District of Massachusetts

BOSTON – A Springfield man pleaded guilty on May 31, 2024 in federal court in Springfield to a drug offense involving fentanyl and cocaine.  

Christian Caballero, 31, pleaded guilty to one count of possession with intent to distribute fentanyl and cocaine. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Aug. 1, 2024.

On July 31, 2023, Caballero possessed fentanyl and cocaine with the intent to distribute.  At the time of his arrest, Caballero possessed 501 bags of fentanyl and 10.82 grams of cocaine.

The charge of possession with intent to distribute fentanyl and cocaine provides for a sentence of up to 20 years in prison, four 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 and Chicopee Police Chief Patrick J. Major made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of the Springfield Branch Office is prosecuting the case.

BOSTON – A Plymouth, Mass. man was sentenced today for his involvement in a COVID-19 relief fund fraud scheme.

Ferris Brooks, 41, was sentenced by U.S. Senior District Court Judge William G. Young to three years of supervised release, with the first six months to be served in home confinement. In February 2024, Brooks pleaded guilty to theft of government property. 

From April to December 2020, Brooks submitted multiple applications for government benefits, both in his own name and in the names of friends and family, that contained false information. Specifically, Brooks submitted an application for an Economic Injury Disaster Loan with the U.S. Small Business Administration in the name of a fake business. Brooks also submitted applications for Pandemic Unemployment Assistance and filed tax returns for Economic Impact Payments in the names of friends and family that contained false employment information. Brooks directed payments on the various fraudulent claims to bank accounts that he controlled and split the proceeds with his friends and family. The various fraudulent claims paid out more than $150,000 in pandemic relief funds.

Acting United States Attorney Joshua S. Levy; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division made the announcement today. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

BOSTON – A Dominican Republic man residing in Dorchester was sentenced today for trafficking multiple kilograms of counterfeit pills, including pills that contained fentanyl, through the mail.

Rahelin Reynoso, 34, was sentenced by U.S. District Court Judge Angel Kelley to six years in prison and two years of supervised release. In November 2023, Reynoso pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl. 

Between September 2022 and November 2022, Reynoso worked at a pill press location in Mattapan, Mass. manufacturing counterfeit pills, including pills containing fentanyl, that were then counted, packaged and shipped to locations throughout the United States. 
    
In November 2022, a search of the apartment where Reynoso worked resulted in over 20 kilograms of pills in various colors, over 20 kilograms of loose powder, numerous packages and mailing labels and three industrial grade pill presses being recovered. In total, over 12 kilograms of fentanyl were found in the apartment as well as heroin, cocaine and methamphetamine. 

Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today. Valuable assistance was provided by the Boston Police Department; Massachusetts State Police; United States Customs and Border Protection; Drug Enforcement Administration; and U.S. Food and Drug Administration. Assistant U.S. Attorneys J. Mackenzie Duane and Jennifer Zacks of the Narcotics & Money Laundering Unit prosecuted the case.  

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.

BOSTON – A Mashpee man has been charged, and has agreed to plead guilty, in connection with a scheme to artificially inflate the trading price of Getty Images Holdings, Inc. and attempting to cover up the alleged scheme.

Robert Scott Murray, 60, has been charged and has agreed to plead guilty to one count of securities fraud. He will appear in federal court in Boston at a later date. 

Getty Images Holdings, Inc. (Getty) is a visual media company and supplier of images, videos and music, headquartered in Seattle. Getty’s stock is publicly traded on the New York Stock Exchange under the ticker symbol GETY. Murray was a long-time investor who previously served as the Chief Executive Officer of multiple public companies, including Stream Global Services and 3Com. It is alleged that in April 2023 Murray owned approximately 300,000 GETY shares. Thereafter, Murray allegedly issued press releases and sent emails in the name of Trillium Capital LLC – a “venture investment company” located in Massachusetts of which Murray was the sole owner and manager – urging that Getty add Murray to its board of directors. Murray’s efforts to join Getty’s board of directors failed.

Murray allegedly proceeded to make false and misleading statements, including through press releases and in media interviews, with the purpose of artificially inflating the GETY trading price so that Murray could sell the GETY shares he owned at the artificially inflated price. On Friday, April 21, 2023, GETY shares closed at a trading price of $5.06 per share. On Monday, April 24, 2023, prior to the market opening, Murray allegedly caused the publication of a press release in which Trillium Capital made a proposal to acquire Getty for “$10 per share.” When the market opened, GETY shares traded at $7.88 per share, nearly 56 percent above the prior closing price. According to court documents, Murray then sold all the GETY shares he owned within less than one hour for approximately $1,486,467. It is further alleged that Murray’s friend, who Murray had previously instructed to buy GETY shares, also sold shares that same morning at Murray’s direction for approximately $558,328.

On or about Dec. 6, 2023, at the direction of law enforcement, Murray’s friend texted Murray, “I just got a subpoena from the SEC” and “they’re asking me for any communications with you” related to “Getty stock.” Murray allegedly responded, “just say there were none” and “you should delete all my texts.” Murray further stated that text messages are “like virginity, once you delete your virginity you ain’t getting it back.” On or about that same day, it is alleged that Murray emailed his friend a proposed response to the subpoena, which falsely stated that the friend bought Getty stock “solely based on my read of the various press releases from Trillium Capital and my knowledge that Scott Murray is a very experienced investor” and “not from any communications from Scott Murray or Trillium Capital.” It is further alleged that when approached by law enforcement in February 2024, Murray falsely denied telling his friend to buy Getty shares.

The charge of securities fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

The Securities and Exchange Commission filed a civil complaint against Murray alleging violations of the securities laws.

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division made the announcement. The Securities and Exchange Commission provided valuable assistance with the investigation. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.

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

BOSTON – Massachusetts doctor has agreed to pay $200,000 to resolve allegations that he violated the Anti-Kickback Statute and the False Claims Act by soliciting and receiving free products from DePuy Synthes, Inc. and DePuy Synthes Sales, Inc. (collectively “DePuy”), in return for ordering DePuy products for use in his procedures. Doctor used these free products in surgeries he performed overseas in countries including the Kingdom of Saudi Arabia, Lebanon, and Qatar. 

In January 2023, the U.S. Attorney’s Office for the District of Massachusetts announced that DePuy had agreed to pay approximately $9.75 million to resolve allegations related to its role in this conduct. DePuy manufactures and distributes medical devices, including spinal implants, and has headquarters in Raynham, Mass. 

According to the settlement agreement, Dr. Tannoury admits, acknowledges, and accepts responsibility for the facts underlying the government’s allegations. From at least July 2016 through February 2018, Dr. Tannoury received products from DePuy for use in overseas surgeries, including cages, rods, screws, plates, and modular access and retraction systems. He performed at least five surgeries using these products in countries including the Kingdom of Saudi Arabia, Lebanon and Qatar. Dr. Tannoury never paid DePuy for these products that he used overseas and continued to use DePuy products in surgeries in Boston, including for Medicare and Medicaid beneficiaries.  

The Anti-Kickback Statute (“AKS”) prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. The United States contends that Dr. Tannoury knowingly and willfully solicited and received free DePuy products, worth over $100,000, in return for Dr. Tannoury’s ordering, arranging for, and recommending the purchase of DePuy’s products in spine surgeries he performed on Medicare and Medicaid patients in Massachusetts in violation of the AKS.  

“Physicians violate the law when they solicit and receive free goods from medical device manufacturers.  Unlawful kickbacks like these can corrupt medical judgment and create an uneven playing field for companies that play by the rules,” said Acting United States Attorney Joshua S. Levy. “Today’s settlement reflects our office’s commitment to holding individuals who receive kickbacks accountable under the False Claims Act.”

“Improper financial arrangements can compromise medical judgment and adversely influence the medical decision-making process,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “These types of arrangements have no place in our health care system, and we will continue working together with our federal and state law enforcement partners to pursue such allegations.” 

“Today’s settlement resolves allegations that Dr. Tony Tannoury solicited and received illegal kickbacks, and in doing so, used his patients as pawns,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division. “Health care fraud has serious costs, and serious consequences, and the FBI will continue to make investigations like this a priority as we work to deter this behavior.”

Acting U.S. Attorney Levy, HHS-OIG SAC Coviello, and FBI SAC Cohen made the announcement today. Assistant U.S. Attorneys Jessica J. Weber and Andrew A. Caffrey, III of the Affirmative Civil Enforcement Unit handled this matter. The Commonwealth of Massachusetts is represented by Assistant Attorney General Kevin Lownds.

 

BOSTON – A Lawrence was sentenced today in federal court in Boston for his role in a fentanyl trafficking conspiracy.

Fraily Rodriguez Morillo, 26, was sentenced by U.S. District Chief Judge F. Dennis Saylor, IV to 46 months in prison to be followed by two years of supervised release. In February 2024, Morillo pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue; three counts of distribution and possession with intent to distribute 40 grams or more of fentanyl; and one count of distribution and possession with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue. 

Morillo was indicted by a federal grand jury along with Melvin Antonio Perez Medina and Manuel Fredis Guerrero Guzman in November 2022. 

Between March 2022 and August 2022, Morillo, Perez Medina and Guzman conspired to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue, in Lawrence, Woburn, Wilmington and Andover. 

In March 2022, Morillo and Guzman met with a cooperating witness to negotiate future drug deals, including the price that Guzman would charge for fentanyl and for cocaine. On two separate occasions in April 2022 Morillo distributed 50 grams of fentanyl to a cooperating witness in Lawrence. In July 2022, Morillo worked with Perez Medina to distribute nearly 130 grams of fentanyl on one occasion, and over 560 grams of a mixture of fentanyl and p-fluorofentanyl (a fentanyl analogue) on another occasion, to a cooperating witness and Woburn. In total, Morillo is responsible for the distribution of approximately 230 grams of fentanyl and 560 grams of a mixture of fentanyl and p-fluorofentanyl (a fentanyl analogue).

In August 2022, Perez Medina was arrested and found in possession of nearly two kilograms of a mixture containing fentanyl and a fentanyl analogue. The nearly two kilograms were found secreted inside of a cereal box.

On Jan. 18, 2024, Perez Medina was sentenced to 64 months in prison and three years of supervised release after previously pleasing guilty to his role in the conspiracy. In March 2024, Guzman pleaded guilty and on May 30, 2024 Guzman was sentenced to 21 months in prison to be followed by two years of supervised release

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, Boston Field Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. The Massachusetts Department of Correction; the Norfolk County Sheriff’s Office; and the Watertown, Reading, Peabody, Hudson, Concord and Waltham Police Departments provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division is prosecuting the case.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

BOSTON – A Boston man was sentenced today for unlawfully possessing a firearm and ammunition. 

Victor Florentino, 29, was sentenced by U.S. District Court Judge Patti B. Saris to 30 months in prison to be followed by three years of supervised release. In December 2023, Florentino pleaded guilty to one count of being a felon in possession of a firearm and ammunition. 

In April 2022, during a motor vehicle stop in Quincy, Florentino was found in possession of a Glock 9mm pistol and 15 rounds of ammunition. Florentino is prohibited from possessing a firearm or ammunition due to a prior felony conviction in 2016 for firearms trafficking. Florentino had completed federal supervised release two months prior to being arrested in April 2022.

Acting United States Attorney Joshua S. Levy; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney John Dawley of the Organized Crime & Gang 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.
 

BOSTON – A Boston-area man pleaded guilty today to his role in Cameron Street, a violent Boston gang.

Devante Lopes, a/k/a “D-Lopes,” 30, of Boston and Quincy, pleaded guilty to conspiracy to participate in a racketeering enterprise (more commonly referred to as RICO or racketeering conspiracy); conspiracy to distribute marijuana; and possession with intent to distribute cocaine. U.S. Senior District Court Judge William G. Young scheduled sentencing for Oct. 3, 2024.

According to court documents, the Cameron Street gang is a violent criminal enterprise whose members and associates are involved in a variety of criminal activities – including murders, attempted murders, armed robberies, carjackings, home invasions, human trafficking, as well as drug and firearms trafficking, among other offenses – in the Dorchester neighborhood of Boston and surrounding areas. It is alleged that Cameron Street members use violence against rival gangs and witnesses, typically with the use of firearms, to maintain and enhance their status and the overall reputation of the gang, as well as to protect the gang’s power, reputation and territory. Members engage in drug trafficking activity and distributed kilograms of cocaine, cocaine base (crack cocaine), oxycodone and marijuana throughout Massachusetts. During the investigation, 21 firearms and hundreds of rounds of ammunition were allegedly seized from 11 of the defendants.    

Lopes was identified by several cooperating witnesses as a member of Cameron Street. From 2019 through 2020, Lopes regularly received large quantities of marijuana from California, for which he shipped packages containing between $40,000 to $50,000 in cash in exchange.

 

    
During a search of Lopes’ residence in April 2022, 800 grams of cocaine was seized from inside a bench by his bed. Also discovered during the search were two hidden compartments in Lopes’ apartment, including one concealed inside a shelf that contained approximately $5,000 in cash, a box of ammunition and foam cut-outs for a firearm. The second hidden compartment was found inside a mirror and contained a foam insert. 

The charge of RICO conspiracy and conspiracy to interfere with commerce by force or violence each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to distribute marijuana and possession with intent to distribute cocaine provide for a sentence of up to 20 years in prison, at least three years of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Feld Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; United States Postal Inspection Service; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher Pohl and Charles Dell’Anno of the Narcotics & Money Laundering Unit are prosecuting the case.

This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Lawrence man was sentenced today in federal court in Boston for his role in a fentanyl trafficking conspiracy.

Fredis Manuel Guerrero Guzman, 28, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor, IV to 21 months in prison to be followed by two years of supervised release. In March 2024, Guzman pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue; one count of distribution and possession with intent to distribute 40 grams or more of fentanyl; and aiding and abetting. 

Guzman was indicted by a federal grand jury along with Melvin Antonio Perez Medina and Fraily Rodriguez Morillo in November 2022.

Between March 2022 and August 2022, Guzman, Morillo and Medina conspired to distribute and possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue, in Lawrence, Woburn, Wilmington and Andover. Specifically, in March 2022, Guzman and Morillo met with a cooperating witness to negotiate future drug deals, including the price that Guzman would charge for fentanyl and cocaine. Thereafter, Guzman and Morillo distributed 50 grams of fentanyl to a cooperating witness in April 2022. In July 2022, Morillo and Perez Medina distributed an additional nearly 130 grams of fentanyl to a cooperating witness on one occasion, as well as over 560 grams of a fentanyl and fentanyl analogue mixture to cooperating witnesses on another occasion. 

In August 2022, Perez Medina was arrested and found in possession of nearly two kilograms of a mixture containing fentanyl and a fentanyl analogue hidden inside of a cereal box. 

On Jan. 18, 2024, Perez Medina was sentenced to 64 months in prison and three years of supervised release after previously pleading guilty to his role in the conspiracy. Morillo pleaded guilty on Feb. 12, 2024 and is scheduled to be sentenced on May 31, 2024.

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, Boston Field Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. The Massachusetts Department of Correction; the Norfolk County Sheriff’s Office; and the Watertown, Reading, Peabody, Hudson, Concord and Waltham Police Departments provided valuable assistance. Assistant U.S. Attorney Alathea Porter 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.

BOSTON – A Lawrence man was indicted today by a federal grand jury in Boston for his involvement in a conspiracy to distribute cocaine.

Victor Berroa Mercedes, 31, has been charged with one count of conspiracy to distribute and possess with intent to distribute cocaine and one count of possession with intent to distribute cocaine. Berroa Mercedes will appear in federal court in Boston at a later date.

 According to the charging document, on May 4, 2024, Berroa Mercedes allegedly met with a cooperating source and accepted delivery of 32 kilograms of suspected cocaine in a Woburn parking lot. During his subsequent arrest, it is alleged that Berroa Mercedes dropped a plastic bag containing $32,800 in cash while attempting to flee from officers. He was immediately apprehended. 

The charges of conspiracy to distribute and possess with intent to distribute cocaine and possession with intent to distribute cocaine each provide 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 on 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 Boston Police, Massachusetts State Police and Illinois State Police. Assistant U.S. Attorney John Mulcahy is prosecuting the case.

The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Holyoke man was sentenced today in federal court in Springfield in connection with a string of nine armed robberies of convenience stores across Western Massachusetts.

Alfredo Aldeco, 38, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 13 years in prison to be followed by three years of supervised release. Aldeco was also ordered to pay forfeiture and restitution of $7,375. In March 2024, Aldeco pleaded guilty to one count of interference with commerce by robbery, one count of using a firearm in relation to crime of violence and one count of being a felon in possession of a firearm and ammunition. 

On Nov. 14, 2018 Aldeco, and co-defendant Emilio Rivera, robbed a clerk in a West Springfield convenience store at gunpoint. After forcibly taking cash and cigarettes from the clerk, Aldeco warned the clerk, “If you call the cops, I will come back and kill you.” The firearm used in the robbery was later found during a search of Rivera’s home – in a bedroom being occupied by Aldeco. At the time, Aldeco was prohibited from possessing a firearm or ammunition due to a prior felony conviction.

The November 2018 robbery was the last in a string of nine robberies that took place in Holyoke, Chicopee, Northampton, West Springfield and Agawam over the two-week period. In each of the robberies, Aldeco held store clerks at gunpoint. In total, Aldeco robbed the stores of almost $8,000 in cash.

On July 6, 2023, Rivera was sentenced to six years in prison followed by three years of supervised release.

Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives made the announcement. Valuable assistance was provided by the Massachusetts State Police and the West Springfield, Holyoke, Agawam, Chicopee, Northampton and Springfield Police Departments. Assistant U.S. Attorney Deepika Bains Shukla, Chief of the Springfield Branch Office, prosecuted the case.

BOSTON – A federal inmate was indicted by a federal grand jury in Boston today for allegedly sending several threatening letters to an employee at the John Joseph Moakley United States Courthouse.

Devin James Melycher, 31, has been indicted on three counts of mailing threatening communications. He will appear in federal court in Boston at a later date.

According to the charging documents, Melycher is a federal inmate who, since 2023, has been in the custody of the Bureau of Prisons. It is alleged that on three separate occasions – Dec. 16, 2022; Jan. 3, 2023; and Jan. 12, 2023 – Melycher sent letters addressed to a U.S. official at the John Joseph Moakley U.S. Courthouse in Boston threatening to injure the victim employee.

The charges of using of mailing threatening communications each provide 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 and Brian Kyes, U.S. Marshal for the District of Massachusetts made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.

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

BOSTON – A Fall River man was sentenced today for his role in a drug distribution conspiracy involving thousands of oxycodone pills.

Austin Gonsalves, 37, was sentenced by U.S. District Court Judge Denise J. Casper to 41 months in prison, to be followed by three years of supervised release. Gonsalves was also ordered to forfeit $16,130. In May 2024, Gonsalves pleaded guilty to one count of conspiracy to distribute controlled substances. Gonsalves was arrested and charged along with five others in July 2023 for their alleged involvement in a drug trafficking organization that distributed oxycodone pills across Southeastern Massachusetts. The defendants were subsequently indicted by a federal grand jury in August 2023.

Between at least February 2023 and May 2023, Gonsalves obtained hundreds of pills at a time, allegedly from co-defendant Kenneth Veiga, in exchange for tens of thousands of dollars and redistributed the pills to others. On one occasion alone, Gonsalves paid $22,000 to obtain 800 oxycodone for further distribution. A search of Gonsalves’ Fall River residence in July 2023 resulted in the seizure of approximately $16,000 in cash and approximately 400 oxycodone pills.

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. Special assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives; U.S. Coast Guard Investigative Service; Barnstable County Sheriff’s Office; and the Barnstable, Dennis, Bourne, Mashpee, Yarmouth, Sandwich and Falmouth 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.  

BOSTON – A Brockton man was sentenced today in federal court in Boston for coercing three minors to produce child sexual abuse material (CSAM).

Zaire Aquil Lodge, 46, was sentenced by U.S. District Court Judge Richard G. Stearns to 15 years in federal prison and five years of supervised release. In January 2024, Lodge pleaded guilty to three counts of sexual exploitation of children and one count of receipt of child pornography. 

On various dates in 2021, Lodge created a false online persona of a teenage boy which he used to convince at least three minor victims to engage in sexually explicit conduct and send him sexualized images of themselves. Additionally, Lodge knowingly received and attempted to receive CSAM between February and October 2021. 

Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.

Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Brockton Police Chief Brenda Perez made the announcement today. Assistant U.S. Attorney David G. Tobin of the Major Crimes Unit prosecuted 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.

BOSTON – A Brazilian man, residing in Malden, was indicted yesterday for using and possessing a fraudulently obtained visa to enter the United States and lying on his asylum application. Upon applying for a U.S. Visa, the defendant allegedly never disclosed to U.S. Immigration authorities his involvement in the murders of 11 people, mostly teenagers, in Brazil in retaliation for the death of a police officer, an incident known as the The Slaughter of Curió.

Antonio Jose De Abreu Vidal Filho, 30, was indicted on two counts of visa fraud, two counts of perjury and one count of falsifying, concealing and covering up a material fact. Following an initial appearance in federal court in Boston yesterday, De Abreu was ordered detained pending a hearing scheduled for June 5, 2024.

According to the indictment, in April 2014, De Abreu joined the Ceara State Military Police – Brazilian state forces who, under the governor, do first line policing on the street. It is alleged that in the early morning hours of Nov. 12, 2015, numerous Brazilian military police officers employed by the government of the Brazilian state of Ceará, including De Abreu, participated in a mass killing event of primarily young people from the impoverished neighborhoods of Barroso, Messejana, Guajeru, Curió and Lagoa Redonda in the capital of Ceará. The killing was in retaliation for the death of another police officer earlier that evening who was shot and killed in the Lagoa Redonda neighborhood, attempting to defend his wife who was being assaulted. In total, 11 people, mostly teenagers, were murdered and many others seriously injured and tortured. This incident has come to be known as A Chacina do Curió or The Slaughter of Curió or The Curió Massacre. A total of 45 individuals, including De Abreu, were charged by the Brazilian authorities and, on Aug. 31, 2016, De Abreu was arrested and detained by the Brazilian police. He was subsequently released pending trial on May 24, 2017.  

According to the indictment, two weeks later, on June 9, 2017, while in Recife, Brazil, De Abreu applied for a United States non-immigrant B2 visitor visa. When asked whether he had ever been arrested or convicted for any offense or crime, De Abreu responded “no.” Thereafter, on or about June 21, 2017, the United States Department of State approved De Abreu’s Visa Application and issued him the B2 Visa based upon his alleged false representations in the Visa Application. De Abreu used the B2 Visa and travelled to Miami on May 30, 2018. 

Between May 30, 2018 through Aug. 14, 2023, as a result of the approval of his Visa Application, De Abreu obtained various state driver’s licenses, a social security card, travel documents and authorizations for employment.  

On Jan. 29, 2020, De Abreu applied for asylum. It is alleged that De Abreau lied when asked whether he had ever been accused, charged, arrested, detained, interrogated and imprisoned in any country other than the United States. He also allegedly failed to disclose his arrest and detention in Brazil when he applied for adjustment of status with United States Citizenship and Immigration Service.
 
On June 25, 2023, De Abreu was convicted of 11 counts of murder, three counts of attempted murder and four counts of physical and mental torture in the First Court of Fortaleza, Ceará. That same day, De Abreu was sentenced to 275 years and 11 months in prison and an arrest warrant issued. 

On Feb. 9, 2024, De Abreu testified under oath at an immigration hearing conducted by the Immigration Court. At that hearing, De Abreu falsely claimed that he had never lied to immigration officials and that the only reason he had left off important information on immigration documents filed with the United States government was because he had not yet been arrested.

The charge of misuse of visas, permits and other documents 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 perjury 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 falsifying, concealing, and covering up a material fact 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; Assistant Attorney General Matthew G. Olsen for the Justice Department’s National Security Division; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; Bradley Parker, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; and Mathew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Denis C. Riordan, District Director of the Fraud Detection and National Security Division of United States Citizenship and Immigration Services, Boston Field Division made the announcement today. This matter was investigated with the assistance of the United States Interagency Human Rights Violators & War Crimes Center. Assistant U.S. Attorney Laura J. Kaplan of the National Security Unit is prosecuting the case.

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

BOSTON – A Jamaican man was sentenced today for his role in the laundering of hundreds of thousands of dollars in drug trafficking proceeds from Colombian cartels through banking systems around the world.  

Seivright Donald Afflick, 56, was sentenced by U.S. District Court Judge Richard G. Stearns to 37 months in prison. The defendant will be subject to deportation proceedings upon completion of the imposed sentence. In February 2024, Afflick pleaded guilty to money laundering conspiracy and conducting substantive money laundering transactions.

Beginning in 2016 and continuing until 2022, an investigation into a sophisticated money laundering organization based primarily in Barranquilla, Colombia was conducted. During an extensive five-year investigation, the organization allegedly laundered over $6 million in drug proceeds through intermediary banks in the United States, including banks in Massachusetts, as well as additional proceeds through banks in the Caribbean and Europe by use of the Colombian Black Market Peso Exchange (BMPE) – a common method of trade-based money laundering used to repatriate the proceeds of drug trafficking to Colombia. An undercover agent infiltrated the organization by portraying himself as an international money launderer able to pick up bulk cash throughout the world, launder the proceeds through his United States-based accounts and send the money to Colombia through the BMPE. 

Throughout the course of the investigation, members of the money laundering organization would contact the undercover and arrange meetings for the undercover and the undercover’s purported associates to collect bulk cash throughout the world. Individuals, such as Afflick, performed the role of money courier. Afflick delivered bulk cash on two occasions in Jamaica. That cash was then deposited into the undercover bank account in Massachusetts, and then subsequently wired to accounts and repatriated back to drug traffickers in Colombia. Over the course of the conspiracy, Afflick was responsible for the laundering of approximately $670,000 in drug proceeds.

Afflick was charged in a 50-count indictment along with 19 other individuals in March 2022. Afflick is the sixth defendant to be sentenced in the case. Three other defendants have pleaded guilty and are awaiting sentencing. The remaining defendants have pleaded not guilty and are awaiting trial. 

Acting United States Attorney Joshua R. Levy and Stephen Belleau, Acting Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorneys Jared C. Dolan and Alathea E. Porter prosecuted the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A former golf professional, who worked at two courses owned by the City of Springfield, was sentenced today for tax fraud.

Ryan McDowell, 32, of Springfield, Mass. was sentenced by U.S. District Court Judge Mark G. Mastroianni to 12 months of probation and restitution of $101,050 payable to the City of Springfield and $34,236 payable to the Internal Revenue Service. McDowell pleaded guilty to six counts of tax fraud in September 2018.

Between 2011 and 2016, McDowell worked as an Assistant Golf Professional for a golf management company that contracted with the City of Springfield to manage its two municipal golf courses, Franconia and Veterans Memorial Golf Courses. During that time period, McDowell skimmed approximately $101,050 from golf revenues belonging to the City and then filed false tax returns each year that intentionally omitted the stolen money. McDowell’s filing of the false tax returns resulted in a federal tax loss of $34,236.  

Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorneys Steven H. Breslow and Neil Desroches of the Springfield Branch Office prosecuted the case. 

BOSTON – A Colombian man was sentenced yesterday for his for his participation in a money laundering conspiracy.

Yimmy Rafael Sanchez-Jimenez, 46, was sentenced by U.S. District Court Judge Richard G. Stearns to 34 months in prison. Sanchez-Jimenez will be subject to deportation proceedings upon completion of the imposed sentence. In January 2024, Sanchez-Jimenez pleaded guilty to money laundering conspiracy and conducting substantive money laundering transactions.

Beginning in 2016 and continuing until 2022, an investigation into a money laundering organization based primarily in Barranquilla, Colombia was conducted. An undercover agent infiltrated the organization by portraying himself as an international money launderer able to pick up bulk cash throughout the world, launder the proceeds through his United States-based accounts and send the money to Colombia through the Black Market Peso Exchange – a common method of trade-based money laundering used to repatriate the proceeds of drug trafficking to Colombia. 

Sanchez-Jimenez was a money broker based in Colombia who facilitated drug money pickups throughout the world, including in Los Angeles, California and in Canada. Sanchez-Jimenez also facilitated the transfer of those drug proceeds back to accounts in Colombia by using fake documentation to justify the transfers, in order to repatriate the proceeds of drug trafficking in Colombia. Over the course of the conspiracy, Sanchez-Jimenez was responsible for the laundering of over $550,000 in drug proceeds.

Sanchez-Jimenez was charged in a 50-count indictment along with 19 other individuals in March 2022. Sanchez-Jimenez is the fifth defendant to be sentenced in the case. Three defendants have pleaded guilty and are awaiting sentencing. The remaining defendants have pleaded not guilty and are awaiting trial.

Acting United States Attorney Joshua R. Levy and Stephen Belleau, Acting Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorneys Jared C. Dolan and Alathea E. Porter prosecuted the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Heath Street Gang member/associate pleaded guilty today in federal court in Boston to unlawfully possessing a firearm. 

Deondre Blanding, 27, of Roslindale, pleaded guilty to one count of possession of a firearm in in furtherance of a drug trafficking crime. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Sept. 6, 2024. Blanding was charged and arrested in February 2024, along with over 40 alleged Heath Street Gang members/associates, who were charged with racketeering conspiracy, drug trafficking, firearms and financial fraud charges.

On Oct. 8, 2023, Blanding arranged to buy three pounds of marijuana from an individual and arrived to the deal armed with a firearm. The arranged drug deal resulted in a shooting in the middle of a Randolph neighborhood involving Blanding and two other individuals. Prior to this shooting, investigators had identified Blanding as being a marijuana dealer for the Heath Street Gang who distributed pound-quantity amounts of marijuana.

The charge of possession of firearm in furtherance of violent or drug trafficking crime provides for a mandatory sentence of five years up to life in prison, five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Randolph Police Department. Assistant U.S. Attorneys Michael Crowley and Sarah Hoefle of the Organized Crime & Gang Unit are prosecuting the case.

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

BOSTON – A Quincy man was sentenced today in federal court in Boston for a million-dollar bank fraud scheme in which he deposited hundreds of counterfeit checks.

Hui Zhang, 42, was sentenced by U.S. District Court Judge Myong J. Joun to two years in prison to be followed by three years of supervised release, with the first year to be served on home confinement. Zhang was also ordered to pay restitution and forfeiture of $1,035,350. In March 2024, Zhang pleaded guilty to one count of bank fraud.

From in or around June 2020 through at least May 2022, Zhang opened fraudulent bank accounts under false identities into which he electronically deposited approximately 114 counterfeit checks – totaling more than $1 million. The counterfeit checks were drawn on the account of a Boston-based retailer. Zhang subsequently withdrew hundreds of thousands of dollars in cash from these accounts via ATMs.  

In 2017, Zhang was convicted of forgery of a check and other offenses and was sentenced to probation. In 2018, after being found in possession of various forged credit cards and fraudulent identity cards, Zhang was convicted of identity fraud and sentenced to two 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 today. Assistant U.S. Attorney William F. Abely, Chief of the Criminal Division prosecuted the case.

BOSTON – The former owner of several physical therapy clinics in Greater Boston was sentenced on May 23, 2024 for health care fraud charges.

Chang Goo Yoon, 62, a South Korean national residing in Queens, N.Y., was sentenced by U.S. District Court Judge Indira Talwani to 27 months in prison and three years of supervised release. Yoon was also ordered to pay restitution in an amount to be determined at a later date. In January 2024, Yoon was convicted following a seven-day jury trial on two counts of health care fraud. 

“Mr. Yoon took advantage of his patients and the trust-based health insurance system for years by billing for appointments that never happened. In addition, he pressured his employees to participate in his unethical and illegal activities,” said Acting United States Attorney Joshua S. Levy. “These are not victimless crimes.  Health care fraud affects everyone by driving up costs for individuals and employers who pay into the health insurance system with their hard earned money. This sentence should send a strong message to others who seek to defraud the system that they will be identified, prosecuted and held accountable.”

“Today, we see yet another local physician going to prison for providing physical therapy services without a license and fraudulently billing for bogus appointments,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This long-running scheme appears fueled by sheer greed, and the FBI and our partners are committed to bringing medical professionals like Chang Goo Yoon, who choose to betray their oath and get involved in fraud, to justice.” 

“This sentence shows that health care fraud is not tolerated in the Commonwealth of Massachusetts. The Insurance Fraud Bureau of Massachusetts places a high priority on fighting this type of insurance fraud, which affects the citizens of this state. We appreciate the collaboration of our investigative partners in combatting fraud in our healthcare system,” said Anthony DiPaolo, Executive Director of the Insurance Fraud Bureau of Massachusetts.

“Physical therapy patients deserve to receive treatment from a provider that will be honest with them and their health insurance provider” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “Dr. Chang Yoon lied about providing clinical services on dates he never saw patients and then had insurance payments fraudulently sent directly to him via U.S. Mail. Thanks to postal inspectors and our law enforcement partners, Dr. Yoon was sentenced today for his actions. The U.S. Postal Inspection Service is committed to protecting the integrity of the mail stream and all customers who use it.”

Yoon was the owner and operator of several physical therapy clinics in Allston, Waltham and Brookline between 2014 and 2018. Yoon billed patients for non-existent physical therapy appointments, including approximately $150,000 in claims billed on dates when Yoon was traveling in South Korea, Los Angeles and Toronto. Yoon also billed $50,000 in claims on dates when he was gambling at casinos including the Golden Nugget in Atlantic City, N.J., MGM Springfield in Massachusetts and Twin River Casino in Lincoln, R.I. Additionally, Yoon submitted approximately $30,000 in physical therapy claims for himself after three automobile accidents. Most of those claims falsely listed one of Yoon’s employees as the servicing physical therapist. The remaining claims listed Yoon as both the patient and the servicing physical therapist.  

In total, the Court found that the defendant submitted more than $1 million in false insurance claims and reaped more than $300,000 in fraudulent proceeds.

Acting U.S. Attorney Levy, FBI SAC Cohen, IFB Executive Director DiPaolo and USPIS INC Larco-Ward made the announcement. Assistant U.S. Attorneys Elysa Q. Wan and Patrick M. Callahan of the Criminal Division prosecuted the case.

BOSTON – A Quincy man has been arrested and charged for allegedly possessing and receiving child sexual abuse material (CSAM).

Carter Peaseley, 40, was charged with possession and receipt of child pornography. Peaseley was arrested on May 23, 2024 and released on conditions including a curfew, electronic location monitoring and an order not to have unsupervised contact with children.
 
According to the charging documents, for approximately one year, Peaseley was involved in an online relationship with a 15-year-old minor, during which he allegedly discussed wanting to teach the minor how to kiss – among other sexually explicit activities – and his plan to visit the minor. Peaseley allegedly instructed the minor not to save his texts and suggested they should use a different platform. It is further alleged that Peaseley and the minor exchanged photographs which included sexually explicit photos of the minor. According to court documents, during a search of Peaseley’s residence, approximately 243 images of CSAM were found on a computer and cellphone which were seized. 

Peaseley was formerly a teacher at the John D. O’Bryant School of Mathematics and Science and the Match Charter School, both of which are in Boston.  

The charge of possession and receipt of child pornography provides for a mandatory minimum of five years in prison and maximum sentence of 20 years in prison, five years and up to a lifetime of supervised release, 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. Assistant U.S. Attorney David Tobin 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.

BOSTON – An Adams man has been indicted by a federal grand jury in Springfield, Mass. for sexually exploiting a child to produce child sexual abuse material (CSAM).

Brian Warner, 38, was charged with one count of sexual exploitation of a child. Warner was arrested today and, following an initial appearance in federal court in Springfield, was detained pending a detention hearing tomorrow. 

According to the indictment, between July 2016 and December 2016, Warner employed, used, persuaded, induced, enticed and coerced a minor to engage in sexually explicit conduct for the purpose of producing CSAM 

The charges of sexual exploitation a child and attempted sexual exploitation of a child provide for a mandatory minimum sentence of 15 years and up to 30 years in prison, a lifetime of supervised release and a $250,000 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 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.

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.

BOSTON – A New Bedford man was charged today in federal court in Boston with fraudulently receiving Social Security disability benefits.   

Anthony Patterson, 62, was charged with one count of theft of government money. Patterson will make an appearance in federal court in Boston at a later date.

The charging document alleges that, from May 2013 to May 2023, Patterson stole approximately $92,582 in Social Security disability benefits.

The charge of theft of government money provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Bradley Parker, Acting Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division made the announcement today.  Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit is prosecuting the case.

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

BOSTON – A man whose true identity is unknown was arrested yesterday for allegedly using the stolen identity of a deceased individual to obtain government-issued identification documents, employment, and professional certifications.

John Doe, age unknown, of Quincy, was charged with one count each of false statement in a passport application and aggravated identity theft. Following an initial appearance in federal court in Boston yesterday, Doe was ordered detained pending a hearing scheduled for May 29, 2024 at 2 p.m.

According to the charging documents, Doe used the name, date of birth and Social Security number the a victim who passed away in 2002 to obtain and use multiple government-issued identification documents in the victim’s name, including Massachusetts driver’s licenses as well as copies of the victim’s birth certificate and Social Security card. Using these documents, it is alleged that Doe posed as the victim to apply for employment as a paramedic, obtain an EMT-Basic Certification, attend and graduate from a Firefighting Academy, and obtain employment with the Melrose Fire Department. It is alleged that, in March 2023, Doe applied for a U.S. passport using the victim’s stolen identity. However, according to the charging documents, a passport application for the victim had already been executed by the victim’s mother in 1989. Therefore, a passport was not issued to Doe.

During the investigation, facial recognition allegedly identified a second Massachusetts driver’s license issued to Doe under the name of Truong Nguyen. According to the charging documents, Nguyen entered the United States from Vietnam in 1979 and was ordered deported in 1991 following a second-degree burglary conviction. According to court documents Nguyen was never physically deported to Vietnam. In 2010, Nguyen was arrested for embezzlement and larceny for allegedly stealing over $46,000 from the Norwell Firefighters Union while working as an officer for the union.

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 $250,000 fine. The charging statute for aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States 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 the U.S. State Department’s Diplomatic Security Service (DSS) Boston Field Office; Quincy Police Chief Mark Kennedy; Melrose Police Chief Kevin M. Faller; Acting Melrose Fire Department Chief John White; Middlesex County District Attorney Marian Ryan; and Norfolk County District Attorney Michael Morrissey made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus 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.
 

BOSTON – A Fitchburg man pleaded guilty today in Worcester federal court for unlawfully possessing a firearm as a convicted felon.

Satron Pridgen, 46,  pleaded guilty to being a felon in possession of a firearm and ammunition. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for Aug. 22, 2024. In November 2023, Pridgen was indicted by a federal grand jury.

At approximately 1:30 a.m. on Sept. 16, 2023, Pridgen was outside of Mill City Pub in Fitchburg. An altercation ensued between two men. During the altercation, Pridgen approached a third man from behind, grabbed him and held him around the neck in a chokehold, then pulled out a loaded pistol which he used to beat the man in the head multiple times. When law enforcement intervened, Pridgen ran off and attempted to discard the firearm by a dumpster before being apprehended.  

Pridgen is prohibited from possessing firearms and ammunition due to numerous prior convictions out of Worcester Superior Court including: a November 1999 conviction of assault and battery by means of a dangerous weapon for which he was sentenced to 9 to 10 years in state prison; an October 2011 conviction of armed assault with intent to rob, assault and battery by means of a dangerous weapon causing serious bodily injury and possession of a firearm and ammunition as a career criminal for which he was sentenced to 10-12 years in state prison; and an October 2011 conviction of possession with intent to distribute a controlled substance and distribution of cocaine, for which he was sentenced to 9 to 10 years in state prison.

The charge of being a felon in possession of a firearm provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Fitchburg Police Chief Ernest F. Martineau made the announcement today. Assistant U.S. Attorney Kristen Noto of the Worcester Branch Office is prosecuting the case.   

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce 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.

BOSTON – A former office manager of a Brookline medical practice pleaded guilty today to embezzling over $650,000 from the practice over several years.

Kathleen Libby, 40, of Brookline, pleaded guilty to one count of wire fraud. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 4, 2024.

Libby stole from the medical practice in a variety of ways, including by transferring funds from the practice to a personal PayPal account she established named “Medline Surgical Supplies.” In doing so, Libby created the false impression that transfers from the medical practice to the PayPal account were expenses the medical practice had incurred for supplies.

In addition, Libby used the medical practice’s bank account to make payments toward purchases she had made at a variety of retailers, including Louis Vuitton, Bloomingdales, Best Buy, Target and travel-related websites. Libby also placed two of her relatives on the medical practice’s payroll and used its credit cards for her own personal benefit. 

The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.  

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Mackenzie A. Queenin of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
 

BOSTON - A Quincy man was sentenced today for illegally possessing a loaded handgun while trafficking cocaine and fentanyl.

Rey David Fulcar, 38, was sentenced by U.S. District Court Judge Denise J. Casper to eight years in prison and three years of supervised release. Fulcar pleaded guilty in December 2023 to one count of being a felon in possession of a firearm and ammunition and two counts of possessing cocaine and fentanyl with the intent to distribute.

On July 23, 2022 Fulcar was observed conducting a drug deal in his car in Boston. The buyer was stopped by law enforcement and found with three bags of crack cocaine he had just bought from Fulcar. Fulcar was subsequently stopped as he drove away from the drug deal and attempted to flee during his arrest. Thirteen more bags of cocaine and fentanyl were found hidden inside Fulcar’s underwear. Additionally, five large shrink-wrapped packages containing suspected marijuana, as well as $1,141 cash were found inside Fulcar’s vehicle.

During a subsequent search of Fulcar’s Quincy apartment, fentanyl and a stash of cocaine in trafficking quantities were found along with a semi-automatic pistol loaded with seven rounds of ammunition. Also found was a handwritten list Fulcar maintained detailing drug customers, their orders and debts owed, a scale, cutting agent, packaging material and other drug paraphernalia in his kitchen.

Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Michael Cox, Commissioner of the Boston Police Department made the announcement today. Assistant U.S. Attorneys Fred M. Wyshak, III and John T. Dawley and of the Organized Crime & Gang Unit prosecuted the case.

The investigation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.

An Illinois man pleaded guilty today to his role in a nationwide wire fraud conspiracy that victimized businesses and individuals across the United States, and caused a total loss of $2,299,842. 

According to court documents, between at least March 2016 and September 2020, Antonio M. Strong, 31, of Lansing, Illinois, conspired with Herbert Wright, Joseph Williams, Demario Sorrells, and others to defraud numerous businesses and individuals by using unauthorized and stolen payment card account information to obtain valuable goods and services from those businesses and individuals, including private jet charters, private yacht charters, luxury car rentals, luxury hotel and vacation rental accommodations, private chef and security guard services, designer puppies, limousine and chauffeur services, commercial airline flights, consumer goods, meals, and other incidentals. The actual cardholders discovered these transactions on their accounts and disputed the charges. The actual cardholders’ payment card companies then reversed their payments and charged back the transactions to the businesses and individuals, which consequently suffered losses in the amounts of the unauthorized transactions. 

During this time, Strong presented himself as a rap promoter based in the Chicago area. To conceal his identity and perpetrate the fraud, Strong used various fictitious names and aliases; provided fake driver’s licenses; used email accounts in the names of fictitious and real businesses; and falsely stated that he was from “Universal Music,” “Sony Music,” “Epic Music,” and other real and fictitious companies. 

Strong pleaded guilty to one count of conspiracy to commit wire fraud and four counts of wire fraud. He is scheduled to be sentenced on Sept. 19 and faces a maximum penalty of 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines

Wright, Williams, and Sorrells have all pleaded guilty to one count of conspiracy to commit wire fraud. Wright was sentenced on Jan. 11 to three years of probation and was ordered to pay $139,968 in both restitution and forfeiture. Williams is scheduled to be sentenced on June 28, and Sorrells is scheduled to be sentenced on Aug. 29. Two other co-conspirators were indicted in October 2020 and their trial is scheduled to begin on Oct. 21.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts; and Special Agent in Charge Andrew Murphy of the U.S. Secret Service Boston Field Office made the announcement.

The U.S. Secret Service is investigating the case.

Trial Attorneys Andrew Tyler and Kyle Crawford of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Steven H. Breslow for the District of Massachusetts are prosecuting the case.

BOSTON – A Chicago-area man pleaded guilty today in federal court in Springfield, Mass. to his role in a nationwide wire fraud conspiracy that victimized businesses and individuals across the United States.  

Antonio M. Strong, 31, of Lansing, Ill., pleaded guilty to one count of conspiracy to commit wire fraud and four counts of wire fraud. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept. 19, 2024. 

Strong was indicted by a federal grand jury in October 2020 along with five co-defendants, including rap artist Herbert Wright, Joseph Williams and Demario Sorrells.

According to court documents, between at least March 2016 and September 2020, Strong conspired with Wright, Sorrells, Williams and others to defraud numerous businesses and individuals by obtaining, possessing, using and transferring unauthorized and stolen payment card account information to obtain valuable goods and services, including: private jet and yacht charters; luxury car rentals; luxury hotel and vacation rental accommodations; private chef and security guard services; designer puppies; limousine and chauffer services; and commercial airline flights, among other things. During this time, Strong presented himself as a music promoter based in the Chicago area.

The stolen payment card account information included the actual cardholders’ names, addresses, payment card account numbers, security codes and account expiration dates. Because Strong and his alleged co-conspirators provided authentic payment card information, the defrauded businesses and individuals successfully processed their transactions and provided the goods and services. The actual cardholders discovered these transactions on their accounts and disputed the charges, which were reversed by the payment card companies. As a result, the transactions were charged back to the businesses and individuals from whom Strong and his co-conspirators defrauded with the unauthorized transactions.  

To conceal his identity and perpetrate the fraud, Strong used various fictitious names and aliases; provided fake driver’s licenses in the names of both fictitious and real people; used email accounts in the names of fictitious and real businesses; and falsely stated that he was from “Universal Music,” “Sony Music,” “Epic Music,” and other real and fictitious companies.  Strong caused a total loss of $2,299,842, which he has agreed to repay.  

 In January 2024, Wright was sentenced to three years’ probation and was ordered to pay restitution and forfeiture of $139,968, as well as a $5,500 fine after previously pleading guilty. Williams and Sorrells have also pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on June 28, 2024 and Aug. 29, 2024, respectively. The remaining two defendants are pending trial. 

The charges of wire fraud conspiracy and wire fraud provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. 

Acting United States Attorney Joshua S. Levy; Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office and Trial Attorneys Andrew Tyler and Kyle Crawford of the Justice Department’s Criminal Division’s Fraud Section are prosecuting the case.

The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.  

BOSTON –  Two men have been charged with allegedly conspiring to murder a witness in a federal trial as well as rivals. One defendant also allegedly discussed the murder of federal prosecutors.

Elijah Melton, 26, of Middleborough, and Kareem Pires, 25, of Wareham, have been charged with one count each of conspiring to commit murder for hire. Pires was arrested this morning and will appear in federal court in Boston at 2 p.m. this afternoon. Melton is currently in federal custody and will appear at a later date.

In December 2023, Melton was arrested and charged in a two-count federal indictment of conspiracy to distribute and possess with the intent to distribute 400 grams or more of fentanyl and the distribution of 400 grams or more of fentanyl. Melton was released by the Court on conditions. In February 2024, Melton was arrested for allegedly violating his pre-trial release conditions. Melton was ordered detained pending trial and has remained in federal custody since.  

According to the charging documents, a cooperating witness told federal authorities that Melton had allegedly solicited him to murder a person (Target Witness) that Melton believed to be cooperating in Melton’s federal drug case. Melton allegedly told the cooperating witness that members of his gang had placed a “bounty” on the Target Witness and provided the cooperating witness with information about the Target Witness, including the city in which he resided, the car he drove, and details about distinctive jewelry he wore. Melton allegedly offered to arrange for a juvenile family member to deliver $75,000 to a family member of the cooperating witness. The cooperating witness informed federal authorities that he refused the money at that time.  
    
Melton allegedly further asked the cooperating witness to murder two other individuals that were “beefing” with Melton’s crew (Target Rival #1 and Target Rival #2). Melton allegedly provided the cooperating witness with information to identify the Target Rivals and the Target Witness. Melton also allegedly told the cooperating witness that he wanted two federal prosecutors murdered, provided the cooperating witness with certain information about the prosecutors and indicated that he would provide the money to murder the prosecutors personally.

According to the charging documents, Melton told the cooperating witness that Pires, who was not detained, could help identify the targets and locations where the targets might be found. It is alleged that Melton expected the cooperating witness to be released from prison soon thereafter and provided the cooperating witness with both a letter for Pires and the phone number for Melton’s juvenile family member. Federal authorities reviewed the letter Melton provided the cooperating witness, which allegedly included information, among other things, information concerning the plan to murder the Target Rivals. Prior to the cooperating witness’s release from custody, Melton allegedly provided him with a second letter to be delivered to Pires. Federal authorities reviewed the letter, which allegedly referenced the Target Rivals. 

According to court documents, upon his release from custody in April 2024, the cooperating witness arranged to meet with Pires. They met in a public location, where the cooperating witness delivered the second letter to Pires, who allegedly agreed to assemble information, including pictures, about the Target Witness and the Target Rivals for the cooperating witness. 

The charge of conspiracy to commit murder for hire provides for a sentence of up to 10 years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes that 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; Brian Kyes, U.S. Marshal for the District of Massachusetts; and Warden Michael Nessinger of the Donald W. Wyatt Detention Facility made the announcement today. Assistant U.S. Attorneys Anne Paruti and Mark Grady, Chief and Deputy Chief, respectively, of the Major Crimes Unit are prosecuting the case.

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

BOSTON – A Rhode Island man was sentenced today for his involvement in a drug trafficking organization (DTO) that distributed fentanyl throughout Southeastern Massachusetts and Rhode Island. 

Alfredo Valdez, 45 of Providence, R.I. was sentenced by U.S. District Court Judge Allison D. Burroughs to 30 months in prison and three years of supervised release. In February 2024, Valdez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl. Valdez was one of 10 individuals indicted by a federal grand jury in August 2022 in connection with the conspiracy.

In March 2021, an investigation began into a DTO operating in Southeastern Massachusetts and Rhode Island led by Estarlin Ortiz-Alcantara. Intercepted communications on numerous cellphones identified Valdez as a member of the DTO who conspired with Ortiz-Alcantara to regularly distribute multi-kilograms of fentanyl from a base of operations at a stash house in Fall River. During a search of the stash house in July 2022, Valdez was found inside the apartment along with more than 12 kilograms of fentanyl stored in various ceiling panels, blenders, a hydraulic press and baggies.  

Valdez is the eighth defendant to plead guilty in the case. Ortiz-Alcantara pleaded guilty in December 2023 and is scheduled to be sentenced on July 9, 2024.

Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; New Bedford Police Chief Paul Oliveira; and Fairhaven Police Chief Michael J. Myers made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Homeland Security Investigations; Bristol County Sherriff’s Office; and Fall River, Taunton, Attleboro, Scituate, Yarmouth, Providence (R.I.) and West Warwick (R.I.) 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 documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.  

BOSTON – A Canton orthopedic surgeon was sentenced today in federal court in Boston for his role in a health care fraud scheme.  

Dr. Olarewaju James Oladipo, 60, of Canton, was sentenced by U.S. District Court Judge Allison D. Burroughs to 16 months in prison, followed by one year of supervised release. In December 2023, Oladipo was convicted by a federal jury of 10 counts of health care fraud. 

From approximately January 2016 through December 2019, Oladipo devised and executed a scheme to defraud health care benefit programs by falsely billing for patient visits. Specifically, Oladipo used billing codes for more complex—and thus more expensive—services that were not provided. Oladipo falsified medical records of patient visits to reflect examinations and services that were not performed. During the four-year period, Oladipo frequently billed for more than 60 patients per day and sometimes more than 100 patients per day. The result was that many, if not most, of Oladipo’s patient visits on such days could have only lasted five minutes or less. However, Oladipo used billing codes that typically corresponded to visits of 15, 25, 30, or even 45 minutes. 

Additionally, Oladipo ensured this high flow of patients to his practice by prescribing powerful, highly addictive opioids at a rate that made him one of the top prescribers of such drugs in Massachusetts. The evidence presented at trial showed that Oladipo knowingly prescribed oxycodone to patients suffering from opioid addiction.

The U.S. Attorney’s Office for the District of Massachusetts; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Roberto Coviello, Special Agent in Charge, Health and Human Services-Office of Inspector General; and Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General (USPS-OIG), Northeast Area Field Office made the announcement. Valuable assistance was provided by the Massachusetts Attorney General’s Office; National Insurance Crime Bureau; and the Drug Enforcement Administration. Assistant U.S. Attorneys Evan D. Panich and William B. Brady are prosecuting the case.   

BOSTON – Magellan Diagnostics, Inc., a medical device company headquartered in Billerica, Mass., has agreed to resolve criminal charges relating to its concealment of a device malfunction that produced inaccurately low lead test results for potentially tens of thousands of children and other patients. 

As part of the criminal resolution, Magellan will plead guilty to violations of the federal Food, Drug and Cosmetics Act and pay a $21.8 million fine, $10.9 million in forfeiture and a minimum of $9.3 million to compensate patient victims. Today’s resolution also includes a deferred prosecution agreement to resolve felony conspiracy fraud charges against the company.  

Magellan’s devices – LeadCare Ultra, LeadCare II and LeadCare Plus – detected lead levels and lead poisoning in the blood of children and adults using either venous (i.e., blood draws through the arm) or fingerstick samples. LeadCare II, which was predominantly used to test fingerstick samples, accounted for more than half of all blood lead tests conducted in the United States from 2013 through 2017. LeadCare Plus and LeadCare Ultra were predominantly used to test venous samples.

Magellan has admitted that it misled its customers and the FDA about a serious malfunction that affected Magellan’s LeadCare devices when they were used to test venous blood samples. By hiding the malfunction and later deceiving customers and the FDA about when the company discovered the malfunction, the nature, extent and frequency of the malfunction, and the risks associated with the malfunction, Magellan caused an estimated tens of thousands of children and other patients to receive inaccurately low lead test results.

Magellan first learned that a malfunction in its LeadCare Ultra device could cause inaccurate lead test results – specifically, lead test results that were falsely low – during the FDA clearance process in June 2013. Magellan, however, released LeadCare Ultra to the market in December 2013 without informing customers or the FDA of the malfunction. Several months after the release, LeadCare Ultra customers independently discovered the malfunction and complained about inaccurate results. In response, Magellan told its customers that it had only recently identified the malfunction and had not observed the malfunction in its clinical trials prior to product release. Magellan, in fact, had known about the malfunction for over a year, including before the product release. 

Magellan’s testing in 2013 also indicated that the same malfunction affected the LeadCare II device, which was by far Magellan’s highest-revenue product. Magellan, however, did not notify its customers and the FDA about the LeadCare II malfunction until November 2016. 

In 2017, the FDA contacted Magellan and asked when the company first discovered the malfunction. Magellan’s representative falsely told the FDA that Magellan first discovered the problem after receiving customer complaints in late 2014 and shortly before Magellan notified the FDA in 2015 – even though Magellan had discovered the malfunction in 2013. Magellan then sent a false timeline to the FDA, which omitted the company’s internal 2013 studies about the malfunction.

The FDA ultimately found that the LeadCare Devices could not accurately test venous samples, leading to a recall of all LeadCare Devices using venous samples and a warning to the public not to use LeadCare Ultra, LeadCare II and LeadCare Plus for venous blood samples because of the malfunction.

According to the Centers for Disease Control and Prevention, there is no safe level of lead in the blood. Lead exposure may cause irreversible lifelong physical and mental health problems. Young children and pregnant women are most vulnerable to lead exposure, especially those from low-income households and those who live in housing built before 1978 because those homes are more likely to contain lead-based paint and have fixtures containing lead. 

As part of today’s criminal resolution, Magellan has agreed to compensate all patients who were demonstrably harmed for the pecuniary damages they suffered as a result of the malfunction in Magellan’s blood lead testing devices. If you or a family member believe you received an inaccurate blood lead test result from a LeadCare device between 2013–2017, please complete the questionnaire located on the FBI’s website at www.fbi.gov/MagellanCaseInquiry. Information about the status of the case is located on the U.S. Attorney’s Office website: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/magellan-diagnostics-inc.  

Acting U.S. Attorney Joshua S. Levy; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Roberto Coviello, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Jamie Herbert, Kelly Lawrence, Elysa Wan and Leslie Wright of the Criminal Division are prosecuting the case.

BOSTON – A Florida man has been arrested and charged for allegedly embezzling approximately $4 million from his employer, a Florida-based portfolio company owned by a Massachusetts investment firm.

Paul Schnitzer, 51, of Clermont, Fla., was charged with one count of wire fraud. Schnitzer was arrested this morning and will make an initial appearance in the Middle District of Florida tomorrow. He will appear in federal court in Boston at a later date.

According to the charging document, Schnitzer worked as the finance director for the portfolio company. It is alleged that between January 2023 and May 2024, Schnitzer made over 90 transfers, each of tens of thousands of dollars disguised as “equity distributions,” from the company’s operating account into his personal account. To hide these transfers, Schnitzer allegedly provided falsified financial reports with inflated cash balances for the company to the investment firm. It is also alleged that Schnitzer secretly used a line of credit to replenish the company’s operating account after he had stolen from it.

The charge of wire fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.

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

BOSTON – A Brooklyn man was sentenced today in federal court in Boston for his role in a drug trafficking organization (DTO) wherein he transported kilograms of cocaine from New York to Boston in August 2020.

Dinelson Hernandez-Rodriguez, 30, was sentenced by U.S. District Court Judge Patti B. Saris to 68 months incarceration and three years of supervised release. In February 2024, a jury found Hernandez-Rodriguez guilty of conspiracy to distribute and to possess with intent to distribute cocaine. 

In October 2019, an investigation began into a DTO trafficking cocaine and fentanyl in Boston and Taunton. Intercepted communications established that the DTO was supplied in part by individuals in New York. In August 2020, Hernandez-Rodriguez drove from New York to Hyde Park with kilograms of cocaine hidden in a trap compartment inside a Honda Pilot automobile. One day prior, a co-conspirator also transported kilograms of cocaine from New York to Hyde Park. In total, Hernandez-Rodriguez and his co-conspirator transported more than 50 kilograms of cocaine intended for distribution in Boston.

After cocaine was distributed in the Boston area, Hernandez-Rodriguez attempted to transport $240,240 in drug proceeds – again, hidden in the trap inside his car – back to New York but was intercepted by law enforcement.  

Hernandez-Rodriguez is the ninth defendant to be convicted in this case, either by guilty plea or following a jury trial. 

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 Connecticut State Police and the Boston, Taunton and Stratford (Conn.) Police Departments. Assistant U.S. Attorneys Samuel R. Feldman and K. Nathaniel Yeager of the Narcotics & Money Laundering Unit are prosecuting the case. 

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

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.

BOSTON – A Lowell man was sentenced today in federal court in Boston for firearms trafficking charges. 

Isael Rodriguez, 29, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 18 months in prison and three years of supervised release. In January 2024, Rodriguez pleaded guilty to one count of dealing in firearms without a license and one count of making false statements to acquire firearms from a licensed dealer. 

In January 2021 and June 2021, Rodriguez purchased a dozen Glock pistols from a licensed dealer for $500 each, falsely claiming that he was purchasing them for himself. Rodriguez then resold the firearms for profit to individuals in Massachusetts. Rodriguez is not a licensed importer, manufacturer, or dealer and Glock firearms are only allowed to be sold to active law enforcement officers.

Acting United States Attorney Joshua S. Levy; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Boston Police Commissioner Michael Cox; Lowell Superintendent of Police Gregory C. Hudon; Brookline Police Chief Jennifer M. Paster; and Brockton Police Chief Brenda I. Perez made the announcement today. Assistant U.S. Attorney John Dawley of the Organized Crime & Gang Unit prosecuted the case. 

This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. 

Peter McCarthy, 51, of Lynn, Massachusetts, the owner of Steps to Solutions Inc., a group of residential sober homes, was found liable following a five-day jury trial. In August 2021, the U.S. Attorney’s Office for the District of Massachusetts and the Justice Department’s Civil Rights Division filed a lawsuit alleging that McCarthy subjected female tenants to sexual harassment in violation of the Fair Housing Act.

“Sexual harassment of tenants is abhorrent, and the department stands committed to holding housing providers accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We commend the survivors who came forward to testify about the heinous conduct that they experienced. This verdict sends a message that there is no place in our society for landlords who abuse their position of power to prey on vulnerable people.”

“This defendant preyed on vulnerable women in recovery from addiction and forced them to choose between his sexual demands and keeping a roof over their heads. Housing is a fundamental need and every person has the right to feel safe and secure in their own home. No one should be denied housing because of their refusal to submit to unwanted sexual harassment and intimidation,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “This case should send a powerful message to all landlords that there are severe consequences to sexually exploiting tenants”

Since at least 2012 through 2021, McCarthy — the registered agent and sole officer of Steps to Solutions Inc. — sexually harassed residents of his sober homes by offering to reduce or forgive rent, granting extra house privileges or waiving security deposits in exchange for engaging in sex acts or sexually explicit photographs; and making unwanted sexual comments.

The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 40 lawsuits alleging sexual harassment in housing and recovered over $16.4 million for victims of such harassment.

Individuals who have information about this case can contact the U.S. Attorney’s Office for the District of Massachusetts by calling 617-748-3274, emailing [email protected] or visiting the case webpage.

Assistant U.S. Attorneys Gregory Dorchak, Michelle Leung and Eve Piemonte for the District of Massachusetts handled the matter, along with the Justice Department’s Civil Rights Division’s Housing Section.

BOSTON – The owner and operator of Steps to Solutions, Inc., a group of residential sober homes, has been found liable by a federal jury in Boston for sexual harassment of tenants.

Peter McCarthy, 51, of Lynn was found liable on May 17, 2024 for sexual harassment and retaliation in violation of the Fair Housing Act. Following a five-day trial, a federal jury awarded $3.8 million in damages to seven identified victims who rented from McCarthy. In August 2021, the U.S. Attorney’s Office and the Justice Department’s Civil Rights Division filed a lawsuit  alleging that McCarthy subjected tenants to sexual harassment in violation of the Fair Housing Act. The jury award includes compensatory damages for the emotional harms the victims suffered as a result of McCarthy’s conduct as well as punitive damages to punish the defendant. The Justice Department also intends to seek a civil penalty against McCarthy to vindicate the public interest and a court order for injunctive relief to prevent McCarthy from, among other things, managing Steps to Solutions sober homes or having contact with residents or prospective tenants. 

“This defendant preyed on vulnerable women in recovery from addiction and forced them to choose between his sexual demands and keeping a roof over their heads. Housing is a fundamental need and every person has the right to feel safe and secure in their own home. No one should be subjected to unwanted demands for sex acts from their landlord,” said Acting United States Attorney Joshua S. Levy. “This case should send a powerful message to all landlords that there are severe consequences to sexually exploiting tenants.”

“Sexual harassment of tenants is abhorrent, and the department stands committed to holding housing providers accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We commend the survivors who came forward to testify about the heinous conduct that they experienced. This verdict sends a message that there is no place in our society for landlords who abuse their position of power to prey on vulnerable people.” 

Since at least 2009 through 2021, McCarthy — the registered agent and sole officer of Steps to Solutions, Inc. — sexually harassed residents of his sober homes by offering to reduce or forgive rent, granting extra house privileges, or waiving security deposits in exchange for engaging in sex acts or sexually explicit photographs; and making unwanted sexual comments.

The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 40 lawsuits alleging sexual harassment in housing and recovered over $16.4 million for victims of such harassment.

Individuals who have information about this case can contact the U.S. Attorney’s Office by calling 617-748-3274, by e-mailing [email protected] or by visiting the case webpage.

Acting U.S. Attorney Levy and AAG Clarke made the announcement today. Assistant U.S. Attorneys Gregory Dorchak, Michelle Leung and Eve Piemonte of the Civil Division handled the matter along with the Housing Section of the Justice Department’s Civil Rights Division.

The Civil Rights Unit of the U.S. Attorney’s Office was established in 2016 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights. 

BOSTON – A West Roxbury man pleaded guilty on May 15, 2024 in federal court in Boston to a fraud charge in connection with a scheme to fraudulently obtain pandemic-related relief funds from the Paycheck Protection Program (PPP).

Donovan Scarlett, 25, pleaded guilty to one count of wire fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Sept. 5, 2024. 

Scarlett was charged and arrested in February 2024 along with over 40 alleged Heath Street Gang members/associates, who were charged with racketeering conspiracy; drug trafficking; firearms charges; and financial frauds, including COVID-related fraud.

In March 2021, Scarlett submitted a fraudulent PPP loan application on behalf of his purported business. The fraudulent PPP loan application contained multiple false statements, including false representations regarding the purported business’s total gross income in 2020 and Scarlett’s criminal history. Scarlett also submitted false tax records in support of his loan application. Based on the fraudulent application, Scarlett received approximately $13,600 which he spent on non-business-related expenses.

The CARES Act created a temporary loan program directed at small businesses called the PPP. PPP loans were processed by private financial institutions and fully guaranteed by the U.S. Small Business Administration. If the small business used the loan funds for approved purposes, such as payroll, the loan could be forgiven by the financial institution and paid for by the U.S. Small Business Administration.

The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General; and Harry T. Chavis Jr, Special Agent in Charge of the Internal Revenue Service Criminal Investigations made the announcement today. Assistant U.S. Attorneys Sarah Hoefle and Lucy Sun of the Organized Crime & Gang Unit are prosecuting the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

BOSTON – A Hopkinton man pleaded guilty this week to defrauding the Internal Revenue Service (IRS) and Travelers Insurance Company in relation to wages he paid to employees of his two construction companies.

Dariusz Pietron, 51, pleaded guilty on May 15, 2024 to three counts of failure to collect and pay over employment taxes to the IRS and one count of mail fraud relating to underpaid workers’ compensation insurance premiums. U.S. District Judge Indira Talwani scheduled sentencing for Aug. 28, 2024.  

Between 2012 and October 2018, Pietron owned and operated TJM Construction, Inc. (TJM) and Point Construction, Inc. (Point). Pietron failed to report his employees’ wages to the IRS, failed to withhold required employment taxes and failed to pay employment taxes to the IRS. Pietron also failed to disclose to Travelers Insurance Company the actual wages he paid to employees, which resulted in him paying less in workers’ compensation insurance premiums than what he would have otherwise owed. As part of the scheme, Pietron recruited and paid two employees to establish three shell companies – companies that would make it appear as if TJM and Point’s employees were subcontractors to whom Pietron had no tax obligations. Pietron thereby failed to pay more than $1.1 million in employment taxes and defrauded Travelers of approximately $244,000.

The charge of failure to pay over taxes provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of mail fraud provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Pietron has also agreed to pay restitution to the IRS and Travelers Insurance and to forfeit $244,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.  

Acting United States Attorney Joshua S. Levy; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Katherine Mulligan, Chief of Investigations for the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant United States Attorney Victor A. Wild of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.  

BOSTON – A Michigan man has been indicted by a federal grand jury in Springfield, Mass. in connection with an alleged scheme to defraud a Northampton construction company of nearly $1 million. 

Jonathan McCormack, 39, of Lapeer, Mich., was indicted on 17 counts of wire fraud and 12 counts of engaging in monetary transactions in criminally derived property of a value greater than $10,000. He will appear in federal court in Springfield at a later date.

According to the indictment, McCormack was employed as a project supervisor for BluRoc, LLC., a construction company based in Northampton, Mass. McCormack also owned and operated JDM Site Services, LLC (JDM), a Michigan-based company that heavy rented equipment to BluRoc.  

It is alleged that between January 2019 through January 2021, McCormack devised a scheme to defraud BluRoc by various means, including submitting materially false JDM invoices for purported equipment usage and by diverting BluRoc labor, equipment and materials for his own personal use and benefit.

To further this scheme, McCormack allegedly entered fraudulent employee time and JDM equipment usage data in BluRoc’s tracking system that overstated both the number of hours the employees, including himself, were working on BluRoc projects as well as the number of hours JDM equipment was actually used. McCormack also allegedly emailed false JDM invoices to BluRoc personnel for inflated amounts that substantially overstated the number of hours the equipment was actually used. It is further alleged that McCormack deposited payments received for these false invoices into a JDM bank account and used the proceeds for his own personal use and benefit – including to purchase and renovate a luxury hunting lodge; make improvements to his personal residence; purchase recreational vehicles including snowmobiles; and repay a loan to his uncle. 

Lastly, McCormack allegedly directed BluRoc workers to conduct work at the luxury hunting lodge he purchased, including clearing an area between the lodge and an adjacent property owned by his uncle; laying timber mats that McCormack had stolen from a BluRoc worksite; and haying and seeding the area with material that he had also stolen from a BluRoc worksite. McCormack then allegedly electronically approved the workers’ time and equipment usage in BluRoc’s tracking system – so that BluRoc, rather than McCormack, paid for their work.

In addition to the charges, the indictment seeks forfeiture of $920,716, the hunting lodge and six Polaris recreational vehicles. 

The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of engaging in monetary transactions in criminally derived property of a value greater than $10,000 provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.  

Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Neil Desroches and Steven H. Breslow of the Springfield Branch Office are 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.

BOSTON – The former owner of a now-defunct luxury home building business in West Springfield pleaded guilty yesterday to conspiring to defraud the United States and creating false documents to help one of his clients obtain a mortgage.

Kent Pecoy, 66, of San Marco, Fla., previously of Wilbraham, pleaded guilty to two counts of conspiracy to defraud the United States and one count of making a false statement to a federally insured financial institution. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Aug. 20, 2024. 

Kent Pecoy was previously indicted in December 2019 along with his son, Jason Pecoy, and Kevin M. Kennedy, the former owner of a golf management company, for allegedly conspiring to defraud the United States by concealing cash payments for the construction of Kennedy’s two homes in East Longmeadow and West Dennis. The defendants were later charged in a superseding indictment in January 2020. On April 24, 2024, Kennedy was sentenced to 13 months in prison after being convicted by a federal jury for conspiracy to defraud the United States and making a false statement to a federally insured financial institution. Jason Pecoy had pleaded not guilty and is pending trial.

Kent Pecoy owned and operated Kent Pecoy & Sons, Construction Inc. (KPSC) – a West Springfield-based commercial and luxury home construction company – as well as Sturbridge Development, LLC (Sturbridge) and Legacy General Contractors, LLC (Legacy). KPSCI constructed two homes for Kennedy in East Longmeadow and West Dennis – for which Kennedy paid Kent Pecoy in cash. 

From 2009 through 2016, Pecoy conspired with others to conceal income from the IRS by dealing in cash. Specifically, Pecoy received $1,116,900 in cash payments from Kennedy for the purchase and construction of custom-built homes in East Longmeadow and on Cape Cod. Kent Pecoy failed to deposit most of the cash into business bank accounts, and instead distributed the cash directly to vendors and subcontractors. For the payments Kent Pecoy did deposit, he deposited the cash in amounts less than $10,000 to avoid the filing of currency transaction reports.

 Kent Pecoy also created and maintained separate ledgers documenting Kennedy’s cash payments, created and maintained false contracts and cover sheets and created false entries in KPSC’s accounting system to conceal the cash payments. 

Additionally, in January 2010, Kent Pecoy and Kennedy made false statements to Charles Schwab Bank on a loan to Kennedy and his wife for the construction of a residence in East Longmeadow in an attempt to conceal $160,000 cash down payment. These false statements included understating the sale price of the residence lot, the price of the construction and the deposit and earnest money paid by Kennedy.

The charge of making a false statement to a federally insured financial institution provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors. The conspiracy charges provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorneys Steven H. Breslow and Neil L. Desroches of the Springfield Branch Office are prosecuting the case along with Trial Attorney Eric B. Powers of the Justice Department’s Tax Division.

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.

BOSTON – A Brockton man was arrested today on charges that he bribed a road test examiner to issue driver’s licenses to individuals who did not pass or even take road tests at the Registry of Motor Vehicles (RMV) in Brockton.

Carlos Cardoso, 70, was indicted by a federal grand jury sitting in Boston on five counts of honest services mail fraud and one count of conspiracy to commit honest services mail fraud. He will appear in federal court in Boston at 2 p.m. this afternoon.

According to the indictment, Cardoso, the owner of a driving school, paid cash bribes totaling $20,000 - $30,000 to a road test examiner at the Brockton RMV service center to misrepresent to the RMV that certain driver’s license applicants had passed their road test when, in fact, they had not. It is alleged that some of the applicants did not even show up to take the test. As a result of the fraud, the RMV mailed driver’s licenses to unqualified applicants.

The charge of honest services mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to commit honest services mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.  

Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Christopher A. Scharf, Special Agent in Charge, U.S. Department of Transportation Office of Inspector General, Northeast Region made the announcement today. Assistant U.S. Attorneys Christine Wichers and Adam Deitch of the Public Corruption & Special Prosecutions Unit are 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.

BOSTON – A California man has been charged for allegedly conspiring to sell the illegal depressant Etizolam over the internet.

Paul Z. Lamberty, 52, of Folsom, Calif., was charged in a two-count information with one count of conspiracy to defraud the United States and one count of the introduction of misbranded drugs with the intent to defraud and mislead. He will appear in federal court in Boston at a later date. 

According to the charging documents, Lamberty operated websites encern.com and ohmod.com to sell the drug Etizolam to customers throughout the United States, including customers in Massachusetts. The Food and Drug Administration (FDA) has not approved Etizolam for use as a drug, and thus it cannot be sold or prescribed in the United States. Despite this, Lamberty allegedly purchased drugs from suppliers in China, imported those drugs into the United States and sold the drugs with false labelling stating that the products were sold “For Research Purposes Only,” and “Not for Human Consumption.” 

According to the charging documents, Etizolam is a drug known as a thienodiazepine – a class of drugs chemically related to benzodiazepines, which produce central nervous system depression. Physicians may prescribe FDA-approved benzodiazepines to treat insomnia and anxiety, but benzodiazepines and thienodiazepines also carry risks of dependency, toxicity and even fatal overdose, particularly when combined with other central nervous system depressants.

The charge of conspiracy to defraud the United States provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of introduction of misbranded drugs with the intent to defraud and mislead provides for a sentence up to three 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 that govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; Fernando P. McMillan, Special Agent in Charge of the New York Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division made the announcement today. Assistant U.S. Attorneys Jared C. Dolan and Lauren A. Graber of the Criminal Division are prosecuting the case.

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

BOSTON – A Brockton man pleaded guilty yesterday to his role in a large-scale drug trafficking conspiracy in and around the Quincy and Weymouth areas.

Neylton Fontes, 36, pleaded guilty to possession with intent to distribute controlled substances, including cocaine, fentanyl and fentanyl analogue; and conspiracy to distribute and possess with intent to distribute cocaine, fentanyl and fentanyl analogue. U.S. Senior District Court Judge William G. Young scheduled sentencing for Sept. 16, 2024. Fontes was indicted along with three others in October 2023.

Around January 2021, Fontes possessed with intent to distribute cocaine, fentanyl and fentanyl analogue and participated in a conspiracy to distribute cocaine, fentanyl and fentanyl analogue in Quincy and Weymouth. 

The charges of possession with intent to distribute cocaine, fentanyl, and fentanyl analogue and conspiracy to distribute and possession with intent to distribute each provide 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; Suffolk County Sheriff’s Department; Massachusetts State Police; and the Brockton, Quincy, Weymouth, Braintree, Boston, Bridgewater, East Bridgewater and Barnstable Police Departments. 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 defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Carlisle man has been arrested and charged for allegedly submitting fraudulent Paycheck Protection Program (PPP) loan applications on behalf of multiple companies he owns and controls.  

Durgaprasad Rao, 65, was charged with two counts of wire fraud. Rao was arrested yesterday and will make an initial appearance in federal court in Boston at 2 p.m. this afternoon. He remains in custody pending a detention hearing scheduled for May 17, 2024.

According to the charging documents, Rao is the owner and operator of Accelerated Engineering, LLC., a product engineering service provider, and Upstream Global Services, Inc., a software company that provides software consulting services and temporary staffing needs. 

It is alleged that, between April 2020 and May 2021, Rao submitted numerous fraudulent applications seeking over $18 million in PPP funds for various companies in multiple states including companies in Massachusetts, Wisconsin and Georgia. Nine of the fraudulent PPP loan applications Rao allegedly submitted were for companies he owned and controlled. For Rao’s Massachusetts-based companies, he received nearly $7 million in PPP loans – of which, $1.5 million was approved for forgiveness. 

Rao’s PPP loan applications allegedly contained false statements regarding payroll and the number of employees that worked for his companies and included fraudulent supporting documents, including false tax return documents and false payroll records. It is further alleged that Rao misused the funds he received by, among other things, transferring the funds to foreign businesses he owned and purchasing a luxury condominium in New York City.       

The charges of wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.  

Acting United States Attorney Joshua S. Levy; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division, Boston Field Office; Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Carlisle Police Chief Andrew Amendola made the announcement today. Assistant U.S. Attorneys Brian Sullivan and David Tobin of the Major Crimes Unit are prosecuting the case.  

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud. 
    
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.

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

BOSTON – An East Boston man pleaded guilty yesterday to possessing and distributing child sexual abuse material (CSAM).

Cristopher Vladimir Pineda Martinez, 25, pleaded guilty to one count of possession of child pornography and one count of distribution of child pornography. U.S. District Judge Richard G. Stearns scheduled sentencing for Aug. 14, 2024. Pineda was arrested and charged by criminal complaint in January 2023 and has remained in federal custody since. 

Law enforcement identified Pineda as member of several private large-scale group chats involved in the distribution of CSAM on an online chat platform. On Dec. 12, 2022, Pineda distributed eight videos depicting CSAM in three online chat groups. An additional 54 videos of CSAM, involving children as young as six years old, were found within an application on Pineda’s personal cell phone.

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. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, a mandatory minimum of 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. Valuable assistance was provided by the United States Postal Inspection Service and Immigration and Customs Enforcement, Enforcement and Removal Operations. Assistant U.S. Attorney Elianna J. Nuzum 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.

Cape Cod Hospital, based in Hyannis, Massachusetts, has agreed to pay $24.3 million to resolve False Claims Act allegations that it knowingly submitted claims to Medicare for transcatheter aortic valve replacement (TAVR) procedures that failed to comply with Medicare rules specifying the way in which hospitals were required to evaluate patient suitability for the procedures.

Beginning in 2015, Cape Cod Hospital began offering TAVR procedures for patients suffering from aortic stenosis, a serious heart condition that restricts blood flow from the heart to rest of the body. A TAVR procedure involves replacing a patient’s damaged heart valve with an artificial one. Medicare rules at the time required that, prior to performing a TAVR procedure, hospitals engage specified clinical personnel to conduct an independent examination of prospective patients to evaluate their suitability for TAVR, document the rationale for their clinical judgment and make the rationale available to the medical team performing the TAVR procedure. The settlement resolves allegations that from Nov. 1, 2015, through Dec. 31, 2022, Cape Cod Hospital knowingly submitted hundreds of claims to Medicare for TAVR procedures that did not comply with the applicable Medicare requirements. In some instances, not enough physicians examined a patient’s suitability for the procedure, while in other instances the physicians failed to document and share their clinical judgment with the medical team responsible for the TAVR procedure.  

“Hospitals that participate in the Medicare program must abide by applicable coverage and reimbursement rules,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold healthcare providers accountable when they knowingly fail to comply with Medicare reimbursement requirements.”

“Medicare permitted coverage for this newly developed cardiac procedure only under certain conditions to ensure patient safety. Cape Cod Hospital ignored those rules and received millions of dollars from Medicare to which it was not entitled. This conduct persisted for years despite internal warnings,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “This investigation and settlement ensures that patient safety is prioritized over a hospital’s bottom line.”

In connection with the settlement, Cape Cod Hospital has entered into a five-year corporate integrity agreement with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), which provides for an annual review of its paid Medicare claims by an Independent Review Organization.

“Health care providers are expected to follow Medicare rules and bill properly,” said Special Agent in Charge Roberto Coviello of HHS-OIG. “We are committed to pursuing allegations of False Claims Act violations as we work to protect the integrity of the taxpayer-funded Medicare program, and we encourage the public to come forward with information about such conduct.”

Cape Cod Hospital received credit under the department’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases. Among other actions, Cape Cod Hospital voluntarily produced materials, identified the relevant medical records, admitted that it failed to adhere to the applicable Medicare requirements and implemented appropriate remedial measures.

The claims resolved by the resolution announced today include claims that were brought under the qui tam or whistleblower provisions of the False Claims Act by Richard Zelman, a physician formerly employed by Cape Cod Hospital. Under the Act, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Zelman v. Cape Cod Hospital, No. 1:22-cv-11204 (D. Mass.). As part of today’s resolution, Dr. Zelman will receive approximately $4.36 million.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from HHS-OIG and the FBI.

The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. 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).

Trial Attorney Kimya Saied of the Fraud Section and Assistant U.S. Attorney Andrew A. Caffrey, III for the District of Massachusetts handled the matter.

Except for the facts admitted by Cape Cod Hospital, the claims in the complaint are allegations only, and there has been no determination of liability.

Settlement

BOSTON – Cape Cod Hospital has agreed to pay $24.3 million to resolve allegations that it knowingly submitted claims to Medicare for transcatheter aortic valve replacement (TAVR) procedures that failed to comply with Medicare rules specifying the way in which hospitals were required to evaluate patient suitability for the procedures. 

Beginning in 2015, Cape Cod Hospital began offering TAVR procedures for patients suffering from aortic stenosis, a serious heart condition that restricts blood flow from the heart to the rest of the body. A TAVR procedure involves replacing a patient’s damaged heart valve with an artificial one. Medicare rules at the time required that, prior to performing a TAVR procedure, hospitals engage specified clinical personnel to conduct an independent examination of prospective patients to evaluate their suitability for TAVR; document the rationale for their clinical judgment; and make the rationale available to the medical team performing the TAVR procedure. 

The settlement resolves allegations that from November 2015 through December 2022, Cape Cod Hospital knowingly submitted hundreds of claims to Medicare for TAVR procedures that did not comply with the applicable Medicare requirements. In some instances, not enough physicians examined a patient’s suitability for the procedure, while in other instances the physicians failed to document and share their clinical judgment with the medical team responsible for the TAVR procedure. 

“Medicare permitted coverage for this newly developed cardiac procedure only under certain conditions, to ensure patient safety. Cape Cod Hospital ignored those rules and received millions of dollars from Medicare to which it was not entitled. This conduct persisted for years despite internal warnings,” said Acting United States Attorney Joshua S. Levy for the District of Massachusetts. “This investigation and settlement ensure that patient safety is prioritized over a hospital’s bottom line.”

“Hospitals that participate in the Medicare program must abide by applicable coverage and reimbursement rules,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold healthcare providers accountable when they knowingly fail to comply with Medicare reimbursement requirements.”

“Health care providers are expected to follow Medicare rules and bill properly,” said Roberto Coviello, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General.  “We are committed to pursuing allegations of False Claims Act violations as we work to protect the integrity of the taxpayer-funded Medicare program, and we encourage the public to come forward with information about such conduct.”

In connection with the settlement, Cape Cod Hospital has entered into a five-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), which provides for an annual review of its paid Medicare claims by an Independent Review Organization.

Cape Cod Hospital received credit under the Department’s guidelines for taking disclosure, cooperation, and remediation into account in False Claims Act cases. Among other actions, Cape Cod Hospital voluntarily produced materials, identified the relevant medical records, admitted that it failed to adhere to the applicable Medicare requirements and implemented appropriate remedial measures. 

The claims resolved by the resolution announced today include claims that were brought under the qui tam or whistleblower provisions of the False Claims Act. Under the Act, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of today’s resolution, the whistleblower will receive approximately $4.36 million.

The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. 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).

Acting U.S. Attorney Levy; Principal Deputy AAG Boynton; and HHS-OIG SAC Coviello made the announcement today. Assistant U.S. Attorney Andrew A. Caffrey, III of the Affirmative Civil Enforcement Unit handled the matter along with Trial Attorney Kimya Saied of the Department of Justice’s Fraud Section.