District of Massachusetts

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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 - 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.

BOSTON - A Lawrence gang member pleaded guilty today to illegally possessing a firearm and 84 rounds of ammunition.

Orlando Valle, 26, pleaded guilty to being a felon in possession of a firearm and ammunition before U.S. District Judge Nathaniel M. Gorton. The maximum sentence under the statute is 10 years in prison, to be followed by up to three years of supervised release and a fine of up to $250,000. Sentencing is scheduled for April 30, 2013.

On Nov. 21, 2011, troopers with the Massachusetts State Police, detectives with the Lawrence Police Department, and an agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives went to 282 Farnham Street in Lawrence to arrest Valle on an outstanding warrant. In the process of arresting Valle, one of the officers saw a black handgun on a heater in the defendant’s bedroom. Lawrence detectives obtained a search warrant and seized a .22 caliber firearm; 84 rounds of .22 caliber ammunition; mail, bills, and other documents showing Valle lived in the apartment; a written constitution for the Immortal Outlaws street gang; and several cellular telephones. Lawrence detectives later recovered several photographs of Valle holding firearms, including a photograph of Valle holding what appeared to be the gun found in his bedroom. The Lawrence Police Department had previously identified Valle as a member of the Immortal Outlaws, a violent street gang operating in Lawrence and elsewhere.

“This conviction should send a clear message that law enforcement officials are working together, and are focused on violent offenders and firearm crime,” said U.S. Attorney Carmen M. Ortiz. “I commend the investigators and prosecutors whose persistence and hard work resulted in the removal of a known gang member from the streets of Lawrence.”

Chief John Romero of the Lawrence Police Department said, “This conviction of a well-known Lawrence gang member will send a strong message: we will not tolerate illegal gun possession and gun violence in Lawrence. We will continue to work to end gun violence in Lawrence by targeting those who possess, sell, and or use illegal guns.”

The case against Valle commenced with state charges brought by Essex County District Attorney Jonathan Blodgett following Valle’s arrest in Lawrence and was then referred for federal prosecution.

This case was one of several federal prosecutions brought in the past year targeting violent crime in Lawrence committed by gang members, armed kidnapping and home invasion crews, large-scale drug traffickers, and others. These cases have been investigated by a working group of federal and state law enforcement agencies, including the FBI, ATF, the Drug Enforcement Administration (DEA), the Massachusetts State Police, the Lawrence Police Department, and others.

U.S. Attorney Ortiz; Guy Thomas, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Boston Field Division; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Chief Romero of the Lawrence Police Department, made the announcement today. This case is being prosecuted by Christopher Pohl of Ortiz’s Organized Crime Strike Force Unit.

BOSTON – The final defendant, charged last year with five others, has been sentenced for his role in distributing controlled substances at the VA Medical Center in Bedford.

Steven Jakaitis, 50, of Lowell, was sentenced today by Judge Richard Stearns to 15 months in federal prison, followed by three years of supervised release. In July 2012, Jakaitis pleaded guilty to distribution of buprenorphine and conspiracy to distribute oxycodone.

In January 2012, Jakaitis was charged along with David DeJesus, 52, of Lowell; Scott Houtchens, 50, of Lowell; David Porterfield, 45, of Saugus; David Robson, 53, of Tewksbury; and Allen Nickerson, 52, of Dorchester, for distributing controlled substances on the VA Medical Center’s Bedford campus. The VA Medical Center in Bedford provides multiple services to veterans of the U.S. Armed Forces, including alcohol and drug abuse/addiction rehabilitation services. In some cases, the defendants were selling drugs that had been prescribed and provided to them by medical professionals at the VA Medical Center.

All of the defendants pleaded guilty to the charges. Jakaitis was the final defendant to be sentenced. DeJesus was sentenced to three years of probation for distributing heroin. Porterfield was sentenced to two years of probation for distributing clonazepam. Houtchens was sentenced to three years of probation and a fine of $250 for distributing buprenorphine. Nickerson was sentenced to two years of probation for distributing buprenorphine. Robson was sentenced by to five years of probation for distributing oxycodone and conspiracy to distribute oxycodone.

“Any crime that takes advantage of the men and women who have served this nation is deplorable,” said United States Attorney Carmen M. Ortiz. “It is even more appalling when individuals prey on the weaknesses of recovering U.S. veterans. Drug trafficking remains a lucrative and dangerous trade and will continue to be the target of law enforcement. Today’s sentencing sends the message that when drug traffickers are caught, they will face serious consequences.”

“Mr. Jakaitis is the last of six individuals sentenced for selling controlled substances in and around the VA Medical Center in Bedford, Mass. This extensive seven month investigation and subsequent criminal prosecutions are the result of excellent cooperation with the DEA and VA Police. What is most distressing about this case is that drug dealing was occurring on the grounds of a VA hospital that hosts a drug rehabilitation program. Hopefully, this prosecution will deter others from dealing drugs to veterans who come to the VA for help with drug addiction and other ailments. Dealing drugs to veterans will not be tolerated and we will continue to actively pursue those that do. Veterans who have served our country deserve a safe place to heal and recover without being preyed upon by those who want to unlawfully profit from the sale of their own VA prescriptions,” said Special Agent in Charge Jeffrey G. Hughes of the Northeast Field Office for the Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division.

“We will not allow our veterans who have served this great country to be targeted by criminal elements involved in drug distribution. DEA is committed to following all leads and developing investigations wherever they take us - in this case, to individuals who sold heroin and prescription drugs,” said Special Agent in Charge John J. Arvanitis, of DEA’s New England Field Division. “DEA is proud of and committed to our partnerships with the U.S. Department of Veterans Affairs, Office of Inspector General, the U.S. Department of Veterans Affairs Police Service and the United States Attorney’s Office for the District of Massachusetts.”

U.S. Attorney Ortiz, Special Agent in Charge Hughes, Special Agent in Charge Arvanitis and Chief Richard Meltz of the U.S. Department of Veterans Affairs Police Service, Bedford VA Medical Center, made the announcement. The cases were prosecuted by Assistant U.S. Attorney Amanda P.M. Strachan of Ortiz’s Health Care Fraud Unit.

BOSTON – A Boston man was sentenced today for robbing Bank of America.

Francis X. Morgan, 51, was sentenced by Chief U.S. District Judge Patti B. Saris to 12.5 years in prison, to be followed by three years of supervised release, and payment of $3,334 in restitution. In October 2012, Morgan pleaded guilty to unarmed bank robbery.

On Jan. 9, 2012, Morgan walked into the Bank of America branch on Tremont Street in Boston, handed the teller a note claiming to have a bomb, and demanded money. Terrified, the teller handed him more than $5,500 in cash. Morgan, who did not wear a mask, was on supervised release for a previous bank robbery conviction and his probation officer later recognized him from photographs that were captured by the bank’s surveillance system. Morgan was eventually apprehended in Kansas after local police officers escorted him off a train bound for California. After he was arrested, Morgan made incriminating statements about the robbery and police seized from him more than $2,000 of the stolen cash.

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 prosecuted by Assistant U.S. Attorney Eric P. Christofferson of Ortiz’s Major Crimes Unit.

BOSTON – Three Holyoke residents were sentenced this week in U.S. District Court in Springfield for defrauding MassHealth, the Commonwealth’s Medicaid program.

Today, Aida Hernandez, 59, was sentenced to two years of probation and ordered to pay $23,383 in restitution. On Jan. 15, 2013, Maria Jusino, 35, was sentenced to three years of probation, including six months of home confinement, and ordered to pay $159,285 in restitution to MassHealth. Rafael Belen, 39, was also sentenced to time served, to be followed by three years of supervised release, during which time he will be required to perform 100 hours of community service, and ordered to pay $78,956 in restitution. In August 2012, Jusino, Belen and Hernandez pleaded guilty to conspiracy to commit health care fraud.

Beginning in 2006 and continuing through 2011, the three co-conspirators engaged in a scheme to defraud the state’s Personal Care Attendant (PCA) Program. The PCA Program, funded by MassHealth, the Commonwealth’s Medicaid Program, helps individuals with permanent or chronic disabilities keep their independence, stay in the community, and manage their own personal care. The defendants caused MassHealth to be billed for services that were never provided. For example, Jusino billed MassHealth for PCA services she claimed she provided to two different individuals at the same time. Other examples include the following:

• Jusino and Belen signed times sheets for PCA services for their son that were never provided;
• Belen claimed to be providing for PCA services to his brother-in-law in Holyoke when Belen was, in actuality, on vacation in Puerto Rico;
• Hernandez signed time sheets for PCA services she claimed she was provided to Jusino’s son on the same dates and during the same hours that she was running a day care center in her home; and
• Jusino billed MassHealth for PCA services she claimed she was performing for her mother during the same hours that Hernandez was billing MassHealth for PCA services she claimed to be providing to Jusino.

United States Attorney Carmen M. Ortiz and Susan J. Waddell, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Office of Investigations, made the announcement today. The case was investigated by the U.S. Department of Health and Human Services with the assistance of the Commonwealth of Massachusetts Auditor’s Office, Bureau of Special Investigations and the Commonwealth of Massachusetts, Office of the Attorney General, Medicaid Fraud Division. The case was prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Office.

BOSTON - Over 300 federal, state and local law enforcement officers carried out arrests and executed search warrants early this morning in Operation Concord, a large-scale collaborative investigation into the violence and distribution of drugs by the Woodward Avenue and Hendry Street gangs and their associates who terrorized the residents in Bowdoin-Geneva section of Dorchester and the Uphams Corner section of Roxbury.

“This community has been in desperate need of reprieve from the violence. We hope the arrests and prosecution of the defendants will quiet the streets and improve the quality of life for all residents,” said United States Attorney Carmen M. Ortiz.

“Today is a great day for the hardworking people of Bowdoin-Geneva and Uphams Corner,” Mayor Thomas M. Menino said. “Thanks to their help, and the help of our law enforcement partners, drugs have been taken from our streets, and these violent individuals who profit from harming others will no longer terrorize our neighborhoods.”

Teams of law enforcement and SWAT/STOP members arrested a total of 27 people today; 25 from the local area, one from California and one from Maine. Two other defendants are already in custody on federal supervised release violations and one remains a fugitive. Search warrants were executed at 12 locations.

As stated in court documents, the investigation, which involved controlled drug purchases, surveillance, and a wiretap, began in the summer of 2011. It is alleged that the defendants have been involved in gang, gun and drug activity in the Bowdoin-Geneva corridor or other areas of Dorchester and Roxbury at the direction of Alexis Hidalgo, 31, of Dorchester, and Jonathan DaSilva, 29, of Roxbury. Wiretap evidence was a crucial component of the investigation and provided investigators with information regarding the alleged partnership between Hidalgo, alleged leader of the Hendry Street gang, and DaSilva, alleged leader of the Woodward Avenue gang.

Hidalgo and DaSilva are alleged to be responsible for the distribution of kilos of crack cocaine, thousands of oxycodone pills throughout greater Boston, as well as hundreds of pounds of marijuana which they branded as high-grade and sold for up to $5,200 a pound. In a wiretap recording, a “mother-load” shipment of drugs was described in a call intercepted between Hidalgo and his associate. It is alleged that Hidalgo responded by saying, “You just got us indicted bro. If they are listening, I sell weed man.”

“From the Berkshires to Cape Cod, the FBI and our law enforcement partners actively analyze and investigate hot spots of gang activity in Massachusetts. As a result, we have concluded several lengthy gang investigations over the past year like today’s, which targets the Hendry Street and Woodward Avenue gangs,” said Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Because of today’s multiple arrests, neighborhoods in Boston and several surrounding cities and towns are safer now than they were mere hours ago. Our unified law enforcement goal is to eradicate the scourge of gang activity which adversely impacts the safety of our communities.”

“This case demonstrates, working with our law enforcement partners, we are keeping the pressure on violent criminals involved in the drug trade,” Police Commissioner Ed Davis said. “We will not tolerate these defendants and others like them from terrorizing our neighborhoods. We are committed to rooting out the bad actors who make our communities unsafe.”
“This effort shows our collective resolve in Boston and the Commonwealth to attack and dismantle these dangerous street gangs," said Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston. “For too long, gangs here and elsewhere have used violence and intimidation to hold communities hostage. As this operation shows, now it's the gang members who have something to fear.”
“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.

United States Marshal John Gibbons said, “The success of this investigation demonstrates the excellent working relationships the federal government shares with its state and local partners.”

The following individuals have all been charged with conspiracy to distribute cocaine base, cocaine, heroin, and marijuana, and are subject to forfeiture of property:

1) Alexis Hidalgo, 31, of Dorchester. (Also charged with two counts of distribution of cocaine base.)
2) Jonathan DaSilva, 29, of Roxbury. (Also charged with distribution of marijuana, two counts of distribution of cocaine base, distribution of oxycodone, and being a felon in possession of a firearm.)
3) John Alves, 23, of Roxbury.
4) Hamzal Awil, 24, of Westbrook, Maine.
5) Benjamin Baptista, 29, of Hyde Park.
6) Jeremia Barbosa, 28, of New Bedford.
7) Maurice Barnett, 30, of Salinas, Cali.
8) Jackson Barros, 30, Dorchester. (Fugitive)
9) Michael Beal, 32, of Roxbury.
10) Joshua Brandao, 22, of Dorchester. (Also charged with distribution of cocaine base.)
11) Julio Collazos, 32, of Brockton.
12) Ilton Correia, 28, of Roxbury. (Also charged with distribution of marijuana.)
13) Jerry Correia, 25, of Dorchester.
14) Lino Correia, 20, of Randolph.
15) Alex DaSilva, 29, of Roxbury.
16) Jose Denis, 36, of Roxbury.
17) Carlos Fernandez, 36, of Dorchester.
18) Moises Figueroa, 33, of Wellesley Hills. (Also charged with distribution of cocaine base.)
19) Patrick Gomes, 27, in federal custody on a supervised release violation. (Also charged with being a felon in possession of a firearm.)
20) Hamilton Lopes, 29, of Brockton. (Also charged with distribution of cocaine base.)
21) Leakana Om, 22, of Cambridge.
22) Nicholas Otey, 25, in federal custody on a supervised release violation. (Also charged with distribution of cocaine base.)
23) Ruth Rivera-Lopes, 22, of Dorchester.
24) Morris Robinson, 31, of Brockton.
25) Martinho Rodrigues, 30, of Boston.
26) Victor Scott, 23, of Dorchester. (Also charged with distribution of cocaine base.)
27) Dulsilina Tavares, 26, of Dorchester.
28) Carl Taylor, 34, of Roxbury.
29) O’Neil Taylor, 30, of Norwood.
30) John Webbe, 34, of Boston. (Also charged with distribution of cocaine).

Jonathan DaSilva and Gomes face an additional count of forfeiture for all firearms including a Ruger P89 semiautomatic handgun.

U.S. Attorney Ortiz; Mayor Thomas M. Menino; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner Edward Davis; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement, Homeland Security Investigations in Boston; United States Marshal John Gibbons; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; and Commissioner Luis S. Spencer of the Massachusetts Department of Correction, made the announcement today.

Special thanks to Suffolk District Attorney Daniel Conley and members of his office and the numerous local law enforcement agencies who provided substantial cooperation and assistance throughout the course of the investigation and during the execution of the arrests and searches today. The case is being prosecuted by Assistant United States Attorneys in Ortiz’s Organized Crime and Gang Unit.

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

BOSTON – An Adams woman and former credit union employee was convicted today of embezzlement and making false entries into the books of the credit union.

Patricia Piscioneri, 67, pleaded guilty before U.S. District Judge Michael A. Ponsor to a 30 count indictment charging her with embezzlement of funds by a credit union employee and false entries.

While employed as the manager of the former Adams Municipal Employees Federal Credit Union (AMEFCU), Piscioneri embezzled credit union funds by creating fraudulent loan accounts in the names of credit union members and depositing the proceeds of these fraudulent loans into her own account(s), her husband’s account(s), or other family members’ account(s), or used the proceeds to pay off previously obtained fraudulent loans. In an attempt to avoid detection, Piscioneri created fraudulent loan documentation, such as loan applications and promissory notes, and forged signatures on the fraudulent loan documentation. Additionally, Piscioneri created false entries in the AMEFCU accounting system and advanced the payment due dates of the fraudulent loans.

Sentencing is scheduled for April 25, 2013. Piscioneri faces up to 30 years in prison to be followed by five years of supervised release and a $1 million fine.

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. Attorney Michelle L. Dineen Jerrett of Ortiz’s Health Care Fraud Unit.

BOSTON –A former Centerville man was sentenced today for impersonating a federal agent.

Mark E. Daniel, 50, was sentenced by U.S. District Judge Nathaniel Gorton to six months in prison, to be followed by one year of supervised release and restitution to the victim. In October 2012, Daniel pleaded guilty to impersonating a federal agent.

Between June 7 and August 8, 2012, Daniel pretended to be a high-level special agent with the Department of Homeland Security assigned to the White House. Daniel carried out this ruse in his dealings with a locally-based photographer. The impersonation started when Daniel, posing as a federal agent, entered the photography business and engaged its female owner in conversation. Daniel told the owner that he was a federal agent, displaying a gold metal star-shaped badge along with identification in a black leather case. Daniel told the owner that he would like to hire her to photograph a private party which was to take place on July 7, 2012 at the Kennedy Compound in Hyannis Port. Daniel claimed the event would be attended by high-profile politicians and government leaders, to include Secretary of State Hillary Clinton and former President of the United States (POTUS) Jimmy Carter.

Thereafter, Daniel carried out his impersonation ruse in future in-person meetings, emails and phone calls. Most of the phone calls were consensually recorded by the owner. In their numerous conversations, Daniel explained that he was National Security and that he handled the Secret Service. According to Daniel, his agency was responsible for the security of the United States, the Constitution and the Presidency. Daniel advised that in his job he frequently spoke with the POTUS, Vice President, Chief of Staff and other White House staff members and that he had “100% access to the White House.” To legitimize this assertion, Daniel sent the owner photographs of President Obama in the Oval Office, explaining that he’d taken the photographs himself. Daniel also offered to introduce the owner to White House photographer, Pete Souza; Daniel told her that he regularly interacted with Souza while working in the White House and while she was listening he purported to call the White House and set up a lunch meeting with Mr. Souza.

In carrying out his impersonation, Daniel arranged various details of the proposed Hyannis Port photography event; notably, Daniel asked the owner to provide photographs of herself and her female assistant, explaining that full body photographs and “head-shots” were necessary for security purposes. Daniel instructed that the photographs should depict the day and evening attire that the owner and her assistant planned to wear to the event, explaining that Secretary of State Clinton would need to approve the selected outfits. The owner provided the requested images to Daniel. As the date of the alleged event neared, Daniel told the owner that the event had been cancelled due to a security breach. Shortly thereafter, Daniel told the owner that he would be accompanying presidential candidate Mitt Romney to the Republican National Convention and that he wanted her to accompany him to photograph this four day event. As with the earlier event, because she would be in close proximity to Mr. Romney, Daniel would have to pre-approve all of the owner’s outfit/clothing selections. In another conversation, Daniel claimed that he would be accompanying President Obama to the London Olympics and asked if she wanted to join him on Air Force One to photograph the trip.

The impersonation scheme unraveled as the owner became suspicious of Daniel, contacted law enforcement and began cooperating with law enforcement. Daniel was arrested at the Barnstable Airport in Hyannis on Aug. 8, 2012 where he had planned to meet the owner as he was purportedly disembarking from a flight from Washington, D.C.

Daniel was previously convicted of impersonating a DEA agent in 1992.

United States Attorney Carmen M. Ortiz and Gregory K. Null, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Office of Inspector General, Office of Investigations, made the announcement today. The United States Secret Service, the Hanover Police Department and the Barnstable Police Department assisted in the investigation. The case was prosecuted by Assistant U.S. Attorney Diane Freniere of Ortiz’s Public Corruption & Special Prosecutions Unit.

BOSTON – A West Brookfield man with a prior child pornography conviction was sentenced yesterday in U.S. District Court in Springfield.

Christopher Boucher, 44, pleaded guilty to possession of material involving the sexual exploitation of a minor and was sentenced to 10 years in prison, to be followed by 10 years of supervised release with special conditions relating to sex offenders.

In January 2012, the Massachusetts State Police executed a state search warrant at Boucher’s former residence in Ware and seized a laptop that contained a video depicting multiple rapes of a young girl known as “Vicky.” Boucher then told the police that he used file-sharing programs on the Internet to obtain images of children from 12 to 15-years-old engaged in sexual acts. Boucher also said that as recently as a few days ago, he used the e-Mule file-sharing program to download a child pornography video belonging to the “Vicky” series.

In 2000, Boucher pleaded guilty in federal court to possession of child pornography. In 2001, he was sentenced to five years of probation with six months in home detention.

United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.

BOSTON – As a parent and a sister, I can only imagine the pain felt by the family and friends of Aaron Swartz, and I want to extend my heartfelt sympathy to everyone who knew and loved this young man. I know that there is little I can say to abate the anger felt by those who believe that this office's prosecution of Mr. Swartz was unwarranted and somehow led to the tragic result of him taking his own life.

I must, however, make clear that this office's conduct was appropriate in bringing and handling this case. The career prosecutors handling this matter took on the difficult task of enforcing a law they had taken an oath to uphold, and did so reasonably. The prosecutors recognized that there was no evidence against Mr. Swartz indicating that he committed his acts for personal financial gain, and they recognized that his conduct - while a violation of the law - did not warrant the severe punishments authorized by Congress and called for by the Sentencing Guidelines in appropriate cases. That is why in the discussions with his counsel about a resolution of the case this office sought an appropriate sentence that matched the alleged conduct - a sentence that we would recommend to the judge of six months in a low security setting. While at the same time, his defense counsel would have been free to recommend a sentence of probation. Ultimately, any sentence imposed would have been up to the judge. At no time did this office ever seek - or ever tell Mr. Swartz's attorneys that it intended to seek - maximum penalties under the law.

As federal prosecutors, our mission includes protecting the use of computers and the Internet by enforcing the law as fairly and responsibly as possible. We strive to do our best to fulfill this mission every day.

BOSTON - A Taunton man was charged today in federal court with stealing mail.

Michael Gilman, 27, was charged with theft of mail. The indictment alleges that Gilman, an employee of the United States Postal Service in Brockton, stole letters while in his official capacity.

If convicted, Gilman faces up to five years in prison to be followed by three years of supervised release and up to a $250,000 fine.

United States Attorney Carmen M. Ortiz and Rafael Medina, Special Agent in Charge, U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption and Special Prosecutions Unit.

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

BOSTON - A Southampton man was sentenced today in U.S. District Court in Springfield for growing marijuana and laundering the profits.

Gregory Krzanowski, 39, was sentenced by U.S. District Judge Michael A. Ponsor to three years of probation, a $2,500 fine and forfeiture of $300,000. In October 2012, Krzanowski pleaded guilty to possession with intent to distribute marijuana and three counts of money laundering.

In August 2011, Krzanowski operated an indoor marijuana grow house. On three dates in 2009, Krzanowski made cash deposits of the proceeds from this marijuana business into the bank account which was in the name of another legitimate business that he operated.

United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Branch Unit.

BOSTON - A Fitchburg man was convicted Friday in U.S. District Court in Worcester for distributing crack cocaine.

Hector Rodriguez, Jr. a/k/a Bolo, 32, was convicted by a jury of three counts of distributing cocaine base. Sentencing is scheduled for April 8, 2013. Rodriguez faces up to life in prison, to be followed by at least eight years of supervised release and a $5 million fine.

During the five-day trial evidence showed that Rodriguez distributed crack cocaine on Oct. 26, Nov. 2, and Nov. 16, 2011. In January 2012, Rodriguez was arrested as part of Operation Red Wolf, a multi-agency investigation targeting gang members involved in drug dealing and firearms distribution in the Fitchburg area.

United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division; Guy Thomas, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Fitchburg Police Chief Robert A. DeMoura; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Cory Flashner and Mark Grady of Ortiz’s Worcester Branch Office.

BOSTON - A Dracut man was convicted today of defrauding the Internal Revenue Service of approximately $2 million by lying on corporate tax forms about how many workers he employed.

Tom Seng, 70, pleaded guilty before U.S. District Judge George A. O’Toole to 20 counts of making and subscribing a false tax return.

Beginning around 2006, S&T Industrial Service, Incorporated, (S&T) a company owned and operated by Seng, began providing temporary employees to several companies in the Boston area. Seng, however, failed to list these employees on S&T's quarterly and yearly corporate tax returns, in an effort to avoid paying Social Security and Medicare taxes on employee wages and withholding federal income taxes. Overall, Seng failed to pay and withhold federal taxes on approximately $12 million in wages, resulting in losses to the U.S. Treasury of approximately $2 million. Moreover, at least one company working with S&T placed its permanent workers on S&T's payroll, instead of keeping them on the company's books, to hide the fact that the workers were permanent employees of the company and therefore avoided paying taxes on the employees' wages.

Judge O’Toole scheduled sentencing for April 16, 2013. Seng faces up to three years in prison on each count, to be followed by up to three years of supervised release and a maximum fine of $250,000. Seng must also pay the costs of prosecution, and full restitution to the U.S. Treasury.

United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Andrew E. Lelling of Ortiz’s Economic Crimes Unit.

BOSTON - A Rhode Island woman was convicted today of embezzling more than $375,000 from the accounts of Citizens Bank customers.

Maria DaSilva, 44, pleaded guilty before U.S. District Judge Richard Stearns to violating the federal bank fraud statute.

From February 2008 through January 2012, while she was working as a bank teller at the North Attleboro branch of Citizens Bank, DaSilva embezzled over $375,000 from the accounts of three elderly bank customers by forging withdrawal slips on various accounts held by these customers.

Sentencing is scheduled for May 8, 2013. DaSilva faces up to 30 years in prison, to be followed by five years of supervised release and a $1,00,000 fine.

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. Attorney Jeremy Sternberg of Ortiz’s Economic Crimes Unit.

BOSTON - Two Lawrence men were arrested today for stealing more than $210,000 in U.S. Treasury tax refunds.

Robert A. Montero, 39, and Wilson R. Santana, 36, were charged with 30 counts of stealing U.S. Treasury tax refunds contained in U.S. Treasury checks that had been fraudulently obtained by filing false tax returns with the U.S. Internal Revenue Service. The indictment alleges that between November 2011 and February 2012, Montero worked as a bank teller at the Metro West Credit Union in Lawrence where, for a fee, he assisted Santana in negotiating these fraudulently obtained U.S. Treasury checks in the bank accounts associated with Santana. In addition, Santana is charged with four counts of possessing fraudulently obtained U.S. Treasury checks containing U.S. Treasury tax refunds with intent to convert the tax refunds for his own use.

If convicted, Montero and Santana face up to 10 years in prison on each count, to be followed by three years of supervised release and a $250,000 fine.

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 the Internal Revenue Service’s Criminal Investigation in Boston; and Chief John Romero of the Lawrence Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Maxim Grinberg of Ortiz’s Major Crimes Unit.

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

BOSTON - A New York woman was sentenced today in U.S. District Court in Springfield for sending threatening letters containing white powder to government offices in Massachusetts.

Roberta Cicora, 57, was sentenced by U.S. District Judge Michael A. Ponsor, to 27 months in prison and to pay $4,630 in restitution to the Commonwealth of Massachusetts for HAZMAT services. In September 2012, Cicora pleaded guilty to mailing four threatening communications.

In May 2012, Cicora mailed threatening letters, which included an unknown white powder, to United States Senator Scott Brown, Massachusetts Attorney General Martha Coakley and the District Court in Greenfield, Mass. Cicora also sent a threatening letter to the Franklin County House of Correction in Greenfield. Cicora’s white powder letters caused the offices which received them to close down until HAZMAT teams responded and determined that the letters did not pose a lethal threat to the safety of the workers.

United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and Colonel Timothy Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case was investigated by the FBI in Springfield, Mass., and Albany, N.Y.; the Postal Inspection Service in Springfield; the Massachusetts State Police Assigned to Attorney General Martha Coakley's Springfield Office and the New York State Police. The case was prosecuted by Assistant U.S. Attorney Kevin O’Regan of Ortiz’s Springfield Office.

BOSTON - A Saugus woman was sentenced today for a scheme to steal charitable donations and other funds intended for a local library where she worked

Linda E. Duffy, 66, was sentenced by U.S. District Judge Douglas P. Woodlock to five years in prison, to be followed by three years of supervised release and to pay $965,742 in restitution. In December 2011, Duffy pleaded guilty to four counts of mail fraud, 10 counts of money laundering, and aggravated identity theft.

Beginning around 2004 through 2011, Duffy, who was employed by the Saugus Public Library, diverted funds received for charitable donations and payment of fines from an account in the name of the library to a decoy bank account. She then transferred the funds from the decoy account to her personal account at the same bank. Duffy used the money for personal expenses, including jewelry, home repairs, automotive payments, and her home mortgage payments. She deposited some of the funds into an account in her daughter's name. Duffy also stole funds from a second library account by forging a library official’s signature on about 90 checks.

To boost the funds in the library account, Duffy also deceived the GE Foundation. Since the GE Foundation matches charitable donations by current and former GE employees and their spouses, Duffy posed as the relative of a GE employee, thus deceiving the Foundation into donating over $400,000 to the library to match non-existent donations. Duffy deposited these funds into the decoy account before later transferring them to her own account.

Between 2004 and 2011, Duffy transferred over $850,000 to the decoy account in library donations, fines, fees, and the funds obtained from defrauding the GE Foundation. Duffy was forced to resign in July 2011.

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 Saugus Police Department also assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorney Andrew E. Lelling of Ortiz’s Economic Crimes Unit.

BOSTON - A Florida man was sentenced today for producing child pornography

Douglas W. Boone, 48, was sentenced by U.S. District Judge Joseph L. Tauro to 19 ½ years in prison and lifetime supervised release for production of child pornography.

In 2010, Boone contacted a 13-year-old Massachusetts girl through the Internet. After communicating with the child for weeks and aware of her age, Boone persuaded her to perform sexual acts for him via the Internet, at least 20 times, between May and August 2010. Boone recorded some of these sessions and shared the videos with hundreds of others via file-sharing websites. Boone also sent the victim sex toys to use on camera for him and he showed himself masturbating to the victim via webcam.

In October 2010, Boone was arrested in Fort Myers, Fla., and has since been in custody.

United States Attorney Carmen M. Ortiz and Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was investigated by Massachusetts law enforcement, as well as the Lee County (FL) Sheriff's Office, the U.S. Postal Inspection Service, and the Department of Justice High Technology Investigative Unit. Substantial assistance was provided by the U.S. Attorney's Office for the Middle District of Florida. The case was prosecuted by Assistant U.S. Attorneys Michael Yoon and Stacy Dawson Belf of Ortiz's Major Crimes Unit, and Trial Attorney Andrew McCormack of the Department of Justice Child Exploitation & Obscenity Section.

This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in 2006 by the Department of Justice. Led by the U.S. Attorneys' Offices, and the DOJ’s Criminal Divisions’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

BOSTON – A former manager of medical device company Orthofix was sentenced today in federal court for defrauding Medicare by falsifying patient medical records.

In March 2012, Derrick R.D. Field, 36, of Greenland, New Hampshire, pleaded guilty to charges of health care fraud. Today, U.S. District Court Joseph L. Tauro sentenced him to five months home confinement as part of his two years probation. Judge Tauro also ordered Field to pay a fine of $4,000, and to forfeit $40,000.

Field admitted that for several years he falsified patient medical records, causing Medicare to pay more than $250,000 for fraudulent claims for medical devices. Between 2005 and 2011, Field was a territory manager for Orthofix, Inc., a company that manufactured and distributed bone growth stimulator medical devices. Bone growth stimulators are used to assist patients with bone fractures that did not heal properly. Medicare has specific rules describing when it will pay for this device. When Field received bone growth stimulator orders for Medicare patients that did not meet these rules, Field forged the patients’ medical records to make it appear as though the order met the rules to induce Medicare to pay for claims that otherwise would not be covered. For instance, Field created phony medical chart notes, describing patient visits that did not occur and altered the physicians’ actual chart notes by inserting false diagnoses and descriptions of the patients’ medical history. Field forged medical records in connection with more than 100 Medicare claims, causing Medicare to pay Orthofix for orders that did not meet program guidelines.

In addition to Field’s sentence, the on-going Orthofix investigation has resulted in a number of felony charges against executives, employees and contractors of Orthofix, including the following:

1. In December 2012, Orthofix was convicted of obstruction of a federal audit, and ordered to pay approximately $42 million in criminal fines and civil payments, and was sentenced to probation for five years;

2. In April 2012, Thomas Guerrieri pleaded guilty to paying kickbacks while he was vice president of Orthofix;

4. In December 2011, Mitchell Salzman pleaded guilty while he was a regional manager for Orthofix;

6. In July 2012, Michael Cobb, a physician’s assistant, was sentenced to six months in prison to be followed by two years of supervised release, six months of which under home confinement and ordered to pay $10,000 in forfeiture. Cobb previously pleaded guilty to accepting kickbacks from Orthofix.;

7. In May 2012, Michael McKay pleaded guilty to health care fraud while he was a territory manager for Orthofix; and

8. In September 2012, Brian Racey pleaded guilty to health care fraud while he was a territory manager for Orthofix.

U.S. Attorney Carmen M. Ortiz said, “Health care fraud not only drains valuable taxpayer resources, it drives up overall health care costs and victimizes some of our nation’s most vulnerable members of society, including the elderly and disabled. In the District of Massachusetts, we have worked tirelessly to combat health care fraud and will continue to hold corporations and individuals accountable.”

U.S. Attorney Ortiz and Susan J. Waddell, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys David Schumacher and Jeremy Sternberg of Ortiz's Health Care Fraud Unit.

Boston - An Andover man was indicted today on child pornography charges.

William S. Thomas, 64, was charged in an indictment with seven counts of receipt of child pornography and one count of possession of child pornography. The indictment alleges that on various dates in 2011, Thomas knowingly received films depicting minors engaged in sexually explicit conduct. The items were seized from Thomas’ home during the execution of a federal search warrant in September 2012.

If convicted, Thomas faces a mandatory minimum sentence of five years and up to 20 years in prison on the receipt of child pornography charges and up to 10 years in prison on the possession of child pornography charge. Thomas also faces up to a lifetime of supervised release and a $500,000 fine on each count.

United States Attorney Carmen M. Ortiz; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and Chief Brian J. Pattullo of the Andover 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.

Boston - A Bourne woman was charged today with stealing drugs from a home for veterans.

Pamela Silverberg, 49, was charged in an indictment with obtaining controlled substances by subterfuge.

The indictment alleges that Silverberg was working at the Kendrick House in Bourne as a housekeeper, cook and caretaker. Kendrick House is a community residential care home, privately owned and operated, that provides housing and care primarily to U.S. veterans. It housed 19 veterans in the Spring of 2011 when Silverberg is alleged to have stolen certain controlled drugs, including clonazepam (an anti-anxiety medication). She attempted to cover up her theft by substituting over-the-counter allergy medication which had a similar, though not identical, appearance.

If convicted, Silverberg faces up to four years in prison, to be followed by three years of supervised release and a $250,000 fine.

United States Attorney Carmen M. Ortiz and Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Northeast Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Thomas E. Kanwit 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.

Boston – The U.S. Attorney’s Office for the District of Massachusetts and the Boston Office of the U.S. Department of Labor announced today that Dunkin’ Donuts—Pulaski Donuts, Inc. has entered into a settlement agreement. The agreement reached will resolve a complaint filed with the Department of Labor, Veterans’ Employment and Training Service by Army Reservist Christine Deneault.

Denault alleged that she was not properly reemployed by Pulaski Donuts after her return from active military duty, in violation of the Uniformed Services Employment and Reemployment Rights Act (USERRA), which generally requires employers to promptly reemploy returning service members in the positions they would have held had their employment not been interrupted by military service.

Pursuant to the terms of the settlement agreement, Pulaski Donuts has paid $10,000 to Deneault, and has committed to future compliance with USERRA and to provide USERRA training for managers at all 17 of Pulaski Donuts’ Dunkin Donuts franchises. Pulaski has not admitted liability in connection with the settlement.

“We are pleased to work with our federal partners at the Labor Department to ensure that military men and women across the Commonwealth, who proudly protect and defend the United States, can return from their military service without fear of discrimination in employment,” said Carmen M. Ortiz, U.S. Attorney for the District of Massachusetts. “The United States Attorney’s Office remains committed to protecting the rights of these brave service members.”

The matter was handled by the U.S. Department of Labor, Office of the Solicitor, with collaboration from the U.S. Attorney’s Office and the Employment Litigation Section of the Civil Rights Division of the Justice Department. The matter stems from an investigation conducted by the Veterans’ Employment and Training Service.

The Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices have given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.

Boston - A Springfield tax preparer was sentenced today in U.S. District Court in Springfield for filing fraudulent tax returns for her clients.

Yolanda Mercedes Perez Lopez, 51, was sentenced by U.S. District Judge Michael A. Ponsor to 18 months in prison, to be followed by three years of supervised release, and $46,300 in restitution to the Internal Revenue Service. In November 2012, Perez Lopez pleaded guilty to aiding and assisting in the preparation of false tax returns, false statements to a federally insured financial institution, endeavoring to interfere with the administration of the internal revenue laws, false representation of United States citizenship, and false representation of a Social Security Number with intent to deceive.

Perez Lopez operated a tax preparation business in Springfield called Lopez Multiservice (LMS). Between February 2007 and April 2008, in order to obtain greater tax refunds for her customers than they were entitled to receive, Perez Lopez prepared numerous tax returns that she knew were fraudulent. Perez Lopez also corruptly endeavored to obstruct and impede the due administration of the Internal Revenue laws by making materially false statements to representatives of the IRS; providing false documentation for her customers to submit to the Massachusetts Department of Revenue; and counseling her customers to lie to representatives of the IRS.

In addition, in April 2009, Perez Lopez provided false and fraudulent financial information to a loan officer at National City Mortgage, a division of National City Bank, in connection with a residential mortgage application for a property located in Agawam, Mass. This information included a 2007 and 2008 tax return that stated substantially more income than the tax returns that she had previously filed with the IRS.

Further, in June 2009, Perez Lopez prepared an amended 2008 tax return that she knew was fraudulent, in that the tax return claimed a first-time homebuyer credit for the property in Agawam, despite the fact that Perez Lopez knew that the individual had already purchased a home which he continued to own and occupy as his primary residence.

Lastly, Perez Lopez is a national from the Dominican Republic who resided in the United States without a valid visa. To conceal her true identity, nationality, and immigration status, Perez Lopez used the name, date of birth, and Social Security Number of another person, who was a United States citizen and resident of Puerto Rico. Perez Lopez used this fraudulent identity to operate LMS, bank accounts, credit cards, insurance, and a Massachusetts driver=s license.

United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent In Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Bruce M. Foucart, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; Scott Antolik, Special Agent In Charge of the Office of Inspector General, Social Security Administration, Office of Investigations, Boston Field Division; and Cortez Richardson, Special Agent In Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Boston Regional Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz=s Springfield Branch Office.

Boston - A Hyannis man was sentenced yesterday for soliciting and recording underage girls engaged in sexually explicit conduct.

Kevin McNicol, 24, was sentenced by U.S. District Judge Douglas P. Woodlock to 15 years in prison to be followed by seven years of supervised release, including conditions prohibiting unsupervised contact with minors and unapproved Internet access for charges of the sexual exploitation of a child for the transmission of child pornography.

In March 2011, a website filed a cyber tip with the National Center for Missing and Exploited Children (NMCEC). An online user of the website had uploaded an image of suspected child pornography, specifically an image depicting a minor Asian girl, approximately 10-years-old, engaged in simulated oral sex. Law enforcement traced this posting back to McNicol at his residence in Hyannis.

In May 2011, a search warrant was executed at McNicol’s address where law enforcement located child pornography on a computer. Specifically, investigators observed several video files that depicted minor females exposing their genitals and/or engaging in sexual acts.

Forensic analysis later revealed that McNicol recorded underage and adult females engaging in such acts via the Internet. McNicol engaged the girls in web chats, whereupon he would solicit them to expose their breasts, anus, and/or vagina and ultimately engage in sexually explicit conduct for his viewing and recording. Law enforcement recovered 92 such video files, the majority of which depicted as many as 78 underage females. At least nine videos, depicting approximately eight different young girls, clearly meet the legal definition of child pornography and the remainder constitute either child pornography or child erotica.

United States Attorney Carmen M. Ortiz and Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The matter was investigated by the Massachusetts Internet Crimes Against Children Task Force (ICAC) including Massachusetts State Police, Barnstable Police Department, Barnstable County Sheriff’s Office, Yarmouth Police Department, and the U.S. Postal Inspection Service. In coordination with the Cape and Islands District Attorney’s Office, the case was prosecuted by Assistant U.S. Attorneys Michael I. Yoon and Stacy Dawson Belf.

This case was 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/.

October 23, 2010

BOSTON – A former Springfield man was convicted yesterday by a jury in U.S. District Court in Springfield of illegally possessing a firearm and ammunition. 

Luis Colon, 30, was convicted following a four-day trial before U.S. District Judge Michael A. Ponsor of possessing a firearm and ammunition after being previously convicted of a crime punishable by more than one year in prison.

On September 7, 2010, the defendant sold a Smith & Wesson 9mm pistol with 14 rounds of Remington 9mm ammunition to a man working with the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

Sentencing is scheduled for February 2, 2014.  Because Colon has multiple convictions that make him an armed career criminal, he faces a minimum mandatory sentence of 15 years in prison and a maximum sentence of life in prison and five years of supervised release.  

            United States Attorney Carmen M. Ortiz; Hampden County District Attorney Mark Mastroianni; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Chief William Fitchett of the Springfield Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.