District of Massachusetts
Press releases recorded for this federal judicial district.
Four Boston-Area Men Arrested for Trafficking Tens of Thousands of Fentanyl PillsRead the Press Release
BOSTON – Four Boston-area men have been arrested and charged in federal court in connection with a large-scale fentanyl trafficking conspiracy.
Anderson Ernesto Andujar Echavarria, 31, of Dorchester; Waner Bernabel Presinal, 37, of Dorchester; Carlos Fabal, 52, of Roxbury; and Freddy Artemio Guerrero Soto, 29, of Boston, were charged with conspiracy to distribute controlled substances, including fentanyl, methamphetamine and cocaine. The defendants were arrested on Sept. 13, 2024 and, following initial appearances in federal court in Boston, were detained pending a hearing scheduled for Sept. 24, 2024.
According to court documents, in November 2023, law enforcement identified Andujar as a large-scale drug trafficker distributing various narcotics. Over the course of the investigation, Andujar allegedly distributed tens of thousands of press fentanyl tablets as well as powdered fentanyl, cocaine and crystal methamphetamine to undercover law enforcement.
“These arrests underscore our unwavering dedication to combating the fentanyl crisis that continues to devastate our communities. The sheer quantity of fentanyl these defendants allegedly distributed was enough to take tens of thousands of innocent lives,” said Acting United States Attorney Joshua S. Levy. “We will continue to work tirelessly with our law enforcement partners to disrupt the flow of these lethal drugs. We will not hesitate to use every resource at our disposal to hold them accountable and protect the public from this growing epidemic.”
“DEA is committed to investigating and dismantling large-scale poly drug trafficking organizations like this one operating in the Boston area,” said Acting Special Agent in Charge Stephen Belleau, Drug Enforcement Administration, New England Field Division. “This organization is responsible for distributing fentanyl, methamphetamine and cocaine. Fentanyl alone is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison. This investigation demonstrates the strength of collaborative local, state and federal law enforcement efforts in Massachusetts and our strong partnership with the U.S. Attorney’s Office to seek and bring to justice anyone who engages in these crimes.”
According to court documents, Bernabel was identified as a co-conspirator who allegedly worked with Andujar to distribute fentanyl pills and Fabal was identified as an alleged fentanyl pill supplier to Andujar. Fabal was previously convicted in 2007 in federal court in Boston of conspiracy to distribute cocaine, for which he was sentenced to 67 months in prison and five years of supervised release.
During last week’s arrests, 30,000 blue pressed fentanyl pills were seized along with and 500 grams of powder fentanyl from Andujar and Guerrero Soto. Additional suspected controlled substances, packaging materials and a money counter were also seized from the residences of Andujar, Bernabel and Fabal:
The charge of conspiracy to distribute and possess with intent to distribute controlled substances including fentanyl, methamphetamine and cocaine provides for a sentence of up to 20 years in prison, at least three years 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 U.S. Attorney Levy and DEA Acting SAC Belleau made the announcement. Valuable assistance in the investigation was provided by the Massachusetts State Police and Boston Police Department. Assistant U.S. Attorney Christopher Pohl of the Narcotics & Money Laundering Unit is prosecuting the case.
Windsor Man Indicted for Extortion and ThreatsRead the Press Release
BOSTON – A Windsor, Mass. man was arrested today and charged in federal court in Springfield for making online threats and extortionate demands.
Michael Andrew Rodgers, 31, was indicted by a federal grand jury on one count of threatening interstate communications and one count of extortionate interstate communications. Rodgers was released on conditions following an initial appearance today in federal court in Springfield, Mass. before U.S. District Court Magistrate Judge Katherine A. Robertson.
According to the indictment, on April 5, 2023, Rodgers posted a threat on the Google review page of a Springfield medical practice that stated: “They gonna get what’s coming soon. […] Will be there in the morning to get them myself one way or another. Locked and loaded.” Beneath this text, Rodgers allegedly included an image of a hand holding a gun.
It is further alleged that on April 6, 2024, Rodgers submitted a threat through a fraud reporting website for the Social Security Administration Office of the Inspector General with the intent to extort Social Security disability benefits. Specifically, Rodgers allegedly stated: “I m gonna start taking what I need. By any means nessacary. […] GIVE ME MY MONEY OR IM GONNA START DROPPING PEOPLE. YOULL NEVER FIND MY WEAPONS SO STOP LOOKING AND GIVE ME MY CHECK. […] NEXT TIME I SLICE SOMETHING OPEN. IT WONT BE ME. ITLL BE ONE OF YOUR CHILDREN ILL MERC A WHOLE SCHOOL AND NOT GIVE A F***. […] SO YOULL BE MY FIRST TARGET IF YOU KEEP REFUSING TO HELP ME.”
“The charges against Mr. Rodgers involve very serious and terrifying threats designed to instill fear and extort his victims. His alleged extortion demands to unlawfully obtain money from the federal government clearly crossed the line into criminal conduct. In these virulent times, no one should ever have to endure the fear and distress caused by this type of alleged conduct.,” said Acting United States Attorney Joshua S. Levy. “Our office remains steadfast in pursuing justice and ensuring that those who resort to violent threats and intimidation are held fully accountable for their actions.”
“While the First Amendment gives us the right to express our own opinions, violent physical threats are certainly not protected speech,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “When someone repeatedly threatens the lives of others, it’s a clear red flag, and we have to take their despicable words at face value. Today’s arrest of Michael Rodgers demonstrates the FBI’s resolve to investigate and bring to justice anyone who crosses this line.”
“The safety and security of the Social Security Administration is of utmost priority and our agency is committed to protecting employees from threats and acts of violence. We thank our law enforcement partners, the Massachusetts State Police and the FBI assisting in this investigation and working to apprehend this subject.” said Corwin Rattler, Acting Special Agent in Charge, Social Security Administration Office of the Inspector General, Boston-New York Field Division.
The charge of threatening interstate communications provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of extortionate interstate communications 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 statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy, FBI SAC Cohen and SSA-OIG Acting SAC Rattler made the announcement today. Valuable assistance in the investigation was provided by the Massachusetts State Police, Springfield Police Department, Windsor Police Department and Federal Protective Service. Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Members of a Nationwide Drug Trafficking Ring Sentenced for Methamphetamine Trafficking ConspiracyRead the Press Release
BOSTON – Two members of a nationwide drug trafficking ring were sentenced today 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.
Edison Klotz, 48, of Stoughton, Mass., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 46 months in prison, followed by two years of supervised release after pleading guilty to two counts of a superseding information charging him with conspiracy to distribute and to possess with intent to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine.
Brian Keleman, 55, of Woonsocket, Rhode Island, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 60 months in prison, followed by three years of supervised release after pleading guilty to two counts of a superseding indictment charging him with conspiracy to distribute and to possess with intent to distribute controlled substances and money laundering conspiracy.
The superseding indictment also charged 10 other defendants with controlled substance offenses, firearm offenses and money laundering offenses.
In approximately October 2020, investigators received information about drug trafficking activities of a large-scale methamphetamine supplier in the Boston area. Over the course of the investigation, a cooperating witness completed controlled purchases from members of the drug trafficking organization, including from Klotz. In November 2020, Klotz distributed over 108 grams of pure methamphetamine to the cooperating witness.
In late 2020, co-defendant Reshat 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 Keleman. The investigation also revealed that Keleman worked for Alkayisi on Alkayisi’s illegal marijuana grow. In addition, Keleman delivered methamphetamine on behalf of Alkayisi and also assisted Alkayisi in laundering his drug proceeds.
Klotz and Keleman are the fifth and sixth defendants to be sentenced. All other defendants have pleaded guilty and are awaiting sentencing or have been sentenced.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Valuable assistance was provided by the Massachusetts Department of Correction; Norfolk County Sherriff’s Office; and Concord, Hudson, Peabody, Reading, Watertown and Waltham Police Departments. Assistance was also provided by the Massachusetts, Rhode Island, New Hampshire and Maine State Police. 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.
Massachusetts Man Indicted for Smuggling and Conspiracy to Commit Export Control Violations Involving the Russian Nuclear Energy IndustryRead the Press Release
BOSTON – Two men, one from Massachusetts, have been charged with allegedly smuggling and conspiring to violate and evade export controls relating to the sale of laser equipment to the Russian nuclear energy industry.
Sam Bhambhani, 55, of North Attleboro, Mass., and Maxim Teslenko, 35, of Moscow, Russia, were each indicted on one count of smuggling and one count of conspiracy to violate and evade export controls, commit smuggling, and defraud the United States. Bhambhani was arrested on Sept. 9, 2024 and was released on conditions following an initial appearance in federal court in Boston. Teslenko remains at large overseas.
“This case underscores our unwavering commitment to enforcing U.S. export laws and safeguarding national security,” said Acting United States Attorney Joshua S. Levy. “The defendants are alleged to have engaged in a sophisticated scheme to evade export controls, deceiving the government about the true destination of sensitive technology and putting critical national interests at risk. We will continue to work tirelessly with our federal partners to keep our country's most sensitive technologies out of the world's most dangerous hands.”
“These two men are accused of helping Russia illegally acquire cutting edge, American made laser welding machines in support of this hostile nation state's nuclear program. As part of their shameful efforts to evade our country’s export laws, we believe these men utilized shell companies, fictitious personas and falsified records,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This is yet another flagrant example of Russia using illicit procurement networks to advance their goals to the detriment of our country’s national security. Let this case serve as a warning to others that if you violate U.S. export controls or evade U.S. sanctions, the FBI and our partners will find you and ensure that you are brought to justice.”
“The Office of Export Enforcement is committed to vigorously investigating illegal exports to Russia and will hold all those who violate our export control laws accountable, whether those violations involve smuggling, illicit procurement, transshipment, or other illegal schemes,” said Acting Special Agent in Charge Aaron Tambrini, U.S. Department of Commerce’s Office of Export Enforcement, Boston Field Office. “This multi-year investigation is a testament to the excellent cooperation between our law enforcement partners in countering Russia’s nuclear weapons program.”
“Bhambhani and Teslenko allegedly conspired to smuggle sensitive machinery into Russia to enhance Russian nuclear capabilities. They’re alleged to have willfully violated export controls specifically intended to protect the security of our nation and to keep dangerous technology out of the hands of adversarial regimes,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England. “HSI and our partners will continue to work tirelessly to ensure the sanctity of our most sensitive defense technologies.”
It is alleged that from in or around 2015 through at least 2021, Bhambhani and Teslenko conspired to export laser welding machines from Bhambhani’s employer in the United States to the Ural Electromechanical Plant (UEMZ) in Yekaterinburg, Russia, while falsifying the export documentation submitted to the U.S. government in order to conceal the fact that the UEMZ was the true end user of the machines. The UEMZ is a subsidiary of Rosatom, a Russian state corporation headquartered in Moscow, that oversaw Russia’s civilian and military nuclear program. According to the indictment, Teslenko knew that the laser welding machines were intended for the portion of the UEMZ involving the Russian nuclear weapons program.
The charge of smuggling provides for a sentence of up to 10 years in prison, three years supervised release and a fine of up to $250,000. The charge of conspiracy provides for a sentence of up to five years in prison, three years 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, FBI SAC Cohen, DOC BIS OEE Acting SAC Tambrini and HSI SAC Krol made the announcement today. Assistant U.S. Attorneys Timothy H. Kistner and Laura S. Kaplan of the Office’s National Security Unit are prosecuting the case with valuable assistance provided by Trial Attorney Sean O’Dowd of the National Security Division’s Counterintelligence and Export Control Section.
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.
Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.
Lynn Man Sentenced to More than Two Years in Prison for Conspiracy to Traffic Counterfeit Pills Containing FentanylRead the Press Release
BOSTON – A Lynn man was sentenced today in federal court in Boston for his role in a North Shore-based drug trafficking organization (DTO) that manufactured and distributed tens of thousands of counterfeit prescription pills containing narcotics.
Edward Ortiz, 34, was sentenced by Chief U.S. District Court Judge F. Dennis Saylor IV to 28 months in prison and three years of supervised release. On June 17, 2024, Ortiz pleaded guilty to conspiracy to distribute and possess with intent to distribute controlled substances.
Ortiz was among 23 individuals charged in October 2022 in connection with a wide-ranging conspiracy to traffic counterfeit prescription pills. The defendants were subsequently indicted along with two additional alleged co-conspirators in December 2022. 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.
During the investigation, investigators seized from Ortiz approximately 1,000 counterfeit oxycodone pills containing fentanyl that Ortiz had just obtained from one of the co-conspirators in this matter.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division and the Beverly, Everett, Peabody, Revere, Salem, Saugus and Swampscott Police Departments. Assistant U.S. Attorney Evan D. Panich of the Narcotics & Money Laundering Unit prosecuted 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.
South Yarmouth Resident Pleads Guilty to Felon in Possession of Firearm ChargeRead the Press Release
BOSTON – A South Yarmouth man pleaded guilty yesterday in federal court for possessing a firearm. Defendant barricaded himself in basement following domestic disturbance.
Michael Giampapa, 33, pleaded guilty to one count of being a felon in possession of a firearm before U.S. District Judge Richard G. Stearns who scheduled sentencing for Dec. 18, 2024.
On March 16, 2022, local police responded to a call reporting a domestic disturbance at a residence in South Yarmouth involving Giampapa and a family member. Giampapa was barricaded in the basement when police arrived. He spoke by phone with a family member and during that call, stated he has a gun. After a standoff with law enforcement, Giampapa eventually exited the residence and was arrested.
Following a search of the residence where Giampapa was staying a Smith & Wesson M&P Bodyguard loaded .380 handgun was recovered inside a cereal box that was on top of open shelving in the basement. Giampapa had previously been convicted of crimes punishable by imprisonment for a term exceeding one year.
The firearm charge provides for a maximum sentence of 10 years in prison and a period of three years of supervised release as well as a $250,000 fine. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Chief Kevin Lennon of the Yarmouth Police Department made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of the Major Crimes Unit.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
New Hampshire Man Sentenced to Eight Years in Prison for His Role in Methamphetamine Trafficking ConspiracyRead the Press Release
BOSTON – A member of a nationwide drug trafficking ring was sentenced today 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.
Eric Daneault, 48, of Manchester, N.H., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to eight years in prison to be followed by three years of supervised release. On Feb. 16, 2024, Daneault pleaded guilty to one count of a superseding indictment charging him with conspiracy to distribute and to possess with intent to distribute 500 grams or more of a mixture and substance containing methamphetamine. The superseding indictment also charged 10 other defendants with controlled substance offenses, firearm offenses and money laundering offenses.
In approximately October 2020, investigators received information about drug trafficking activities of a large-scale methamphetamine supplier in the Boston area. In late 2020, investigators identified Reshat Alkayisi as a large-scale methamphetamine trafficker who distributed multi-pound quantities to multiple co-conspirators throughout the New England area. Daneault was identified as one of Alkayisi’s methamphetamine distributors. In May 2021, Alkayisi distributed approximately over 5.3 kilograms of methamphetamine to Daneault.
Daneault is the fourth defendant to be sentenced. All other defendants have pleaded guilty and are awaiting sentencing.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Valuable assistance was provided by the Massachusetts Department of Correction; Norfolk County Sherriff’s Office; and Concord, Hudson, Peabody, Reading, Watertown and Waltham Police Departments. Assistance was also provided by the Massachusetts, Rhode Island, New Hampshire and Maine State Police. 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.
Massachusetts Business Owner Indicted for over $18 Million Paycheck Protection Program FraudRead the Press Release
BOSTON – A Carlisle man has been indicted by a federal grand jury for allegedly submitting fraudulent Paycheck Protection Program (PPP) loan applications on behalf of multiple companies he owns and controls.
Durgaprasad Rao, 65, was charged with four counts of wire fraud and three counts of money laundering. In May 2024, Rao was arrested and charge by criminal complaint.
According to the charging documents, Rao is the owner and operator of Accelerated Engineering, LLC., a product engineering service provider, and Upstream Global Services, Inc., a software company that provides software consulting services and temporary staffing needs.
It is alleged that, between April 2020 and May 2021, Rao submitted numerous fraudulent applications seeking over $18 million in PPP funds for various companies in multiple states including companies in Massachusetts, Wisconsin and Georgia. Nine of the fraudulent PPP loan applications Rao allegedly submitted were for companies he owned and controlled. For Rao’s Massachusetts-based companies, he received nearly $7 million in PPP loans – of which, one PPP loan of over $1.5 million was approved for forgiveness.
Rao’s PPP loan applications allegedly contained false statements regarding payroll and the number of employees that worked for his companies and included fraudulent supporting documents, including false tax return documents and false payroll records. It is further alleged that Rao misused the funds he received by, among other things, transferring the funds to foreign businesses he owned and purchasing a luxury condominium in New York City.
The charges of wire fraud each 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 charges of money laundering each provide for a sentence of 10 years in prison, three years of supervised release, and a fine of up to $250,000 or twice the amount of the criminally derived property involved in the transaction. 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; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division, Boston Field Office; Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Carlisle Police Chief Andrew Amendola made the announcement today. Assistant U.S. Attorneys Brian Sullivan and David Tobin of the Major Crimes 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 (NCDF) Hotline via the NCDF Web Complaint Form.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.
Former Prison Guard Pleads Guilty to Conspiring to Smuggle Drugs into Virginia PrisonRead the Press Release
BOSTON – A Virginia man pleaded guilty today to conspiring to distribute controlled substances and launder drug proceeds with co-conspirators in Massachusetts and Virginia.
Kenneth J. Owen, 24, of Charlotte Court House, Va., pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute MDMA and buprenorphine and two counts of money laundering conspiracy. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Dec. 10, 2024.
In December 2019 and January 2020, Owen conspired with Sathtra Em, a Lowell resident, and Michael Mao, an inmate at the Buckingham Correctional Center in Dillwyn, Va., to smuggle MDMA and buprenorphine in the form of Suboxone and generic Suboxone sublingual films into the prison. At the time, Owen was working as a correctional officer at Buckingham.
As part of the conspiracy, Em mailed the drugs to Owen’s residence and paid him $1,600 in bribes to deliver the drugs and other contraband to Mao in the prison. Mao then sold the smuggled drugs to other inmates at Buckingham and Em collected the drug debts on behalf of Mao in the same Cash App accounts she used to pay the bribes to Owen. Owen used a Cash App account with the name “Carlos” to receive the bribes from Em, and he cashed out the funds to his bank account within minutes of receiving them.
Em and Mao previously pleaded guilty to their roles in the conspiracy. On Aug. 14, 2024, Em was sentenced to 21 months in prison to be followed by three years of supervised release. Mao is scheduled to be sentenced on Nov. 18, 2024.
The charge of conspiracy to distribute and to possess with intent to distribute MDMA and buprenorphine provides for a sentence of 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. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000, or twice the amount of the property involved, whichever is greater. Both charges also include forfeiture of assets traceable to or involved in the distribution and laundering offenses. 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. Special assistance was provided by the Drug Enforcement Administration, the Internal Revenue Service’s Criminal Investigations and the Virginia Department of Corrections. Assistant U.S. Attorney Fred M. Wyshak, III of the Organized Crime & Gang Unit and Assistant U.S. Attorney Alexandra Amhrein of the Asset Forfeiture Unit, 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.
Former Luxury Homebuilder Sentenced for Defrauding the United StatesRead the Press Release
BOSTON – The former project manager of a now-defunct luxury home building business in West Springfield. Mass. was sentenced yesterday for conspiring to defraud the United States.
Jason Pecoy, 44, of Wilbraham, was sentenced by U.S. District Court Judge Mark G. Mastroianni to two years of probation, and a fine of $7,500. The government recommended a sentence of 21 to 27 months in prison, followed by a three-years of supervised release, and order mandatory restitution in the amount of $35,982. In June 2024, Pecoy was convicted by a federal jury of two counts of conspiracy to defraud the United States.
Jason Pecoy was previously indicted in December 2019 along with his father, Kent Pecoy, and Kevin M. Kennedy, the former owner of a golf management company, for conspiring to defraud the United States by concealing cash payments for the construction of Kennedy’s two homes in East Longmeadow and West Dennis. The defendants were later charged in a superseding indictment in January 2020.On Dec. 11, 2023, Kennedy was convicted by a federal jury of conspiracy to defraud the United States and making a false statement to a federally insured financial institution. He was sentenced to 13 months in prison, followed by three years of supervised release on April 24, 2024. On May 16, 2024, Kent Pecoy pleaded guilty to two counts of conspiracy to defraud the United States and one count of making a false statement to a federally insured financial institution. Kent Pecoy was sentenced in August 2024 to time served (one day) and two years of supervised release. He was also ordered to pay a $24,000 fine and $35,982 in restitution.
From 2009 through 2016, Kennedy conspired with Kent Pecoy, the owner of Kent Pecoy and Sons Construction Inc. (KPSC), and his son, Jason Pecoy, a KPSC project manager, to obstruct and impede the Internal Revenue Service and the collection of taxes by concealing Kennedy’s cash payments for construction of the East Longmeadow and West Dennis homes. Kennedy paid the Pecoys in cash, all of which the Pecoys failed to deposit into business bank accounts, but rather distributed the cash directly to vendors and subcontractors. When they did deposit the cash, the Pecoys deposited funds in amounts less than $10,000 to avoid the filing of currency transaction reports. The evidence proved that when the Pecoys created and maintained separate ledgers documenting Kennedy’s cash payments, created and maintained false contracts and cover sheets and created false entries in KPSC’s accounting system to conceal the cash payments.
Acting United States Attorney Joshua S. Levy and Special Agent in Charge, Harry T. Chavis Jr., Internal Revenue Service Criminal Investigation Boston Field Office made the announcement today. Assistant U.S. Attorneys Steven H. Breslow and Neil L. Desroches of the Springfield Branch Office prosecuted the case along with Trial Attorney Eric B. Powers of the Justice Department’s Tax Division.
Connecticut Man Pleads Guilty to Armed Bank RobberyRead the Press Release
BOSTON – A Connecticut man pleaded guilty yesterday in federal court in Boston to his role in a Martha’s Vineyard bank robbery.
Romane Andre Clayton, 22, of New Haven, Conn, pleaded guilty to one count of aiding and abetting bank robbery. U.S. District Court Judge William G. Young scheduled sentencing for Dec. 18, 2024. In March 2023, Clayton was indicted by a federal grand jury. Clayton was charged in a superseding indictment in April 2023.
Clayton met Omar Johnson, Tevin Porter and Miquel Jones in Martha’s Vineyard on Nov. 16, 2022 to plan a bank robbery. Jones identified the bank they would be robbing and provided the others with dark-colored clothing and plastic masks that resembled an elderly man with exaggerated facial features. On the morning of Nov. 17, 2022, the group drove to the area of the Rockland Trust Bank in Tisbury. Porter, Jones and Johnson hid in bushes near the rear of the bank, and Clayton drove their car to the Manuel Correllus State Forest. Clayton then rode a bicycle back to the bank, where he stood outside to serve as a lookout during the robbery. Clayton had a walkie talkie to communicate with the others inside the bank.
As bank employees arrived to open the bank for the day, Porter, Jones and Johnson forced their way through the rear door of the Rockland Trust Bank in Tisbury. The men were armed with two semi-automatic handguns and wearing the clothes and masks that Jones had provided. Once inside the bank, one of the individuals held a gun to the head of one of the bank employees, forced the employee to open the bank’s vault, and took approximately $39,100. The bank employees were bound with duct tape and plastic zip ties while their belongings were searched and the robbers demanded access to one of their vehicles.
Jones, Porter and Johnson then left the bank in an employee’s car, picked up Clayton outside the bank, and drove to the Manuel Correllus State Forest, where they abandoned the employee’s car in a parking lot. They then fled in the vehicle that Clayton had left there for purposes of their escape.
Porter and Clayton left Martha’s Vineyard together on a ferry later that morning. Meanwhile, Johnson and Jones drove to a local farm associated with Jones’s landscaping job to dispose of the equipment that had been used during the bank robbery. At the farm, they buried the two firearms used in the robbery in a hole in the ground and burned the remainder of the robbery equipment, including the plastic masks.
After the evidence was disposed of, Jones returned home to his residence where he hid the approximately $39,100 that had been stolen from the bank, in his bedroom under a bureau. Johnson left Martha’s Vineyard, reconvened with Porter and Clayton in Woods Hole and then drove them to the area of Johnson’s home in New Hampshire.
Jones, Johnson and Porter have all pleaded guilty and are awaiting sentencing.
The charge of bank robbery aiding and abetting 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 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 Cape & Islands District Attorney’s Office; the Massachusetts State Police; the Tisbury, West Tisbury, Edgartown, Chilmark, Oak Bluffs, Aquinnah, Canterbury (N.H.) and New Haven (Conn.) Police Departments; the United States Postal Inspection Service; the Bureau of Alcohol Tobacco and Firearms; Immigration and Customs Enforcement; and United States Customs and Border Protection. Assistant U.S. Attorney Meghan C. Cleary of the Criminal Division is prosecuting the case.
Brookline Woman Sentenced to 21 Months in Prison for Embezzling More Than $650,000 from Medical PracticeRead the Press Release
BOSTON – A former office manager of a Brookline medical practice was sentenced today for embezzling over $650,000 from the practice over several years.
Kathleen Libby, 40, of Brookline, was sentenced by U.S. District Court Judge Leo T. Sorokin to 21 months in prison to be followed by two years of supervised release. Libby was also ordered to pay restitution and forfeiture in the amount of $658,271. In May 2024, Libby pleaded guilty to one count of wire fraud.
Libby stole from the medical practice in a variety of ways, including by transferring funds from the practice to a personal PayPal account she established named “Medline Surgical Supplies.” In doing so, Libby created the false impression that transfers from the medical practice to the PayPal account were expenses the medical practice had incurred for supplies.
In addition, Libby used the medical practice’s bank account to make payments toward purchases she had made at a variety of retailers, including Louis Vuitton, Bloomingdales, Best Buy, Target and travel-related websites. Libby also placed two of her relatives on the medical practice’s payroll and used its credit cards for her own personal benefit.
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 Mackenzie A. Queenin of the Criminal Division prosecuted the case.
Brockton Man Pleads Guilty to Illegally Receiving a Firearm, Distributing Fentanyl and Possessing CocaineRead the Press Release
BOSTON – A Brockton man pleaded guilty yesterday in federal court in Boston to firearm, cocaine, fentanyl and conspiracy offenses.
Antonio Denziah Fernandes, 23, pleaded guilty to two counts of illegally receiving a firearm while under indictment, two counts of distributing and possessing with intent to distribute 40 grams or more of fentanyl, one count of possession with intent to distribute 40 grams or more of fentanyl and cocaine, and one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Indira Talwani scheduled sentencing for Dec. 10, 2024. In September 2023, Fernandez was indicted by a federal grand jury and on Sept. 11, 2024, additional charges were brought in a Superseding Information.
In late 2021, law enforcement learned that Fernandes was trafficking firearms and narcotics in the Brockton area, including large quantities of fentanyl. In January 2022, while under indictment in state court for trafficking more than 10 grams of fentanyl, Fernandes received and sold a Glock Model 48, 9mm pistol for $1,700 in the Taunton area. In each of two subsequent transactions in January and February 2022, Fernandes distributed and possessed with intent to distribute approximately 50 grams of fentanyl, for a total of approximately 100 grams. These two transactions took place in the vicinity of Fernandes’s Brockton residence.
Fernandes and a co-conspirator were storing and packaging narcotics in an abandoned van parked outside Fernandes residence and distributing them with a different vehicle. Fernandes was arrested in the passenger seat of the latter vehicle, and a loaded firearm was found wedged against his seat. Fernandes had 2.8g of fentanyl on his person.
During a search of the abandoned vehicle, large quantity of drugs was found inside including 174.7 grams of Fentanyl, 51.5 grams of cocaine, 18.2 grams of Percocet pills and eight grams of mushrooms. Twenty-seven rounds of 9mm ammunition also was recovered. The van also contained various packaging materials for narcotics, such as plastic baggies, corner cut bags, a trash bag full of various used drug packaging materials with white residue, mixing bowls with white residue and latex gloves.
The charge of illegally receiving a firearm while under indictment 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. The charges of distributing and possessing with intent to distribute 40 grams or more of fentanyl, possession with intent to distribute cocaine, and conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl each provide for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of $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 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 Cape and Islands District Attorney’s Office; the Plymouth County District Attorney’s Office; and the Brockton, Taunton, Whitman, West Bridgewater, East Bridgewater, Bridgewater and Bridgewater State University Police Departments. Assistant United States Attorney Meghan C. Cleary of the Criminal Division is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Boston Man Sentenced to 10 Years for Role in Nationwide Drug ConspiracyRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Worcester for his role in a nationwide large-scale cocaine trafficking conspiracy and for distribution of large quantities of fentanyl.
Francis Jose Perez-Baez, 41, was sentenced by U.S. District Court Judge Margaret R. Guzman to 120 months in prison, followed by five years of supervised release. In December 2024, Perez-Baez pleaded guilty to conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine, distribution and possession with intent to distribute 400 grams or more of fentanyl and distribution and possession with intent to distribute 40 grams or more of fentanyl. Perez-Baez was charged in November 2021.
Perez-Baez was a Boston-based drug distributor who distributed large quantities of cocaine and fentanyl. Perez-Baez received multiple kilograms of cocaine from a Mexico-based drug trafficking organization that utilized commercial semi-trucks to transport dozens of kilograms of cocaine throughout the United States, including to Massachusetts.
Over the course of the investigation, Perez-Baez paid the drug trafficking organization nearly $280,000 in drug proceeds for multiple kilograms of cocaine that the organization had previously supplied to him on credit. Additionally, Perez-Baez sold fentanyl to a cooperating witness on multiple occasions – over 500 grams of fentanyl in August 2020 and 200 grams of fentanyl in April 2021.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. The Drug Enforcement Administration’s Laredo and Dallas Divisions provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division is 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.
Waltham Man Sentenced to over Five Years in Prison for Child Pornography OffenseRead the Press Release
BOSTON – A Waltham man was sentenced yesterday in federal court in Boston for receiving child sexual abuse material (CSAM).
Robert Daigle, 48 was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 71 months in prison, to be followed by five years of supervised release. In June 2024, Daigle pleaded guilty to one count of receipt of child pornography.
On Jan. 11, 2022, approximately 10 electronic devices belonging to the Daigle were seized during a search of his residence. The majority of those devices were located in Daigle’s bedroom. Daigle admitted to downloading hundreds to thousands of CSAM for approximately 20 years. A forensic examination of one device was found to have approximately 1,100 child pornography images and approximately 900 child pornography videos. A second device was found to have approximately 380 child pornography images.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Waltham Police Chief Kevin O’Connell made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of the Major Crimes Unit is prosecuting 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/.
Securities Trader Pleads Guilty to Market Manipulation ConspiracyRead the Press Release
BOSTON – A securities trader pleaded guilty today in federal court in Boston to his role in a sophisticated, multi-year market manipulation conspiracy involving securities traded on exchanges within the United States, including the New York Stock Exchange and NADSAQ.
Xiaosong Wang, 36, of Upton, Mass. pleaded guilty to one count of conspiracy to commit securities fraud. U.S. Senior District Court Judge William G. Young scheduled sentencing for Dec. 17, 2024. Wang was initially charged in October 2019. Pursuant to a plea agreement, Xiaosong Wang agreed to forfeit $1,041,084 in illicit proceeds from the conspiracy and agreed to an order removing him to China upon completion of his sentence.
From approximately 2013 through at least 2018, Wang participated in the manipulative trading activity of a group of securities traders located in China and, at times, in Massachusetts. Specifically, Xiaosong Wang and his co-conspirators, including Jiali Wang, used multiple brokerage accounts in their names, and in the names of others with whom Xiaosong Wang and Jiali Wang had relationships, to artificially depress or inflate the prices of thinly traded securities. They did so by repeatedly placing relatively small sell (or buy) orders designed to send a false signal about a security’s supply (or demand) and to depress (or inflate) the security’s price. Xiaosong Wang and his co-conspirators then immediately placed relatively large buy (or sell) orders on the other side of the market to take advantage of their manipulations. Once the large orders executed, Xiaosong Wang and his co-conspirators cancelled their outstanding manipulative orders.
Jiali Wang pleaded guilty in August 2022 and was sentenced in December 2022 to time served (three months in prison) and nine months of home detention. Jiali Wang was also ordered to forfeit $7.75 million in illicit proceeds.
The charge of conspiracy to commit securities fraud provides for a sentence of up to 25 years in prison, five years of supervised release, and a fine of $250,000, or twice the gross gain or loss. 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 Securities and Exchange Commission. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Former Massachusetts State Senator Convicted of COVID and Tax FraudRead the Press Release
BOSTON – Former Massachusetts State Senator Dean A. Tran was convicted yesterday following a six-day trial for scheming to defraud the Massachusetts Department of Unemployment Assistance and collecting income that he failed to report to the Internal Revenue Service (IRS).
Tran, 48, of Fitchburg, was convicted of 20 counts of wire fraud and three counts of filing false tax returns. U.S. District Court Chief Judge F. Dennis Saylor, IV, scheduled sentencing for Dec. 4, 2024. The defendant was indicted by a federal grand jury in November 2023.
According to evidence presented at trial, Tran served as an elected member of the Massachusetts State Senate, representing Worcester and Middlesex Counties from 2017 to January 2021. After Tran’s State Senate term ended in 2021, Tran fraudulently received pandemic unemployment benefits while simultaneously employed as a paid consultant for a New Hampshire-based retailer of automotive parts (the Automotive Parts Company). While working as a paid consultant for the Automotive Parts Company, Tran fraudulently collected $30,120 in pandemic unemployment benefits.
In addition, Tran concealed $54,700 in consulting income that he received from the Automotive Parts Company from his 2021 federal income tax return. This was in addition to thousands of dollars in income that Tran concealed from the IRS while collecting rent from tenants who rented his Fitchburg property from 2020 to 2022.
“Dean Tran defrauded the government out of unemployment benefits he had no right to receive. His fraud and calculated deception diverted money away from those who were struggling to get by during a very difficult time,” said Acting United States Attorney Joshua S. Levy. “Our office and our law enforcement partners are committed to holding accountable public officials who lie and steal for personal gain.”
“Former Massachusetts State Senator Dean Tran stole taxpayer funds intended for those Americans who lost their job due to the COVID-19 pandemic. The jury’s verdict affirms the U.S. Department of Labor, Office of Inspector General’s commitment to investigate allegations of fraud involving the U.S. Department of Labor’s (DOL) unemployment insurance (UI) program. We will continue to work with our law enforcement partners to protect the integrity of the UI system from those who exploit this critical benefit program,” stated Jonathan Mellone, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, Northeast Region.
“The conviction of Dean Tran demonstrates the IRS’s commitment to the prosecution of all who choose to break the law, even elected officials,” said Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office. “Elected officials are held to a higher standard when they take an oath to serve but to Tran, his oath meant nothing when he chose to steal from the America taxpayers on two separate occasions. Tran stole from a pandemic unemployment program designed to help those most in need. Tran also showed great disdain for the American public when he willfully omitted his taxable income, the most basic of principles all Americans are expected to follow.”
“Former State Senator Dean Tran was convicted of cheating taxpayers by cashing in on a public health crisis by diverting tens of thousands of dollars meant to support those out of work due to the pandemic to himself instead,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI simply won’t stand for opportunists thinking they can defraud the federal government, lie on their taxes, and get away with it. We will continue to aggressively pursue anyone foolish enough to do so.”
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. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. 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, DOL-OIG SAC Mellone, IRS-CI SAC Chavis and FBI SAC Cohen made the announcement. Assistant U.S. Attorneys John T. Mulcahy and Dustin Chao of the Office’s Public Corruption & Special Prosecutions 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 (NCDF) Hotline via the NCDF Web Complaint Form.
Florida Man Sentenced for Role in Money Laundering ConspiracyRead the Press Release
BOSTON – A Florida man was sentenced yesterday for his for his participation in a money laundering conspiracy.
Robert Hueton Colespring, 56, was sentenced by U.S. District Court Judge Richard G. Stearns to 18 months in prison and three years of supervised release. Colespring was also ordered to pay a fine of $5,000. In May 2024, Colespring pleaded guilty to money laundering conspiracy and conducting substantive money laundering transactions.
Beginning in 2016 and continuing until 2022, an investigation into a money laundering organization based primarily in Barranquilla, Colombia was conducted. An undercover agent infiltrated the organization by portraying himself as an international money launderer able to pick up bulk cash throughout the world, launder the proceeds through his United States-based accounts and send the money to Colombia through the Black Market Peso Exchange – a common method of trade-based money laundering used to repatriate the proceeds of drug trafficking to Colombia.
Throughout the course of the investigation, members of the money laundering organization would contact the undercover agent and arrange meetings for him and his purported associates to collect cash for laundering. Individuals, such as Colespring, performed the role of money courier. On two occasions in Florida, Colespring delivered bulk cash which was then deposited into the undercover agent’s bank account in Massachusetts and then subsequently wired to accounts and repatriated back to drug traffickers in Colombia. Over the course of the conspiracy, Colespring was responsible for the laundering of approximately $599,990 in drug proceeds.
Colespring was charged in a 50-count indictment along with 19 other individuals in March 2022. Colespring is the eighth defendant to be sentenced in the case. Four other defendants have pleaded guilty and are awaiting sentencing.
Acting United States Attorney Joshua R. Levy and Stephen Belleau, Acting Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorneys Jared C. Dolan and Alathea E. Porter of the Criminal Division prosecuted 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 innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brazilian Man Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Brazilian man pleaded guilty yesterday in federal court in Boston to illegally reentering the United States after deportation.
Jose Antonio Moreira Martins Desouza, 39, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Dec. 17, 2024. In July 2024, Desouza was indicted by a federal grand jury.
Desouza was previously deported from the United States on Nov. 14, 2012. Sometime after his November 2012 removal, Desouza illegally reentered the United States. He was arrested by local police on May 22, 2023 and then detained by immigration authorities on June 26, 2024.
The charge of unlawful reentry of a deported alien provides for 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 Todd Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
Salvadoran Man Previously Deported on Eight Separate Occasions Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Salvadoran man was sentenced today for unlawfully reentering the United States after deportation.
Melvin Alexander Orellana-Martinez, 54, was sentenced by U.S. District Court Judge Richard G. Stearns to 60 months in prison. His sentence will be served concurrently with a 17-21 year state sentence he is currently serving in Massachusetts for several offenses, including multiple counts of aggravated rape, kidnapping and witness intimidation. In April 2024, Orellana-Martinez pleaded guilty to one count of unlawful reentry of a deported alien.
On eight separate occasions between July 2007 and January 2020, Orellana-Martinez was removed from the United States. Between February 2008 and March 2019, Orellana-Martinez was convicted in California and Texas federal courts on five separate occasions of either illegal reentry or improper entry.
Orellana-Martinez was last deported from the United States on Jan. 14, 2020. Sometime after his January 2020 removal, Orellana-Martinez unlawfully reentered the United States. On Jan. 6, 2023, federal immigration authorities were notified that Orellana-Martinez had unlawfully reentered the United States after he was arrested on other unrelated state charges.
Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Boston’s Field Office Director of the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit prosecuted the case.
Plymouth Man Arrested for Seven-Year-Long Cyberstalking CampaignRead the Press Release
BOSTON – A Plymouth, Mass. man was arrested today for allegedly cyberstalking a Massachusetts victim through social media, email and various online platforms. Among other things, the defendant allegedly programmed multiple artificial intelligence-driven chatbots to mimic human conversation through text or voice interactions with unknown users of social media platforms.
James Florence Jr., 36, was charged by criminal complaint with one count of cyberstalking. Florence was arrested this morning and, following an initial appearance in federal court in Boston, was detained pending a hearing scheduled for Sept. 16, 2024.
According to the charging documents, between late 2017 and up until the present, Florence is alleged to have created multiple social media accounts and email addresses which he used to harass and threaten the victim anonymously. Florence had previously met the victim through a mutual friend and attended parties at the victim’s former residence between 2015 and 2017.
It is alleged that, beginning in late 2017, Florence used anonymous social media accounts to post photographs of the victim and photographs of her underwear, which had been taken in her former residence, on various websites.
Florence allegedly posted digitally altered images depicting the victim as nude or semi-nude. He allegedly posted the victim’s personally identifiable information on these accounts and on numerous websites – including her personal email addresses, home address, professional contact information, account passwords and even a list of colors she had previously dyed her hair, in order to “dox” her.
Florence allegedly also programmed multiple artificial intelligence-driven chatbots with this information to mimic human conversation through text or voice interactions with unknown users of those platforms.
In addition to having received threatening messages from social media and email accounts believed to be controlled by Florence, the victim also received harassing and extorting communications that are believed to be from users who messaged the victim as a result of Florence’s posts encouraging them to do so. Florence would taunt the victim by creating accounts in her name, using her likeness and tagging them with phrases like “Accept It Your Exposure Is Permanent Slut” and “Enjoy Your Exposure You Naughty Bimbo. You Belong To The Internet.” Florence allegedly posted photo collages of the victim to the website, ladies.exposed, including images edited to make her appear nude or semi-nude along with all her personal identifying information and captions that encouraged viewers to “Post & Share Her Everywhere. Make The Whore Famous.”
The victim’s name, image and other personal information were posted on at least 13 websites. At least 27 unique accounts were used to harass, impersonate, or otherwise cause the victim substantial emotional distress. To date, the victim has received at least 60 distressing text messages, emails, or calls from unknown senders addressed to the victim discussing her image and information posted online through August 2024.
“The defendant’s alleged actions represent a chilling window into the dangers of online harassment and cyberstalking in the digital age. Using advanced technology to manipulate, torment, and publicly humiliate someone for years is not just reprehensible, it is criminal. No one should have to endure the kind of relentless harassment and devastating psychological toll that we allege this victim has bravely endured,” said Acting United States Attorney Joshua S. Levy. “Our office is dedicated to ensuring that individuals who exploit online platforms to stalk, harass, and exploit others are held accountable. We will continue to use every resource available to protect victims of these crimes and to bring justice to keyboard cowards who abuse the digital landscape for their own malicious purposes.”
“Today, the FBI arrested James Florence Jr. for allegedly trying to hide behind his keyboard to sadistically cyberstalk and surveille the victim in this case, inflicting immense trauma and pain on both her and her family,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division.
The charge of stalking by electronic means 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 other statutory factors.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. The Plymouth Police Department and Plymouth Fire Department provided valuable assistance in the investigation. 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 Arrested 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 arrested yesterday 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 one count of aggravated identity theft. Ware was arrested yesterday in Yonkers and following an initial appearance in federal court in New York, was released on conditions.
According to charging documents, Ware opened bank accounts in the name of a Connecticut company and one of its managing partners at a credit union in Tyngsborough, Mass. in December 2023. Shortly after opening the account, Ware deposited a United States Treasury check payable to the company and the managing partner for $810,337.68. 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. Ware allegedly returned to the Tyngsborough credit union several times 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 $1,000,000. The charge of aggravated identity theft provides 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.
Massachusetts Businessman Pleads Guilty to Million Dollar Payroll Tax Fraud SchemeRead the Press Release
BOSTON – A Dorchester man pleaded guilty today to a multi-year tax fraud scheme in which he failed to pay employment taxes for his temporary employment agency.
Det Tran, 62, pleaded guilty to two counts of failure to collect and pay over employment taxes. U.S. District Judge Leo T. Sorokin scheduled sentencing for Dec. 10, 2024.
From at least 2018 through 2021, Tran owned and operated HTP Temp. Inc. (HTP), an agency that provided temporary workers for client businesses. During that time, Tran paid $8 million in “off the books” cash wages to HTP employees. Through his concealment of these cash wages, Tran caused his accountant to prepare false quarterly filings to the IRS for HTP’s employee wages and tax withholdings between 2018 and 2021. As a result, Tran evaded more than $2.1 million in employment taxes owed to the IRS.
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 Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Federal Authorities Seize over 350 Website Domains Used to Import Illegal Switches and Silencers from ChinaRead the Press Release
BOSTON – Federal authorities in Boston seized more than 350 internet domains that were allegedly used for the illegal importation of switches and silencers from China. Switches are parts designed to convert semiautomatic pistols into fully automatic machineguns and silencers are devices used to suppress the sound of a firearm when discharged. Possession of these items and their importation from certain countries, including China, are prohibited under the National Firearms Act (NFA).
According to the court documents, in August 2023, federal authorities began targeting multiple websites, businesses and individuals selling, offering for sale, importing and exporting machinegun conversion devices in violation of federal law. It is alleged that law enforcement engaged in undercover purchases from the website domains promoting the sale of NFA-prohibited items – confirming that the domains were being used to sell illegal switches and silencers. The contraband items were then allegedly shipped from China to government-controlled mailboxes in the United States with false descriptions of their contents – such as “necklace” and “toys” – in an effort to conceal the alleged illegal importation.
“Our office remains committed to protecting our communities from the dangers posed by illegal firearms and firearm accessories, wherever the evidence takes us,” said Acting United States Attorney Joshua S. Levy. “The seizure of these domains is a critical step in disrupting the flow of dangerous contraband that threatens public safety. Those who attempt to exploit online platforms to traffic in highly lethal firearm parts will be held accountable. We will continue to pursue and dismantle these illicit networks wherever they operate to uphold the integrity of our laws and safeguard our communities.”
“These websites represent a large-scale, organized effort to import illegal switches and silencers that turn ordinary firearms into deadly automatic weapons. HSI has worked diligently with our partners to systematically dismantle this network of websites to uphold our nation’s import laws and to preserve public safety,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England. “HSI cyber investigations work to keep illegal switches and silencers out of the hands of criminals who use them to commit violence and facilitate crime in our communities.”
“The results of this investigation have, to date, resulted in the seizure of over 700 devices which would covert a firearm into a machine gun, 87 illegal suppressors, 59 handguns, 36 long guns, as well as the seizure of 355 websites which were used to facilitate the trafficking of these items. The proliferation of readily available devices which allow the illegal manufacturing of machine guns is a plague on our communities. The Postal Inspection Service is committed to working with our state and federal partners to identify those who use the Postal Service to traffic these weapons, remove these illicit items from the mail, and increase the safety of our communities and the Postal Service employees who serve them,” said Ketty Larco-Ward, Inspector in Charge, U.S. Postal Inspection Service, Boston Division
It is further alleged that many of the website domains trafficked counterfeit goods and unlawfully used the Glock, Inc. trademark by offering purported “Glock” switches for sale. In reality, however, Glock, Inc. has never manufactured switches.
Federal authorities ultimately established probable cause to seize for forfeiture more than 350 domains used in connection with the scheme to import switches and silencers in violation of the NFA and laws prohibiting trafficking in counterfeit goods. Visitors to the websites will now be directed to a landing page indicating that the domain has been seized:
Acting U.S. Attorney Levy, HSI SAC Krol and USPIS INC Larco-Ward made the announcement today. Valuable assistance in the investigation was provided by U.S. Customs and Border Protection; Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Massachusetts State Police. Glock, Inc. fully cooperated with the government’s investigation. Assistant U.S. Attorneys Alexandra W. Amrhein of the Asset Recovery Unit and Luke A. Goldworm of the Major Crimes Unit obtained the seizure warrants.
Dartmouth Woman Pleads Guilty to Embezzling from Multiple EmployersRead the Press Release
BOSTON – A Dartmouth woman pleaded guilty today in federal court in Boston to embezzling hundreds of thousands of dollars from two different employers.
Jasmyne Botelho, 41, pleaded guilty to two counts of wire fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 18, 2024. Botelho was indicted by a federal grand jury in May 2024.
Between September 2017 and April 2020, Botelho stole at least $280,000 from her employer. Specifically, Botelho directed payments purportedly intended for the company’s vendors to bank accounts she controlled and used company funds to make payments on personal credit cards and an auto loan. To hide her scheme, Botelho falsified her employer’s books and records to make it appear as though the payments had in fact been sent to legitimate vendors rather than to Botelho.
Between May 2022 and December 2023, Botelho improperly inflated her payroll from another employer by more than $160,000. She concealed her scheme by manipulating her employer’s payroll and accounting software to hide her inflated payroll as well as phony “reimbursements” she paid herself.
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 Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Bookkeeper Agrees to Plead Guilty to Tax Evasion and Disability Benefits FraudRead the Press Release
BOSTON – The former bookkeeper for an electrical and contracting business has been charged with, and has agreed to plead guilty to, concealing income from the Internal Revenue Service (IRS) and stealing disability benefits.
David Tetreault, 54, of Attleboro, has agreed to plead guilty to one count of tax evasion, one count of theft of government money and one count of wire fraud. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, Tetreault worked as a bookkeeper for a Massachusetts-based electrical contractor between 2015 and 2021. It is alleged that, during those years, Tetreault received wages in cash and used company funds to pay his personal credit card bills. Tetreault allegedly manipulated the company’s accounting records and bank statements to disguise these payments as business expenses. As a result of this alleged conduct, Tetreault underreported his personal income by at least $2.1 million, causing a loss to the IRS of over $600,000.
It is also alleged that Tetreault did not report his work for the electrical contractor or his income to the Social Security Administration and submitted false information about his employment and income to the Employees’ Retirement System of Rhode Island (ERSRI). As a result of this alleged conduct, Tetreault collected over $320,000 in Social Security Disability Insurance benefits and ERSRI disability pension benefits to which he was not entitled between 2016 and 2024.
The charge of tax evasion provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of theft of government money provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. 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 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; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Corwin Rattler, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field 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 defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Agawam Tax Preparer Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
BOSTON – An Agawam tax preparer was sentenced on Sept. 5, 2024 in federal court in Boston for filing false tax returns.
Colleen Gruska, 66, was sentenced by U.S. District Court Judge Julia E. Kobick to two months in prison followed by 12 months of supervised release with the first six months to be served in home confinement and to ordered pay $261,102 in restitution to the Internal Revenue Service. In January 2024, Gruska pleaded guilty to four counts of filing false tax returns.
Over the course of a decade, Gruska used her tax preparation service to defraud the United States by filing dozens of false tax returns for herself, her relatives, and others. In each of the tax returns, she reported business losses that were either dramatically overstated or were for businesses that did not even exist, resulting in little or no federal income tax owed by the taxpayer. For example, in her own filings, she reported $189,000 in expenses over four years for a house and yard cleaning business despite there being no actual expenses, enabling her to avoid paying $36,079 in taxes. Similarly, for a relative, she filed false tax returns that claimed a non-existent soccer coaching business with expenses totaling $233,561, thus enabling this person to avoid paying $39,599 in taxes. In total, Gruska caused a loss to the IRS of $261,102.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office prosecuted the case.
Pharmaceutical Executive Charged with Insider TradingRead the Press Release
BOSTON – An executive of a global pharmaceutical company was charged today in federal in court in Boston with allegedly earning more than $250,000 by trading on material non-public information.
Dishant Gupta, 55, of Hillsborough, N.J., was charged with one count of securities fraud. He will appear in federal court in Boston at a later date.
According to the charging documents, 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 allegedly obtained material non-public information about the fact 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 allegedly 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 allegedly purchased more than 300,000 shares of Company B across several different brokerage accounts over approximately two and a half months. It is further alleged that Gupta then sold all the shares he had acquired after Company A announced the acquisition of Company B.
Gupta allegedly earned more than $250,000 trading in securities of Company B while in possession of material non-public information.
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.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.
New Hampshire Man Sentenced for Harassing and Intimidating JournalistsRead the Press Release
BOSTON – A New Hampshire man was sentenced yesterday in federal court in Boston for his role in a conspiracy to harass and intimidate journalists employed by New Hampshire Public Radio (NHPR) and their family members.
Michael Waselchuck, 36, of Seabrook, N.H., was sentenced by U.S. District Court Judge Indira Talwani to 21 months in prison and three years of supervised release. In April 2024, Waselchuck pleaded guilty to conspiracy to commit stalking through interstate travel and using a facility of interstate commerce. Waselchuck was arrested and charged by criminal complaint in June 2023. He was later indicted along with co-defendants Eric Labarge, Tucker Cockerline and Keenan Saniatan.
In March 2022 an NHPR journalist (Victim 1) published an article detailing allegations of sexual and other misconduct by a former New Hampshire businessperson, identified in the charging document as Subject 1. Another NHPR journalist (Victim 2) also contributed to the article, which appeared on NHPR’s website during and after March 2022. In response to this reporting, Labarge – who is a close personal associate of Subject 1 – Cockerline, Waselchuck and Saniatan agreed to harass and intimidate Victims 1 and 2 and their immediate family members.
On or about May 18, 2022, Labarge solicited Cockerline to vandalize Victim 1’s parents’ home in Hampstead, N.H., and Victim 1’s home in Melrose, Mass., using bricks and red spray paint. Cockerline, in turn, recruited Waselchuck to vandalize Victim 1’s residence.
On the evening of May 20, 2022, Cockerline spray painted the word “C*NT” in large red letters on one of the garage doors of Victim 1’s parents’ home, and left a brick on the ground near the front door. Several hours later, Waselchuck threw a brick through an exterior window of Victim 1’s home and painted the phrase “JUST THE BEGINNING” in large red letters on the front of the house.
Labarge and Saniatan have pleaded guilty and are awaiting sentencing. In August 2024, Cockerline was sentenced to 27 months in prison and three years of supervised release.
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 Concord, Hampstead and Hanover, New Hampshire Police Departments, the Melrose, Massachusetts Police Department and the United States Attorney’s Office for the District of New Hampshire. Assistant U.S. Attorneys Jason A. Casey and Torey B. Cummings of the Criminal Division are prosecuting the case.
New Bedford Man Sentenced for Social Security FraudRead the Press Release
BOSTON – A New Bedford man was sentenced today in federal court in Boston for fraudulently receiving Social Security disability benefits.
Anthony Patterson, 62, was sentenced by U.S. District Court Judge Allison D. Burroughs to time served (one day) and three years of supervised release, with six months to be served in home confinement. Patterson was also ordered to pay restitution of $92,582 to the Social Security Administration (SSA). In June 2024, Patterson pleaded guilty to one count of theft of government money. Patterson was charged in May 2024.
From 2013 to 2023, Patterson collected Supplemental Security Income (SSI) benefits, which are only available to people with limited financial means. During two interviews with SSA in 2012 and 2022, Patterson made sworn false statements regarding his marital status and living situation to conceal household income and resources. As a result, he collected $92,582 in SSI benefits that he was ineligible to receive.
In addition, Patterson failed to report work and income to SSA from his business breeding and selling show bulldogs for $3,000 to $7,000 each, which also would have exceeded the resource limits for SSI.
Patterson also told SSA in 2007 that he could not lift more than 20 pounds because of restrictions from his doctor, but then participated in weightlifting competitions where he lifted over 400 pounds without informing SSA that his medical condition had improved as required for Social Security disability programs.
Acting United States Attorney Joshua S. Levy and Corwin Rattler, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit prosecuted the case.
Martha's Vineyard Man Pleads Guilty to Armed Bank RobberyRead the Press Release
BOSTON – An Edgartown man pleaded guilty yesterday in federal court in Boston to armed bank robbery and conspiracy offenses.
Miquel Antonio Jones, 33, pleaded guilty to one count of conspiracy to commit armed bank robbery, and one count of armed bank robbery and aiding and abetting. U.S. District Court Judge William G. Young scheduled sentencing for Dec. 2, 2024. In March 2023, Jones was indicted by a federal grand jury, and additional charges were brought in a superseding indictment in April 2023.
Jones met Omar Johnson, Tevin Porter, and allegedly Romane Clayton, in Martha’s Vineyard on Nov. 16, 2022 to plan the robbery. Jones identified the bank they would be robbing and provided the others with dark-colored clothing and plastic masks that resembled an elderly man with exaggerated facial features. On the morning of Nov. 17, 2022, Porter, Jones and Johnson forced their way through the rear door of the Rockland Trust Bank in Tisbury. The men were armed with two semi-automatic handguns and wearing the clothes and masks that Jones had provided. Once inside the bank, one of the individuals held a gun to the head of one of the bank employees, forced the employee to open the bank’s vault, and took approximately $39,100. The bank employees were bound with duct tape and plastic zip ties while their belongings were searched and the robbers demanded access to one of their vehicles.
Jones, Porter and Johnson then left the bank in an employee’s car, allegedly picked up Clayton outside the bank, and drove to the Manuel Correllus State Forest, where they abandoned the vehicle in a parking lot. They then fled in another vehicle that Clayton allegedly had left there for purposes of their escape.
Porter and Clayton allegedly left Martha’s Vineyard together on a ferry later that morning. Meanwhile, Johnson and Jones drove to a local farm associated with Jones’s landscaping job to dispose of the equipment that had been used during the bank robbery. At the farm, they allegedly buried the two firearms used in the robbery in a hole in the ground and burned the remainder of the robbery equipment, including the plastic masks.
After the evidence was disposed of, Jones returned home to his residence where he hid the approximately $39,100 that had been stolen from the bank, in his bedroom under a bureau. Johnson left Martha’s Vineyard, reconvened with Porter, and allegedly Clayton, in Woods Hole and then drove them to the area of Johnson’s home in New Hampshire.
Johnson and Porter have both pleaded guilty and are awaiting sentencing. Clayton is scheduled to plead guilty on Sept. 12, 2024.
The charge of armed bank robbery provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000. The charge of conspiracy to commit armed bank robbery 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 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 Cape & Islands District Attorney’s Office; the Massachusetts State Police; the Tisbury, West Tisbury, Edgartown, Chilmark, Oak Bluffs, Aquinnah, Canterbury (N.H.) and New Haven (Conn.) Police Departments; the United States Postal Inspection Service; the Bureau of Alcohol Tobacco and Firearms; Immigration and Customs Enforcement; and United States Customs and Border Protection. Assistant U.S. Attorney Meghan C. Cleary of the Criminal Division is 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.
Canadian Man Pleads Guilty to $1.4 Million Embezzlement SchemeRead the Press Release
BOSTON – A Canadian man pleaded guilty today in federal district court in Boston to embezzling more than $1.4 million from his employer and its clients.
Adil Rahman, 36, of Ontario, Canada, pleaded guilty to one count of wire fraud before United States Senior District Judge William G. Young, who scheduled sentencing for Dec. 9, 2024. Rahman was charged in July 2024.
Rahman worked in Ontario, Canada as a credit analyst for Company A – a subsidiary of a large electrical distribution and services company based in Pittsburgh. As part of his job, Rahman interacted with clients of Company A concerning invoices for the company’s services. Between November 2022 and December 2023, Rahman directed certain customers of Company A to pay their invoices via ACH transfers to his personal bank account, rather than to the account of Company A.
For example, in or about November 2022, Rahman sent an email to the accounts payable department of Company B – a nonprofit municipal corporation based in Hartford, Conn. – asking if the company would be interested in paying future invoices to Company A by ACH transfer rather than by check. When Company B agreed to do so, Rahman provided his personal account information to Company B. Thereafter, under the false impression that it was sending the money to Company A to pay the invoices it owed, Company B sent at least 15 ACH transfers to Rahman’s personal account between December 2022 and June 2023.
Likewise, in May 2023, Rahman emailed the accounts payable department at Company C – a privately held provider of corporate security systems based in Andover, Mass. – asking if Company C wished to pay future invoices by ACH transfer. Once again, when Company C agreed to do so, Rahman provided his personal bank account information and Company C thereafter made 11 ACH transfers to Rahman’s personal account between May 2023 and July 2023.
In total, through this scheme, Rahman defrauded Company A and its clients of more than $1.4 million.
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. 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 Investigations, Boston Division made the announcement. Assistant U.S. Attorney Stephen E. Frank, Chief of the Securities, Financial & Cyber Fraud Unit, is prosecuting the case.
Boston Physician Resolves Allegations of Improper Prescribing Practices Involving Controlled SubstancesRead the Press Release
BOSTON – A physician who practiced at Brigham and Women’s Hospital has agreed to pay $25,000 in civil penalties to settle allegations that he violated the Controlled Substances Act by prescribing opioid controlled substances outside the usual course of professional practice.
As part of the settlement agreement, Dr. Edgar Ross, 70, Boston, admitted that, for one patient, he prescribed a mix of controlled substances, including opioids, without always appropriately documenting the risks. Ross also provided early refills in response to the patient’s requests. After multiple hospitalizations and an overdose, the hospital arranged for another physician to take over Ross’s treatment of the patient.
As part of the settlement, Ross entered into a Memorandum of Agreement with the DEA that requires him to work with an independent compliance monitor for three years.
“Safe prescribing of drugs—particularly opioids—is essential to patient and public safety and a priority for our office,” said Acting United States Attorney Joshua S. Levy. “This settlement is an example of how our office and the DEA work to ensure that doctors prescribe dangerous medications only when they are acting within the scope of proper professional practice and with appropriate safeguards in place to prevent and address abuse. We will continue to work with our partners at the DEA to protect patients and enforce the Controlled Substances Act.”
“DEA registrants are responsible for handling controlled substances responsibly and ensuring that complete and accurate records are being properly kept and accounted for in compliance with the Controlled Substances Act,” said Acting Special Agent in Charge Stephen Belleau, Drug Enforcement Administration, New England Field Division. “We are committed to working with our law enforcement and regulatory partners to ensure that these rules and regulations are followed.”
Under the Controlled Substances Act, physicians and other prescribers registered with the Drug Enforcement Administration (the DEA) may only issue prescriptions for a legitimate medical purpose and in the usual course of professional practice.
Acting United States Attorney Levy and DEA ASAC Belleau made the announcement today. Assistant U.S. Attorney Alexandra Brazier of the Affirmative Civil Enforcement Unit handled the case.
Behavioral Healthcare Company Executive Charged with 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, was charged today in connection with a scheme to defraud health care benefit programs by directing false billing for patient visits.
Miguel Saravia, 42, was charged and has agreed to plead guilty to six counts of health care fraud. A plea hearing date has not been set.
According to the charging documents, 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. It is further alleged that 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.
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.
Roslindale Man Sentenced to Five Years in Prison for Firearm OffenseRead the Press Release
BOSTON – A Heath Street Gang member/associate involved in a shooting in residential neighborhood was sentenced on Sept. 6, 2024 in federal court in Boston for unlawfully possessing a firearm.
Deondre Blanding, 27, of Roslindale, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to five years in prison to be followed by four years of supervised release. In May 2024, Blanding pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.
Blanding was charged and arrested in February 2024, along with over 40 alleged Heath Street Gang members/associates, who were charged with racketeering conspiracy, drug trafficking, firearms and financial fraud charges. Blanding was a marijuana dealer for the Gang who distributed pound-quantity amounts of marijuana.
On Oct. 8, 2023, Blanding arranged to buy three pounds of marijuana from an individual and arrived at the deal armed with a firearm. The arranged drug deal resulted in a shooting in the middle of a Randolph neighborhood involving Blanding and two other individuals.
Acting United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; 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 Randolph Police Department. Assistant U.S. Attorneys Michael Crowley and Sarah Hoefle of the Organized Crime & Gang Unit prosecuted the case.
Owner of Three North Shore Restaurants Pleads Guilty to Tax Fraud SchemesRead the Press Release
BOSTON – A Hampton, N.H. man pleaded guilty on Sept. 6, 2024 to defrauding the Internal Revenue Service regarding federal employment taxes and the Massachusetts Department of Revenue regarding state meals taxes over a six-year period. Defendant owned and operated three restaurants: in Salem, Mass.; Peabody, Mass.; and Seabrook, N.H.
John Drivas, age 66, pleaded guilty to five counts of failure to collect and pay over employment taxes owed to the IRS and four counts of wire fraud for state meals taxes he collected from restaurant customers but failed to pay to the state Department of Revenue. U.S. District Judge Julia E. Kobick scheduled sentencing for Dec. 5, 2024.
Between January 2016 to October 2022, Drivas was the owner and operator of three restaurants: Red’s Sandwich Shop in Salem, Mass., Red’s Kitchen and Tavern in Peabody, Mass. and Red’s Seabrook in Seabrook, N.H. He was the sole shareholder of the Salem restaurant until he sold it to an employee in September 2022. He was the 100% owner of the Peabody restaurant with his wife and the 52% owner of the Seabrook restaurant with his children.
Drivas paid wages to numerous employees of the restaurants partly by payroll checks and partly in cash. He did not report the cash wages to the IRS or pay employment taxes on them. Federal tax law requires employers to withhold from any employee wages an amount for income taxes and other amounts for Social Security and Medicare taxes. Drivas caused employment tax losses of $439,341.
Drivas also collected more than $1.5 million in state meals taxes paid by restaurant customers which he failed to pay over to the state as required by law. In Massachusetts, all owners and operators of restaurants and bars are required to collect 6.25 sales taxes on meals. Salem and Peabody also require restaurants and bars to collect an additional 0.75% local option meals excise tax. Although Drivas collected the taxes from restaurant customers, he intentionally withheld $1,596,775. of those taxes from monthly reports and payments owed to the Massachusetts Department of Revenue.
The charge of failure to pay over taxes carries a maximum potential sentence of five years in prison, three years of supervised release, , a fine of $250,000 or twice the gross gain or loss and restitution. Each wire fraud charge is punishable by up to 20 years in prison, supervised release for three years, a fine of $250,000 or twice the gross gain or loss, and restitution. Sentences are imposed by the federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.Acting United States Attorney Joshua S. Levy, Harry Chavis, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office and Katherine Mulligan, Chief of Investigations for the Insurance Fraud Bureau of Massachusetts made the announcement today. Valuable assistance was provided by the Criminal Investigations Bureau of the Massachusetts Department of Revenue. Assistant United States Attorney Victor A. Wild of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Four Charged in $1 Million Health Care Fraud SchemeRead the Press Release
BOSTON – One Massachusetts resident has been indicted, and two Massachusetts residents and one New York resident have agreed to plead guilty, in connection with a scheme to defraud various health insurance companies by submitting false claims seeking reimbursement for over $1 million of bogus medical expenses purportedly incurred during international travel.
Henry Ezeonyido, 36, of Brockton, Mass., was charged with one count of conspiracy to commit health care fraud and six counts of health care fraud. Brendon Ashe, 40, of Dorchester, Mass.; Darline Cobbler, 40, of Randolph, Mass.; and Ariel Lambert, 34, of Brooklyn, N.Y., have each agreed to plead guilty to conspiracy to commit health care fraud. All four defendants were originally charged in a complaint unsealed on July 11, 2024.
According to the charging documents, from in or about October 2019 through in or about February 2022, Ezeonyido allegedly submitted fraudulent health insurance claims on his own behalf and on behalf of others, including Ashe, Cobbler, and Lambert, for expensive medical treatment that they purportedly received and paid for out-of-pocket while traveling overseas. It is alleged that many of the claims related to fake traumatic injuries such as stabbings, gunshot wounds, and hit and run car accidents that the defendants and others purportedly suffered requiring their hospitalization abroad.
Ezeonyido allegedly submitted fabricated documents to health insurance companies in support of the fraudulent claims, including fabricated medical records purporting to show the medical care received, fabricated bank records purporting to show payment to the international treatment facilities, and – where the claim related to a fake traumatic injury – fabricated police reports describing the circumstances of the alleged event. As a result of these fraudulent claims, various health insurance companies were allegedly billed over $1 million for services that were never provided. According to the charging documents, upon receiving payments from the health insurance companies, Ashe, Cobbler, Lambert and others allegedly paid a portion of the proceeds to Ezeonyido and other co-conspirators.
The charges of health care fraud and conspiracy to commit health care fraud each carry 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 United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; and Insurance Fraud Bureau Executive Director Anthony DiPaolo made the announcement today. Assistant U.S. Attorney Leslie Wright of the Health Care Fraud Unit is prosecuting the case.The details contained in the charging documents are allegations. Ezeonyido is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
West Wareham Man Charged with Child Pornography OffensesRead the Press Release
BOSTON – A West Wareham man was charged by complaint today in federal court on charges of receipt and possession of child pornography.
Joshua Roe, age 37, was arrested today on a criminal complaint charging him with one count of receipt of child pornography and one count of possession of child pornography. Roe will appear in federal court later today.
According to the criminal complaint, on Sept. 6, 2024, during a search of Roe’s home, approximately 11 electronic devices belonging to Roe were recovered. While on site, law enforcement conducted a forensic examination of at least one device, which revealed images and videos depicting child pornography.
The receipt charge 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. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy; Michael Krol, Special Agent in Charge of Homeland Security Investigations; and Walter Correia Wareham Chief of Police made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of the Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the 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 identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Stoughton Man Sentenced to over 12 Years in Prison for Mailing Fentanyl and Fentanyl TraffickingRead the Press Release
BOSTON – A Stoughton man was sentenced yesterday in federal court in Boston for his role in a wide-ranging fentanyl trafficking conspiracy. The defendant was on federal supervised release at the time that he committed the offenses, after being granted compassionate release in 2020.
Angel Morales, 53, was sentenced by U.S. District Court Judge Angel Kelley to 151 months in prison followed by five years of supervised release. In April 2024, Morales pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one count of distribution and possession with intent to distribute 400 grams or more of fentanyl. In December 2022, Morales was indicted along with co-conspirators Quenty Ogando, Erika Prado and Rahelin Reynoso.
Between September 2022 and November 2022, Morales was involved in a scheme involving a large-scale pill press operation that manufactured, sold and mailed counterfeit pills, including pills containing fentanyl, among other drugs. Morales’ role in the operation was to ship packages from post offices across Massachusetts. On multiple occasions, Morales used various post offices and FedEx facilities in Boston, Randolph, Holbrook, Quincy, Mattapan, Braintree, Milton and elsewhere to mail over 150 packages knowing that some of the packages contained controlled substances. On at least two occasions, FedEx employees opened packages pursuant to their internal procedures, and observed clear plastic sandwich bags filled with pills with markings consistent with prescription-only medication that later tested positive for fentanyl.
On multiple occasions in October and November 2022 Morales was observed leaving an apartment in Mattapan before travelling to multiple post offices and FedEx facilities. During a subsequent search of that apartment, over 20 kilograms of pills in various colors, a sample of which tested positive for fentanyl, over 20 kilograms of loose powder, a sample of which tested positive for fentanyl, numerous packages and mailing labels, electronic devices, cash and three industrial grade pill presses were recovered. In addition, fentanyl, heroin, cocaine and methamphetamine were also found at the apartment.
Morales is the fourth and final defendant to be sentenced in the case. On Jan. 31, 2024, Ogando was sentenced to 144 months in prison and five years of supervised release. In June 2024, Reynoso was sentenced to six years in prison and two years of supervised release. In April 2024, Prado was sentenced to time served with one year of supervised release.
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.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England; 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 Boston Police Department; Massachusetts State Police; United States Customs and Border Protection; Drug Enforcement Administration; and U.S. Food and Drug Administration. Assistant U.S. Attorneys J. Mackenzie Duane and Jennifer Zacks of the Narcotics & Money Laundering Unit prosecuted the case.
New Hampshire Man Pleads Guilty to Stalking JournalistsRead the Press Release
BOSTON – A New Hampshire man pleaded guilty yesterday in federal court in Boston to his role in a conspiracy to harass and intimidate two journalists employed by New Hampshire Public Radio (NHPR). The harassment and intimidation of the victims included the vandalism – on five separate occasions – of the victims’ homes and the home of one of the victims’ parents with bricks, large rocks and red spray paint.
Keenan Saniatan, 36, of Nashua, N.H., pleaded guilty to one count of conspiracy to commit stalking using a facility of interstate commerce and one count of stalking using a facility of interstate commerce. U.S. District Court Judge Indira Talwani scheduled sentencing for Dec. 6, 2024. Saniatan was initially charged in June 2023 along with co-conspirators Tucker Cockerline and Michael Waselchuck. In September 2024, Saniatan, Cockerline and Waselchick along with Eric Labarge were indicted by a federal grand jury.
In March 2022, an NHPR journalist (Victim 1) published an article detailing allegations of sexual and other misconduct by a former New Hampshire businessperson, identified in the charging document as Subject 1. Another NHPR journalist (Victim 2) also contributed to the article, which appeared on NHPR’s website during and after March 2022. In response to this reporting, Labarge – who is a close personal associate of Subject 1 – Saniatan, Cockerline and Waselchuck agreed to harass and intimidate Victims 1 and 2 and their immediate family members.
According to the indictment, on or about April 22, 2022, at Labarge’s request, Saniatan agreed to vandalize Victim 2’s home in Concord, N.H. and Victim 1’s parents’ home in Hampstead, N.H., using large rocks and red spray paint. On the evening of April 24, 2022, Saniatan spraypainted the word “C*NT” in large red letters on the front door and threw a large rock at the exterior of Victim 2’s home. He also threw a softball-sized rock through an exterior window and spraypainted the word “C*NT” in large red letters on the front of Victim 1’s parents’ home. Separately, and at Labarge’s request, Cockerline and Waselchuck vandalized Victim 1’s home, a home where Victim 1 used to reside, and Victim 1’s parents’ home using bricks and red spray paint during three separate incidents in April and May 2022.
Labarge and Waselchuck have both pleaded guilty and are awaiting sentencing. Cockerline also pleaded guilty and, in August 2024, was sentenced to 27 months in prison and three years of supervised release.
Each charge in the indictment carries a maximum sentence of up to five years in prison, three years of supervised release, a $250,000 fine and restitution. 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 Field Division made the announcement today. Valuable assistance was provided by the Concord, Hampstead and Hanover, New Hampshire Police Departments, the Melrose, Massachusetts Police Department and the United States Attorney’s Office for the District of New Hampshire. Assistant U.S. Attorneys Jason A. Casey and Torey B. Cummings of the Criminal Division are prosecuting the case.
Mexican Man Sentenced to 11 Years in Prison for Transporting 20 Kilograms of Cocaine into Massachusetts for Drug CartelRead the Press Release
BOSTON – A Mexican man was sentenced yesterday in federal court in Boston for his role in a drug trafficking conspiracy. In March 2023, 20 kilograms of cocaine was seized during a traffic stop, along with a tracking device that had been installed in the vehicle by a Mexican drug cartel.
Erasmo Lira-Mendez, 39, was sentenced by U.S. District Court Judge William G. Young to 11 years in prison, followed by five years supervised release. In May 2024, Lira-Mendez was convicted by a federal jury of conspiracy to possess with intent to distribute cocaine and possession with intent to distribute cocaine (both offenses involving five kilograms or more). Lira-Mendez was indicted by a federal grand jury in May 2023 along with his co-defendant, Cornelio Hernandez.
On March 29, 2023, in Littleton, Mass. Lira-Mendez was observed driving a car with a temporary Texas license plate that was drifting across a double yellow line. During an ensuing traffic stop, 20 kilograms of cocaine was found inside a duffle bag on the back seat of the vehicle. A subsequent investigation revealed that a private tracking device had been installed in the vehicle by the Mexican drug cartel, Cártel del Noreste. GPS data obtained from the device revealed that the two men had traveled at least 32 hours from Texas to Massachusetts – with the cocaine concealed inside the vehicle’s doors – to distribute the narcotics in Lawrence, Mass.
Hernandez pleaded guilty on April 18, 2024 and is scheduled to be sentenced on Sept. 24, 2024.
Acting United States Attorney Joshua S. Levy and Stephen P. Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance was provided by the Littleton Police Department. Assistant U.S. Attorneys Samuel R. Feldman and K. Nathaniel Yeager of the Narcotics & Money Laundering Unit are prosecuting the case.
New York Man Pleads Guilty to Hacking, Credit Card Trafficking and Money Laundering ConspiraciesRead the Press Release
BOSTON – A New York City man pleaded guilty today to conspiracies to engage in computer hacking, trafficking in stolen payment card numbers and money laundering.
Vitalii Antonenko, 32, pleaded guilty before United States District Judge William G. Young to one count of conspiracy to gain unauthorized access to computer networks and to traffic in unauthorized access devices, and one count of money laundering conspiracy. Antonenko was arrested and detained in March 2019 on money laundering charges at New York’s John F. Kennedy International Airport after he arrived there from Ukraine carrying computers and other digital media that held hundreds of thousands of stolen payment card numbers. He was indicted by a federal grand jury in May 2020. Judge Young scheduled sentencing for Dec. 10, 2024.
Antonenko and co-conspirators scoured the internet for computer networks with security vulnerabilities that were likely to contain credit and debit card account numbers, expiration dates, and card verification values (Payment Card Data) and other personally identifiable information (PII). They used a hacking technique known as a “SQL injection attack” to access those networks without authorization, extracted Payment Card Data and other PII, and transferred it for sale on online criminal marketplaces. Once a co-conspirator sold the data, Antonenko and others used Bitcoin as well as traditional bank and cash transactions to launder the proceeds in order to disguise their nature, location, source, ownership and control. The conspiracy’s victims included a hospitality business and non-profit scientific research institution, both located in eastern Massachusetts.
The charge of conspiracy to gain unauthorized access and to traffic in access devices provides for a sentence of up to five years in prison, three years of supervised release, a $250,000 fine, restitution and forfeiture. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a $500,000 fine, restitution and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office and made the announcement today. Assistant U.S. Attorney Seth B. Kosto Deputy Chief of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Colombian Man Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Colombian man pleaded guilty yesterday to illegally reentering the United States after deportation.
Fabian Lopez Mejia, 31, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Denise J. Casper scheduled sentencing for Oct. 22, 2024. In June 2024, Lopez Mejia was indicted by a federal grand jury.
Lopez Mejia was previously removed from the United States in November 2019. Sometime after his removal, Lopez Mejia returned to the United States. In October 2023, Lopez Mejia pled guilty in Suffolk Superior Court to one count of possession with intent to distribute a Class B substance and one count of forgery/misuse of an RMV document.
The charge of unlawful reentry of a deported alien provides for a sentence of up to two years in prison, 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 and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney John J. Reynolds III of the Major Crimes Unit is prosecuting the case.
Boston Man Pleads Guilty to Escape from Residential Re-Entry CenterRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to leaving a residential re-entry center where he was serving the remainder of his federal sentence for drug possession.
Derek Rego, 37, pleaded guilty to one count of escape before U.S. District Court Judge Nathaniel M. Gorton who scheduled sentencing for Dec. 12, 2024. In September 2020, Rego was indicted by a federal grand jury.
In September 2012, Rego was sentenced in federal court in Boston to 120 months in prison for distribution of cocaine. On Jan. 8, 2020, Rego was transferred from a correctional institution to a residential re-entry center (“RRC”) in Boston to serve the remainder of his sentence until his release date in June 5, 2020.
Prior to that date, in October 2019, Rego signed the furlough application which notified him, in part, that while on furlough status, he remains in the custody of the Attorney General. While residing at the RRC, Rego was permitted to work and was employed. On March 25, 2020, after informing the RRC that two co-workers tested positive for COVID-19, Rego was instructed to quarantine for 14 days at an approved “pass site” location and told that he would receive random phone calls and pass site visits to ensure his compliance. Rego was informed that after his 14-day quarantine ended on April 9, 2020, he was required to return to the RRC. Initially, Rego was compliant. However, on April 3, 2020, RRC staff attempted an in-person spot check at Rego’s temporary pass site and placed several calls to Rego’s landline and personal cell phone with negative results. Rego never returned to the RRC and his whereabouts were unknown for almost one month. On May 4, 2020, Rego was arrested in Boston on unrelated state domestic violence charges.
The charging statute provides for a mandatory minimum sentence of five years in prison, up to 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; Brian Kyes, United States Marshal for the District of Massachusetts; and Boston Police Commissioner Michael Cox made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of the Major Crimes Unit is prosecuting the case.
Serial Violent Robber Sentenced to over Six Years in Prison for Robbing Multiple Spas at GunpointRead the Press Release
BOSTON – A Malden, Mass. man was sentenced yesterday in Boston federal court for his role in the armed robberies of two businesses in which he and two others beat, dragged and duct-taped victims.
Li Wen Tang, 33, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 78 months in prison and three years of supervised release. In April of 2024, Tang plead guilty to two counts of robbery affecting commerce, after a jury convicted one of Tang’s co-defendants, Alfeu Barbosa, in March of 2024 for the same offenses. Barbosa was arrested and charged in June 2022. Tang and Jonas Nunez were later arrested and charged in August and September 2022. All three defendants were subsequently indicted by a federal grand jury.
On June 12, 2022 at approximately 8:51 p.m., Tang entered the Balance Reflexology Spa in Brookline pretending to be a customer seeking a massage. Because the victim was the only employee in the spa that night, she locked the door before taking Tang into the back room to begin the massage. Tang asked the victim if there was anyone else in the spa and that if there was, he would like to see them. Almost immediately after the massage had begun, Tang claimed that he no longer wanted a massage because his stomach was upset and demanded a refund. The victim employee stated she had to call her boss to approve the refund. While the victim employee was on the phone in the lobby, Tang unlocked the front door and two masked men – later identified as Barbosa and Nunez – entered the business carrying firearms. One of the men hit the victim employee in the face, knocking her to the floor and put a gun to her head. Barbosa and Nunez then pulled the victim by her hair into the back hallway where they instructed her to be quiet. There, the men proceeded to bind the victim’s wrists and ankles with duct tape and gag her. As they were doing this, Barbosa and Nunez repeatedly yelled at the victim asking, “Where is the money?” The men ransacked the spa for roughly three minutes before locating and stealing approximately $500 along with the victim employee’s cell phone and then exiting. Surveillance footage revealed that all three men had arrived in the same vehicle parked nearby, which they drove away in together following the robbery.
Later that evening, at approximately 10:19 p.m. on June 12, 2022, Barbosa, Nunez and an associate of Barbosa committed a similar robbery of May’s Spa Massage in Stoneham. Specifically, they entered the business wearing masks and firearms and duct-taped several victims who were in the spa at the time. In addition to stealing approximately $600 in cash from the business and victims, Barbosa, Nunez and Barbosa’s associate took three cell phones belonging to three of the female victims present during the robbery, as well as a victim’s license, gift cards and credit and debit cards before leaving in the same vehicle.
Nunez pleaded guilty and was sentenced on April 18, 2024 to 23 months in prison to be followed by three years of supervised release. Barbosa who was convicted by a federal jury and sentenced on July 17, 2024 to 121 months in prison to be followed three years of supervised release.
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 Federal Bureau of Investigation in New York; the Massachusetts State Police; as well as the Brookline, Stoneham, Boston, Wakefield and New York City Police Departments. Assistant U.S. Attorneys Luke A. Goldworm and Robert E. Richardson of the Major Crimes Unit are prosecuting the case.
Quincy Man Sentenced to over One Year in Prison for Hate CrimeRead the Press Release
BOSTON – A Quincy man was sentenced today for committing a hate crime.
John Sullivan, 78, was sentenced by U.S. District Court Judge Denise J. Casper to 18 months in prison, followed by three years of supervised release. In April 2024, Sullivan pleaded guilty to one count of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. Sullivan was indicted by a federal grand jury in February 2023.
On Dec. 2, 2022, Sullivan encountered an Asian American group he had never met before outside a post office in Quincy. Sullivan yelled to the group, which included three children under the age of 12, to “go back to China,” and threatened to kill them. He then drove his car into one of the adult members of the group, causing the victim to land on the hood of the moving car and remain there while Sullivan drove the car approximately 200 feet in traffic. After Sullivan slammed on his brakes, stopping the car abruptly and causing the victim to slide off, Sullivan again accelerated, hitting the victim a second time and causing him to fall face first into a 10-foot-deep construction ditch and suffer injury.
“Every single man, woman and child living in Massachusetts has a fundamental right to be free from acts of hate and violence. The conduct here is truly despicable and this office will dedicate whatever resources are needed to vigorously prosecute these types of hate crimes. Fueled by his hate of Asian-Americans, John Sullivan twice used his car to strike and injure an innocent man. He engaged in these acts of hate in front of the victim’s friends, including three children under the age of 12, who all watched in horror,” said Acting United States Attorney Joshua S. Levy. “These violent acts of hate spread fear throughout our community and will never be tolerated.”
“Racially-motivated and hate-fueled attacks have no place in our society,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant targeted this man solely because he was Asian American. This behavior will not be tolerated, and the Justice Department is steadfast in its commitment to vigorously prosecute those who commit unlawful acts of hate.”
“A run of the mill trip to the post office turned into a nightmare for this Vietnamese man when John Sullivan decided to target him because of the color of his skin and the country of his ancestors. There is no way to undo the damage Mr. Sullivan caused with his hateful, repulsive, and violent behavior, but hopefully today’s sentence provides some measure of comfort,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation Boston Division. “All communities in our Commonwealth – deserve respect and the ability to live, work, and raise their children without fear. We encourage anyone who has been the victim of or witness to a hate crime to report it to the FBI.”
Acting U.S. Attorney Levy, AAG Clarke, FBI SAC Cohen and Chief Mark Kennedy of the Quincy Police Department made the announcement today. Valuable assistance was provided by the Quincy Police Department and the Norfolk County District Attorney’s Office. Assistant U.S. Attorney Torey B. Cummings of the Civil Rights & Human Trafficking Unit and Tara Allison of the Department of Justice’s Civil Rights Division prosecuted the case.
Massachusetts Man Sentenced for Hate Crime Against Asian American ManRead the Press Release
A Massachusetts man was sentenced today to 18 months in prison, followed by three years of supervised release for a federal hate crime.
On April 3, John Sullivan pleaded guilty to willfully causing bodily injury to a victim, identified in court papers only by his initials, G.N., through the use of a dangerous weapon (a vehicle), because of G.N.’s actual and perceived race and national origin.
“Racially motivated and hate-fueled attacks have no place in our society,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant targeted this man solely because he was Asian American. This behavior will not be tolerated, and the Justice Department is steadfast in its commitment to vigorously prosecute those who commit unlawful acts of hate.”
“Every single man, woman and child living in Massachusetts has a fundamental right to be free from acts of hate and violence,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “The conduct here is truly despicable, and this office will dedicate whatever resources are needed to vigorously prosecute these types of hate crimes. Fueled by his hate of Asian-Americans, John Sullivan twice used his car to strike and injure an innocent man. He engaged in these acts of hate in front of the victim’s friends, including three children under the age of 12, who all watched in horror. These violent acts of hate spread fear throughout our community and will never be tolerated.”
“A run of the mill trip to the post office turned into a nightmare for this Vietnamese man when John Sullivan decided to target him because of the color of his skin and the country of his ancestors. There is no way to undo the damage Mr. Sullivan caused with his hateful, repulsive and violent behavior, but hopefully today’s sentence provides some measure of comfort,” said Special Agent in Charge Jodi Cohen of the FBI Boston Field Office. “All communities in our Commonwealth – deserve respect and the ability to live, work, and raise their children without fear. We encourage anyone who has been the victim of or witness to a hate crime to report it to the FBI.”
According to documents filed in connection with this case, Sullivan encountered G.N., who is Vietnamese, and other individuals he was with, who are also Asian American, outside a post office. Sullivan had never met the victim or the group before. In front of the group’s three children under the age of twelve, Sullivan yelled for them to “go back to China,” threatened to kill them — pointing in turn members of the group, including two of the children, and separately telling them, “I’m going to kill you” — and twice drove his car into G.N., causing G.N. to land on the hood of the moving car and remain there while the car moved approximately 200 feet while keeping pace with traffic. Eventually Sullivan stopped the car, causing G.N. to fall into a construction ditch and suffer bodily injury and pain.
The FBI Boston Field Office investigated the case.
Assistant U.S. Attorney Torey Cummings for the District of Massachusetts and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division prosecuted the case.
Brooklyn Man Pleads Guilty to Bank Fraud and Identity TheftRead the Press Release
BOSTON – A Brooklyn, N.Y. man pleaded guilty today in connection with a scheme to steal over $3 million in COVID relief tax credits using the stolen identity of a corporate executive in New Jersey.
Isaac Aaron Tenryk, 28, pleaded guilty to bank fraud and aggravated identity theft. U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 12, 2024. Tenryk was arrested and charged in May 2024.
Tenryk used a fraudulent driver’s license as well as the name and Social Security number of a corporate executive in New Jersey to open an account at a bank in Boston. He then deposited an approximately $3 million Employee Retention Tax Credit check, payable to the corporate executive’s company, into the fraudulent account.
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 charge of aggravated identity theft provides for a mandatory two years in prison in addition to any sentence imposed on the bank fraud charge, 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; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division, Boston Field Office; and Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division made the announcement today. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Boston Woman Pleads Guilty to Fraudulently Obtaining COVID-Relief FundsRead the Press Release
BOSTON – A Boston woman pleaded guilty yesterday in federal court in Boston 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.
Jameela Gross, 28, pleaded guilty to one count of wire fraud. U.S. District Court Judge William G. Young scheduled sentencing for Dec. 5, 2024. Gross, a Heath Street Gang member/associate, was 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.
In April 2021, Gross submitted a fraudulent PPP loan application on behalf of her purported business. The application contained multiple false statements, including false representations regarding the purported business’s total gross income in 2020 and the purpose of the loan. Gross also submitted false tax records in support of her loan applications. Based on the fraudulent application, Gross received approximately $18,750, which she then spent on non-business-related expenses.
The Coronavirus Aid, Relief, and Economic Security Act created a temporary loan program directed at small businesses called the Paycheck Protection Program. 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.
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. 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 for Homeland Security Investigations in New England; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; 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.
President of Florida-Based Investment Firm Pleads Guilty to Role in Unregistered Broker SchemeRead the Press Release
BOSTON – The president of a now-defunct investment firm targeting retail investors pleaded guilty yesterday to assisting an unregistered broker who sold securities in exchange for an undisclosed commission of approximately 40 percent.
Clinton Greyling, 49, of Tamarac, Fla., pleaded guilty to one count of aiding and abetting an unregistered broker. Greyling was charged in an Information filed July 30, 2024. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Dec. 11, 2024.
Greyling was the president of Trends Investments, Inc., a now-shuttered Florida-based company that sold securities of fledgling public companies that were engaged in mergers. Between February 2017 and June 2019, Trends sold shares of multiple companies to retail investors throughout the United States. Greyling touted the companies as promising because they were supposedly about to enter new and exciting business lines, including in therapeutic cannabinoids and blockchain technology. To sell the securities, Trends engaged a former registered broker, who solicited prospective customers to buy shares by falsely holding himself out as a broker and wealth manager and by telling customers that the securities were promising investments. At Greyling’s direction, Trends paid the individual—who was no longer registered as a broker with the U.S. Securities & Exchange Commission, as required—an undisclosed commission of approximately 40 percent, totaling over $800,000 on over $1.9 million in sales. Greyling further assisted the individual by providing positive information about the companies, including information about when the companies’ securities would purportedly begin active trading on the over-the-counter market. Trends, however, ultimately did not timely deliver shares to customers and the promised investment returns did not materialize. The shares sold to investors were ultimately worthless as a practical matter, as the customers were generally unable to deposit or trade them in a timely manner.
The charge of aiding and abetting an unregistered broker provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $5,000,000. 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. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.