District of Massachusetts
Press releases recorded for this federal judicial district.
Owner of Tax Preparation Company Sentenced to More Than Four Years in Prison for Bank Fraud and $2.1 Million COVID Relief FraudRead the Press Release
BOSTON – A Lawrence woman was sentenced in federal court in Boston for using stolen identities of taxpayers and businesspeople to defraud the Internal Revenue Service (IRS), a bank, and the Small Business Administration (SBA).
Luz Paulino, 42, was sentenced by U.S. District Court Judge Richard G. Stearns to 54 months in prison, four years of supervised release, and ordered to pay $37,056 in restitution to MetaBank and $456,300 to the Small Business Administration. In June 2024, Paulino pleaded guilty to one count of bank fraud conspiracy, one count of bank fraud, two counts of wire fraud and two counts of aggravated identity theft.
Paulino was arrested in December 2020 and indicted by a federal grand jury in January 2021. While on pretrial release, Paulino fled the United States and remained a fugitive for 19 months. Panamanian authorities ultimately returned her to the United States, where she was arrested for a second time.
Paulino owned and operated Agape Financial Services, a Lowell-based company that provided tax preparation and notary services. In 2019 and early 2020, Paulino filed false and fraudulent federal tax returns using the stolen identities, names and Social Security numbers of individual victims. The fraudulent tax returns reported false information regarding wages, employers and dependents, among other things, to claim tax refunds. To conceal her involvement, Paulino falsely represented to the IRS that the returns had been prepared by two former employees of Agape. Paulino then used the fraudulent returns to obtain Refund Advance Loans from a bank in the names of her victims. Paulino and others she recruited then cashed the loan checks using false identification documents and forged signatures.
Paulino separately used stolen identities of businesspeople living in California, Michigan, Indiana and elsewhere to apply to the SBA for $2.1 million in COVID-19 Emergency Injury Disaster Loans. Between June 2020 and October 2021, Paulino’s false applications listed fictitious companies that purportedly lost revenue during the pandemic. She used the fraudulently obtained loan proceeds to wire more than $395,000 to the Dominican Republic and to buy a 2020 Cadillac for $86,000, among other purchases.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation, Boston Field Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations; and Melix Bonilla, Acting Chief of the Lawrence Police Department made the announcement today. Assistant U.S. Attorney Victor A. Wild of the Securities, Financial & Cyber Fraud Unit prosecuted the case.On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department's response to the pandemic, please visit Justice.gov/Coronavirus and Justice.gov/Coronavirus/CombatingFraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice's National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.
Former Tufts Medical Center Doctor Convicted of Attempted Sex Trafficking of a ChildRead the Press Release
BOSTON – A former anesthesiologist at Tufts Medical Center was convicted yesterday by a federal jury of attempted sex trafficking of a child.
Sadeq Ali Quraishi, 47, was convicted of one count of attempted sex trafficking of a child. U.S. District Court Judge Angel Kelley scheduled sentencing for Jan. 28, 2024. Quraishi was indicted by a federal grand jury in November 2022.
“The trafficking of women and minors for commercial sex is ever present in our communities and sex buyers from all walks of life drive this demand. As a practicing physician, Sadeq Quraishi was in a position of trust and expected to possess a strong ethical and moral compass. Instead, he engaged in extended negotiations with a purported trafficker and ultimately agreed to buy sex with a 14-year-old girl. Fortunately, this was a law enforcement operation and no real child was involved, but sadly that is not always the case.” said Acting United States Attorney Joshua S. Levy. “We are actively prosecuting the men and women who traffic adults and kids for profit, but in order to make a real dent in this pernicious conduct, we also must go after the demand part of the equation –the people who are trolling the internet and trying to purchase sex with little kids. I hope that every coward behind a keyboard who is thinking about engaging in the rape of the child under the auspices of a commercial transaction thinks twice – you may very well be talking to an undercover federal agent. Don’t do it. If you do, you are looking at a minimum of 10 years or more behind bars.”
“As a society, we put our trust in doctors and hold them to the highest ethical standards. Quraishi betrayed that trust by seeking out and attempting to pay to sexually abuse a child,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England. “HSI will never relent in our pursuit of bringing child predators to justice.”
In November 2022, Quraishi, then a practicing anesthesiologist at Tufts Medical Center in Boston, responded to an online advertisement offering commercial sex with two young girls. Through an ensuing text conversation with undercover agents posing as the seller of the two girls, Quraishi agreed to pay $250 for a sex act to be performed by a 14-year-old girl. Shortly thereafter, Quraishi obtained cash from an ATM, and drove from his Boston home to a Waltham hotel to meet with the purported seller. Once at the hotel, he met with an undercover agent, confirmed he had the money to pay for the commercial sex act, and accepted a keycard he believed would give him access to the room where the 14-year-old girl would be located. During that meeting, Quraishi was arrested and found to be in possession of exactly $250.
The charge of attempted sex trafficking of a child carries a mandatory minimum sentence of 10 years in prison and provides a maximum sentence of up to life in prison, a term of supervised release of at least five years and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
If you or someone you know may be impacted or experiencing commercial sex trafficking, please contact [email protected].
Acting U.S. Attorney Levy and HSI SAC Krol made the announcement today. Assistant U.S. Attorneys Brian A. Fogerty of the Office’s Civil Rights & Human Trafficking Unit and Lauren A. Graber of the Health Care Fraud Unit are prosecuting the case.
Teva Pharmaceuticals Agrees to Pay $425 Million to Resolve Kickback AllegationsRead the Press Release
BOSTON – Teva Pharmaceuticals USA, Inc. and Teva Neuroscience, Inc. (collectively Teva) have agreed to pay $425 million to resolve allegations that Teva paid kickbacks via two co-pay assistance foundations in violation of the Anti-Kickback Statute (AKS) and False Claims Act.
The government’s complaint, filed in 2020, alleged that from 2006 to 2017, Teva manipulated the co-pay foundation assistance system by conspiring with multiple third parties, including a specialty pharmacy and two allegedly independent co-pay assistance foundations, to direct its supposed charitable payments specifically to patients taking its own multiple sclerosis drug, Copaxone. At the same time, Teva steadily raised Copaxone’s price by thousands of dollars. The United States alleges that this conduct violated the AKS and caused the submission of false claims to Medicare. The settlement was reached after the government’s review of Teva’s financial disclosures concerning its financial condition.
This settlement is the latest in a string of enforcement actions against pharmaceutical companies that allegedly used third-party foundations as conduits to pay kickbacks. Since 2017, the United States Attorney’s Office in Massachusetts has collected over $1.4 billion from this enforcement initiative. The U.S. Attorney’s Office has also settled with four of the third-party foundations that participated in this conduct and a specialty pharmacy. Today’s resolution with Teva is the largest co-pay assistance settlement to date.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary is often required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The AKS prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
“For far too long, Teva gamed the charitable foundation process by paying kickbacks through two foundations, and with the aid of a specialty pharmacy. Those kickbacks undermined the purpose of the Medicare co-pay system and violated the Anti-Kickback Statute,” said Acting United States Attorney Joshua S. Levy. “This Office has taken the leading role in cracking down on these highly lucrative schemes that drive up the cost of essential drugs by bringing multiple enforcement actions that have returned more than $1 billion to the Medicare system. We will continue to pursue these actions to ensure that all pharmaceutical companies play by the rules and to protect the American taxpayers.
“Kickbacks designed to induce referrals or purchases of healthcare goods or services distort physician and patient decision-making, thwart competition and bypass controls put in place to protect federal health care programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing those who engage in kickback violations, including drug manufacturers, to ensure that federal health care programs continue to serve the interests of taxpayers and program beneficiaries.”
“Pharmaceutical companies that disguise kickbacks as charitable donations to subsidize co-pays for their own drugs undermine a critical safeguard against the excessive inflation of drug prices. The costs of these schemes are ultimately passed on to consumers and taxpayers,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “Such conduct cannot be tolerated within our health care system, and we will continue to vigorously pursue such allegations.”
“Today’s record-breaking settlement with Teva Pharmaceuticals is a victory for the public and highlights the FBI’s commitment to safeguarding the financial integrity of the Medicare program,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Pharmaceutical companies that look to bolster their drug prices by paying illegal kickbacks – whether directly or indirectly – undermine taxpayer funded healthcare programs and compromise patient care. The FBI will continue to pursue these investigations until pharmaceutical companies stop engaging in this conduct.”
Acting U.S. Attorney Levy, Principal Deputy AAG Boynton, HHS-OIG SAC Coviello and FBI SAC Cohen made the announcement today. The matter was handled by Assistant U.S. Attorney Abraham R. George, Chief of the Civil Division; Assistant U.S. Attorneys Diane Seol and Evan Panich of the U.S. Attorney’s Office for the District of Massachusetts; and Trial Attorneys Douglas Rosenthal and Nelson Wagner of the Justice Department’s Civil Division.
The civil action in Massachusetts is captioned United States v. Teva Pharmaceuticals USA, Inc., et al., No. 20-cv-11548 (D. Mass.).
Magellan Diagnostics Sentenced for Concealing Malfunction in Lead Testing DevicesRead the Press Release
BOSTON –Magellan Diagnostics, Inc., a medical device company headquartered in Billerica, Mass., was sentenced yesterday in federal court in Boston for criminal charges related to the concealment of a device malfunction that produced inaccurately low lead test results for tens of thousands of children and other patients.
Magellan has been ordered to pay a $21.8 million fine, $10.9 million in forfeiture and a minimum of $9.3 million to compensate patient victims. Magellan pleaded guilty to two counts of introducing a misbranded medical device into interstate commerce. Magellan was charged criminally on May 21, 2024
“Keeping the people of Massachusetts safe takes a variety of forms. In the case of Magellan Diagnostics, it means protecting children who may have been exposed to dangerous levels of lead that can lead to serious health consequences. This company has admitted that it left lead blood level monitoring devices in pediatricians’ offices that it knew were providing inaccurately low readings, putting thousands of kids at risk of not having their elevated lead levels accurately diagnosed. In addition to holding the company accountable, this criminal sentence requires the company to undertake an extensive effort to identify and compensate victims.”
“Medical device makers have an obligation to provide truthful information to protect patients. By deliberately concealing and consistently misleading consumers and the FDA about device malfunctions, Magellan acted with gross disregard for its responsibility to comply with FDA requirements and put patients at risk,” said Fernando McMillian, Special Agent in Charge, FDA Office of Criminal Investigations, New York Field Office. “We will continue to thoroughly investigate those whose actions undermine the integrity of the FDA regulatory process which exists to protect consumer health.”
“It’s absolutely appalling that Magellan Diagnostics was more concerned about its bottom line than it was about coming clean to their customers and the FDA about a serious malfunction in its lead testing devices that we believe unnecessarily endangered the health of incredibly vulnerable victims,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “When you’re not feeling well, and you’re trying to find out why, the last thing you should have to worry about is whether the diagnostic test you’re relying on lives up to its manufacturer’s claims. The FBI is grateful to see that the victims affected by Magellan’s actions in this case are one step closer to being compensated.”
“Magellan concealed a serious flaw in its lead testing devices while ignoring the well-being of patients and knowingly providing inaccurate results of lead levels in the blood,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “This type of egregious conduct, which only sought to benefit the corporate bottom line, can erode the public’s trust in our nation’s health care system. Today’s sentencing should send a clear message that any company engaging in such dangerous activity will be held accountable.”
Magellan’s LeadCare Ultra and LeadCare II devices detected lead levels and lead poisoning in the blood of children and adults using either venous (blood draws through the arm) or fingerstick samples. LeadCare II, which was predominantly used to test fingerstick samples, accounted for more than half of all blood lead tests conducted in the United States from 2013 through 2017. LeadCare Ultra was predominantly used to test venous samples.
According to court documents, Magellan failed to timely notify the FDA about a serious malfunction that caused the company’s LeadCare devices to produce inaccurate blood lead level results when used to test venous blood samples. Magellan also changed the user instructions for the LeadCare devices without prior FDA notice or approval.
Magellan first learned that a malfunction in its LeadCare Ultra device could cause inaccurate lead test results – specifically, lead test results that were falsely low – during the FDA clearance process in June 2013. Magellan, however, released LeadCare Ultra to the market in late 2013 without informing customers or the FDA of the malfunction. In August 2014, LeadCare Ultra customers independently discovered the malfunction and complained about inaccurate results. FDA regulations required the company to file a medical device report about the malfunction within 30 days, but Magellan did not do so.
In November 2014, Magellan sent a letter to its LeadCare Ultra customers advising them of the malfunction and recommending that they wait 24 hours before running their tests. This contradicted the instructions for use approved by the FDA. Magellan did not, however, report the malfunction to the FDA or advise the FDA of its change to the instructions until April 2015, nearly 21 months after Magellan discovered the malfunction and almost 8 months after customers discovered the malfunction on their own. In August 2015, Magellan changed the label instructions for the LeadCare Ultra device to require users to wait 24 hours before using the device to test blood samples, rather than testing the samples immediately. FDA regulations required the company to provide advance notice of the label change and file necessary reports of device correction, but Magellan did neither.
Magellan’s testing in 2013 also indicated that the same malfunction affected the LeadCare II device when it was used to test venous samples. Magellan, however, did not notify the FDA about the LeadCare II malfunction until November 2016.
The FDA ultimately found that the LeadCare devices could not accurately test venous samples, leading to a recall of all LeadCare devices using venous samples and a warning to the public not to use LeadCare Ultra, LeadCare II or LeadCare Plus for testing venous blood samples because of the malfunction and a recommendation that doctors retest certain patients.
According to the Centers for Disease Control and Prevention, there is no safe level of lead in the blood. Lead exposure may cause irreversible lifelong physical and mental health problems. Young children and pregnant women are most vulnerable to lead exposure, especially those from low-income households and those who live in housing built before 1978 because those homes are more likely to contain lead-based paint and have fixtures containing lead.
As part of the criminal resolution, Magellan has agreed to compensate patients who were demonstrably harmed for the economic damages they suffered as a result of the malfunction in Magellan’s blood lead testing devices. If you or a family member believe you received an inaccurate blood lead test result from a LeadCare device between 2013–2017, please complete the questionnaire located on the FBI’s website at www.fbi.gov/MagellanCaseInquiry. Information about the status of the case is located on the U.S. Attorney’s Office website: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/magellan-diagnostics-inc.
Acting U.S. Attorney Levy; FDA SAC McMillan; FBI SAC Cohen; and HHS-OIG SAC Coviello made the announcement today. Assistant U.S. Attorneys James Herbert, Kelly Lawrence and Leslie Wright of the Health Care Fraud Unit prosecuted the case.
Lynn Man Charged with Threatening an Elected OfficialRead the Press Release
BOSTON – A Lynn man was arrested and charged for allegedly making threats to an elected official.
Justin David Gaglio, 50, was charged by criminal complaint with one count of transmitting interstate threats. Gaglio was arrested on Sept. 27, 2024 made an initial appearance in federal court in Boston later that day. The defendant remains in federal custody following a detention hearing held on Sept. 30, 2024, as the Court took the matter of detention under advisement.
According to the charging document, beginning in or around January 2023, Gaglio began contacting the victim via online submissions through the victim’s website. Between January 2023 and September 2024, Gaglio allegedly submitted over 80 separate messages to the victim via the website – sometimes sending multiple messages within minutes of each other.
It is further alleged that, on or about Sept. 8, 2024, Gaglio submitted a contact request to the victim’s website in which he threatened to murder the victim and their family.
The charge of transmitting interstate threats carries a maximum penalty of five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the United States Capital Police, the Massachusetts State Police and the Lynn and Salem Police Departments. Assistant U.S. Attorney Alathea E. Porter of the National Security Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Sentenced to over 10 Years in Prison for Attempting to Purchase Sex with MinorRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for attempting to pay for sex with a 14-year-old girl.
Dimitri Shawn McKenzie, 29, was sentenced by U.S. Senior District Court Judge William G. Young to 126 months in prison, to be followed by five years of supervised release. In June 2024, McKenzie was convicted following a three-day jury trial of one count of attempted sex trafficking of a child.
“The sad reality is that children are being sold for sex in our communities because of people like Dimitri McKenzie. These men fuel that commercial sex industry and drive demand. We are actively prosecuting the men and women who traffic adults and kids for profit, but in order to make a real dent in this pernicious conduct, we also have to go after demand – that is the people who are trolling the internet purchasing sex with little kids. I hope that every coward behind a keyboard who is thinking about engaging in the rape of the child under the auspices of a commercial transaction thinks twice – you may very well be talking to an undercover federal agent. Don’t do it. If you do, you are looking at a minimum of ten years behind bars,” said Acting United States Attorney Joshua S. Levy.
“It is deeply disturbing to know that people pay to sexually abuse children. McKenzie was ready and willing to pay to sexually assault a child. Thankfully, through our undercover operation, he instead found an HSI special agent and not a real child,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England. “This sentence reflects the seriousness of his crime and our commitment to protecting children from exploitation and abuse.”
In November 2022, McKenzie responded to an online post purportedly advertising two minor girls – ages 12 and 14 years old – available to perform sex acts in exchange for money in the Boston area. The post was a fictitious advertisement by undercover law enforcement. In subsequent text communications with undercover law enforcement, McKenzie agreed to pay $100 to have sex with the fictitious 14-year-old at a hotel. Upon arriving at the hotel, McKenzie met with undercover law enforcement posing as the purported seller in the hotel parking lot, provided cash in exchange for 20 minutes with the fictitious minor and accepted a hotel room key. McKenzie was immediately taken into custody.
If you or someone you know may be impacted or experiencing commercial sex trafficking, please contact [email protected].
Acting U.S. Attorney Levy and HSI SAC Krol made the announcement today. Valuable assistance was provided by the Lexington, Waltham, Barnstable, Quincy and Cambridge Police Departments as well as the Massachusetts State Police and the Massachusetts Attorney General’s Office. Assistant U.S. Attorney Torey B. Cummings of the Civil Rights & Human Trafficking Unit and Assistant U.S. Attorney David G. Tobin of the Major Crimes Unit prosecuted the case.
Boston Man Charged in Elder Fraud Conspiracy That Defrauded Elderly Victim of over $400,000Read the Press Release
BOSTON – A South Boston man has been arrested and charged in connection with a scheme that defrauded a 75-year-old man from Berkshire County, Mass., of approximately $420,000.
Urvishkumar Vipulkumar Patel, 21, was charged with conspiracy to commit wire fraud. Patel was arrested on Oct. 7, 2024 and subsequently released by the Court on conditions including GPS monitoring and orders that he remain in Massachusetts.
According to the charging documents, in or around June 2024, the victim received a pop-up message on his computer claiming that his computer was frozen. The message contained a phone number, which the victim believed to be associated with Microsoft, and directed the victim to call for assistance. The victim then called the phone number listed in the pop-up and allegedly spoke with an individual before being transferred to another individual who called himself, “Sam Wilson.”
It is alleged that Wilson claimed to be a federal agent with the U.S. Treasury Department and purported to confirm the victim’s name and address. When the victim stated that was not the correct address, Wilson provided additional addresses until the victim identified his correct address. Wilson then allegedly told the victim that the victim’s name and address were listed as being involved in a money laundering scheme and that the “Treasury” showed a number of houses had been purchased in the United States and Russia in the victim’s name. Wilson allegedly told the victim that he was going to help him get out of this trouble and would speak to a judge but that, in the meantime, the victim needed to safeguard his money from being further implicated in the supposed money laundering scheme. Specifically, Wilson allegedly told the victim he should withdraw cash from his bank and send it to the Treasury Department, where it would be kept in a lock box until the victim was cleared of the scheme. Wilson also allegedly cautioned that the bank would not let the victim withdraw all of his money at once – directing the victim to make the withdrawals in smaller amounts and send it to Wilson at the “Treasury” in installments.
On approximately five separate occasions over the course of three months, the victim withdrew and provided approximately $420,000 in cash to several individuals he believed to be associated with “Sam Wilson.” On each occasion, Wilson asked the victim how much he could withdraw from his bank account, directed the victim to place the cash in a taped box with the victim’s own name and address written on it. Wilson also allegedly told the victim a specific date and time at which he would send a courier for the cash. On each occasion, the courier would pull alongside the curb in front of the victim’s house, lower one of the passenger side windows and provide a prearranged “PIN” passcode to the victim. The victim would then place the box of cash into the courier’s vehicle who would then drive away.
The victim’s sister reported this activity to law enforcement on Oct. 1, 2024. According to the charging documents, on Oct. 7, 2024, Patel served as the courier waiting outside of the victim’s home and was approached by an undercover officer posing as the victim. It is alleged that, after receiving the prearranged “PIN” passcode from Patel, the undercover officer placed the box into Patel’s vehicle and Patel quickly drove away. He was immediately apprehended.
At the time of his arrest, Patel was allegedly driving a rental car and was actively engaged in a WhatsApp call on his cell phone. Patel allegedly told law enforcement that he had been collecting packages for weeks at the direction of another individual in exchange for payment. Patel also allegedly told law enforcement that he would deliver each package to a prearranged location before receiving his payment.
The investigation remains ongoing. Members of the public who believe they are victims of a cybercrime – including elder fraud scams, cryptocurrency scams, romance scams, investment scams, and business email compromise fraud scams – should contact [email protected]. To report elder fraud, please visit the FBI’s IC3 Elder Fraud Complaint Center or contact the dedicated National Elder Fraud Hotline at 833–FRAUD–11 or 833–372–8311 Monday - Friday, 10a.m.- 6p.m. EST.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the North Adams Police Department and the Hampden County Sheriff’s Office. Assistant U.S. Attorney Kaitlin Brown of the Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Salvadorian Man Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Salvadoran man living in Somerville was sentenced today in federal court in Boston for unlawfully reentering the United States after deportation.
Tony Joel Salvador Umanzor, 36, was sentenced by U.S. District Court Judge Richard G. Stearns to eight months in prison. In June 2024, Salvador Umanzor pleaded guilty to one count of unlawful reentry of deported alien. In May 2024, Salvador Umanzor was indicted by a federal grand jury. He has been in federal custody since his initial appearance in federal court on May 9, 2024.
Salvador Umanzor was removed from the United States on Oct. 10, 2018 following a state conviction in 2013 for trafficking oxycodone, for which he was sentenced to five years and one day in prison. Sometime after his removal, Salvador Umanzor unlawfully reentered the United States, and was located in April 2024 following a state arrest for unrelated conduct.
Acting United States Attorney Joshua S. Levy; Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and Boston Police Commissioner Michael Cox made the announcement. Assistant U.S. Attorney Elianna J. Nuzum of the Major Crimes Unit prosecuted the case.
Massachusetts Business Owner Pleads Guilty to Million Dollar Tax Fraud SchemeRead the Press Release
BOSTON – A Hanson man pleaded guilty on Oct. 4, 2024 to a tax fraud scheme in which he willfully failed to pay employment taxes for his two businesses.
Kenneth Marston, 67, pleaded guilty to one count of failure to collect and pay over employment taxes. U.S. District Judge Indira Talwani scheduled sentencing for Jan. 3, 2025.
From 2015 through 2018, Marston owned and operated two businesses: Bowmar Steel Industries, Inc., which engaged in steel fabrication and Teleconstructors, Inc., which provided installation services on cellular phone towers. During that time, Marston falsely treated his employees as if they were independent contractors and, in turn, failed to withhold employment taxes on over $3.8 million in combined wages. As a result, Marston avoided reporting and paying $1 million in employment taxes owed to the Internal Revenue Service.
The charge of failure to pay over taxes provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit and Trial Attorney Mark McDonald of the Justice Department’s Tax Division are prosecuting the case.
Eighteen Individuals and Entities Charged in International Operation Targeting Widespread Fraud and Manipulation in the Cryptocurrency MarketsRead the Press Release
BOSTON – Eighteen individuals and entities have been charged for widespread fraud and manipulation in the cryptocurrency markets. Charges were unsealed in Boston against the leaders of four cryptocurrency companies, four cryptocurrency financial services firms (known as “market makers”) and employees at those firms.
Four defendants have pleaded guilty, another defendant has agreed to plead guilty, and authorities apprehended three other defendants in Texas, the United Kingdom and Portugal this week. More than $25 million in cryptocurrency has been seized and multiple trading bots responsible for millions of dollars’ worth of wash trades for approximately 60 different cryptocurrencies have been deactivated.
According to the charging documents, the defendants who created cryptocurrency companies made false statements about their cryptocurrencies (“tokens”) and executed sham trades in those tokens (“wash trades”) to create the appearance of trading activity that would make the tokens look like good investments. These deceptive tactics allegedly attracted new investors and purchasers, which resulted in an increase in the tokens’ trading prices. The defendants are then alleged to have sold their tokens at the artificially inflated prices, a fraud commonly known as a “pump and dump.” The largest of these cryptocurrency companies, Saitama, at one point had a multi-billion-dollar market value.
The cryptocurrency companies also allegedly hired financial services firms ( “market makers”) to wash trade their tokens in exchange for payment. As one market maker defendant, who has agreed to plead guilty, described the practice to a prospective client: the “objective on the secondary markets” is to find “other buyers from the community, people you don’t know about or don’t care about” because “we have to make [the other buyers] lose money in order to make profit.”
Three market makers—ZM Quant, CLS Global and MyTrade—along with their employees are charged with allegedly wash trading and/or conspiring to wash trade on behalf of NexFundAI, a cryptocurrency company and token created at the direction of law enforcement as part of the government’s investigation. A fourth market maker, Gotbit, its CEO, and two of its directors are also charged for perpetrating a similar scheme.
Specifics regarding the defendants and conduct are detailed in Attachment A below.
“This investigation, the first of its kind, identified numerous fraudsters in the cryptocurrency industry. Wash trading has long been outlawed in the financial markets, and cryptocurrency is no exception. These are cases where an innovative technology – cryptocurrency – met a century old scheme – the pump and dump. The message today is, if you make false statements to trick investors, that’s fraud. Period. Our Office will aggressively pursue fraud, including in the cryptocurrency industry,” said Acting United States Attorney Joshua Levy. “These charges are also a stark reminder of how vigilant online investors must be and that doing your homework before diving into the digital frontier is critical. People considering making investments in the cryptocurrency industry should understand how these scams work so that they can protect themselves.”
“What the FBI uncovered in this case is essentially a new twist to old-school financial crime. ‘Operation Token Mirrors’ targeted nefarious token developers, promoters, and market makers in the crypto space. What we uncovered has resulted in charges against the leadership of four cryptocurrency companies, and four crypto ‘market makers’ and their employees who are accused of spearheading a sophisticated trading scheme that allegedly bilked honest investors out of millions of dollars,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI took the unprecedented step of creating its very own cryptocurrency token and company to identify, disrupt, and bring these alleged fraudsters to justice.”
If you bought or sold any of the tokens referenced below, please fill out this form.
The Securities & Exchange Commission has filed civil complaints alleging violations of the securities laws in relation to the conduct at Gotbit, CLS, ZM Quant, Saitama and Robo Inu. Valuable assistance was provided by the Federal Bureau of Investigation’s Legal Attachés (Madrid and London), Portugal’s Policia Judiciaria European Network of Fugitive Active Search Team (ENFAST), the United Kingdom’s National Crime Agency’s National Extradition Unit, the Internal Revenue Service Criminal Investigation, Boston Field Office and the Criminal Division’s Computer Crime and Intellectual Property Section, National Cryptocurrency Enforcement Team.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorneys Christopher J. Markham and David M. Holcomb of the Securities, Financial & Cyber Fraud Unit are prosecuting the cases.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
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ATTACHMENT A
The following individuals and entities have been charged in U.S. District Court in Boston, Mass.:
Aleksei Andriunin, Fedor Kedrov, Qawi Jalili, Gotbit Consulting LLC (Gotbit) – According to court documents, Gotbit was a well-known “market maker” in the cryptocurrency industry. Aleksei Andriunin, 26, of Russia and Portugal, was Gotbit’s Chief Executive Officer and Founder. Andriunin was arrested on Oct. 8, 2024 in Portugal and awaits extradition. Fedor Kedrov, of Russia, was Gotbit’s Director of Market Making. Qawi Jalili, of Russia was Gotbit’s Director of Sales. Gotbit, Kedrov and Jalili are each charged with wire fraud and conspiracy to commit market manipulation and wire fraud. Andriunin is also charged in a separate criminal complaint with wire fraud, conspiracy to commit market manipulation and wire fraud and conspiracy to commit money laundering.
It is alleged that between 2018 and 2024, Gotbit provided market manipulation and wash trading services to several cryptocurrency companies, including companies located in the United States. Gotbit allegedly made wash trades worth millions of dollars on behalf of clients and received tens of millions of dollars in proceeds for these illicit services. In a 2019 interview published online, Andriunin allegedly described how he developed a code to wash trade and artificially inflate cryptocurrency trading volume. Andriunin allegedly kept track of Gotbit’s market manipulation, including with spreadsheets that compared “Created Volume” from wash trades with naturally occurring “Market Volume.” Gotbit’s employees, including Jalili and Kedrov, allegedly described these wash trading tactics to prospective clients and how to avoid detection. Jalili and Kedrov also allegedly provided these services to multiple cryptocurrencies, including the Saitama and Robo Inu cryptocurrencies.
Riqui Liu, Baijun Ou, ZM Quant Investment LTD (ZM Quant) – ZM Quant was a “market maker” in the cryptocurrency industry that allegedly advertised illicit market manipulation services to clients. Riqui Liu, 26, of the United Kingdom and Hong Kong, was an employee of ZM Quant. Baijun Ou, 32, of Hong Kong, was also an employee of ZM Quant. ZM Quant, Liu and Ou are each charged in a superseding indictment with wire fraud and conspiracy to commit market manipulation and wire fraud.
According to court documents, ZM Quant allegedly advertised a “trading bot” that could “create volume.” ZM Quant employees allegedly discussed these illicit services with clients through Telegram messages and during video teleconferences. For example, as alleged in the charging documents, during a video teleconference in March 2024, Liu and Ou described how ZM Quant would trade “maybe ten times per minute or twenty times a minute” to “increase the trading volume” and “pump the price.” Liu and Ou also described how ZM Quant allegedly used multiple trading wallets to avoid having the trading look “fake.” It is further alleged that ZM Quant provided market manipulation services for multiple cryptocurrency companies, including Saitama and NexFundAI.
Andrey Zhorzhes, CLS Global FZC, LLC (CLS) – CLS was a “market maker” in the cryptocurrency industry that allegedly advertised illicit market manipulation services to its clients. Andrey Zhorzhes, of the United Arab Emirates, was an employee of CLS. Both CLS and Zhorzhes are charged in an indictment with wire fraud and conspiracy to commit market manipulation and wire fraud.
It is alleged that Zhorzhes described to a prospective client how CLS’s algorithm generated trading volume on multiple cryptocurrency exchanges, as follows:
- “We have an algorithm that . . . basically does self-trades, buying and selling.”
- “The idea of volume generation is . . . so the token looks organic and looks live and people get interested in trading it.”
- “It’s very hard to track. . ..We’ve been doing that for many clients.”
- “I know that it’s wash trading and I know people might not be happy about it.”
Zhorzhes and other CLS traders allegedly provided these market manipulation services for NexFundAI.
Liu Zhou, MyTrade MM – MyTrade MM was another “market maker” in the cryptocurrency industry that advertised illicit market manipulation services to its clients, including “pump and dump” consulting services and “wash trades” facilitated by “bots.” Liu Zhou, 39, of China and Canada, was the founder of MyTrade MM. Zhou is charged and has agreed to plead guilty to conspiracy to commit market manipulation and wire fraud.
MyTrade MM’s clients had access to a dashboard on MyTrade MM’s website through which clients specified the desired amount of daily wash trades on identified cryptocurrency exchanges. MyTrade MM’s dashboard described the service as “Volume Support” and allowed for millions in wash trades per day for each client cryptocurrency, for example:
In conversations with purported promoters of NexFundAI, Zhou allegedly described MyTrade MM as superior to “CLS” and “Gotbit” because those market makers “keep clients in the dark” and “control the pump and dump,” which means “they can do inside trading easily.” Zhou allegedly also described the various purposes for wash trading, including showing “continuous trading activity every hour”; generating large enough trading volumes for cryptocurrency exchanges to waive listing fees; and executing “pump and dumps.” According to court documents, Zhou further described that the “objective on the secondary markets” was to find “other buyers from the community, people you don’t know about or don’t care about” because “we have to make [the other buyers] lose money in order to make profit.”
Manpreet Kohli, Haroon Mohsini, Nam Tran, Max Hernandez, Russell Armand, Vy Pham, Saitama LLC (Saitama) – Saitama was a cryptocurrency company, originally incorporated in Massachusetts in August 2021.
Manpreet Kohli, 43, of the United Kingdom, was the CEO of Saitama. Kohli was arrested in the United Kingdom on Oct. 7, 2024 and is awaiting extradition. Haroon Mohsini, 37, of Texas, also worked at Saitama. Mohsini was arrested on Oct. 7, 2024 in the Southern District of Texas. Nam Tran, 32, of Vietnam, worked at Saitama and is currently in Vietnam. Kohli, Mohsini and Tran are each charged in a superseding indictment with wire fraud, market manipulation, and conspiracy to commit wire fraud, commit market manipulation and conduct an unlicensed money transmitting business. Max Hernandez, 36, of Massachusetts, and Russell Armand, 42, of Texas, also worked at Saitama and are charged separately and have both pleaded guilty to market manipulation and conspiracy to commit wire fraud and to operate an unlicensed money transmitting business. Vy Pham, 32, of California, is also charged for conduct at a different cryptocurrency company but, as part of that guilty plea, admitted to certain conduct involving Saitama.
Saitama allegedly purported to create a series of products that could be used with its token and, at its peak, boasted a market value of $7.5 billion. Saitama’s leadership allegedly made a variety of false public statements, including that Saitama’s business plan had been reviewed by regulators, that its leadership was not selling the Saitama tokens they owned and that the Saitama token was coded in a way that prevented market manipulation. According to charging documents, in reality Saitama’s leadership was actively manipulating the market for the Saitama token and secretly selling their Saitama tokens for tens of millions in profits.
Saitama’s market manipulation campaign allegedly began in or about July 2021, when leadership coordinated a series of small purchases spread across multiple cryptocurrency wallets. These trades were coordinated on Telegram, where Armand allegedly explained that the goal was to “create an illusion of massive buys and new holders” to “incite ppl [people] to buy
more...W[e] want list of small buys to look like it’s mor[e] buyers. That’s the idea.” Saitama’s leadership allegedly confirmed their purchases to one another, discussed how they were successfully getting others to purchase the Saitama cryptocurrency and exchanged “pump it” memes and GIFs:Thereafter, the Saitama leadership allegedly paid several market makers to wash trade the Saitama cryptocurrency on cryptocurrency exchanges, including BitMart, LBank and XT.com. The market makers that Saitama paid allegedly included ZM Quant and Gotbit.
Robo Inu Finance (Robo Inu) – Robo Inu was a cryptocurrency company and token that Vy Pham created after she left Saitama in 2021. Pham has been charged and agreed to plead guilty to conspiracy to commit market manipulation, to commit wire fraud and to operate an unlicensed money transmitting business. Pham founded and promoted Robo Inu from the United States. Like Saitama, Robo Inu allegedly purported to create a series of products that could be used with its cryptocurrency. Beginning in or about 2022, Robo Inu allegedly paid Gotbit to artificially inflate the trading volume of the Robo Inu token through wash trades on cryptocurrency exchanges such as Bitmart.
Michael Thompson, VZZN – VZZN was a cryptocurrency company and token that Armand created after he left Saitama in 2023. Michael Thompson, 50, of Virginia, also worked at VZZN. As with Armand, Thompson is charged and pleaded guilty to conspiracy to commit market manipulation. VZZN allegedly purported to be a video streaming service that could be used with the VZZN token. While promoting that service, Armand and Thompson allegedly also made misleading public statements about VZZN and artificially inflated the trading volume of the VZZN token through wash trades.
Bradley Beatty, Lillian Finance LLC (Lillian Finance) - Lillian Finance was a cryptocurrency company and token founded by Bradley Beatty, 48, of Florida. Beatty is charged in an indictment with wire fraud. Lillian Finance allegedly purported to use blockchain technology in the healthcare industry and to use a portion of proceeds generated from token sales for charitable purposes. Beatty allegedly made a series of false statements about Lillian Finance to attract investors, for example, that he was a defense contractor and that he had addressed Congress on the topic of cryptocurrency. Thereafter, it is alleged that Beatty generated hundreds of thousands of dollars in proceeds from retail sales of the Lillian Finance token and misappropriated a portion of Lillian Finance’s profits that were supposed to be used for charity.
The charge of market manipulation provides for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to $5 million or twice the gross gain or loss from the offense and forfeiture. The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000 or twice the gross gain or loss from the offense, restitution and forfeiture. The charge of conspiracy to commit wire fraud, market manipulation and/or to conduct an unlicensed money transmitting business provides for a sentence of up to five years in prison, up to three years of supervised release, a fine of up to $250,000 to twice the gross gain or loss from the offense, restitution and forfeiture. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $500,000, or twice the value of the criminally derived property, whichever is greater, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
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Acton Man Convicted of Child Pornography OffensesRead the Press Release
BOSTON – Acton man was convicted today following a 2-day trial in federal court in Boston of possession and receipt of child pornography and sexual exploitation of children.
Patrick Baxter, 44, was convicted of one count of possession of child pornography, one count of receipt of child pornography, one count of sexual exploitation of children. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Jan. 8, 2024. Baxter was previously arrested and charged in December 2022.
“It is difficult to find the words to capture how abhorrent the defendant’s conduct was, and today a jury agreed. This man exploited a 7-year old victim for his own perverted gratification and thought he could get away with it by hiding behind an encrypted device. Thanks to the excellent work of the investigators in this case, the encryption was cracked and this defendant was brought to justice,” said Acting United States Attorney Joshua S. Levy. “There is no higher priority in this office than protecting children from sexual exploitation, especially at the hands of trusted adults. Mr. Baxter will have many years in prison to reflect on the harm he has inflicted and any other individual tempted to sexually exploit minors should take notice that you will be held accountable.”
“Today, Patrick Baxter was convicted of amassing hundreds of images of young children suffering horrific sexual abuse. These videos represent unimaginable pain forced upon utterly vulnerable victims, and we’re grateful for the jury’s swift verdict,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Know that the men and women on FBI Boston’s Child Exploitation – Human Trafficking Task Force will never stop looking for, and locking up, those involved in the sexual exploitation of children.”
Baxter downloaded child sexual abuse material (CSAM) from the internet on at least three occasions in June and July 2021. A computer hard drive seized during a search of Baxter’s residence was found to contain approximately 427 video files depicting CSAM featuring prepubescent and pubescent minors engaged in various types of sexual acts and the lascivious display of their genitals.
The charge of receipt of child pornography provides for a maximum sentence of 20 years in prison with a five-year mandatory minimum sentence, a $250,000 fine and a maximum of life with a mandatory minimum of five years of supervised release. The charge of possession of child pornography provides for a sentence of up to 10 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of sexual exploitation of children provides for a sentence of up to 30 years in prison, at least 15 years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Valuable assistance was provided by the Melrose Police Department and the Royal Canadian Mounted Police. Assistant U.S. Attorneys David G. Tobin and Jessica L. Soto of the Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to 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/.
Three Lawrence Men Arrested on Drug ChargesRead the Press Release
BOSTON – Three Lawrence men have been arrested for conspiracy to distribute and possess with intent to distribute drugs.
Ronald Odelyn Tejeda, 38; Erick Pimentel-Cabrera, 27; and Carlos M. Rodriguez, 36, have been charged with conspiracy to distribute and to possess with intent to distribute controlled substances. Pimentel-Cabrera and Rodriguez had their initial appearances in federal court in Boston today; Tejeda will appear at a later date.
According to the charging documents, after investigators became aware that Tejeda was selling fentanyl pills in the Lawrence area, several controlled purchases were conducted in August 2024 and September 2024 that resulted in seizures totaling over 5,000 pills. In September 2027, Tejeda and Pimentel-Cabrera were observed engaging in suspected drug activity the home where both Pimentel-Cabrera and Rodriguez live. During an October 2024 search of the residence, approximately four pounds of suspected crystal methamphetamine, approximately 30,000 pressed pills suspected to contain fentanyl, approximately 5,000 pressed pills suspected to contain methamphetamine, various amounts of suspected powder fentanyl, pill presses, three firearms and United States currency were seized.
The charge of conspiracy to distribute and to possess with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, three years to life of supervised release and a fine of up to $1 million dollars. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Acting Special Agent in Charge Stephen P. Belleau, Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance was provided by Homeland Security Investigations and by the Lawrence Police Department. Assistant U.S. Attorney Annapurna Balakrishna of the Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pharmaceutical Executive Pleads Guilty to Insider TradingRead the Press Release
BOSTON – A former executive of a global pharmaceutical company pleaded guilty today in federal in Boston to earning more than $250,000 by trading on material non-public information.
Dishant Gupta, 40, of Hillsborough, N.J., pleaded guilty to one count of securities fraud. U.S. District Court Judge Julia E. Kobick scheduled sentencing for Jan. 9, 2025. Gupta was charged by Information in September 2024.
Gupta worked as the Director of Strategy and Operations in the Boston office of a global pharmaceutical company (Company A). In the spring of 2022, during the course of his employment at Company A, Gupta learned that Company A was negotiating to acquire certain assets of a smaller pharmaceutical company based in Boston (Company B), including its leading cancer drug, and that Company A later agreed to acquire Company B outright.
While in possession of this material non-public information, and in violation of his fiduciary duties to Company A, Gupta acquired shares of Company B in his own and his wife’s brokerage accounts – in an effort to profit from the eventual public announcement of the transaction. Gupta purchased more than 300,000 shares of Company B over approximately two and a half months. Gupta then sold all the shares he had acquired after Company A announced the acquisition of Company B, earning more than $250,000.
The charge of securities fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Securities and Exchange Commission filed a civil complaint against Gupta alleging violations of the securities laws.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division made the announcement. Assistant U.S. Attorney Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Former Bank Loan Officer Sentenced for Defrauding Federal Credit UnionRead the Press Release
BOSTON – A Boston woman was sentenced on Oct. 4, 2024 for conspiring to defraud the federal credit union where she worked as a loan officer by obtaining loans in the names of inmates at a Massachusetts prison where a co-conspirator was incarcerated.
Nadaje Hendrix, 27, of Brighton, was sentenced by U.S. District Judge Julia E. Kobick to eight months in prison to be followed by three years’ supervised release. Hendrix was also ordered to pay restitution in the amount of $134,000. In July 2024, Hendrix pleaded guilty to one count of conspiracy to commit bank fraud. In January 2024, Hendrix was indicted by a federal grand jury along with alleged co-conspirator Glenroy Miller
Between December 2019 and August 2021, Hendrix and, allegedly, Miller agreed to defraud the credit union where Hendrix worked as a loan officer and assistant branch manager, by obtaining loans in the names of other individuals, including inmates at a Massachusetts prison where Miller was incarcerated. While in prison, Miller allegedly gave Hendrix information about fellow inmates for Hendrix to use in creating fraudulent loan applications, and then arranged to have other co-conspirators go into the credit union to pretend to be the inmates, sign loan forms and obtain loans from the credit union through Hendrix. The scheme also involved obtaining loans in the names of individuals whose identities were stolen. In total, Hendrix and, allegedly, Miller stole about $134,000 from the credit union in about two months in 2021.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mother and Son Sentenced for Drug Trafficking ConspiracyRead the Press Release
BOSTON – A mother and son were sentenced in federal court in Boston for participating in a North Shore-based drug trafficking organization (DTO) that allegedly distributed tens of thousands of counterfeit prescription pills containing fentanyl and methamphetamine.
Javier Bello, a/k/a “Javi,” 29, of Beverly, Mass. was sentenced by U.S. District Court Chief Judge Dennis F. Saylor IV to 180 months in prison followed by five years of supervised release. In May 2024 Bello pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute more than 400 grams of fentanyl and one count of possession with intent to distribute more than 40 grams of a mixture or substance containing a detectable amount of fentanyl.
Bello’s mother, Chevon Dorce, 45, of Lynn, Mass. was sentenced by U.S. District Court Chief Judge Dennis F. Saylor IV to 23 months in prison followed by three years of supervised release. In July 2024, Dorce pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute controlled substances.
According to court documents, the DTO distributed counterfeit oxycodone pills containing fentanyl and counterfeit Adderall pills containing methamphetamine, among other things, to various individuals in the Lynn area. Bello directed a number of individuals to acquire, distribute and store controlled substances on his behalf.
Based on intercepted communications and simultaneous surveillance, it was determined that Bello distributed approximately 1,000 fentanyl pills to Ortiz, which were seized. Subsequent forensic analysis determined that 1,008 counterfeit oxycodone pills contained fentanyl and that the seized pills weighed approximately 135.5 grams.
Bello used his mother’s residence as a stash location. On Oct. 25, 2022, during a search of Dorce’s residence,2.5 kilograms of fentanyl, 22 grams of cocaine, a firearm concealed in a piece of furniture and an inoperable pill press, were recovered.
Bello also used Isaac Clayton’s residence as a second stash location. On Oct. 25, 2022, during a search of Clayton’s residence, various quantities of marijuana, cocaine base and fentanyl, as well as three loaded firearms, additional rounds of ammunition, $2,640 in drug proceeds and materials used to package and distribute controlled substances were recovered. Kion Shepherd also stored controlled substances on Bello’s behalf. On Oct. 25, 2022, during a search of Kion Shepherd’s mother’s home, a backpack containing several hundred grams of fentanyl and cocaine as well as a handgun with an obliterated serial number were recovered. Additionally, Erick Solis Lopez stored and distributed drugs on Bello’s behalf. On Oct. 28, 2022, during a search of Solis’s home more than 2,300 fentanyl pills and more than 100 grams of powder fentanyl from a Subaru Outback registered to Solis and parked at Solis’s residence.
Bello and a co-conspirator, Melvin Nieves, were arrested at Logan Airport as they boarded a flight to California with the intent of purchasing marijuana. At the time of their arrests, Bello and Nieves were in possession of a combined total of $70,000 in United States currency.
Ortiz pleaded guilty in June 2024 and was sentenced to 28 months in prison and three years of supervised release in September 2024; Clayton pleaded guilty in February 2024 and was sentenced to two months in prison to be followed by three years of supervised release, with the first six months to be served in home confinement August 2024;Shepherd pleaded guilty in April 2024 and was sentenced to 70 months in prison in July 2024; Solis pleaded guilty in October 2023 and was sentenced to 62 months in prison in January 2024;Nieves pleaded guilty in October 2023 and was sentenced to 27 months in prison in January 2024.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Geoffrey Noble, Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Beverly, Everett, Peabody, Revere, Salem, Saugus and Swampscott Police Departments. Assistant U.S. Attorney Evan D. Panich of the Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Connecticut Real Estate Agent Sentenced to Prison for Defrauding Clients in Long Running Short Sale Fraud SchemeRead the Press Release
BOSTON – A real estate agent was sentenced today in federal court in Boston in connection with a multi-year scheme to defraud his clients by engaging in fraudulent short sales of government and bank-owned properties to straw buyers acting at the direction of the defendant and a co-conspirator.
Sheldon Haag, 34, of Glastonbury, Conn. was sentenced by U.S. District Court Judge Leo T. Sorokin to one year and one day in prison and two years of supervised release. Haag was also ordered to forfeit $277,331 and to pay restitution in an amount to be determined at a later date. In June2023, Haag pleaded guilty to one count of conspiracy to commit wire fraud.
Haag and another real estate agent, James Macchio, used straw buyers to acquire properties owned by the clients of a brokerage where they worked, which included banks, federal agencies, bankruptcy trustees and other mortgage holders. The straw buyers included a shell company set up by a co-conspirator as a purported construction company. Haag and his co-conspirators hid their involvement as the de facto buyers of short sale properties from their clients, the owners of the properties, and used their inside knowledge as the owner’s broker to minimize sale prices in order to maximize their gain from later “flipping” the properties.
While perpetrating the “flipping scheme,” Haag and his co-conspirators further defrauded clients by submitting fraudulent renovation bids from contractors to their own clients, including from the fake construction company they controlled through a co-conspirator. Once their clients accepted a fraudulent bid, Haag and his co-conspirators would hire different contractors at much lower cost and pocket the difference between the fraudulent bid and the actual cost of property repairs.
Macchio pleaded guilty in May 2024 and is scheduled to be sentenced on Nov. 19, 2024.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office made the announcement today. The United States Department of Housing and Urban Development provided valuable assistance. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Chicopee Man Convicted of Cocaine TraffickingRead the Press Release
BOSTON – A member of a large-scale criminal enterprise has been convicted after a four-day trial for distributing large amounts of cocaine throughout Eastern and Western Massachusetts.
Vicente Gonzalez, 51, of Chicopee, was convicted on Oct. 3, 2024 of one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine and one count of possession with intent to distribute 500 grams or more of cocaine. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 8, 2025. Gonzalez was indicted along with 12 co-defendants in December 2019.
As part of the cocaine-trafficking conspiracy, Vicente Gonzalez received multiple kilograms of cocaine through the U.S. mail from Puerto Rico. He received those cocaine packages at his home and from another address in West Springfield. Gonzalez agreed to distribute this cocaine to his co-conspirators based in both the Chicopee/Springfield area and New Bedford. On July 29, 2019, during a search of Gonzalez’s residence, two kilograms of cocaine worth approximately $60,000 were seized from the basement, directly underneath a laundry chute leading from Gonzalez’s laundry room.
The charge of conspiracy to possess with intent to distribute 500 grams or more of cocaine, as well as the charge of possession with intent to distribute 500 grams or more of cocaine, each provide for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; and New Bedford Police Chief Paul Oliveira made the announcement. Valuable assistance was provided by the Massachusetts State Police and the Chicopee and Holyoke Police Departments. Assistant U.S. Attorneys Stephen Hassink and Nathaniel Yeager of the Narcotics and Money Laundering Unit are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
U.S. Attorney Reminds Rest Homes About ADA Compliance Requirements for Patients with DisabilitiesRead the Press Release
BOSTON – The U.S. Attorney’s Office has issued a reminder to rest homes in Massachusetts about their obligations under the Americans with Disabilities Act (ADA) with respect to discrimination against persons with disabilities including opioid disorder and mobility restrictions.
Rest homes are residential care facilities that provide 24-hour supervision and supportive services, such as meals, activities, housekeeping and administration of medications to residents. These facilities provide an option for older adults and persons with disabilities in Massachusetts to receive supportive care in a community setting. There are approximately 60 facilities licensed as rest homes in Massachusetts.
Under the ADA, rest homes cannot refuse to admit persons with opioid use disorder (OUD) because they take medications to treat their OUD, such as buprenorphine (Suboxone) and methadone. To ensure compliance with the nondiscrimination provisions of the ADA, facilities must evaluate each applicant individually to determine suitability for admission, rather than enacting a blanket policy denying admissions to all persons treated with medications for OUD. Also under the ADA, rest homes must not deny admission to people with disabilities who use mobility aids such as walkers, crutches and canes, or manual or power wheelchairs or scooters, unless a particular type of device cannot be accommodated because of a legitimate safety requirement.
“It is against the law to deny someone admission to a facility based on the fact that they require mobility aids or are receiving treatment for opioid use disorder,” said Acting U.S. Attorney Levy. “These patients have the same rights as anyone else to seek out the appropriate residential setting to meet their needs. Nobody should be refused admission to a rest home simply because they are disabled.”
Since 2018, the Civil Rights Unit for the U.S. Attorney’s Office has entered into 10 settlement agreements with Massachusetts entities that operate skilled nursing facilities for refusing to admit individuals prescribed medications for OUD. The U.S. Attorney’s Office will continue to pursue similar enforcement actions against rest homes and other residential facilities in Massachusetts that fail to follow the law. Courts may impose civil penalties for ADA violations, which could be as high as $92,383 for a first violation, and potentially double that amount for subsequent violations.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
North Andover Man Charged with Possessing over 30 Firearms and Explosives as a Convicted FelonRead the Press Release
BOSTON – A North Andover, Mass. man has been charged for allegedly possessing over 30 firearms and explosives as a convicted felon.
Daniel Medina, 64, was charged by criminal complaint with unlawful possession of a machine gun, unlawful possession of explosives, and as a felon in possession of firearms and ammunition. Medina is currently in state custody on related charges and will appear in federal court in Boston at a later date.
According to the charging documents, on July 1, 2024, law enforcement was dispatched to the area of Medina’s North Andover residence after receiving a report of an explosion. Upon arrival, damage to two vehicles was observed as well as a piece of mail addressed to Medina beneath the damaged rear passenger door of one vehicle. It is alleged that the damages to the vehicles and materials left behind were consistent with common items used in manufacturing homemade explosive devices, specifically ball bearings or shrapnel. It is further alleged that witnesses observed Medina running from the damaged vehicles toward his residence following the explosion.
According to the charging documents, during a search of Medina’s residence the following day, law enforcement located and seized the following items:
- 32 firearms, including 12 rifles, 15 pistols, three shotguns and two antique firearms;
- 9,000 rounds of various calibers of modern ammunition manufactured outside of Massachusetts;
- 75 magazines for various caliber firearms;
- Various firearm parts;
- A Glock switch device;
- Books pertaining to the building of firearms and manufacturing of explosives and drugs;
- Shrapnel accessories such as BB’s and ball bearings;
- Multiple firework containers; and
- Various containers of powders produced and shipped in interstate commerce.
It is alleged that the containers of powder were found to contain potassium chlorate and aluminum powder – the same flash powder found in the suspected explosive material used for the prior day’s explosion.
Medina is prohibited from possessing firearms, ammunition and explosive material due to a 2002 state conviction of assault and battery in Lawrence District Court, for which he was sentenced to two and a half years in jail.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of up to $250,000. The charge of illegal possession of a machine gun provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of illegal possession of an explosive material provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the North Andover Police Department, Massachusetts State Police and the Essex County District Attorney’s Office. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New York Man Pleads Guilty to Role in International Money Laundering ConspiracyRead the Press Release
BOSTON – A New York man pleaded guilty yesterday to his involvement in a sophisticated international money laundering and drug trafficking organization.
Yanbing Chen, 30, of Brooklyn, N.Y., pleaded guilty to conspiracy to commit money laundering and conspiracy to distribute five kilograms or more of cocaine. U.S. District Judge Angel Kelley scheduled sentencing for Jan. 21, 2025.
In May 2023, a federal grand jury in Boston returned a superseding indictment charging 12 individuals from Massachusetts, Rhode Island, New York and California for their alleged involvement in a sophisticated international money laundering and drug trafficking organization. Jin Hua Zhang, based in Staten Island, was identified as the leader of the organization along with a number of his criminal associates. The investigation revealed that, for a fee, Zhang laundered bulk cash for drug dealers and laundered profits from other illegal businesses. In less than one year, Zhang and his organization laundered at least $25 million worth of drug proceeds and funds from other illegal businesses through undercover agents.
In July 2022, on Zhang’s behalf, Chen delivered $50,000 in drug funds to undercover agents to be laundered. Those funds were converted to Tether, a type of cryptocurrency, and transferred to Zhang, the organization’s leader, minus a fee. Funds were eventually traced from the Zhang organization to Hong Kong and elsewhere in China, India, Cambodia and Brazil, among other locations. Cash and cryptocurrency in accounts tied to Zhang were seized at the conclusion of the investigation.
In addition, in two separate meetings in August and September 2022, Zhang sent Chen to meet with cooperating witnesses near South Station in Boston. Chen was recorded by the undercover agents as he delivered a total of five kilograms of cocaine at Zhang’s direction.
Zhang pleaded guilty and is scheduled to be sentenced on Jan. 15, 2024.
The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. The charge of conspiracy to distribute five kilograms of cocaine calls for a sentence of up to life in prison, a minimum of five years of supervised release, and a $10 million fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was also provided by the Quincy Police Department. Assistant U.S. Attorneys Christopher Pohl, Brian A. Fogerty and Meghan C. Cleary of the Criminal Division are prosecuting the case.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty
Member of Violent Gang Pleads Guilty to Racketeering and Drug Trafficking OffensesRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday to his role in Cameron Street, a violent Boston gang.
Charod Taylor, a/k/a “Pachino,” 35, of Boston, pleaded guilty to conspiracy to participate in a racketeering enterprise (commonly referred to as RICO conspiracy) and conspiracy to distribute cocaine. U.S. Senior District Court Judge William G. Young scheduled sentencing for Jan. 15, 2025.
Taylor was identified as a member of Cameron Street, a violent gang based largely in the Dorchester section of Boston that uses violence and threats of violence to preserve, protect and expand its territory, promote a climate of fear and enhance its reputation. Cameron Street gang ran an open-air drug market in the parking lot of a business on in Dorchester in which Taylor and several other Cameron Street members participated in controlled purchases of cocaine and cocaine base (crack cocaine) to cooperating witnesses. From February 2021 to March 2022, Taylor worked with other Cameron Street members and associates to distribute crack and powder cocaine to cooperating witnesses seven times.
According to the charging documents, Cameron Street members possess, carry and use firearms to murder and assault gang rivals as well as protect narcotics and drug proceeds. Cameron Street members post videos or use social media applications to promote Cameron Street, celebrate murders and other violent crimes committed by the gang, and denigrate rivals, in particular NOB (for Norton, Onley, and Barry Streets), known more generally as Wendover. Cameron Street members also possess, carry, and use firearms to murder and assault gang rivals as well as protect narcotics and drug proceeds. Additionally, Cameron Street members distribute controlled substances and firearms, commit armed robberies, and engage in human trafficking in part to generate income for the Cameron Street enterprise.
The charge of RICO conspiracy and conspiracy to interfere with commerce by force or violence each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to distribute cocaine provide for a sentence of up to 20 years in prison, at least three years of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Feld Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; the United States Postal Inspection Service; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher J. Pohl and Charles Dell’Anno of the Criminal Division are prosecuting the case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Guatemalan Man Sentenced to More Than One Year in Prison for Unlawful ReentryRead the Press Release
BOSTON – A Guatemalan man was sentenced yesterday in federal court in Boston to unlawful reentry.
Wilson Hernandez-Bautista, 34, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 21 months in prison. In June 2024, Hernandez-Bautista pleaded guilty to one count of unlawful reentry of a deported alien. Hernandez-Bautista was indicted by a federal grand jury December 2023.
Hernandez-Bautista was deported from the United States on Oct. 9, 2013. Sometime after his 2013 removal, Hernandez-Bautista unlawfully reentered the United States. In On Nov. 23, 2024, Hernandez-Bautista was convicted of rape of child with force in Essex County Superior Court. While serving a five-to-seven year sentence, immigration authorities became aware of Hernandez-Bautista’s unlawful presence in the United States.
Acting United States Attorney Joshua S. Levy and Todd Lyons, Field Office Director for U.S. Customs and Border Protection, Boston Field Office made the announcement today. Valuable assistance was provided by Massachusetts Department of Corrections. Assistant U.S. Attorney Brian J. Sullivan of the Major Crimes Unit prosecuted the case.
California Man Arrested for Threatening Massachusetts CompaniesRead the Press Release
BOSTON – A California man was arrested yesterday and charged with leaving a series of violent and threatening voicemails at companies in Massachusetts.
Daniel Nguyen, 34, was charged by complaint with transmitting a threat in interstate commerce. Nguyen will have an initial appearance today in federal court in San Francisco and will appear in Boston and a later date.
According to the charging documents, from January through February 2024, Nguyen made a series of five phone calls to companies based in Massachusetts, and left voicemails in which he threatened to “shoot up” the offices with an AK-47. In the voicemails, Nguyen allegedly said the employees were “all going to be [expletive] dead. It’s going to be a [expletive] bloodbath.”
The charging document also describes threatening emails that Nguyen allegedly sent to individuals in Nevada and California. Those emails allegedly contained race-based threats, stating “I will … shoot all you [expletive] [expletive]s dead and burn al[l] you [expletive] piece of [expletive] [expletive]s in the dump and ditches where all you [expletive]s belong,” and “the only good [expletive] is a dead [expletive] that is shot and killed.”
The charge of transmitting a threat in interstate commerce provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Lauren Maynard of the Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Springfield Man Sentenced to More Than Three Years in Prison for Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Springfield man was sentenced today for unlawfully possessing a firearm and ammunition.
Robbie Delgado, 25, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 40 months in prison followed by three years of supervised release. In June 2024, Delgado pleaded guilty to one count of being a felon in possession of a firearm and ammunition. Delgado was indicted by a federal grand jury in March 2024.
On Feb. 8, 2024, Delgado was found in possession of a Baretta .380 caliber semi-automatic handgun. Delgado is prohibited from possessing firearms and ammunition following a 2019 state conviction in Hampden County of armed robbery and armed assault with intent to rob, for which he was sentenced to 18 months in prison followed by four years of probation.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Brian A. Kyes, United States Marshal for the District of Massachusetts; and Superintendent Lawrence Akers of the Springfield Police Department made the announcement. Assistant U.S. Attorney Todd E. Newhouse of the Springfield Branch Office prosecuted the case.
Randolph Man Pleads Guilty to Fraud Schemes Involving Sober Home Client, Mass Save Program and Mortgage FraudRead the Press Release
BOSTON – A Randolph man pleaded guilty today in federal court in Boston to his involvement in numerous fraud schemes involving sober homes in the Greater Boston area, the Mass Save Program and mortgage fraud.
Nicholas Espinosa, 38, pleaded guilty to two counts of wire fraud conspiracy; one count of conspiracy to make false statements to a mortgage lending business (mortgage fraud conspiracy); 16 counts of wire fraud; six counts of unlawful monetary transactions (money laundering); and one count of making false statements to a mortgage lending business. U.S. Senior District Court Judge William G. Young scheduled sentencing for March 11, 2025. Espinosa was arrested and charged in March 2023 along with alleged co-conspirator Daniel Cleggett.
According to the charging documents, Cleggett was the founder of the sober home business, A Vision From God LLC (AVFG), with locations in in Boston, Wakefield, Quincy and Weymouth under trade names including Brady’s Place, Lakeshore Retreat and Lambert House. Espinosa managed the day-to-day affairs of Cleggett’s business.
Espinosa, and allegedly Cleggett, along with a sober home client entered into a conspiracy to defraud a New York-based family trust that was paying for the client’s room and board at Brady’s Place in Quincy. Specifically, Espinosa, and allegedly Cleggett, overcharged the family trust for room and board by up to $12,500 per month by submitting false and fraudulent invoices to the family trust. Espinosa, and allegedly Cleggett, would then issue “refund” checks to the client in furtherance of the fraud scheme.
According to the charging documents, from approximately October 2019 to December 2021, Cleggett personally, and through straw purchasers including Espinosa, purchased the three residential properties in Weymouth and Boston to use as sober homes. Espinosa falsely represented that one of these properties was intended to be purchased as a primary residence for himself when, in reality, it was intended to be a sober home.
In addition to the sober home business, Cleggett operated numerous insulation contracting companies that participated in the Mass Save Program: Green Save Energy Corporation; Environmental Construction Objective Inc. (ECO); Green Giants, LLC; and Insulation Situation, LLC. Mass Save is a Massachusetts public/private partnership sponsored by gas and electric utility companies that funds energy conservation projects and improvements via energy efficiency funds charged to Massachusetts residents’ utility bills.
Specifically, Green Save and ECO received millions of dollars for residential insulation work from a lead vendor company under the Mass Save program. It is alleged that, from 2018 through mid-2021, Green Save and ECO fraudulently billed the vendor company for required permits that were not actually obtained. Green Save and ECO were ultimately terminated from participating in the company’s program in June 2021, and Cleggett was banned from participating in the Mass Save program. In response to this, Espinosa, and allegedly Cleggett and others, formed Green Giants as a new lead vendor with the same company under a straw owner. As a result, Espinosa, and allegedly Cleggett, obtained a total of $509,326 in payments from the company to Green Giants, despite a ban from participating in the Mass Save program.
The charges of wire fraud and wire fraud conspiracy provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of making false statements to a mortgage lending business provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million. The charge of unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Harry Chavis, Jr., Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Valuable assistance was provided by the Kingston, Randolph and Quincy Police Departments. Assistant U.S. Attorneys John T. Mulcahy and Dustin Chao of the Public Corruption & Special Prosecutions Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Newburyport Man Arrested in Scheme to Defraud Home Repair Insurance ProviderRead the Press Release
BOSTON – A Newburyport man has been charged with defrauding a home repair insurance provider by billing for purported repair jobs that were never performed.
Christian Decristofaro, 40, has been arrested and charged by criminal complaint with wire fraud. Decristofaro as arrested yesterday and will make an initial appearance in federal court in Boston at 2:30 p.m. today.
According to the charging document, Decristofaro allegedly caused NE Premier Home Services LLC (NE Premier) – a purported home repair company he controlled – to enroll as a contractor with the home repair insurance provider (the victim). It is alleged that Decristofaro used false or stolen identities to enroll non-existent or unsuspecting homeowners in insurance plans with the victim insurance provider. Decristofaro then allegedly reported fictitious home emergencies to the victim on behalf of the purported homeowners and requested that NE Premier be assigned to perform the repairs. He then allegedly caused NE Premier to bill the victim insurance provider for the repair jobs, even though inspections of the properties showed no evidence of any repair work having been done. As a result of these fraudulent billings, between approximately 2022 and 2023, the victim insurance provider allegedly paid NE Premier at least $1.5 million for services that NE Premier had not rendered.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000, or twice the gross gain or loss from the offense, restitution and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Meghan C. Cleary and Leslie A. Wright of the Criminal Division are prosecuting the case.
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.
Maryland Woman Sentenced for Conspiring to Defraud the GovernmentRead the Press Release
BOSTON – A Maryland woman was sentenced yesterday in federal court in Boston for conspiracy to defraud the government of thousands of dollars between 2014 to 2018.
Chantelle Boyd, 53, of Woodsboro, Md., was sentenced by U.S. District Court Judge Indira Talwani to six months home confinement, followed by two years of supervised release. The government recommended a sentence of six months in prison. Boyd will also be ordered to pay restitution in an amount to be determined at a later date. In April 2023, Boyd pleaded guilty to one count of conspiracy, 10 counts of theft of government funds and false declarations. Boyd was arrested and charged in July 2020 along with co-defendant Thomas Bouchard.
Bouchard was the Contracting Officer in charge of the U.S. Army Natick Contracting Division, a full-service contracting organization for the Department of Defense. According to the charging documents, in 2014, Bouchard used his long-standing relationship with Evolution Enterprise, Inc., a government contractor, to have Boyd hired for a “no show” job as an assistant that specifically supported Bouchard. Boyd’s position cost the Department of Defense more than $490,000 during her time at Evolution from 2014 to 2018, during which Boyd performed little if any useful function.
Bouchard and Boyd took numerous government-funded trips, ranging in duration from two to 15 days, under the guise that they were work related. This included 31 trips to Orlando, Fla., among other locations such as Clearwater Beach, Fla. and Stafford, Va., during which Boyd allegedly performed little if any work. For many of the trips, Bouchard and Boyd stayed in the same hotel room and spent time at the pool and Disney parks – all during business hours. In order to conceal the personal nature of the trips, Bouchard altered, created and approved false travel to reimburse the Boyd for out-of-pocket expenses. Additionally, Boyd made false statements to the grand jury in May 2018 in relation to these trips.Bouchard pleaded guilty in April 2023. In August 2024, Bouchard was sentenced to 12 months and one day in prison followed by one year of supervised release. He was also ordered to pay $487,658.87 in restitution.
Acting United States Attorney Joshua S. Levy; Joseph Dattoria, Special Agent in Charge of the General Services Administration Office of Inspector General; Patrick Hegarty, Special Agent in Charge of the Defense Criminal Investigative Service; and Michael Connor, Special Agent in Charge of the Army Criminal Investigation Division Major Procurement Fraud Field Office made the announcement. Assistant U.S. Attorney Neil J. Gallagher, Jr. of the Public Corruption & Special Prosecutions Unit prosecuted the case.
Bronx Man Sentenced to More Than Two Years in Prison for Fentanyl DistributionRead the Press Release
BOSTON – A Bronx man was sentenced yesterday for travelling to the Worcester area to distribute approximately one kilogram of fentanyl.
Jose Luis Lopez Genao, 32, of Bronx, N.Y., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 30 months in prison to be followed by four years of supervised release. In June 2024, Genao pleaded guilty today to one count of distribution of and possession with the intent to distribute fentanyl. Sentencing is scheduled for Sept. 23, 2024. Genao was arrested and charged in December 2022.
In and around June 2021, Genao and other subjects were identified as receiving large shipments of fentanyl from outside the United States and then distributing it throughout the Springfield and New England areas. On Dec. 8, 2022, Genao travelled from New York to the Worcester area to deliver approximately one kilogram of fentanyl. Genao was arrested immediately after he delivered the fentanyl to a government witness.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by Homeland Security Investigations in New England; Massachusetts State Police; the Chicopee, West Springfield and Easthampton Police Departments; and the Berkshire, Hampden and Franklin County Sherriff’s Office. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Unit prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
New York Man Indicted for Bank Fraud and Identity Theft in Connection with Stolen $810,000 Tax Refund CheckRead the Press Release
BOSTON – A Yonkers, N.Y. man was indicted yesterday by a federal grand jury in Boston in connection with a scheme to steal an $810,000 tax refund by impersonating a corporate executive in Connecticut.
Steven Ware, 63, was charged by criminal complaint with one count of bank fraud and two counts of aggravated identity theft. Ware was initially arrested and charged by criminal complaint on Sept. 10, 2024.
According to charging documents, in December 2023, Ware opened bank accounts in the name of a Connecticut investment company and one of its executives at a credit union in Tyngsborough, Mass. When opening the account, Ware allegedly identified himself as the executive – using the executive’s full name, date of birth, Social Security number and other documents.
Shortly after opening the account, it is alleged that Ware returned to the credit union pretending to be the executive and deposited a United States Treasury check payable to the company and the executive for $810,337.
Once the check cleared, a debit card was allegedly used to withdraw money from the account to buy goods at various retailers in New York, New Hampshire and Massachusetts. It is further alleged that Ware returned to the Tyngsborough credit union several times over the following days and weeks pretending to be the executive and wired more than $634,000 of the stolen funds.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million. The charges of aggravated identity theft each provide for a mandatory two years in prison, in addition to any sentence imposed for bank fraud, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today. Valuable assistance was provided by the Tyngsborough Police Department. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Leader of Catalytic Converter Theft Crew Sentenced to Decade in PrisonRead the Press Release
BOSTON – The leader of a regional organized theft crew, who orchestrated the thefts of catalytic converters from nearly 500 vehicles across the region, multiple jewelry store robberies and the stealing of ATMs was sentenced yesterday in federal court in Boston. A precipitous decline in catalytic converter thefts has been reported in Massachusetts as a result of the takedown – with nine reported incidents of catalytic converter theft over the past 18 months following the arrests, in comparison to the hundreds of thefts reported during the nine-month period prior.
Rafael Davila, a/k/a “Robbin Hood,” 36, of Springfield, Mass., was sentenced by U.S. District Court Judge Leo T. Sorokin to 10 years in prison, to be followed by three years of supervised release. Davila was also ordered to pay restitution of approximately $157,000 and complete 75 hours of community service at a food pantry. Additionally, Davila was ordered to forfeit a significant number of assets – including a Chevrolet Suburban, an Acura MDX, two motorcycles, six dirt bikes and two jet skis – that were acquired with proceeds of the offenses to which he pleaded guilty or were involved in the money laundering conspiracy. In April 2024, Davila pleaded guilty to conspiracy to transport stolen property in interstate commerce; interstate transportation of stolen property; conspiracy commit money laundering, conspiracy to commit bank theft; and bank theft.
In April 2023, Rafael Davila was arrested and charged along with six others in connection with the theft, transportation and sale of stolen catalytic converters taken from nearly 500 vehicles across Massachusetts and New Hampshire in 2022 through April 2023. It is believed that a significant number of additional thefts have not been identified or were never reported to law enforcement.
“Targeting over 400 vehicles across more than 100 different communities in Massachusetts and surrounding states, Mr. Davila’s criminal enterprise wreaked havoc for hundreds of innocent people. Each victim suffered thousands of dollars in losses as a result of these thefts, on top missed personal appointments, disruption of business and unnecessary stress. Mr. Davila and his crew were equally opportunity thieves – they stole from the elderly, single parents, and even a food pantry – impacting needy families who are struggling to get food on their tables. Their conduct was simply deplorable and deserving of serious punishment,” said Acting United States Attorney Joshua S. Levy. “This case directly resulted in a very sharp decline in catalytic converter thefts across the region. Only nine catalytic thefts have been reported in the past 18 months since Mr. Davila and his crew were apprehended. I want to commend the exceptional investigative work by our partners at the Massachusetts State Police and the more than 70 local police departments across Massachusetts, New Hampshire and Connecticut. Thanks to their dedicated and collaborative work, the public is safer and the self-proclaimed Robbin Hood is now behind bars where he belongs – unable to wreak his havoc on the innocent people of Massachusetts.”
“Career criminal Rafael Davila earned his keep by leading the most prolific catalytic converter theft ring in the region that raked in millions of dollars in profits, stole ATMs, and burglarized jewelry stores – all of which is the antithesis of an honest day’s work. His actions inflicted serious financial harm and significant stress on hundreds of innocent victims and the community alike, and it’s gratifying to finally see him being sent to prison,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Davila and his crew now know that the FBI is just as committed to eradicating organized crime as they are to embracing it. Thanks to the hard work and due diligence of law enforcement agencies in Massachusetts and New Hampshire, Operation Cut and Run decimated this large-scale, multi-state property theft ring responsible for the rampant theft of catalytic converters in our region.”
“The Massachusetts State Police work closely with our public safety partners to address crime affecting the quality of life for residents and causing tremendous economic losses for business across the region,” said Colonel John E. Mawn of the Massachusetts State Police. “This investigation illustrates the impact of the Massachusetts CrimeNet Program and the Commonwealth Fusion Center to analyze crime trends across local jurisdictions and determine the full extent of criminal enterprises. Our investigators worked diligently to bring this case to fruition and we are grateful to our federal partners for their collaboration and their successful prosecution of this case.”
“The National Insurance Crime Bureau is grateful for all those who worked tirelessly to bring this case to a successful final disposition. The collaborative efforts in pursuing those responsible has created a rippling effect literally ending catalytic converter theft which had victimized so many throughout New England,” said Kevin Gallagher, Director of Operations for the National Insurance Crime Bureau, Northeast Region.
Catalytic converter theft has become a nationwide problem due to the high-valued precious metals they contain – some of which are more valuable than gold, with black-market prices being more than $1,000 each in recent years. The theft of a vehicle’s catalytic converter results in damage that renders the vehicle inoperable – both mechanically and legally under EPA regulations – until properly replaced.
The crew was led by Davila, who engaged in catalytic converter thefts and burglaries on a full-time basis – committing thefts multiple nights per week for upwards of eight hours a night. Davila was responsible for the planning of and transportation to each targeted theft – using his vehicle, determining price values for stolen converters and purchasing needed materials. Davila maintained meticulous notes accounting for the locations that he and his co-conspirators had targeted and the number of catalytic converters that had been stolen, including the makes and models and when they were dropped off for sale.
The thefts resulted in losses of approximately $5,000 per vehicle with certain trucks costing over $10,000 to repair. This amounts to an approximate $2 million in losses suffered by more than 300 separate victims who were forced to deal with their vehicles being disabled for potentially weeks on end. The more than 300 victims included businesses and individuals across Massachusetts and parts of New Hampshire, including a food pantry, automotive businesses, tradesmen, a bakery, single parents, a home healthcare provider and the elderly. Some businesses were repeatedly targeted on multiple nights.
Once in possession of the stolen catalytic converters, the crew would then sell them to Jose Torres, who would accumulate stolen catalytic converters from multiple theft crews and then in turn sell them to scrap dealers – handling approximately $30,000 to $80,000 in stolen catalytic converter sales per week. Torres then sold stolen catalytic converters to scrap dealers who have since been charged federally for interstate transportation of stolen property and money laundering in the District of Connecticut, the Eastern District of California and Northern District of Oklahoma. Rafael Davila admitted to conspiring with Torres in stolen catalytic converter sales.
Davila also successfully applied for food stamps while committing the thefts, lying under oath about his income and bank account balances, while he owned six motorcycles, two jet skis, three vehicles and luxury jewelry.
In addition to the catalytic converter thefts, Davila admitted to conspiring to steal from ATMs of federally insured banks in Massachusetts on three separate occasions in December 2022. This conspiracy involved the use of stolen trucks and chains to rip the ATMs from the ground and gain access to the vault.
Rafael Davila also admitted to committing burglaries at two New Hampshire jewelry stores on Jan. 12, 2023, and the theft of a trailer on Dec. 14, 2022. Davila broke into the stores by smashing the glass doors and jewelry cases and stealing the jewelry. The combined total value of the jewelry stolen during the burglaries was determined to be over $137,000, with each store facing approximately $10,000 in costs to repair damage.
Rafael Davila is the fourth defendant to be sentenced in the case. In April 2024, Zachary Marshall was sentenced to 47 months in prison to be followed by three years of supervised release. In March 2024, Santo Feliberty was sentenced to 57 months in prison and three years of supervised release. Also in March 2024, Rafael Davila’s brother, Nicolas Davila, was sentenced to 37 months in prison and five years’ supervised release. The three remaining co-defendants, Carlos Fonseca, Alex Oyola and Jose Torres, have each pleaded guilty and are awaiting sentencing.
Acting U.S. Attorney Levy; FBI SAC Cohen; MSP Colonel Mawn; and NICB Director Gallagher made the announcement. Valuable assistance was also provided by the United States Attorney’s Offices for the Districts of Connecticut, Rhode Island, Northern District of Oklahoma and the Eastern District of California; Homeland Security Investigations; Bureau of Alcohol, Tobacco, Firearms & Explosives; Plymouth County District Attorney’s Office; and the New England State Police Information Network. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit and Assistant U.S. Attorney Alexandra W. Amrhein of the Asset Recovery Unit are prosecuting the case.
Over 70 local police departments in Massachusetts, New Hampshire and Connecticut contributed to this investigation through the submission of their investigations of catalytic converter thefts in their jurisdiction. The following Massachusetts police departments contributed to the investigation: Abington, Acton, Andover, Auburn, Bedford, Bellingham, Beverly, Billerica, Burlington, Bridgewater, Canton, Carver, Chelmsford, Concord, Cranston, East Hampton, Easton, Fitchburg, Framingham, Franklin, Gardner, Hampton, Hanover, Haverhill, Hingham, Holliston, Holyoke, Hudson, Ipswich, Lawrence, Leominster, Lynn, Malden, Mansfield, Medford, Marlborough, Methuen, Middleton, Milford, Millbury, Needham, Newton, Northborough, Norwell, Norwood, Peabody, Pembroke, Plymouth, Randolph, Rockland, Sharon, Shrewsbury, Springfield, Sterling, Sturbridge, Sudbury, Tyngsborough, Walpole, Waltham, Watertown, West Bridgewater, Weymouth, Wilmington, Woburn and Worcester. The New Hampshire police departments contributing to the investigation were Bow, Concord, Derry, Hooksett, Hudson, Londonderry, Manchester, Salem and Windham. The South Windsor and Windsor Connecticut Police Departments also contributed.
Florida Company Charged with Conspiring to Sell Misbranded N95 Masks to Hospital in Early Months of COVID-19 PandemicRead the Press Release
BOSTON – A Florida company, and two individuals associated with the company, have been charged and agreed to plead guilty to charges associated with shipping facemasks that were misbranded as N95 respirators, and price gouging hospitals, during the earliest phase of the COVID-19 pandemic.
JDM Supply LLC (JDM) has been charged with one count of conspiracy to introduce misbranded devices into interstate commerce with intent to defraud or mislead, in violation of the Federal Food, Drug and Cosmetic Act. Daniel Motha, 40, of Miami, Fla., and Jeffrey Motha, 36, of Norfolk, Mass., were charged with one count of introduction of misbranded devices into interstate commerce and one count of conspiracy to commit price gouging in violation of the Defense Production Act. Plea hearings have not yet been scheduled by the Court. In August 2023, a third individual, Jason Colantuoni, pleaded guilty to conspiracy to commit price gouging in connection with this investigation.
According to the charging documents, in the spring of 2020, during the earliest phase of the COVID-19 pandemic, JDM and a company identified as “Company 1” conspired to ship facemasks that were misbranded as National Institute of Occupational Safety and Health (NIOSH)-approved, N95 respirators. It is alleged that one hospital accepted and paid for hundreds of thousands of purported N95 masks that were manufactured by Company 1 and sold by JDM. Ultimately, the hospital did not use the masks, which were eventually returned to Company 1. It is further alleged that JDM misled the hospital into believing that the Company 1 masks were NIOSH-approved N95s, when in fact they were not.
In August 2020, a NIOSH lab tested a sample of the Company 1 masks that had been shipped to the hospital. All 10 Company 1 masks fell under the 95% minimum level of filtration efficiency required for N95 respirators.Daniel Motha and Jeff Motha allegedly conspired to use JDM to exploit and profit off of the critical need of hospitals and healthcare workers for scarce N95 masks during the COVID-19 pandemic. It is alleged that they accumulated N95 masks from various sources and then sold the N95 masks through JDM to hospitals in Massachusetts, and elsewhere, at prices in excess of the prevailing market price.
The charge of conspiracy to introduce or deliver for introduction into interstate commerce a misbranded device with intent to defraud or mislead, brought against JDM, provides for a fine of $500,000 or twice the pecuniary gain or loss of the offense, whichever is greater and up to five years of probation. The charge of introduction or delivery for introduction into interstate commerce a misbranded device provides for a sentence of up to one year in prison; up to one year of supervised release; and a fine of $100,000. The charge of conspiracy to commit price gouging in violation of the Defense Production Act provides for a sentence of up to one year in prison; up to one year of supervised release; and a fine of up to $10,000. Sentences are imposed by a federal judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Assistant U.S. Attorneys Bill Brady and Howard Locker of the Health Care Fraud Unit are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline via the NCDF Web Complaint Form.The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brockton Man Convicted of Passport FraudRead the Press Release
BOSTON – A Brockton man was convicted today following a three-day trial for lying that his United States passport had been lost in order to secure a replacement to enter the country, when in fact, the passport had been confiscated by the prosecutor’s office in Cabo Verde following his arrest for the murders of two victims.
Johnny Barros Brandao, 41, was convicted of one count of passport fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Jan. 9, 2025. Brandao was arrested on May 9, 2023.
According to court records, on March 27, 2014, in Cabo Verde, Brandao allegedly shot an individual in the head using a .45 caliber revolver, took one million and five hundred thousand Cape Verdean Escudos from the victim and then dumped the victim’s body on the side of a road next to a waste dump. On July 26, 2021, Brandao allegedly shot and killed another individual using a 9mm caliber firearm and threw the victim’s body off a bank at the same place as the 2014 victim.
Brandao was arrested in Cabo Verde on these charges. On Dec. 12, 2022, after a period of pretrial detention, Brandao was released subject to supervision. The Cabo Verde court also ordered that Brandao not depart Cabo Verde – confiscating his Cabo Verdean national ID card as well as his United States and Cabo Verde passports.
On Dec. 28, 2022, Brandao applied for a replacement United States passport at the U.S. Embassy in Dakar, Senegal. In the section of the form that directs the applicant to explain how his prior passport was lost or stolen, Brandao reported he had lost his passport in Dakar, Senegal while out to dinner on Dec. 25, 2022.
“Johnny Barros Brandao was accused of two homicides in Cape Verde. Rather than facing those charges, he chose to lie to U.S. authorities in order to replace his confiscated passport and flee to America to evade justice,” said Acting United States Attorney Joshua S. Levy. “I am grateful for the diligent work of my office and our law enforcement counterparts, without their commitment, a suspected murderer would be walking our streets and avoiding prosecution for his crimes.”
“The Diplomatic Security Service is firmly committed to working with the U.S. Department of Justice and our other law enforcement partners to investigate allegations of crime related to passport and visa fraud. And DSS’ global network of special agents working together to interdict visa and passport crimes is vital to bringing those who commit these crimes to justice,” said Special Agent in Charge Matthew O’Brien of the U.S. Department of State’s Diplomatic Security Service (DSS) Boston Field Office.
The charge of passport fraud provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy and U.S. DSS SAC O’Brien made the announcement today. Valuable assistance was provided by U.S. Customs and Border Protection and the U.S. Department of Homeland Security Federal Protective Services. Assistant United States Attorneys Meghan Cleary, David Tobin and Brian Sullivan of the Major Crimes Unit are prosecuting the case.
Brookline Hospital to Pay up to $6.5 Million to Resolve False Claims Act Liability Concerning Kickback AllegationsRead the Press Release
BOSTON – First Psychiatric Planners, Inc. d/b/a Bournewood Health Systems and Bournewood Hospital (Bournewood) has agreed to pay at least $5.5 million and up to $6.5 million to resolve allegations that it violated the federal and Massachusetts False Claims Acts. According to court documents, Bournewood provided free sober housing to substance use recovery patients enrolled in Medicare and Medicaid to induce these patients to participate in Bournewood’s Partial Hospitalization Program (PHP) in violation of the federal and Massachusetts Anti-Kickback Statutes. Bournewood frequently sent recovery patients to sober homes whose owners and operators engaged in unlawful behavior and exploited vulnerable recovery patients.
Bournewood is a behavioral health organization that provides inpatient and outpatient mental health and dual diagnosis care for adults and adolescents in Brookline with offices in Dedham and Woburn, Mass. Bournewood’s PHP is a month-long outpatient therapy program providing substance use treatment and psychiatric care to patients after they complete rehabilitation in an inpatient detoxification facility.
According to the settlement agreement, Bournewood admits and acknowledges that from at least Sept. 16, 2013 through May 31, 2022, it contracted with sober homes to house patients of Bournewood’s PHP receiving federal or Massachusetts health care program benefits. Bournewood only paid housing fees to sober homes on behalf of a patient if that patient enrolled in and attended Bournewood’s PHP. Bournewood did not require a patient to be homeless or housing insecure to receive sober housing in exchange for their attendance at Bournewood’s PHP. Once a patient ceased attending the PHP, Bournewood stopped paying the sober home costs for those patients, regardless of the patients’ financial condition, housing status or housing availability.
The three largest sober homes that Bournewood contracted with were Steps to Solutions, Inc., Brady’s Place and Recovery Education Services, who collectively housed 79% of Bournewood’s PHP patients. In May 2024, a federal jury in Boston found the owner and operator of Steps to Solutions, Inc. liable for sexual harassment and retaliation against tenants of his sober homes, in violation of the Fair Housing Act and awarded seven victims a combined total of $3.8 million. In May 2023, the United States Attorney’s Office announced a 37-count indictment against the manager of Brady’s Place for his participation in a fraud scheme. In 2019, the owner and operator of Recovery Education Services, Inc. pleaded guilty to a 36-count indictment brought by the Massachusetts Attorney General’s Office related to his management of the sober home which included former Bournewood PHP patients. He was sentenced to two-and-a-half years in state prison.
The federal Anti-Kickback Statute (AKS) prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. The United States and Massachusetts contend that the claims that Bournewood submitted, or caused to be submitted, to Medicare and Medicaid were false because Bournewood’s payment in the form of free sober housing induced vulnerable patients not only to enroll in Bournewood’s PHP, but to regularly attend and remain with the PHP, in violation of the AKS.
“Unlawful kickbacks can corrupt medical judgment, jeopardize patients’ health and create an uneven playing field for companies that play by the rules,” said Acting United States Attorney Joshua S. Levy. “Our office remains committed to investigating and holding companies that pay kickbacks accountable. As we continue to combat the opioid crisis, we need to focus on getting people services based on what will best aid their recovery, not based on amenities that providers use to lure vulnerable patients to increase profits. That’s especially so where the supposed amenities place patients at risk.”
“Kickback arrangements have no place in our health care system, and such allegations are particularly troubling when they involve the exploitation of vulnerable patients,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “We are committed to protecting taxpayer-funded health care programs and the patients served by those programs, and we will continue to thoroughly investigate schemes that put patient safety at risk.”
“When medical providers put their own financial incentives over the wellbeing of their patients, vulnerable individuals in need of care are unfairly harmed,” said Massachusetts Attorney General Andrea Joy Campbell. “My office and the USAO took action, and we’re proud to have reached a meaningful settlement as we continue to hold accountable those who unlawfully compromise patient care for profit.”
The resolution of this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of Massachusetts, the Massachusetts Attorney General’s Office and the U.S. Department of Health and Human Services, Office of Inspector General.
Acting U.S. Attorney Levy, HHS-OIG SAC Coviello and AG Campbell made the announcement today. This matter was handled by Assistant U.S. Attorneys Steven T. Sharobem and Julien M. Mundele of the Affirmative Civil Enforcement Unit, Assistant U.S. Attorneys Gregory J. Dorchak and Anuj K. Khetarpal of the Civil Rights Unit. Assistant Attorneys General Katie Cooper Davis and Mary-Ellen Kennedy handled the matter for the Massachusetts Attorney General’s Office’s Medicaid Fraud Division.
Florida Woman Pleads Guilty to Defrauding Massachusetts Housing AgencyRead the Press Release
BOSTON – A Florida woman pleaded guilty today in federal court in Boston to defrauding a Massachusetts housing agency where she worked in 2022, along with defrauding the U.S. Small Business Administration (SBA) in connection with the pandemic Paycheck Protection Program (PPP).
Alihea Jones, 51, of Brandon, Fla., pleaded guilty to five counts of wire fraud. U.S. District Court Judge Patti B. Saris scheduled sentencing for Jan. 16, 2025.
In 2022, Jones worked remotely for the Massachusetts Department of Housing and Community Development (DHCD) for six months where she worked with the Residential Aid to Families in Transition (RAFT) program, which provides funds to assist low-income Massachusetts residents facing eviction and other housing emergencies. Immediately after she was terminated, Jones, who was still logged into the RAFT database, accessed the files of four RAFT program participants and authorized electronic payments to their landlords in the amounts of $7,500, $8,800, $6,925 and $10,000. However, Jones changed the routing and bank account numbers from the landlords’ accounts to four unauthorized accounts in Georgia: an account in the name of Jones’s business, Beauty Concepts by Alihea, LLC (Beauty Concepts); Jones’s personal account; and the accounts of persons identified in the charging document as “Friend A” and “Friend B” – all without knowledge or permission from DHCD. After these transfers went through, Friend A and Friend B each paid Jones a $2,000 kickback.
Earlier, in 2021, Jones also fraudulently obtained a $187,000 PPP loan from a Massachusetts lender, which the SBA later forgave.
Under the PPP, authorized lenders issued SBA-guaranteed loans to small businesses during the COVID pandemic to help keep workers employed. If a business spent the money on payroll and other permissible business expenses, the SBA forgave the loan.
Jones submitted a PPP loan application to a Massachusetts lender falsely stating that Beauty Concepts had 17 employees and an average monthly payroll expense of $74,800. In fact, Beauty Concepts did not employ anyone. Unaware that Jones’s information was false, the SBA agreed to guarantee a $187,000 loan to Beauty Concepts. The lender transmitted the loan proceeds to the Beauty Concepts account in Georgia. Jones later applied to have her loan forgiven. Again, she included false employee count and payroll information. Unaware that Jones’s representations were false, the SBA forgave the loan principal and accrued interest.
In total, Jones caused a loss of $222,074, with $33,225 payable to the DHCD and $188,849 payable to the SBA.
The charge of wire fraud provides for a sentence of up to 20 years in prison; three years of supervised release; and a fine of $250,000 or twice the gain or loss, whichever is greater; restitution; and forfeiture.
Acting United States Attorney Joshua S. Levy; Massachusetts Inspector General Jeffrey S. Shapiro; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today. Assistant U.S. Attorney Christine Wichers of the Public Corruption Unit is prosecuting the case.
Springfield Woman Pleads Guilty to Nationwide Controlled Substance ConspiracyRead the Press Release
BOSTON – A Springfield woman pleaded guilty yesterday in federal court in Boston to an indictment charging conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 500 grams or more of a mixture and substance containing methamphetamine.
Denise Guyette, 31, of Springfield, Mass. was charged in February 2023 along with Gerardo Garza, a/k/a “Oso,” of Yuma, Ariz., and Nathan Boddie, Pawtucket, R.I., in an indictment alleging conspiracy to distribute controlled substances. In June 2023, a federal grand jury sitting in Boston returned a superseding indictment alleging that 400 grams or more of fentanyl and 500 grams or more of a mixture and substance containing methamphetamine were attributable to Guyette.
In or about April 2022, law enforcement opened an investigation into a drug trafficking organization (DTO). Guyette conspired with Garza, Boddie and others to traffic various controlled substances – including methamphetamine, fentanyl pills and cocaine – in Massachusetts, Rhode Island and elsewhere. The DTO routinely used the mail to ship drugs from Arizona to Massachusetts, often hiding the drugs within packages containing children’s items such as toy trucks, Halloween decorations and Disney items. Between May and October 2022, investigators seized seven packages containing a total of over 900 grams of methamphetamine, thousands of counterfeit pills containing fentanyl, as well as suspected Dimethyltryptamine (DMT), a very strong psychedelic.
At the time of Guyette’s arrest on Feb. 8, 2023, approximately 6.5 kilograms of pure methamphetamine and over 2,700 counterfeit fentanyl pills weighing over 300 grams were located in a safe in her bedroom. A digital scale as well as multiple Rhode Island and Massachusetts driver’s licenses, Social Security cards and credit cards in the names of other individuals were also found during a search of Guyette’s residence.
Boddie and Garza have both pleaded guilty. On September 19, 2023, Boddie was sentenced to 84 months in prison followed by three years of supervised release.
The charge of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 500 grams or more of a mixture and substance containing methamphetamine provides for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release, and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Hudson Police Chief Richard DiPersio made the announcement today. Valuable assistance was provided by the Drug Enforcement Administration; Federal Bureau of Investigation, Imperial County Resident Agency and Yuma Resident Agency; United States Postal Service; Massachusetts State Police; and the Woonsocket (R.I.) Police Department. Assistant U.S. Attorneys Alathea Porter and Charles Dell’Anno of the Criminal Division are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
MS-13 Members Charged with Racketeering and MurderRead the Press Release
BOSTON – Three alleged members of La Mara Salvatrucha, or MS-13, have been charged for their alleged roles in two separate murders in Massachusetts in December 2010 and July 2020.
William Pineda Portillo, a/k/a “Humilde,” 31, of Everett, and Jose Vasquez, a/k/a “Cholo,” a/k/a “Little Crazy, 31, of Somerville, are charged in a second superseding indictment with one count of conspiracy to conduct racketeering affairs through a pattern of racketeering activity (more commonly referred to as RICO or racketeering conspiracy) and one count of violent crime in aid of racketeering activity. Franklin Antonio Amaya Paredes, a/k/a “Tony,” 27, of New Bedford, was charged in a separate indictment with racketeering and violent crime in aid of racketeering. Pineda Portillo and Vasquez are currently in federal custody. Amaya Paredes is current in state custody on related charges. All three will appear in federal court in Boston at a later date.
“The charges announced today reflect the relentless commitment of this office and our law enforcement partners to holding violent criminals accountable, no matter how much time has passed. The brutal acts of violence these defendants are accused of committing demonstrate a complete disregard for human life and the rule of law. We will not allow MS-13 or any other violent criminal organization to terrorize our communities,” said Acting United States Attorney Joshua S. Levy. “Our office, alongside our law enforcement partners, will use every tool available to disrupt and dismantle these operations piece by piece and bring those responsible for senseless violence to justice.”
“What these men allegedly did to their victims was particularly heinous – so much so that, over a decade later, the circumstances still stand out,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s charges should make it clear to MS-13 members and their associates that medieval-style violence and senseless murder will not be tolerated in Massachusetts. The FBI’s North Shore Gang Task Force and its partners have put years of hard work into rooting out all the violence this transnational criminal organization has created and bringing those responsible to justice.”
According to the charging documents, Pineda Portillo and Vasquez allegedly conspired with other members of MS-13 to murder a 28-year-old man on Dec. 18, 2010, in Chelsea, Mass. Specifically, Pineda Portillo drove the victim and a group of MS-13 members to the murder scene –in Chelsea. There, the victim was found with 12 stab wounds to his head and chest. It is further alleged that Vasquez was one of the individuals who stabbed the victim and that his palm print was on the handle of a silver kitchen knife left at the murder scene.
During a 2016 investigation that targeted dozens of leaders, members and associates of MS-13 in Massachusetts, Vasquez pleaded guilty to RICO conspiracy and was sentenced to 212 months in prison – a sentence he is currently serving. Vasquez was a member and local leader of the Trece Locos Salvatrucha, or TLS, clique of MS-13. In addition to being a leader of an MS-13 clique, Vasquez personally participated in racketeering activity and multiple acts of violence on behalf of MS-13.
Pineda Portillo was also indicted for RICO conspiracy as a result of that same investigation, during which he was recorded discussing the need to locate and murder a member of MS-13 who he believed (incorrectly) was cooperating with law enforcement. Pineda Portillo was deported to El Salvador shortly before that indictment was returned. Approximately five years after the indictment, on May 10, 2022, Pineda Portillo was arrested as he crossed into Texas from Mexico. According to court documents, after being arrested at the border, Pineda Portillo admitted that he was a member of MS-13 and fingerprint analysis determined that there was an active arrest warrant for him. Pineda Portillo was then returned to the District of Massachusetts where he remains in federal custody pending trial.
On Sept. 11, 2024, Pineda Portillo and Vasquez were indicted by a federal grand jury in connection with the 2010 murder.
According to the charging documents, Amaya Paredes allegedly murdered a second victim who was 27 years old in July 2020 near Horseneck Road in Dartmouth, Mass. Specifically, it is alleged that Amaya Paredes lured the victim to a family party, after which Amaya Paredes drove the victim to the murder scene where he shot and killed the victim.
Surveillance video and location information allegedly showed that Amaya Parades and the victim entered a Honda Pilot minivan that was tracked to the scene of the murder at the time gunfire was heard. According to court filings, the victim was found lying face down with multiple gunshot wounds. Several 9-millimeter shell casings were recovered near the victim’s body.
In the days following the 2020 murder, Amaya Parades was charged by state authorities with murder. During the investigation, Amaya Parades was allegedly identified as a member of MS-13 and determined that he had allegedly murdered the victim in order to gain influence and improve his position in MS-13. The investigation also allegedly revealed that Amaya Parades conspired to murder a witness following Amaya Parades’ arrest on state murder charges. On Sept. 11, 2024, Amaya Parades was indicted by a federal grand jury in connection with the 2020 murder and his alleged conspiring to murder a witness.
According to court documents, MS-13 is a violent, transnational criminal organization involved in murder, assault, extortion, kidnapping, obstruction of justice and drug trafficking. MS-13 operates in the District of Massachusetts as well as in New York, Virginia, Maryland, Ohio, Texas and California. The gang also maintains a large presence in El Salvador, Guatemala, Honduras and Mexico. MS-13 members commit violence, threats of violence and intimidation, including murder and assault with deadly weapons, often firearms. MS-13 members maintain and enhance their status in the gang, and the overall reputation of the gang, by participating in such violent acts.
The charge of racketeering and racketeering conspiracy involving murder provides for a sentence of life in prison, five years of supervised release and a fine of $250,000. The charge of violent crime in aid of racketeering involving murder provides for a sentence of life in prison or death and a fine of $250,000. The charge of racketeering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
These indictments were brought as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Acting U.S. Attorney Levy; FBI SAC Cohen; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations, in New England; Chelsea Police Chief Keith Houghton; Suffolk County District Attorney Kevin Hayden; and Bristol County District Attorney Thomas M. Quinn III made the announcement today. Assistant U.S. Attorneys Christopher J. Pohl, Brian A. Fogerty and Meghan C. Cleary of the Criminal Division are prosecuting the cases.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lead Defendant in Federal Case Against High-End Brothel Network Pleads GuiltyRead the Press Release
BOSTON – The manager responsible for operating an interstate prostitution network of sophisticated high-end brothels in greater Boston and eastern Virginia pleaded guilty today.
Han Lee, 42, of Cambridge, Mass., pleaded guilty to one count of conspiracy to persuade, induce, entice, and coerce one or more individuals to travel in interstate or foreign commerce to engage in prostitution; and one count of money laundering conspiracy. U.S. District Court Judge Julia E. Kobick scheduled sentencing for Dec. 20, 2024. Han Lee was arrested and charged in November 2023 with co-defendants Junmyung Lee, 31, of Dedham, Mass., and James Lee, 69, of Torrance, Calif. The defendants were subsequently indicted by a federal grand jury in February 2024.
From at least July 2020, Han Lee operated an interstate prostitution network with multiple brothels in Cambridge and Watertown, Mass., as well as in Fairfax and Tysons, Va. The defendant established the infrastructure for these brothels in multiple states for the purposes of persuading, inducing and enticing women – primarily Asian women – to travel to Massachusetts and Virginia to engage in prostitution.
Specifically, Han Lee and, allegedly, her co-defendants, rented high-end apartments as brothel locations, which they furnished and regularly maintained. It is further alleged that the defendants coordinated the women’s airline travel and transportation and permitted them to stay overnight in the brothel locations so they did not have to find lodging elsewhere, therefore enticing women to participate in their prostitution network. To protect and maintain the secrecy of the business and ensure that the women did not draw attention to the prostitution work inside apartment buildings, Han Lee and, allegedly, her co-defendants established house rules for the women during their stays.
The defendants allegedly advertised their prostitution network and offered appointments with women in either greater Boston or eastern Virginia via bostontopten10.com and browneyesgirlsva.blog, respectively. Both websites purported to advertise nude models for professional photography at upscale studios as a front for prostitution offered through appointments. Investigators searched and seized the domain names for both websites pursuant to search warrants executed in November 2023.
Additionally, each website described a verification process that interested sex buyers undertook to become eligible for appointment bookings– including requiring that clients complete a form providing their full names, email address, phone number, employer and reference if they had one. Han Lee and, allegedly, her co-defendants persuaded the women to work for their prostitution network because the business maintained a regular customer base of men that were adequately screened, ensuring that the customers were not members of law enforcement or men who posed a risk to the safety and security of the commercial sex workers.
Han Lee and, allegedly, her co-defendants maintained local brothel phone numbers which they used to communicate with verified customers and schedule appointments via text messages; send customers a “menu” of available options at the brothel, including the women and sexual services available and the hourly rate; and to text customers directions to the brothel’s location where they engaged in commercial sex with the women.
According to the charging documents, the defendants charged sex buyers a premium price for appointments with the women advertised on their websites, which ranged from approximately $350 to upwards of $600 per hour depending on the services and were paid in cash.To conceal the proceeds of the prostitution network, Han Lee deposited hundreds of thousands of dollars of cash proceeds into personal and third-party bank accounts and peer-to-peer transfers. Additionally, it is alleged that the defendants regularly used hundreds of thousands of dollars of the cash proceeds from the prostitution business to purchase money orders (in values under an amount that would trigger reporting and identification requirements) to conceal the source of the funds. These money orders were then used to pay for rent and utilities at brothel locations in Massachusetts and Virginia.
Members of the public who have questions, concerns or information regarding this case should contact [email protected].
The charge of conspiracy to persuade, induce, entice, and coerce one or more individuals to travel in interstate or foreign commerce to engage in prostitution provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a $500,000 fine or twice the value of funds laundered, whatever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Cambridge Police Commissioner Christine Elow made the announcement today. Valuable assistance was provided by the Central District of California; Eastern District of Virginia; U.S. Postal Service; and Watertown Police Department. Assistant U.S. Attorney Lindsey E. Weinstein of the Criminal Division and Assistant U.S. Attorney Raquelle Kaye, of the Asset Recovery Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.Behavioral Healthcare Company Executive Pleads Guilty to Healthcare FraudRead the Press Release
BOSTON – The Chief Executive Officer of Dana Group Associates, who is also the former Chief Operating Officer of Prime Behavioral Health, pleaded guilty today to a scheme to defraud health care benefit programs by directing false billing for patient visits.
Miguel Saravia, 42, of Hanson, pleaded guilty to six counts of health care fraud. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Jan. 2, 2025.
From approximately 2017 to 2022, Saravia directed a group of individuals with no billing or medical training to enter Current Procedural Terminology codes (CPT) for therapy services that were not provided and to upcode CPT codes used for psychotherapy visits. Saravia submitted, or directed the submission of, false claims for treatment that was not provided or for more complex and expensive treatment than was provided.The charge of health care fraud carries a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of up to $250,000, or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Joshua S. Levy; Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Insurance Fraud Bureau Executive Director Anthony DiPaolo; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Kelly B. Lawrence and Mackenzie A. Queenin of the Health Care Fraud Unit and Lindsey Ross and Steven Sharobem of the Affirmative Civil Enforcement Unit are prosecuting the case.
New Bedford Man Pleads Guilty to Stealing over $450,000 in Veterans Disability FundsRead the Press Release
BOSTON – A New Bedford man pleaded guilty today to stealing over $450,000 in disability benefits issued by the United States Veterans Benefits Administration (VBA) intended for a 20-year veteran of the United States Marine Corps who was suffering from Amyotrophic Lateral Sclerosis (ALS).
Joseph Smith, 71, pleaded guilty to one count of theft of government benefits and one count of conspiracy to steal government benefits before U.S. District Court Judge Julia E. Kobick, who scheduled sentencing for Jan. 15, 2025. Smith was charged in June 2024.
Shortly after the victim’s ALS diagnosis in August 2015, the VBA approved the victim’s application for disability benefits and awarded him approximately $8,318 in monthly payments. The VBA began issuing payments in September 2015 via monthly checks mailed to the victim’s former residence in New Bedford, where he had resided with Smith’s relative.
Between approximately 2015 and 2020, while the victim was hospitalized for ALS, Smith and others received monthly VBA disability checks intended for the victim and deposited those checks into bank accounts they controlled. Smith first deposited the disability checks into a bank account in his own name and then began depositing the checks into a bank account that he and others fraudulently opened in the name of victim. Shortly after depositing the disability checks, Smith withdrew the funds in cash and used the money for personal expenses.
In total, between in or around 2015 and 2020, Smith and others stole more than $450,000 in VBA disability benefits intended for the victim.
“This defendant’s craven actions represent a gross betrayal of our nation’s veterans and the sacrifices they make to keep our country free and safe. Stealing from a Marine Corps veteran who bravely served for 20 years and was literally fighting for his life as he battled a devastating illness is about as low as it gets and it is a crime,” said Acting United States Attorney Joshua S. Levy. “Every American owes a debt of gratitude to the men and women who have worn the uniform. Stealing from them is simply immoral.”
“Today's guilty plea underscores our commitment to investigating and holding accountable those involved in fraudulent activities, especially those who target our veterans,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service's Boston Division. “This investigation showcases the results that postal inspectors strive to achieve in collaboration with our law enforcement partners. We remain dedicated to our mission of identifying and prosecuting those who exploit others through fraudulent schemes.”
“Today’s guilty plea sends the message that the VA Office of Inspector General will work to hold accountable those individuals who would steal benefits intended for deserving veterans with disabilities,” said Special Agent in Charge Christopher Algieri of the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG thanks the U.S. Attorney’s Office and our law enforcement partners for their excellent work in pursuing justice in this case.”
“Misusing someone’s identity and Social Security number to steal federal disability benefits is a crime and these particular offenses are deplorable,” said Michelle L. Anderson, Acting Inspector General for the Social Security Administration. “My office will continue working with our law enforcement partners to protect taxpayers’ funds from those seeking to defraud federal programs. I thank our partners and the U.S. Attorney’s Office for their work in this case.”
The charge of theft of government benefits provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to steal government benefits provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy, USPIS INC Larco-Ward, VA-OIG SAC Algieri and SSA-OIG Acting INC Anderson made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of the Securities Financial & Cyber Fraud Unit is prosecuting the case.
Dracut Brothers Agree to Plead Guilty to Fraud Scheme Involving Online Sales of CosmeticsRead the Press Release
BOSTON – Two men have been charged with, and have agreed to plead guilty to, carrying out a scheme to obtain products of an online cosmetics company through fraud and to resell those products on Amazon and eBay for a profit.
Brothers Nick Ashtar-Zadeh, 22, and Nika Ashtar-Zadeh, 23, of Dracut, have agreed to plead guilty to one count of wire fraud each. Plea hearings have not yet been scheduled by the Court.
According to the charging documents, between 2020 and 2021, Nick Ashtar-Zadeh and Nika Ashtar-Zadeh operated Amazon and eBay “stores” that offered various products for sale, including the products of a cosmetics company in Texas. It is alleged that the Ashtar-Zadehs offered the company’s products on these platforms to buyers for one-time payments that were typically equal to or below the company’s list prices for the same products. The Ashtar-Zadehs then enrolled these Amazon and eBay buyers in the company’s 30-day trial program for the same products. The brothers allegedly entered the buyers’ information on the company’s website, without the customers’ knowledge or consent, and caused the company to ship its products to those buyers for a trial period. It is alleged that, for these orders, the Ashtar-Zadehs presented the company with forms of payment that fulfilled initial charges of $19.95 but were declined when the company attempted to charge later installments, after buyers had kept the products past 30 days. The brothers sold the company’s products in this manner to hundreds of buyers on Amazon and eBay, each time pocketing the difference between what the buyers paid them and the initial $19.95 upfront payment to the company. As a result of the alleged conduct, the Ashtar-Zadehs cost the company hundreds of thousands of dollars in losses.
The charge of wire fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Boston Man Charged with Violating National Defense AirspaceRead the Press Release
BOSTON – A Boston man was arraigned today in federal court for allegedly flying a drone near the finish line at the Boston Marathon in April 2024. The drone flight prompted law enforcement and bomb technicians to seize the drone mid-air, land it and evaluate its threat to the public.
Allan Nip, 30, was charged with unlawfully flying a drone in restricted National Defense Airspace. A deferred prosecution agreement filed along with the charging document reflects that the defendant has agreed to pay a $5,000 criminal fine and to forfeit his drone, valued at approximately $4,000. The United States also filed a civil forfeiture complaint in connection with this matter to forfeit the drone and its related controller.
According to court filings, Nip was flying his drone within a few blocks of the Boston Marathon finish line approximately 20 minutes before the professional men in the wheelchair division were finishing the race The drone was detected by federal law enforcement monitoring the airspace near the finish line, was intercepted mid-flight, and was landed in a secure location in Back Bay. Once the drone was taken down and evaluated by bomb technicians, law enforcement responded to Nip’s apartment on West Springfield Street in Boston, where he allegedly admitted to flying the drone that morning.The controller on Nip’s drone, as with most drone controllers, allegedly provided warnings that day that he was flying in a restricted zone. In addition, the Federal Aviation Administration had sent out notices warning anyone seeking to fly any type of aircraft (including drones) not to fly near the start or finish lines of the Boston Marathon on race day, without a special permit. Those special permits are not granted for amateur drone operators.
The charge of operating a drone in restricted National Defense Airspace carries a maximum penalty of one year in prison, one year of supervised release and a $100,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation Boston Division; Colleen D'Alessandro, Regional Administrator for the Federal Aviation Administration in New England; and Boston Police Commissioner Michael Cox made the announcement. Assistant U.S. Attorney John T. McNeil of the National Security Unit is prosecuting the case. Assistant U.S. Attorney Carol E. Head, Chief of the Asset Recovery Unit is prosecuting the civil forfeiture case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Taunton Man Pleads Guilty to Oxycodone ConspiracyRead the Press Release
BOSTON – A Taunton man pleaded guilty yesterday to his role in an oxycodone conspiracy.
John Campbell, age 41, pleaded guilty in federal court in Boston to conspiracy to distribute and to possess with intent to distribute oxycodone pills. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 15, 2025. Campbell was indicted by a federal grand jury in August 2023.
Between approximately July 2022 and June 2023, Campbell distributed oxycodone pills to others for further re-distribution. He also obtained oxycodone pills from his co-conspirator and co-defendant Kenneth Veiga. The quantities of oxycodone pills distributed ranged from hundreds to more than 1,000 on several occasions. Campbell also distributed oxycodone pills to an undercover agent on four occasions. Laboratory testing of pills seized as part of the conspiracy confirmed that the pills contained oxycodone. During intercepted calls, Campbell was overheard discussing oxycodone prices and quantities in telephone calls and text messages. On July 12, 2023 during a search of Campbell’s residence a digital scale; rubber bands; and oxycodone pills were seized.
Veiga pleaded guilty and in July 2024, was sentenced to 60 months in prison to be followed by three years of supervised release.
Campbell faces a up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives; United States Coast Guard Investigative Service; Barnstable County Sheriff’s Office; and the Barnstable, Dennis, Bourne, Falmouth, Mashpee, Yarmouth and Sandwich Police Departments. Assistant U.S. Attorney John T. Mulcahy of the Criminal Division is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging document are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
One of the Largest Methamphetamine Distributors in New England Sentenced to 23 Years in PrisonRead the Press Release
BOSTON – The leader of a nationwide drug trafficking ring has been sentenced in federal court in Boston. During the investigation over 160 pounds of pure methamphetamine, as well as an AK-47, a Glock with no serial number, two loaded Smith & Wesson handguns and over 4,200 rounds of ammunition were seized. An illegal marijuana grow operation with hundreds of marijuana plants was also dismantled.
Reshat Alkayisi, 63, a Turkish national residing in Covington, R.I., was sentenced on Sept. 17, 2024 by U.S. District Court Judge Nathaniel M. Gorton to 23 years in prison to be followed by five years of supervised release. In April 2024, Alkayisi pleaded guilty to five counts of a second superseding indictment, charging him with conspiracy to distribute and to possess with intent to distribute 500 grams or more of methamphetamine; possession of a firearm in furtherance of a drug trafficking offense; money laundering conspiracy; and two counts of money laundering.
“This defendant was one of the largest methamphetamine distributors in New England, whose massive drug operation fueled addiction and devastation across our communities. He is now going to pay a very heavy price for the havoc he wreaked across Massachusetts. This sentencing sends a powerful message to anyone engaged in pumping deadly narcotics onto our streets,” Acting United States Attorney Joshua S. Levy. “As demonstrated by this prosecution, the dedicated prosecutors and law enforcement partners will be relentless in our efforts to disrupt and dismantle drug trafficking operations and ensure that individuals like Mr. Alkayisi are held accountable.”
“Reshat Alkayisi was the leader of a nationwide drug trafficking organization that pushed massive amounts of methamphetamine onto New England streets, and profited from the pain and misery of others,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Thankfully, this 23-year sentence officially puts his 24/7 operation, protected in part by illegal firearms, including an AK-47, out of business. Operation Ice Cats is an example of how the FBI and our partners are hard at work dismantling dangerous trafficking operations as we work to make our communities safer.”
“DEA stands committed to keeping highly addictive drugs like methamphetamine off the streets of Massachusetts,” said Acting Special Agent in Charge Stephen Belleau, Drug Enforcement Administration, New England Field Division. “This substantial sentence not only holds Mr. Alkayisi accountable for his crimes but serves as a warning to those traffickers who are contributing to the drug crisis in New England and throughout America. This investigation demonstrates the strength of collaborative law enforcement efforts and our strong partnership with the U.S. Attorney’s Office.”
In late 2020, Alkayisi was identified as a large-scale methamphetamine trafficker, who distributed multi-pound quantities to distributor customers throughout the New England area. Between October 2020 and April 2021, 12 controlled purchases of methamphetamine were made from the drug trafficking organization—two of which were delivered personally by Alkayisi and one that was negotiated with Alkayisi and delivered by a co-conspirator.
Intercepted communications revealed that Alkayisi supplied multiple distributor customers with supplier quantities of pure methamphetamine. Alkayisi also regularly bragged to these distributors about quality of his methamphetamine, saying, “You’re gonna get nice, big crystals,” and “Ur contacts should b happy with the size of product.” Alkayisi also operated a large-scale marijuana grow out of his Rhode Island residence, including while on probation for a state conviction for unlawful marijuana distribution.
Alkayisi typically charged his distributor customers $5,000 to $6,000 per pound of methamphetamine and utilized multiple methods to conceal the nature of these proceeds. These included paying the bail of his distributors, structuring cash deposits to avoid reporting requirements, utilizing peer-to-peer transfers and purchasing vehicles with cash. Alkayisi also created and utilized a shell company to launder his proceeds and recruited and directed others, including his wife, to launder his drug proceeds for him.
On June 1, 2021, four packages were seized containing a total of approximately 100 pounds of 100% pure methamphetamine that were picked up on behalf of Alkayisi from a UPS store in Rhode Island. Each of the boxes were addressed to Alkayisi’s shell company, which he used to launder his drug proceeds.
On June 25, 2021, another package was seized, destined for Alkayisi that contained approximately 30 pounds of 100% pure methamphetamine. In total, approximately 160 pounds of methamphetamine was seized throughout the investigation from controlled purchases, motor vehicle stops and package seizures.
During a search of Alkayisi’s residence in Rhode Island, an AK-47 assault rifle, a Glock handgun with no serial number, over 4,200 rounds ammunition and over $23,000 cash were also seized. Additionally, numerous electronics, including a computer that contained a ledger documenting Alkayisi’s methamphetamine sales for January through June of 2021 was seized. Based on the ledger, as well as the seizures, Alkayisi was responsible for over 660 pounds of methamphetamine over the course of six months. Law enforcement also located his large unlawful marijuana grow operation with hundreds of marijuana plants in all stages of production for distribution.
Alkayisi is the seventh defendant to be sentenced in the case. All remaining defendants have pleaded guilty and are awaiting sentencing.
Acting U.S. Attorney Levy, FBI SAC Cohen and DEA Acting SAC Belleau made the announcement. Valuable assistance was provided by the Massachusetts, Rhode Island, New Hampshire and Maine State Police; Massachusetts Department of Correction; Norfolk County Sherriff’s Office; and Concord, Hudson, Peabody, Reading, Watertown and Waltham Police Departments. Assistant U.S. Attorneys Alathea Porter and Katherine Ferguson of the Criminal Division are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Businessman Pleads Guilty to Theft of Pandemic Relief FundsRead the Press Release
BOSTON – A Massachusetts businessman pleaded guilty yesterday to misappropriating COVID-19 relief funds for personal use.
Jesse Lelievre, 41, of North Andover, pleaded guilty to theft of government property. U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 19, 2024. Lelievre was charged in July 2024.
Lelievre was the owner and manager of Paramount Plumbing & Heating LLC a Massachusetts company that provided plumbing, heating, and related services. In 2021, Lelievre applied for a loan from the U.S. Small Business Administration (“SBA”) on behalf of Paramount Plumbing & Heating. Lelievre obtained the loan through the SBA’s Economic Injury Disaster Loan (“EIDL”) program, which provided loans to small businesses that suffered substantial economic injury due to the COVID-19 pandemic. To obtain the loan, Lelievre entered into a loan agreement with the SBA in which he agreed, among other things, to use all loan proceeds solely as working capital for his business. Thereafter, Lelievre directed the EIDL funds into a bank account that he controlled and misappropriated approximately $180,000 for personal expenses, including to buy a diamond ring and to remodel his home.
The charge of theft of government property provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Christopher Algieri, Special Agent in Charge of the Northeast Field Office of the U.S. Department of Veterans Affairs Office of Inspector General made the announcement. Substantial assistance was provided by the U.S. Small Business Administration, Office of Inspector General, Boston Region. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Boston Man Pleads Guilty to Sex TraffickingRead the Press Release
BOSTON – A Boston man pleaded guilty today to sex trafficking and cocaine charges stemming from his involvement in a drug and sex trafficking hub operating out of a tent at Massachusetts Avenue and Melnea Cass Boulevard (Mass and Cass) in Boston. The defendant preyed on women, particularly in the Boston area and Cape Cod, some of whom he transported from Massachusetts to other states, including New York, for commercial sex.
Jonathan Vaughan, a/k/a “Ason,” 37, pleaded guilty to three counts of sex trafficking by force, fraud and coercion, two counts of transportation of an individual for purposes of prostitution and one count of possession with intent to distribute cocaine. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Dec. 19, 2024. In March 2022, Vaughan was indicted by a federal grand jury. Pursuant to a plea agreement filed with the court, the parties agreed to a sentence that includes 180 months in prison should the court accept the agreed upon disposition at the time of sentencing.“Jonathan Vaughan preyed on his victims solely because of their vulnerabilities. He used their circumstances against them and for his own personal gain,” said Acting United States Attorney Joshua S. Levy. “Sex trafficking incidents have been increasing, and in many cases, happen in plain sight. We will continue to collaborate with our law enforcement partners to weed out individuals like Vaughan and hold them accountable for their actions.”
“Vaughan preyed on individuals who struggled with substance use, using their vulnerabilities against them to exert control and force them into violent and dangerous situations. We hope that this guilty plea and the knowledge that Vaughan is facing serious federal prison time brings some peace to those he victimized,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England. “This case is the result of the close collaboration of our partner agencies, particularly Boston Police, Suffolk District Attorney’s Office and The Barnstable Police Department.”
From at least June 2019 through October 2021, Vaughan recruited and trafficked three female victims to engage in commercial sex acts, and in or about October 2021, transported two of the victims for purposes of prostitution to another state. At the time of his arrest on state charges, on Oct. 13, 2021, Vaughan possessed 15 bags of cocaine intended for distribution to drug users.
Dating back to at least 2019, Vaughan systematically preyed on women throughout Massachusetts, particularly in Boston and on Cape Cod. From at least late spring or early summer of 2021 until his arrest on state charges, Vaughan maintained a tent at Mass and Cass which he used as a hub for distributing drugs and recruiting and trafficking women.
Vaughan permitted his sex trafficking victims to stay in and bring “dates” back to his tent so long as he received the proceeds of the commercial sex acts that the women engaged in at his direction. He recruited victims in and around Mass and Cass and Downtown Crossing as well as on the internet, including over Facebook. Vaughan also brought his victims to hotels in Boston, Chelsea, Saugus, Cape Cod, as well as Queens and Manhattan, N.Y.
Vaughan forced at least two of his victims to solicit themselves outdoors, by walking “the track” in areas such as Mass and Cass, Broadway in Chelsea and in and around Times Square in Manhattan, N.Y. Dating back to at least 2019, Vaughan engaged in both physical and sexual violence against his victims to manipulate them and to assert power and control over them.
According to court documents, Vaughan called himself “Ason the Pimp,” has a tattoo across his chest that states: “Pimp or Die,” and wrote music in which he glorified his work as a pimp and the objectification of women.
Members of the public who believe they may be a victim of this crime should contact [email protected].
The charges of sex trafficking by force, fraud and coercion provides for a mandatory minimum sentence of 15 years and up to life in prison, five years of supervised release and a fine of up to $250,000. The charges of transportation of an individual for purposes of prostitution provides for a sentence of up to 10 years in prison, up to three of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, three years and up to a lifetime of supervised release and a fine of up to $1 million dollars. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy and HSI SAC Krol made the announcement today. Valuable assistance was provided the Federal Bureau of Investigation, Boston Division; Barnstable and Boston Police Departments; and the Suffolk County District Attorney’s Office. Assistant U.S. Attorney Lindsey E. Weinstein of the Criminal Division is prosecuting the case.
Boston Man Pleads Guilty to Federal Ammunition ChargeRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday to being a felon in possession of ammunition.
Nicholas Carle, 36, pleaded guilty to being a felon in possession of ammunition before U.S. District Court Judge Richard G. Stearns who scheduled sentencing for Dec. 18, 2024. Carle was charged in April 2023.
On Dec. 18, 2022, after being stopped by law enforcement for a traffic violation, Carle ran from law enforcement, dropping his coat. Inside the coat, a Smith & Wesson .357 revolver, loaded with six rounds of ammunition was recovered. Body camera footage shows law enforcement finding the firearm sticking out of the Carle’s coat while it was on the ground. Inside of the trunk of the vehicle, approximately 2.5 pounds of a substance that appeared to be marijuana were located.
Due to prior felony convictions including a conviction for possession of a firearm without a permit, Carle is prohibited from possessing firearms or ammunition.
The charge of possessing ammunition after being convicted of a felony provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of a $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Massachusetts State Police. Assistant U.S. Attorneys William F. Abely and Julien M. Mundele are prosecuting the case.
Springfield Man Sentenced to Five Years in Prison for Fentanyl and Cocaine DistributionRead the Press Release
BOSTON – A Springfield men was sentenced yesterday for his role in a conspiracy to distribute cocaine and fentanyl.
Isaias Diaz, 25, was sentenced by U.S. District Court Judge Mark G. Mastroianni to five years in prison to be followed by four years of supervised release. In May 2024, Diaz pleaded guilty to conspiring to distribute and possess with intent to distribute more than 500 grams of cocaine and conspiracy to distribute fentanyl. In July 2023, Diaz was indicted along with his co-defendant Robert Collado.
From about June 2022 through June 2023, Diaz and Collado conspired with each other to distribute fentanyl and more than 500 grams of cocaine.
Collado pleaded guilty in May 2024 and is scheduled to be sentenced on Dec. 12, 2024.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; the Holyoke, Springfield, Chicopee, West Springfield and Easthampton Police Departments; and the Berkshire, Hampden and Franklin County Sherriff’s Offices; t provided valuable assistance in the investigation. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Nurse Sentenced for Tampering with OxycodoneRead the Press Release
BOSTON – A former nurse was sentenced yesterday for tampering with liquid oxycodone syringes at a local rehabilitation center.
Jaclyn McQueen, 44, of Dedham, was sentenced by U.S. District Court Judge Julia E. Kobick to three years of probation. In January 2024, McQueen pleaded guilty to one count of tampering with a consumer product. McQueen was charged by Information on Dec. 7, 2023.
From approximately February through May 2020, McQueen worked as a registered nurse at a rehabilitation center in Dedham that provided long-term chronic and post-acute care to patients. In her capacity as a nurse, McQueen had access to oxycodone, a Schedule II narcotic, prescribed to patients at the rehabilitation center. During her work shifts, McQueen removed liquid oxycodone from syringes intended for use by patients, consumed the oxycodone herself and refilled the syringes with water to avoid detection. McQueen returned the diluted syringes to the medication carts where they could have been administered to patients.
Acting United States Attorney Joshua S. Levy; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; and Robert H. Goldstein, MD, PhD, Commissioner of the Massachusetts Department of Public Health made the announcement. Assistant U.S. Attorney Kelly Begg Lawrence, Chief of the Health Care Fraud Unit, prosecuted the case.
Boston Man Pleads Guilty to Fraudulently Obtaining COVID-Relief FundsRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to fraud and false statements charges in connection with a scheme to fraudulently obtain pandemic-related relief funds from the Paycheck Protection Program (PPP) made available under the Coronavirus Aid, Relief, and Economic Security Act.
Robert Platt Jr., 45, pleaded guilty to one count of wire fraud and one count of making false statements. U.S. District Court Judge Myong J. Joun scheduled sentencing for Dec. 18, 2024. Platt was charged and arrested in February 2024 along with over 40 Heath Street Gang members/associates, who were charged with racketeering conspiracy, drug trafficking, firearms charges, and financial frauds, including COVID-related fraud.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary loan program directed at small businesses called the Paycheck Protection Program (PPP). PPP loans were processed by private financial institutions and fully guaranteed by the U.S. Small Business Administration. If the small business used the loan funds for approved purposes, such as payroll, the loan could be forgiven by the financial institution and paid for by the U.S. Small Business Administration.
In April 2021, Platt submitted a fraudulent PPP loan application on behalf of his purported business. The application contained multiple false statements, including false representations regarding the purported business’s total gross income in 2019 and the purpose of the loan. Platt also submitted false tax records in support of his loan application. Based on the fraudulent application, Platt received approximately $20,833, which he then spent on non-business-related expenses.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of making false statements provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General; and Harry T. Chavis Jr, Special Agent in Charge of the Internal Revenue Service Criminal Investigations made the announcement today. Assistant U.S. Attorneys Sarah Hoefle and Lucy Sun of the Organized Crime & Gang Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Man Charged with Trafficking a Woman for SexRead the Press Release
BOSTON – A man has been charged with allegedly trafficking a woman to engage in commercial sex acts, coercing her to travel across state lines to engage in commercial sex, forcing her to assist him in robbing multiple convenience stores in Massachusetts, and forced her to assist in procuring an illegal firearm for him to use in one of the robberies.
David Walker, 26, was indicted by a federal grand jury on one count of sex trafficking by force, fraud, or coercion; one count of coercing a person to travel for purposes of prostitution; five counts of robbery interfering with interstate commerce, commonly referred to as Hobbs Act robbery; and one count of possessing, using, and carrying a firearm during and in relation to a crime of violence . Walker is currently in state custody on related charges and will appear in federal court in Boston at a later date.
“Mr. Walker’s alleged conduct is horrifying. He is alleged to have callously exploited this young woman– forcing her into a life of fear and violence for his own criminal gain. As alleged, this defendant used extreme violence and intimidation to control his victim, even forcing her to participate in multiple robberies,” said Acting United States Attorney Joshua S. Levy. “This indictment is one of many we have brought against men who traffic women through force, fraud, or coercion. The penalties for such conduct are rightly severe and this office is steadfast in its commitment to protecting victims of trafficking and ensuring that those who engage in such reprehensible conduct are brought to justice.”
“The acts of extreme violence Walker is charged with paint a nightmarish picture. The account from this survivor is heartbreaking and unfortunately, one we see too often from those who are trafficked. Benign romantic relationships can quickly be upended and turned into a relationship of abuse, violence, and coercion,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England. “HSI special agents and victim assistance professionals work every day to seek justice for people who have been trafficked and provide access to resources to help regain their dignity and independence.”
According to the indictment, Walker met his victim on social media and initiated a romantic relationship. It is alleged that Walker then pressured her to engage in commercial sex and when she repeatedly refused, he became physically violent with her, including by grabbing her, putting his hands around her neck and slamming her into the floor. Walker allegedly required her to make $800 per day selling her body for sex, taking all of the money for himself, and would physically and sexually abuse the victim if she made less than that required amount. Walker’s abuse allegedly included choking the victim until she lost consciousness, kicking her in the stomach, holding knives to her throat and holding a loaded gun to her head. He also allegedly threatened to kill her and her family members if she disobeyed him.
It is further alleged that Walker coerced and forced the victim to travel from Massachusetts to Maine for the purpose of engaging in commercial sex. Walker also allegedly forced the victim to use drugs, including crack, cocaine, mushrooms and Percocet, to make her less able to refuse when he wanted her to engage in commercial sex.
Additionally, the indictment further alleges that, on different dates in October 2023, Walker robbed four separate 7-Eleven convenience stores in West Roxbury, Cambridge, Watertown and Pepperell and attempted to rob a fifth location in Everett. Walker allegedly forced and coerced the same victim to assist him in the robberies. Prior to the West Roxbury robbery, it is alleged that Walker forced the victim to drive him to Dorchester so that he could pick up a semi-automatic handgun to use in the robbery.
If you or someone you know may be impacted or experiencing commercial sex trafficking, please contact [email protected].
The charge of sex trafficking by force, fraud, or coercion provides for a mandatory minimum sentence of 15 years and up to life in prison, at least five years of supervised release and a fine of up to $250,000. The charges of coercing a person to travel for purposes of prostitution provides for a sentence of up to 20 years in prison, up to three of supervised release and a fine of up to $250,000. The charge of Hobbs Act robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of possessing, using, and carrying a firearm during and in relation to a crime of violence provides for a mandatory minimum sentence of seven years and up to 25 years in prison, five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy and HSI SAC Krol made the announcement today. Valuable assistance was provided by the Middlesex District Attorney’s Office and the Boston, Cambridge, Watertown, Everett and Pepperell Police Departments. Assistant U.S. Attorney Torey B. Cummings of the Human Trafficking & Civil Rights Unit and Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.