory maximum penalties for mail and wire fraud are 20 years in prison to be followed by three years of supervised release and a $250,000 fine.The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the FBI undercover operation, cooperated with criminal authorities in bringing these charges, and charges against other defendants who participated in the kickback scheme. The Financial Industry Regulatory Authority (FINRA) provided assistance with the trial.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, announced the conviction 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.
U.S. Secret Service’s National Threat Assessment Center Provides Training to Law Enforcement, School Personnel and Campus Officials in WorcesterRead the Press Release
U.S. Secret Service’s National Threat Assessment Center Provides Training to Law Enforcement, School Personnel and Campus Officials in Worcester
BOSTON – The United States Attorney’s Office, Worcester County District Attorney’s Office, Worcester County Sheriff’s Office and U.S. Secret Service’s Boston office today hosted researchers from the National Threat Assessment Center (NTAC) to provide law enforcement, school personnel and university officials with information on Managing Threatening Situations and Creating Safe School Climates. Over 200 attended the conference which was held at Worcester Technical High School.During the conference, participants were provided information on the foundations of threat assessment which is a behavior-based approach used by law enforcement and others to identify and assess those individuals who pose a risk of engaging in targeted violence. NTAC also highlighted its research related to school safety and the adaption of the threat assessment approach in both K-12 and higher education settings. They also discussed how privacy laws such as HIPAA and FERPA can impact the ability to identify students of concern, and provided participants with information on types of information that can be shared to assist with a threat assessment investigation.
“We are very grateful to the U.S. Secret Service’s NTAC for sharing their expertise on how to develop a comprehensive plan to prevent targeted violence,” said United States Attorney Carmen M. Ortiz. “It is our hope that the information provided today will provide law enforcement, schools and universities with additional tools on how to establish a culture that promotes and implements effective violence prevention and intervention strategies.”
“Having the most innovative programs and best teachers doesn’t matter if we can’t put our children in a safe environment every day,” said Worcester County District Attorney Joseph D. Early Jr. “The experts from the Secret Service gave us a lot of great information today that will help keep our children safe.”"It's an honor for the Sheriff's Office to partner with District Attorney Early, U.S. Attorney Carmen Ortiz and the U.S. Secret Service for the Annual Safe School Summit,” said Worcester County Sheriff Lewis G. Evangelidis. “Today's forum provides us with a great opportunity to share critical public safety information on topics such as violence prevention and emergency response to facilitate a safe school climate. Addressing these important safety issues underscores our commitment to making sure our students and teachers always feel safe and secure in their school environment."
For more information on the National Threat Assessment Center and its research, please visit http://www.secretservice.gov/ntac.shtml
For information on the Department of Justice’s Defending Childhood Initiative, please visit http://www.justice.gov/defendingchildhood/ and
http://www.futureswithoutviolence.org/section/our_work/child_wellbeing/defending_childhood_initiativeBelchertown Man Sentenced for Advance Fee Fraud Scheme That Defrauded 130 VictimsRead the Press Release
BOSTON - A Belchertown, Mass., man was sentenced today in U.S. District Court in Springfield for running an advance fee fraud scheme that defrauded 130 victims of $800,000 and possessing a firearm.
John Sacco, 65, was sentenced by U.S. District Court Judge Michael A. Ponsor to 46 months in prison, three years of supervised release and $86,460 in restitution. In May 2013, Sacco pleaded guilty to conspiracy to commit fraud, mail fraud, and being a felon in possession of a firearm.
From August 2008 to December 2009, Sacco and others ran a national advance fee scheme that defrauded approximately 130 victims of over $800,000. Sacco placed advertisements in national newspapers promising would be investors that they could make hundreds of thousands of dollars a year by working with Sacco’s company, SAC Financial Corp, as brokers of business loans to individuals with poor credit. The individuals who responded to the advertisements were subjected to high pressure sales tactics and false references which convinced them to send Sacco an up-front fee of between $3,500 and $6,900. Thereafter, Sacco strung the victims along through a fictitious loan brokerage process which resulted in no actual loans being made.
Sacco also was sentenced for being a felon in possession of a firearm. In 2001, he was convicted in federal court of defrauding Monson Savings Bank of $236,000. As a convicted felon, Sacco was prohibited from possessing a firearm. In Nov. 2010, a 12-gauge shotgun and 16 shotgun shells were seized from Sacco’s bedroom during the execution of a court ordered search warrant for Sacco’s residence.
United States Attorney Carmen M. Ortiz; Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case was prosecuted by Kevin O'Regan of Ortiz’s Springfield Branch Office.
U.S. Secret Service’s National Threat Assessment Center Provides Training to Law Enforcement, School Personnel and Campus Officials in BridgewaterRead the Press Release
BOSTON – The United States Attorney’s Office, Plymouth County District Attorney’s Office, U.S. Secret Service’s Boston office and Bridgewater State University today hosted researchers from the National Threat Assessment Center (NTAC) to provide law enforcement, school personnel and university officials with information on Managing Threatening Situations and Creating Safe School Climates. Over 200 attended the conference which was held at Bridgewater State University.
During the conference, participants were provided information on the foundations of threat assessment which is a behavior-based approach used by law enforcement and others to identify and assess those individuals who pose a risk of engaging in targeted violence. NTAC also highlighted its research related to school safety and the adaption of the threat assessment approach in both K-12 and higher education settings. They also discussed how privacy laws such as HIPAA and FERPA can impact the ability to identify students of concern, and provided participants with information on types of information that can be shared to assist with a threat assessment investigation.
“We are very grateful to the U.S. Secret Service’s NTAC for sharing their expertise on how to develop a comprehensive plan to prevent targeted violence,” said United States Attorney Carmen M. Ortiz. “It is our hope that the information provided today will provide law enforcement, schools and universities with additional tools on how to establish a culture that promotes and implements effective violence prevention and intervention strategies.”
District Attorney Timothy J. Cruz stated, “I am pleased that we were able to once again present this important information from the National Threat Assessment Center (NTAC) to our local schools and law enforcement personnel. The researchers from the NTAC did a tremendous job and it is our hope that today’s information will help guide schools and local law enforcement as they work to keep our schools safe from targeted violence."For more information on the National Threat Assessment Center and its research, please visit http://www.secretservice.gov/ntac.shtml
For information on the Department of Justice’s Defending Childhood Initiative, please visit http://www.justice.gov/defendingchildhood/ and
http://www.futureswithoutviolence.org/section/our_work/child_wellbeing/defending_childhood_initiativeLynn Man Convicted for Possession of FirearmsRead the Press Release
BOSTON – A Lynn man was convicted today for being a previously convicted felon in possession of firearms and ammunition.
Sean Meola, 41, pleaded guilty before U.S. District Judge Douglas P. Woodlock to being a previously convicted felon in possession of firearms and ammunition.
In January 2013, the federal agents and Methuen Police received information that Meola was looking to sell a large number of firearms. On January 14, 2013, Meola and another individual arrived at a prearranged location in Methuen. Once at the location, Meola sold to an agent three semi-automatic firearms, two 12-gauge shotguns, and 29 rounds of .44 caliber ammunition. The weapons were later seized by the federal agents. Meola, a previously convicted felon, was arrested following the issuance of a complaint in the United States District Court.
Sentencing is scheduled for January 2014. Meola faces up to 10 years in prison, three years of supervised release and a $250,000 fine.
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 Captain of the Methuen Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.