District of Massachusetts
Press releases recorded for this federal judicial district.
New Hampshire Man Sentenced in Harvard University Bomb Extortion CaseRead the Press Release
BOSTON – A Manchester, N.H., man was sentenced today in federal court in Boston for making a series of extortionate bomb threats against Harvard University. The extortionate threats caused the evacuation of Harvard’s Science Center Plaza and surrounding academic buildings, and the controlled detonation of what was later determined to be a hoax device on April 13, 2023.
William A. Giordani, 55, was sentenced by U.S. District Court Judge Angel Kelley to three years of probation. In January 2024, Giordani pleaded guilty to one count of concealing a federal felony.
In the early afternoon of April 13, 2023, Giordani placed a large tool bag, which concealed a locked safe containing fireworks and electrical wires, in the center of Harvard’s Science Center Plaza, where students and others had gathered. Shortly thereafter, a caller, using a voice changing app to conceal his identity, called the Harvard University Police Department (HUPD) and said that he had placed three bombs on the Harvard campus. The caller demanded an unspecified amount in Bitcoin to prevent the remote detonation of the bombs. In several ensuing calls, the caller told HUPD that he was serious about his demands and that they could find the first bomb in the Science Center Plaza.
HUPD discovered the device planted by Giordani, next to a bench in the center of Science Center Plaza and issued an emergency evacuation order of the area and nearby buildings. A responding bomb squad from the Cambridge Police Department assessed and disabled the device. No additional devices were found on campus that day.
A subsequent investigation revealed that Giordani had been recruited to join the extortion scheme via a craigslist.org advertisement. Once Giordani knew he had been recruited to assist in an extortionate bomb scheme, he had an obligation under federal law to report that scheme to authorities. Instead, he deleted incriminating text messages, told his girlfriend not to speak to anyone about it and went on the run from police.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation Boston Division; Harvard University Police Chief Victor Clay; and Cambridge Police Commissioner Christine Elow made the announcement. Assistance was provided by the Nashua (N.H.) Police Department. Assistant U.S. Attorney John T. McNeil of the National Security Unit prosecuted the case.
Connecticut Man Pleads Guilty to Selling Fraudulently Obtained Gold CoinsRead the Press Release
BOSTON – A Connecticut man pleaded guilty yesterday to fraudulently obtaining more than 100 gold coins and then transporting them outside of Massachusetts.
William Dawson, 52, pleaded guilty to on one count of interstate transportation of property taken by fraud. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for June 18, 2024. Dawson was arrested and charged in October 2023.
Dawson held himself out as a property buyer and reseller. Person-1 operated a home cleanout business in Massachusetts that sold property contained in decedent estates. In or around December 2022, Person-1 was retained by a decedent estate to clean out a residence in Shrewsbury. In that home, Person-1 found 170 Queen Elizabeth II Canadian Gold Maple Leaf Coins, collectively worth approximately $290,000. With approval from the estate, Person-1 agreed to sell 120 of the gold coins to Dawson.
In January 2023, Dawson met with Person-1 in Millbury and purchased the 120 gold coins with two checks totaling $198,800. However, Dawson had significantly less than $198,800 in the relevant bank account when he wrote the checks to Person-1. Later that same day, Dawson called Person-1, falsely claiming that his car had been broken into and that the gold coins had been stolen. The next day, Dawson traveled to a pawn shop in Pawtucket, R.I. where he sold 43 of the gold coins in exchange for $80,442. On several occasions in February 2023, Dawson traveled to a pawn shop in Cranston, R.I., where he sold 19 more of the gold coins in exchange for a total of approximately $35,094.
The charge of interstate transportation of property taken by fraud, provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement today. Valuable assistance was provided by the Milford Police Department and the Worcester County District Attorney’s Office. Assistant U.S. Attorney Brendan O’Shea of the Worcester Branch Office is prosecuting the case.
Pittsfield Man Charged with Transporting a Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
BOSTON – A Pittsfield man was indicted last week by a federal grand jury in Springfield for transporting a minor with intent to engage in sexual activity.
Paul Newton-Irelan, 50, was indicted on one count of transportation of a minor with intent to engage in criminal sexual activity. Newton-Irelan will make an initial appearance in Springfield federal court at a later date.
The indictment alleges that on Nov. 26, 2023, Newton-Irelan transported the minor victim to New York and Massachusetts with the intent that the victim engage in sexual activity.
The charge of possession of transportation of a minor with intent to engage in criminal sexual activity provides for a sentence of no less than 10 years in prison, no less than five years of supervised release, and a $250,000 fine.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Assistant U.S. Attorney Catherine G. Curley of the Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. 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 https://www.justice.gov/psc.
Former Operator of Two Municipal Golf Courses Sentenced to Prison for Tax Conspiracy and Making False StatementRead the Press Release
BOSTON – The former operator of two municipal golf courses in Western Massachusetts was sentenced yesterday in federal court in Springfield for conspiring to defraud the United States and making a false statement.
Kevin M. Kennedy, 45, of East Longmeadow was sentenced by U.S. District Court Judge Mark G. Mastroianni to 13 months in prison, followed by three years of supervised release and restitution to be determined at a later date. The government argued for a sentence of 21-27 months in prison, followed by three years of supervised release and restitution in the amount of $351,565. On Dec. 11, 2023, Kennedy was convicted by a federal jury for conspiracy to defraud the United States and making a false statement to a federally insured financial institution. The defendant was acquitted of embezzlement from a local government receiving federal benefits, wire fraud, money laundering and unlawful monetary transactions.
“Stealing from the taxpayers is far from a victimless crime. It diverts scarce resources that are needed to fund important services like education and elder care and public safety,” said Acting United States Attorney Joshua S. Levy. “Every honest law abiding citizen is a victim of this type of embezzlement from the city.”
“Today’s sentencing of Kevin Kennedy demonstrates that no one is above the law,” said Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office. “Kennedy’s status as a professional golfer could not insulate him from the consequences of his actions to defraud the America taxpayers. Today’s sentencing demonstrates IRS Criminal Investigations commitment to investigating all financial crimes and ensuring equity in our tax system.”
Kennedy owned and operated Kennedy Golf Management Inc., through which he managed the City of Springfield’s two public golf courses, Franconia Golf Course and Veterans Memorial Golf Course. Kennedy skimmed money from the company without reporting that money to the IRS. According to court documents and evidence presented at trial, Kennedy conspired with two individuals to evade taxes he owed on money received from his company. Kennedy used a substantial amount of cash to pay for the construction of two custom homes in East Longmeadow and on Cape Cod. To induce the bank to provide him a mortgage for part of the East Longmeadow home, Kennedy submitted a home purchase contract to the bank that falsely reflected a total purchase price reduced by the $160,000 cash downpayment he had made.
Just prior to trial, Kennedy also pleaded guilty to four counts of filing a false individual income tax return for 2011 through 2014, during which he also admitted to filing a false return in 2009 and 2010. For each of those years, Kennedy did not report to his return preparer all of the cash and checks his management company received from his operation of the golf courses.
Acting U.S. Attorney Levy; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and IRS SAC Chavis made the announcement today. Assistant U.S. Attorneys Steven H. Breslow and Neil L. Desroches of the Springfield Branch Office and Trial Attorney Eric B. Powers of the Justice Department’s Tax Division prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Fall River Police Officer Sentenced to over Two Years in Prison for Assaulting Man in Custody and Filing False ReportsRead the Press Release
BOSTON – A former Fall River Police Officer was sentenced today for assaulting a man in custody with a baton and failing to report the assault in subsequent reports.
Nicholas M. Hoar, 37, was sentenced by U.S. District Court Judge Allison D. Burroughs to 33 months in prison, followed by one year of supervised release. In February 2024, Hoar was convicted of one count of deprivation of rights under color of law and two counts of false reports.
On Dec. 21, 2020, while on duty as an officer with the Fall River Police Department, Hoar struck an individual who had been arrested in the forehead with a 22-ounce, steel, expandable police baton, resulting in an injury to the arrestee that required stitches. Hoar then submitted two official police reports which omitted any mention of the fact that he had struck the arrestee in the forehead with a baton; in one of the reports Hoar falsely blamed the victim’s injury on a fall.
“Police officers take an oath to uphold the law and the vast majority of men and women in uniform bravely protect and serve the public across this District each and every day,” said Acting United States Attorney Joshua S. Levy. “Nicholas Hoar violated his oath and broke the law. This lengthy prison sentence sends a message to the entire community that we will continue to hold members of law enforcement accountable when they violate a person’s civil rights.”
“What Nicholas Hoar did is indefensible and a serious divergence from the oath he took to faithfully serve and protect the citizens of Fall River,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “There is no question police officers have a challenging job, but it doesn’t give them the right to beat someone in their custody and lie about it. Those under arrest retain the same civil rights you and I do. Know that the FBI is determined to defend those rights, and root out corrupt law enforcement officers, on behalf of the vast majority who carry out their duties with honor.”
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Assistant U.S. Attorneys Kristina E. Barclay and John J. Reynolds III of the Criminal Division are prosecuting the case.
Former Berklee College of Music Student Sentenced to Prison for Threatening Individual Promoting Democracy in ChinaRead the Press Release
BOSTON – A former Berklee College of Music student, who is a citizen of the People’s Republic of China (PRC), was sentenced today for stalking and threatening an individual who posted fliers around campus in support of democracy in China.
Xiaolei Wu, 26, was sentenced by U.S. District Court Judge Denise J. Casper to nine months in prison and three years of supervised release. In January 2024, Wu was convicted by a federal jury on one count of cyberstalking and one count of interstate transmissions of threatening communication.
“Mr. Wu’s criminal conduct is very serious. He harnessed the fear of potential retribution from the PRC government to harass and threaten an innocent individual who had posted an innocuous, pro-democracy flier on the Berklee campus. Mr. Wu’s violent threats achieved his goal of instilling fear in his effort to silence this brave victim and others who might want to speak out against the PRC government,” said Acting United States Attorney Joshua S. Levy. “Our office and the Department of Justice will not tolerate efforts to intimidate and threaten people to suppress their First Amendment rights. Censorship and repression campaigns will never be tolerated here.”
“Today, Xiaolei Wu learned there are serious consequences for harassing, threatening, stalking, and infringing on a fellow student’s constitutional rights solely because she was critical of the ruling Communist Party of China,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “What Mr. Wu did – in weaponizing the authoritarian nature of the People’s Republic of China to threaten this woman – is incredibly disturbing. We’d like to thank her for her bravery in coming forward, and remind others that the FBI will do everything it can to ensure that those who try to infringe on our fundamental rights – will face similar consequences.”
On Oct. 22, 2022, while Wu was attending the Berklee College of Music, an individual posted a flier on or near the Berklee College of Music campus which said, “Stand with Chinese People,” as well as, “We Want Freedom,” and “We Want Democracy.” Beginning on or about Oct. 22, 2022 through Oct. 24, 2022, Wu made a series of communications via WeChat, email and Instagram directed towards the victim who posted the flier. Among other things, Wu said, “Post more, I will chop your bastard hands off.”
Wu told the victim that he had informed the public security agency in China about the victim’s actions and that the public security agency in China would “greet” the victim’s family. Additionally, Wu solicited others to find out where the victim was living and publicly posted the victim’s email address in the hopes that others would abuse the victim online. Wu also told the victim that he had reported the victim’s information back to a member of the Chinese government.
Acting U.S. Attorney Levy, FBI SAC Cohen and Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division made the announcement today. Assistant U.S. Attorneys Timothy H. Kistner and Alathea E. Porter of the National Security Unit prosecuted the case with the assistance of Counterintelligence and Export Control Section Trial Attorney Menno Goedman.
Abington Man Pleads Guilty to Oxycodone ConspiracyRead the Press Release
BOSTON – An Abington man pleaded guilty yesterday in federal court in Boston to conspiring to distribute oxycodone pills.
Kenneth Veiga, 32, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone pills. U.S. District Court Judge Denise J. Casper scheduled sentencing for July 18, 2024. Veiga was originally indicted by a federal grand jury in August 2023.
Between November 2022 and May 2023, intercepted communications revealed that Veiga and others were involved in an oxycodone drug trafficking organization. Specifically, Veiga allegedly obtained oxycodone pills from co-conspirator Cristan Russell who redistributed to others. During a search of Veiga’s previous residence in July 2023, oxycodone pills along with a polymer-80 9 mm pistol and nine rounds of commercially manufactured ammunition were seized. Additionally, fentanyl pills, oxycodone pills and approximately $58,000 were seized during a separate search of Veiga’s current apartment.
The charge of conspiracy to distribute and to possess with intent to distribute oxycodone pills provides for a sentence of up to 20 years in prison, at least three years and up to lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives; United States Coast Guard Investigative Service; Barnstable County Sheriff’s Office; and the Barnstable, Dennis, Bourne, Falmouth, Mashpee, Yarmouth and Sandwich Police Departments. Assistant U.S. Attorney John T. Mulcahy of the Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging document are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Former Weymouth Police Officer Pleads Guilty to Assaulting a Man During an ArrestRead the Press Release
BOSTON – A former Weymouth Police officer pleaded guilty today to assaulting a man in custody by punching him multiple times without legal justification.
Justin Chappell, 43, pleaded guilty to one count of deprivation of rights under color of law. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for July 16, 2024. Chappell was charged on April 3, 2024.
On July 2, 2022, Chappell was a police officer for the Weymouth Police Department. While on duty, he responded to a call regarding an allegedly intoxicated man causing a disturbance at a home in Weymouth. Chappell placed a man under arrest, and while attempting to put the man in the police cruiser, Chappell punched the man approximately 13 times with a closed fist without legal justification. The punches caused obvious pain and visible injuries to the man’s head.
The charge of deprivation of rights under color of law resulting in bodily injury provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy 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 Weymouth Police Department and the Norfolk County District Attorney’s Office. Assistant U.S. Attorneys Torey B. Cummings and Neil J. Gallagher Jr. of the Criminal Division are prosecuting the case.
Boston Man Sentenced to Five Years in Prison for Offense Involving 24 Kilograms of CocaineRead the Press Release
BOSTON – A Boston man was sentenced today for attempting to receive 24 kilograms of cocaine intended for distribution.
Eddy Javier Guerrero, 32, was sentenced by U.S. District Court Judge Allison D. Burroughs to five years in prison followed by four years of supervised release. In January 2023, Guerrero pleaded guilty to one count of attempt to possess with intent to distribute 500 grams or more of cocaine.
In June 2022 in El Paso, Texas, a confidential source received 23.9 kilograms of cocaine from a drug-trafficking organization (DTO) based in Mexico. A member of the Mexican DTO subsequently instructed the confidential source to transport the cocaine to Massachusetts. However, the drugs were intercepted by law enforcement and replaced with “sham” cocaine for the delivery to the Massachusetts recipient – later identified as Guerrero. On July 1, 2022, in Boston, Guerrero arrived to receive the cocaine delivery, for which he provided an envelope containing $15,100 in exchange. He was immediately taken into custody.
Acting United States Attorney Joshua S. Levy and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Special assistance was provided by the Boston Police Department. Assistant U.S. Attorney Samuel R. Feldman of the Narcotics & Money Laundering Unit prosecuted the case.
Springfield Man Arrested for Distributing FentanylRead the Press Release
BOSTON – A Springfield man has been arrested on drug related charges involving fentanyl.
Emilio Garcia-Cappas, 27, was indicted on one count of conspiracy to distribute 40 or more grams of fentanyl and one count of distribution and possession with intent to distribute fentanyl. Garcia-Cappas was arrested yesterday and, following an appearance in federal court in Springfield, was detained pending a hearing scheduled for a later date.
According to the indictment, between Feb. 5, 2024 and Feb. 22, 2024, Garcia-Cappas allegedly conspired to distribute and possess with intent to distribute 40 or more grams of fentanyl. The indictment further alleges that on Feb. 12, 2024, Garcia-Cappas distributed and possessed with intent to distribute fentanyl.
The charge of conspiracy to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $2 million. The charge of distributing and possessing with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, up to 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 United States Attorney Joshua S. Levy; Springfield Police Superintendent Lawrence Akers; and Brian A. Kyes, United States Marshal for the District of Massachusetts made the announcement. Assistant U.S. Attorney Todd E. Newhouse of the Springfield Branch Office 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.
Gang Member Who Posed on Snapchat with Firearms Sentenced to over Two Years in PrisonRead the Press Release
BOSTON – A Boston man was sentenced today to illegally possessing a firearm and ammunition while under house arrest for four state firearm charges.
Dumari Shakur Scarlett-Dixon, 22, was sentenced today by U.S. District Court Chief Judge F. Dennis Saylor IV to 27 months in prison and three years of supervised release. In October 2023, Scarlett-Dixon pleaded guilty to being an unlawful drug user in possession of a firearm and ammunition.
In 2021, as part of an investigation into violent crime in Boston, a Snapchat account was intercepted through a court order. Among the communications intercepted was a group “chat” comprised of members of rival gangs who regularly displayed images and videos of themselves in possession of firearms. Scarlett-Dixon, a member of Heath Street, a violent Boston gang, participated in the group chat. At the time he was intercepted, Scarlett-Dixon was on pre-trial release for four separate unlawful possession of a firearm cases in state court. As a condition of his release for those offenses, Scarlett-Dixon had been placed on home confinement with GPS monitoring at his grandmother’s residence in Weymouth. Scarlett-Dixon displayed images of himself on Snapchat in possession of firearms at his grandmother’s residence:
During a September 2021 search of Scarlett-Dixon’s grandmother’s residence, a Bersa 9-millimeter semi-automatic pistol, 59 rounds of 9 millimeter and .380 caliber ammunition, and blunts of marijuana were seized from Scarlett-Dixon’s bedroom.
As a condition of his supervised release, Scarlett-Dixon was ordered to stay away from Heath Street gang members and the Bromley Heath housing development.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Special assistance in the investigation was provided by the Boston, Quincy and Lynn Police Departments and the Suffolk County Sheriff’s Department. Assistant U.S. Attorney Christopher Pohl of the Narcotics & Money Laundering Unit prosecuted the case.
The operation was conducted is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Provincetown Man Arrested for Possessing and Distributing Child PornographyRead the Press Release
BOSTON – A Provincetown man was arrested today for child pornography offenses. The defendant allegedly possessed several thousand image and video files containing child sexual abuse material (CSAM).
Laurence Pagnoni, 63, was charged with one count of possession of child pornography and one count of distribution of child pornography. Following an initial appearance in federal court in Boston this afternoon before U.S. District Court Magistrate Judge Jennifer C. Boal, Pagnoni was released on conditions, including home detention with electronic monitoring.
According to the charging documents, an individual arrested in a child exploitation sting reported to law enforcement that, in March of 2023, Pagnoni allegedly distributed CSAM to him via the online cloud storage platform Mega. It was determined that Pagnoni had allegedly sent thousands of CSAM files to this individual. During a search of Pagnoni’s home in Provincetown in May of 2023 a number of items, including Pagnoni’s cellphone, were seized. During a subsequent search of Pagnoni’s cellphone, it is alleged that several thousand image files and video files containing CSAM, including at least 51 known series of CSAM as identified by the National Center for Missing and Exploited Children, were discovered.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, at least three years of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a of up to 20 years in prison, at least three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Suffolk County District Attorney’s Office. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. 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 https://www.justice.gov/psc.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Framingham Man Sentenced to Seven Years in Prison for Illegally Possessing Firearm in Furtherance of Drug TraffickingRead the Press Release
BOSTON – A Framingham man was sentenced today in federal court in Boston to unlawfully possessing a firearm in furtherance of a drug trafficking crime.
Edwin Alago, 43, was sentenced by U.S. District Court Judge Denise J. Casper to seven years in prison and three years of supervised release. In December 2023, Alago pleaded guilty to one count of possessing a firearm in furtherance of a drug trafficking crime.
In May 2021, Alago was found by police inside a car that was parked outside of a Framingham business. The lights were on and the car was running, but Alago was unresponsive and did not appear to be breathing. Officers roused Alago, removed him from the car and found that he was in possession of Xanax, gabapentin and cocaine. Alago’s fingerprints were also found on a SCCY .9mm CPX-2 semi-automatic pistol that was in the car. The gun had a defaced serial number and was loaded with seven rounds of .9mm ammunition. Alago was combative and spit on police officers.
Alago was charged in Framingham District Court with possession of a Class E substance (Xanax and gabapentin), possession of a Class B substance (cocaine) and assault and battery on a police officer. He pleaded guilty to these charges in October 2023 and was sentenced to 30 days in prison to run concurrent with the federal sentence imposed today.
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 Middlesex County District Attorney’s Office and the Framingham Police Department. Assistant United States Attorneys Meghan C. Cleary and Brian Sullivan of the Major Crimes Unit prosecuted 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 violent crime and gun violence, 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.
Oklahoma Man Arrested for Allegedly Throwing Pipe Bomb at Satanic Temple in Salem, Mass.Read the Press Release
BOSTON – An Oklahoma man was arrested and charged today for allegedly throwing a pipe bomb at The Satanic Temple (TST) in Salem, Mass.
Sean Patrick Palmer, 49, of Perkins, Okla., was charged in a criminal complaint with using an explosive to cause damage to a building used in interstate or foreign commerce. Palmer was arrested this morning and will make an initial appearance in the Western District of Oklahoma on Thursday. He will appear in federal court in Boston at a later date.
According to the charging documents and TST’s website, TST is a “non-theistic organization” founded in 2013 and headquartered in Salem, Mass. In addition to serving as the organization’s headquarters, TST’s Salem location also functions as a public, TST-themed art gallery.
At approximately 4:14 a.m. on April 8, 2024, surveillance cameras outside TST captured a man walking towards TST wearing black pants, and black jacket, a black face covering, a tan-colored tactical vest and gloves. According to the charging documents, as the man approached TST, he ignited a pipe bomb—a type of improvised explosive device or “IED”—threw it at TST’s main entrance, and then ran away. Seconds later, the pipe bomb partially detonated causing minor fire and related damage to TST’s exterior.
According to the charging documents, the pipe bomb appeared to have been constructed from a section of plastic pipe covered with metal nails, which were attached to the pipe with tape. The inside of the pipe was filled with a powder-like substance, preliminarily identified as smokeless gunpowder. A single human hair was allegedly located on the pipe bomb containing a DNA profile from a Caucasian male.
A six-page handwritten note was found in a flower bed adjacent to where the pipe bomb was discovered. Among other things, the letter allegedly stated:
DEAR SATANIST
ELOHIM SEND ME 7 MONTHS AGO TO GIVE YOU
PEACEFUL MESSAGE TO HOPE YOU REPENT. YOU SAY
NO, ELOHIM NOW SEND ME TO SMITE SATAN AND I
HAPPY TO OBEY. AND ELOHIM WANT ME TO CONTACT
YOU TO TELL YOU REPENT. TURN FROM SIN. ELOHIM
NO LIKE THIS PLACE AND PLAN TO DESTROY IT. MAYBE
SALEM TOO? ELOHIM SEND ME TO FIGHT CRYBABY
SATAN, BUT WANT ME TO MAKE HARD EFFORT SO NO
ONE DIES. I OBEY.
Surveillance footage obtained during the investigation identified a black Volvo sedan, allegedly registered to Palmer, driving erratically in the immediate vicinity of TST both before and after the incident.A photograph of Palmer, who is a Caucasian male, posted to a social media website shows him wearing a tan-colored tactical vest like the vest worn by the suspect in the TST surveillance video. Palmer also allegedly comments frequently on a social media website about religious matters and themes similar to those contained in the handwritten note found outside of TST on April 8, 2024.
Finally, the charging document alleges that on April 3, 2024, Palmer purchased PVC pipe and matching PVC end cap—like the pipe and end cap used to construct the pipe bomb—from a home improvement retailer in Oklahoma.
The charge of using fire or an explosive to cause damage to a building used in interstate or foreign commerce provides for a sentence of at least five years and 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; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Lucas J. Miller, Chief of the Salem Police Department made the announcement today. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Massachusetts State Police; Federal Bureau of Investigation’s Oklahoma City Field Office; Payne County Sherriff’s Office; Oklahoma Highway Patrol; the United States Attorney’s Office for the Western District of Oklahoma; and Stillwater (Okla.) Police Department. Assistant U.S. Attorney Jason A. Casey of the National Security Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Leader of Catalytic Converter Crew Pleads Guilty; Final Defendant to PleadRead the Press Release
BOSTON – The leader of a regional organized theft crew who orchestrated the thefts of catalytic converters from nearly 500 vehicles across the region, multiple jewelry store robberies and the stealing of ATMs pleaded guilty yesterday in federal court in Boston.
Rafael Davila, a/k/a “Robbin Hood,” 35, of Springfield, Mass, pleaded guilty to conspiracy to transport stolen property in interstate commerce; interstate transportation of stolen property; conspiracy commit money laundering, conspiracy to commit bank theft; and bank theft. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for July 30, 2024.
In April 2023, Rafael Davila was arrested and charged along with six others in connection with the theft, transportation and sale of stolen catalytic converters taken from nearly 500 vehicles across Massachusetts and New Hampshire in 2022 through April 2023. It is believed that a significant number of additional thefts have not been identified or were not ever reported to law enforcement.
According to court filings, there has been a precipitous decline in catalytic converter thefts reported in Massachusetts as a result of the April 2023 takedown – with less than 15 reported incidents of catalytic converter theft over the past 11 months following the arrests, in comparison to the hundreds of thefts reported during the nine-month period prior.
Catalytic converter theft has become a nationwide problem due to the high-valued precious metals they contain – some of which are more valuable than gold, with black-market prices being more than $1,000 each in recent years. The theft of a vehicle's catalytic converter results in damage that renders the vehicle inoperable – both mechanically and legally under EPA regulations – until properly replaced.
The crew was led by Davila, who engaged in catalytic converter thefts and burglaries on a full-time basis – committing thefts multiple nights per week for upwards of eight hours a night. Davila was responsible for the planning of and transportation to each targeted theft – using his vehicle, determining price values for stolen converters and purchasing needed materials. Davila maintained meticulous notes accounting for the locations that he and his co-conspirators had targeted and the number of catalytic converters that had been stolen, including the makes and models and when they were dropped off for sale.
The thefts resulted in losses of approximately $5,000 per vehicle with certain trucks costing over $10,000 to repair. This amounts to an approximate $2 million in losses suffered by more than 300 separate victims who were forced to deal with their vehicles being disabled for potentially weeks on end. The more than 300 victims included businesses and individuals across Massachusetts and parts of New Hampshire, including a food pantry, automotive businesses, tradesmen, a bakery, single parents, a home healthcare provider and the elderly. Some businesses were repeatedly targeted on multiple nights.
Once in possession of the stolen catalytic converters, the crew would then sell them to Jose Torres, who would accumulate stolen catalytic converters from multiple theft crews and then in turn sell them to scrap dealers – transacting approximately $30,000 to $80,000 in stolen catalytic converters per week. Torres then sold stolen catalytic converters to scrap dealers who have since been charged federally for interstate transportation of stolen property and money laundering in the District of Connecticut, the Eastern District of California and Northern District of Oklahoma. Rafael Davila admitted to conspiring with Torres to transact in the stolen catalytic converters.
In addition to the catalytic converter thefts, Davila also admitted to conspiring to steal from ATMs of federally insured banks in Massachusetts on three separate occasions in December 2022. This conspiracy involved the use of stolen trucks and chains to rip the ATMs from the ground and gain access to the vault.
Rafael Davila also admitted to committing burglaries of two New Hampshire jewelry stores on Jan. 12, 2023, and the theft of a trailer on Dec. 14, 2022. Davila admitted to breaking into the stores by smashing the glass doors and breaking the jewelry cases and stealing the jewelry. The combined total value of the jewelry stolen during the burglaries was determined to be over $137,000, with each store facing approximately $10,000 in costs to repair the resulting damage.
Rafael Davila is the seventh and final defendant charged in Operation Cut & Run to plead guilty. All six of his co-defendants have pleaded guilty - three of whom have since been sentenced, each to more than three years in prison. The three remaining defendants are awaiting sentencing.
The charge of conspiracy to transport stolen property in interstate commerce provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of interstate transportation of stolen property provides for a sentence of up to 10 years, up to three years of supervised release and a fine of up to $250,000. The charge of conspiracy to commit bank theft 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 charge of bank theft provides for a sentence of up to 10 years, up to three years of supervised release and a fine of up to $250,000. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $500,000 or twice the value of the proceeds, 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; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Kevin Gallagher, Director of Operations for the National Insurance Crime Bureau, Northeast Region made the announcement today. Valuable assistance was also provided by the United States Attorney’s Offices for the Districts of Connecticut, Rhode Island, Northern District of Oklahoma and the Eastern District of California; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Plymouth County District Attorney’s Office; and the New England State Police Information Network. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
Over 70 local police departments in Massachusetts, New Hampshire and Connecticut contributed to this investigation through the submission of their investigations of catalytic converter thefts in their jurisdiction. The Massachusetts Police Departments contributing to the investigation were Abington, Acton, Andover, Auburn, Bedford, Bellingham, Beverly, Billerica, Burlington, Bridgewater, Canton, Carver, Chelmsford, Concord, Cranston, East Hampton, Easton, Fitchburg, Framingham, Franklin, Gardner, Hampton, Hanover, Haverhill, Hingham, Holliston, Holyoke, Hudson, Ipswich, Lawrence, Leominster, Lynn, Malden, Mansfield, Medford, Marlborough, Methuen, Middleton, Milford, Millbury, Needham, Newton, Northborough, Norwell, Norwood, Peabody, Pembroke, Plymouth, Randolph, Rockland, Sharon, Shrewsbury, Springfield, Sterling, Sturbridge, Sudbury, Tyngsborough, Walpole, Waltham, Watertown, West Bridgewater, Weymouth, Wilmington, Woburn and Worcester. The New Hampshire Police Departments contributing to the investigation were Bow, Concord, Derry, Hooksett, Hudson, Londonderry, Manchester, Salem, Windham. The Connecticut Police Departments contributing to the investigation were South Windsor and Windsor.
IRS Revenue Agent Indicted for Filing False Tax ReturnsRead the Press Release
BOSTON – A Revenue Agent for the United States Internal Revenue Service (IRS) was indicted yesterday by a federal grand jury in Boston for allegedly filing false personal tax returns for three years.
Ndeye Amy Thioub, 67, of Swampscott, was indicted on three counts of filing false tax returns and three counts of filing false tax returns as an employee of the United States. Thioub was previously arrested and charged by criminal complaint in March 2024.
According to the charging documents, Thioub was hired in 2006 as an Internal Revenue Agent in the IRS Large Business and International Division. As a Revenue Agent, Thioub planned and conducted examinations of tax returns using extensive and specialized knowledge of accounting techniques, practices and investigative audit techniques to examine and resolve various tax issues of individuals and business organizations. As a result of her education, training and experience, Thioub was highly knowledgeable about tax law. In addition, Thioub received yearly training in IRS Employee Tax Compliance, which instructs that IRS employees must comply with their tax obligations, including timely filing accurate tax returns and payment of taxes due.
It is alleged that Thioub filed false personal tax returns for tax years 2017, 2018 and 2019. It is further alleged that, for each year, Thioub filed a false Schedule C claiming a business loss from a purported “import and export” business she claimed to have. As a result, the claimed net loss was carried over to her personal IRS Form 1040s and used to reduce Thioub’s adjusted gross income and ultimate tax liability.
The charge of filing a false tax return provides for a sentence of up to three years in prison, followed by one year of supervised release and a $100,000 fine. The charge of filing a false tax return by an employee of the United States provides for discharge from employment and a sentence of up to five years in prison, followed by one year of supervised release and a $10,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Christopher J. Gust, Acting Special Agent in charge of the U.S. Department of Treasury Inspector General for Tax Administration, Northeast Field Division made the announcement today. Assistant U.S. Kristina E. Barclay of the Public Corruption & Special Prosecutions 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.
Salem Man and Lynn Man Pleaded Guilty to Counterfeit Pill Trafficking ConspiracyRead the Press Release
BOSTON – Two men pleaded guilty last week in federal court in Boston to participating in a North Shore-based drug trafficking organization (DTO) that allegedly distributed tens of thousands of counterfeit prescription pills containing fentanyl and methamphetamine.
Kion Shepherd, 33, of Salem and Raymond Kulakowski, 36, of Lynn pleaded guilty to one count each of conspiring to distribute and to possess with intent to distribute controlled substances. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencings for July 25, 2024 and September 3, 2024, respectively.
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. Shepherd and Kulakowski are the eighth and ninth defendants to plead guilty 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 Beverly, Everett, Peabody, Revere, Salem, Saugus and Swampscott Police Departments. Assistant U.S. Attorneys James E. Arnold and Evan D. Panich of the Narcotics & Money Laundering 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.
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.
Oxford Man Pleads Guilty to Drug ChargesRead the Press Release
BOSTON – An Oxford, Mass. man pleaded guilty last week to his role in a large-scale drug trafficking conspiracy that allegedly distributed fentanyl and cocaine in and around the Quincy and Weymouth areas.
Chaasad Cyprien, 23, pleaded guilty to possession with intent to distribute cocaine and to conspiracy to distribute and possess with intent to distribute cocaine. U.S. District Court Judge William G. Young scheduled sentencing for July 17, 2024.
Cyprien was charged in September 2022, along with Aderito Amado, Neylton Fontes and Erica Vieira. Cyprien possessed with intent to distribute cocaine and participated in a conspiracy to distribute cocaine in Quincy and Weymouth until at least January 2021. Cyprien is the first defendant to plead guilty. The remaining defendants have pleaded not guilty and are pending trial.
The charge of possession with intent to distribute cocaine and conspiracy to distribute and possession with intent to distribute provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy 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 Plymouth County Sheriff’s Department; Plymouth and Weymouth Police Departments; and FBI’s Metro Boston Gang Task Force. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Philip A. Mallard 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.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Owner of Medford Construction Company Pleads Guilty to Tax Crimes and Making False StatementsRead the Press Release
BOSTON – A former Quincy man pleaded guilty last week to a tax fraud scheme that resulted in a tax loss of approximately $2,824,577 and making false statements about a fatal workplace accident.
Mauricio Baiense, 57, pleaded guilty to one count of conspiracy to defraud the United States, seven counts of failure to collect and pay over taxes, one count of aiding and assisting in the preparation of a false tax return and one count of making false statements. U.S. Senior District Court Judge William G. Young scheduled sentencing for July 19, 2024. In August 2022, Baiense was indicted by a federal grand jury.
Baiense owned and operated Contract Framing Builders, Inc. (CFB), a Medford-based construction business. Baiense was responsible for filing CFB’s quarterly employment tax returns and collecting and paying IRS payroll taxes withheld from the wages of the company’s employees. From approximately 2013 through 2017, Baiense facilitated having approximately $11 million worth of checks drawn on CFB’s corporate bank account to purported subcontractors, which were in fact nominee entities controlled by him. Baiense then cashed or directed others to cash the checks at a check cashing business and used the money to operate an “off-the-books” cash payroll for CFB’s employees. Baiense did not report the cash wages to the IRS and did not pay employment taxes on wages paid to employees in cash. Baiense also assisted in the preparation of at least one fraudulent employment tax return that understated the actual wages paid to CFB’s employees.
When questioned under oath at a U.S. Department of Labor Occupational Safety and Health Administration hearing regarding a fatal workplace accident pertaining to an employee of Baiense’s company, Baiense made false statements to a federal investigator - falsely claiming that the deceased employee did not work for him.
The charge of conspiracy to defraud the United States 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 failure to collect and pay over taxes each provide 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 charge of aiding and assisting in the preparation of a false tax return provides for a sentence of up to three years in prison, up to one year of supervised release and a fine of up to $250,000. The charge of making a false statement provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division; Galen Blanton, Regional Administrator of the Department of Labor OSHA Region 1; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General in Boston made the announcement. Valuable assistance was provided by the Department of Homeland Security, OSHA Criminal Investigations Team, Region 1; and the Department of Labor, Office of Inspector General. Assistant U.S. Attorney David Tobin of the Major Crimes Unit and Trial Attorney Thomas F. Koelbl of the Justice Department’s Tax Division are prosecuting the case.
Malden Man Sentenced for Distributing Fentanyl and Using and Trafficking Stolen Identities and Credit CardsRead the Press Release
BOSTON – A Malden man was sentenced last week in federal court in Boston to distributing fentanyl and using stolen identities to conduct transactions and obtain credit cards.
Derick Coulanges, a/k/a/ “Casa,” 38, as sentenced by U.S. District Court Judge Indira Talwani to 42 months in federal prison followed by three years of supervised release. In January 2024, Coulanges pleaded guilty to distribution and possession with intent to distribute fentanyl; possession of five or more identification documents with intent to use them unlawfully; and use of and trafficking in unauthorized access devices with intent to defraud to obtain property valued over $1,000.
In January and February 2023, Coulanges was recorded selling a cooperating witness 50 grams of fentanyl in Coulanges’ Mercedes Benz. In the recordings, Coulanges also offered to procure counterfeit driver’s licenses for the cooperating witness that contained stolen personal identifying information (PII). Coulanges would go on to explain the manner in which a counterfeit driver’s license bearing stolen PII could be utilized to open bank accounts and obtain credit cards to purchase items.
In March 2023, during a search of Coulanges’ Malden apartment, which he had obtained using a drug customer’s stolen identity, approximately 28 grams of methamphetamine was located. During a search of Coulanges’ Mercedes Benz, six driver’s licenses bearing stolen PII and one counterfeit license that bore Coulanges’ photograph with stolen PII of an individual from Ohio were recovered. A subsequent investigation revealed that the individuals associated with the driver’s licenses had been the victims of identity theft and had bank accounts and credit cards opened in their name. The counterfeit driver’s license bearing Coulanges’ photograph had been used to open bank accounts, apply for loans and obtain credit cards. Surveillance footage was located depicting Coulanges opening the accounts and then utilizing the fraudulently obtained credit cards to conduct transactions at various retailers, including at two jewelry stores where he purchased approximately $12,000 in jewelry.
Coulanges’ stole the identities of 17 victims, including a handful of his drug customers. The other stolen identities were from victims from across the United States. The Mercedes Benz that Coulanges owned was obtained through a fraudulent loan that he coerced one of his drug customers to obtain. Coulanges also procured a luxury apartment through a fraudulent loan application using the stolen identity and license of another drug customer.
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. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the case.
"John Doe" Pleads Guilty and Discloses IdentityRead the Press Release
BOSTON – A defendant charged under the pseudonym “John Doe” pleaded guilty last week to fraud charges. In addition to pleading guilty, the defendant admitted that his true name is Jose Then.
Jose Then, age unknown, pleaded guilty to mail fraud; false statement in an application for a passport; misuse of a social security number; and aggravated identity theft. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 10, 2024. Then was indicted by a federal grand jury in October 2023.
Then acquired the name and identity of an individual and has been using the victim’s name, date of birth and Social Security for decades. Then used the victim’s stolen personal identifying information to acquire a U.S. passport, a Massachusetts driver’s license and receive thousands of dollars in Pandemic Unemployment Assistance (PUA) benefits. The victim has suffered garnishment of his wages for child support costs that Then has failed to pay under the stolen identity.
The charge of misuse of a social security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. The charge of false statement in a passport application 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 mail fraud provides for a sentence of up to 20 years in prison, three years supervised release and a fine of up to $250,000. The charge of aggravated identity theft calls for a mandatory minimum sentence of two years in prison to be added to the felony committed while using the means of identification of another without lawful authority. 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 Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was provided by Homeland Security Investigations in Santo Domingo, Dominican Republic; Puerto Rico Department of Public Safety; U.S. Department of Labor, Office of Inspector General; U.S. Department of State’s Diplomatic Security Service; U.S. Department of Health & Human Services, Office of Inspector General; U.S. Postal Inspection Service; Massachusetts State Police Fraud Identification Unit; and the Weymouth and Quincy Police Departments. Assistant U.S. Attorney Brian Sullivan of the Major Crimes Unit is prosecuting the case.
The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
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.Lowell Man Arrested for Child Pornography OffensesRead the Press Release
BOSTON – A Lowell man has been arrested for child pornography offenses.
Steven Armando Estrada Ramirez, 21, was charged with receipt and possession of child sexual abuse material (CSAM). Estrada Ramirez made an initial appearance in federal court in Boston yesterday.
According to the charging documents, Estrada was identified as a participant in multiple groups on a mobile chat application, in which the primary purpose of the group, is for users share and view CSAM. It is alleged that multiple files located within those chat application groups depicted child pornography. During a search of his residence, Estrada was found to be in possession of a USB drive containing approximately 800 video files, many of which had filenames descriptive of child pornography, and the majority of which depicted child pornography. The files allegedly depicted children who appeared to be approximately one to eight years old.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Assistant U.S. Attorney Lauren Maynard of the Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. 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 https://www.justice.gov/psc.
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.
Worcester Man Pleads Guilty to Passport Fraud and Illegal ReentryRead the Press Release
BOSTON – A Worcester man pleaded guilty yesterday to using a stolen identity to apply for a United States passport after he had unlawfully reentered the United States following deportation.
Rohan Andrew Brown, 56, pleaded guilty to one count of unlawful reentry of a deported alien and one count of passport fraud. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for July 17, 2024.
Brown, a native of Jamaica, was previously deported in August 2002 after a conviction in Connecticut for unlawful restraint in the first degree. Sometime after his removal, Brown unlawfully reentered the United States. In 2012, Brown unlawfully obtained a passport by using the identity of a United States Citizen. Over the following years, Brown continued to use that stolen identity to obtain drivers licenses in California and Ohio. In March 2022 and May 2023, Brown attempted to renew the passport using the same fraudulent identity.
The charge of unlawful reentry of a deported alien 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 passport fraud provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Matthew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; 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 Kristen M. Noto of the Worcester Branch Office is prosecuting the case.
Watertown Man Sentenced to over Two Years in Prison for African Sports Ponzi SchemeRead the Press Release
BOSTON – A Watertown man was sentenced yesterday in federal court in Boston for defrauding investors who believed they were financing lucrative sports ventures in Africa.
Adrian Kawuba, 34 was sentenced by United States Senior District Court Judge William G. Young to 27 months in prison, followed by three years of supervised release. Kawuba was also ordered to pay restitution of more than $625,000, forfeiture of more than $2.2 million and to pay a special assessment of $400. In December 2023, Kawuba pleaded guilty to four counts of wire fraud.
Kawuba told his victims that he would invest their money in short-term financing of youth sports ventures in Africa and elsewhere and that he would personally guarantee their investments. In fact, Kawuba did not invest any of the victims’ funds. Instead, Kawuba used the money to pay for luxury goods and to pay purported returns to his investors – in some instances re-paying a victim’s earlier investment with money victims had sent Kawuba for a new investment. The scheme involved at least 26 fraudulent deals, and involved more than $2.2 million in victim funds, of which Kawuba kept more than $625,000.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Watertown Police Department provided valuable assistance. Assistant U.S. Attorney Kriss Basil of the Office’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Telemedicine Nurse Practitioner Sentenced for $7.8 Million Durable Medical Equipment Fraud SchemeRead the Press Release
BOSTON – A Virginia-based nurse practitioner was sentenced yesterday in federal court in Boston in connection with a $7.8 million telemedicine fraud scheme involving medically unnecessary durable medical equipment (DME), including orthotics such as back and knee braces.
Daphne Jenkins, 64, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 18 months in prison followed by two years of supervised release, with the first year to be served in home confinement. Jenkins was also ordered to pay $3,952,761 in restitution. In November 2023, Jenkins pleaded guilty to one count of conspiracy to commit health care fraud.
Between December 2018 and April 2020, Jenkins worked with a purported telemedicine company to sign orders for medically unnecessary durable medical equipment (DME). These DME orders were pre-populated by telemarketing companies that called Medicare beneficiaries to solicit their information. Through DocuSign, Jenkins signed these DME orders even though she did not have any contact with the beneficiaries and did not have a provider-patient relationship with them. Often Jenkins signed these DME orders without reading them. For instance, one packet was 16 pages long and contained multiple orders for orthotics. Jenkins electronically signed her name 12 times and completed the orders in approximately 32 seconds. A second packet was 37 pages long and contained multiple orders for orthotics. Jenkins electronically signed her name 24 times and completed the orders in approximately 45 seconds. Once Jenkins signed these orders, the telemarketing company sold them to DME suppliers, which then submitted claims to Medicare. As a result of Jenkins’ participation in this conspiracy, over $7.8 million in claims were submitted to Medicare for DME that was medically unnecessary, based on false documentation and tainted by kickbacks.
Acting United States Attorney Joshua S. Levy; Roberto Coviello, Special Agent in Charge, Health and Human Services-Office of Inspector General; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigations, Boston Division; Ketty Larco-Ward, Inspector in Charge, United States Postal Inspection Service, Boston Division; Carol S. Hamilton, Regional Director, Employee Benefits Security Administration, U.S. Department of Labor; and Patrick Hegarty, Special Agent in Charge, Defense Criminal Investigation Service, North East Field Office made the announcement today. Assistant U.S. Attorneys Lauren Graber and Howard Locker of the Health Care Fraud Unit and Alexandra Brazier and Lindsey Ross of the Affirmative Civil Enforcement Unit prosecuted the case.
Member of Catalytic Converter Crew Sentenced to Nearly Four Years in Federal PrisonRead the Press Release
BOSTON – A Springfield man was sentenced yesterday in federal court in Boston for his role in a regional organized theft crew that stole catalytic converters from over 490 vehicles. It is alleged that the crew also stole from ATMs and jewelry stores.
Zachary Marshall, 26, was sentenced by U.S. District Court Judge Leo T. Sorokin to 47 months in federal prison to be followed by three years of supervised release. In November 2023, Marshall pleaded guilty to conspiracy to transport stolen property in interstate commerce and interstate transportation of stolen property.
In April 2023, Marshall was arrested and charged along with six others in connection with the theft, transportation and sale of stolen catalytic converters taken from at least 496 vehicles across Massachusetts and New Hampshire in 2022 through April 2023 alone. It is believed that a significant number of additional thefts have not been identified or were not ever reported to law enforcement.
Marshall participated in thefts of catalytic converters from 100 vehicles over the course of 10 separate instances between Jan. 19, 2023 and April 6, 2023 – most of which targeted vehicles in more than one municipality over the course of a single night.
According to court filings, there has been a precipitous decline in catalytic converter thefts reported in Massachusetts as a result of the April 2023 takedown – with only seven reported incidents of catalytic converter theft over the past 12 months following the arrests, in comparison to the hundreds of thefts reported during the nine-month period prior.
Catalytic converter theft has become a nationwide problem due to the high-valued precious metals they contain – some of which are more valuable than gold, with black-market prices being more than $1,000 each in recent years.
The thefts in this case resulted in losses of approximately $5,000 per vehicle with certain trucks costing over $10,000 to repair. This amounts to an approximate $2 million in losses suffered by more than 300 separate victims who were forced to deal with their vehicles being disabled for potentially weeks on end. The more than 300 victims included businesses and individuals across Massachusetts and parts of New Hampshire, including a food pantry, automotive businesses, tradesmen, a bakery, single parents, a home healthcare provider and the elderly. Some businesses were repeatedly targeted on multiple nights.
Once in possession of the stolen catalytic converters, the crew would then sell them to Jose Torres, who would accumulate stolen catalytic converters from multiple theft crews and then in turn sell them to scrap dealers in the Northeast – transacting approximately $30,000 to $80,000 in stolen catalytic converters per week. The stolen catalytic converters were then sold to scrap dealers who have since been charged federally for interstate transportation of stolen property and money laundering in the District of Connecticut, the Eastern District of California and Northern District of Oklahoma
Additionally, in February 2023 Marshall, and allegedly, co-defendant Rafael Davila broke into to a self-storage facility in Northborough. During this break-in, Marshall stole items from storage units and stole a truck containing approximately $13,000 worth of Milwaukee brand power tools. A high-speed chase from law enforcement took place that evening reaching speeds upwards of 120 mph. Some of the stolen tools would later be recovered during a search of a storage unit allegedly controlled by Rafael Davila on April 12, 2023.
Marshall is the sixth defendant to plead guilty in the case. On May 17, 2023, Torres pleaded guilty to his role in the catalytic converter theft conspiracy and is scheduled to be sentenced at a later date.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Kevin Gallagher, Director of Operations for the National Insurance Crime Bureau, Northeast Region made the announcement today. Valuable assistance was also provided by the United States Attorney’s Offices for the District of Connecticut, the Northern District of Oklahoma and the Eastern District of California; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the New England State Police Information Network (NESPIN). Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
Over 70 local police departments in Massachusetts, New Hampshire and Connecticut contributed to this investigation through the submission of their investigations of catalytic converter thefts in their jurisdiction. The Massachusetts Police Departments contributing to the investigation were Abington, Acton, Andover, Auburn, Bedford, Bellingham, Beverly, Billerica, Burlington, Bridgewater, Canton, Carver, Chelmsford, Concord, Cranston, East Hampton, Easton, Fitchburg, Framingham, Franklin, Gardner, Hampton, Hanover, Haverhill, Hingham, Holliston, Holyoke, Hudson, Ipswich, Lawrence, Leominster, Lynn, Malden, Mansfield, Medford, Marlborough, Methuen, Middleton, Milford, Millbury, Needham, Newton, Northborough, Norwell, Norwood, Peabody, Pembroke, Plymouth, Randolph, Rockland, Sharon, Shrewsbury, Springfield, Sterling, Sturbridge, Sudbury, Tyngsborough, Walpole, Waltham, Watertown, West Bridgewater, Weymouth, Wilmington, Woburn and Worcester. The New Hampshire Police Departments contributing to the investigation were Bow, Concord, Derry, Hooksett, Hudson, Londonderry, Manchester, Salem and Windham. The South Windsor and Windsor Connecticut Police Departments also contributed to the investigation.
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.
Former Boston Woman Sentenced for Failing to Appear to Serve a Federal Prison SentenceRead the Press Release
BOSTON – A former Boston woman, who was sentenced to federal prison in 2021 for misuse of a passport, was sentenced today to failing to surrender to serve her sentence.
Yris Sanchez, 55, was sentenced by U.S. District Court Judge Denise J. Casper to a sentence of six months in prison, to be followed by three years of supervised release. Today’s sentence will run concurrent with Sanchez’s 15-month sentence for misuse of a passport. She will be subject to deportation upon completion of her sentence. In December 2023, Sanchez pleaded guilty to failing to appear to serve a federal sentence.
In May 2020, Sanchez was convicted of misusing a passport and was sentenced to 15 months in prison. Because of the COVID-19 pandemic, Sanchez requested release on conditions and to self-report to serve her sentence. The Court granted this request and released Sanchez on an appearance bond. Following several extensions of her self-report date, Sanchez failed to surrender to the Bureau of Prisons in June 2021 to serve her sentence. For approximately 20 months after her failure to report, Sanchez resided in the Dominican Republic where she posted various daily undertakings on Facebook, including trips to the beach, pool and social functions. In July 2021, the Court forfeited Sanchez’s secured appearance bond and entered a further default judgment of $47,500 against Sanchez.
Acting United States Attorney Joshua S. Levy; Matthew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Brian Kyes, U.S. Marshal for the District of Massachusetts made the announcement today. Assistant U.S. Attorney William F. Abely, Chief of the Criminal Division prosecuted the case.
Dominican Man Sentenced to Six Years in Prison for Illegally Reentering the United States and Distributing FentanylRead the Press Release
BOSTON – A Dominican man was sentenced today in federal court in Boston for reentering the United States and distributing fentanyl after previously being deported.
Juan Carlos Santos-Ocasio, a/k/a “Cristhian Aybar-Done,” 44, of the Dominican Republic, was sentenced by U.S. District Court Judge Leo T. Sorokin to six years in prison, followed by five years of supervised release. He will be subject to deportation upon the completion of his sentence. In October 2023, Santos-Ocasio pleaded guilty to one count each of distribution of and possession with intent to distribute 40 grams or more of fentanyl and unlawful reentry of deported alien.
In October 2007, Santos-Ocasio was arrested in the Bronx, N.Y. for heroin distribution conspiracy. In November 2008, Santos-Ocasio pleaded guilty in the Eastern District of New York and was subsequently sentenced to 37 months in prison. He was removed from the United States upon completion of his sentence in the summer of 2010.
Sometime after his removal, Santos-Ocasio reentered the United States unlawfully. In November 2022, he was arrested in Lawrence, Mass. for reentering the United States without authorization. In addition to being in the U.S. without authorization, Santos-Ocasio also distributed 40 grams or more of fentanyl.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Kaitlin Brown of the Worcester Branch Office prosecuted the case.
Contractor Charged with Filing False Tax ReturnsRead the Press Release
BOSTON – The owner of a residential carpentry company was charged yesterday in connection with filing false tax returns for the company.
Marcelo De Oliveira, 39, formerly of Everett, was charged with four counts of filing false tax returns.
According to the charging documents, De Oliveira was the owner of DeOliveira Carpentry, Inc. It is alleged that from 2017 through 2020, De Oliveira cashed customer checks instead of depositing them into his business bank account and then did not report more than $3.1 million in business revenue to the Internal Revenue Service on his corporate tax returns.
The charge of filing false tax returns provides for a sentence of up to three years in prison, up to one year 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 Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Businesswoman Found Guilty of Tax and Mail FraudRead the Press Release
BOSTON – A Randolph woman was convicted yesterday by a federal jury in Boston in connection with her involvement in a payroll tax avoidance scheme.
Lilian Giang, 56, was convicted following a three-day jury trial of four counts of failing to collect and pay over taxes and one count of mail fraud. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 2024. Giang was indicted in March 2023.
“Every honest taxpayer is a victim of this type of crime. This defendant made hundreds of thousands of dollars after she decided that the rules we all live by don’t apply to her. Now she’s a convicted felon. This should send a clear message that if you engage in tax fraud, the consequences are very serious,” said Acting United States Attorney Joshua S. Levy.
“The conviction of Lilian Giang demonstrates the IRS’s commitment to protecting all American taxpayers, especially those who are most vulnerable,” said Special Agent in Charge, Harry T. Chavis Jr., IRS Criminal Investigation Boston Field Office. “Giang operated her business under the guise of helping the vulnerable Vietnamese immigrant community, when in fact, she exploited them for her own self-enrichment by paying them below minimum wage, charging substantially more than she paid them, and evading paying her own fair share of taxes.”
Between 2015 and 2019, Giang owned and operated Able Temp Agency, a temporary employment agency in Quincy that served client companies in Massachusetts. The client companies paid Able Temp Agency for the temporary employees’ work on an hourly basis. Giang deposited those payments into bank accounts in the name of Able Temp Agency that she controlled, and then paid the temporary employees through a combination of checks and cash. By using cash payments, Giang hid over $3.2 million in payroll and avoided paying more than $800,000 in required payroll taxes. Giang also used false payroll numbers to obtain worker’s compensation insurance at lower premium rates.
The charge of mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, restitution and forfeiture. The charge of failure to collect or pay over taxes provides for a sentence of up to five years in prison, three years of supervised release, a fine of $10,000 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 U.S. Attorney Levy and IRS SAC Chavis made the announcement. The Insurance Fraud Bureau of Massachusetts provided assistance in the investigation. Assistant U.S. Attorneys Christopher J. Markham and Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Vermont Man Sentenced to Four Years in Prison for Firearm and Drug OffensesRead the Press Release
BOSTON – A Vermont man was sentenced today in federal court in Springfield, Mass. for illegally possessing a firearm and ammunition and possessing methamphetamine intended for distribution.
Jeffrey Baird, 43, was sentenced by U.S. District Court Judge Mark G. Mastroianni to four years in prison, three years of supervised release, and a $200 mandatory special assessment fee. In January 2024, Baird pleaded guilty to one count of being a felon in possession of a firearm and ammunition and one count of possessing with the intent to distribute methamphetamine.
In December 2021, law enforcement stopped Baird’s vehicle travelling north on Route 91 in Northampton. Baird had a fake paper license plate taped to his back window and had been driving without a valid driver’s license. Baird was taken into custody. During a subsequent search of Baird’s vehicle, a revolver and five rounds of ammunition were found along with 207 grams of methamphetamine in a Ziplock bag – which carried a street value of between $6,000 and $10,000. Additionally, three more rounds of ammunition were found on Baird’s person inside his Hell’s Angels vest.
Baird is prohibited from possessing firearms and ammunition due to prior convictions for firearms offenses.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla, Chief of the Springfield Branch Office, prosecuted the case.
United States Files Complaint Against Regeneron Pharmaceuticals Alleging Fraudulent Drug Price ReportingRead the Press Release
BOSTON – The United States has filed a complaint under the False Claims Act (FCA) against Regeneron Pharmaceuticals, Inc. (Regeneron), a New York-based pharmaceutical company. The complaint alleges that Regeneron fraudulently manipulated Medicare reimbursement for its drug, Eylea, by knowingly submitting false average sales price (ASP) reports to Medicare. Medicare uses ASP to set its reimbursement rates for Eylea and other drugs. The complaint alleges Regeneron inflated Eylea’s ASP by paying credit card processing fees for the benefit of physician-customers purchasing Eylea, without properly reporting these payments as price concessions to ASP. Regeneron’s failure to properly report credit card fees as price concessions caused the submission of false claims for Eylea and hundreds of millions of dollars in inflated reimbursements by Medicare.
Regeneron manufactures and sells Eylea, an anti-vascular endothelial growth factor (anti-VEGF) inhibitor approved by the Food and Drug Administration to treat, among other conditions, neovascular (Wet) Age-Related Macular Degeneration (Wet AMD), a prevalent, usually age-related condition that impairs vision. Eylea is a leading Medicare expense, with payments of more than $25 billion between 2012 and 2023.
The United States alleges that Regeneron knew it was required to report all price concessions for Eylea, yet knowingly failed to include price concessions in the form of credit card processing fees that Regeneron paid to specialty drug distributors to benefit its customers. The United States alleges that Regeneron paid these credit card fees for Eylea purchases so that distributors would accept credit cards for physicians’ Eylea purchases while still charging those customers the lower cash price. These payments enabled Regeneron’s customers – typically retina and ophthalmic practices – to use credit cards to purchase Eylea without incurring an additional fee, while also taking advantage of the benefits of using credit cards, such as “cash back” and other credit card rewards. The United States alleges Regeneron internally attempted to disguise the payments as “bona fide service fees” (BFSFs), which are not considered price concessions, when it knew the payments were not BFSFs.
“The government alleges that Regeneron manipulated Medicare’s drug pricing process, by knowingly failing to report its payment of credit card processing fees as price concessions to its customers,” said Acting United States Attorney Joshua S. Levy. “By doing so, Regeneron greatly inflated the costs of its drug to Medicare over many years and enhanced its revenues. Falsely reported average sales prices cost the Medicare system hundreds of millions of dollars and we will make every effort to prevent such practices.”
“We will not permit pharmaceutical companies to flout price reporting requirements to maintain high drug prices,” said Principal Deputy Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to protecting federal health care programs from improper actions by drug companies or others that drive up the cost of those programs at the taxpayers’ expense.”
“When drug companies submit average sales price reports to Medicare, those reports are expected to be truthful and accurate,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “Reimbursement rate manipulation, as alleged in this complaint, threatens the integrity of the taxpayer-funded Medicare program, and we will thoroughly pursue such allegations.”
“Medicare, a crucial component of our nation’s health care system, draws from a finite pool of funds,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today, Regeneron is accused of siphoning hundreds of millions of dollars of those funds to pad their profits on the backs of taxpayers. The FBI will continue to work with our partners to investigate and bring to justice those who we believe are willfully defrauding the U.S. government.”
The government’s investigation was prompted by False Claims Act allegations brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act. Under the FCA, private parties, known as relators, can file an action on behalf of the United States and receive a portion of the recovery. The FCA permits the United States to intervene in and take over the action, as it has done here. If a defendant is found liable for violating the FCA, the United States may recover three times the amount of its losses plus applicable penalties.
Acting U.S. Attorney Levy, AAG Boynton, HHS-OIG SAC Coviello and FBI SAC Cohen made the announcement today. Assistant U.S. Attorneys Diane Seol and Lindsey Ross of the Affirmative Civil Enforcement Unit along with Trial Attorneys Douglas J. Rosenthal, Asha M. Natarajan and Samuel R. Lehman of the Justice Department's Civil Division are handling the matter.
Rutland Man Sentenced for Conspiring to Access Protected Computer Network of Medical Treatment FacilityRead the Press Release
BOSTON – A Rutland man was sentenced today in federal court in Worcester to conspiring to access a protected computer of his former employer – a non-profit substance use and mental health treatment provider that operates recovery centers throughout Massachusetts.
Nathan Howe, 42, was sentenced by U.S. District Court Judge Margaret R. Guzman to time served (one day in prison) and three years of supervised released, with the first year to be served in home detention. Howe was also ordered to pay restitution in the amount of $10,565. The government argued for a sentence of 21 months in prison and restitution in the amount of $136,233. In October 2023, Howe pleaded guilty to one count of conspiracy to commit wire fraud, three counts of wire fraud, one count of conspiracy to access a protected computer to obtain information and cause damage and one count of intentionally causing damage to a protected computer and impairing medical treatment.
Howe and co-conspirator Patrick Edmonds-Morin were employed by the non-profit until April 2021 and October 2020, respectively. Between September and December of 2021, Howe conspired with Edmonds-Morin to access records of the non-profit’s employees, listen to and view conversations between the employees, and create and deploy a computer program designed to impede the non-profit’s use of the network. In November 2021, Howe accessed the computer network and transmitted a command that shut down the network for the non-profit’s Westborough campus where individuals were receiving in-patient treatment. By shutting down the network, Howe made the non-profit’s electronic medical records system inaccessible at its sites across Massachusetts, impairing or potentially impairing the medical examination, diagnosis, treatment and care of patients.
Additionally, between July 2018 and November 2020, Howe and Edmonds-Morin conspired to commit wire fraud by obtaining cell phones from a cell phone provider which were intended for the non-profit’s staff and, instead, selling the cell phones to third parties for personal profit, typically in the amounts of hundreds of dollars per phone.
Edmonds-Morin pleaded guilty in June 2023 and is scheduled to be sentenced May 15, 2024.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Brendan O’Shea of the Worcester Branch Office is prosecuting the case.
Revere Man Charged with Armed Robberies of Two Local Convenience StoresRead the Press Release
BOSTON – A Revere man was charged yesterday in connection with the armed robberies of two Boston-area convenience stores in less than one week.
Jaquan Barrows, 26, was charged with two counts of robbery interfering with interstate commerce, commonly referred to as Hobbs Act robbery, and two counts of using and brandishing a firearm during and in relation to, and in furtherance of a crime of violence. Barrows will appear in federal court in Boston later today.
According to the charging documents, on the morning of March 29, 2024, a male wearing a mask, dark clothing and an orange safety vest entered a Revere convenience store brandishing a handgun. The suspect allegedly walked behind the counter, demanded cash from the cash register drawer, additional cash and a cell phone from the store clerk. The suspect allegedly struck the clerk in the head with the firearm, took an ice cream bar from a store freezer and fled the scene.
It is alleged that less than a week later, on the morning of April 4, 2024, a male wearing a black mask and dark clothing entered an Everett convenience store and appeared to be shopping. After being asked to pay for his items, the suspect allegedly brandished a handgun, pointed it at the store clerk and demanded cash from the cash register drawer and fled the scene.
A subsequent investigation identified a Honda Pilot captured in the vicinity of the Revere convenience store. According to court records the vehicle was registered to an individual who resided with Barrows. Surveillance footage obtained from the Revere convenience store and from Barrows’ residence allegedly showed Barrows wearing clothing similar to the robber.
During a search of Barrows’ residence on April 4, 2024, clothing items matching the robber from the Revere robbery, as well as a handgun were allegedly found. Barrows was immediately taken into custody.
The charge of Hobbs Act robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $ 250,000. The charge of using and brandishing a firearm during and in relation to, and in furtherance of a crime of violence provides for a mandatory minimum sentence of seven years in prison to be served consecutively to the penalty for the underlying crime, five 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 the Revere and Everett Police Departments. Assistant U.S. Attorney Lauren Maynard of the Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Plymouth Man Arrested for Paycheck Protection Program FraudRead the Press Release
BOSTON – A Plymouth man has been arrested and charged with wire fraud in connection with fraudulent Paycheck Protection Program (PPP) loan applications on behalf of business entities he owned and controlled.
Joseph Kerrissey, III, 46, was charged with three counts of wire fraud. Kerrissey was released following an initial appearance yesterday before U.S. District Court Magistrate Judge Kelley.
According to the charging documents, Kerrissey submitted three fraudulent loan applications seeking loans for business entities pursuant to the PPP. The loan applications inaccurately stated that Kerrissey was not on probation during the relevant time period. The loan applications also included fraudulent tax forms that were not filed with the IRS and reported inconsistent income.
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; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Valuable assistance was provided by the Plymouth Police Department. Assistant U.S. Attorney Brian Sullivan of the Major Crimes Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by 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.
Owner of Boston Pizzeria Chain Charged with Defrauding U.S. Small Business AdministrationRead the Press Release
BOSTON – The owner of Stash’s Pizza, who is currently facing alleged federal forced labor charges, has been indicted by a grand jury in Boston for allegedly submitting false information to the U.S. Small Business Administration (SBA) to obtain a loan on behalf of a business he no longer owned.
Stavros Papantoniadis, a/k/a “Steve Papantoniadis,” 49, of Westwood, was indicted on two counts of wire fraud. Papantoniadis, who is currently in federal custody on the alleged forced labor charges, will make an initial appearance in federal court in Boston at a later date.
According to court documents, Papantoniadis is the owner and operator of Stash’s Pizza, a chain of pizzerias in greater Boston. In April 2021, Papantoniadis sold one of his pizzerias located in Randolph, Mass., and the Secretary of State subsequently cancelled the limited liability company through which Papantoniadis owned the Randolph pizzeria.
Between November 2021 and January 2022, Papantoniadis allegedly applied for an Economic Injury Disaster Loan from the SBA. These loans were designed to provide relief for small businesses that suffered substantial economic injury during the COVID-19 pandemic. It is alleged that, in his submissions to the SBA, Papantoniadis falsely represented that he still owned and operated Boston Pizza Company in Randolph, claiming that he had 18 employees. However, Papantoniadis had allegedly sold the business several months before he applied for the loan. The SBA approved the loan and sent Papantoniadis $499,900.
In March 2023, Papantoniadis was arrested and charged with one count of forced labor. He was subsequently indicted by a federal grand jury on four counts of forced labor and three counts of attempted forced labor. He has remained in federal custody since his arrest. Papantoniadis has pleaded not guilty in this case and is awaiting trial, which is scheduled for May 20, 2024.The charges of wire fraud provide for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of up to $250,000. The charges of forced labor and attempted forced labor, which are contained in a separate indictment, provide for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Northeast Region made the announcement today. Assistant U.S. Attorneys Timothy E. Moran, Chief of the Organized Crime & Gang Unit and Brian A. Fogerty of the Civil Rights & Human Trafficking 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.
False Claims Act Complaint Filed Against Regeneron Pharmaceuticals for Fraudulent Drug Pricing ReportingRead the Press Release
The United States filed a complaint under the False Claims Act (FCA) against Regeneron Pharmaceuticals Inc. (Regeneron), a New York-based pharmaceutical company. Regeneron manufactures and sells Eylea, an anti-vascular endothelial growth factor inhibitor approved by the Food and Drug Administration to treat, among other conditions, neovascular Age-Related Macular Degeneration, a prevalent, usually age-related condition that impairs vision.
The complaint alleges that Regeneron fraudulently inflated Medicare reimbursement rates for Eylea by knowingly submitting false average sales price reports to the Centers for Medicare and Medicaid Services that excluded certain price concessions. In particular, the United States alleges that Regeneron knowingly failed to report price concessions in the form of credit card processing fees that Regeneron paid to specialty drug distributors to benefit its customers. According to the complaint, Regeneron paid these credit card fees so that distributors would accept credit cards for Eylea purchases while still charging a lower, cash price for the drug, and so that Regeneron’s customers — typically retina and ophthalmic practices — could receive credit card benefits for their purchases, such as “cash back” and other credit card rewards.
“We will not permit pharmaceutical companies to flout price reporting requirements to maintain high drug prices,” said Principal Deputy Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to protecting federal health care programs from improper actions by drug companies or others that drive up the cost of those programs at the taxpayers’ expense.”
“The government alleges that Regeneron manipulated Medicare’s drug pricing process, by knowingly failing to report its payment of credit card processing fees as price concessions to its customers,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “By doing so, Regeneron greatly inflated the costs of its drug to Medicare over many years and enhanced its revenues. Falsely reported average sales prices cost the Medicare system hundreds of millions of dollars and we will make every effort to prevent such practices.”
The lawsuit was originally filed under the qui tam or whistleblower provisions of the FCA. Under the FCA, private parties file an action on behalf of the United States and receive a portion of the recovery. The FCA permits the United States to intervene in and take over the action, as it has done here. If a defendant is found liable for violating the FCA, the United States may recover three times the amount of its losses plus applicable penalties.
The Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts are handling the matter with assistance from the Department of Health and Human Services (HHS) Office of Inspector General and the FBI. The case is captioned United States ex rel. Does 1-2 et. al. v. Regeneron Pharmaceuticals, Inc. et al., No. 20-cv-1401-PBS.
Trial Attorneys Douglas Rosenthal, Asha Natarajan and Samuel R. Lehman of the Justice Department’s Civil Division and Assistant U.S. Attorneys Diane Seol and Lindsey Ross for the District of Massachusetts are handling the matter.
The investigation and prosecution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The claims asserted in the complaint are allegations only. There has been no determination of liability.
ComplaintBrockton Man Sentenced for Fraudulently Obtaining More Than $1.5 Million in COVID-Relief FundsRead the Press Release
BOSTON – A Brockton man was sentenced yesterday in federal court in Boston for a scheme to submit false applications to obtain Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) funds through the Small Business Administration (SBA) that were made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Joao Mendes, 60, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 27 months in prison, followed by one year of supervised release. Mendes was also ordered to pay restitution in the amount of $1,542,759 and the forfeiture of assets totaling $1,751,694. In December 2023, Mendes pleaded guilty to one count of wire fraud.
Beginning in or around June 2020 and continuing until at least in or around September 2020, Mendes submitted fraudulent PPP and EIDL loan applications on behalf of several companies, many of which were defunct. Mendes submitted multiple applications for a single entity to successive lenders until a loan was ultimately approved. Those applications contained conflicting information. The fraudulent PPP loan applications misrepresented the number of employees and the average monthly payroll expenses of Mendes’s various fictious businesses. Mendes also submitted false tax records in support of his loan applications. In his EIDL applications, Mendes misrepresented the number of employees, gross revenues and costs of goods sold for each business. Based on the fraudulent applications, Mendes and two of his relatives received over $1.5 million in PPP and EIDL funds. Once Mendes received the funds, he spent them for his own personal benefit—including for the purchase of cryptocurrency.
The United States seized cryptocurrency and fiat currency from over 20 accounts that, with additional funds turned over by Mendes, resulted in the recovery of $1.545 million in cryptocurrency and more than $206,000 in U.S. currency, which will be criminally forfeited.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP. Another is the EIDL, through which the SBA offers loans that can only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred. The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open through forgivable loans for eligible uses.
Acting United States Attorney Joshua S. Levy; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Robert Manchak, Special Agent in Charge of the Federal Housing Finance Agency Office of Inspector General, Northeast Region; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Mehtab Syed, Assistant Director in Charge of the Federal Bureau of Investigation, Los Angeles Field Office; Weston King, Special Agent in Charge of the Small Business Administration Office of Inspector General, Western Region; Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General, New York Regional Office; Tyler Hatcher, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Los Angeles Field Office; Christopher J. Gust, Acting Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration, Northeast Field Division; and Brian Tucker, Special Agent in Charge, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, Eastern Region, made the announcement today. Assistant U.S. Attorneys Mackenzie A. Queenin of the Criminal Division, and Carol E. Head, Chief of the Asset Recovery Unit, and Trial Attorney Jennifer Bilinkas of the Criminal Division’s Fraud Section prosecuted the case. Attorney Advisor Scott J. Campbell of the Criminal Division’s Money Laundering and Asset Recovery Section provided significant assistance.
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.
Registered Sex Offender from Lexington Sentenced to 15 Years in Prison for Attempting to Purchase Sex with a Minor and Possessing Child PornographyRead the Press Release
BOSTON – A Lexington, Mass. man was sentenced today for attempting to pay for sex with a 14-year-old girl. Defendant told undercover agent that the child should expect a man who looks like Santa Claus.
David Cannon, 61, was sentenced by U.S. District Court Chief Judge Dennis F. Saylor IV to 15 years in prison and five years of supervised release. In November 2023, Cannon pleaded guilty to one count of attempted sex trafficking of a child and one count of possession of child pornography.
“Individuals like Cannon drive the demand for sex trafficking of children. Those who seek to pay for sex with kids must be seriously punished so that the message resonates that there are grave consequences for engaging in such deplorable conduct,” said Acting United States Attorney Joshua S. Levy. “This office is committed to prosecuting human trafficking from all angles — the individuals who traffic innocent girls and the men who drive demand for such services.”
“Cannon had previously been convicted for crimes against a child and was just off probation when he was arrested by HSI for attempting to pay to sexually abuse a minor. When he arrived at the hotel to commit this crime, he was met by an undercover HSI special agent instead of a child sex trafficker,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England. “Today’s sentence keeps this serial predator off the streets and away from children. We are grateful to our partners who worked to make this operation possible as we all work together to end human trafficking.”
In November 2022, Cannon responded to an online advertisement offering commercial sex with two young girls. Through an ensuing text conversation with an undercover agent posing as the seller of the two girls, Cannon offered to pay $200 to have sex with either the 12-year-old or 14-year-old girl and indicated that he would purchase whoever was ready first. Ultimately, Cannon agreed to pay $200 to have sex with the fictitious 14-year-old girl.
Shortly thereafter, Cannon went to a greater Boston hotel where he met with the undercover agent posing as the purported seller. There, Cannon confirmed he had the money to pay for the commercial sex act and accepted a hotel key. Cannon also said to tell the child to expect a man who looks like Santa Claus. Lubricant and condoms were subsequently found in Cannon’s vehicle.
Additionally, a search of Cannon’s cell phone revealed dozens of photographs and videos depicting child sexual abuse material (CSAM) as well as text messages discussing his affinity for CSAM. At sentencing, Cannon was also ordered to pay $17,500 in restitution to the victims whose child sexual abuse material he possessed.
At the time of the offense, Cannon was a registered sex offender, having been convicted in 2019 of indecent assault of an 11-year-old child on three separate occasions.
If you or someone you know may be impacted or experiencing commercial sex trafficking, please contact [email protected].
Acting U.S. Attorney Levy and SAC Krol made the announcement today. Assistant U.S. Attorney Elizabeth Riley, Chief of the Human Trafficking & Civil Rights Unit prosecuted the case.
Maryland Man Who Extorted Massachusetts Victims He Met on Online Dating Website SentencedRead the Press Release
BOSTON – A Maryland man was sentenced today for making extortionate threats toward victims in Massachusetts.
Brandon D. Kane, 28, of Baltimore, was sentenced by U.S. District Court Judge Patti B. Saris to time served (five months in prison), one year of supervised release and restitution of $4,800. In September 2023, Kane pleaded guilty to two counts of interstate transmission of extortionate threats.
Kane used an online dating website to meet victims locally in Eastern Massachusetts from at least September 2021 through May 2022. During two such meetings, Kane made unauthorized videos of his victims engaging in illicit drug use or sexual activity with him. Kane then threatened to release the videos to the victims’ families and employers unless his victims paid him. One victim ultimately paid Kane $3,500 and another paid Kane $1,300.
Acting United State Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Jessica Soto and Benjamin Tolkoff of the Criminal Division prosecuted the case.
Maryland Man Pleads Guilty to Stealing More Than $32,000 in High-End GoodsRead the Press Release
BOSTON – A Maryland man has pleaded guilty in federal court in Boston to stealing thousands of items from a high-end outlet store in Wrentham, Mass.
Nathaniel Owens, 33, pleaded guilty on April 4, 2024 to one count of conspiracy to transport stolen goods in interstate commerce and one count of interstate transportation of stolen goods. U.S. District Judge Allison D. Burroughs scheduled sentencing for July 19, 2024. Owens was indicted by a federal grand jury in January 2023 along with his co-defendants Linworth Hayes Crawford III and Ronald Patterson, Jr.
According to the charging documents, on the evening of Sept. 16, 2021, Owens, Crawford and, allegedly, Patterson traveled from the Washington D.C. area to the Wrentham Village Premium Outlets in Massachusetts. In the early morning hours of Sept. 17, 2021, Owens and his co-defendants allegedly entered the Gucci store by smashing the store’s glass front door and stole $32,000 in high-end merchandise including handbags, duffle bags, backpacks and sunglasses.
Owens was captured on mall security videos inside the mall visiting the Nike Store. After the robbery, the car used by the defendants crossed the George Washington Bridge going south. During a stop on their way to Washington, D.C., a store video surveillance camera filmed one of the men allegedly taking a Gucci bag out of the car to examine it.
The day after the theft, Patterson allegedly posted on his Instagram account that he had Gucci bags available for sale. Images of the bags appeared to be identical to the Gucci bags stolen during the burglary earlier that day.
Crawford pleaded guilty to his role in the conspiracy on Feb. 3, 2024 and is scheduled to be sentenced on June 3, 2024. Patterson has pleaded not guilty and is awaiting trial.
The charge of conspiracy to transport stolen goods in interstate commerce provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 fine. The charge of interstate transportation of stolen goods provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Wrentham Police Department. Assistant U.S. Attorney Assistant U.S. Attorney David G. Tobin of the Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Man Sentenced for Selling Counterfeit U.S. Currency in the Dominican RepublicRead the Press Release
BOSTON – A Dominican man has been sentenced in federal court in Boston for his role in a conspiracy in which he sold over $150,000 in counterfeit U.S. currency.
Ruben Dario Diaz Sanchez, 68, was sentenced on April 3, 2024 by U.S. District Judge Allison D. Burroughs to time served (approximately one year in prison). In January 2024, Diaz Sanchez pleaded guilty to four counts of counterfeit acts committed outside of the United States, one count of dealing in counterfeit obligations and securities and one count of conspiracy.
Diaz Sanchez was indicted by a federal grand jury in October 2019 along with co-conspirator Maximo Morillo. The defendants were subsequently extradited to the United States in April 2023. Following sentencing, Diaz Sanchez was transferred to the custody of U.S. Immigration and Customs Enforcement for deportation proceedings.
In or about October 2014, Diaz Sanchez, who resided in the Dominican Republic, solicited an individual in the United States to purchase and smuggle counterfeit U.S. Currency into the United States. Morillo served as the point of contact with a printer manufacturing the counterfeit U.S. Currency in the Dominican Republic. Between May 2015 and January 2016, in the Dominican Republic, Diaz Sanchez arranged, negotiated and coordinated the sales of 1,590 counterfeit $100 bills for a total face value of $150,900.
On Feb. 15, 2024, Morillo was sentenced to time served (approximately one year in prison).
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was provided by Dominican Republic law enforcement. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Diaz Sanchez. Assistant U.S. Attorney David G. Tobin of the Major Crimes Unit prosecuted the case.
Boston Man Pleads Guilty to Sex Trafficking a MinorRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday to trafficking a minor for sex and persuading and coercing multiple women to travel across state lines to engage in prostitution.
Jimall Dawn Brown, 35, pleaded guilty to one count of sex trafficking of a minor; one count of transporting an individual in interstate commerce with the intent that they engage in prostitution; and two counts of persuading and coercing an individual to travel in interstate commerce to engage in prostitution. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for July 9, 2024. Brown was indicted by a federal grand jury in November 2022.
“Jimall Brown is one of far too many people this office has prosecuted for human trafficking. The pattern is remarkably predictable and it is happening far too often right here in our backyard. Brown promised his victims a better life, but in reality, he exploited them for his financial gain, selling them for sex repeatedly,” said Acting United States Attorney Joshua S. Levy. “No child or person must ever be treated this in this dehumanizing manner. This Office will not cease in our efforts to prosecute individuals who engage in human trafficking.”
“Jimall Dawn Brown lured this child into his clutches, with the promise of a better life, specifically to abuse and exploit her,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “It will be a gratifying day when his sentence is handed down and the cell door shuts behind him so he can’t victimize anyone else. FBI Boston’s Child Exploitation – Human Trafficking Task Force will never stop working to find and help trafficked victims, to prevent them from further abuse, and keep their traffickers from hurting anyone else.”
“The scars borne by sex trafficking victims are certainly emotional, often physical, and always long-lasting. Targeting traffickers and bringing them to justice is a vitally important mission for law enforcement and a major benefit to society itself,” said Suffolk County District Attorney Kevin Hayden.
In 2022, Brown trafficked a 17-year-old, identified as Victim 1, to engage in commercial sex acts. He first met the victim, who was living outside Massachusetts, on social media and convinced her to fly to Boston, with promises of a “better lifestyle.” Brown posted advertisements of Victim 1 online and arranged “dates” for Victim 1 to have sex in exchange for money. Brown set the pricing for the commercial sex acts she engaged in, for which he collected all of the money. In April 2022, Brown transported Victim 1 to Nevada, again arranging for her to engage in commercial sex and keeping all the money.
In March 2019, Brown persuaded and coerced a another woman, identified as Victim 2, to travel from Connecticut to Massachusetts to engage in prostitution. He met her in Connecticut and told her that she had potential and that he could provide a better, luxurious life for her if she would come to Boston, where he lived. Victim 2 came to Massachusetts and Brown posted online advertisements containing photos of Victim 2 on commercial sex websites. Victim 2 engaged in commercial sex and was required to give all of the money she made to Brown.
In May 2016, Brown persuaded and coerced a different woman, identified as Victim 3, to travel from Pennsylvania to Massachusetts to engage in prostitution. He contacted Victim 3 on social media, told her that she was beautiful, that he had a modeling agency, and that he wanted to work with her. Brown said he would pay for her plane ticket to fly to Boston and provide everything for her once she arrived. Victim 3 traveled by plane from Pennsylvania to Massachusetts. After she arrived, Brown took photos of her, purportedly for modeling, but instead he posted them on websites advertising commercial sex. Brown then coerced and forced Victim 3 to engage in commercial sex in Massachusetts and required her to give him all the money.
If you or someone you know may be impacted or experiencing commercial sex trafficking, please contact [email protected].
The charge of sex trafficking of a minor provides for a mandatory minimum sentence of 10 years and up to life in prison, five years of supervised release and a fine of $250,000. The charge of transporting a person for purposes of prostitution provides for a maximum of 10 years in prison, three years of supervised release and a fine of $250,000. The charge of persuading and coercing a person to travel across state lines to engage in prostitution provides for a maximum of 20 years in prison, three years of supervised release and a fine of $250,000. Each count also provides for mandatory restitution and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy; FBI SAC Cohen; DA Hayden; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Arlington and Randolph Police Departments. Assistant U.S. Attorney Torey B. Cummings of the Civil Rights & Human Trafficking Unit is prosecuting the case.
Wife of Large Scale Drug Trafficker Pleads Guilty to Money Laundering ConspiracyRead the Press Release
BOSTON – A California woman pleaded guilty yesterday in federal court in Boston to her role in a money laundering conspiracy involving proceeds of methamphetamine and marijuana distribution. Defendant assisted husband in laundering drug proceeds.
In total, 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 during the investigation. An illegal marijuana grow operation with hundreds of marijuana plants was also dismantled. Two co-defendants Reshat Alkayisi and Andre Watson recently pleaded guilty and are scheduled to be sentenced on July 11, 2024 and July 16, 2024, respectively.
Christina Lua, 50, of Santa Rosa, Cali., pleaded guilty to one count of a second superseding indictment charging her with money laundering conspiracy. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for July 12, 2024.
Lua was originally charged in a superseding indictment, along with four others, in September 2021 with money laundering conspiracy. The indictment charged a total of 11 defendants. In addition to the money laundering conspiracy, other defendants were charged with controlled substance and firearm 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 Alkayisi as a large-scale methamphetamine trafficker, who distributed multi-pound quantities to customers throughout the New England area. Lua was identified as Alkayisi’s wife, who assisted Alkayisi in laundering his drug proceeds, including by purchasing vehicles with cash drug proceeds, and by depositing cash drug proceeds in amounts less than $10,000 so as to conceal the nature of the funds and to avoid reporting requirements.
Lua is the ninth defendant to plead guilty. The two remaining defendants are scheduled to plead guilty.
The charge of money laundering conspiracy provides for a maximum sentence of 20 years in prison, three years of supervised release, a fine of the great of $500,000 or twice the amount of laundered proceeds, and a mandatory special assessment of $100. 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; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Shawn Jenkins, Interim Commissioner of the Massachusetts Department of Correction made the announcement. Valuable assistance was provided by the 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, Katherine Ferguson, and James Arnold 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.
Lowell Woman Pleads Guilty to Conspiracy to Smuggle Drugs into Virginia PrisonRead the Press Release
BOSTON – A Lowell woman pleaded guilty yesterday to conspiracies to distribute controlled substances and to launder drug proceeds in Massachusetts and Virginia.
Sathtra Em, 36, 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 July 11, 2024.
Between at least December 2019 and May 2021, Em allegedly helped codefendant Michael Mao smuggle MDMA and buprenorphine, in the form of Suboxone and generic Suboxone sublingual films, into the Buckingham Correctional Center in Dillwyn in Virginia where Mao was inarecrated. Em allegedly paid a prison guard at the facility, codefendant Kenneth Owen, $1,600 to receive the drugs in the mail and to deliver them to Mao in the prison. Em allegedly mailed at least two packages to Owen in December 2019 and January 2020 for him to smuggle into the prison for Mao. Em also allegedly mailed magazines into the prison with Suboxone sublingual films hidden in between pages glued together. Mao allegedly sold the smuggled drugs to other inmates at Buckingham Correctional Center, and Em collected the drug debts on behalf of Mao using Google Voice phone numbers to contact the inmates’ friends and families, and electronic payment applications such as Cash App and Paypal to receive the funds transfers.
In a separate conspiracy, Em purchased a home in the Centralville neighborhood of Lowell in 2015. She lived there together with codefendant Sarath Yut until 2017. Yut was a regional drug trafficker and a leader of the Lowell-based gang, One Family Clique. Em and Yut agreed to deposit cash proceeds of Yut’s illegal drug trafficking activity into Em’s bank accounts to pay the mortgage for the Centralville home. Yut gave Em $1,500 cash every month to deposit into her bank account for the mortgage. Between October 2016 and January 2021, Em used at least $76,775 of drug proceeds to pay the mortgage for the Centralville home.
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.
Sarath Yut pleaded guilty to drug trafficking and money laundering offenses and was sentenced in October 2023 to 15 years in prison.
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 and 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.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Framingham Man Sentenced to Prison for Operating an Unlicensed Money Transmitting BusinessRead the Press Release
BOSTON – A Framingham man was sentenced yesterday in federal court in Boston for operating an unlicensed money transmitting business.
Luiz DaSilva, 69, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 18 months in prison and two years of supervised release. On Nov. 27, 2023, the defendant pleaded guilty to operation of an unlicensed money transmitting business.
DaSilva was arrested on Dec. 15, 2022 for operating an unlicensed money transmitting business out of Framingham. Under federal law, entities who transfer funds on behalf of the public, are required to register with the Department of Treasury’s Financial Crimes Enforcement Network within 180 days of commencing services. Registration is required to protect against United States financial institutions being used for money laundering and other illicit activities. DaSilva never registered his business with FinCEN. However, between at least 2018 and 2020, DaSilva regularly accepted cash from numerous parties that he transferred to Florida-based bank accounts without registration with FinCEN. These transactions amounted to approximately $4.9 million dollars in a two-year period. The defendant structured his cash transactions to avoid any one transaction being more than $10,000, which requires reporting by the financial institution of the transaction to the federal government.
Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Framingham Police Chief Lester Baker made the announcement today. Assistant U.S. Attorney John T. Mulcahy of the Narcotics & Money Laundering Unit prosecuted the case.
Former New Bedford Man Sentenced to over Three Years for Wire Fraud and Money Laundering Arising from "Romance Scam"Read the Press Release
BOSTON – A former New Bedford man was sentenced yesterday for wire fraud and money laundering charges involving funds obtained from “romance scam” victims.
Chukwunonso “Douglas” Umegbo, a/k/a James Abbott, a/k/a Michael Philips, a/k/a Richard Armani, 39, was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to 42 months in prison, followed by one year of supervised release. Umegbo was also ordered to pay restitution and forfeiture of $578,954.78. In January 2024, Umegbo pleaded guilty to six counts of making a false statement to a bank, two counts of wire fraud and one count of money laundering. Umegbo was arrested in London in April 2022 and extradited to the United States in February 2023. He has remained in federal custody since.
Between no later than 2018 through at least 2019, Umegbo opened bank accounts in the greater Boston area using fake identity documents. The bank accounts were used to receive fraudulently obtained funds from a number of victims of romance scams, in which perpetrators create fictitious online personas to develop online romantic relationships with individuals in the U.S., and then leverage those relationships to obtain money and/or property. Once the fraudulently obtained funds reached the accounts controlled by Umegbo, Umegbo withdrew the money in cash, used the funds to purchase cashier’s checks, or spent the money. Altogether, the fraudulent accounts received more than $568,000. Even after leaving the U.S., Umegbo continued to obtain bank account information from co-conspirators in Massachusetts, to whom he directed victim funds.
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, Boston Division; and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. The Justice Department’s Office of International Affairs provided valuable assistance in securing the arrest and extradition from the U.K. of Umegbo. Assistant U.S. Attorneys Kristen A. Kearney and Leslie A. Wright of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Worcester Man Pleads Guilty to Firearm and Drug-Related ChargesRead the Press Release
BOSTON – A Worcester man who was previously charged with unlawfully possessing a machinegun pleaded guilty yesterday to drug charges.
Jose Rivera, 24, pleaded guilty to possession of a machinegun, receipt of a firearm by a person under indictment for a felony, possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for June 28, 2024. Rivera was indicted by a federal grand jury in June 2023.
During a search of Rivera’s residence on March 7, 2023, three Glock switches – including one attached to a loaded Glock .40 caliber firearm were recovered. Glock switches convert semi-automatic Glock pistols into fully automatic machineguns and are considered machineguns under federal law. Three large capacity magazines, including a 50-round drum magazine and boxes of ammunition were also seized. Rivera also possessed cocaine intended for distribution as well as scale, tray, and small plastic baggies, and $9,000 in cash. Rivera received the Glock .40 caliber firearm on or after Oct. 9, 2021, while he was under indictment in state court for felonies punishable by a term of imprisonment of over a year.
The charge of unlawful possession of a machinegun provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of receipt of 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 charge of possession with intent to distribute 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. The charge of possession of a firearm in furtherance of a drug trafficking crime provides for a mandatory minimum sentence of five years, to be run consecutively with the sentence imposed on the other counts, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Interim Worcester Police Chief Paul Saucier made the announcement today. Assistant U.S. Attorney Kaitlin J. Brown of the Worcester Branch Office is prosecuting the case.
This case is also a part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, 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.
Randolph Man Sentenced to 10 Years in Prison for Cocaine Trafficking ConspiracyRead the Press Release
BOSTON – A Randolph man was sentenced yesterday in federal court in Boston for his role in a drug trafficking organization that shipped dozens of parcels containing kilograms of cocaine from Puerto Rico to various addresses throughout Eastern Massachusetts and Rhode Island.
Cristian Junior Alvarado Deleon, 23, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 10 years in prison and five years of supervised release. In January 2024, Alvarado Deleon pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine.
Alvarado Deleon received shipments of cocaine mailed from Puerto Rico to Massachusetts and Rhode Island. The cocaine inside these packages was typically hidden inside innocuous consumer goods, such as air fryers. Alvarado Deleon was also responsible for the return of bad batches of cocaine according to communications intercepted by a wiretap used in this investigation. In May 2021, during the execution of a search warrant at Alvarado Deleon’s apartment, he threw a firearm out of his bedroom window while his roommate threw $88,800 in cash from another window. Inside the apartment, three empty parcels that were used to ship cocaine from Puerto Rico to Massachusetts were recovered.
Acting United States Attorney Joshua S. Levy; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Drug Enforcement Administration, New England Field Division and Homeland Security Investigations in Boston. Assistant U.S. Attorneys Philip C. Cheng and James E. Arnold of the Criminal Division prosecuted 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.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pill Distributor Pleads Guilty to Trafficking Tens of Thousands of Pills Containing Fentanyl and MethamphetamineRead the Press Release
BOSTON – A Haverhill man pleaded guilty to distributing tens of thousands of pills containing fentanyl and methamphetamine.
Angel Joel Diaz, a/k/a “Guero,” 35, pleaded guilty to one count of distribution of and possession with intent to distribute fentanyl, two counts of distribution of and possession with intent to distribute 400 grams or more of fentanyl, and one count of possession with intent to distribute 400 grams or more of fentanyl, 50 grams or more of methamphetamine and methadone. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 10, 2024. Diaz was indicted by a federal grand jury in April 2023.
In January 2023, an investigation began into Diaz’s fentanyl pill manufacturing and distribution operation. An undercover officer contacted Diaz posing as a potential drug customer seeking to buy counterfeit prescription pills containing fentanyl. On Jan. 11, 2023, Diaz provided the undercover officer with 208 pills containing fentanyl and methamphetamine. Diaz told the undercover officer that the pills were made with “fentanyl” and they were “knocking people down in New York.”
On two subsequent occasions, Jan. 27, 2023 and Feb. 7, 2023, Diaz distributed thousands of counterfeit prescription pills containing suspected fentanyl to the undercover officer. On Feb. 14, 2023, Diaz sent a photo of fentanyl pills to the undercover officer and said, “even making it with a mask makes you want to vomit and everything.”
On Feb. 15, 2023, Diaz was arrested while carrying a shopping bag containing 31,142 fentanyl pills separated into seven plastic bags. During a subsequent search of Diaz’s Haverhill residence, a pill press; thousands of pills; powder containing fentanyl and methadone; stamps used to make counterfeit pills; several masks; and chemicals used in manufacturing pills were discovered.
The charge of distribution of and possession with intent to distribute fentanyl and methamphetamine 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. The charges of distribution of and possession with intent to distribute 400 grams or more of fentanyl provide for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Stephen 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 Massachusetts State Police and the Haverhill Police Department. Assistant U.S. Attorney Samuel R. Feldman of the Narcotics & Money Laundering Unit is prosecuting the case.