District of Massachusetts
Press releases recorded for this federal judicial district.
Springfield Man Convicted of Drug ConspiracyRead the Press Release
BOSTON - A Springfield man was convicted late yesterday in U.S. District Court in Springfield of drug conspiracy charges.
Jose D. Cruz, 37, pleaded guilty before U.S. District Court Judge Michael A. Ponsor to conspiracy to distribute heroin and possession with intent to distribute heroin.
In February 2012, Cruz’s co-defendant, Ariel Acevedo arranged for the sale of approximately 150 grams of heroin to another individual. During numerous conversations, which were consensually monitored and recorded by the Drug Enforcement Administration, Acevedo discussed quantities, pricing, and quality of the heroin. During the actual drug sale, Cruz provided the individual with a package containing 150 grams of heroin, and the individual provided Acevedo with $11,250 in cash.
Judge Ponsor scheduled sentencing for June 17, 2013. Pursuant to his plea agreement, Cruz faces between 60 and 71 months in prison to be followed by four years of supervised release and a $250,000 fine. Acevedo is scheduled to plead guilty on March 19.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division; Mark G. Mastroianni, Hampden County District Attorney; and Springfield Police Commissioner William Fitchet made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
Chicopee Man Receives 15 Years for Child ExploitationRead the Press Release
BOSTON - A Chicopee man was sentenced today for attempting to produce sexually explicit images of children.
Joseph Hiersche, 40, was sentenced by U.S. District Judge Denise J. Casper to 15 years in prison to be followed by 10 years of supervised release. In November 2012, Hiersche pleaded guilty to seven counts of sexual exploitation of a child, receipt of child pornography and possession of child pornography.Between March 2010 and March 2012, Hiersche downloaded numerous images and videos of child pornography from the Internet. Using hidden cameras, Hiersche also took videos of nude children with the intent to produce sexually explicit images of the children. Hiersche made these videos in order to send them to a person with whom he had established an online relationship.
“Our duty, as members of law enforcement, is to protect members of society, especially the most vulnerable members of our society, children,” said United States Attorney Carmen M. Ortiz. “Victims of sexual exploitation are robbed of their innocence and of their childhood. We will continue to work relentlessly to ensure that individuals who target children for their own personal satisfaction are investigated and prosecuted.”
United States Attorney Carmen M. Ortiz; Mark G. Mastroianni, Hampden County District Attorney; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Commissioner William Fitchet of the Springfield Police Department; and Chief John R. Ferraro, Jr. of the Chicopee Police Department made the announcement today. The case was prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Unit.Newburyport Man Indicted for Social Security FraudRead the Press Release
BOSTON – Charges of social security fraud against a Newburyport man were unsealed today in federal court.
John Flaherty, 60, was indicted yesterday with theft of government money. The indictment alleges that from 1999 to 2012, Mr. Flaherty received Social Security payments intended for his mother, Eileen Flaherty who had passed away. Flaherty received payments totaling $168,830.The maximum sentence under the statute is 10 years in prison and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Office, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry 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.
Man Indicted in International Drug Conspiracy Extradited to Boston from ColombiaRead the Press Release
BOSTON - A man from Colombia, charged in an international cocaine conspiracy in 2010, made his initial appearance in federal court today after he was ordered to be extradited to the United States from Colombia.
Roberto Mendez-Hurtado, 49, was originally charged in 2010 with conspiracy to import and distribute and manufacture five kilograms or more of cocaine for unlawful importation to the United States.
According to the indictment, Mendez-Hurtado conspired between June 2008 and April 2010 to import from Columbia and Venezuela at least five kilograms of cocaine. Mendez-Hurtado is alleged to have manufactured and distributed at least five kilograms of cocaine knowingly and with intent that such substance would be unlawfully imported into the United States.
Pursuant to a request for extradition from the U.S. government, in August 2011, law enforcement authorities arrested him in Colombia. In February 2012, the Supreme Court from Colombia ordered his extradition to U.S. District Court in Boston to face charges.
The maximum sentence under the statute is life in prison to be followed by five years of supervised release and a fine of up to $4 million. Mendez-Hurtado also faces similar charges in the Southern District of Florida and the District of Puerto Rico.
United States Attorney Carmen M. Ortiz and John J. Arvanitis, Special Agent in Charge of U.S. Drug Enforcement Administration, New England Division, made the announcement today. The case was investigated by the DEA's New England Field Division with assistance from DEA's Bogota Country Office, the Colombian National Police, and Dutch law enforcement authorities in Aruba from Recherche Samenwerkings Team (RST). The United States Marshals Service provided assistance with the apprehension of Mendez-Hurtado.
The case is being prosecuted by Assistant U.S. Attorneys Neil J. Gallagher, Jr. of Ortiz's Organized Crime Drug Enforcement Task Force 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.
Former Watertown Police Officer Charged with Passing False Prescriptions Using Another’s IdentityRead the Press Release
BOSTON - A Framingham man was charged in federal court in connection to crimes committed while in his official capacity as a Watertown police officer.
Joseph Deignan, 57, was charged with unlawful possession of a controlled substance by fraud and fraud in connection with identification documents.
According to the complaint affidavit, 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 is alleged to have stolen the driver’s license of the person in 2010, while he was working as the traffic supervisor for the Watertown Police Department.
The maximum sentence under the identity theft count is 15 years in prison, followed by three years of supervised release and a $250,000 fine. Deignan was arrested this morning and is scheduled for his initial appearance at 3:15 p.m.
United States Attorney Carmen M. Ortiz and John Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division made the announcement today. The DEA was provided assistance from the Marlborough Police Department. The Watertown Police Department has been cooperative during the investigation. The case is being prosecuted by Assistant U.S. Attorney Eugenia 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.
Quincy Man Sentenced for Running Illegal Gambling Business in Boston’s Chinatown, Using Violence to Collect DebtsRead the Press Release
Boston - As part of an ongoing investigation into extortion and illegal gaming in Boston’s Chinatown, a Quincy man was sentenced today for running an illegal gambling business. The investigation included a court-authorized wiretap on the defendant’s phone and a series of consensual video-recordings made inside gambling dens.
Minh Cam Luong, a/k/a “Ming Jai,” 48, was sentenced by U.S. District Chief Judge Patti Saris to 84 months in prison to be followed by three years of supervised release, forfeiture pursuant to the agreed forfeiture orders, and a special assessment in the amount of $1,100. Luong pleaded guilty in September 2012 to an 11-count-indictment charging him with running an illegal gambling business and using threats of violence, and actual violence, to collect debts from gamblers and others who borrowed money. Judge Saris imposed the sentence today at the end of a three-day evidentiary sentencing hearing. The sentence represented an upward departure from the Guideline range as Judge Saris had calculated it. She based her upward departure on Luong’s “appalling” threats of violence and use of actual violence to terrify his numerous extortion victims over about a two-year period.
“The people of Boston’s Chinatown deserve to live in peace and without violence in their community,” said United States Attorney Carmen M. Ortiz. “We are hopeful that this lengthy sentence will offer some relief to the community. Prosecuting organizations who prey on others will continue to be a priority for my office.”Luong admitted that he managed the illegal gambling business, and that numerous people were victims of his extortionate collections scheme. Luong’s business ran a series of three illegal gambling dens, on Edinboro Street, Harrison Avenue and Beach Street in Chinatown, from early July 2009 through June 2011. The gambling dens offered high-stakes gambling on Chinese table games. The most lucrative game was “pai gau,” in which the gamblers play against each other, not against the “house.” The “house” collects a five percent commission on every winning hand, and the winnings on each hand could range from hundreds to tens of thousands of dollars.
Luong and his company lent large amounts of money to gamblers and others. When debtors did not pay, Luong and his associates threatened to come after them and beat them up. Others, including the operators of other Chinatown gambling dens, were beaten up in order to maintain Luong’s “face,” and his ability to collect debts from frightened debtors.
During one of the intercepted conversations, Luong told a criminal associate that he had opened his illegal gambling business in Boston rather than in New York, because Boston was “like the countryside,” but “quite wealthy,” and “these country folks don’t know anything.” Luong said that his Beach Street gambling den had made $100,000 during a three-day period around Chinese New Year 2011, and that normally, the gambling den generated $60,000 or $70,000 per week in profits.
In several other intercepted conversations and voice mail messages, Luong threatened debtors with dire consequences if they did not pay up. Luong told one debtor that the debtor’s whole family would “go to hell” if he did not pay. Luong told the debtor about someone else whom Luong had beaten up the previous night, and warned the debtor that the same could happen to him. Luong told another debtor that she should not think that her being a woman would prevent Luong from beating her up if she did not pay.“Boston is one of a dozen cities nationwide which the FBI has identified as having a prevalence of Asian criminal enterprises. By identifying the threat posed by these enterprises, the FBI and our law enforcement partners can be persistent, methodical, and unyielding in investigating their activity,” said Richard DesLauriers, Special Agent in Charge of the FBI’s Boston division. “The residents of Boston’s Chinatown and others affected by Mr. Luong’s crimes should know that we are continuing to pursue those whose criminal activity disrupts the community’s economic and social vibrancy.”
“The defendant in this case gambled and lost. Illegal gambling is not a victimless crime. Those who participate in these criminal enterprises have no problem using threats and violence to collect outstanding debts,” said Boston Police Commissioner Edward F. Davis. “Today’s sentence sends a powerful message; this type of activity will not be condoned.”
“In addition to breaking the law by conducting unauthorized games of chance and usurious lending, gambling houses breed and attract violence,” said Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police. “The people who run the games use intimidation and violence to collect debts, and the games themselves are targets for criminals, often armed, who are looking to do a rip for a quick score. Operations like the one Minh Cam Luong ran cannot be tolerated.”
Quincy Police Chief Paul Keenan said, “The Quincy Police are pleased with the outcome of the Minh Cam Luong case. The outcome was the result of a long and difficult investigation working in collaboration with a number of law enforcement organizations, the FBI, the IRS, Boston Police, Medford Police, Mass Department of Corrections, State Police and the US Attorney’s Office.”
“The Massachusetts Department of Correction is committed to working with other criminal justice agencies in a joint effort to ensure public safety,” said Luis S. Spencer, Commissioner of the Massachusetts Department of Correction.
Luong was initially charged along with nine others in 2011. The indictment was superseded in August 2012, charging two additional individuals. To date, all 10 of the defendants charged in the initial indictment and one of the defendants added by the superseding indictment have pleaded guilty to illegal gambling business or extortionate collections conspiracy charges. Last week, Pau Hin, also of Quincy, whom the government described in court as Luong’s partner and primary enforcer and debt collector, pleaded guilty to illegal gambling business and extortionate collections charges, and also pleaded guilty to participating with Luong in a conspiracy to make extortionate high-interest loans to gamblers and others in Chinatown and at Foxwoods casino. Pau’s sentencing is scheduled for June 5, 2013.
United States Attorney Ortiz; SAC DesLauriers; William P. Offord, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation in Boston; Boston Police Commissioner Davis; Colonel Alben; Quincy Police Chief Keenan; Medford Police Chief Leo A. Sacco, Jr.; and Commissioner Spencer; made the announcement. The cases are being prosecuted by Assistant U.S. Attorneys Richard L. Hoffman and Timothy E. Moran of the Organized Crime Strike Force Unit.Two Men Arrested for Drug TraffickingOver One Kilo of Heroin and Bullet Proof Vest Recovered from Search TodayRead the Press Release
BOSTON - A criminal complaint was unsealed today charging two men, from Bourne and New Bedford, with federal narcotics trafficking. The complaint resulted from federal, state and local authorities efforts to reduce violence and drug trafficking in the New Bedford area by identifying and investigating individuals involved in these criminal activities.
Francisco Monteiro, a/k/a Cisco, (“Monteiro”), 32, of Bourne, is charged with conspiracy to distribute heroin; and Junior Lopes (“Lopes”), 34, of New Bedford, is charged with conspiracy to distribute heroin.
During a court authorized search of Lopes’s home today at 162 Apponagansett Street in New Bedford, agents seized approximately one and a half kilograms of heroin as well as a bullet-proof vest. During the search of Monteiro’s residence today at 4D Beach Plum Lane, in Bourne, agents seized packaging materials, cell phones and other evidence consistent with drug trafficking.
Monteiro and Lopes are charged with conspiring among themselves, and others, to distribute over 100 grams of heroin. It is alleged that on Feb. 15, 2013, Monteiro and Lopes arranged and facilitated the sale of almost 100 grams of heroin to a cooperating witness in New Bedford. Federal agents recorded telephone calls to Monteiro where he agreed to provide heroin to a cooperating witness (“cw”). Monteiro and Lopes allegedly drove with the cw to an address in New Bedford where the heroin sale was completed. Monteiro and Lopes further planned and arranged for the sale of an additional 50 grams of heroin to the cw that was to take place on Feb. 25, 2013, although the sale was not completed.As detailed in the complaint, Monteiro and Lopes have extensive criminal histories of violent crimes, including armed robberies of other drug dealers to obtain money to fund their drug dealing activities. Monteiro has prior convictions for drug distribution and unlawful possession of a firearm. In 2003, Lopes was convicted in U.S. District Court in Boston for gun and drug trafficking and received a sentence of 130 months. Lopes is currently on supervised release for those offenses.
The maximum penalty under the statute if convicted for both defendants is a mandatory minimum sentence of 20 years, up to life in prison; a fine of up to $20 million; and a minimum period of supervised release of 10 years.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; C. Samuel Sutter, Bristol County District Attorney; Sheriff Thomas M. Hodgson of Bristol County; Chief Dennis R Woodside of the Bourne Police Department; and Chief Richard M. Stanley of the Wareham Police Department made the announcement today.
This case is being prosecuted by Christopher Pohl in Ortiz’s Organized Crime Strike Force Unit.
The details contained in the complaint are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
South Boston Man Sentenced for Bank RobberiesRead the Press Release
Boston - A South Boston man was sentenced today in federal court for committing four bank robberies.
William J. Coleman, 34, was sentenced by U.S. District Judge Joseph L. Tauro to 10 years in prison, to be followed by three years of supervised release and ordered to pay $17,211 in restitution to four banks. Coleman pleaded guilty to four counts of bank robbery on Dec. 5, 2012.Between Dec. 7, 2011 and Jan. 3, 2012 Coleman committed four bank robberies in the City of Boston, and at least two of the bank robberies involved the use of a hand gun. On Dec. 7, 2011, Coleman robbed the Citizens Bank at 77 Franklin Street, Boston of $1,730; On Dec. 16, 2011 Coleman robbed the Sovereign Bank at 125 Summer Street, Boston of $3,880; On Dec. 27, 2011, Coleman robbed the People’s United Bank at 176 Franklin Street, Boston of $3,601; and on Jan. 3, 2012, Coleman robbed the Sovereign bank at 125 Summer Street, Boston of $8,000.
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division; and Boston Police Commissioner Edward Davis made the announcement today. The case was prosecuted by Assistant U.S. Attorney David G. Tobin of Ortiz’ s Major Crimes Unit.
Illinois Man Sentenced on Interstate Sex OffenseRead the Press Release
Boston - An Illinois man was sentenced today in federal court for an interstate sex offense involving a 15-year-old girl.
James Waddell, 36, of Montrose, Ill., was sentenced by U.S. District Judge Michael A. Ponsor to five years in prison, to be followed by five years of supervised release. Waddell pleaded guilty to one count of Inducing Travel to Engage in Illegal Sexual Activity on Nov. 14, 2012.Waddell met a 15-year-old girl in Massachusetts on the Internet through a role-playing game. Waddell later began communicating with the girl by telephone and webcam, and by the spring 2009, Waddell was encouraging the girl to masturbate on the webcam while he recorded it. In August 2009, Waddell traveled from Illinois to Enfield, Conn. to meet the girl and have sex with her. Waddell induced her to cross from Massachusetts into Connecticut so that he could take her to a motel room where he had sex with her and recorded it. At the time, the sex was a violation of Connecticut law because Waddell was 31 and the girl was 15.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The Federal Bureau of Investigation, Massachusetts State Police and Longmeadow Police Department also provided assistance. The case was being prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz's Springfield Branch Office.
New York City Woman Sentenced for Mortgage FraudRead the Press Release
BOSTON - A New York City woman was sentenced Monday afternoon for using a stolen identification to sign fraudulent mortgage loan documents.
Judy Bonas, 56, was sentenced by U.S. District Judge George A. O’Toole to six months in prison, followed by two years of supervised release and ordered to pay $936,600 in restitution to the mortgage lenders. In April 2012, Bonas pleaded guilty to six counts of wire fraud and three counts of identity fraud.Bonas was solicited by co-defendant Peterson Cherimond to pose as the buyer for the purchase of three residential properties in Brockton, Mattapan and Halifax. Bonas was paid approximately $4,500 to use a stolen identification to execute mortgage loan closing papers for each of the properties. The fraudulent loans resulted in losses exceeding $1 million.
In July 2012, Cherimond pleaded guilty to nine counts of wire fraud and three counts of money laundering. In October 2012, he pleaded guilty to four additional counts of wire fraud, seven counts of identity fraud and two counts of aggravated identity theft. Sentencing is scheduled for April 11, 2013. In July 2012, co-defendant Allison Gates pleaded guilty to similar charges involving four additional properties. Gates is scheduled to be sentenced on March 14, 2013.
United States Attorney Carmen M. Ortiz, Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. The case was prosecuted by Assistant U.S. Attorneys Victor A. Wild of Ortiz’s Economic Crimes Unit and Brian Perez-Daple of Ortiz’s Civil Division.
Greenfield Attorney Sentenced to Prison for Four Years of Tax EvasionRead the Press Release
BOSTON - A Greenfield attorney was sentenced today in U.S. District Court in Springfield for tax evasion.
Gregory Olchowski, 57, was sentenced by U.S. District Judge Michael A. Ponsor to six months in prison, followed by one year of supervised release, six months of which will be served in home confinement, and an $8,000 fine. In September 2012, Olchowski pleaded guilty to four counts of tax evasion.Between Jan. 1, 2003 and Dec. 9, 2011, Olchowski evaded the proper assessment of his federal income taxes for four separate tax years. Olchowski did so by arranging to receive income in the form of cash and checks to third-parties for his own benefit, which he did not intend to report to the Internal Revenue Service; filing individual income tax returns that did not report this income; concealing documents concerning this unreported income that were responsive to a subpoena in a criminal investigation; and providing materially false information to IRS criminal agents. Prior to the sentencing, Olchowski closed his law practice and repaid the IRS $148,805 in taxes, interest and penalties based upon his tax evasion.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
Former Executive of Beverly Company Sentenced to Prison for Securities FraudRead the Press Release
BOSTON - The former CFO of Locateplus Holdings Corporation was sentenced yesterday for his role in a number of fraudulent schemes which artificially inflated his company’s assets and revenues.
James C. Fields, 45, of Brookline, was sentenced by U.S. District Judge Douglas P. Woodlock to five years in prison, followed by three years of supervised release and ordered to pay restitution to his victims. In November 2012, Fields was convicted by a jury, after a three-week trial, for conspiracy, securities fraud, false statements to company auditors, false statements in required SEC filings, wrongful certifications of SEC filings, aggravated identity theft, and money laundering.
Beginning in about 2002, Fields, the former Chief Financial Officer of Locateplus Holdings Corporation, and later acting Chief Executive Officer, pursued several fraudulent schemes intended to artificially inflate Locateplus’ assets and revenues. Locateplus was a publicly-traded company, based in Beverly, Mass., that sold access to personal data and other information. Working with Jon Latorella, the former CEO of the company, Fields engaged in a series of fraudulent activities, including:
- Creating a fake company called Andover Secure Resources, using the identity of a deceased man as the head of Andover, and then fabricating a loan transaction between Andover and Locateplus under which Andover supposedly borrowed over $1 million from Locateplus at a favorable interest rate;
- Creating another fake company called Omni Data Services and opening bank accounts and a post office box in its name and then falsifying revenue streams to make it look like Omni Data was paying Locateplus millions of dollars under the terms of a fake contract;
- Deceiving the SEC and other regulatory authorities to avoid registering securities being sold by a company called Paradigm Tactical Products, including fabricating Paradigm investors using the identities of Fields’ acquaintances, girlfriend, skydiving instructors, and two deceased men; and
- Routinely deceiving Locateplus’ independent accountants and the SEC about the nature of Locateplus’s revenues and assets in order to keep these fraudulent schemes going and to attract investment in Locateplus.
In March 2012, Latorella pleaded guilty and was sentenced in June 2012 to five years in prison, followed by three years of supervised release.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today. The U.S. Attorney’s Office also acknowledges the valuable assistance it received from the Boston Office of the U.S. Securities & Exchange Commission.
The case was prosecuted by Assistant U.S. Attorneys Andrew E. Lelling and Paul G. Levenson of Ortiz’s Economic Crimes Unit.
Easthampton Man Pleads Guilty to Cocaine ChargesRead the Press Release
BOSTON - An Easthampton man was convicted yesterday in U.S. District Court in Springfield of conspiring to distribute cocaine.
Joaquin Carrillo, a/k/a Chito, 31, pleaded guilty before U.S. District Judge Michael A. Ponsor to conspiracy to distribute cocaine. Sentencing is scheduled for June 5, 2013. The maximum sentence under the statute is 40 years in prison, followed by five years of supervised release and a $250,000 fine.
Between July 31, 2010 and May 2, 2011, Carrillo and others imported over five kilograms of cocaine into the United States and distributed it in Western Massachusetts over five kilograms of cocaine.
On Feb. 15, 2013, co-defendant Pablo Drullard pleaded guilty and is scheduled to be sentenced on May 13, 2013.
United States Attorney Carmen M. Ortiz, John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration Boston Field Division, and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kevin O’Regan of Ortiz’s Springfield Office.
Jury Convicts New Hampshire Woman for Obtaining U.S. Citizenship UnlawfullyVictims from Rwanda Testify Regarding Her Role in the 1994 GenocideRead the Press Release
CONCORD, N.H. - A Manchester, NH woman was convicted today by a federal jury of two counts of procuring citizenship unlawfully.
A federal jury in New Hampshire found that Beatrice Munyenyezi, 43, obtained her U.S. citizenship unlawfully after fleeing her home country of Rwanda by misrepresenting material facts to U.S. Immigration authorities both before and after she arrived here. The verdict was announced today by United States Attorney Carmen M. Ortiz, First Assistant United States Attorney for the U.S. District of New Hampshire Donald Feith and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston.
Munyenyezi, who was charged in June 2010, faces up to 10 years in prison to be followed by three years of supervised release and a $250,000 fine on each count. Munyenyezi’s U.S. citizenship was revoked immediately upon conviction. She also faces removal proceedings after serving the sentence imposed by the judge.
Sentencing has been scheduled for June 3, 2013, at 9:30 a.m. in Concord, NH, before Judge Steven J. McAuliffe, who presided over the trial.
Testimony during the 12-day trial revealed that Munyenyezi concealed her involvement in the MRND (National Republican Movement for Democracy and Development), the political party in power before and during the Rwandan genocide. Munyenyezi misrepresented this fact in order to obtain immigration and naturalization benefits.
U.S. Attorney Ortiz said, “United States citizenship is one of our Nation’s most valued privileges. Those involved in human rights violations should be aware that the United States will not idly tolerate the abuse of its accepting borders and will diligently investigate those who obtain citizenship fraudulently, even decades after the events.”
“The United States has always welcomed refugees and those fleeing oppression, but as today’s guilty verdict clearly demonstrates, this nation will never be a safe haven for human rights violators and war criminals,” said Bruce M. Foucart, special agent in charge of HSI Boston. “After much persistence and dedication by HSI special agents and our partners at the U.S. Attorney’s Office for the District of Massachusetts, Munyenyezi will be held accountable for disguising her role as a participant in the Rwandan genocide. I am hopeful that this case will send a message to others like Munyenyezi: HSI will never allow our country to be a place where individuals seeking to distance themselves from their pasts can hide or evade detection.”
Homeland Security Investigations investigated the case with the assistance of the Department of State Diplomatic Security Service. The case is being prosecuted by Special Assistant U.S. Attorneys Aloke Chakravarty and John Capin from Ortiz’s Anti-Terrorism Unit in the District of Massachusetts.
Former Executive Director of Chelsea Housing Authority Pleads Guilty to Falsely Reporting SalaryRead the Press Release
BOSTON - The former Executive Director of the Chelsea Housing Authority was convicted today of falsely reporting his salary in annual budgets required by the U.S. Department of Housing and Urban Development (HUD) and the Massachusetts Department of Housing and Community Development.
Michael E. McLaughlin, 67, of Dracut, pleaded guilty before U.S. District Judge Douglas P. Woodlock to four counts of falsifying a record in a federal agency matter with intent to impede and obstruct that matter. Sentencing is scheduled for May 14, 2013 at 2:00. The maximum sentence under the statute is 20 years in prison, followed by three years of supervised release and a fine of $250,000 on each count.
From 2008 through 2011, McLaughlin, who served since 2000 as the Executive Director of the Chelsea Housing Authority, falsified his salary figure in the annual fiscal year budgets of the Chelsea Housing Authority and submitted them electronically to the Massachusetts Department of Housing and Community Development.
In 2008, McLaughlin falsely stated that his budgeted annual salary was $151,945, when his actual salary was at least $242,908 under his existing contract. McLaughlin made the same kind of concealment of his increasing salary in the ensuing three years. Specifically, in FY 2009 McLaughlin falsely reported that his budgeted annual salary was $156,503, when his actual salary was at least $267,199 under his existing contract and his total compensation was at least $292,902, as reflected in his 2008 W-2. Then in FY 2010, McLaughlin falsely reported that his budgeted annual salary was $160,415, when his actual salary was at least $275,215 under his existing contract and his total compensation was at least $324,896. In FY 2011 McLaughlin falsely reported that his budgeted annual salary was $160,415, when his actual salary was at least $283,471 under his existing contract and his total compensation was at least $324,896.
United States Attorney Carmen M. Ortiz; Cary Rubenstein, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General; and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division, made the announcement today. The Massachusetts Inspector General’s Office and Massachusetts State Police also assisted in the investigation.
The case is being prosecuted by Assistant U.S. Attorney S. Theodore Merritt of Ortiz’s Public Corruption and Special Prosecutions Unit and Special Assistant U.S. Attorney Edward Beagan from the Massachusetts Attorney General’s Office.
Hadley Man Convicted of Drug ChargesRead the Press Release
BOSTON - A Hadley man was convicted yesterday in U.S. District Court in Springfield of distributing more than five kilograms of cocaine.
Pablo Drullard, 31, pleaded guilty before U.S. District Judge Michael A. Ponsor to conspiring to possess with intent to distribute and distribution of more than five kilograms of cocaine. Sentencing is scheduled for May 13, 2013. The maximum sentence under the statute is life in prison, followed by five years of supervised release and a $10 million fine.
Between July 31, 2010, and May 2, 2011, Drullard and others participated in a criminal conspiracy that transported kilograms of cocaine from Texas to western Massachusetts.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration Boston Field Division; and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kevin O’Regan of Ortiz’s Springfield Branch Office.
Andover Man Sentenced for Selling Counterfeit Goods on the InternetRead the Press Release
BOSTON - An Andover man was sentenced yesterday for selling thousands of counterfeit electronics out of his home using eBay and on his own website.
Ahmad Raad, 56, was sentenced by U.S. District Judge George A. O’Toole to four years of probation, the first six months of which must be served in home confinement with electronic monitoring, $100,000 in restitution to the corporate victims, and individual restitution to all identified individual victims. In November 2012, Raad pleaded guilty to selling counterfeit goods and mail fraud.
Between 2007 and 2011, Raad sold a variety of electronic merchandise, including batteries, chargers and memory sticks, under the name “eMartCentral” using eBay, or the website “www.emartcentral.com.” Raad purchased the merchandise that he sold directly from China. The merchandise bore a variety of brand names and trademarks, including those of Sony, SanDisk, Olympus, and Kingston. But much of this merchandise was not made by these companies or by companies authorized to use the companies’ names or marks. In some instances, Raad received merchandise from China that did not bear any product labels, and separately received sheets of Sony and SanDisk labels which he affixed to the merchandise and sold. During the four year period, Raad sold thousands of pieces of counterfeit merchandise in this manner.
United States Attorney Carmen M. Ortiz; Bruce M. Foucat, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; and Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit.
Winthrop Insurance Advisor Pleads Guilty to 10 Year Investment Fraud SchemeRead the Press Release
Boston - A Winthrop man was convicted today in federal court of mail and wire fraud in connection with a 10 year scheme that centered on investments in “life settlements,” by which he defrauded more than 20 victims of at least $4.5 million.
Joseph Gennaco, 68, of Winthrop, Mass. and Jupiter, Fla., pleaded guilty before U.S. District Judge Nathaniel M. Gorton to 11 counts of wire fraud and 16 counts of mail fraud.
Had the case proceeded to trial the Government’s evidence would have proven that from 2001 through 2011, Gennaco defrauded customers by falsely representing that their money would be invested in various insurance-based instruments, when instead he diverted the funds for his own personal and business purposes. Gennaco operated in the name of several entities, including Gennaco & Associates, Oceanview Financial Services, GCT Trust, and Crescent Management Group. Gennaco’s scheme centered on misrepresentations to investors that their funds would be invested in one or more life insurance policies - or “life settlements” - and that the investments would be repaid with a guaranteed profit from the sale of those policies. Instead, Gennaco diverted investors’ funds to his own uses, allowed insurance policies to lapse by failing to pay the premiums, and failed to repay investors when he sold the policies. By this scheme Gennaco obtained at least $4.5 million from more than 20 victims.
Judge Gorton scheduled sentencing for May 23, 2013. Gennaco pled guilty pursuant to a binding plea agreement that, if accepted by the Judge, would require a sentence between 92 and 100 months, to be followed by three years of supervised release, together with fines and restitution to victims.
United States Attorney Carmen M. Ortiz; Kevin Niland, Inspector in Carge of the U.S. Postal Inspection Service; and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division made the announcement today. The Suffolk County District Attorney’s Office, Massachusetts Securities Division, Massachusetts Division of Insurance, and the U.S. Trustee’s Office in Boston also provided assistance in the investigation. The case is being prosecuted by Assistant U.S. Attorneys Mark J. Balthazard and Jeremy M. Sternberg of Ortiz’s Economic Crimes Unit.
Easthampton Man Convicted of CounterfeitingRead the Press Release
BOSTON - An Easthampton man was convicted today in U.S. District Court in Springfield of counterfeiting.
Shayne Pancione, 36, pleaded guilty before U.S. District Judge Michael A. Ponsor to manufacturing and distributing counterfeit United States currency. Sentencing is scheduled for April 1, 2013. The maximum sentence under the statute is 20 years in prison, followed by five years of supervised release and a $250,000 fine.
Between August 28 and Sept. 6, 2011, Pancione manufactured and distributed counterfeit $20 bills in Easthampton and Southampton.
United States Attorney Carmen M. Ortiz; Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service; and Chief Bruce McMahon of the Easthampton Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kevin O’Regan of Ortiz’s Springfield Branch Office.
Cape Cod Man Pleads Guilty to Possessing Child PornographyRead the Press Release
BOSTON - A West Harwich man, formerly of Charlestown, was convicted yesterday for possessing child pornography.
Thomas J. Richardson, 67, pleaded guilty before U.S. District Judge Joseph L. Tauro to possession of child pornography. Sentencing is scheduled for April 17, 2013. Under the terms of the plea agreement, the Court must sentence Richardson to between 24 to 46 months in prison, followed by five years of supervised release, restitution and forfeiture.Between July 4 and 8, 2008, an FBI agent working undercover went online to a peer-to-peer file sharing software program. The FBI agent received a "friend" request and offline messages from Richardson using the screen name "Greatg." In the messages, Richardson asked when the agent would be online, stated that his name was "Gretchne," and falsely indicated that he was a mother of two.
On July 9, 2008, the agent logged into the file sharing program and found files containing child pornography images and videos belonging to Richardson. The agent attempted to download the files, however, Richardson terminated this transaction before it was completed because he was unable to download any content from the agent's online profile. Prior to the termination, the agent was able to download three files. A video named was corrupted and could not be viewed. Another video, depicted anal-genital sexual intercourse between an adult man and a toddler boy. And an image depicted a nude, adult man touching the clothed genitals of a minor boy on a bed. The agent determined, through IP address location information, that the user profile belonged to Thomas J. Richardson in Charlestown.
In August, 2008, the agent again logged into the file-sharing program and observed that Richardson's profile was also online. The agent browsed Richardson's shared file directories, and found files containing child pornography images and videos. The agent downloaded 11 files of child pornography, including a number of images depicting a prepubescent boy and prepubescent girl engaging in sexual acts with each other. The agent determined, through IP address location information, that the user profile belonged to Richardson's address in West Harwich.The West Midlands Police, in Birmingham, England, also had reported to the FBI in Boston that an individual using the screen name "GreatG" was communicating and trading pornography with a target in their jurisdiction through the Google Hello program. British law enforcement obtained IP login information for GreatG's account and determined that Richardson had accessed this account from his residences as well as from his then-employer.
On November 6, 2008, the FBI executed a search warrant at Richardson's homes in Charlestown and West Harwich and seized six laptop computers.
The FBI conducted a forensic examination of the computers and found evidence of significant child pornography activity. The Internet browsing history and recent link files showed that Richardson accessed a number of files with explicit names indicative of child pornography. Evidence of installation and use of the file-sharing program and Google Hello were also found on an HP laptop in Charlestown.
Forensic analysis revealed at least 10 images including the following:
- An image which depicts a nude girl lying on a bed with her legs spread - her wrists and one visible ankle are tied to the bed frame;
- An image which depicts a girl, who appears to be approximately 12 to 14 years-old, holding a penis near her mouth. There appears to be semen on her face and shirt; and
- An image which depicts a prepubescent, nude girl who is kneeling on the floor and engaging in oral-genital sexual intercourse with an adult male who is standing. The girl is wearing a mask (with an opening at the mouth) and her hands appear to be tied.
Forensics further revealed numerous deleted and temporary internet images of child pornography on the computers.
From Richardson's computer, forensic agents recovered 159 chats between Richardson and 81 other users on Google Hello trading numerous images of child pornography and child erotica, including images of children as young as six engaged in sexual acts and images depicting sadomasochistic sexual abuse of children. The chats indicate Richardson's substantial knowledge of child pornography series as well as his extensive collection of child pornography, which allowed him to provide child pornography tailored to the requester's preferences.United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement today.
The case is being prosecuted by Assistant U.S. Attorneys Michael Yoon and Stacy Dawson Belf of Ortiz's Major Crimes Unit and Trial Attorney Bonnie Kane of the Department of Justice's Child Exploitation & Obscenity Section.This case is being 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, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
- An image which depicts a nude girl lying on a bed with her legs spread - her wrists and one visible ankle are tied to the bed frame;
Brockton Man with Felony Record Sentenced for Possessing FirearmRead the Press Release
FEBRUARY, 14, 2013BOSTON – A Brockton man, who is a felon, was sentenced yesterday for possessing a firearm and ammunition.
Foster L. Starks, Jr., 51, was sentenced by U.S. District Judge Joseph L. Tauro to 210 months in prison, followed by two years of supervised release. In 2011, Starks was convicted after a jury trial for possessing a firearm and ammunition after having been convicted of a felony offense. Starks’ criminal record includes nine convictions for armed robbery, as well as convictions for armed robbery while masked, unarmed robbery and armed assault with intent to rob.On May 24, 2009, Starks was stopped by a Massachusetts State Police Officer while driving on Route 24 North in Taunton. The stop led to the discovery of a handgun and 14 rounds of ammunition in the automobile. It was a violation of federal law for Starks to possess a gun or bullets because he had previously been convicted of a felony.
United States Attorney Carmen M. Ortiz; Gene Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorney David G. Tobin of Ortiz’s Major Crimes Unit.
Worcester Man Sentenced to 87 Months for Stealing over 50 GunsRead the Press Release
BOSTON A Worcester man was sentenced today in U.S. District Court in Worcester for stealing over 50 firearms from a licensed gun dealer and reselling the weapons.
Kevin William Burke, 32, was sentenced by U.S. District Judge F. Dennis Saylor, IV to 87 months in prison, followed by three years of supervised release and ordered to pay $41,967 in restitution. In May 2012, Burke pleaded guilty to 16 counts of stealing firearms.K&R Target Sports (K&R) was a federally licensed gun dealer operating in Hudson, Mass. Burke worked at K&R beginning in July 2009, and managed the business from December 2009 through mid April 2010 while the owner was in Florida. During his employment, Burke stole 54 guns from the inventory and sold most of the guns to other gun dealers in the Worcester area.
In order to conceal the theft, Burke made numerous false entries in the book and records of K&R that tracked the acquisition and disposition of guns. In many instances Burke failed to record that K&R had received a gun from the manufacturer or dealer, even though an invoice showed that it had. In other instances, Burke falsely reported that the gun was sold to a party other than the individual or gun dealer to whom Burke actually sold the gun. Burke told gun dealers that he was liquidating his inventory of guns because he was returning to Afghanistan. Burke maintained a secret bank account through which over $65,000 in unexplained income passed. At the time of his arrest, numerous firearms were found in his home including a handgun with an obliterated serial number and a sawed-off shotgun.
In addition, Burke sold guns he stole to a private party, knowing that the private party was, in turn, delivering the guns to associates and members of the Hell's Angels outlaw motorcycle gang.
“The theft and sale of illegal weapons has vast and indefinite consequences that jeopardize the security of citizens across Massachusetts,” said United States Attorney Carmen M. Ortiz. “We will continue to work with our law enforcement partners to investigate and prosecute individuals who violate the gun laws, risking the safety of our communities.”
“ATF's top priority is to combat violent crime. The theft of firearms and their transfer from the legal market to the illegal market threatens the safety and security of our communities,” said Gene Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Boston. “Today's sentencing sends a strong message - when you victimize gun stores and steal firearms you will be prosecuted and you will be put behind bars.”
United States Attorney Carmen M. Ortiz and Acting SAC Marquez of the Bureau of Alcohol, Tobacco, Firearms and Explosives Boston Field Division, made the announcement today. Assistance was also provided by the Hudson Police Department, Marlborough Police Department and Worcester Police Department. The case was prosecuted by Assistant U.S. Attorney David Hennessy, Chief of Ortiz’s Worcester Office
Westfield Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOSTON - A Westfield man was convicted today in U.S. District Court in Springfield for possession of child pornography.
Richard Starr, 56, pleaded guilty before U.S. District Judge William G. Young to possession of material involving the sexual exploitation of minors. Sentencing is scheduled for May 9, 2013. The maximum sentence under the statute is 10 years in prison, followed by a lifetime of supervised release and a $250,000 fine.
While federal agents were conducting a consensual interview with Starr at his residence he admitted that he had requested files from a child pornography-related website. In response to agents’ request to search Starr’s computers for child pornography, he responded that “chances are you’ll find something.” Starr subsequently did not consent to the search so agents contacted the Westfield Police Department who obtained a state search warrant for the residence and proceeded to seize multiple computers and computer media. The FBI conducted a forensic examination of the computer media and discovered tens of thousands of digital images and video files depicting minors engaging in sexually explicit conduct. Many of these files were located in folders that contained suggestive or explicit titles, such as "Candydolls," and "eternal-nymphets."
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of Federal Bureau of Investigation Boston Field Division; and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Custom Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case was investigated with the assistance of the Westfield Police Department. It is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
CEO Pleads Guilty to Securities Kickback SchemeRead the Press Release
BOSTON - The CEO of a publicly-traded company was convicted today on charges that he paid kickbacks in return for purchases of his company’s stock.
Muhammad (M.J.) Shaheed, 45, pleaded guilty before U.S. District Judge Douglas P. Woodlock to three counts of wire fraud and three counts of mail fraud. Sentencing is scheduled for June 3, 2013.
Shaheed, who was the CEO of a publicly-traded company, Augrid Global Holdings Corporation, paid secret kickbacks to an investment fund representative. In exchange, the fund representative used fund monies to purchase stock in Shaheed’s company. The kickbacks were concealed through sham consulting agreements and other fraudulent documentation. In actuality, however, and unbeknownst to Shaheed, the purported investment fund representative was an undercover FBI agent.
The plea followed a year-long investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small, publicly-traded companies whose stock often trades at pennies a share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.
Shaheed is one of 15 defendants criminally charged for participating in this kickback scheme. Six of those charged have now pleaded guilty.
The statutory maximum sentence for each count is 20 years in prison, 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 the investigation.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, 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 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.
Cambridge Man Sentenced to Prison for Attempting to Steal 529 Plan College Savings FundsRead the Press Release
BOSTON - A Cambridge man was sentenced today for stealing the identification information of five parents in an attempt to raid the college savings accounts they had created for their children.
Mohammed Gisan, 26, was sentenced by U.S. District Judge George A. O’Toole to six months in prison, followed by two years of supervised release. In May 2012, Gisan pleaded guilty to five counts of identity theft.From October to May 2011, Gisan worked as a temporary employee at Upromise Investments, Inc., a division of Sallie Mae, in Newton. While at Upromise, Gisan had access to the company’s records, and he used that access to obtain and remove personal information about customers who had established college savings accounts, known as 529 plans, for their children. Immediately after Gisan’s assignment at Upromise was terminated, he used the personal information he had obtained to configure five of these accounts for internet access. Gisan intended to then transfer these funds to an online bank account that he would have controlled, but he was prevented from completing his plan due to security and loss prevention measures taken by Upromise and the actions of a vigilant customer.
United States Attorney Carmen M. Ortiz, Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service, and Commissioner Robert C. Hass of the Cambridge Police Department made the announcement today. The case was prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit.
Charlestown Resident Pleads Guilty to Tax Scheme at Suffolk DownsRead the Press Release
BOSTON - A Charlestown man who helped gamblers at Suffolk Downs in East Boston avoid paying taxes on winnings was convicted today.
Gary Boyar, 53, pleaded guilty before U.S. District Judge Richard G. Stearns to corruptly endeavoring to impede the Internal Revenue Service and tax evasion.
Boyar was a “ten-percenter,” a phrase referring to the ten-percent fee charged by those who cash winning tickets for gamblers so that the gamblers’ identities are not reported to the IRS. This scheme allowed gamblers to avoid paying taxes on their winnings, which were taxable income. Boyar cashed tickets and submitted forms to the IRS associated with those tickets using his deceased father’s social security number to obstruct the IRS. During the tax years 2004 through 2006, Boyar cashed more than $2 million worth of winning tickets at Suffolk Downs, and submitted more than 1,700 false IRS forms using his deceased father’s social security number. This conduct obstructed the IRS from determining the identities of the actual winners.In 2008, Boyar filed a false 2004 income tax return claiming a $591.74 refund from the IRS. The return omitted the income earned through his ten-percent fee scheme. Boyar did not file any income tax return for the years 2005 and 2006.
The maximum sentence under the statute is five years in prison for tax evasion and three years in prison for corruptly endeavoring to obstruct the IRS.United State Attorney Carmen M. Ortiz; Assistant Attorney General Kathryn Keneally of the Department of Justice Tax Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Trial Attorney Sean R. Delaney of the Tax Division.
Brimfield Man Pleads Guilty to Mortgage FraudRead the Press Release
BOSTON - A former Brimfield man was convicted today in U.S. District Court in Springfield of falsifying information on a loan application.
Jeffrey Dodge, 53, pleaded guilty before U.S. District Judge Michael A. Ponsor to bank fraud and false statement on a loan application.
Between June 2006 and November 2006, Dodge supplied false information and false documents to Bank of America while applying for a government-guaranteed mortgage loan. Dodge falsely stated that he had not been foreclosed upon when in fact he had, just months earlier, after defaulting on another government mortgage loan.
Sentencing is scheduled for May 14, 2013. The maximum sentence under the statutes is 30 years in prison, followed by five years of supervised release and a $1 million fine on each count.
The case was investigated by the U.S. Department of Housing and Urban Development, Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorneys Alex J. Grant and Michelle L. Dineen Jerrett of Ortiz's Springfield Branch Unit.
Registered Sex Offender Charged with Sexual ExploitationRead the Press Release
BOSTON – A Williamstown man who is a registered sex offender was charged today with sexually exploiting a 16-year-old boy.
Ronald Brown, 50, was charged in a complaint with sexual exploitation of children.
According to the complaint, Brown is a level 2 registered sex offender, based upon a 1995 Connecticut conviction for sexual assault of a 12-year-old boy. In December 2012, Brown met a 16-year-old male on a website, called silverdaddies.com. Brown engaged the boy in a long series of texts, chat sessions, and emails, many of which involved explicit sexual communications. On Jan. 8, 2013, Brown viewed the boy masturbating online via Skype and received a photograph of the boy displaying his penis.Brown also arranged for the boy to run away from home so that they could live together as romantic partners. Brown purchased a one-way airline ticket for the boy to fly from his home to Newark, NJ, sent $150 for traveling expenses, and instructed him to erase files on his computer. On Jan. 19, 2013, the boy ran away from his home and flew to Newark, where Brown met him. The two drove into New York where they engaged in sex, before continuing toward Massachusetts. Ultimately, Brown was stopped by the police, who had been alerted to the boy’s disappearance.
The maximum sentence under the statute is 50 years in prison, followed by a lifetime of supervised release and a fine of $250,000.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was investigated with the assistance of the Williamstown Police Department, the Massachusetts State Police and the New York State Police. It is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
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.
Superseding Indictment Returned Against Longtime Fugitive Enrico PonzoRead the Press Release
BOSTON - A Boston man was charged today in federal court with 18 counts of racketeering, drug trafficking, witness tampering and other charges.
Enrico Ponzo, a/k/a Jeffrey John Shaw, a/k/a Jay Shaw, 44, of Boston, Mass., and Marsing, Idaho, was charged in a superseding indictment with racketeering (RICO) conspiracy including conspiracy to commit murder in aid of racketeering; attempted murder and assault with a dangerous weapon; conspiracy to distribute and to possess with intent to distribute cocaine; possession of cocaine with the intent to distribute; multiple counts of using, possessing, or carrying a firearm during or in relation to a crime of violence or a drug trafficking crime; conspiracy to use extortionate means to collect or attempt to collect extensions of credit; use of extortionate means to collect or attempt to collect extensions of credit; conspiracy to commit extortion; extortion and attempted extortion; unlawful flight to avoid prosecution; conspiracy to distribute and to possess with intent to distribute marijuana; conspiracy to launder monetary instruments; laundering of monetary instruments; witness tampering; and forfeiture.
According to the superseding indictment, from June 1989 through December 1994, the Patriarca Family of La Cosa Nostra (“Family”) engaged in various criminal activities, including multiple acts involving murder, racketeering, extortionate credit transactions, extortion and conspiracy. In or about 1991, Francis P. Salemme, a/k/a Frank Salemme, became Boss of the Family. Ponzo and his co-conspirators are alleged to have acted to usurp control of the Family by plotting and attempting to murder Salemme and others who were loyal to Salemme, or who were viewed as rivals in their efforts to control the organized criminal activity in the greater Boston area. It is further alleged that Ponzo and his co-conspirators derived income from illegal activities including extortion, loan sharking, and narcotics distribution, and to have utilized violence and the threat of violence to further their aims.
It is alleged that Ponzo and his co-conspirators engaged in a pattern of racketeering activity that included murdering and conspiring to murder Richard Devlin and Joseph Souza, and conspiring and attempting to murder Salemme, Richard Gillis, Joseph Cirame, Michael Prochilo, Stephen Rossetti and Timothy Lawrence O’Toole, Jr. It is further alleged that Ponzo and his co-conspirators conspired to possess with intent to distribute and to distribute cocaine, and that they committed various other criminal acts including extortion, the use of extortionate means to collect extensions of credit, and using, possessing, or carrying a firearm during or in relation to a crime of violence and a drug trafficking offense.
According to the superseding indictment, from approximately October 1994 through February 7, 2011, Ponzo fled with the intent to avoid prosecution. Ponzo had been a fugitive for more than 16 years when he was apprehended in Idaho in February 2011.
It is further alleged that between approximately October 1994 and March 1999, Ponzo conspired with others to distribute and to possess with intent to distribute more than a ton of marijuana, and at other times to have engaged in acts of money laundering and conspiracy to launder monetary instruments, and witness tampering.
The maximum sentence under the statute is up to life in prison, up to three years of supervised release and a $250,000 fine on each of the racketeering charges. The maximum penalty on the drug trafficking offenses is up to life in prison and a mandatory minimum of 10 years in prison, no less than five years of supervised release and a $10 million fine on each count.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Michael Tabak and Karen Beausey of Ortiz’s Organized Crime Strike Force and Drug Task Force Units.
The details contained in the superseding indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Springfield Man Sentenced for Possessing Firearms and Ammunition After Felony ConvictionRead the Press Release
BOSTON - A Springfield man was sentenced today for possessing firearms and ammunition while under felony indictment.
Manuel Lora, 23, was sentenced by U.S. District Chief Judge Patty B. Saris to 40 months in prison, followed by three years of supervised release with the special conditions that he avoid the members the Almighty Latin Kings and Eastern Avenue Posse street gangs. In September 2012, Lora pleaded guilty to possession of firearms and ammunition while under felony indictment.On May 28, 2011, at a shooting range in Springfield, Lora fired a variety of pistols and ammunition, all of which had traveled in interstate commerce. Lora, who had been previously convicted of distributing narcotics, gained access to the shooting range by falsely certifying that he had not been convicted of a crime punishable by more than one year in jail. In addition, Lora was facing pending felony charges for possession with intent to distribute a class B controlled substance near a school zone or park
United States Attorney Carmen M. Ortiz; Guy Thomas, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Boston Field Division; Mark Mastroianni, Hampden County District Attorney; and Commissioner William Fitchett of the Springfield Police Department, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz=s Springfield Branch Office.Springfield Man Sentenced for Bank Fraud and Passing Counterfeit SecuritiesRead the Press Release
BOSTON - A Springfield man was sentenced today for committing bank fraud and passing counterfeit securities.
John Jordan, 52, was sentenced by U.S. District Judge Patti B. Saris to 17 months in prison, followed by one year of supervised release and $1,435 in restitution. In September 2012, Jordan pleaded guilty to four counts of bank fraud and four counts of counterfeit security fraud.Jordan created high quality counterfeit checks on his computer and then sold these checks at a discounted price to co-conspirators who would attempt to cash them at local businesses and financial institutions. Jordan surreptitiously acquired legitimate customer and corporate account information that he used on the counterfeit checks making it more likely they would be transacted.
United States Attorney Carmen M. Ortiz; Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Paul Hart Smyth of Ortiz’s Springfield Branch Office.
Sex Offender Sentenced to 25 Years on Child Pornography ChargesRead the Press Release
BOSTON - An Ayer man who fled to Belize was sentenced today for producing, distributing and possessing child pornography.
Thomas A. Donahue, 45, was sentenced by U.S. District Judge F. Dennis Saylor, IV to 25 years in prison, followed by 10 years of supervised release. In October 2012, Donahue pleaded guilty to producing, distributing, and possessing child pornography.
Between March 2010 and February 2011, Donahue produced, distributed, and possessed child pornography, and in February 2011, a search warrant was executed at Donahue’s apartment where a laptop computer, external hard drive and other computer related media were seized. A preliminary search of the devices revealed a large quantity of images and videos depicting child pornography, including pornographic videos that depicted Donahue and a minor male. An extensive investigation led to the identification of the minor male. Sometime between the execution of the search warrant and March 7, 2011, when Donahue was charged via federal complaint, Donahue fled the country. After an extensive manhunt, Donahue was tracked to Belize and was arrested in April 2011 before he was returned to the United States to face charges.
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division; and Bruce Foucart, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. This case was investigated with the assistance of the Bureau of Diplomatic Security Regional Security Office in Belize, and the Special Branch of the Belize Police Department. The case was prosecuted by Assistant U.S. Attorney Cory S. Flashner of Ortiz’s Worcester Branch Office.
Holden Man Convicted for Tax EvasionRead the Press Release
BOSTON - A Holden man was convicted today of tax evasion.
David L. Toppin, 47, was convicted by a jury sitting in Worcester before U.S. District Judge Timothy Hillman on a charge of tax evasion.
Toppin, the sole owner and operator of Pelletizer Group, Inc., did not file federal income tax returns for 1997-1999 until 2006. In the returns, Toppin reported earning a total adjusted gross income of $727,701 and owing $227,199 in federal income taxes for 1997-1999. The evidence at trial showed that Toppin evaded payment of his taxes and tried to impede the IRS’s collection of his income tax by, among other things, placing real estate and checking accounts in his wife’s name and by misleading the IRS about the extent of his assets and income.
Sentencing is scheduled for May 2, 2013.
The maximum sentence under the statute is five years in prison, followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Christine J. Wichers and Sandra Bower of Ortiz’s Economic Crimes Unit.Former Orthofix Regional Director Sentenced for PerjuryRead the Press Release
BOSTON – A former Orthofix regional sales director was sentenced today for making a false declaration to a grand jury.
Mitchell Salzman, 47, was sentenced by U.S. District Court Judge Rya W. Zobel to one year of probation including three months of home detention and a $2,000 fine. In December 2011, Salzman pleaded guilty to making a false declaration to a grand jury.Salzman admitted that he had lied to a grand jury about his role in doing business with a former Orthofix representative who had been terminated for falsifying medical records. Salzman was a regional sales director in the spine division at Orthofix, Inc. Orthofix manufactures bone growth stimulators that are used to help regenerate bone cells in connection with spinal fusions. In the summer of 2009, Orthofix fired a territory manager in Salzman’s region after discovering that the territory manager was falsifying medical records to induce Medicare to pay for stimulators that were outside of Medicare’s guidelines. Salzman and others were concerned that this termination would result in lost business. Therefore, Salzman and others executed a scheme whereby the territory manager continued to obtain stimulator orders in the territory, and Orthofix continued to pay commissions to the territory manager, through a front company established by the territory manager. Salzman was involved with these negotiations, including facilitating the agreement between Orthofix and the front company.
In 2011, Salzman testified before the grand jury related to Orthofix business practices pursuant to a grant of judicial immunity. Salzman was asked a number of questions about the arrangement between Orthofix and the territory manager and Salzman repeatedly lied to the grand jury concerning this arrangement. Salzman denied knowing that the territory manager had any role with the front company, stating that he only learned of the connection within a month before his grand jury appearance. Salzman also testified that he had recently contacted an employee of the front company and asked if the territory manager was involved with the company, and only then did he realize that the territory manager was still involved. None of this was true because Salzman knew from the beginning that the territory manager had established the front company. Indeed, the only reason that Salzman and others hired the front company was to continue to pay the territory manager.
In addition to the Salzman sentence, the Orthofix investigation has to date resulted in a number of felony charges against employees and contractors of Orthofix, including the following:
- In December 2012, Orthofix was convicted of obstruction of a federal audit, and ordered to pay $42 million in criminal fines and civil payments, and was sentenced to probation for five years;
- On January 22, 2013, Tom Guerrieri, the former vice president of sales for Orthofix, was sentenced to eight months in prison and ordered to pay $50,000 in fines and forfeiture for paying kickbacks;
- In July 2012, Michael Cobb, a physician’s assistant, was sentenced to six months in prison and six months home detention, and ordered to forfeit $10,000 and pay a $3,000 fine for accepting kickbacks from Orthofix;
- On January 9, 2013, Derrick Field, a former Orthofix territory manager, was sentenced to five months of home detention as part of a two year probation sentence, forfeiture of $40,000 and a $4,000 fine;
- On January 23, 2013, Michael McKay, a former Orthofix territory manager, was sentenced to three months of home detention as part of a one year probation sentence, forfeiture of $10,000 and a $3,000 fine;
- In September 2012, Brian Racey pleaded guilty to health care while he was a territory manager for Orthofix and is scheduled to be sentenced on Feb. 20, 2013 in the U.S. District Court for the Eastern District of Pennsylvania.
- On January 24, 2013, the United States filed a plea agreement and criminal Information related to Ilene Terrell, MD, charging her with making a false declaration to a grand jury. A plea hearing is scheduled for Feb. 21, 2013.
The case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations and the Department of Defense, Defense Criminal Investigative Service Boston Field Division. It was prosecuted by Assistant U.S. Attorneys David Schumacher and Jeremy Sternberg of Ortiz's Health Care Fraud Unit.
Former Massachusetts RMV Employee Charged with Conspiracy to Produce False Information DocumentsRead the Press Release
BOSTON - An former employee of the Massachusetts Registry of Motor Vehicles, located in Revere, was charged today in U.S. District Court on charges related to producing a false identification document.
Alexander Brewer, 24, of Boston, was charged in a criminal complaint with conspiracy to defraud the United States in connection with producing false identification documents.
It is alleged that from December 2011 through December 2012, Brewer knowingly and willfully issued Massachusetts driver’s licenses to individuals who presented legitimate Puerto Rican identity documents, in an identity other than their own, to obtain Massachusetts driver’s licenses for the purposes of concealing their true identities.
The punishment under the statute is up to five years in prison to be followed by up to three years of supervised release and up to a $250,000 fine.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of the Homeland Security Investigations in Boston; and Colonel Timothy Alben, Superintendent of the Massachusetts State Police made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption & Special Prosecutions Unit.
The Complaint affidavit sets forth allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tax Preparer Sentenced to More Than Five Years for Identity Theft and Tax FraudRead the Press Release
BOSTON - A Milford woman, and former tax preparer, was sentenced today to 61 months in prison for filing hundreds of false income tax returns for her clients and identity theft.
Rosa Ivette Colon, 44, was sentenced by District Judge Nathaniel M. Gorton to 61 months in prison, to be followed by three years of supervised release, and ordered to pay $400,000 in restitution to the Internal Revenue Service. In August 2012, Colon pleaded guilty to a 32-count indictment charging her with aggravated identity theft, filing false claims with the Internal Revenue Service, and forging endorsements on United States Treasury checks.
Colon operated a business called X-Press Taxes in Somerville, Mass. During the tax years 2004 through 2010, Colon prepared hundreds of false income tax returns for her clients. On numerous occasions, when preparing income tax returns for clients, Colon prepared two different versions of the return. Colon gave one version of the return to the client, but filed another version seeking a larger refund with the IRS, and kept the additional fraudulent amount for herself. In addition, Colon submitted false personal income tax returns to the IRS on her own behalf. Colon claimed fraudulent refunds by attaching bogus W-2 forms claiming nonexistent wages and withholdings.
Additionally, Colon unlawfully used the identities of three individuals in connection with her fraudulent tax refund scheme. In two instances, she filed tax returns in individuals’ names without their knowledge, and in one instance, she claimed a client’s two-year old child as a dependent on another client’s tax return, charging $1,000 for this service.
“Filing false tax returns and taking advantage of innocent taxpayers is a serious crime,” said United States Attorney Carmen M. Ortiz. “It is especially troubling when such fraud is committed by professionals who were trusted by their clients to submit accurate returns to the IRS. The U.S. Attorney’s Office will continue to investigate tax fraud and hold perpetrators accountable.”
“The Justice Department is committed to stopping return preparers who violate the trust of ordinary taxpayers, and to prosecute them for their tax crimes,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division.
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority," stated William P. Offord, Special Agent in Charge of the Boston Field Office. “Stealing identities and filing fraudulent tax returns is a serious crime that hurts innocent taxpayers. This sentencing should serve as a strong warning to those considering similar conduct.”
“Cooperation between law enforcement has allowed us to focus our resources and respond quickly to uncover criminal activity such as this type of financial fraud,” said Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service Boston Field Office.
U.S. Attorney Ortiz, Assistant Attorney General Keneally, SAC Offord, and SAC Ricciardi, made the announcement today. The case was prosecuted by Trial Attorney Sean R. Delaney of the Tax Division, who is on detail to the U.S. Attorney’s Office.
New York Man Sentenced for Cape Cod Property Fraud SchemeRead the Press Release
BOSTON - A New York man was sentenced today in connection with a scheme to defraud a Massachusetts man of his Hyannis waterfront property.
Michael Howard Clott, aka Michael Howard, 60, was sentenced by U.S. District Judge Rya W. Zobel to 152 months, followed by 36 months of supervised release, forfeiture of $1,269,168 and ordered to pay $1,425 in restitution. In November 2012, Clott pleaded guilty to three counts of mail fraud and three counts of wire fraud.
From December 2009 through April 2010, Clott spent several months on Cape Cod engaged in a scheme to defraud a Massachusetts man of a property he valued at more than $2.8 million. During this period Clott was a fugitive from a federal criminal case against him in New York. Clott used the alias “Michael Howard,” and represented to others that he was an attorney and financial executive who specialized in purchasing, repairing and marketing bank-owned real estate when, in fact, Clott was none of those things. Clott, however, persuaded a local real estate broker to sell a client’s property for half the asking price, then give the sale proceeds to Clott who would use his purported financial expertise to generate an after-tax benefit for the client equivalent to the client’s asking price. Instead of using the proceeds for the client’s benefit, Clott manipulated others to unwittingly assist in negotiating the proceeds check to enable him to deposit the funds in an account for Clott’s personal benefit. However, Clott’s scheme was discovered and the funds were secured before Clott could further disburse or conceal them.During the past 30 years, Clott has either been engaged in significant fraud schemes, or been serving time in prison for those schemes. Most recently, Clott was sentenced by the Southern District of New York to 259 months in prison which he will serve concurrent to his sentence in the District of Massachusetts.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division, made the announcement today.
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorneys Mark J. Balthazard and Veronica Lei of Ortiz's Economic Crimes Unit and Asset Forfeiture Unit, respectively.
Man Pleads Guilty to Firearm ChargesRead the Press Release
BOSTON - A former Mattapan man pleaded guilty yesterday to possessing a firearm and ammunition.
Aylis Dryden, 27, pleaded guilty before U.S. District Judge Richard G. Stearns to being a felon in possession of a firearm and ammunition.
On April 7, 2010, four Boston Police officers were on routine patrol in an unmarked cruiser in the vicinity of the Heath Street Housing Development in Jamaica Plain when they observed a large group of people gathered, some drinking from open containers of alcohol. The officers observed Dryden act suspiciously and make adjustments to his center front waistband, prompting one of the officers to ask Dryden if he was carrying a gun. Although Dryden initially denied having a gun, he inadvertently revealed it when he lifted his shirt at the officers’ request. Ultimately, officers seized the gun as he attempted to flee. Dryden, a previously convicted felon, was arrested and transported in a cruiser, where the officers found additional ammunition.
Sentencing is scheduled for May 1, 2013. The sentence under the statute is a minimum of 15 years and up to life in prison, followed by up to five years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Guy Thomas, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives Boston Field Office; and Boston Police Commissioner Edward Davis, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Michelle L. Dineen Jerrett and Lisa Asiaf Schlatz.
Watertown Man Sentenced for Stealing from Iron MountainRead the Press Release
BOSTON - A Watertown man was sentenced today for stealing over $1 million from his former employer.
John J. Palandjian, 35, was sentenced by U.S. District Judge Mark L. Wolf to 41 months in prison, to be followed by three years of supervised release and a $7,500 fine and ordered to pay $1,148,063 in restitution. In October 2012, Palandjian pleaded guilty to 10 counts of wire fraud.Palandjian, a sourcing manager for Iron Mountain, a public company headquartered in Massachusetts, was responsible for purchasing supplies, reviewing credit card statements and requesting wire transfers for payment of credit card bills. From August 2010 to June 2011, Palandjian used Iron Mountain’s credit card to make unauthorized purchases and cash advances in excess of $1,148,000. Palandjian then altered the monthly credit card statements to hide his unauthorized charges and ensured that the bills were paid.
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner Edward Davis, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption and Special Prosecutions Unit.
South Shore Drug Traffickers Charged in Oxycodone Distribution RingRead the Press Release
BOSTON - Seven individuals were charged today in federal court with conspiracy to distribute Oxycodone.
Charged in a criminal complaint with the drug conspiracy, Steven Dunn, 47, of Brockton; Robert Henriques, 55, of Brockton; Jodi Kilday, 46, of Brockton; Jose Silva, 34, of Whitman; Gail Fitzgibbons, 30, of Abington; Gennaro “Jerry” Dellatorre, 35, of Abington; and Adam Roberts, 29, of Brockton. Dunn, Henriques, Kilday, Fitzgibbons, Dellatorre were all arrested this morning. Silva was previously in state custody.
According to the criminal complaint affidavit, a Court-authorized wiretap was utilized to intercept communication between the defendants over the course of approximately eight months. It is alleged that Roberts sold and distributed wholesale quantities of Oxycodone to Dunn and others throughout the South Shore. On Aug. 21, 2012, shortly after purchasing a quantity of Oxycodone from Fitzgibbons, Roberts was arrested and 274 Oxycodone pills were seized. Dunn purchased wholesale quantities of Oxycodone from Roberts, Kilday and others, and then distributed the pills to “street level” customers through Henriques. Silva sold wholesale quantitites of Oxycodone to Fitgibbons and Dellatorre. On Dec. 8, 2012 Silva was arrested while returning from New York and 1,744 Oxycodone pills were seized.
U.S. Attorney Carmen M. Ortiz said, “I want to acknowledge the unprecedented cooperation in this investigation between federal, state and local authorities, which reached from Southeastern Massachusetts to New York to Florida.”
“These arrests demonstrate the commitment of DEA and our law enforcement partners in targeting and bringing to justice those responsible for illegally supplying and distributing Oxycodone in our neighborhoods,” said Special Agent in Charge John Arvanitis. “We are steadfast in our commitment to assisting communities who suffer through the abuse of diverted prescription medicines.”
According to court documents, from June 2012 through December 2012, Dunn, Henriques, Kilday, Silva, Fitzgibbons, Dellatorre and Roberts purchased, sold, and distributed wholesale quantities of Oxycodone.
If convicted, the maximum penalties for each defendant is up to 20 years in prison, to be followed by up to lifetime supervised release and a $1 million fine.United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent-in-Charge of the Drug Enforcement Administration - Boston Field Division; Plymouth County District Attorney Timothy Cruz; and Colonel Timothy Alben, Superintendent of the Massachusetts State Police made the announcement today.
The case was investigated by the DEA Cape Cod Task Force and the Massachusetts State Police Detective Unit assigned to the Plymouth County District Attorney’s Office. Substantial assistance was provided by the Police Departments of Brockton, Marshfield, Wareham, Plymouth, and Barnstable; MSP Cape and Islands Detective Unit; DEA New York Field Division Strike Force Group 23 and West Palm Beach, Fla. Resident Office; Del Ray Beach, Fla. Police Department; and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorneys James E. Arnold and Michael I. Yoon of Ortiz's Organized Crime Drug Enforcement Task Force.
The details contained in complaint affidavit the are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Needham Attorney Sentenced in Connection with Mortgage FraudRead the Press Release
BOSTON - An attorney formerly practicing in Massachusetts and now living in New York was sentenced today for his participation in a mortgage fraud scheme involving a 24-unit building in Dorchester.
Sean Robbins, 39, was sentenced by Chief District Judge Patti B. Saris to eight months in home confinement as a condition of three years of probation and ordered to pay $300,000 in restitution. In September 2012, Robbins pleaded guilty to 24 counts of misprision of felony.In December 2006 and January 2007, Robbins was an associate attorney employed by, Marc Foley, a lawyer operating a law firm in Needham. At Foley’s direction, Robbins participated in a scheme to defraud lenders who funded mortgages for individuals to purchase condominium units in a building in Dorchester. HUD-1 Settlement Statements fraudulently represented to lenders that down payments and other expenses were collected from buyers at the closings, when in fact, none of the funds aggregating $449,000 were collected from buyers. Robbins, knowing that his employer was engaged in the mortgage fraud, conducted a number of the closings, concealed the crimes and failed to report them to authorities.
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Victor A. Wild of Ortiz’s Economic Crimes Unit and Veronica M. Lei of Ortiz’s Asset Forfeiture Unit.
Paralegal Sentenced to 30 Months for Role in Property Mortgage ScamRead the Press Release
BOSTON - A Roslindale woman was sentenced yesterday for her role in a multi-year, multi-property mortgage fraud scheme.
Rebecca L. Konsevick, 40, was sentenced by U.S. District Judge Denise J. Casper to 30 months in prison, to be followed by two years of supervised release. In May 2012, Konsevick pleaded guilty to bank fraud and money laundering.From 2006 through 2008, Konsevick committed fraud in connection with condominium sales. Sirewl Cox, a developer, 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. The straw buyers’ financing for the purchases was obtained by falsely representing key information to mortgage lenders such as the buyers’ income, employment, assets, and/or intention to reside in the condominiums. In addition, Konsevick and Cox caused HUD-1 settlement statements to be submitted to the same lenders which falsely represented that straw buyers had paid funds in connection with the property transactions and falsely represented how the proceeds of the mortgage loans were disbursed. In Massachusetts, property transactions must be closed by attorneys so Konsevick, who was a paralegal, falsely signed certifications on these HUD-1 settlement statements and closed the relevant property deals.
Sirewl Cox was convicted by a jury of wire fraud, bank fraud, and conducting an unlawful monetary transaction. Sentencing is scheduled for Feb. 6, 2013.
United States Attorney Carmen M. Ortiz; Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service; William P. Offord, Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and Cary Rubenstein, Special Agent In Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, New York Regional Office; made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Ryan M. DiSantis and Jeremy M. Sternberg of Ortiz’s Economic Crimes Unit.Former Education Consultant Charged with FraudRead the Press Release
BOSTON - A Los Angeles man was charged today in federal court with defrauding clients of his educational consulting firm.
Mark J. Zimny, formerly of Cambridge, was indicted on multiple counts of wire fraud and money laundering.
The Indictment alleges that Zimny operated IvyAdmit Consulting Associates, an educational consulting firm in the business of helping international applicants apply to “top” American universities and boarding schools. Zimny, who falsely claimed to be an Assistant Professor at Harvard University, told his clients that their children would improve their prospect of admission to certain schools if the clients made sizeable gifts of development contributions to the schools, through Zimny, during the application process. Zimny did not forward any of the funds collected to the schools and instead converted the funds, totaling over $600,000, for his own purposes.
The maximum penalty under the statute is up to 20 years in prison, followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Kevin Niland, Inspector in Charge of the United States Postal Inspection Service, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Lori Holik of Ortiz’s Economic Crimes Unit.
The details contained in the Indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Car Dealership Employee Sentenced for EmbezzlementRead the Press Release
BOSTON – A former employee of a car dealership in Hanover was sentenced today for embezzling $96,920 from her employer.
Susan Morris, 44, was sentenced by U.S. District Judge Zobel to four months in prison, to be followed by two years of supervised release and restitution of $96,920. In October 2012, Morris pleaded guilty to wire fraud.
From April 2010 through March 2012, while Morris was working in the accounting department of Dave Delaney’s Buick GMC car dealership, she embezzled $96,920 from the company’s bank account. Morris processed dozens of bogus return transactions, each time fraudulently “returning” the funds to her own debit card.United States Attorney Carmen M. Ortiz and Steven D. Riccardi, Special Agent in Charge of the Boston office of the U.S. Secret Service, made the announcement today. The case was investigated by the Boston office of the U.S. Secret Service. The case was prosecuted by Assistant U.S. Attorney Jeremy Sternberg of Ortiz’s Economic Crimes Unit.
Another Orthofix Defendant Sentenced for Committing Medicare FraudRead the Press Release
BOSTON – A former Orthofix territory manager was sentenced yesterday for defrauding Medicare by forging patient medical records.
Michael J. McKay, 32, was sentenced by U.S. District Court Judge Denise J. Casper to one year of probation, with the first three months to be served in home confinement, and ordered to forfeit $10,000 and pay a fine of $3,000. In May 2012, McKay pleaded guilty to healthcare fraud.
Between 2008 and 2009 McKay was a territory manager for Orthofix, a company that manufactured and distributed bone growth stimulator medical devices that were intended to assist patients with bone fractures that did not heal properly. Medicare and many private insurance carriers have specific guidelines describing when it will pay for bone growth stimulators. When McKay received orders for patients that did not satisfy these guidelines, McKay frequently falsified the patients’ medical records to make it appear as though the order met Medicare’s rules so that Medicare would pay for a claim that otherwise would not be covered. Between 2008 and 2010, federal insurance carriers paid more than $70,000 for bone growth stimulators for claims where McKay falsified medical records. McKay altered physician’s chart notes, changing the dates of patient visits, describing patient visits that did not occur, and inserting false diagnoses. McKay also forged prescriptions and Medicare Certificates of Medical Necessity within the orders. Orthofix fired McKay after it discovered his fraud. Even after he was fired, however, McKay continued to submit orders for stimulators by submitting them to a colleague, Derrick Field, who split the commissions with Field. Even after he was fired, McKay continued to forge chart notes, prescriptions and CMNs in the orders he submitted to Field. On January 9, 2013, Field was sentenced to five months home confinement, two years of probation, and $44,000 in fines and forfeiture.
In addition to the McKay sentence, the Orthofix investigation has to date resulted in a number of felony charges against employees and contractors of Orthofix, including the following:
- In December 2012, Orthofix was convicted of obstruction of a federal audit, and ordered to pay $42 million in criminal fines and civil payments, and was sentenced to probation for five years;
- On January 22, 2013, Tom Guerrieri, the former vice president of sales for Orthofix, was sentenced to eight months in prison and ordered to pay $50,000 in fines and forfeiture for paying kickbacks;
- In July 2012, Michael Cobb, a physician’s assistant, was sentenced to six months in prison, six months home confinement, and ordered to forfeit $10,000 and pay a $3,000 fine for accepting kickbacks from Orthofix;
- In December 2011, Mitchell Salzman pleaded guilty while he was a regional manager for Orthofix and is scheduled to be sentenced on Jan. 31, 2013; and
- In September 2012, Brian Racey pleaded guilty to health care while he was a territory manager for Orthofix and is scheduled to be sentenced on Feb. 20, 2013 in the U.S. District Court for the Eastern District of Pennsylvania.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations; the Federal Bureau of Investigation Boston Field Division; and the Department of Defense, Defense Criminal Investigative Service – Boston Resident Agency. It was being prosecuted by Assistant U.S. Attorneys David Schumacher and Jeremy Sternberg of Ortiz's Health Care Fraud Unit.
Orthofix Vice President Sentenced for Paying Medicare KickbacksRead the Press Release
BOSTON – The former vice president of sales of Orthofix, Inc. was sentenced yesterday for paying kickbacks to health care professionals.
Thomas P. Guerrieri, 52, was sentenced by U.S. District Judge Rya W. Zobel to eight months in prison and ordered to pay a fine of $20,000 and to forfeit $30,000. In April 2012, Guerrieri pleaded guilty to paying kickbacks.
Guerrieri, the former Vice President of Sales of Orthofix, Inc., admitted that he paid kickbacks to two separate health care professionals, in violation of the Medicare AntiKickback Law. Between 2001 and 2010, Guerrieri worked at Orthofix, first as a regional sales director, then area vice president, and, ultimately, the vice president of sales. Orthofix manufactured and distributed bone growth stimulator medical devices. Bone growth stimulators are used to assist spinal fusions and to help heal bone fractures that did not heal properly.
Guerrieri authorized kickbacks in two separate transactions in order to induce bone growth stimulator orders from two of Orthofix’s highest-prescribing physicians. First, Guerrieri facilitated a bogus “consulting” agreement with a surgeon in New York. The surgeon was paid tens of thousands of dollars but provided little or no consulting services in return. This surgeon failed to document his services in time sheets provided to the company, even though he was paid every month. During a meeting in August 2007, the surgeon, Guerrieri, and another Orthofix employee hatched a scheme to create and backdate time sheets going back to 2006, making it appear as though the surgeon filled out these forms contemporaneously and performed legitimate consulting services. In addition, Guerrieri obtained a letter from the company’s general counsel indicating that the surgeon was compliant under his consulting agreement, which was not true.
Second, Guerrieri authorized kickbacks to pay a physician’s assistant in Rhode Island, Michael Cobb, for each bone growth stimulator he ordered. Cobb was responsible for ordering bone growth stimulators for the surgeon who employed him. For years, Orthofix paid Cobb $50-$100 for each stimulator that he ordered. In September 2008, Orthofix issued a policy expressly prohibiting any payments to anyone who works for a surgeon that prescribes Orthofix products. Guerrieri was concerned that Orthofix would lose business if it could no longer pay Cobb. Thus, Guerrieri executed a scheme where Cobb continued to be paid for each order, but the payments were made by an Orthofix vendor, making it more difficult to trace the paper trail back to Orthofix. In July 2012, Cobb was sentenced to six months in prison and six months home confinement for accepting these kickbacks in addition to forfeiture of $40,000 and a $4,000 fine.
Guerrieri also obstructed justice in connection with the government’s investigation. In the midst of the investigation, Guerrieri instructed the sales force that, if they were asked by government investigators if they manipulated Medicare Certificates of Medical Necessity (CMNs), they should lie and state that they had not done so. Manipulation of CMNs was the conduct at issue in the recent Orthofix conviction, as described below.In addition to the Guerrieri sentence, the Orthofix investigation has, to date, resulted in a number of felony charges against employees and contractors of Orthofix, including the following:
- In December 2012, Orthofix was convicted of obstruction of a federal audit, and ordered to pay $42 million in criminal fines and civil payments, and was sentenced to probation for five years;
- In January 2013, Derrick Field, a former Orthofix territory manager, was sentenced to five months of home confinement as part of a two-year probation sentence,
- In December 2011, Mitchell Salzman pleaded guilty while he was a regional manager for Orthofix;
- In May 2012, Michael McKay pleaded guilty to health care fraud while he was a territory manager for Orthofix; and
- In September 2012, Brian Racey pleaded guilty to health care fraud while he was a territory manager for Orthofix.
“Kickbacks corrupt medical decision-making and drive up health care costs for everyone,” said U.S. Attorney Carmen M. Ortiz. “Corporate executives have a responsibility to ensure that profits are not prioritized over patients’ health. This prosecution sends a message that, in the District of Massachusetts, we will investigate and prosecute those who commit health care fraud.”
“Company executives know that kickback payoffs have no place in healthcare,” said Susan J. Waddell, Special Agent in Charge, U.S. Department of Health and Human Services, Office of the Inspector General, New England Region. “So while Orthofix has already settled with taxpayers for more than $34 million, law enforcement will also pursue the corporate officials behind these schemes and make them pay a heavy price.”
“Orthofix corporation and its employees have recently pled guilty to a litany of felony criminal and civil charges related to illegal schemes that were purposefully designed to increase their profit,” said Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division. “Like Orthofix, other health care corporations and their employees should know now that no one is immune from being held accountable for criminal and civil misconduct.”
“It is priority for DCIS to ensure the integrity of TRICARE, the Defense Department’s health care system for military members and their dependents,” said Leigh-Alistair Barzey, Resident Agent in Chage of the U.S. Department of Defense, Defense Criminal Investigative Service. “DCIS is committed to working with the U.S. Attorney’s Office, the FBI, HHS-OIG and our other partner agencies, to combat health care fraud, and this successful joint investigation is a result of that collaborative effort.”
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations; the Federal Bureau of Investigation Boston Field Division; and the Department of Defense, Defense Criminal Investigative Service – Boston Resident Agency. It was being prosecuted by Assistant U.S. Attorneys David Schumacher and Jeremy Sternberg of Ortiz's Health Care Fraud Unit.
Mendon Resident Sentenced for Filing False Tax ReturnsRead the Press Release
Boston – A Mendon man received a six month sentence of community confinement for filing a false income tax return.
David Altavilla, 45, was sentenced by U.S. District Judge Timothy S. Hillman to six months of community confinement to be followed by six months of home confinement, a $10,000 fine, and $141,710 in restitution to the IRS. In October 2012, Altavilla pleaded guilty to filing a false income tax return. He has already paid the restitution in full.
Altavilla operated a blog called “HOTHARDWARE.COM,” which contained contributor articles reviewing computers, computer components, and other related items. Altavilla sold advertising space on the site. For the calendar years 2006, 2007, and 2008, he under reported the total amount of gross receipts he took in from advertisers, resulting in an under reporting of his tax liability.
U.S. Attorney Carmen M. Ortiz, Assistant Attorney General Kathryn Keneally of the Department of Justice Tax Division and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. The case was prosecuted by Department of Justice Trial Attorney Sean R. Delaney.
Hungarian Man Sentenced for Scheme Selling Vehicles over the InternetRead the Press Release
BOSTON – A Hungarian man was sentenced today for conspiring to commit money-laundering and using a counterfeit passport in a scheme to sell vehicles over the Internet.
Zsolt Lendvai, 27, was sentenced by U.S. District Court George A. O’Toole, Jr., to two years in prison and ordered to pay $1.1 million in forfeiture and restitution to the victims. In July 2012, Lendvai pleaded guilty.
In October 2011, Lendvai, and another conspirator, Eniko Somodi, entered the United States from Hungary. While here, a conspirator identified as Z.K., provided them false passports and other identity documents and directed Lendvai and Somodi to use their new false identities to open up mailboxes and bank accounts. Other conspirators then fraudulently sold vehicles over the Internet and directed purchasers to send the purchase money to the conspiracy’s newly-opened bank accounts. Lendvai and Somodi transferred the purchase money elsewhere, often by wiring them to bank accounts in Hong Kong or elsewhere outside the U.S. More than $1 million moved through these accounts.
Sentencing for Eniko Somodi is currently scheduled for March 8, 2013.
United States Attorney Carmen M. Ortiz; Bruce Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Commissioner Edward Davis made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Scott L. Garland and Veronica Lei of Ortiz’s Cybercrimes and Asset Forfeiture Units.
Former Executive Director of Chelsea Housing Authority Charged with Falsely Reporting SalaryRead the Press Release
BOSTON - The former Executive Director of the Chelsea Housing Authority was charged today in federal court with falsely reporting his salary in annual budgets required by the U.S. Department of Housing and Urban Development (HUD) and the Massachusetts Department of Housing and Community Development.
Michael E. McLaughlin, 67, of Dracut, was charged in an Information with four counts of falsifying a record in a federal agency matter with intent to impede and obstruct that matter. The Information alleges that McLaughlin knowingly concealed, falsified, made false entries, and caused such concealment and false entries, in records and documents, namely, the annual fiscal year budgets of the Chelsea Housing Authority from 2008 to 2011, and submitted them electronically to the Massachusetts Department of Housing and Community Development.
The Information alleges that McLaughlin falsely stated that his budgeted annual salary was $151,945, when he knew that his actual salary for FY 2008 was at least $242,908 under his existing contract. It is further alleged that McLaughlin made the same kind of concealment of his rising salary in the ensuing three years. Specifically, in FY 2009 McLaughlin falsely reported that his budgeted annual salary was $156,503, when he knew that his actual salary was at least $267,199 under his existing contract and his total compensation was at least $292,902, as reflected in his 2008 W-2. Then in FY 2010, McLaughlin falsely reported that his budgeted annual salary was $160,415, when he knew that his actual salary was at least $275,215 under his existing contract and his total compensation was at least $324,896, as reflected in his 2009 W-2. In FY 2011 McLaughlin falsely reported that his budgeted annual salary was $160,415, when he knew that his actual salary was at least $283,471 under his existing contract and his total compensation was at least $324,896, as reflected in his 2009 W-2.
The maximum punishment under the statute is 20 years in prison, followed by three years of supervised release and a fine of $250,000 on each count.
United States Attorney Carmen M. Ortiz; Cary Rubenstein, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General; and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division made the announcement today. The Massachusetts Inspector General’s Office and Massachusetts State Police also assisted in the investigation.
The case is being prosecuted by Assistant U.S. Attorney S. Theodore Merritt of the Public Corruption and Special Prosecutions Unit and Special Assistant U.S. Attorney Edward Beagan from the Massachusetts Attorney General’s Office.
The details contained in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Charged with Multiple Bank RobberiesRead the Press Release
BOSTON - A Boston man was charged yesterday with robbing two banks in Boston and Somerville.
Michael Tucker, 45, was indicted on two counts of unarmed bank robbery.
It is alleged that on Oct. 10, 2012, around 3:30 p.m., a man entered Citi Bank on Stuart Street in Boston, handed the teller a note and stated that he had a gun. The teller handed $2,396 to the man, who then fled the bank.
On Oct. 13, 2012, around 11:20 a.m., a man entered the Citizens Bank in Union Square, Somerville. While at the teller’s station the man shouted, “This is a robbery.” The man passed a note to the teller demanding money. After the teller then handed him $1,720 he fled the bank leaving the demand-note behind.
It appears to be the same man, whose image was captured on bank surveillance videos, that robbed both banks.Following the robbery of the Citizens Bank and based on the images captured by both bank’s surveillance video system, the Somerville Police Department released a photograph of Tucker, as the suspect wanted in the robbery. On Oct. 15, 2012, the FBI’s Violent Crimes Task Force received a call from a Detective of the Westwood Police Department, who was conducting an unrelated investigation for a recent breaking and entry of a gas station, and suspected the man involved might be Tucker. The FBI’s Violent Crimes Task Force then compared surveillance photos from each incident with Tucker’s RMV photograph concluding that it was the same individual. On Oct. 16, 2012, the FBI, acting on a tip, located and arrested Tucker in a motel in southern New Hampshire.
The maximum sentence under the statue is 20 years in prison, to be followed by three years of supervised release, a $250,000 fine and restitution.
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division; John Gibbons, U.S. Marshal of the U.S. Marshal’s Service; and Chief Paul T. Donovan of the Salem New Hampshire Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The 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.