District of Massachusetts

BOSTON – The former owner of several physical therapy clinics in Greater Boston has been convicted by a federal jury of health care fraud charges.

Chang Goo Yoon, 61, a South Korean national residing in Queens, N.Y., was convicted yesterday following a seven-day jury trial on two counts of health care fraud. U.S. District Court Judge Indira Talwani scheduled sentencing for May 8, 2024. Yoon was arrested and charged by criminal complaint in February 2021 and subsequently indicted by a federal grand jury in May 2021. 

“This was about stealing and greed, pure and simple. Mr. Yoon exploited our healthcare system, and billed for fictitious treatments on dates that he was traveling abroad or holed up in a casino,” said Acting United States Attorney Joshua S. Levy. “This conduct was as brazen as it was illegal. Health care fraud is not a victimless crime. We all pay higher costs because of these types of fraudulent scams. Our office will continue to relentlessly pursue fraudsters and hold them accountable.”

“Chang Goo Yoon orchestrated a brazen scheme, abusing his position of trust as a health care provider to collect hundreds of thousands of dollars in payments for work he did not do. We thank the jury for its swift and prudent verdict,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This conviction sends an unambiguous message that anyone who cheats our health care system will not get away with it.”

“This is exactly why the Insurance Fraud Bureau of Massachusetts was created over thirty years ago to combat insurance fraud and specifically this type of insurance fraud that increase the cost of insurance premiums for consumers in the state of Massachusetts. This case was borne out of a collaborative effort by our investigative partners. The perseverance and hard work done by all involved in this case is a demonstration that insurance fraud will not be tolerated in Massachusetts,” said Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts.

“Mr. Yoon repeatedly lied and billed for services he never provided.  Actions which were fueled by nothing more than his greed,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service. “We are pleased with the jury’s guilty verdict in this matter and thank them for their service.  It is our hope that this case serves as a warning to others who may use the U.S. Mail to further their criminal activities.”

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.

The charge of health care fraud provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

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

BOSTON – A New York was sentenced yesterday in federal court in Boston to trafficking drugs and firearms.

Jason Lebberes, 31, of Tuckahoe, N.Y., was sentenced by U.S. District Court Judge Patti B. Saris to 121 months in prison and five years of supervised release. In October 2023, Lebberes pleaded guilty to one count of distributing more than 50 grams of methamphetamine; one count of transferring a firearm to an out-of-state resident; and one count of transferring a machinegun.  

“This defendant’s possession or sale of multiple machineguns including Glock switches and other machinegun conversion devices put deadly automatic weapons onto our streets, endangering countless people across Massachusetts. This stiff sentence sends the unmistakable message that if you traffic in deadly illegal firearms, you will be tracked down and held accountable,” said Acting United States Attorney Joshua S. Levy.

“Drugs and guns are a deadly combination,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office. “As methamphetamine seizures rise, DEA stands committed to keeping this highly addictive drug off the streets. Let this sentencing serve as warning to those who distribute poisons like methamphetamine, that DEA will aggressively pursue and hold you accountable.  This investigation demonstrates the strength of collaborative law enforcement efforts in Massachusetts and our strong partnership with the U.S. Attorney’s Office.”

“Jason Lebberes’ sentence of 121 months should serve as a warning to those who intend to misuse the U.S. Mail for their criminal activity,” said Inspector in Charge Ketty Larco-Ward, Boston Division of the U.S. Postal Inspection Service. The U.S. Postal Inspection Service and our law enforcement partners are committed to protecting the communities we serve from those who would jeopardize the public by trafficking in guns and drugs which only serve to fuel the violence on our streets.

“The outcome of this investigation and significant sentence is a testament to the successful collaboration between our federal and local law enforcement agencies,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division. “The assembly of a ghost gun and “Glock Switch” into fully functioning, automatic weapon posed a serious threat to our communities. ATF has a firm stance and wants to make it clear that we will not tolerate firearms and narcotics trafficking which is fueling violent crime.”

Lebberes sold more than 50 grams of methamphetamine, a privately manufactured firearm, commonly known as a “ghost gun” and a Glock switch. A Glock switch is a device that converts firearms into automatic weapons. The investigation revealed that Lebberes had sold numerous Glock switches to other customers in the past. 

During a search of Lebberes’ residence, numerous handguns, assault rifles and ammunition were recovered, several of which were privately manufactured. A video of Lebberes discharging a handgun out of his car window was also recovered during the investigation.  

Acting U.S. Attorney Levy, DEA SAC Boyle, USPIS INC Larco-Ward and ATF SAC Ferguson made the announcement today. Valuable assistance was provided by the New York State Police. Assistant U.S. Attorney Evan Panich of the Narcotics & Money Laundering Unit prosecuted the case.

BOSTON – A Milton man was sentenced yesterday for drug trafficking charges.  

Brandy Soto-Lara, 26, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to five years in prison and four years of supervised release. In October 2023, Lara pleaded guilty to one count of possession with intent to distribute cocaine and 40 grams or more of fentanyl.

During a search of Soto-Lara’s apartment in November 2018, over 400 grams of cocaine and over 40 grams of fentanyl was seized. Additionally, $6,000, a loaded firearm with an obliterated serial number, firearm parts and ammunition were also recovered from Soto-Lara’s apartment.  

Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Suffolk County District Attorney’s Office. Assistant U.S. Attorneys Philip C. Cheng and Lucy Sun 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.

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.

BOSTON – A Lynn man was sentenced today in connection with a scheme to impersonate bank customers and fraudulently withdraw money from their bank accounts.

Antonio Niati, 33, was sentenced today by U.S. District Court Judge Leo T. Sorokin to time served (one day) and three years of supervised release. Niati was also ordered to pay restitution of approximately $360,000. In May 2019, Niati pleaded guilty to one count of conspiracy to commit bank fraud and one count of aiding and abetting aggravated identity theft. 

In 2017, Niati recruited a bank teller working at a Santander Bank branch in Dorchester to assist in conducting fraudulent transactions in victims’ bank accounts. On three occasions in April 2017, another co-conspirator conducted transactions in two Santander Bank customers’ accounts using fraudulent driver’s licenses, all with the assistance of Niati, and the recruited teller. Niati and his co-conspirators fraudulently withdrew over $640,000 from the customers’ accounts. 

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Leslie Wright, Christopher J. Markham and Neil J. Gallagher of the Criminal Division prosecuted the case.

BOSTON – A previously convicted felon was sentenced today in federal court in Boston for cocaine distribution and firearm offenses.

Shawn Craig, 38, of Newton, was sentenced by U.S. District Court Judge Patti B. Saris to 99 months in prison and three years of supervised release. In September 2023, Craig pleaded guilty to three counts of possession with intent to distribute and distribution of cocaine and one count of possession of a firearm and ammunition as a convicted felon. Craig was charged in January 2022. 

Craig coordinated three drug transactions with an undercover agent between September and October 2022. Craig met with the undercover agent near his Newton residence on three separate occasions – Sept. 12, Oct. 20 and Oct. 26, 2022 – to conduct the deals, during which Craig provided cocaine in exchange for cash. Prior to the third meeting, on Oct. 26, 2022, Craig sent an image of a firearm to the undercover agent and indicated that he could sell it to the agent. During the subsequent meeting, Craig provided the undercover agent with a firearm, ammunition and a quantity of cocaine.

At the time of the conduct, Craig was on federal supervised release for a 2014 federal conviction for possessing a stolen firearm and possessing a firearm with an obliterated serial number. Craig was sentenced to seven years in prison and three years of supervised release in that case. 

Acting United States Attorney Joshua S. Levy; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; Middlesex District Attorney Marian Ryan; and Newton Police Chief John F. Carmichael Jr. made the announcement today. Valuable assistance was provided by the U.S. Probation Office. Assistant U.S. Attorney Kaitlin R. O’Donnell of the Organized Crime & Gang Unit prosecuted the case.

BOSTON – A California man was sentenced today in federal court in Boston for embezzling over $1.2 million from his employer over a 16-year period.

Darrell Pike, 57, of Hesperia, Calif., was sentenced by U.S. District Court Judge Judge Myong J. Joun to three months in prison to be followed by three years of supervised release, with the first nine months to be served in home confinement. Pike was also ordered to pay restitution and forfeiture of $1,232,001. In October 2022, Pike pleaded guilty to one count of mail fraud. 

Pike was the general manager of an Ontario, Calif. subsidiary of a supply and service company based in Wilmington, Mass. Between approximately 2005 and 2021, Pike prepared and submitted fraudulent invoices to his employer on behalf of a fake temporary staffing company, Consumer Information Systems (CIS), for staffing services CIS purportedly provided at his employer’s Ontario location. Pike added approving initials of company personnel to the invoices without their knowledge or consent. Through the fraudulent invoices, Pike caused the company to pay approximately $1,271,206 to CIS, which he deposited into a bank account he controlled. 

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 Kriss Basil of the Securities, Financial & Cyber Fraud Unit prosecuted the case.

BOSTON – A Brockton man pleaded guilty yesterday in federal court in Boston to coercing three minors to produce child sexual abuse material (CSAM).

Zaire Aquil Lodge, 46, pleaded guilty to three counts of sexual exploitation of children and one count of receipt of child pornography. U.S. District Court Judge Richard G. Stearns scheduled sentencing for April 34, 2024.  Lodge was indicted by a federal grand jury in January 2023.

According to the indictment, on various dates in 2021, Lodge employed, used, persuaded, induced and coerced three minors to engage in sexually explicit conduct for the purpose of producing CSAM. It is also alleged that Lodge knowingly received and attempted to receive CSAM between February and October 2021. 

The charges of sexual exploitation of children provide for a sentence of at least 15 years and up to 30 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 receipt of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. 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.

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 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.

BOSTON – An American Airlines flight attendant has been arrested for allegedly surreptitiously recording or attempting to record a minor female passenger using a lavatory aboard an aircraft he was working in September 2023. The defendant is also alleged to have possessed recordings of four additional minor female passengers using lavatories aboard the aircraft he had worked previously.

Estes Carter Thompson III, 36, of Charlotte, N.C., was charged with one count of attempted sexual exploitation of children and one count of possession of child pornography depicting a prepubescent minor. Thompson was arrested today in Lynchburg, Va. and will remain in custody pending his initial appearance in the Western District of Virginia. He will appear in federal court in Boston at a later date. 

“The deeply disturbing conduct alleged here is something no parent or child should ever have to worry about when they travel. Mr. Thompson allegedly used his position to prey on and surreptitiously record innocent children, including unaccompanied minors, while in a vulnerable state aboard flights he was working,” said Acting United States Attorney Joshua S. Levy. “Everyone – especially children – should feel safe and secure as airline passengers, and parents should feel comfortable traveling with their children. Protecting children is a paramount priority for this office and we will aggressively investigate and hold accountable people who victimize children.”

“Today, the FBI arrested Estes Carter Thompson III after he repeatedly targeted unsuspecting children to sexually exploit them for his own gratification. What Mr. Thompson is accused of doing is disgraceful, and we believe, calculated, given that this alleged conduct occurred on at least five flights,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This case should make it crystal clear that the FBI takes crimes aboard aircraft and the sexual exploitation of children seriously. If you’ve been the victim of a crime aboard an aircraft or have witnessed one take place, we ask you to report it to both your flight crew and the FBI.”

According to the charging documents, on Sept. 2, 2023, while working as a flight attendant onboard an American Airlines flight from Charlotte, N.C. to Boston, Mass., Thompson video-recorded or attempted to surreptitiously video-record a 14-year-old female passenger as she used the aircraft lavatory. Specifically, approximately midway through the flight, the minor victim got up to use the main cabin lavatory nearest to where she was seated. When the minor victim arrived at the lavatory it was occupied. After the minor victim had been waiting a short time, Thompson allegedly approached her, told her that the first-class lavatory was unoccupied and escorted her toward first class. Before the minor victim entered the lavatory, Thompson allegedly told her that he needed to wash his hands and that the lavatory’s toilet seat was broken and briefly entered the lavatory. It is alleged that, after Thompson exited the lavatory, the minor victim entered and observed red stickers on the underside of the toilet seat lid, which was in the open position, that stated, “INOPERATIVE CATERING EQUIPMENT” and “REMOVE FROM SERVICE,” and “SEAT BROKEN” was hand-written in black ink on one of the stickers. It is alleged that, beneath the red stickers, Thompson had concealed his iPhone to record a video. The minor victim used her phone to take a picture of the red stickers and the concealed iPhone she found in the lavatory before exiting, at which time Thompson allegedly re-entered it immediately.

According to court documents, when the minor victim returned to her seat, she informed her parents of what she saw and showed them the picture. The victim’s parents reported the matter to other flight attendants onboard who notified the Captain, who in turn notified law enforcement on the ground. It is alleged that the victim’s father confronted Thompson who, shortly thereafter, locked himself in the lavatory with his iPhone for three to five minutes prior to the flight’s descent. 

Upon the flight’s arrival at Boston’s Logan Airport, law enforcement observed that Thompson’s iPhone may have been restored to factory settings. It is alleged that a subsequent search of Thompson’s suitcase was found to contain 11 “INOPERATIVE CATERING EQUIPMENT” stickers, like those observed by the minor victim on the back of the toilet seat. A search of Thompson’s iCloud account allegedly revealed four additional instances between January and August 2023 in which Thompson recorded a minor using the lavatory on an aircraft. The minor victims allegedly depicted in the surreptitious recordings were seven, nine, 11 and 14 years old at the time. Additionally, over 50 images of a nine-year-old unaccompanied minor were allegedly found in Thompson’s iCloud. The images included photos taken while the minor victim was seated in her seat pre-flight and close-ups of her face while sleeping. 

All minor victims involved in this matter have been identified and their families contacted by law enforcement. 

It is further alleged that hundreds of images of AI-generated child pornography were also found stored on Thompson’s iCloud account. 

The charge of attempted sexual exploitation of children provides for a sentence of at least 15 years and up to 30 years in prison. The charge of possession of child pornography depicting a prepubescent minor provides for a sentence of at least five years and up to 20 years in prison.  Both charges also provide for at least five years and up to a lifetime of supervised release, a fine of up to $250,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting U.S. Attorney Levy, FBI SAC Cohen and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. 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.

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 – The former owner and operator of APC, a transportation and delivery company based in Chelsea, was sentenced yesterday for his involvement in a mail fraud scheme.
 
Anthony Catalano, 52, formerly of Boxford, now living in Winthrop, was sentenced by Chief United States District Court Judge F. Dennis Saylor IV to six months in prison, followed by three years of supervised release and restitution in the amount of $541,000 to The Travelers Insurance Company (Travelers). Catalano was also ordered to cooperate with the Internal Revenue Service regarding personal and corporate taxes due and owing. Catalano pleaded guilty in October 2023 to two counts of failing to collect, report and pay over employment taxes and one count of mail fraud in connection with cash wages he paid to company employees.

From 2017 to 2020, Catalano cashed more than $8 million in APC checks from customers and failed to report the company income to the IRS. Catalano pleaded guilty to using the bulk of the cash funds to pay employees “under-the-table” cash wages which APC was also required to report to the IRS. As a result, neither the company nor the employees paid employment or income taxes on the cash wages, resulting in a tax loss of more than $1 million to the IRS. Catalano also pleaded guilty to mail fraud for failing to disclose the cash wages to Travelers when it provided workers’ compensation coverage for APC employees. As a result, Catalano defrauded the insurance carrier out of more than $500,000 in insurance premiums. 

Acting United States Attorney Joshua S. Levy and Harry Chavis, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Boston made the announcement today. Assistance was provided by the Massachusetts Insurance Fraud Bureau. Assistant U.S. Attorney Victor A. Wild of the Securities, Financial & Cyber Fraud Unit prosecuted the case.

BOSTON – A Nigerian citizen, previously deported from the United States, has been indicted by a federal grand jury with conspiring to make a false statement in an application for a United States passport.  

Chukwunonso “Nonso” Obiora, 36, formerly of Randolph, was indicted on one count of conspiracy. Obiora was previously charged by complaint and detained in October 2023. He will appear in federal court in Boston at a later date.

According to the indictment, Obiora and one of his brothers allegedly agreed to submit a fraudulent application for a United States passport. Specifically, it is alleged that in May 2023, the brother falsely reported that he had lost his passport and completed an application for a new passport at a United States Postal Service facility in Watertown. The application allegedly bore the brother’s name and Obiora’s photograph. It is alleged that, in or about August 2023, the brother mailed the passport to Obiora in Nigeria. 

The charge of conspiracy to obtain a United States passport through false statements carries 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 Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief 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 – Two men have been arrested for allegedly conspiring to traffic dozens of illegal firearms from South Carolina to Boston. 

Aizavier Roache, 30, of Boston and Trevon Brunson, 31, of Columbia, S.C., were charged with one count of firearms trafficking and conspiracy to do so. Roache was arrested in Boston on Jan. 5, 2024 and was ordered detained following a hearing on Jan. 12, 2024. Brunson was arrested in Columbia, S.C. on Jan. 9, 2024 and appeared in federal court in the District of South Carolina on Jan. 10, 2024. He will appear in federal court in Boston at a later date. 

“Over the course of several years, these defendants allegedly trafficked dozens of illegal firearms many of which ended up on the streets of our communities – 11 of those guns, it is alleged, were involved in criminal activity and have since been recovered,” said Acting United States Attorney Joshua S. Levy. “The unchecked flow of weapons amplifies violence, empowers criminals and puts innocent lives at risk. Our office is committed to working with ATF, FBI and local partners like the Boston Police to aggressively investigate the origin of every gun used in crime and hold accountable the people who import illegal guns into Massachusetts.”

“This alleged illegal activity will not be tolerated, and ATF will continue to aggressively target firearms traffickers” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division. “ATF and our law enforcement partners will continue to work nonstop to prevent guns from being trafficked into our communities and protect citizens from gun violence.”

According to the charging documents, this case arose after a firearm recovered from a shooting in Boston was identified as having been purchased in South Carolina 15 days prior. It is alleged that over a three-year period, Brunson and Roache conspired to traffic dozens of illegal firearms from South Carolina to Massachusetts. Specifically, it is alleged that Roache would text Brunson photos of the firearms he wanted. The two would then meet and Roache would provide Brunson with the cash to purchase the firearms. After purchasing the firearms in South Carolina, Brunson would allegedly meet Roache at different locations in Columbia, S.C. to transfer the firearms. It is alleged that Roache traveled between Massachusetts and South Carolina numerous times to obtain the firearms. 

According to the charging documents, numerous text messages as well as bank, travel and firearm records detailed the alleged conspiracy. Intercepted communications allegedly uncovered an instance were Brunson used Roache’s credit card to complete a multi-gun purchase because he didn’t have enough cash on hand, with Roache texting Brunson the pin number for the card during the transaction. It is further alleged that a video recovered from Roache’s phone depicts him on a bus showing off a carry-on bag that contained four firearms. The date of the video allegedly corresponds with Roache’s trip back to Massachusetts after a multi-gun purchase in April of 2023.  

In total, it is alleged that the defendants trafficked more than 24 illegal firearms into Massachusetts from South Carolina. It is further alleged that 11 of the trafficked firearms were recovered here in Massachusetts after being used in a crime. 

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

Acting U.S. Attorney Levy, ATF SAC Ferguson and Boston Police Commissioner Michael Cox 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 defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – Six individuals, including three from Massachusetts, have been charged in connection with their alleged involvement in a multi-state scheme to obtain millions of dollars in Paycheck Protection Program (PPP) funds for themselves, and others, through the submission of dozens of fraudulent applications to PPP lenders.

The following individuals have been charged by an Information with, and have agreed to plead guilty to, conspiracy to commit wire fraud and conspiracy to commit unlawful monetary transactions:

• Wallace Ford, 38, of Buford, Ga.;
• Adiana Pierre, 39, of Lookout Mountain, Tenn.;
• Gardy Alexandre, 51, of West Palm Beach, Fla.;
• Richardson Rhau, 49, of Brockton, Mass.; and
• Wens Herby Mathurin, 26, of Brockton, Mass.

Plea hearings have not yet been scheduled by the court. 

Bill Dessaps, 46, of South Easton, Mass., has been indicted separately on one count of conspiracy to commit wire fraud, one count of money laundering and one count of bank fraud.

According to the charging documents, Ford, Pierre and Alexandre conspired to submit fraudulent PPP applications on behalf of numerous actual or purported businesses and non-profit organizations – including businesses operated by Mathurin and Dessaps – and to collect kickback payments from the borrowers for securing loan amounts.

It is alleged that, shortly after PPP funds first became available in April 2020, Ford began submitting PPP applications on behalf of his own businesses, Pierre, Alexandre and other borrowers. Pierre, Alexandre, and others allegedly identified potential applicants and provided those applicants’ information to Ford. Ford then submitted applications for those borrowers online, fabricating how many employees worked for the businesses and those business’ monthly payroll expenses, facts that determined the size of a loan that a business could receive. Ford also allegedly submitted false wage and tax forms in support of the misrepresentations on the applications. As a result, between May and August 2020, Ford, Pierre, Alexandre and others obtained approximately $7 million in PPP funds to which they were not entitled.

It is further alleged that the borrowers who received PPP funds based on these fraudulent applications paid kickbacks to Ford, Pierre, Alexandre and others, commonly in amounts equal to 10 or 20 percent of the loan amount they received. Collectively, Ford, Pierre and Alexandre allegedly received over $1 million in kickback payments from borrowers.

The charging documents allege that, in June 2020, Rhau connected Alexandre with both Dessaps – the operator of an Abington-based used car dealership, who was then living in Bridgewater – and Mathurin – the purported operator of a warehouse and cargo delivery business living in Brockton. It is alleged that Alexandre then forwarded information about Dessaps’ and Mathurin’s businesses to Ford, who submitted fraudulent PPP applications to a lender on their behalf. Specifically, the application for Dessaps’ dealership falsely stated that the dealership had 40 employees and average monthly payroll expenses of $334,720. The application for Mathurin’s business falsely stated that the business had 25 employees and average monthly payroll expenses of $125,541. As a result of the applications, it is alleged that the lender disbursed a PPP loan of $836,800 to Dessaps and a PPP loan of $313,852 to Mathurin.  

After receiving these funds, both Dessaps and Mathurin allegedly made kickback payments to Alexandre. Mathurin also allegedly sent additional payments totaling $45,000 to Rhau. 

The charging documents also allege that Rhau fraudulently obtained $104,166 in PPP funds and $94,800 in other pandemic relief funds as a result of applications containing misrepresentations that he submitted to lenders between April 2020 and April 2021, and that Dessaps attempted to obtain a “Second Draw” PPP loan through another fraudulent application in March 2021.

The charges of conspiracy to commit wire fraud and wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. The charges of conspiracy to commit unlawful monetary transactions 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 value of the criminally derived property.  The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the amount of money involved in the laundering transaction.  The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release, and a fine of $1,000,000, or twice the gross gain or loss from the scheme, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit and Assistant U.S. Attorney Alexandra W. Amrhein of the Asset Recovery 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, 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.

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 former nurse has pleaded guilty to tampering with liquid oxycodone syringes at a local rehabilitation center.

Jaclyn McQueen, 44, of Dedham, pleaded guilty on Jan. 5, 2024 in federal court in Boston to one count of tampering with a consumer product. U.S. District Court Judge Julia E. Kobick scheduled sentencing for April 4, 2024. McQueen was charged by Information on Dec. 7, 2023.

McQueen was employed as a registered nurse at a rehabilitation center in Dedham that provided long-term chronic and post-acute care to patients. In her capacity as a nurse, McQueen had access to oxycodone, a Schedule II narcotic, prescribed to patients at the rehabilitation center. From approximately February through May 2020, she removed liquid oxycodone from syringes intended for use by patients, consumed the oxycodone herself and refilled the syringes with saline to avoid detection. McQueen returned the diluted syringes to the medication carts where they could have been administered to patients.  

The charge of tampering with a consumer product provides 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; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; and Robert H. Goldstein, MD, PhD, Commissioner of the Massachusetts Department of Public Health made the announcement. Assistant U.S. Attorney Kelly Begg Lawrence, Chief of the Health Care Fraud Unit, is prosecuting the case.

BOSTON – A former New Bedford man pleaded guilty today to wire fraud and money laundering charges involving funds obtained from “romance scam” victims.  

Chukwunonso “Douglas” Umegbo, a/k/a James Abbott, a/k/a Michael Philips, a/k/a Richard Armani, 38, pleaded guilty to six counts of making a false statement to a bank, two counts of wire fraud and one count of money laundering. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for April 4, 2024. Umegbo was arrested in London in April 2022 and extradited to the United States in February 2023. He has remained in federal custody since. Umegbo was indicted by a federal grand jury in February 2021.

Between no later than 2018 through at least 2019, Umegbo opened bank accounts in the greater Boston area using fake identity documents. The bank accounts were used to receive fraudulently obtained funds from a number of victims of romance scams, in which perpetrators create fictitious online personas to develop online romantic relationships with individuals in the U.S., and then leverage those relationships to obtain money and/or property. Once the fraudulently obtained funds reached the accounts controlled by Umegbo, Umegbo withdrew the money in cash, used the funds to purchase cashier’s checks, or spent the money on personal purchases. Altogether, the fraudulent accounts received more than $560,000.

The charge of making a false statement to a bank provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000, or twice the value of the criminally derived property. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. The Justice Department’s Office of International Affairs provided valuable assistance in securing the arrest and extradition from the U.K. of Umegbo. Assistant U.S. Attorneys Kristen A. Kearney and Leslie A. Wright of the Securities, Financial & Cyber Fraud Unit are prosecuting the case.

BOSTON – A Springfield man was sentenced yesterday for sex trafficking a minor under 14 years old.

Carlos Casillas, 51, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 220 months in prison to be followed by five years of supervised release. In July of 2023, Casillas was convicted by a federal jury of one count of sex trafficking of a minor.

“Let the message go out loud and clear — if you prey on vulnerable girls and traffic minors you will spend a long, long time behind bars. Casillas used this victim’s vulnerability and challenging circumstances to take advantage of her,” said Acting United States Attorney Joshua S. Levy. “Preying on vulnerable young children will never be tolerated.”

“Casillas preyed upon a child who was vulnerable and disenfranchised. Like many traffickers, he took advantage of her situation and used the power he had over her to ensnare and exploit her. Today’s significant sentence takes him off the street and away from those he could harm,” said Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England.

In September 2021, an investigation began into Casillas for sex trafficking activity involving a 13-year-old girl living in a group home in the custody of the Massachusetts Department of Children and Families. Evidence presented at trial established that Casillas solicited the minor victim using Facebook messenger, picked the minor victim up from her group home and eventually took her to a local motel under the guise of taking her to Boston. He initiated conversations about leaving the group home and exchanging money for services.  Casillas knowingly used his age difference and superior resources to entice the victim.

Acting U.S. Attorney Levy; HSI SAC Krol; Hampden County District Attorney Anthony D. Gulluni; Hampden County Sheriff Nicholas Cocchi; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorneys Catherine G. Curley and Deepika Bains Shukla of the Springfield Branch Office 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 – An Ohio man pleaded guilty today in federal court in Boston to possessing child sexual abuse material (CSAM).

Thiago da Silva Pinheiro, 42, of Cincinnati, Ohio, pleaded guilty to one count of possession of child pornography. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for April 30, 2024. Pinheiro was initially arrested and charged by criminal complaint in September 2022 and subsequently indicted by a federal grand jury in October 2022.

On Sept. 20, 2022, Pinheiro flew from Ontario, Canada to Boston with an ultimate destination of Brazil. During screening at Logan Airport, customs officers observed apparent CSAM on Pinheiro’s tablet. On Pinheiro’s tablet, there were approximately 100 images and 2000 video files depicting child pornography, with children as young as 2 years old and including the depiction of penetration, bondage, and posing of children.  On Pinheiro’s phone, there were approximately 35 images and 10 videos depicting child pornography including children from 8 to 16 years old.  

The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was provided by Customs and Border Protection. Assistant U.S. Attorneys Meghan C. Cleary and Jessica L. Soto of the Office’s Major Crimes Unit are 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.

BOSTON – The owner of International Guatemala Musical and Fashion Accessories in New Bedford was sentenced yesterday for producing and selling fraudulent government identification documents.  

Tomas Xirum, 48, was sentenced by U.S. District Judge Patti B. Saris to 18 months in federal prison. In August 2023, he pleaded guilty to three counts of unlawful transfer of document or authentication feature and three counts of unlawful production of document or authentication feature. 

On three separate occasions – May 10, 2021, June 23, 2021 and Aug. 11, 2022 – Xirum sold fraudulent Permanent Resident Cards (commonly referred to as “green cards”) and Social Security cards to undercover agents from his store. 

After pleading guilty, Xirum continued to produce and sell fraudulent government identifications, thus revoking his pretrial release.  

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

BOSTON – A Lawrence man was sentenced today for his role in a scheme to use the stolen identities of United States citizens from Puerto Rico to fraudulently purchase vehicles and other merchandise and apply for and utilize bank accounts and credit cards. 

Joshua Cruz, 35, was sentenced by U.S. District Court Judge Patti B. Saris to two years in prison and three years of supervised release. Cruz was also ordered to pay $75,346 in restitution to the victims. In September 2023, Cruz pleaded guilty to conspiracy to commit wire fraud, wire fraud and false representation of a Social Security number. Cruz and multiple co-defendants were charged by criminal complaint in September 2020 and subsequently indicted by a federal grand jury in October 2020.  Cruz previously served two years in state custody for related conduct.

Between December 2018 and January 2019, the defendant visited Massachusetts car dealerships to purchase late-model vehicles and applied for 100% financing. In support of the applications, the defendant provided stolen biographical information of real United States citizens, fraudulent Puerto Rico driver’s licenses, and Social Security cards in those identities as proof of identification. Cruz was charged with using stolen identities to obtain car loans and purchase three cars worth over $170,000, collectively.

Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations, in New England; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Brockton Police Chief Brenda Perez made the announcement today. Valuable assistance was provided by the Lowell, Lawrence, Methuen, Haverhill, Woburn and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna J. Nuzum and Adam W. Deitch of the Criminal Division prosecuted the case.

The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.

BOSTON – A Fall River man was indicted yesterday by a federal grand jury in Boston for misuse of a Social Security number.

Arias Mejia, 43, was indicted for misuse of a Social Security number, aggravated identity theft, and making a false statement in an application for a United States passport.   

Arias Mejia was previously charged by criminal complaint on Dec. 8, 2023 and has remained in federal custody since his arrest. Arias Mejia will appear in federal court in Boston at a later date.

According to court documents, Arias Mejia, a citizen of the Dominican Republic, applied for a United States passport and a Massachusetts Registry of Motor Vehicles Real ID using the name and other biographical information of a resident of Puerto Rico. Arias Mejia allegedly used the stolen identity when he was previously arrested, charged and convicted on a number state court cases.

The charge of misuse of a Social Security number provides for a sentence of up to five years of in prison, three years of supervised release and a fine of $250,000. The charge of making a false statement in an application for a United States passport provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of 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 upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.

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. Valuable assistance in the investigation was provided by Homeland Security Investigations in Santo Domingo; Puerto Rico Department of Public Safety; U.S. Department of State’s Diplomatic Security Service; Social Security Administration, Office of Inspector General; U.S. Department of Health & Human Services, Office of Inspector General; U.S. Postal Inspection Service; and Massachusetts State Police. Assistant U.S. Attorney David G. Tobin 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 – eBay Inc., the global ecommerce company, has agreed to pay a $3 million criminal penalty for an August 2019 harassment and intimidation campaign targeting a Massachusetts couple in retaliation for their online coverage of eBay, and for its obstruction of the investigation that followed.   

eBay was charged criminally with two counts of stalking through interstate travel, two counts of stalking through electronic communications services, one count of witness tampering and one count of obstruction of justice and has entered into a deferred prosecution agreement. Pursuant to the agreement, eBay admitted to a detailed recitation of all the relevant facts about its conduct and agreed to pay a criminal penalty of $3 million, which is the statutory maximum fine for these six felony offenses. As part of this resolution, eBay will also be required to retain an independent corporate compliance monitor for a period of three years and to make extensive enhancements to its compliance program.  

“eBay engaged in absolutely horrific, criminal conduct. The company’s employees and contractors involved in this campaign put the victims through pure hell, in a petrifying campaign aimed at silencing their reporting and protecting the eBay brand,” said Acting United States Attorney Joshua S. Levy. “We left no stone unturned in our mission to hold accountable every individual who turned the victims’ world upside-down through a never-ending nightmare of menacing and criminal acts. The investigation led to felony convictions for seven individuals, all former eBay employees or contractors, and the ringleader was sentenced to 57 months in federal prison.”

Levy continued, “Today’s criminal resolution with the company imposes the maximum fine that the law allows under the statutes, holding eBay accountable for a corporate culture that led to this unprecedented stalking campaign. The corporate monitoring of eBay will be in place for the next three years and will ensure that eBay’s senior leadership sets a tone that makes compliance with the law paramount, implements safeguards to prevent future criminal activity, and makes clear to every eBay employee that the idea of terrorizing innocent people and obstructing investigations will not be tolerated.”  

“Today’s settlement holds e-Bay criminally and financially responsible for emotionally, psychologically, and physically terrorizing the publishers of an online newsletter out of fear that bad publicity would adversely impact their Fortune 500 company. It also puts in place some much needed checks and balances to ensure an overhaul of e-Bay’s corporate culture by requiring it to implement a revamped compliance and ethics program designed to prevent the recurrence of the appalling conduct we uncovered in this case,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation Boston Division. “No one should ever feel unsafe in their own home, and while this settlement cannot erase the significant distress this couple suffered, we hope it will deter others from engaging in similar conduct.”

According to eBay’s admissions, between approximately Aug. 5, 2019 and Aug. 23, 2019, Jim Baugh, eBay’s former Senior Director of Safety and Security, and six other members of eBay’s security team targeted the victims for their roles in publishing a newsletter that reported on issues of interest to eBay sellers. Senior executives at eBay were frustrated with the newsletter’s tone and content, and with the comments posted beneath the newsletter’s articles. The harassment campaign arose from communications between those executives and Baugh.  

Baugh and his co-conspirators executed a harassment campaign intended to intimidate the victims and to change the content of the newsletter’s reporting. The campaign included sending anonymous and disturbing deliveries to the victims’ home, including a book on surviving the death of a spouse, a bloody pig mask, a fetal pig and a funeral wreath and live insects; sending private Twitter messages and public tweets criticizing the newsletter’s content and threatening to visit the victims in Natick; and traveling to Natick to surveil the victims and install a GPS tracking device on their car. The harassment also featured Craigslist posts inviting the public for sexual encounters at the victims’ home.

The victims spotted the surveillance team and contacted local police. After learning of the Natick Police Department’s investigation, Baugh made false statements to police and internal investigators, and he and his team deleted digital evidence related to the cyberstalking campaign and falsified records intended to throw the police off the trail. 

The seven convicted eBay employees and contractors include Baugh, who was sentenced to 57 months in prison in September 2022; David Harville, former Director of Global Resiliency, who was sentenced to 24 months in prison in September 2022; Stephanie Popp, former Senior Manager of Global Intelligence, who was sentenced to 12 months in prison in October 2022; Philip Cooke, a former Senior Manager of Security Operations, who was sentenced to 18 months in prison and 12 months of home confinement in July 2021; Stephanie Stockwell and Veronica Zea, a former Manager of Global Intelligence and a contract intelligence analyst, respectively, who were each sentenced to one year in home confinement in October and November 2022.  Brian Gilbert, a former Senior Manager of Security Operations, has pleaded guilty and is awaiting sentencing.   

Acting U.S. Attorney Levy and FBI SAC Jodi Cohen made the announcement today. Valuable investigative assistance was provided by the Natick Police Department. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of the Securities, Financial & Cyber Fraud Unit, prosecuted the case.

BOSTON – A Springfield man pleaded guilty today to possessing cocaine intended for distribution.

Hector Quinones, 44, pleaded guilty to one count of possession with intent to distribute cocaine. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for May 9, 2024. Quinones was indicted by a federal grand jury in April 2022. 

On Jan. 20, 2022, Quinones possessed with intent to distribute 236 grams of cocaine.  

The charge of possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England; and Cheryl Clapprood, Superintendent of the Springfield Police Department made the announcement. Assistant U.S. Attorney Todd E. Newhouse of the Springfield Branch Office is prosecuting the case. 

BOSTON – A Salem, Mass. man was sentenced yesterday in federal court in Boston for distributing and possessing child sexual abuse material (CSAM). 

Andrew R. Sorrento, 35, was sentenced by U.S. District Judge Indira Talwani to six years in prison and five years of supervised release.   In October 2023, Sorrento pleaded guilty to possession and distribution of child pornography. 

In July 2022, Sorrento was identified as an individual distributing CSAM via social media and text messages. During a search of Sorrento’s Salem residence on Dec. 9, 2022, his cell phone was seized and found to contain 23 images and seven videos depicting CSAM – including images of a child under 12-years-old. 

Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was provided by Homeland Security Investigations in Calgary (Canada). 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 – The leader of a Fitchburg-based drug trafficking organization (DTO) was sentenced today in federal court in Worcester for fentanyl, heroin, crack and cocaine trafficking conspiracy.

Pedro Baez, 54, of Fitchburg, was sentenced by U.S. District Court Judge Margaret R. Guzman to 10 years in prison followed by five years of supervised release. In February 2021, Baez pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, 280 grams or more of cocaine base (commonly known as crack cocaine) and 500 grams or more of cocaine and one count of distribution and possession with intent to distribute 400 grams or more of fentanyl, 100 grams or more of heroin and cocaine. 

Following a fatal fentanyl overdose in September 2018, law enforcement began an investigation into a DTO operating in the Fitchburg area led by Pedro Baez and his son Anthony Baez. Beginning in July 2019, electronic communications revealed that the Baez DTO distributed a fentanyl and heroin mixture, cocaine and crack cocaine on a regular basis to individuals in the Fitchburg area, who then redistributed the drugs to others.

Over the course of the investigation, over 1.8 kilograms of a heroin and fentanyl mixture, over 3.6 kilograms of cocaine and over 50 grams of crack cocaine, as well as a stolen, loaded handgun, drug manufacturing equipment and over $376,000 in cash were seized. 

Pedro Baez was charged along with 17 others in July 2020. All 18 defendants were convicted, either by guilty plea or at trial. Pedro Baez is the 18th and final defendant to be sentenced in the case. In December 2020, Anthony Baez was sentenced by U.S. Senior District Court Judge Timothy S. Hillman to 13 years in prison and five 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; Commissioner Carol Mici of the Massachusetts Department of Correction; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. The Fitchburg Police Department, U.S. Postal Inspection Service and the Lunenburg Police Department also provided valuable assistance. Assistant U.S. Attorney Alathea E. Porter and Sarah Hoefle of the Criminal Division prosecuted the case.
        
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

BOSTON – Four Canadian nationals and one former California attorney, who is believed to be residing in Mexico, were indicted on Jan. 9, 2024 in connection with long-running international securities fraud schemes in which they sold millions of shares in multiple microcap—or “penny”—stock companies during pump-and-dumps, generating at least tens of millions of dollars in illicit proceeds. 

The indictment charged Frederick L. Sharp, 71, and Courtney M. Kelln, 43, both of British Columbia, with two counts each of securities fraud and conspiracy to commit securities fraud. The indictment further charged Luis Carrillo, 50, previously of California, and Mike K.G. Veldhuis, 43, and Paul Sexton, 55, both of British Columbia, with one count each of securities fraud and conspiracy to commit securities fraud. Sharp, Carrillo, Veldhuis and Kelln were previously charged in a criminal complaint. Also among the named co-conspirators was Roger Knox, who founded and ran the Swiss asset management firm Wintercap SA and who was sentenced for securities fraud and conspiracy to commit securities fraud in October 2023. 

According to the charging documents, a pump-and-dump typically involves an effort to artificially inflate the stock price or trading volume of a publicly traded company (the “pump”) so that individuals who control a substantial portion of the company’s float can sell their shares at artificially high prices, or in a more liquid market, to other investors (the “dump”).

Sharp—who used the codename “Bond”—allegedly operated a sophisticated platform for at least six years that provided a variety of services to individuals seeking to conceal their identities in contravention of the securities laws when selling penny stock shares during pump-and-dumps. Sharp’s alleged services included: providing offshore nominee entities to hold shares for clients; providing and administering encrypted communications networks for use by clients and other co-conspirators (known as “xphone” and “xmail”); facilitating the deposit of stock through Wintercap in the names of the nominee entities; administering a proprietary web-based accounting system that tracked clients’ total stock holdings, sales and proceeds (known as “Q”); and facilitating the payment of illegal stock sale proceeds to accounts around the world at his clients’ direction. 

Kelln, who worked for Sharp, allegedly facilitated the breakdown and transfer of Sharp’s clients’ shares to Sharp’s offshore nominees, as well as the shares’ subsequent deposit with Wintercap to facilitate their sale to unsuspecting investors.

Carrillo, Veldhuis and Sexton are alleged to have been “undisclosed control persons” who orchestrated pump-and-dumps using Sharp’s platform and through Wintercap. The steps in the alleged schemes generally involved: acquiring control over a significant portion, if not all, of a penny-stock issuer’s outstanding shares and a majority, if not all, of the issuer’s float, while simultaneously failing to file public disclosures when required by the securities laws; transferring the shares to nominee entities in blocks of less than five percent of the total outstanding shares of the issuer in order to evade and circumvent the securities laws and to evade scrutiny by brokers; transferring the shares held by the nominee entities to Wintercap, which in turn deposited the shares for trading at brokerages around the world; directing Wintercap to dump—i.e., sell—the shares during multifaceted promotional campaigns funded and organized by the undisclosed control persons, which campaigns at times included “boiler rooms” cold-calling unsuspecting U.S. investors in Massachusetts and elsewhere touting the stocks and soliciting purchases; and distributing the illicit proceeds from Wintercap at the undisclosed control persons’ direction.  

The indictment identifies three issuers whose shares were sold during pump-and-dumps allegedly led by Carrillo:

• OneLife Technologies Corp. (ticker OLMM), millions of shares of which were sold between November 2017 and October 2018 through Wintercap, generating proceeds of approximately $5.2 million;
• Garmatex Holdings, Ltd. (ticker GRMX), millions of shares of which were sold between March and May 2017 through Wintercap, generating proceeds of approximately $5 million; and
• Pure Snax International, Inc. (ticker PSNX), millions of shares of which were sold between November 2015 and September 2016 through Wintercap, generating proceeds of approximately $1.6 million.

The indictment also identifies one issuer whose shares were sold during a pump-and-dump allegedly led by Veldhuis and Sexton:

• Vitality BioPharma, Inc., formerly known as Stevia First Corp. (tickers VBIO & STVF), millions of shares of which were sold between May 2016 and September 2018 through Wintercap, generating proceeds over $17 million.

The charges of securities fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $5 million. The charges of conspiracy to commit securities fraud each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

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

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 Chicago-area rap artist was sentenced today in federal court in Springfield, Mass. for participating in a nationwide wire fraud conspiracy that victimized businesses across the United States and for making a false statement to a federal agent to conceal his involvement.  

Herbert Wright, 25, a/k/a “G Herbo,” was sentenced by U.S. District Court Judge Mark G. Mastroianni to three years’ probation. Wright was also ordered to pay restitution and forfeiture of $139,968 each, as well as a $5,500 fine.

In July 2023, Wright pleaded guilty to one count of conspiracy to commit wire fraud and one count of making a false statement to a federal official. 

Wright was initially indicted by a federal grand jury in December 2020 along with five co-defendants, including rap promoter Antonio Strong, in connection with the alleged fraud conspiracy. Wright was subsequently charged with making false statements in May 2021. 

“On social media, Mr. Wright boasted an extravagant lifestyle. He gave the impression that his use of private jets, luxury cars and tropical villas were the legitimate fruits of his booming rap career as “G Herbo.” However, his lavish lifestyle was shamelessly built on deceit and fraud using stolen account information that inflicted substantial harm on numerous businesses, leaving a wake of victims burdened with financial losses.” said Acting United States Attorney Joshua S. Levy. “This case should serve as a stark reminder that breaking the law leads to prosecution and accountability, regardless of who you are, how many likes you rack up or how many followers you have.”

Beginning in at least March 2017 through November 2018, Wright and, allegedly, his co-defendants, conspired to defraud numerous businesses and individuals throughout the United States by using unauthorized and stolen payment card account information of real individuals – including the actual cardholders’ names, addresses, security codes and account expiration dates. Generally, because the payment card information was authentic, the defrauded businesses and individuals successfully processed the fraudulent transactions and provided the goods and services to Wright and his alleged co-conspirators. The actual cardholders discovered these transactions on their accounts and disputed the charges with their card companies, who then charged back the transactions to the businesses and individuals, which consequently suffered losses in the amounts of the unauthorized transactions.

According to court documents, Wright frequently asked Strong for a number of luxury goods or services, such as flights, vehicles (“whips”), or accommodation (“cribs”), which Strong allegedly often procured by fraud using the stolen payment card account information. This included: four private jet charters for a total cost of over $80,000; over $34,000 in exotic car rentals including a Mercedes Benz 5560 and a Cadillac Escalade; and over $14,500 for a villa rental in Jamaica for which Wright also requested that Strong provide vehicles and an additional credit card account for his incidentals. 

Wright also used fraud proceeds to travel to various concert venues and to advance his career by posting photographs and/or videos of himself on the private jets, in exotic cars and at the Jamaican villa on social media and in music videos. 

Additionally, according to court documents in November 2018, Wright falsely told a federal agent that he never worked with or was assisted by Strong; he never provided Strong any money; he never received anything of value from Strong; and he had no direct relationship with Strong. In fact, since at least 2016 it is alleged that Strong worked with and assisted Wright; Wright allegedly provided Strong money; Wright allegedly received valuable goods from Strong, including private jet charters, luxury accommodations and exotic car rentals; and Wright allegedly had frequent direct contact with Strong, including phone conversations, text messages and Instagram messages.

Wright admitted, as part his guilty plea, that he was responsible for $139,878 in victim losses. Strong has pleaded not guilty. 

Acting U.S. Attorney Levy and Andrew Murphy, Special Agent in Charge of the U.S. 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 prosecuted the case.

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

BOSTON – A Manchester, N.H., man pleaded guilty today in federal court in Boston for a series of extortionate bomb threats against Harvard University. The extortionate threats caused the evacuation of Harvard’s Science Center Plaza and surrounding academic buildings, and the controlled detonation of what was later determined to be a hoax device on April 13, 2023.  
 
William A. Giordani, 55, pleaded guilty to one count of concealing a federal felony. U.S. District Court Judge Angel Kelley scheduled sentencing for April 25, 2024. Giordani was initially arrested and charged by criminal complaint in May 2023 and subsequently indicted by a federal grand jury in June 2023. 
 
In the early afternoon of April 13, 2023, Giordani placed a large tool bag, which concealed a locked safe containing fireworks and electrical wires, in the center of Harvard’s Science Center Plaza, where students and others had gathered. Shortly thereafter, a caller, using a voice changing app to conceal his identity, called the Harvard University Police Department (HUPD) and said that he had placed three bombs on the Harvard campus. The caller demanded an unspecified amount in Bitcoin to prevent the remote detonation of the bombs. In several ensuing calls, the caller told HUPD that he was serious about his demands and that they could find the first bomb in the Science Center Plaza.
 
HUPD discovered the device planted by Giordani, next to a bench in the center of Science Center Plaza and issued an emergency evacuation order of the area and nearby buildings. A responding bomb squad from the Cambridge Police Department assessed and disabled the device. No additional devices were found on campus that day.
 
A subsequent investigation revealed that Giordani had been recruited to join the extortion scheme via a craigslist.org advertisement. Once Giordani knew he had been recruited to assist in an extortionate bomb scheme, he had an obligation under federal law to report that scheme to law enforcement authorities. Instead, he deleted incriminating text messages, told his girlfriend not to speak to anyone about it and went on the run from police.
 
The charge of concealing a felony provides for a sentence of up to three years in prison and one year of supervised release. 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; Harvard University Police Chief Victor Clay; and Cambridge Police Commissioner Christine Elow made the announcement. Assistance was provided by the Nashua (N.H.) Police Department. Assistant U.S. Attorney John T. McNeil of the National Security Unit is prosecuting the case.

BOSTON – A Randolph man was sentenced yesterday in federal court in Boston for sex trafficking a 15-year-old minor. 

Admilson Gomes Pires, 26, was sentenced by U.S. District Court Judge Leo T. Sorokin to 11 years in prison and five years of supervised release. Pires was also ordered to pay $5,500 in restitution to the victim. In September 2023, Pires was convicted by a federal jury of one count of sex trafficking of a child and one count of conspiracy to commit sex trafficking of a child. 

“Mr. Pires not only preyed upon a minor runaway, but he cruelly subjected her to sexual abuse and trafficking. His calculated manipulation, from grooming this vulnerable young girl to orchestrating commercial sex transactions, demonstrate a reprehensible lack of humanity,” said Acting United States Attorney Joshua S. Levy. “This case underscores why combatting human trafficking, which often hides in plain sight, is such a high priority for this office. January is National Human Trafficking Prevention Month and our office remains steadfast in our commitment to combatting this heinous conduct, seeking justice for survivors and holding perpetrators accountable. The exploitation of vulnerable individuals, especially minors, will never be tolerated.”

“Admilson Pires is a predator who groomed a 15-year-old child who ran away from home for his own gratification and profit, and today’s sentence reflects the seriousness of his crimes,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Sex trafficking is among the most depraved crimes on the books, and using a victim-centered approach, FBI Boston’s Child Exploitation – Human Trafficking Task Force will continue to do everything it can to protect our most vulnerable from those who seek to manipulate and harm them.”

In February 2019, Pires met the minor victim who had run from her home in Western Massachusetts and began a sexual relationship with her. Pires groomed the minor victim and, in July 2019, began trafficking her in Boston and Norwood. He first sold the minor victim for sex to his adult uncle in Dorchester and then created and posted a commercial sex advertisement online that contained explicit photographs and a video of the minor victim. Pires told the minor victim that she would have to engage in prostitution with strangers if she wanted to stay in a relationship with him.  

Pires used drugs to manipulate an adult female into agreeing to harbor the minor victim at her apartment in Norwood for sex trafficking. Over the course of 11 days, Pires had the minor victim engage in commercial sex for him out of the Norwood apartment – arranging four to five “dates” per day in exchange for money he kept himself. On at least one occasion, a sex buyer that Pires had arranged for the minor victim to have sex with was extremely violent toward her. 

On Aug. 1, 2019, local law enforcement located the minor victim in Norwood and returned her home. 

If you or someone you know may be impacted or experiencing commercial sex trafficking, please contact [email protected].  

Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Valuable assistance was provided by the Suffolk and Norfolk County District Attorney’s Offices; the Massachusetts State Police; and the Arlington, Boston, Fall River, Norwood, Randolph and Springfield Police Departments. Assistant U.S. Attorney Timothy Moran, Chief of the Organized Crime and Gang Unit and Assistant U.S. Attorney Elizabeth Riley, Chief of the Civil Rights & Human Trafficking Unit prosecuted the case.

BOSTON – The former Head of School for New Mission School in Hyde Park, an autonomous pilot school within the Boston Public Schools system, was sentenced today for misusing approximately $38,806 in school funds for her own personal use.

Naia Wilson, 60, of Mattapan, was sentenced by U.S. District Court Judge Allison D. Burroughs to two years of supervised release, with the first 90 days to be served in home incarceration, 160 hours of community service and a $25,000 fine. Wilson was also ordered to pay restitution and forfeiture of $38,806 to Boston Public Schools. In September 2023, Wilson pleaded guilty to one count of wire fraud.

Wilson was employed as Head of School for New Mission School from 2006 until about June of 2019. Pilot schools like New Mission are granted maximum autonomy over their budget and spending. New Mission School receives a lump sum per pupil budget from Boston Public Schools and school administrators decide how to spend that money based on the needs of the school. 

Pilot school budgets are managed by an external fiscal agent that contracts with Boston Public Schools. The school funds managed by the external fiscal agent were held in a bank account. In order to spend school funds managed by the external fiscal agent, Wilson, in her role as Head of School for New Mission School, would be required to make a formal check request to the external fiscal agent for a check to be issued from the bank account holding the school’s funds.

Beginning in or about September of 2016 and continuing until at least May of 2019, Wilson requested checks from the external fiscal agent school account to be issued to various individuals, purportedly as stipends for work those individuals did at the school. Once those checks were issued, Wilson fraudulently endorsed the checks to herself and deposited them into her own bank account without the nominee ever knowing or authorizing her to do so.

Additionally, Wilson requested checks from the external fiscal agent that were used to pay for two all-inclusive personal vacations to Barbados for herself and several of her friends in 2016 and 2018. For both the 2016 and 2018 Barbados trips, Wilson requested that the external fiscal agent issue checks payable to other people who went on the trips and then converted that money to pay for the all-inclusive hotel and airfare. Wilson also fraudulently endorsed the checks used to pay for the 2018 trip.

Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement today. The Boston Public Schools were cooperative in the investigation. Assistant U.S. Attorneys Eugenia M. Carris and Charles Dell’Anno of the Criminal Division prosecuted the case.

BOSTON – A New York man was sentenced on Jan. 5, 2024 in federal court in Springfield for drug trafficking charges involving fentanyl. 

Chanty Reynoso Vasquez, 28, of Bronx, N.Y., was sentenced by U.S. District Judge Mark G. Mastroianni to two years in prison. In July 2023, Reynoso Vasquez pleaded guilty to possession with intent to distribute 400 grams or more of fentanyl. 

According to court documents, Reynoso Vasquez brought over 30,000 bags of fentanyl laced heroin from the Bronx to Springfield on March 30, 2022. 

Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England; and Springfield Police Commissioner Cheryl Clapprood made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of the Springfield Branch Office prosecuted the case.

BOSTON – A Malden man has pleaded guilty in federal court in Boston to distributing fentanyl and using stolen identities to conduct transactions and obtain credit cards.

Derick Coulanges, a/k/a/ “Casa,” 28, pleaded guilty on Jan 5, 2024 to distribution and possession with intent to distribute fentanyl; possession of five or more identification documents with intent to use them unlawfully; and use of and trafficking in unauthorized access devices with intent to defraud to obtain property valued over $1,000. U.S. District Court Judge Indira Talwani scheduled sentencing for April 12, 2024. Coulanges was charged by criminal complaint in July 2023. 

In January and February 2023, Coulanges was recorded selling a cooperating witness 50 grams of fentanyl in Coulanges’ Mercedes Benz. In the recordings, Coulanges also offered to procure counterfeit driver’s licenses for the cooperating witness that contained stolen personal identifying information (PII). Coulanges would go on to explain the manner in which a counterfeit driver’s license bearing stolen PII could be utilized to open bank accounts and obtain credit cards to purchase items. 

In March 2023, during a search of Coulanges’ Malden apartment which he had obtained using a drug customer’s stolen identity, approximately 28 grams of methamphetamine was located. A search of Coulanges’ Mercedes Benz revealed six driver’s licenses bearing stolen PII and one counterfeit license that bore Coulanges’ photograph but contained stolen PII of an individual from Ohio. A subsequent investigation revealed that the individuals associated with the driver’s licenses had been the victims of identity theft and had bank accounts and credit cards opened in their name. The counterfeit driver’s license bearing Coulanges’ photograph had been used to open bank accounts, apply for loans and obtain credit cards. Surveillance footage was located depicting Coulanges opening the accounts and then utilizing the fraudulently obtained credit cards to conduct transactions at various retailers, including at two jewelry stores where he purchased approximately $12,000 in jewelry.

The charge of distribution and possession with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of possession of five or more identification documents with intent to use them unlawfully provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of up to $250,000. The charge of use of unauthorized access devices to fraudulently obtain more than $1,000 provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.

BOSTON – A Jamaica Plain man was sentenced on Jan. 5, 2024 in federal court in Boston for a May 2022 robbery of a TD Bank in Cambridge.

Jalonni Shabazz, a/k/a “Jalonni Tucker,” 42, was sentenced by U.S. District Court Judge Indira Talwani to 63 months in prison and three years of supervised release. In August 2023, Shabazz pleaded guilty to one count of bank robbery.

On May 2, 2022, at approximately 12:49 p.m., a suspect wearing a royal blue baseball hat, gray short-sleeved T-shirt, a camouflage pattern garment around his neck and medical mask entered the TD Bank on Massachusetts Ave. in Cambridge. The suspect handed the teller a note that read, “All of the Money - No Dye packs - or alarms,” and then told the teller, “This is a robbery honey.” The teller complied with the suspect’s demands and gave cash to the suspect.  The man then fled on foot after taking $2,200 cash from the teller. 

During a search of the area surrounding the bank, a royal blue baseball hat, consistent with that worn by the suspect in the robbery, was located. DNA obtained from the hat belonged to Shabazz. In addition, analysis of the bank’s surveillance footage and the defendant’s Facebook account identified Shabazz’s features – including his tattoo, hair and an article of clothing – to be consistent with that of the robbery suspect.

At the time of the robbery, Shabazz was on supervised release following a 2017 federal conviction for two bank robberies for which he was sentenced to 54 months in prison.

Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Massachusetts State Police Interim Colonel John E. Mawn, Jr.; Boston Police Commissioner Michael Cox; and MBTA Transit Police Chief Kenneth Green made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of the Major Crimes Unit is prosecuting the case. 

BOSTON – A Boston man was sentenced on Jan. 5, 2024 for attempting to prevent a victim from testifying against him in a federal proceeding. Defendant was on federal supervised release for sex trafficking when he exposed himself to the victim.   

Mark Pinnock, 32, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 33 months followed by three years supervised release. In October 2023, Pinnock pleaded guilty to one count of witness intimidation. 

In 2014, Pinnock was sentenced to eight years in prison for a sex trafficking offense. In July 2022, after his release from prison, Pinnock was working as an Amazon driver while under federal supervision. A victim reported to law enforcement that Pinnock exposed his penis to her while delivering a package to the condominium complex where the victim worked as a custodian. As a result, the U.S. Probation Office sought to revoke Pinnock’s term of supervised release and the Court scheduled a hearing to adjudicate Pinnock’s alleged offense.  

One week before the hearing, Pinnock directed a co-conspirator to go to the condominium complex on his behalf at a time when he knew that the victim would be working. The co-conspirator falsely claimed that he worked for the state and told the victim not to go to Court while standing with his hand in his pocket in a threatening manner as if he had something in it. Pinnock also used an encrypted messaging application to send an anonymous message to the security officer at the complex to “let the cleaning lady know” she would be arrested by immigration officials if she were to go to court. Finally, Pinnock placed three separate phone calls to immigration officials in an attempt to have the victim detained for being unlawfully present in the United States. In the calls to immigration officials, Pinnock falsely claimed that he had heard the victim was gang-affiliated, among other things.

Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England made the announcement today.  The Brockton Police provided valuable assistance in the investigation. Assistant U.S. Attorney Mackenzie A. Queenin of the Criminal Division prosecuted the case.  

BOSTON – A Belchertown man was sentenced yesterday in federal court in Springfield for fraudulently receiving Social Security disability benefits.   

Kenneth Pontz, 59, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 10 months in prison and three years of supervised release.  Restitution and forfeiture will be determined at a hearing on March 5, 2024.  In August 2023, Pontz was convicted by a federal jury of one count of theft of public funds after a four-day trial. 

Over a span of 16 years, Pontz repeatedly made false statements to the Social Security Administration to obtain over $114,000 in disability benefits to which he was not entitled by concealing that he lived with his wife, whose income would have been used in calculating his monthly benefit payment for the needs-based program. Pontz further concealed his living arrangements by reporting that he lived at a vacant lot, rather than the residence he shared with his wife. Additionally, Pontz provided a fraudulent rent receipt that overstated his actual rent by $575 per month.

Also during this time frame, Pontz embezzled approximately $46,000 from his trailer park association in his capacity as treasurer.

Acting United States Attorney Joshua S. Levy; Sharon MacDermott, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Belchertown Police Chief Kevin Pacunas made the announcement today. Special Assistant U.S. Attorney James J. Nagelberg and Assistant U.S. Attorney Neil L. Desroches of the Criminal Division prosecuted the case.
 

BOSTON – A Maine man was sentenced today in federal court in Boston in connection with a fentanyl trafficking operation that spanned across northern New England. 

Douglas Morris, 33, of Bangor, Maine, was sentenced by U.S. District Court Judge Indira Talwani to 12.5 years in prison and five years of supervised release.  In August 2023, Morris 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 p-Fluorofentanyl, a fentanyl analogue. Morris was indicted by a federal grand jury along with five co-defendants in March 2022.

According to court documents, in June 2021, Morris picked up nearly two kilograms of p-Fluorofentanyl – a dangerous fentanyl analogue – intended for distribution in Maine, allegedly from co-defendant Ivan Rodriguez Osorio in a hotel parking lot in Amesbury, Mass. Morris’ vehicle was subsequently stopped by law enforcement and the narcotics were seized. 

The fentanyl analogue was packaged in 161 10-gram cylinders commonly called “fingers.” These fingers are a common form of drug packaging for resale to other distributors. Morris had allegedly made three prior drug purchases from Rodriguez Osorio, buying approximately 500 grams of fentanyl each time.

Less than two weeks later, in July 2021, Morris picked up nearly two kilograms of fentanyl, allegedly from Rodriguez Osorio, in the same hotel parking lot in Amesbury, Mass. Morris’ vehicle was again stopped by law enforcement and the narcotics were seized.  

According to court documents, Morris has multiple prior convictions for drug trafficking offenses. In July 2009 Morris was arrested federally and charged with conspiracy to distribute and possession with intent to distribute oxycodone. While on federal pretrial release, he was again arrested and charged by state authorities with trafficking oxycodone. Morris was eventually convicted of both offenses and sentenced to 88 months in prison in the federal case and two years (served concurrently) in the state case. However, upon his release, Morris violated the terms of his supervised release numerous times and was revoked twice. His supervised release ended in 2019.

Morris is the second defendant to be sentenced in the case.

Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Special assistance was provided by the New Hampshire State Police. Assistant U.S. Attorneys Stephen W. Hassink and Lauren A. Graber of the Narcotics & Money Laundering Unit prosecuted the case.

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

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

BOSTON – A former detective sergeant for the Stoneham Police Department was sentenced today for concealing his history of evictions and using a family member’s credit report to obtain an apartment lease and then defrauding his landlord by intentionally withholding rent payments.

Robert Kennedy, 54, of Stoneham, was sentenced by U.S. District Court Judge Denise J. Casper to two years of probation, with the first 90 days to be served under home confinement with electronic monitoring.  Kennedy was also ordered to pay restitution of $14,275. In September 2023, Kennedy pleaded guilty to two counts of wire fraud. 

“Today's sentence should send a clear message: no one is above the law. We remain steadfast in our commitment to hold accountable those who exploit their positions and engage in fraudulent activities that compromise the very principles they are sworn to uphold,” said Acting United States Attorney Joshua S. Levy.

“Former Stoneham Police Department Detective Robert Kennedy broke laws he was sworn to enforce, and in doing so, failed his department, and betrayed the trust of three landlords whom he lied to and defrauded. In no uncertain terms, today’s sentence demonstrates that no one is above the law,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “This case also highlights the FBI’s ongoing commitment to root out and bring to justice anyone who deliberately compromises the integrity of their position for personal gain.”

From February 2020 through June 2023, Kennedy lied to and defrauded three separate landlords to obtain apartments that he had no intention of paying for. After moving in, Kennedy would intentionally withhold rent payments, despite making $141,000 - $187,000 a year from the Stoneham Police Department. As a result, Kennedy lived in the apartments rent-free by taking advantage of the slow eviction process.  

Specifically, Kennedy defrauded his most recent landlord by submitting materially false and fraudulent information during the rental application process. The landlord required Kennedy to submit to a tenant screening service, which included a credit check and eviction history check. Instead of providing his own date of birth and social security number to the tenant screening service – which would likely have shown Kennedy’s history of collections, delinquent payments, defaults and evictions – Kennedy provided the date of birth and Social Security number of a relative who shared his first and last name. The landlord relied on the information from the fraudulently obtained tenant screening report to approve Kennedy’s rental application and give Kennedy a lease for the apartment. Additionally, Kennedy immediately and intentionally violated the terms of the lease by giving the landlord bad checks for his rent and security deposit and failing to make subsequent rent payments. Kennedy lived in the apartment for approximately four months without making rent payments and currently owes the landlord approximately $14,000 in overdue rent.  

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made announcement today. Valuable assistance was provided by the Stoneham Police Department. Assistant U.S. Attorneys Elysa Q. Wan and Dustin Chao of the Public Corruption & Special Prosecutions Unit prosecuted the case.

BOSTON – An East Longmeadow man was sentenced today in federal court in Springfield for marijuana trafficking.

John Americo Pereira, 38, was sentenced by U.S. District Court Judge Mark G. Mastroianni to six months in prison and three years of supervised release. In June 2023, Pereira pleaded guilty to one count of possession with intent to distribute more than 100 kilograms of marijuana. 

In January 2018, an investigation began into Pereira, and others, for trafficking marijuana. During a search of Pereira’s home in February 2019, approximately $688,000 in drug proceeds and more than 269 pounds (122 kilograms) of marijuana packaged in one-pound bags were found. Also found at Pereia’s residence were several smaller or partially filled packages and containers of marijuana, marijuana cigarettes and a large amount of marijuana edibles, including 876 chocolate bars. 

Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Office and the Criminal Division’s Organized Crime and Gang Section of the Department of Justice prosecuted the case.  
 

BOSTON – A Vermont man pleaded guilty today in federal court in Springfield in connection with illegally possessing a firearm and ammunition and possessing with intent to distribute methamphetamine.

Jeffrey Baird, 43, pleaded guilty to one count of being a felon in possession of a firearm and ammunition and one count of possessing with the intent to distribute methamphetamine.  U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for April 4, 2024. Baird was indicted by a federal grand jury in March 2022. 

In December 2021, law enforcement stopped Baird’s vehicle travelling north on Route 91 in Northampton. Baird had a fake paper license plate taped to his back window and had been driving without any valid driver’s license. Baird was taken into custody. During a subsequent search of Baird’s vehicle, a revolver and five rounds of ammunition were found along with 207 grams of methamphetamine in a Ziplock bag – which carried a street value of between $6,000 and $10,000. Additionally, three more rounds of ammunition were found on Baird’s person inside his Hell’s Angels vest. 

Baird is prohibited from possessing firearms and ammunition due to prior convictions for firearms offenses. 

The charge of being a felon in possession of a firearm and ammunition 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 possession with the intent to distribute methamphetamine provides for a sentence up to 20 years in prison, up to three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla, Chief of the Springfield Branch Office, is prosecuting the case.

BOSTON – Two New York men have been arrested on charges related to visa fraud.

Rambhai Patel, 36, and Balwinder Singh, 39, were charged with one count each of conspiracy to commit visa fraud. Patel was arrested in Seattle on Dec. 13, 2023 and, following an initial appearance in the Western District of Washington, was ordered detained pending trial. Singh was arrested in Queens, N.Y. on Dec. 13, 2023 and had his initial appearance in the Eastern District of New York. Singh appeared in federal court in Boston yesterday afternoon. Patel is expected to appear in federal court in Boston at a later date.

According to the charging documents, starting in March 2023, Patel and his co-conspirators, including at times Singh, set up and carried out staged armed robberies of at least eight convenience/liquor stores and fast food restaurants across the United States, including at least four in Massachusetts. It is alleged that the purpose of the staged robberies was to allow the clerks present to claim that they were victims of a violent crime on an application for U nonimmigration status (U Visa). A U Visa is available to victims of certain crimes who have suffered mental or physical abuse and who have been helpful to law enforcement in the investigation or prosecution of criminal activity.  

In the course of the alleged staged robberies, the “robber” would threaten store clerks and/or owners with an apparent firearm before taking cash from the register and fleeing, while the interaction was captured on store surveillance video. The clerks and/or owners would then wait five or more minutes until the “robber” had escaped before calling police to report the “crime.”  The “victims” are alleged to have each paid Patel to participate in the scheme. In turn, Patel allegedly paid the store owners for the use of their stores for the staged robbery.

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

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance in the investigation was provided by the U.S. Attorney’s Offices for the Eastern District of New York and the Western District of Washington; FBI’s New York and Seattle Field Offices; U.S. Citizenship and Immigration Services; Massachusetts State Police; Worcester County District Attorney’s Office; and the Hingham, Marshfield, Randolph, Weymouth, Worcester, Upper Darby, (Pa.), West Pittston (Pa.), Louisville, (Ky.) and Bean Station (Tenn.) Police Departments. Assistant U.S. Attorneys Elianna J. Nuzum and Jessica L. Soto of the Major Crimes Unit are prosecuting the case. 

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

BOSTON – A New York man was sentenced yesterday for distributing approximately three kilograms of fentanyl and 592 grams of fentanyl analogue in Woburn. 

Ruben Davila Cardenas, 45, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to four years in prison and three years of supervised release. On Sept. 25, 2023, Cardenas pleaded guilty to distribution and possession with intent to distribute fentanyl. 

In October 2021, Cardenas travelled from New York City to Boston and distributed approximately three kilograms of fentanyl and over 500 grams of fentanyl analogue to a cooperating source in Woburn.

Early in the day on Oct. 19, 2021, Cardenas picked up approximately three kilograms of fentanyl and over 500 grams of fentanyl analogue from an individual in New York City. Cardenas then travelled with the narcotics to Boston on a bus and to Woburn via a ride-share vehicle. There, Cardenas distributed the fentanyl and fentanyl analogue in a backpack to a cooperating source. Cardenas was immediately apprehended. The backpack was found to contain three kilograms of fentanyl and several thousand pills of fentanyl analogue.

Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Colonel Mark B. Hall, Director of the New Hampshire State Police made the announcement. Assistant U.S. Attorney John T. Mulcahy of the Narcotics & Money Laundering Unit prosecuted the case.

BOSTON – A West Bridgewater man was arrested yesterday for allegedly receiving child pornography from an online communication application. 

Juan Levano, 23, was charged by criminal complaint with one count of receipt of child pornography. Levano was arrested yesterday morning and, following an initial appearance in federal court in Boston, remains in federal custody.

According to the charging documents, an investigation into an internet-based communications application used for the trafficking of child pornography identified Levano as a likely user of the platform who participated in at least two groups where child pornography was disseminated. 

Search warrants were executed yesterday at the residence where Levano resides and seized various electronic devices. According to the charging documents, Levano rented a room at the residence, which is registered as a residential daycare. Both Levano and the owner of the residence denied that Levano worked at the residential daycare and denied that Levano had any contact with the children who attend it.

It is alleged that Levano admitted to being a member of several groups on the chat application and obtaining child pornography from those groups – estimating that his collection included imagery of children ranging from infancy to 13 years old. A preliminary review of Levano’s phone allegedly revealed that Levano was a member of several active groups on the platform that included the exchange of child pornography. It is further alleged that more than 100 video and image files were identified, most of which appear to depict child pornography, and stored in a photo application on Levano’s phone. Forensic analysis of the seized devices is ongoing.

The charge of receipt of child pornography provides for a sentence of at least five years and up to 20years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $ 250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

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 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 West Bridgewater Police Department. Assistant U.S. Attorney Jessica L. Soto of the Office’s 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 – Pharmaceutical company Ultragenyx Pharmaceutical, Inc. (Ultragenyx) has agreed to pay $6 million to resolve allegations that it caused the submission of false claims to Medicare and Medicaid. The settlement concerns Ultragenyx paying for free genetic tests for patients and buying test result information to induce prescriptions of Crysvita. 

Ultragenyx is a pharmaceutical manufacturer headquartered in California that manufactures Crysvita. Crysvita is an FDA-approved drug to treat X-linked hypophosphatemia (XLH) in adult and pediatric patients six months of age and older. XLH is a rare inherited disorder characterized by low levels of phosphate in the blood, which can lead to weak bones and, in many instances, may require a genetic test to definitively diagnose.  
    
As part of the settlement, Ultragenyx admitted and accepted responsibility for certain facts providing the basis of the settlement. Ultragenyx understood that, in some cases, an insurer (including Medicare or Medicaid) would require a positive genetic test for a genetic mutation consistent with XLH to pay for a patient’s prescription for Crysvita, or a health care provider (HCP) would require a positive genetic test to make a definitive diagnosis of XLH and prescribe Crysvita. Thus, Ultragenyx entered into an arrangement with a genetic testing laboratory (Laboratory), whereby Ultragenyx paid the Laboratory to conduct genetic tests—at no cost to HCPs or patients—and provide the results to the HCP. Ultragenyx referred to this program as its “sponsored” XLH testing program. Ultragenyx sales personnel discussed the XLH testing program with HCPs and delivered order forms for the tests to HCP’s offices.

Ultragenyx separately paid the Laboratory to provide the test results to Ultragenyx, including the name of the HCP who ordered the test, a de-identified patient ID number, the date the test was ordered, and—once ready—the test result itself ( “Results Reports”).  Ultragenyx used the Results Reports, in part, for marketing purposes to find potential Crysvita patients and their HCPs. Until April 2022, Ultragenyx received Results Reports and disseminated this information to its sales force with instructions to make sales calls for Crysvita to HCPs who ordered a test or who had a patient with a positive test result. Ultragenyx’s sales force followed up with HCPs regarding test results. 

The United States contends that, as a result of these actions, Ultragenyx caused the submission of false claims to Medicare and Medicaid by paying kickbacks to beneficiaries in the form of free genetic tests to induce their purchase of Medicare- or Medicaid-reimbursed Crysvita and to the Laboratory for the Results Reports to induce the Laboratory’s to refer to Ultragenyx the names of HCPs to whom Ultragenyx could market Crysvita.   

“Kickbacks, in whatever form, have no business in our federal healthcare system. We are always on the lookout for financial kickbacks that can improperly influence medical decisions, undermine patient care, and cause waste to federal healthcare programs,” said Acting United States Attorney Joshua S. Levy. “As medical practices evolve, our office is committed to ferreting out improper financial kickbacks of any permutation.”

“The department is committed to protecting the integrity of federal health care programs and the medical care received by their beneficiaries,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “A primary focus of this effort is the pursuit of kickback schemes that can allow third parties, such as pharmaceutical manufactures, to insert themselves into the doctor-patient relationship and potentially undermine the objectivity of treatment decisions by physicians and patients.”

 “Kickback arrangements designed to improperly influence medical decisions will always be an investigative priority for our agency,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General. “The goals of our continued enforcement in this area are to protect the integrity of taxpayer-funded health care programs such as Medicare and Medicaid, and to curb schemes that can inappropriately manipulate the health care choices of patients and their doctors.”

“Today’s settlement makes it crystal clear that pharmaceutical companies like Ultragenyx will not be allowed to exploit patient data to target patients for treatments in order to boost their bottom line at the expense of taxpayer-funded health care programs,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Let this case be a warning to others that the FBI and our law enforcement partners are hard at work investigating allegations of health care fraud, and anyone engaging in similar conduct will face similar consequences.”

The allegations resolved by the settlement agreement were, in part, originally brought in a case filed under the whistleblower, or qui tam, provision of the False Claims Act. The case is captioned U.S. ex rel. Ruggiero v. Ultragenyx Pharmaceutical, Inc. (D. Mass.) (No. 1:21-cv-11176-ADB). The False Claims Act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government did, in part, in this case. Of the total $6 million recovery, approximately $5.8 million constitutes a recovery for Medicare and the federal share of Medicaid and approximately $200,000 constitutes a recovery for state Medicaid programs. The whistleblower will receive approximately $1.07 million from the federal portion of the recovery.  

Acting U.S. Attorney Levy; AAG Boynton; HHS-OIG SAC Coviello; and FBI SAC Cohen made the announcement today. Assistant U.S. Attorneys Brian LaMacchia and Diane Seol and Senior Counsel for Health Care Fraud Augustine Ripa handled the matter. 

Pharmaceutical company Ultragenyx Pharmaceutical Inc. (Ultragenyx) has agreed to pay $6 million to resolve allegations that it caused the submission of false claims to Medicare and Medicaid, in violation of the False Claims Act, by paying for free genetic tests, plus a separate fee to receive test result information for marketing purposes, to collectively induce prescriptions of its drug Crysvita and referrals of health care providers (HCPs) to Ultragenyx for the furnishing or arranging for the furnishing of Crysvita.

Ultragenyx is a pharmaceutical manufacturer with a principal place of business in California that manufactures Crysvita. Crysvita is an FDA-approved drug to treat X-linked hypophosphatemia (XLH) in adult and pediatric patients six months of age and older. XLH is a rare inherited disorder characterized by low levels of phosphate in the blood, which can lead to weak bones and, in many instances, may require a genetic test to definitively diagnose.

Ultragenyx understood that, in some cases, a positive genetic test for a genetic mutation consistent with XLH would be required for an insurer (including Medicare or Medicaid) to pay for a patient’s prescription for Crysvita, or for a healthcare provider (HCP) to make a definitive diagnosis of XLH and prescribe Crysvita. Thus, Ultragenyx entered into an arrangement with a genetic testing laboratory (Laboratory), whereby Ultragenyx paid the Laboratory to conduct genetic tests — at no cost to HCPs or patients — and provide the results to the HCP. Ultragenyx referred to this program as its “sponsored” XLH testing program and Ultragenyx sales personnel discussed the XLH testing program with HCPs and delivered order forms for the tests to HCP offices.

Ultragenyx separately paid the Laboratory to provide the test results to Ultragenyx, including the name of the HCP who ordered the test, a de-identified patient ID number, the date the test was ordered and — once ready — the test result itself (collectively, Results Reports). Ultragenyx used the Results Reports, in part, for marketing purposes to find potential Crysvita patients and their HCPs. Until April 2022, Ultragenyx received Results Reports and disseminated this information to its sales force with instructions to make sales calls for Crysvita to HCPs who ordered a test or, in particular, who had a patient with a positive test result. Ultragenyx’s sales force followed up with HCPs regarding test results. The United States contends that, as a result of these actions, Ultragenyx caused the submission of false claims to Medicare and Medicaid by paying kickbacks 1) to beneficiaries in the form of free genetic tests to induce their purchase of Medicare or Medicaid-reimbursed Crysvita and 2) to the Laboratory for the Results Reports to induce the referral to Ultragenyx of HCPs to whom Ultragenyx could market Crysvita.

As part of the settlement, Ultragenyx admitted and accepted responsibility for certain facts providing the basis of the settlement.

“The department is committed to protecting the integrity of federal health care programs and the medical care received by their beneficiaries,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “A primary focus of this effort is the pursuit of kickback schemes that can allow third parties, such as pharmaceutical manufactures, to insert themselves into the doctor-patient relationship and potentially undermine the objectivity of treatment decisions by physicians and patients.

“Kickbacks, in whatever form, have no business in our federal healthcare system” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “We are always on the lookout for financial kickbacks that can improperly influence medical decisions, undermine patient care and cause waste to federal healthcare programs. As medical practices evolve, our office is committed to ferreting out improper financial kickbacks of any permutation.”

“Kickback arrangements designed to improperly influence medical decisions will always be an investigative priority for our agency,” said Special Agent in Charge Roberto Coviello of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “The goals of our continued enforcement in this area are to protect the integrity of taxpayer-funded health care programs such as Medicare and Medicaid, and to curb schemes that can inappropriately manipulate the health care choices of patients and their doctors.”

“The FBI and its partners will not stand by when a pharmaceutical company illegally takes advantage of our health care system,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response and Services Branch. “Those who engage in activity that violates the False Claims Act must face the consequences of their actions. As we strive to protect the American people, we will not stop working to combat healthcare fraud.”

The allegations resolved by the settlement agreement were, in part, originally brought in a case filed under the whistleblower, or qui tam, provision of the False Claims Act. The case is captioned United States ex rel. Ruggiero v. Ultragenyx Pharmaceutical, Inc. (D. Mass.) (No. 1:21-cv-11176-ADB). The False Claims Act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government did, in part, in this case. Of the total $6 million recovery, approximately $5.8 million constitutes a recovery for Medicare and the federal share of Medicaid and approximately $200,000 constitutes a recovery for State Medicaid programs. The whistleblower will receive approximately $1.07 million from the federal portion of the recovery.

The government’s pursuit of this matter illustrates the government’s emphasis on combating healthcare 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).

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 investigative support from HHS-OIG and the FBI’s Boston Field Office.

This matter was handled by Senior Counsel for Health Care Fraud Augustine Ripa and Assistant U.S. Attorneys Brian LaMacchia and Diane Seol for the District of Massachusetts.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

BOSTON – A New Hampshire man has pleaded guilty to his role in a conspiracy to harass and intimidate two journalists employed by New Hampshire Public Radio (NHPR). The harassment and intimidation of the victims included the vandalism – on five separate occasions – of the victims’ homes and the home of one of the victims’ parents with bricks, large rocks and red spray paint.

Tucker Cockerline, 32, of Salem, N.H., pleaded guilty in federal court in Boston to conspiracy to commit stalking through interstate travel and the use of a facility of interstate commerce. U.S. District Court Judge Indira Talwani scheduled sentencing for March 19, 2024. Cockerline was initially arrested and charged by criminal complaint in June 2023 along with alleged co-conspirators Michael Waselchuck and Keenan Saniatan. The defendants were subsequently indicted by a federal grand jury along with Eric Labarge in September 2023.

According to the charging documents, after a year-long investigation, an NHPR journalist (Victim 1) published an article in March 2022 detailing allegations of sexual and other misconduct by a former New Hampshire businessperson, identified in the charging document as Subject 1. Another NHPR journalist (Victim 2) also contributed to the article, which appeared on NHPR’s website during and after March 2022. In response to this reporting, Labarge – who is alleged to be a close personal associate of Subject 1 – Saniatan, Cockerline and Waselchuck allegedly agreed to harass and intimidate Victims 1 and 2 and their immediate family members. Among other things, the indictment alleges that:

• On or about April 22, 2022, Labarge solicited Cockerline to vandalize Victim 1’s former residence in Hanover, N.H., using a brick and red spray paint. Thereafter, on the evening of April 24, 2022, Cockerline spraypainted the word “C*NT” in large red letters on the front door and allegedly threw a brick through an exterior window of the home;
• On or about April 22, 2022, Saniatan allegedly agreed to vandalize Victim 2’s home in Concord, N.H., and Victim 1’s parents’ home in Hampstead, N.H., using large rocks and red spray paint. Thereafter, on the evening of April 24, 2022, Saniatan allegedly spraypainted the word “C*NT” in large red letters on the front door and threw a large rock at the exterior of Victim 2’s home; and he allegedly threw a softball-sized rock through a front exterior window and spraypainted the word “C*NT” in large red letters on one of the garage doors of Victim 1’s parents’ home;
• On or about May 18, 2022, Labarge allegedly solicited Cockerline to vandalize Victim 1’s parents’ home in Hampstead, N.H., and Victim 1’s home in Melrose, Mass., using bricks and red spray paint. Cockerline, in turn, allegedly recruited Waselchuck to vandalize Victim 1’s residence; and
• On the evening of May 20, 2022, Cockerline spraypainted the word “C*NT” in large red letters on one of the garage doors of Victim 1’s parents’ home, and left a brick on the ground near the front door. Several hours later, Waselchuck allegedly threw a brick through an exterior window of Victim 1’s home and painted the phrase “JUST THE BEGINNING” in large red letters on the front of the house.

Each charge in the indictment carries a maximum sentence of up to five years in prison, three years of supervised release, a $250,000 fine and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today.  Valuable assistance was provided by the Concord, Hampstead and Hanover, New Hampshire Police Departments, the Melrose, Massachusetts Police Department and the United States Attorney’s Office for the District of New Hampshire. Assistant U.S. Attorneys Jason A. Casey and Torey B. Cummings of the Criminal Division are prosecuting the case.

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 Connecticut man who held positions involving facility maintenance at three collegiate institutions was sentenced yesterday for receiving $919,066 of bribes in exchange for directing contracts to favored contractors. 

Floyd Young, 53, of Shelton, Conn., was sentenced by U.S. District Court Judge Mark G. Mastroianni to eight months in prison. Young was also ordered to pay restitution of $919,066 to the collegiate institutions and forfeiture of $919,066. In August 2020, Young pleaded guilty to one count of conspiracy and three counts of bribery concerning programs receiving federal funds. 

Young held positions involving facility maintenance at three collegiate institutions, including American International College, located in Springfield. Young steered contracts for construction, repair, maintenance, and other work for the collegiate institutions to favored contractors who paid him bribes, typically in the amount of 15% of the contract. The contractors inflated the amount of the invoices submitted to the collegiate institutions in order to be repaid the cost of the bribe payment made to Young. In addition, as contractors received payments for work done at the collegiate institutions, they paid Young bribes on a periodic basis. On occasion, Young and the contractors arranged for no-work invoices to be submitted to the collegiate institutions and then split the payment. 

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 Steven H. Breslow of the Springfield Branch Office prosecuted the case.

BOSTON – A Mexican man residing in Westford was sentenced yesterday in federal court in Boston for unlawfully reentering the United States after deportation.

Pedro Romo-Gonzalez, 42, was sentenced today by U.S. District Court Judge Richard G. Stearns to time served (approximately six months in prison). On Oct. 19, 2023, Romo-Gonzalez pleaded guilty to unlawful reentry of a deported alien.

On at least eight separate occasions between April 1998 and July 2010, Romo-Gonzalez was removed from the United States or voluntarily returned to Mexico. After each removal, he illegally re-entered the United States without obtaining the appropriate permission to reenter. He was first encountered by federal authorities in April 1998 after he entered the United States via California without being admitted by an immigration officer. In December 2009, Romo-Gonzalez was convicted in Arizona state court of solicitation to commit smuggling. Most recently, on June 13, 2023, federal immigration authorities were notified of Romo-Gonzalez’s presence in Massachusetts after he was arrested on unrelated state charges. 

Acting United States Attorney Joshua S. Levy; Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and Westford Police Chief Mark Chambers made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of the Major Crimes Unit prosecuted the case. 

BOSTON – A Watertown man pleaded guilty yesterday in federal court in Boston to defrauding investors who believed they were financing lucrative short-term sports ventures in Africa.

Adrian Kawuba, 33, pleaded guilty to four counts of wire fraud. United States District Court Judge William G. Young scheduled sentencing for March 14, 2024. Kawuba was arrested and charged in November 2022.

Kawuba told his victims that he would invest their money in short-term financing of sports ventures in Africa and elsewhere overseas and that he would personally guarantee their investments. Kawuba did not invest any of the victims’ funds. Instead, Kawuba used the money to pay for luxury goods and to pay purported returns to his investors – in some instances paying back a victim’s earlier investment with money that victims had just sent Kawuba for a new investment. The scheme involved at least 26 fraudulent deals, involving more than $2.3 million in victim funds.

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

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Watertown Police Department provided valuable assistance. Assistant U.S. Attorney Kriss Basil of Securities, Financial & Cyber Fraud Unit is prosecuting the case.

BOSTON – A Vancouver man pleaded guilty today in federal court in Boston to participating in a conspiracy to defraud investors in the Boston-based biomedical company Endeavor Power Corp.

Marco G. Babini, 62, pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud. U.S. District Court Judge Patti B. Saris scheduled sentencing for March 14, 2024. Babini was indicted by a federal grand jury in Boston in September 2015. He was arrested in Canada on April 21, 2020, at the request of the United States, and was extradited to the United States in July 2023.

Between approximately July 2012 and March 2013, Babini agreed to participate in a securities fraud scheme involving the planned sale of stock under concealed control during a promotional campaign, a course of conduct commonly known as a “pump-and-dump.” Babini had trading authority over brokerage accounts in Switzerland in the names of nominee entities that held a significant portion of the purportedly unrestricted shares of Endeavor. To raise money to fund a promotional campaign to generate investor demand for the shares, Babini agreed to execute pre-arranged trades with an undercover federal agent. The undercover agent was posing as an individual who had a corrupt network of stockbrokers willing to purchase and hold shares on behalf of their clients in exchange for monetary kickbacks. Babini agreed to execute pre-arranged trades with the goal of raising at least $200,000, and, in December 2012, Babini attempted to execute an initial test trade valued at $20,000.

Babini’s co-conspirators Edward Withrow III and Samuel Brown were previously charged with and convicted of federal offenses. In May 2018, Withrow pleaded guilty to one count of making false statements to the U.S. Securities & Exchange Commission (SEC). Brown separately pleaded guilty in July 2015 to one count of conspiracy to commit securities fraud and wire fraud and one count of making false statements to the SEC. Withrow and Brown were sentenced in December 2018 and January 2019, respectively.

The charge of conspiracy provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000, or twice the amount involved, 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 Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The U.S. Justice Department’s Office of International Affairs and the Department of Justice Canada’s International Assistance Group provided valuable assistance in securing the extradition of Babini. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.

A Massachusetts man pleaded guilty today engaging in sexual acts with three minors in Laos.

According to court documents, Michael Sebastian, 56, of Lynn, taught English to impoverished children in Laos. While teaching children there, Sebastian allowed certain students to live with him in his apartment, and they had to pay “dues.” Students who were unable to pay their dues performed “chores” around the house to earn credit towards their dues payments. One of the “chores” was giving Sebastian a massage while he was naked. Between May 2018 and September 2019, in the course of these massages, Sebastian engaged and attempted to engage in sexual acts with three minors who lived with him.

Sebastian pleaded guilty to three counts of engaging in illicit sexual conduct in a foreign place. He is scheduled to be sentenced on March 28, 2024, and faces a maximum penalty of 90 years in prison and lifetime supervised release. Additionally, he will be required to pay restitution to his victims and to register as a sex offender under the Sex Offender Registration and Notification Act. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Joshua S. Levy for the District of Massachusetts, Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division, and Special Agent in Charge Jodi Cohen of the FBI Boston Field Office made the announcement.

The FBI investigated the case, with assistance from the Department of State’s Diplomatic Security Service.

Trial Attorneys Nadia Prinz and Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Anne Paruti for the District of Massachusetts are prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

BOSTON – A Lynn man pleaded guilty today to sexually exploiting minors to whom he taught English in Laos.

Michael Sebastian, 56, pleaded guilty to three counts of engaging in illicit sexual conduct in foreign places. U.S. District Court Judge Denise J. Casper scheduled sentencing for March 28, 2024. Sebastian was arrested and charged in July 2020 following his return to the United States and subsequently indicted by a federal grand jury in August 2020.

According to the charging documents, Sebastian taught English to impoverished children in Laos. While teaching children there, Sebastian allowed certain students to live with him in his apartment. Students who were unable to pay for their living expenses performed “chores” around the house to earn credit towards their rent payments. One of the “chores” eligible for rent credit was to give Sebastian massages, during which Sebastian would be naked. As part of these massages, Sebastian required some students to touch his genitals and masturbate him in lieu of rent payment.

Between May 2018 and March 2020, Sebastian sexually abused three minor children who lived with him.

“Mr. Sebastian ingratiated himself into a position of trust and then manipulated his relationships to exploit vulnerable minors who sought refuge and education. His horrific conduct is a parent’s worst nightmare,” said Acting United States Attorney Joshua S. Levy. “Ensuring the safety of our children from an array of threats is an absolute top priority for this office. This case should send a resounding message to Americans in Massachusetts and beyond: predators will be identified, prosecuted and held accountable.”

“Teachers like Michael Sebastian who use their access to children for their own sexual gratification are both a danger and a disgrace. Today, Mr. Sebastian finally admitted to exploiting impoverished children in a foreign country and betraying their trust,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This case illustrates how the FBI will pursue justice beyond American borders to safeguard vulnerable victims from predators.”

The charge of engaging in illicit sexual conduct in foreign places provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes that govern the determination of a sentence in a criminal case.

Acting U.S. Attorney Levy; Nicole M. Argentieri, Acting Assistant Attorney General for the Justice Department’s Criminal Division; and FBI SAC Cohen made the announcement. This case was primarily investigated by the FBI's Legal Attache office in Bangkok, along with valuable assistance provided by the FBI's Child Exploitation Operational Unit and the Boston FBI’s Child Exploitation Human Trafficking Task Force. Assistant U.S. Attorney Anne Paruti, Project Safe Childhood Coordinator and Chief of the Office’s Major Crimes Unit, and Trial Attorneys Nadia Prinz and Eduardo Palomo of the Justice Department’s Child Exploitation and Obscenity Section are 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.

BOSTON – A Braintree man pleaded guilty today in connection with an elaborate money laundering conspiracy.

Chengzou Liu, 36, pleaded guilty to conspiracy to commit money laundering as well as possession with intent to distribute marijuana. U.S. District Court Judge Indira Talwani scheduled sentencing for April 24, 2024.

In July 2022, Liu was charged along with seven others in connection with elaborate money laundering and money transmitting conspiracies allegedly led by two of Liu’s co-conspirators Qiu Mei Zeng and Shi Rong Zhang.

According to the charging documents, Zeng and Zhang co-owned China Gourmet, a restaurant in Boston’s Chinatown neighborhood. Zhang was also a registered owner of Wonderful Electronics, an electronics and restaurant supply business based in Hanover. It is alleged that the defendants used these businesses to run a large-scale money laundering and money transmitting operation that involved the laundering of drug proceeds and proceeds from stolen and/or fraudulent gift cards.

Liu was a large-scale marijuana trafficker who laundered his drug proceeds through China Gourmet. On at least three occasions, Liu was observed delivering bags of cash that contained tens of thousands of dollars in drug proceeds to the restaurant, which then wired to accounts in the U.S. and China. Specifically, it is alleged that Liu delivered the bags of cash to Zeng, who then sent electronic transfers of these funds to various accounts in China provided by Liu. 

The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000 or twice the value of the property involved, whichever is greater. The charge of possession with intent to distribute marijuana provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of $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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; Boston Police Commissioner Michael Cox; Braintree Police Chief Tim Cohoon; and Quincy Police Chief Paul Keenan made the announcement today. Valuable assistance in the investigation was provided by the United States Postal Inspection Service. Assistant U.S. Attorneys Lauren A. Graber and Charles Dell’Anno of the Criminal Division are prosecuting the case.  

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

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