District of Massachusetts
Press releases recorded for this federal judicial district.
United States Attorney’s Office Honors Law Enforcement Personnel for Exceptional ServiceRead the Press Release
BOSTON – Acting United States Attorney Joshua S. Levy has announced the recipients of the 2023 Law Enforcement Awards. Over 100 federal, state and local law enforcement personnel and community leaders who have contributed to the success of federal cases during the 2022 calendar year are being recognized for their commitment to pursuing justice and public safety. Each year the U.S. Attorney in Massachusetts holds a formal ceremony to honor award recipients, which took place earlier today.
These awards recognize federal agents, state police, local police, investigators, analysts and community leaders for their leadership, collaboration, investigative achievement and excellence, victim assistance and distinction in community engagement. Honorees were nominated by the Assistant U.S. Attorneys who prosecuted the cases.
“Every successful investigation and prosecution in this office is a direct result of the outstanding work of these law enforcement professionals. Great police work rarely makes for flashy headlines, but my colleagues and I see the commitment and compassion of federal, state and local law enforcement officers every day. Their sole mission is to keep our communities safe, even when it means putting their own lives at risk. Today, we take this moment to thank them, and their families, for their sacrifices and commitment to public service,” said Acting U.S. Attorney Levy. “These awards reflect and honor only a small portion of the countless law enforcement professionals across the Commonwealth who serve and protect us every day.”
The category of Excellence in Community Outreach & Prevention recognizes individuals, or a team of individuals, who have shown outstanding commitment and/or innovation in the area of law enforcement and community outreach to include training, relationship building, prevention programs and other similar activities. The following programs and agencies were honored today:
Project Safe Neighborhoods “You Can Be Anything You Want to Be” Speaker Series
Agency/Organization of Recipient(s): Hampden County District Attorney’s Office; Holyoke Medical Center; Holyoke Police Department; University of Massachusetts Department of Communication DisordersProject Safe Childhood Training: Keeping Kids Safe and Secure Online
Agency/Organization of Recipient(s): Homeland Security InvestigationsThe category of Investigative Achievement is reserved for those who substantially contributed to the mission of the U.S. Attorney’s Office and the Department of Justice. The following cases and agencies will be honored:
U.S. v. Seth Bourget
Agency/Organization of Recipient(s): Department of Justice, Office of the Inspector GeneralU.S. v. Junior Melendez, et. al
Agency/Organization of Recipient(s): Bureau of Alcohol, Tobacco, Firearms & Explosives; Worcester Police DepartmentU.S. v. Dana Pullman, et. al
Agency/Organization of Recipient(s): Federal Bureau of Investigation; Internal Revenue Service, Criminal InvestigationsU.S. v. Binh Thanh Le, et. al
Agency/Organization of Recipient(s): U.S. Postal Inspection Service; Homeland Security Investigations; Massachusetts State PoliceThe category of Investigative Excellence recognizes an individual whose actions led directly to the arrest of a dangerous subject or to the exposure of a significant criminal conspiracy. The following case and agency will be honored:
U.S. v. Michael Cecchetelli, et. al
Agency/Organization of Recipient(s): Federal Bureau of InvestigationU.S. v. Ronald Hall
Agency/Organization of Recipient(s): Homeland Security Investigations; Massachusetts State Police; Cranston (R.I.) Police DepartmentThe category of Outstanding Collaborative Investigation recognizes investigators from a multi-agency collaboration whose exceptional efforts to overcome significant challenges led to a successful conclusion. The following cases and agencies will be honored:
U.S. v. Jammy Alphonse
Agency/Organization of Recipient(s): Boston Police Department; Department of Labor, Office of the Inspector General; Federal Bureau of Investigation; U.S. Secret ServiceU.S. v. Baystate Health
Agency/Organization of Recipient(s): U.S. Department of Health & Human Services, Office of Civil RightsU.S. v. Louis Coleman III
Agency/Organization of Recipient(s): Boston Police Department; Delaware State Police; Federal Bureau of Investigation; Wilmington (Del.) Police Department
U.S. v. Cristina Lopez, et. al
Agency/Organization of Recipient(s): Drug Enforcement Administration; Homeland Security Investigations; Massachusetts State Police; U.S. Attorney’s Office District of Massachusetts, Financial Analyst; U.S. Treasury Inspector General for Tax AdministrationU.S. v. Brian Orlandella
Agency/Organization of Recipient(s): Homeland Security Investigations; Port Neches (Texas) Police DepartmentThe category of Exceptional Contribution to a Federal Investigation/Prosecution will honor the following agencies:
Braintree Police K-9 Lucky
Agency/Organization of Recipient(s): Braintree Police Working Dog FoundationU.S. v. Cedric Cromwell, et. al
Agency/Organization of Recipient(s): Federal Bureau of Investigation; Internal Revenue Service, Criminal InvestigationsU.S. v. John Michael Rathbun
Agency/Organization of Recipient(s): East Longmeadow Police Department; Federal Bureau of Investigation; Longmeadow Fire Department; Longmeadow Police Department; Massachusetts State PoliceU.S. v. Antonio Santonastaso
Agency/Organization of Recipient(s): Department of Transportation, Office of the Inspector GeneralThe category of Victim Service will honor the following agencies:
U.S. v. Hassan Abbas
Agency/Organization of Recipient(s): Federal Bureau of InvestigationU.S. v. Bernadito Carvajal
Agency/Organization of Recipient(s): Andover Police Department; Drug Enforcement AdministrationShrewsbury Man Arrested for Child Pornography OffensesRead the Press Release
BOSTON – A mentor for the Shrewsbury High School Robotics Team was arrested today for allegedly possessing and transporting child pornography.
Brian Lingard, 60, of Shrewsbury was charged with transportation of and possession of child pornography. He was arrested this morning and will appear in federal court in Worcester at 3:45 p.m. today before U.S. District Court Magistrate Judge David H. Hennessy.
According to the complaint affidavit, on Oct. 19, 2023, Lingard flew from Paris to Boston. During a customs screening, it is alleged that Lingard was found to possess images depicting child sexual abuse material (CSAM) on his phone. A subsequent search of devices stored at Lingard’s residence revealed an additional collection of alleged CSAM.Data extracted from the SD card of Lingard’s phone allegedly revealed approximately 23 images of CSAM depicting minors who appear to be under 10 years old. At least two of the images depict minors who have previously been identified by the National Center for Missing and Exploited Children as child sexual abuse victims.
It is further alleged that the SD card also contained multiple images of fully clothed minor females who appear to be in a school setting. The images appear to have been taken surreptitiously and are focused on the buttocks of the minor females. A review of the metadata associated with these photos allegedly revealed that some were taken at Shrewsbury High School.
The charge of transportation of child pornography provides for a sentence of not less than five years and up to 20 years in prison, up to a lifetime of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison and up to a lifetime of supervised release and a fine of $250,000.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Michael McCarthy, Acting Director of Field Operations for U.S. Customs and Border Protection, Boston Field Office made the announcement today. Assistant U.S. Attorney Kristen Noto of the Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lawrence Man Pleads Guilty to Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence man pleaded guilty on Oct. 27, 2023 to his role in a trafficking fentanyl conspiracy.
Francis Manuel Santos Arias, 24, pleaded guilty to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute fentanyl and two counts of distribution and possession with intent to distribute fentanyl. U.S. District Judge Nathaniel M. Gorton scheduled sentencing for Jan. 31, 2024.
Arias was indicted by a federal grand jury along with Eddy Reyes Tejada in December 2022.
In January 2022, law enforcement received information that Arias and Tejada were looking for customers to whom they could distribute cocaine and fentanyl in the greater Boston and Lawrence areas. Over the course of the investigation, Arias sold fentanyl to cooperating witnesses on three separate occasions: 55 grams of fentanyl on Jan. 28, 2022; nearly 100 grams of fentanyl on March 7, 2022; and 460 grams of fentanyl on March 28, 2022.
On July 20, 2023, Tejada pleaded guilty to his role in the fentanyl trafficking conspiracy and is scheduled to be sentenced on Nov. 21, 2023.
The charges of conspiracy to distribute fentanyl and of distribution of fentanyl each provide for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
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 and Lunenburg Police Departments, U.S. Postal Inspection Service and Massachusetts State Police provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division is prosecuting the case.This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Drugmaker Nostrum and Its CEO Agree to Pay up to $50 Million to Settle False Claims Act Claims for Underpaying Rebates Owed Under Medicaid Drug Rebate ProgramRead the Press Release
Nostrum Laboratories Inc. (Nostrum), located in Missouri and New Jersey, and its founder and CEO, Nirmal Mulye, Ph.D. (Mulye), have agreed to pay a minimum of $3,825,000, and up to $50 million if certain financial contingencies are met, to resolve allegations that they violated the False Claims Act by knowingly underpaying Medicaid rebates due for Nostrum’s drug Nitrofurantoin Oral Suspension (Nitro OS). The settlement is based on Nostrum’s and Mulye’s financial condition.
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The statute requires manufacturers to pay inflation-based rebates for drugs, which are designed to insulate the Medicaid program from drug price increases that outpace inflation. These rebates are calculated by comparing the drug’s current price to the drug’s price on the date that the “dosage form and strength” of the drug was first marketed or 1990, whichever is later.
As part of the settlement, Nostrum and Mulye admitted that:
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Nostrum acquired Nitro OS from another manufacturer in December 2015 and continued to market the product pursuant to its preexisting FDA approval.
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In January 2018, Nostrum temporarily ceased manufacturing Nitro OS because the amount of lead in the product did not comply with updated 2018 FDA guidance. After modifying quantities of two inactive ingredients to reduce overall lead levels, Nostrum resumed manufacturing and marketing Nitro OS in August 2018. Nostrum characterized the relaunched version of Nitro OS as a “reformulation,” but Nostrum did not add or subtract any ingredients and the active ingredients remain unchanged. Nitro OS also remained in the same dosage form and strength as it did prior to 2018. Nostrum continues to market this version of Nitro OS under the same FDA Approval as the pre-2018 version and maintains that it is legal to do so because no major changes have been made to the drug.
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After relaunching Nitro OS in August 2018, Nostrum increased its price from $474.75 to $2,392.32 per bottle, which triggered significantly higher Medicaid Drug Rebate invoices from State Medicaid programs on account of the inflation-based rebate.
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Beginning with the fourth quarter of 2018 through the first quarter of 2020 (when Nostrum withdrew from the Medicaid Drug Rebate Program), Nostrum and Mulye did not pay these entire invoiced amounts, despite learning that the larger rebate invoices were tied to the price increase and inflation based rebate and being notified by Centers for Medicare & Medicaid Services (CMS) that it should pay the higher calculated amounts. Instead, and despite prior communications to FDA that no “major changes” had been made to Nitro OS, Nostrum wrote CMS arguing that, because this version of Nitro OS is actually a “new” drug, Nostrum should not have to pay rebates based upon the prior version’s applicable price.
The United States contends that, as a result of these actions, it has certain civil claims against Nostrum and Mulye from Oct. 1, 2018, through March 31, 2020, for knowingly failing to pay the required rebate amounts owed for Nitro OS as required by the Rebate Statute and Rebate Agreement and as invoiced by State Medicaid programs.
“The department is committed to ensuring that pharmaceutical manufacturers meet their obligations to taxpayer funded health care programs, which support elderly and vulnerable populations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As this settlement demonstrates, the department will hold accountable those who knowingly fail to satisfy these obligations.”
“The Medicaid program is a valuable safety net, providing health care to some of the most vulnerable Americans,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “By deliberately failing to pay appropriate rebates to Medicaid, Nostrum used that program to divert resources from those Americans in the hopes of generating profits. This office will not turn a blind eye to such flagrant abuse.”
“The Medicaid program provides medical treatment for some of our most vulnerable citizens, and when a drug company improperly circumvents rules designed to protect the Medicaid program from overpaying for prescription drugs, the American taxpayer pays the price,” said Special Agent in Charge Roberto Coviello of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “As illustrated by this settlement, pharmaceutical companies that disregard their obligation to play by the rules for financial gain will be held accountable for those actions.”
“Nostrum Laboratories reduced the amount that it paid to the Medicaid program by improperly calculating the rebates it owed, even after hiking the cost of one of their drugs by over 400%,” said Special Agent in Charge Jodi Cohen of the FBI Boston Field Office. “Today’s settlement is a win for taxpayers by ensuring that this pharmaceutical company cannot boost its bottom line at the expense of the Medicaid program and the vulnerable population it serves.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from HHS-OIG and the FBI.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The matter was investigated by Fraud Section Attorneys Augie Ripa and Michael Hoffman, and Assistant U.S. Attorney Evan Panich for the District of Massachusetts.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Settlement-
Drugmaker Nostrum and CEO Agree to Pay up to $50 Million to Resolve Claims of Underpaying Rebates Owed Under Medicaid Drug Rebate ProgramRead the Press Release
BOSTON – Nostrum Laboratories, Inc. (Nostrum), located in Missouri and New Jersey, and its founder and CEO Nirmal Mulye, Ph.D. (Mulye), have agreed to pay a minimum of $3,825,000 and up to $50 million if certain financial contingencies are met, to resolve allegations that they violated the False Claims Act by knowingly underpaying Medicaid rebates due for Nostrum’s drug Nitrofurantoin Oral Suspension (Nitro OS). The variable amount of the settlement is based on Nostrum’s and Mulye’s financial condition.
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The statute requires manufacturers to pay inflation-based rebates for drugs, which are designed to insulate the Medicaid program from drug price increases that outpace inflation. These rebates are calculated by comparing the drug’s current price to the drug’s price on the date that the “dosage form and strength” of the drug was first marketed or 1990, whichever is later.
As part of the settlement, Nostrum and Mulye admitted that:
- Nostrum acquired Nitro OS from another manufacturer in December 2015 and continued to market the product pursuant its preexisting FDA approval;
- In January 2018, Nostrum temporarily ceased manufacturing Nitro OS because the amount of lead in the product did not comply with updated 2018 FDA guidance. After modifying quantities of two inactive ingredients to reduce overall lead levels, Nostrum resumed manufacturing and marketing Nitro OS in August 2018. Nostrum characterized the relaunched version of Nitro OS as a “reformulation” but Nostrum did not add or subtract any ingredients and the active ingredients remain unchanged. Nitro OS also remained in the same dosage form and strength as it did prior to 2018. Nostrum continues to market this version of Nitro OS under the same FDA Approval as the pre-2018 version and maintains that it is legal to do so because no major changes have been made to the drug;
- After relaunching Nitro OS in August 2018, Nostrum increased its price from $474.75 to $2,392.32 per bottle, which triggered significantly higher Medicaid Drug Rebate invoices from the States on account of the inflation-based rebate and;
- Beginning with the fourth quarter of 2018 through the first quarter of 2020 (when Nostrum withdrew from the Medicaid Drug Rebate Program), Nostrum and Mulye did not pay these entire invoiced amounts, despite learning that the larger rebate invoices were tied to the price increase and inflation-based rebate and being notified by CMS that it should pay the higher calculated amounts. Instead, and despite prior communications to FDA that no “major changes” had been made to the drug, Nostrum wrote CMS arguing that it should not have to pay the inflation-based rebate because this version of Nitro OS is actually a “new” drug and therefore Nostrum should not have to pay rebates based upon the prior version’s applicable price.
The United States contends that, as a result of these actions, it has certain civil claims against Nostrum and Mulye from Oct. 1, 2018 through March 31, 2020 for failing to pay the required rebate amounts owed for Nitro OS as required by the Rebate Statute and Rebate Agreement and as invoiced by state Medicaid programs.
“The Medicaid program is a critical safety net, providing health care to some of the most vulnerable Americans. By deliberately failing to pay required rebates to Medicaid, Nostrum diverted resources from needy patients to generate more profits. This office will not turn a blind eye to such flagrant abuse and greed, especially when it involves patients and taxpayers,” said Acting United States Attorney Joshua S. Levy.
“The department is committed to ensuring that pharmaceutical manufacturers meet their obligations to taxpayer funded health care programs, which support elderly and vulnerable populations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “As this settlement demonstrates, the department will hold accountable those who knowingly fail to satisfy these obligations.”
“The Medicaid program provides medical treatment for some of our most vulnerable citizens, and when a drug company improperly circumvents rules designed to protect the Medicaid program from overpaying for prescription drugs, the American taxpayer pays the price,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “As illustrated by this settlement, pharmaceutical companies that disregard their obligation to play by the rules for financial gain will be held accountable for those actions.”
“Nostrum Laboratories reduced the amount it paid to the Medicaid program by improperly calculating the rebates it owed, even after hiking the cost of one of their drugs by over 400%,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s settlement is a win for taxpayers by ensuring that that this pharmaceutical company cannot boost its bottom line at the expense of the Medicaid program and the vulnerable population it serves.”
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 United States Attorney’s Office for the District of Massachusetts with assistance from HHS OIG and the FBI.
Tips and complaints about potential fraud, waste, abuse and
mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).Acting U.S. Attorney Levy; Principal Deputy AAG Boynton; HHS-OIG SAC Coviello; and FBI SAC Cohen made the announcement today. Assistant U.S. Attorney Evan Panich of the Affirmative Civil Enforcement Unit and Trial Attorneys Augustine Ripa and Michael Hoffman of the Justice Department’s Civil Division handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
"John Doe" Indicted for Aggravated Identity Theft in Connection with Fraud to Acquire Passport and PUA BenefitsRead the Press Release
BOSTON – A man whose true identity is unknown and who has been residing in Dorchester has been indicted for mail fraud, false statement in a passport application, misuse of a social security number and aggravated identity theft.
According to the charging documents, the defendant – referred to as John Doe – submitted an application for a passport using the name, date of birth and Social Security number of a victim. The passport was issued to John Doe. John Doe also used the victim’s name, date of birth and Social Security number to successfully apply for a Massachusetts driver’s license.
John Doe then allegedly used the victim’s identity to apply for Pandemic Unemployment Assistance (PUA) and received over $6,000 in PUA funds.
According to court documents, the victim has suffered garnishment of his wages for child support costs that John Doe has failed to pay.
The charge of misuse of a social security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. The charge of false statement in a passport application provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charges of mail fraud and wire fraud provides for a sentence of up to 20 years in prison, three years supervised release, and a fine of up to $250,000. The charge of aggravated identity theft calls for a mandatory minimum sentence of two years in prison to be added to the felony committed while using the means of identification of another without lawful authority. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement. The investigation was conducted by HSI’s Document and Benefit Fraud Task Force, 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. Assistant U.S. Attorney Brian J. Sullivan 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.
Former Attorney Convicted of Bribery SchemeRead the Press Release
A federal jury convicted a former attorney today of engaging in a scheme to bribe the chief of police of Medford, Massachusetts, to obtain approval for a client to sell recreational marijuana.
According to court documents and evidence presented at trial, Sean O’Donovan, 56, of Somerville, Massachusetts, paid a bribe to influence the Medford police chief in connection with O’Donovan’s client’s recreational marijuana business. In February 2021, O’Donovan approached Individual 1, a close relative of the chief, and offered to pay Individual 1 $25,000 to speak with the chief about his client’s anticipated application to sell recreational marijuana in Medford. At the time, the chief had recently been appointed to serve on a committee to rank such applications on behalf of Medford’s mayor, who would ultimately select three applicants to open retail marijuana stores in Medford. After Individual 1 informed the chief of O’Donovan’s corrupt offer, the chief immediately alerted federal authorities.
Over the course of the investigation, O’Donovan, believing he had an agreement with Individual 1 and the chief, offered to pay Individual 1 approximately $25,000 in exchange for the chief’s favorable action on his client’s application. Specifically, O’Donovan sought to have the chief favorably rank his client’s application and, separately, advised and pressured the mayor to select the client to open a retail marijuana store in Medford. O’Donovan was slated to receive a stream of income of at least $100,000 annually from his client’s marijuana business if its Medford application were successful. O’Donovan never informed his client of the bribery scheme with Individual 1.
The jury convicted O’Donovan of two counts of honest services wire fraud and one count of bribery concerning programs receiving federal funds. He is scheduled to be sentenced on Feb. 7, 2024, and faces a maximum penalty of 20 years in prison on each honest services wire fraud count and a maximum penalty of 10 years in prison on the federal funds bribery count. 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, Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI investigated the case.
Trial Attorney Jonathan E. Jacobson of the Criminal Divion’s Public Integrity Section and Assistant U.S. Attorney Kristina E. Barclay for the District of Massachusetts are prosecuting the case.
Former Attorney Convicted for Bribery SchemeRead the Press Release
BOSTON – A federal jury in Boston has convicted a former attorney today of engaging in a scheme to bribe the Chief of Police in Medford, Mass. to obtain approval for a client to sell recreational marijuana.
The jury convicted Sean O’Donovan, 56, of Somerville, Mass., of two counts of honest services wire fraud and one count of bribery concerning programs receiving federal funds. He is scheduled to be sentenced on Feb. 7, 2024.“Sean O’Donovan’s greed led him to engage in this old school bribery scheme to line his own pocket,” said Acting U.S. Attorney Joshua S. Levy. “His plot failed because of the unquestioned integrity of Medford Police Chief Jack Buckley and his brother. Upholding the rule of law and holding lawyers who break the law accountable is an essential priority of this office.”
“Today’s verdict proves that Sean O’Donovan went from practicing law to breaking it by engaging in a pay-to-play scheme in which he tried to capitalize on his insider access, in attempting to bribe the Medford Police Chief for his own financial gain. His actions were not only an affront to all the hard-working businesses that play by the rules, but a betrayal of his client’s and the community’s trust,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Rooting out public corruption is a top priority for the FBI, and we are extremely grateful to the Medford Police Chief and his relative who did not hesitate to do what was right by working with us to thwart this nefarious scheme.”
According to court documents and evidence presented at trial, O’Donovan paid a bribe to influence the Medford Police Chief in connection with O’Donovan’s client’s recreational marijuana business. In February 2021, O’Donovan approached Individual 1, a relative of the Chief, and offered to pay Individual 1 $25,000 to speak with the Chief about his client’s anticipated application to sell recreational marijuana in Medford. At the time, the Chief had recently been appointed to serve on a committee to rank such applications on behalf of Medford’s mayor, who would ultimately select three applicants to open retail marijuana stores in Medford. After Individual 1 informed the Chief of O’Donovan’s corrupt offer, the Chief immediately alerted federal authorities.
Over the course of the investigation, O’Donovan, believing he had an agreement with Individual 1 and the Chief, offered to pay Individual 1 approximately $25,000 in exchange for the Chief’s favorable action on his client’s application. Specifically, O’Donovan sought to have the Chief favorably rank his client’s application and, separately, advised and pressured the mayor to select the client to open a retail marijuana store in Medford. O’Donovan was slated to receive a stream of income of at least $100,000 annually from his client’s marijuana business if its Medford application were successful. O’Donovan never informed his client of the bribery scheme with Individual 1.
O’Donovan faces a maximum penalty of 20 years in prison on each honest services wire fraud count and a maximum penalty of 10 years in prison on the federal funds bribery count. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Levy; SAC Cohen; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement today.
Assistant U.S. Attorney Kristina E. Barclay with the Public Corruption Unit for the District of Massachusetts and Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and are prosecuting the case.
Psychiatrist Convicted of Billing Medicare and Private Insurance Companies for Services Never RenderedRead the Press Release
BOSTON – A Natick psychiatrist was convicted by a federal jury yesterday of billing Medicare and private insurance companies for over $11 million in treatments he did not provide and obstructing justice in an attempt to conceal his crimes.
Gustavo Kinrys, 52, of Wellesley, was convicted of seven counts of wire fraud, six counts of false statements relating to health care matters and one count of obstructing a criminal health care investigation. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 31, 2023. Kinrys was arrested and charged in December 2020.
“Dr. Kinrys shamelessly billed for over $11 million in treatment from Medicare and private insurers – treatments he never provided. He exploited our healthcare system and showed callous disregard for patient well-being,” said Acting United States Attorney Joshua S. Levy. “This conviction should send a stern message: healthcare fraud will not go unpunished, and those who exploit our vital healthcare system for personal gain will face the full extent of the law.”
“Through his scheme to defraud the Medicare program, the defendant stole taxpayer funds and violated the public’s trust in his position as a physician,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “This conviction sends a clear message that we will hold accountable those who exploit our federal health care system for personal gain, and we will not tolerate attempts to obstruct our pursuit of justice.”
“This conviction is a big win for taxpayers who were cheated when Dr. Kinrys fraudulently billed Medicare and private insurance companies for more than $11 million for medical treatments he never provided and then obstructed our investigation in an attempt to conceal his crimes,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Healthcare fraud is not a victimless crime. It can raise health insurance premiums, expose patients to unnecessary medical procedures, and increase taxes. Anyone involved in, or entertaining similar activity, should know the FBI and our partners will not hesitate to pursue those trying to steal from our country’s vital health care system.”
“This matter illustrates the commitment of all agencies to combat medical billing fraud which affects all citizens. The Insurance Fraud Bureau of Massachusetts places a high priority on fighting this type of insurance fraud. Our continuing collaboration with our partners is critical to successfully fight insurance fraud,” said Anthony M. DiPaolo, Executive Director of the Massachusetts Insurance Fraud Bureau.
Kinrys was a licensed psychiatrist who owned and operated Advanced TMS Associates, located in Natick, Mass. Among other services, Kinrys offered transcranial magnetic stimulation (TMS) therapy and psychotherapy to patients suffering from depression. TMS therapy is a noninvasive method of brain stimulation that uses rapidly alternating or pulsed magnetic fields to induce electrical currents directed at a patient’s cerebral cortex.
Between January 2015 and December 2018, Kinrys engaged in a variety of fraudulent billing schemes in which he sought and received reimbursement for services he did not render. For example, Kinrys billed Medicare and private insurers $10.6 million for thousands of TMS sessions he never provided, including over 8,000 sessions he claimed were provided to 74 patients who, in fact, never received a single session of the therapy. Kinrys billed Medicare and private insurers for hundreds of thousands of dollars’ worth of psychotherapy sessions he never provided, including over 900 face-to-face sessions he falsely claimed he provided while he was on vacation in locations like the Bahamas, Punta Cana, Dominican Republic, and the Czech Republic. On 382 occasions, Kinrys billed Medicare and private insurers for having provided more than 24 hours’ worth of psychotherapy services in a single day, including one day in July 2017 when he claimed he had provided hour-long psychotherapy sessions to 70 different patients – all while outside the United States on vacation.
To further his fraudulent billing scheme, Kinrys made numerous false statements to his patients, the billing company with which he worked and the insurers to whom he submitted claims seeking reimbursement. When Medicare, private insurers and the Department of Health and Human Services (HHS) sought records from Kinrys pertaining to certain of his claims, he took steps to conceal his fraudulent conduct by making false representations and creating false documentation purporting to show that he had provided thousands of treatments he had billed for, but never rendered. For example, in response to a July 2018 subpoena from the HHS’s Office of Inspector General seeking medical records for 10 of his patients, Kinrys created documents – and ordered his office workers to create documents – falsely stating that those patients had received dozens of treatments they had never been provided and falsely representing that the condition of those patients was improving.
The wire fraud charges 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, whichever is greater. The charges of false statements relating to health care matters and obstruction of a criminal investigation of a health care offense 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 U.S. Attorney Levy, HHS-OIG SAC Coviello, FBI Boston SAC Cohen and MA IFB Director DiPaolo made the announcement today. Assistant U.S. Attorneys Patrick M. Callahan and Christopher R. Looney of the Health Care Fraud Unit are prosecuting the case.
Notice to Potential Victims in Securities Fraud Case Involving Stocks ONPH & FPWMRead the Press Release
BOSTON – Joseph A. Padilla, of Carlsbad, Calif. and Cabo San Lucas, Mexico, pleaded guilty in federal court in Boston in August 2023 to his involvement as the principal stock trader in a sophisticated securities fraud scheme involving stock in the companies Oncology Pharma, Inc. (ticker symbol ONPH) and Charlestowne Premium Beverages Inc. (ticker symbol FPWM). Individuals who believe they may be potential victims of the scheme are encouraged to reach out to the U.S. Attorney’s Office in the District of Massachusetts.
Between in or about January and July 2021, Oncology Pharma, Inc. was a thinly traded company that traded on the over-the-counter securities market. In January 2021, Padilla engaged in manipulative trading in ONPH designed, at least in part, to artificially drive up the company’s stock price. Thereafter, Padilla facilitated the sale of approximately three million ONPH shares – which were under undisclosed common control – to investors during a promotional campaign.
Between January 2020 and April 2021, Padilla participated in a similar scheme involving the shares of Charlestowne Premium Beverages Inc., a thinly traded company that traded on the over-the-counter market. Padilla similarly orchestrated an effort designed, at least in part, to artificially increase Charlestowne’s stock price and then facilitated the sale of millions of Charlestowne’s shares during a promotional campaign.Individuals who traded in ONPH and/or FPWM during the time periods indicated above, and who believe that they may be potential victims of this fraud, should contact the U.S. Attorney’s Office at [email protected]. In the email, please indicate the security traded and the transaction details for the trade(s): date(s), number of shares, price, whether it was bought or sold and an assessment of gains or losses. Please indicate whether there is supporting documentation and a representative from the government will assist you in transferring it in a secure manner, as well as contact you with additional verification questions.
Email submissions are due by Dec. 1, 2023. For more information, visit the U.S. Attorney’s Office website: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/united-states-v-padilla-et-al
Padilla is scheduled for sentencing on Nov. 1, 2023, at 3:00 pm in U.S. District Court in Boston, Courtroom 21, One Courthouse Way, Boston, Mass.
Padilla’s co-defendant, Kevin C. Dills, has pleaded not guilty and is scheduled for trial on Feb. 12, 2024, in in U.S. District Court in Boston, One Courthouse Way, Boston, Mass. Dills is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maine Recidivist Sex Offender Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A recidivist sex offender was sentenced yesterday in federal court in Boston for failing to register as a sex offender when he moved from Haverhill, Mass. to Fryeburg, Maine.
Frank Boyd, 54, was sentenced by U.S. Senior District Court Judge William G. Young to two years in prison and five years of supervised release. On March 27, 2023, Boyd pleaded guilty to one count of failure to register as a sex offender, in violation of the Sex Offender Registration and Notification Act. Boyd was charged by complaint in August 2022 and subsequently indicted by a federal grand jury in September 2022. He has remained in state custody on unrelated charges since his arrest in July 2022.
Boyd was a Level 3 Sex Offender who had been convicted of sex offenses against children in 2001 and 2009 and was required to register as a sex offender and update his registration any time he moved or changed employment.
In 2020, Boyd registered and listed a Haverhill, Mass. address as his residence. On or around March 23, 2021, it was determined that Boyd was no longer living at the Haverhill residence he had listed on his registration form and was found to have moved to Fryeburg, Maine. He did not register as a sex offender in Maine nor update his sex offender registration in Massachusetts at any point prior to his arrest on state charges on July 27, 2022. Boyd has three prior state court convictions in 2006, 2008 and 2015 for failure to register as a sex offender.Acting United States Attorney Joshua S. Levy; Brian Kyes, U.S. Marshal for the District of Massachusetts; and Kevin Neal, Acting U.S. Marshal for the District of Maine made the announcement today. The Haverhill and Fryeburg (Maine) Police Departments provided valuable assistance. Assistant U.S. Attorney Elianna J. Nuzum of the Major Crimes Unit prosecuted the case.
Lawrence Man Pleads Guilty in Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence man pleaded guilty yesterday in federal court in Boston to his role in a fentanyl trafficking conspiracy.
Melvin Antonio Perez Medina, 33, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue; two counts of distribution and possession with intent to distribute 40 grams or more of fentanyl; one count of distribution and possession with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue; and one count of possession with intent to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Jan. 18, 2024.
Perez Medina was indicted by a federal grand jury in November 2022 along with alleged co-conspirators Fraily Rodriguez Morillo and Manuel Fredis Guerrero Guzman.
According to court documents, between March 2022 and August 2022 Perez Medina, and allegedly, Morillo and Guzman conspired to distribute fentanyl and a fentanyl analogue in and around the Lawrence, Woburn, Wilmington and Andover areas. As part of the conspiracy, Perez Medina distributed fentanyl on three separate occasions during the summer of 2022. At the time of Perez Medina’s arrest in August 2022, he was found in possession of nearly two kilograms of a mixture containing fentanyl and a fentanyl analogue concealed inside of a cereal box.
The charges of conspiracy to distribute 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue, and of possession with intent to distribute and/or distribution of 400 grams or more of fentanyl and 100 grams or more of a fentanyl analogue, provide for a sentence of at least 10 years and no greater than life, at least five years of supervised release and a fine of up to $10,000,000. The charge of distribution and/or possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years in prison and no greater than 40 years in prison, at least four years of supervised release and a fine of up to $5,000,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance in the investigation was provided by the Massachusetts Department of Correction; the Norfolk County Sheriff’s Office; and the Concord, Hudson, Peabody, Reading, Waltham and Watertown Police Departments. Assistant U.S. Attorney Alathea Porter of the Criminal Division is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Four Charged with Fentanyl and Cocaine Trafficking ConspiracyRead the Press Release
BOSTON – Four individuals have been indicted by a federal grand jury for their alleged roles in a large-scale drug trafficking conspiracy that distributed fentanyl and cocaine in and around the Quincy and Weymouth areas.
The following individuals were charged in a nine-count second superseding indictment with conspiracy to distribute and possess with intent to distribute cocaine, fentanyl and fentanyl analogue: Aderito Patrick Amado, 33, of Brockton; Erica Vieira, 26, of Brockton; Neylton Fontes, 35, of New Bedford; and Chaasad Cyprien, 23, of Oxford.
The defendants were initially indicted by a federal grand jury in September 2022 and subsequently charged in a first superseding indictment in December 2022.
According to the charging documents, Amado, Vieira, Fontes and Cyprien participated in a conspiracy to distribute certain quantities of fentanyl, fentanyl analogue and cocaine in and around Quincy and Weymouth until at least January 2021. All face charges of possessing with intent to distribute controlled substances, including fentanyl, cocaine, or fentanyl analogue. Amado is also charged with possessing firearms in furtherance of a drug crime. Due to a previous felony conviction, Amado is prohibited from possessing a firearm and ammunition.
The charge of possession with intent to distribute 400 grams or more of fentanyl, 100 grams or more of a fentanyl analogue, or conspiracy to do the same, provides for a mandatory minimum sentence of 10 years up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charge of possession with intent to distribute 40 grams or more of fentanyl or 500 grams or more of cocaine, or conspiracy to do the same, provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. The charge of possession with intent to distribute cocaine or fentanyl, or conspiracy to do the same, 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 possessing a firearm and ammunition as a convicted felon provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Each charge of possessing a firearm in furtherance of a drug offense provides for a sentence of at least five years and up to life in prison, to be served from and after the term of imprisonment imposed for any other count, up to five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance in the investigation was provided by the Weymouth and Quincy Police Departments. Assistant U.S. Attorney Kaitlin R. O’Donnell of the Organized Crime & Gang Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tewksbury Man Sentenced to Five Years in Prison for Bank RobberyRead the Press Release
BOSTON – A Tewksbury man was sentenced in federal court in Boston for the September 2020 robbery of a Santander Bank branch in Tewksbury.
Nicholas O’Neil, 40, was sentenced by U.S. Senior District Judge William G. Young to five years in prison and three years of supervised release. In February 2023, O’Neil pleaded guilty to one count of bank robbery.
Just before 10 a.m. on Sept. 22, 2020, an individual – later identified as O’Neil – entered a Santander Bank branch in Tewksbury, handed the teller a demand note and a red cloth bag. After obtaining cash from the teller, O’Neill exited the bank and sped away in a white pickup truck which was reported to police by a banking customer who had observed the robbery and followed the vehicle. The pickup truck was located a short time later and O’Neil was arrested without incident. The red cloth bag containing the stolen cash and demand note was found inside the vehicle.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Tewksbury Police Chief Ryan M. Columbus made the announcement today. Assistant U.S. Attorneys Benjamin Tolkoff and John J. Reynolds III of the Criminal Division prosecuted the case.
Lawrence Man Sentenced for Possessing Fentanyl Intended for DistributionRead the Press Release
BOSTON – A Lawrence man was sentenced on Oct. 20, 2023 for attempting to distribute fentanyl while already on pretrial release for a separate fentanyl offense.
Anyelo Aybar-Franco, 25, was sentenced by U.S. District Court Judge Indira Talwani to time served (three years in prison) and three years of supervised release. On July 21, 2023, Aybar-Franco pleaded guilty to one count of possession with intent to distribute more than 40 grams of fentanyl.
Aybar-Franco was arrested in Lawrence in October 2020 after he was observed attempting to conduct a hand-to-hand drug deal. During the arrest, over 65 grams of fentanyl was seized from Aybar-Franco’s person.
At the time of the conduct, Aybar-Franco was on state pretrial release for a separate fentanyl distribution offense he was charged with just two months prior.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division made the announcement today. Valuable assistance was provided by the Essex County Sheriff’s Department, Homeland Security Investigations in Boston and the Lawrence Police Department. Assistant U.S. Attorney Charles Dell’Anno of the Narcotics & Money Laundering Unit prosecuted the case.
Member of Catalytic Converter Theft Crew Pleads GuiltyRead the Press Release
BOSTON – A Springfield man pleaded guilty yesterday in federal court in Boston to his role in a regional organized theft crew that stole catalytic converters from over 490 vehicles. It is alleged that the crew stole from ATMs and jewelry stores.
Santo Feliberty, 34, pleaded guilty to conspiracy to transport stolen property in interstate commerce; two counts of interstate transportation of stolen property; conspiracy to commit bank theft; bank theft; and being a felon in possession of a firearm and ammunition. The firearm charge arises from a pistol and ammunition found during the search of Feliberty’s residence as part of the catalytic converter theft investigation. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 31, 2024
Feliberty and six other men were arrested on April 12, 2023, and charged with offenses related to the theft, transportation and sale of stolen catalytic converters taken from over 490 vehicles during 2022 and 2023.
Catalytic converter theft has become a nationwide problem across a multitude of state, local, and federal jurisdictions due to the high-valued precious metals they contain – some of which are more valuable than gold, with black-market prices being more than $1,000 each in recent years. The theft of a vehicle’s catalytic converter results in damage that renders the vehicle inoperable – both mechanically and legally under EPA regulations – until properly replaced.
Feliberty was a member of an organized crew that stole catalytic converters from at least 492 vehicles across Massachusetts and New Hampshire in 2022 and 2023 alone. It is believed that a significant number of additional thefts have not been identified or were not ever reported to law enforcement, however. According to court documents, the crew was skilled and able to locate and cut away the catalytic converter from a vehicle within a minute in most instances – often utilizing battery operated power-tools, car jacks. It is alleged that, on numerous occasions, the defendants targeted more than 10 vehicles in a single night, with one night reporting thefts from 26 vehicles.
It is alleged that the crew was led by Rafael Davila, who engaged in catalytic converter thefts and burglaries on a full-time basis – committing thefts multiple nights per week for upwards of eight hours a night. Rafael Davila was allegedly responsible for the planning of and transportation to each targeted theft – using his vehicle, determining price values for stolen converters and purchasing needed materials. It is further alleged that he maintained meticulous notes accounting for the locations that he and his co-conspirators had targeted and the number of catalytic converters that had been stolen, including the makes and models and when they were dropped off.
During the plea hearing, Feliberty admitted to participating in thefts of catalytic converters from 52 vehicles across eight cities and towns in Massachusetts and New Hampshire.
Once in possession of the stolen catalytic converters, the crew would then sell them to Jose Torres, who would accumulate stolen catalytic converters from multiple theft crews and then in turn sell them to scrap dealers in the Northeast – transacting approximately $30,000 to $80,000 in stolen catalytic converters per week. Torres then sold stolen catalytic converters to scrap dealers who have since been charged federally for interstate transportation of stolen property and money laundering in the District of Connecticut, the Eastern District of California and Northern District of Oklahoma.
In addition to the catalytic converter thefts, Feliberty pleaded guilty to conspiring to steal from ATMs of federally insured banks in Massachusetts on three separate occasions in December 2022. It is alleged that this conspiracy involved the use of stolen trucks to rip the ATMs from the ground and gain access to the vault.
Feliberty also admitted to committing burglaries of two New Hampshire jewelry stores on Jan. 12, 2023, and the theft of a trailer on Dec. 14, 2022. The combined total value of the jewelry stolen during the burglaries was determined to be over $137,000, with each store facing approximately $10,000 in costs to repair the resulting damage.
Additionally, a firearm and ammunition were found at Feliberty’s residence. Feliberty is prohibited from possessing firearms and ammunition due to prior felony convictions.
On May 17, 2023, Torres pleaded guilty to his role in the catalytic converter theft conspiracy and is scheduled to be sentenced on Dec. 14, 2023. On May 24, 2023, Oyola pleaded guilty to the ATM and jewelry store burglaries and will be sentenced at a later date. On March 13, 2023, Nicolas Davila pleaded guilty and will be sentenced on January 9, 2024. Charges against Rafael Davila, Carlos Fonseca and Zachary Marshall are pending and they are presumed innocent until proven guilty.
The charge of conspiracy to transport stolen property in interstate commerce provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of interstate transportation of stolen property each provide for a sentence of up to 10 years, up to three years of supervised release and a fine of up to $250,000. The charge of conspiracy to commit bank theft provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of bank theft provides for a sentence of up to 10 years, up to three years of supervised release and a fine of up to $250,000. The charge of being a felon in possession of a firearm and ammunition provides for up to 10 years, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Kevin Gallagher, Director of Operations for the National Insurance Crime Bureau, Northeast Region made the announcement today. Valuable assistance was also provided by the United States Attorney’s Offices for the District of Connecticut, the Northern District of Oklahoma and the Eastern District of California; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the New England State Police Information Network (NESPIN). Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
Over 70 local police departments in Massachusetts, New Hampshire and Connecticut contributed to this investigation through the submission of their investigations of catalytic converter thefts in their jurisdiction. The Massachusetts police departments contributing to the investigation were Abington, Acton, Andover, Auburn, Bedford, Bellingham, Beverly, Billerica, Burlington, Bridgewater, Canton, Carver, Chelmsford, Concord, Cranston, East Hampton, Easton, Fitchburg, Framingham, Franklin, Gardner, Hampton, Hanover, Haverhill, Hingham, Holliston, Holyoke, Hudson, Ipswich, Lawrence, Leominster, Lynn, Malden, Mansfield, Medford, Marlborough, Methuen, Middleton, Milford, Millbury, Needham, Newton, Northborough, Norwell, Norwood, Peabody, Pembroke, Plymouth, Randolph, Rockland, Sharon, Shrewsbury, Springfield, Sterling, Sturbridge, Sudbury, Tyngsborough, Walpole, Waltham, Watertown, West Bridgewater, Weymouth, Wilmington, Woburn and Worcester. The Bow, Concord, Derry, Hooksett, Hudson, Londonderry, Manchester, Salem and Windham New Hampshire police departments also contributed. The South Windsor and Windsor Connecticut Police Departments also contributed to the investigation.
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.
Malden Man Pleads Guilty to Trafficking Fentanyl and MethamphetamineRead the Press Release
BOSTON – A Malden man has pleaded guilty in federal court in Boston to trafficking fentanyl and methamphetamine disguised as Adderall, Xanax or oxycodone in and around the Malden area.
Matthew Ramos, 26, pleaded guilty on Oct. 17, 2023 to one count of distribution of and possession with intent to distribute 50 grams or more of methamphetamine, 40 grams or more of fentanyl and other controlled substances. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Jan. 18, 2024. Under the terms of Ramos’ plea agreement, he faces a sentence of 90 months in prison.
Ramos was indicted by a federal grand jury in December 2021 along with co-defendant Igor Desouza. A search of the defendants’ residence on May 25, 2021 resulted in the recovery of a firearm, over 200 rounds of ammunition, black tar heroin, MDMA crystals, cocaine, doses of LSD and nearly 10,000 pills that include thousands of methamphetamine pills pressed to resemble Adderall or Xanax; thousands of fentanyl pills (some mixed with xylazine) pressed to resemble oxycodone; thousands of MDMA tablets; amphetamines; and oxycodone.
Desouza pleaded guilty on Aug. 31, 2023 and is scheduled to be sentenced on Dec. 1, 2023.
The charge of distribution of and possession with intent to distribute 50 grams or more of methamphetamine, 40 grams or more of fentanyl and other controlled substances provides for a sentence of at least five years and up to 40 years in prison, four years and up to life of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
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 today. Special assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; the Malden Police Department; and the Middlesex District Attorney’s Office. Assistant U.S. Attorney Lindsey E. Weinstein of the Narcotics & Money Laundering Unit is prosecuting the case.
Loan Brokers and Bank Loan Officer Sentenced for Bank Fraud SchemeRead the Press Release
BOSTON – Two operators of a loan brokerage business and a loan officer at a Massachusetts-based bank were sentenced today for conspiring to defraud a bank and the U.S. Small Business Administration (SBA).
Ted Capodilupo, 58, of South Easton; Joseph Masci, 72, of Boston; and Brian Ferris, 45, of Braintree, were each sentenced by U.S. Senior District Court Judge Mark L. Wolf to one year and one day in prison and two years of supervised release. Additionally, Capodilupo and Masci were each ordered to pay restitution of $1,424,087 and Ferris was ordered to pay restitution of $1,236,251. The defendants previously pleaded guilty to one count each of conspiracy to commit bank fraud.
Between 2015 and 2018, Capodilupo, Masci and Ferris agreed to defraud a bank and the SBA by submitting fraudulent loan applications to the bank, which administered the SBA’s small business express loan program, to secure bank loans guaranteed by the SBA. Specifically, Capodilupo and Masci submitted dozens of fraudulent loan applications on behalf of borrowers who were ineligible for traditional business loans. These loan applications misrepresented, among other things, the identity of the real loan recipients and the businesses for which the loans were sought.
Capodilupo and Masci also falsified applicant signatures and falsely indicated that no broker had assisted in preparing or referring the loan applications, when they in fact charged borrowers excessive fees for obtaining these fraudulent loans. Ferris, who worked as a loan officer at the bank, processed the fraudulent loan applications and in some cases fabricated federal tax forms in support of the applications. Ferris caused the bank to issue loans for which Capodilupo and Masci submitted applications and received a kickback from Capodilupo and Masci of approximately $500 per loan. The scheme generated approximately $270,000 in fees for Capodilupo and Masci. Many of the loans that the bank issued as a result of the fraudulent applications ultimately defaulted, resulting in substantial losses to the bank.
Acting United States Attorney Joshua S. Levy; Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), New York Region; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Brian Tucker, Special Agent-in-Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection; and Amaleka McCall-Brathwaite, Special Agent in Charge of SBA OIG’s Eastern Region made the announcement. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Florida Man Convicted of Stealing Sports Camp Tuition Funds from 303 FamiliesRead the Press Release
BOSTON – A Florida man was convicted yesterday by a federal jury in Boston for stealing tuition and deposits from families in Boston, and across the country, who planned to send children to sports camps in the Boston area in July and August 2019.
Mehdi Belhassan, 53, of Tampa, Fla., was convicted following a six-day jury trial of two counts of wire fraud. U.S. Senior District Court Judge William G. Young scheduled sentencing for Jan. 11, 2024. Belhassan was arrested and charged in March 2021.
Beginning in the fall of 2018, Belhassan falsely claimed that he would operate his annual MB Sports Camps at a Boston-area college. Later, Belhassan announced that the camps would occur at a Boston-area university. Based on these representations, Belhassan collected tuition and deposit payments totaling over $380,000 from at least 303 families in Massachusetts and across the United States, as well as advance payments of $191,000 from an online payment company and a commercial finance company. As part of his scheme, Belhassan provided the lender with a fraudulent contract with the college that contained the forged signature of a college administrator.
“Mr. Belhassan preyed upon the trust of families, promising summer fun while plotting his own indulgence. He lured in, deceived and betrayed over 300 families – diverting hundreds of thousands of dollars not to the promised camps, but to personal pursuits like plastic surgery and extravagant vacations at Las Vegas casinos,” said Acting United States Attorney Joshua S. Levy. “Today's verdict is a testament to our office’s unwavering commitment to ensuring that those who exploit trust for personal gain are held accountable.”
“Mehdi Belhassan stole tens of thousands of dollars from hundreds of hard-working families across the country without a second thought, and with today’s conviction, he has been held accountable for lining his own pockets at their expense,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “During these challenging times, financial fraudsters are doing everything they can to cheat people out of their hard-earned money, while the FBI is doing everything we can to make sure they don’t succeed.”
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Levy and FBI SAC Cohen made the announcement. Assistant U.S. Attorney Kriss Basil and Alathea E. Porter of the Criminal Division are prosecuting the case.
Bronx Man Pleads Guilty to Sexually Exploiting MinorRead the Press Release
BOSTON – A Bronx, N.Y. man pleaded guilty today in federal court in Boston to coercing a minor to engage in sexually explicit conduct for the purpose of producing child pornography, as well as traveling with the intent to engage in illicit conduct with the minor victim.
Markell Greene, 27, pleaded guilty to one count of sexual exploitation of a minor and one count of travel with intent to engage in illicit conduct. U.S. District Court Judge Patti B. Saris scheduled sentencing for Feb. 15, 2024. Greene was initially arrested on state warrants in February 2022 and indicted by a federal grand jury in November 2022. He has remained in custody since.
Greene persuaded, enticed and coerced a minor to engage in sexually explicit conduct for the purpose of producing child pornography. Additionally, on or about Feb. 14, 2022, Greene traveled in interstate commerce with a motivating purpose of engaging in illicit sexual conduct with the minor victim.
In late 2021, Greene sent an unsolicited Snapchat message to the then-12-year-old minor victim, who believed Greene to be approximately 16 years old. Over the course of several months, Greene manipulated the minor victim into sending sexually explicit photos and videos of herself at his request. Greene also directed the minor victim to brag about her age during the sexually explicit videos.
In February 2022, Greene persuaded the minor victim to meet him in-person at a parking lot in Arlington. On Feb. 14, 2022, Greene arrived to the agreed upon meet up in an SUV, picked up the minor victim and parked the car in an adjacent parking lot. There, Greene raped the minor victim and forced her to engage in oral sex, which he recorded on Snapchat.
“Mr. Greene is a serious danger to our communities. Under the cloak of social media anonymity, he targeted, exploited and violated the innocence of a vulnerable child. His conduct was beyond despicable and I commend the incredible bravery of the victim for coming forward. Today, this predator now stands as a convicted felon who now faces more than a decade in federal prison for his reprehensible conduct,” said Acting United States Attorney Joshua S. Levy. “There is no higher priority for this Office and our law enforcement partners than protecting children. This case is a stark reminder of the evil that exists in our society. Make no mistake about it, if you prey on children in this District we will spare no resource to ensure our children are safe from harm and hold dangerous offenders accountable.”
“What Markell Greene admitted to doing today to this 12-year-old child was heinous, and his actions will have untold ramifications on this brave victim’s life for years to come,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Every day, FBI Boston’s Child Exploitation – Human Trafficking Task Force is working hard to protect our most vulnerable by identifying and apprehending predators like Greene who take advantage of their innocence to commit atrocious acts.”
The charge of sexual exploitation of children provides for a mandatory minimum sentence of 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 $250,000. The charge of travel with intent to engage in illicit conduct provides for a sentence of up to 30 years in prison, at least five years and up to a lifetime 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.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Valuable assistance was provided by the Arlington, Mass. and New York City Police Departments; the Middlesex County District Attorney’s Office; and the Federal Bureau of Investigation, New York Field Office. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Mexican Man Residing in Westford Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Mexican man pleaded guilty today in federal court in Boston to unlawfully reentering the United States after deportation.
Pedro Romo-Gonzalez, 42, pleaded guilty to unlawful reentry of a deported alien before U.S. District Court Judge Richard G. Stearns, who scheduled sentencing for Dec. 19, 2023. Romo-Gonzalez was indicted by a federal grand jury in June 2023.
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 presence in Massachusetts after he was arrested on unrelated state charges.
The charge of unlawful reentry of a deported alien provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; 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 is prosecuting the case.
Medford Contractor Sentenced for Tax Evasion and Filing False Loan ApplicationsRead the Press Release
BOSTON – The owner of a local excavation and plowing company was sentenced today in connection with a multi-year scheme to underreport income on his tax returns and to obtain loans based on false loan applications.
Peter Tufts, 55, of Medford, was sentenced by U.S. District Court Judge Allison D. Burroughs to two years of supervised release and 240 hours of community service. Tufts was also ordered to pay a $50,000 fine, forfeiture of $450,000 and restitution of $551,941. On July 13, 2023, Tufts pleaded guilty to one count of tax evasion and two counts of submitting false loan applications.
Tufts is the owner of Tufts Construction, Inc., a construction company in Everett. For tax years 2015 through 2021, Tufts cashed check payments from customers and did not report the income from those checks in his tax filings, resulting in an income tax loss of more than $465,000. Instead, Tufts used the proceeds of his income tax evasion scheme to fund an off-the-books, under-the-table cash payroll that he used to avoid employment taxes, causing a payroll tax loss of more than $539,000.
Additionally, while perpetrating his tax evasion scheme, Tufts obtained loans from a local community bank and from the Small Business Administration (SBA) based on false loan applications. In his loan applications, and associated loan documents, Tufts falsely told the bank and the SBA that he had never declared bankruptcy, owed no back taxes, and was not involved in litigation. In fact, Tufts was involved in ongoing bankruptcy proceedings when he obtained his loans and was engaging in a multi-year income and employment tax evasion scheme.
Acting United States Attorney Joshua S. Levy; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Ketty Larco-Ward, Inspector in Charge of the United States Postal Inspection Service in Boston made the announcement today. The United States Postal Inspection Service, Office of the Inspector General; the United States Department of Labor, Office of Inspector General; the Massachusetts Department of Revenue, Criminal Investigations Bureau; and the Massachusetts Office of the Inspector General provided valuable assistance. Assistant U.S. Attorneys Kriss Basil and James R. Drabick of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Lawrence Man Sentenced for Disaster Fund Fraud SchemeRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for using stolen identities to fraudulently obtain over $450,000 in Economic Injury Disaster Loan funds from the Small Business Administration (SBA) and to launder the funds.
Darwyn Joseph, 26, was sentenced by U.S. District Court Judge Richard G. Stearns to two years and one day in prison and three years of supervised release. On July 12, 2023, Joseph pleaded guilty to one count of conspiracy to commit wire fraud and four counts of wire fraud and aiding and abetting. Joseph was arrested and charged by criminal complaint in December 2020 along with co-conspirator Ramon Joseph Cruz, Jr. The defendants were subsequently indicted by a federal grand jury in January 2021.Between approximately April and December 2020, Joseph and Cruz were involved in a conspiracy to use stolen identity information of United States citizens to apply for SBA Economic Injury Disaster Loans. Specifically, Joseph and Cruz used stolen identity information of U.S. citizens with high credit scores to open fraudulent bank accounts which were then linked to other fraudulent bank accounts set up to receive the SBA funds. Joseph and Cruz also received some of the debit cards associated with fraudulent bank accounts into which SBA funds were deposited, and then laundered those funds by using them to purchase large numbers of iPhones for re-sale. Joseph and Cruz also wired a portion of the funds to the Dominican Republic in furtherance of the scheme.
Over $452,000 in SBA funds were fraudulently obtained in connection with this scheme. Approximately $250,000 of this money was used to purchase iPhones in Massachusetts and New Hampshire.On Aug. 30, 2023, Cruz was sentenced to two years and one day in prison and three years of supervised release after previously pleading guilty to his role in the conspiracy.
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. Assistant U.S. Attorneys Elianna Nuzum and Adam Deitch of the Criminal Division prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.Drug Trafficker Sentenced for Cocaine TraffickingRead the Press Release
BOSTON – A drug trafficker operating in the Boston area was sentenced yesterday for his role in a cocaine trafficking conspiracy.
Maurice Coates, 46, of Randolph, was sentenced by U.S. District Court Judge Richard G. Stearns to eight years in prison to be followed by four years of supervised release. On April 18, 2023, Coats pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine.In June 2020, Coates was charged along with 23 others as part of Operation Snowfall. According to the charging documents, beginning in November 2018, law enforcement conducted an investigation into drug trafficking activities by Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown. Coates is the 16th defendant to plead guilty in that case.Coates was identified as a significant drug supplier and distributor within the drug conspiracy, during which it is estimated he distributed over 500 grams of cocaine. During intercepted calls with co-defendant Kenji Drayton, Coates used drug-coded language to discuss their drug supply needs and to coordinate drug deal meetups. Coates was one of Drayton’s main cocaine suppliers, including during the pandemic. At times, Drayton and Coates’s coded communications were corroborated by surveillance, including a surveilled meetup between Coates and Drayton for a suspected drug deal. After their suspected deal, law enforcement intercepted communications of co-defendants Drayton and Jarmina Kallon coordinating a meeting. Following their meeting, law enforcement stopped Kallon and recovered approximately 62 grams of cocaine.
One remaining defendant in the case has pleaded not guilty and is pending trial. Another defendant, Derek Hart, remains at large. On Sept. 28, 2022, Drayton was sentenced to five years in prison and four years of supervised release.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Brian Kyes, U.S. Marshal for the District of Massachusetts; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; and Boston Police Commissioner Michael Cox made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rutland Man Pleads Guilty to Conspiring to Access Protected Computer Network of Medical Treatment ProviderRead the Press Release
BOSTON – A Rutland man pleaded guilty today in federal court in Worcester to conspiring to access a protected computer of his former employer – a non-profit substance use and mental health treatment provider that operates recovery centers throughout Massachusetts.
Nathan Howe, 42, pleaded guilty to one count of conspiracy to commit wire fraud, three counts of wire fraud, one count of conspiracy to access a protected computer to obtain information and cause damage and one count of intentionally causing damage to a protected computer and impairing medical treatment. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for Jan. 17, 2024.
Howe was indicted by a federal grand jury in April 2023. Co-conspirator Patrick Edmonds-Morin has since pleaded guilty and is scheduled to be sentenced Dec. 13, 2023.
Howe and Edmonds-Morin were employed by the non-profit until April 2021 and October 2020, respectively. Between September and December of 2021, Howe conspired with Edmonds-Morin to access records of the non-profit’s employees, listen to and view conversations between the employees, and create and deploy a computer program designed to impede the non-profit’s use of the network. In November 2021, Howe accessed the computer network and transmitted a command that shut down the network for the non-profit’s Westborough campus where individuals were receiving in-patient treatment. By shutting down the network, Howe made the non-profit’s electronic medical records system inaccessible at its sites across Massachusetts, impairing or potentially impairing the medical examination, diagnosis, treatment and care of patients.
Additionally, between July 2018 and November 2020, Howe and Edmonds-Morin conspired to commit wire fraud by obtaining cell phones from a cell phone provider which were intended for the non-profit’s staff and, instead, selling the cell phones to third parties for personal profit, typically in the amounts of hundreds of dollars per phone.
“In the Information Age, all one needs to commit crime is a keyboard and malicious intent. As this prosecution demonstrates, our office is committed to protecting computer networks from intrusions and fraud,” said Acting United States Attorney Joshua S. Levy.
“When Nathan Howe betrayed the trust placed in him by his former employer by illegally accessing their computer network, he also potentially jeopardized the treatment and care of their patients,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This case illustrates the ongoing commitment of FBI Boston’s Cyber Task Force to work with our partners to ensure cybercriminals are brought to justice to face significant consequences for their conduct.”
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of up to $250,000. The charge of conspiracy to access a protected computer without authorization to obtain information and cause damage, provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of intentionally causing damage without authorization to a protected computer and causing the potential impairment of medical treatment provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Assistant U.S. Attorney Brendan O’Shea of the Worcester Branch Office is prosecuting the case.
Gang Member Who Posed with Firearms on Snapchat Pleads GuiltyRead the Press Release
BOSTON – A Boston man pleaded guilty today to illegally possessing a firearm and ammunition while under house arrest for four state firearm charges.
Dumari Shakur Scarlett-Dixon, 22, pleaded guilty to being an unlawful drug user in possession of a firearm and ammunition. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Jan. 11, 2024.
A 2021 investigation into Heath Street, a violent Boston-area street gang, identified Scarlett-Dixon as a Heath Street member and the owner of a Snapchat account posting numerous videos and images of himself in possession of firearms. At the time of the conduct, Scarlett-Dixon was on pre-trial release for four separate state court cases of unlawful possession of a firearm. As a condition of his release, Scarlett-Dixon was on court-ordered home confinement with GPS monitoring at his grandmother’s residence in Weymouth.
During a September 2021 search of his grandmother’s residence in Weymouth, a Bersa 9-millimeter semi-automatic pistol, 59 rounds of ammunition and blunts of marijuana – a Schedule I controlled substance – were found in Scarlett-Dixon’s bedroom.The charge of being an unlawful drug user in possession of a firearm and ammunition carries a sentence of up to 10 years in prison, up to three years of supervised release and fine of $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Special assistance in the investigation was provided by the Boston, Quincy and Lynn Police Departments and the Suffolk County Sheriff’s Department. Assistant U.S. Attorney Christopher Pohl of the Narcotics & Money Laundering Unit is prosecuting the case.
The operation was conducted is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Connecticut Man Arrested for Selling Hundreds of Fraudulently Obtained Gold CoinsRead the Press Release
BOSTON – A Connecticut man was arrested today for fraudulently obtaining gold coins and transporting them outside of Massachusetts.
William Dawson, 51, was indicted by a federal grand jury in Worcester on one count of interstate transportation of property taken by fraud. Dawson was arrested this morning and released on conditions following an initial appearance in federal court in Worcester.
According to the indictment, Dawson held himself out as a property buyer and reseller. Person-1 operated a home cleanout business in Massachusetts that sold property contained in decedent estates.
It is alleged that in or around December 2022, Person-1 was retained by a decedent estate to clean out a residence in Shrewsbury. In that home, Person-1 found 170 Queen Elizabeth II Canadian Gold Maple Leaf Coins, collectively worth approximately $290,000. With approval from the estate, Person-1 allegedly agreed to sell 120 of the gold coins to Dawson.
In January 2023, Dawson allegedly met with Person-1 in Millbury and purchased the 120 gold coins with two checks totaling $198,800. However, it is alleged that Dawson had significantly less than $198,800 in the bank account when he wrote the checks to Person-1. Later that same day, Dawson allegedly called Person-1 claiming that his car had been broken into and that the gold coins had been stolen. The next day, Dawson allegedly traveled to a pawn shop in Pawtucket, R.I. where he sold 43 of the gold coins in exchange for $80,442. It is further alleged that, on several occasions in February 2023, Dawson traveled to a pawn shop in Cranston, R.I., where he sold 19 more of the gold coins in exchange for a total of approximately $35,094.
Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement today. Valuable assistance was provided by the Milford Police Department and the Worcester County District Attorney’s Office. Assistant U.S. Attorney Brendan O’Shea of the Worcester Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Amherst Man Arrested for Child Pornography OffensesRead the Press Release
BOSTON – An Amherst man has been indicted by a federal grand jury in Springfield for allegedly distributing and possessing child sexual abuse material (CSAM).
Bradley Driscoll, 25, was indicted on one count of distribution of child pornography and one count of possession of child pornography. Driscoll was arrested this morning and will appear in federal court in Springfield later today.
According to the indictment, in August 2022, Driscoll possessed CSAM in the form of videos and knowingly distributed CSAM that depicted a minor victim under 12 years old.
The charge of distribution 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. 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.
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.
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 Michael J. Mazur of the Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rhode Island Man Sentenced to over One Year in Prison for Wide-Ranging Drug ConspiracyRead the Press Release
BOSTON – A Rhode Island man was sentenced today in federal court in Worcester for his role in a wide-ranging cocaine trafficking conspiracy.
Hector Matos, 32, of Pawtucket, R.I, was sentenced by U.S. Senior District Court Judge Timothy S. Hillman to 13 months in prison and two years of supervised release. In May 2021, Matos pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine.
Following a fatal fentanyl overdose in September 2018, an investigation began into a drug trafficking organization in the Fitchburg area. Beginning in July 2019, court authorized interceptions of wire and electronic communications to and from telephones used by members and suppliers of the drug trafficking organization revealed that Torres was a cocaine dealer who supplied cocaine to the drug trafficking organization.
Over the course of the investigation, over 1.8 kilograms of a heroin/fentanyl mixture, over 3.6 kilograms of cocaine, over 50 grams of crack cocaine, a stolen loaded handgun, drug manufacturing equipment and over $376,000 in U.S. currency were seized.
Matos is the 14th defendant to be sentenced in this case. All 18 defendants have been convicted – either by guilty plea or jury conviction following trial. The remaining convicted defendants are scheduled to be sentenced in October and November 2023.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 and Lunenburg Police Departments, U.S. Postal Inspection Service and Massachusetts State Police provided valuable assistance. Assistant U.S. Attorneys Alathea 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.
Massachusetts Man Indicted for Knowingly Concealing the Source of Material Support or Resources to a Terrorist OrganizationRead the Press Release
BOSTON – A Wakefield, Mass. man was indicted today for knowingly concealing the source of material support or resources that he intended to go to a foreign terrorist organization, namely the Islamic State of Iraq and al-Sham (ISIS).
Mateo Ventura, 18, was indicted by a federal grand jury in Boston on one count of knowingly concealing the source of material support or resources to a foreign terrorist organization. Ventura will appear in federal court at a later date. Ventura was previously arrested and charged by criminal complaint in June 2023.
According to the charging documents, Ventura provided multiple gift cards to an individual he believed was an ISIS supporter, with the intention that the gift cards be sold on the dark web for a little less than face value and resulting profits be used to support ISIS. Ventura allegedly stated that he wanted the proceeds to go to ISIS “for war on kuffar,” (disbelievers). In total, it is alleged that between January and May 2023, Ventura donated $705 intended to support ISIS.
The charge of knowingly concealing the source of material support or resources to a foreign terrorist organization provides for a sentence of up to 10 years in prison, 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; Assistant Attorney General Matthew G. Olsen for the Justice Department’s National Security Division; and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Timothy H. Kistner and Laura J. Kaplan of the National Security Unit are prosecuting the case. Valuable assistance was provided by Trial Attorneys Charles Kovats and Andrea Broach of the Justice Department’s National Security Division.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Information Technology Manager Sentenced for Scheme to Steal over $1.4 Million from EmployerRead the Press Release
BOSTON – The former information technology manager of a Quebec City, Canada-based telecommunications company was sentenced today in connection with a fraud scheme that involved the theft of over $1.4 million in computer equipment from his employer.
Tod Erickson, 60, of Londonderry, N.H., was sentenced by U.S. District Court Judge Indira Talwani to one year and one day in prison. He was also ordered to pay restitution of $1,596,328 and to forfeit $1,457,429. On May 18, 2023, Erickson pleaded guilty to wire fraud and filing a false tax return.
Erickson served as the information technology manager at a telecommunications company that, until February 2019, had an office located in Chelmsford, Mass. As information technology manager, Erikson was responsible for submitting requests to purchase equipment – such as computers and hard drives. From at least January 2012 through February 2019, Erickson fraudulently submitted purchase requests for computer equipment that the company did not need. Thereafter, without the knowledge or approval of his employer, Erickson sold the items to third parties. Erickson also filed income tax returns for the tax year 2016 in which he intentionally underreported his income by failing to disclose money he received from the sale of his employer’s property.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Exagen Inc. Agrees to Pay $653,143 to Resolve Allegations of Kickback ViolationsRead the Press Release
BOSTON – A California-based life sciences company that makes diagnostic tests for the treatment of autoimmune conditions, Exagen Inc., has agreed to pay $653,143 to resolve allegations that it paid specimen processing fees to referring physicians to induce those physicians’ use of Exagen’s laboratory tests.
According to the settlement agreement, Exagen agreed to factual admissions that it paid certain referring physicians to complete blood draws for patients pursuant to specimen processing agreements that Exagen entered into with those physicians. Exagen billed federal health care programs, including Medicare and other programs, for tests that it performed after receiving orders from the referring physicians to whom it paid the specimen processing fees. Exagen did so after becoming aware of a June 25, 2014 Special Fraud Alert from the Department of Health & Human Services’ Office of the Inspector General (HHS-OIG) that warned laboratories that the practice of paying referring physicians specimen processing fees could present a substantial risk of fraud and abuse.
The settlement stems from allegations originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allows private parties, known as relators, to bring suit on behalf of the government and to share in any recovery. In connection with today’s announced settlement, the relator will receive 16 percent of the recovery.
Acting United States Attorney Joshua S. Levy; HHS-OIG Special Agent in Charge Roberto Coviello; and Christopher F. Algieri, Special Agent in Charge of the Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office made the announcement. Assistant U.S. Attorneys Abraham R. George, Chief of the Affirmative Civil Enforcement Unit, and Alexandra Brazier, also of the Affirmative Civil Enforcement Unit, handled the matter.
Newton Man Pleads Guilty to Unlawful ReentryRead the Press Release
BOSTON – A Newton man pleaded guilty in federal court in Boston to illegally reentering the United States after being deported.
Franklin Alcantara-Lorenzo, 36, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Leo Sorokin scheduled sentencing for Nov. 15, 2023.
Alcantara-Lorenzo, a citizen on the Dominican Republic, was deported from the United States in July 2021 after serving a 21-month federal sentence for conspiracy and possession with the intent to distribute fentanyl. At some point thereafter, Alcantara-Lorenzo returned to the United States and was arrested by immigration authorities in Chestnut Hill in April 2023.
The charge of unlawful reentry of a deported alien provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Mark Grady of the Major Crimes Unit is prosecuting the case.
Lawrence Man Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Lawrence man pleaded guilty in federal court in Boston to illegally reentering the United States after been deported.
Francisco Araujo Lara, 43, pleaded guilty on Oct. 11, 2023 to one count of unlawful reentry of a deported alien. U.S. District Court Judge Indira Talwani scheduled sentencing for Jan. 25, 2024.
Araujo Lara, a citizen on the Dominican Republic, was deported from the United States in September 2019, after serving an 18–30-month state sentence for a cocaine distribution conviction. Sometime thereafter, Araujo Lara unlawfully reentered the United States. In 2022, he was arrested in Lawrence for heroin and cocaine distribution. Araujo Lara pleaded guilty to the charges and was sentenced to 30 months in prison.
The charge of unlawful reentry of a deported alien provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney David G. Tobin of the Major Crimes Unit is prosecuting the case.
Worcester Man Sentenced for Illegal Possession of a FirearmRead the Press Release
BOSTON – A Worcester man was sentenced today in federal court in Boston for being a felon in possession of a firearm and ammunition.
Lawrence Rutherford, 42, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 78 months in prison and three years of supervised release. In March 2023, Rutherford pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
During a search of Rutherford’s residence in June 2019 two loaded .22 caliber pistols and approximately 613 rounds of ammunition was seized. Rutherford is prohibited from possessing a firearm or ammunition due to several prior felony convictions punishable by more than one year in prison.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the ATF Boston Field Division; and Interim Worcester Police Chief Paul Saucier made the announcement. Assistant U.S. Attorneys Greg A. Friedholm and John T. Mulcahy of the Criminal Division prosecuted the case.
Sex Offender Pleads Guilty to Child Exploitation ChargesRead the Press Release
BOSTON – A registered sex offender pleaded guilty today in federal court in Boston in connection with receiving and possessing child sexual abuse material (CSAM) via multiple groups on a messaging app.
Angel Figueroa, 51, of Fall River, pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography. U.S. District Court Judge Indira Talwani scheduled sentencing for Jan. 26, 2024. In December 2021, Figueroa was arrested and has been in federal custody since that time.
Figueroa was identified as an active member of at least four messaging applications where CSAM was being disseminated. A forensic examination of Figueroa’s cell phone revealed approximately 523 images and 72 videos of CSAM depicting children as young as infants. At least one image depicted bondage of a child under two years old. During an interview with law enforcement, Figueroa admitted that he downloaded, saved and viewed CSAM using apps on his cell phone and had been doing so for one or two years. Figueroa is a registered sex offender based upon a 2013 Massachusetts state court conviction for indecent assault and battery on a child under 14 years old.
The charge of receipt of child pornography after a prior conviction provides a sentence of at least 15 years and up to 40 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography after a prior conviction provides for a sentence of at least 10 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 judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations, in New England; and Fall River Chief of Police Paul Gauvin made the announcement. Assistant U.S. Attorneys Jessica Soto, Meghan C. Cleary, and J. Mackenzie Duane of the 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.
Member of Catalytic Converter Theft Crew Pleads GuiltyRead the Press Release
BOSTON – A Springfield man pleaded guilty today in federal court in Boston to his role in a regional organized theft crew that stole catalytic converters from over 470 vehicles, robbed jewelry stores and stole ATMs.
Nicolas Davila, 25, of Springfield, pleaded guilty to one count of conspiracy to transport stolen property in interstate commerce; two counts of interstate transportation of stolen property; and possession with intent to distribute cocaine. The drug charge arises from cocaine found during the search of Nicolas Davila’s residence as part of the catalytic converter theft investigation. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 9, 2024.
Davila and six other men were arrested on April 12, 2023, and charged with offenses related to the theft, transportation and sale of stolen catalytic converters taken from over 470 vehicles during 2022 and 2023.
Catalytic converter theft has become a nationwide problem across a multitude of state, local, and federal jurisdictions due to the high-valued precious metals they contain – some of which are more valuable than gold, with black-market prices being more than $1,000 each in recent years. The theft of a vehicle’s catalytic converter results in damage that renders the vehicle inoperable – both mechanically and legally under EPA regulations.
Nicholas Davila was a member of an organized crew that allegedly stole catalytic converters from at least 471 vehicles across Massachusetts and New Hampshire in 2022 and 2023 alone. It is believed that a significant number of additional thefts have not been identified or were not ever reported to law enforcement.. According to court documents, the crew was skilled and able to locate and cut away the catalytic converter from a vehicle within a minute in most instances – often utilizing battery operated power-tools, car jacks. It is alleged that, on numerous occasions, the defendants targeted more than 10 vehicles in a single night, with one night reporting thefts from 26 vehicles.
Once in possession of the stolen catalytic converters, the crew would then sell them to Jose Torres, who would accumulate stolen catalytic converters from multiple theft crews and then in turn sell them to scrap dealers in the Northeast – transacting approximately $30,000 to $80,000 in stolen catalytic converters per week. In particular, Torres sold stolen catalytic converters to scrap dealers who have since been charged federally for interstate transportation of stolen property and money laundering in the District of Connecticut, the Eastern District of California and Northern District of Oklahoma.
On May 17, 2023, Torres pleaded guilty to his role in the catalytic converter theft conspiracy. He is scheduled to be sentenced on Dec. 14, 2023. On May 24, 2023, Oyola pleaded guilty to the ATM and jewelry store burglaries and will be sentenced at a later date.
In addition to the federal charges, Nicolas Davila faces a pending murder indictment in Hampden County Superior Court. The case in Hampden County Superior Court is being prosecuted by the Hampden County District Attorney’s Office.
The charge of conspiracy to transport stolen property in interstate commerce provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of interstate transportation of stolen property each provide for a sentence of up to 10 years, up to three years of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute cocaine provides for a sentence of up to twenty years, at least three years of supervised release, and a fine of up to $1,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Kevin Gallagher, Director of Operations for the National Insurance Crime Bureau, Northeast Region made the announcement today. Valuable assistance was also provided by the United States Attorney’s Offices for the District of Connecticut, the Northern District of Oklahoma and the Eastern District of California; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the New England State Police Information Network (NESPIN). Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
Over 70 local police departments in Massachusetts, New Hampshire and Connecticut contributed to this investigation through the submission of their investigations of catalytic converter thefts in their jurisdiction. The Massachusetts police departments contributing to the investigation were Abington, Acton, Andover, Auburn, Bedford, Bellingham, Beverly, Billerica, Burlington, Bridgewater, Canton, Carver, Chelmsford, Concord, Cranston, East Hampton, Easton, Fitchburg, Framingham, Franklin, Gardner, Hampton, Hanover, Haverhill, Hingham, Holliston, Holyoke, Hudson, Ipswich, Lawrence, Leominster, Lynn, Malden, Mansfield, Medford, Marlborough, Methuen, Middleton, Milford, Millbury, Needham, Newton, Northborough, Norwell, Norwood, Peabody, Pembroke, Plymouth, Randolph, Rockland, Sharon, Shrewsbury, Springfield, Sterling, Sturbridge, Sudbury, Tyngsborough, Walpole, Waltham, Watertown, West Bridgewater, Weymouth, Wilmington, Woburn and Worcester. The New Hampshire police departments contributing to the investigation were Bow, Concord, Derry, Hooksett, Hudson, Londonderry, Manchester, Salem and Windham. The South Windsor and Windsor Connecticut Police Departments also contributed to the investigation.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Founder of Swiss Asset Management Firm Sentenced for Global Securities Fraud SchemeRead the Press Release
BOSTON – The founder and operator of a Swiss asset management firm was sentenced today in federal court in Boston for his role in a massive global securities fraud scheme that generated over $150 million in illicit proceeds.
Roger Knox, 53, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 36 months in prison. Knox was also ordered to pay forfeiture in the amount of $10,909,709 and restitution in an amount that will be determined at a later date. In January 2020, Knox pleaded guilty to securities fraud and conspiracy to commit securities fraud.
“Illegal pump-and-dump schemes cause financial hardship on countless innocent investors and erode the integrity of our capital markets. For at least six years, Mr. Knox helped implement a staggering securities fraud scheme that generated over $150 million in illicit profits, $5 million of which ended up in Mr. Knox’s own pocket,” said Acting United States Attorney Joshua S. Levy. “With our federal partners, including the FBI and the SEC, our office is committed to identifying fraudsters like Mr. Knox and holding them accountable.”
“Roger Knox was a critical participant in a massive global securities fraud scheme that generated more than $150 million in illegal proceeds. While today’s sentence cannot make up for the significant financial and emotional harm he and others inflicted upon their unwitting victims, it does send a message to those who may be looking to profit from similar schemes—think twice because the penalties you’ll face are steep,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Market manipulators should know that the FBI has a proven track record of rooting out fraudsters who illegally tilt the playing field against honest investors and undermine confidence in our markets.”
Knox, with others, operated an asset management firm based in Switzerland called Silverton, and later renamed Wintercap. Through this business, Knox helped facilitate pump-and-dump schemes by selling massive quantities of microcap securities on behalf of undisclosed control groups who secretly owned the stock through nominee entities formally owned by third parties. The shares were generally held by the nominees in blocks of less than 5% of the issuer’s total outstanding shares in order to evade the disclosure obligations and sale limitations in the federal securities laws. To generate investor demand for the shares, the undisclosed control groups simultaneously orchestrated promotional campaigns to artificially inflate the price and trading volume of the shares. Knox then funneled the proceeds of the pump-and-dumps—totaling over $137 million between just 2016 and 2018—to co-conspirators in the United States and around the world through a complex money transfer system that disguised the source and nature of the funds.
Examples of the securities that traded through Knox’s firm as part of pump-and-dumps included: Environmental Packaging Technologies, Inc. (EPTI), which Knox traded for a control group involving Morrie Tobin, Milan Patel and Matthew Ledvina and resulted in approximately $1.5 million in illicit proceeds; Garmatex Holdings, Ltd. (GRMX) and OneLife Technologies Corp. (OLMM), which Knox traded for a control group allegedly involving Luis Carrillo and resulted in approximately $5 million in illicit proceeds each; and Vitality Biopharma, Inc. (VBIO) (formerly known as Stevia First Corp.), which Knox traded for a control group allegedly involving Mike Veldhuis and generated over $17 million in illicit proceeds.
The United States has already collected and is forfeiting approximately $9 million of the forfeiture amount due from Knox, as well as numerous securities, from bank and brokerage accounts located in United States, Canada, Malta, Mauritius, the United Arab Emirates and the United Kingdom. Today, the District Court also ordered forfeiture of several bank accounts located in Switzerland.
Tobin, Patel and Ledvina each previously pleaded guilty to their roles in the EPTI pump-and-dump. In June 2020, Ledvina was sentenced to 30 months of probation. In December 2020, Patel was sentenced to 15 months in prison and Tobin was sentenced to one year and one day in prison. Patel was later granted compassionate release after six months of incarceration and ordered to serve six months of home incarceration. Tobin’s sentence was later reduced to four months in prison followed by eight months home incarceration. Tobin was also ordered to pay a $100,000 fine and forfeited $4 million, and Ledvina and Patel were ordered to a pay $50,000 fine each. They were also ordered to pay restitution, jointly and severally, in the amount of $1,908,583.
A criminal complaint is pending against Carrillo and Veldhuis for the GRMX, OLMM and VBIO pump-and-dumps, as well as against alleged additional co-conspirators Frederick Sharp and Courtney Kelln, all of whom are located outside the United States. The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. The Boston regional office of the SEC provided valuable assistance with the investigation. Assistant U.S. Attorneys James R. Drabick of the Securities, Financial & Cyber Fraud Unit and Carol E. Head, Chief of the Asset Recovery Unit, prosecuted the case.
Former U.S. Congressional Candidate Convicted of Federal Election Campaign Act Violations and False StatementsRead the Press Release
BOSTON – A former candidate for the U.S. House of Representatives in the 3rd Congressional District of Massachusetts was convicted today by a federal jury in Boston of charges of violating the Federal Election Campaign Act and false statements.
Abhijit Das, a/k/a “Beej,” 50, of North Andover, Mass., was convicted of one count of accepting excessive campaign contributions, one count of conduit contributions, one count of conversion of campaign funds, and two counts of making a false statement. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Jan. 17, 2024. In June 2021, Das was indicted by a federal grand jury.
“Protecting our elections through campaign finance laws is crucial in defending transparency and accountability in our government and a well-functioning democracy,” said Acting United States Attorney Joshua S. Levy. “Mr. Das illegally solicited and accepted donations, used the money for a different purpose and hid his actions. He lied to the government and to the voters. He abused the campaign finance process and thought he could get away with it. Today’s speedy verdict by the jury after two-weeks of evidence should send a resounding message that the light of justice will always find its way to political candidates who break the law.”
“Today, Abhijit Das was convicted of orchestrating a calculated scheme to blatantly violate federal campaign finance laws to further his candidacy for Congress and his business ventures at the expense of voters and the electoral process,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Mr. Das solicited his friends and family for at least $125,000 in illegal campaign contributions, used that money for his own business expenses, debts, and a 100-foot super yacht, and then lied about it. The FBI will continue pursuing investigations like this one in order to ensure the continued integrity of our electoral process.”
Das was a candidate for the U.S. House of Representatives in the 3rd Congressional District of Massachusetts in the 2017-2018 election. To inflate his fundraising numbers, Das devised a scheme in or about December 2017 to solicit personal loans from friends and close associates in excess of the $2,700 legal limit. On or about Dec. 17, 2017, Das emailed a contributor asking for a friend to support his campaign to reach a specific fundraising goal of over $450,000 by the end of the year and indicated that reaching that goal might need “some engineering.” Das advised a member of his campaign that he would “aggregate” the loans into “one batch” and execute a main transfer into the campaign account.
Further, Das caused three different individuals to contribute approximately $125,000 to his campaign and structured the contributions as personal loans to a family member to circumvent Federal Election Commission (FEC) reporting requirement and contribution limits. Das falsely claimed that the funds from the excessive contributions were his own personal funds and engaged in illegal conduit contributions to his campaign.
In addition, between January and May 2018, Das withdrew approximately $314,500 in funds from his campaign account and used at least $267,000 of these funds to pay outstanding debts for his hotel business relating to vendors, the hotel’s yacht and real estate taxes unrelated to his congressional campaign. In making these withdrawals, Das sought to conceal his conversion of campaign funds by instructing bank tellers to report the withdrawals as separate withdrawal and deposit transactions, rather than direct transfers.
Das aided and abetted in the submission of false information in quarterly reports to the FEC by overstating the amount of cash-on-hand the Das-for-Congress Campaign had in its campaign bank account. For example, in June 2018, Das reported that his campaign’s total amount of cash-on-hand was approximately $440,000, when in fact the amount of cash-on-hand in the campaign bank account was less than $5,000.
In June 2023, Das was separately indicted by a federal grand jury in Boston on 10 counts of wire fraud, alleging he diverted more than $5 million in escrow funds from his clients’ accounts for personal expenses. Das has pleaded not guilty and has been on release pending trial in that case.
Each of the charges provide for a sentence of up to five years in prison, three years of supervised release and 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 U.S. Attorney Levy, FBI Boston SAC Cohen and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service-Criminal Investigations, Boston Field Office made the announcement today. Assistant U.S. Attorneys Neil J. Gallagher Jr. and Elysa Wan of the Public Corruption & Special Prosecutions Unit are prosecuting the case.
Dominican Man Pleads Guilty to Illegally Reentering the United States and Distributing FentanylRead the Press Release
BOSTON – A Dominican man pleaded guilty today in federal court in Boston to reentering the United States and distributing fentanyl after previously being deported.
Juan Carlos Santos-Ocasio, a/k/a “Cristhian Aybar-Done,” 40, was indicted on one count of distribution and possession with intent to distribute 40 grams or more of fentanyl and one count of unlawful reentry of a deported alien. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 10, 2024. Santos-Ocasio was initially arrested and charged in November 2022 and subsequently indicted by a federal grand jury in December 2022
In October 2007, Santos-Ocasio was arrested in the Bronx, N.Y., on heroin distribution conspiracy charges. Santos-Ocasio is a citizen of the Dominican Republic and did not have legal authority to be present in the United States. In November 2008, Santos-Ocasio pleaded guilty in the Eastern District of New York to heroin distribution conspiracy and was subsequently sentenced to 37 months in prison. He was removed from the United States upon completion of his sentence in the summer of 2010.
Sometime after his removal, Santos-Ocasio reentered the United States unlawfully. In November 2022, he was arrested in Lawrence for allegedly reentering the United States without authorization. In addition to being in the U.S. without authorization, Santos-Ocasio also distributed 40 grams or more of fentanyl.
The charge of distributing and possessing with intent to distribute 40 grams or more of fentanyl provides for a mandatory minimum sentence of five years and up to 40 years in prison, up to five years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Kaitlin Brown of the Worcester Branch Office is prosecuting the case.
Chelsea Man Sentenced to Two Years in Prison for Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Chelsea man was sentenced today in federal court in Boston for federal firearms offenses.
Miguel Reyes, 33, was sentenced by U.S. District Court Patti B. Saris to two years in prison and three years of supervised release. On Mar. 16, 2023, Reyes pleaded guilty to two counts of being a felon in possession of a firearm and ammunition and one count of being a felon in possession of ammunition.
On two separate occasions in August 2020, Reyes was found in possession of a Beretta, Model U22, .22 LR caliber pistol and ammunition and a Glock, Model 48, 9 mm pistol and ammunition. Additionally, at the time of his arrest in Chelsea in May 2021, Reyes was found in possession of a Glock replica, polymer 80 and ammunition. Due to a prior felony conviction, Reyes is prohibited from possessing firearms and ammunition.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Chelsea Police Department. Assistant U.S. Attorney Benjamin A. Saltzman of the Criminal Division 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.
Massachusetts Businessman Pleads Guilty to Million Dollar Payroll Tax Fraud SchemeRead the Press Release
BOSTON – A Melrose man pleaded guilty today to a decade-long tax fraud scheme in which he failed to pay employment taxes he had withheld from employees of his two businesses.
Stephen Schofield, 70, pleaded guilty to one count of failure to pay over taxes before U.S. District Judge Denise J. Casper, who scheduled sentencing for Jan. 23, 2024.
Schofield operated and controlled two businesses – Schofield Concrete Forms in Stoneham and Schofields of Melrose, Inc. located in Melrose. For tax years 2010 through 2020, Schofield withheld federal and state employment taxes from his employees’ wages and issued W-2 forms to the employees showing that the taxes had been withheld. However, Schofield did not pay over those taxes to the IRS as required by federal law, resulting in a tax loss of approximately $1,051,000.
The charge of failure to pay over taxes provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorney Victor A. Wild of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Massachusetts Awarded over $118 Million in Federal Grants to Support Community SafetyRead the Press Release
BOSTON – Acting United States Attorney Joshua S. Levy has announced that $118,366,566 in federal grants has been allocated to the District of Massachusetts to support public safety and community justice initiatives. The grants are part of $4.4 billion in funding awarded by the Justice Department’s Office of Justice Programs (OJP), which help to build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies.
The more than 3,700 OJP grants being awarded this fiscal year will support state, local and community-based efforts and evidence-based interventions that reduce violence, crime and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.
“Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.”
“Protecting the people of Massachusetts is my highest priority, and the best way to accomplish that goal is to forge close working relationships with our state and local partners. Federal resources like this are invaluable in the support they provide for comprehensive public safety solutions and resources specific to the unique needs of Massachusetts communities,” said Acting U.S. Attorney Levy. “By investing in state and local programs, we aim to empower victims, enhance officer safety, strengthen public trust in law enforcement, and ultimately create safer communities across Massachusetts.”
In Massachusetts, nearly $60 million has been awarded under OJP’s Bureau of Justice Assistance (BJA), which provides leadership and assistance to local criminal justice programs that improve and reinforce the nation’s criminal justice system. BJA’s goals are to reduce and prevent crime, violence, and drug abuse and to improve the way in which the criminal justice system functions. BJA funding announcements are posted at: https://bja.ojp.gov/news/announcements.
Additionally, over $34 million has been awarded to support crime victim compensation and assistance in Massachusetts under OJP’s Office for Victims of Crime (OVC). This funding will support local victim assistance and compensation programs across Massachusetts to help build capacity to reach those disproportionately affected by crime and victimization. To learn more about OVC funding, visit: https://ovc.ojp.gov/funding.
“Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.”
“The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.”
“Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.”
Grants will support five major community safety and justice priorities nationwide:
- Awards totaling more than $1 billion will promote safety and strengthen trust, helping communities tackle the proliferation of gun violence in America and restore bonds of trust between community residents and the justice system. Grants will support innovative and evidence-based strategies designed to prevent and reduce violent crime, support the health and safety of law enforcement and public safety professionals, promote rehabilitation and reentry success and address the rise in hate crimes across the country.
- More than $437 million in grant awards will accelerate justice system reforms designed to achieve equal justice and fair treatment for all. Grants will expand access to services among historically underserved and marginalized communities, reduce counterproductive involvement in the justice system, increase opportunities for diversion and build pathways to treatment for people with substance use and mental health disorders.
- Over $192 million will improve the fairness and effectiveness of the juvenile justice system by supporting developmentally appropriate and culturally responsive interventions for youth. Funding will ensure that young people are served at home in their communities whenever possible, are equipped to transition to a healthy adulthood free of crime, and are protected from violence and abuse.
- More than $1.7 billion will expand access to victim services by investing in programs that provide trauma-informed and culturally responsive services to victims. Funding will support thousands of local victim assistance programs across the country and victim compensation programs in every state and U.S. territory, while helping these programs build their capacity to reach those disproportionately affected by crime and victimization.
- Over $418 million in awards will advance science and innovation to strengthen the base of knowledge that policymakers and practitioners can use to design and deploy effective community safety strategies. Awards will support research and data collection on a wide range of public safety issues, help maintain timely and accurate criminal history records, and improve the capacity of crime labs and forensic analysts to solve crimes, absolve the innocent, and deliver justice to victims.
In addition, OJP will award more than $611 million to continue its support of other previously funded programs and congressionally directed spending.
An interactive map that shows where grants are going can be found at: Workbook: OJP Awards Dashboard
Martha's Vineyard Man Pleads Guilty to Armed Robbery of Falmouth BankRead the Press Release
BOSTON – An Edgartown man pleaded guilty today to an armed robbery of a Falmouth bank, during which he zip-tied individuals, brandished a firearm, placed a purported bomb on the counter and fled the scene in the vehicle of a bank customer.
Petar Petyoshin, 40, pleaded guilty to one count of armed bank robbery before U.S. District Court Judge Angel Kelley who scheduled sentencing for Jan. 24, 2024. Petyoshin was charged in July 2023. He was initially arrested on related state charges in May 2023.
On April 8, 2023, Petyoshin departed Martha’s Vineyard aboard a Steamship Authority vessel at 7 a.m. and arrived at Woods Hole in Falmouth. At approximately 8:58 a.m. on April 8, 2023, Petyoshin entered the Rockland Trust Bank in Falmouth, placed an alleged bomb on the teller counter and brandished a firearm. Petyoshin pointed the firearm at the tellers and customers, telling one bank employee, “I’m robbing you,” before having the customers and bank employees zip-tie each other’s hands together. Petyoshin then had two additional tellers place over $20,000 in cash from the bank into a brown bag, took a customer’s car keys and fled the scene in the customer’s vehicle. Petyoshin then boarded a 1:15 p.m. return ferry to Martha’s Vineyard.
On May 23, 2023, Petyoshin was arrested on state charges in connection with the robbery. A subsequent search of his residence in Edgartown, Mass. resulted in the recovery of thousands of dollars in cash bundled together in Rockland Trust money bands, zip ties and clothing items the suspect was captured wearing on surveillance footage both before and after the robbery. Additionally, 57 firearms and a large quantity of ammunition were seized during the search. The same jacket worn by the robber inside the Rockland Trust bank was recovered during a search of Petyoshin’s personal locker at the Oak Bluffs Water Department where he is employed. The investigation also determined that the Facebook page for Petyoshin’s clothing store, Dapper Martha’s Vineyard, displayed photos of the same clothing – including jacket, sunglasses and wig – he wore during the bank robbery.
The charge of armed bank robbery provides for a sentence of up to 25 years in prison, up to five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and John. E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Falmouth and Edgartown Police Departments; Barnstable County Sheriff’s Department; and the Cape & Islands District Attorney’s Office. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
Lynn Woman Sentenced for Stealing Social Security Benefits Intended for Her Deceased MotherRead the Press Release
BOSTON – A Lynn woman was sentenced today in federal court in Boston for stealing over $50,000 in Social Security benefits intended for her deceased mother over a period of three and a half years.
Teresa M. Carrington, 66, was sentenced by U.S. District Court Judge Denise J. Casper to five years’ probation. Carrington was also ordered to pay restitution to the Social Security Administration (SSA) in the amount of $50,210. On May 31, 2023, Carrington pleaded guilty to one count of theft of public funds.
Carrington’s mother died in May 2016. However, the death was never reported to the SSA and, as a result, continued to issue monthly SSA Retirement Insurance Benefits to Carrington’s mother. From June 2016 through January 2020, Carrington stole at least $50,210 in RIS benefits erroneously paid to her deceased mother. To obtain the funds, Carrington wrote monthly checks on her deceased mother’s bank account – each of which was made payable to Carrington and fraudulently endorsed with her mother’s forged signature. Carrington then used the funds to pay bills and other personal expenses.
Acting United States Attorney Joshua S. Levy and Sharon MacDermott, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of the Major Crimes Unit prosecuted the case.
California Attorney Sentenced for Selling Unregistered SecuritiesRead the Press Release
BOSTON – A California attorney was sentenced today in federal court in Boston in connection with the illegal sale of over $1.3 million worth of unregistered shares of a Massachusetts-based health care company.
Daniel V. Martinez, 64, of Yuba City, Calif., was sentenced by U.S. District Court Judge Patti B. Saris to one year of probation and 100 hours of community service. Martinez was also ordered to pay a fine of $7,500 and forfeit $110,999. In December 2022, Martinez pleaded guilty to one count of sale of unregistered securities.
Between 2013 and 2016, Martinez served as a real-estate attorney for Avtar Singh Dhillon, who was then chairman of the Massachusetts-based biotechnology company, Arch Therapeutics, Inc. Dhillon and Martinez placed 2.75 million Arch Therapeutics shares that Dhillon beneficially owned into a limited liability company that Martinez created and for which Martinez was the sole manager. At Dhillon’s direction, Martinez then sold the shares in the open market without a valid exemption under the relevant securities laws and distributed the approximately $1.34 million in proceeds. Martinez distributed the proceeds primarily to third parties for Dhillon’s benefit, taking a small portion directly for himself.
In December 2022, Dhillon pleaded guilty to one count of willful failure to disclose stock sales, one count of aiding and abetting the sale of unregistered securities and one count of touting compensation nondisclosure conspiracy. He is scheduled to be sentenced on May 23, 2024.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office made the announcement. Valuable assistance was provided by SEC’s headquarters and Boston regional office. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Brookline Man Sentenced for Possessing Machine GunsRead the Press Release
BOSTON – A Brookline man was sentenced today for illegally possessing two privately made machine guns.
Stewart Silvestri, 24, was sentenced by U.S. District Court Judge Denise J. Casper to 42 months in prison. On July 19, 2023, Silvestri pleaded guilty to one count of unlawful possession of machine guns.
On Oct. 15, 2022, law enforcement responded to multiple calls about an erratic driver on Route 95 in Rowley, Mass., who had pulled into a weigh station. Upon arriving at the weigh station, law enforcement approached the driver – Silvestri – who stated he had just come from an armory in New Hampshire. While asking for his license and registration, Silvestri was observed sitting on what appeared to be firearms. A subsequent search of the vehicle recovered 14 privately made firearms (also known as ghost guns), hundreds of rounds of ammunition and numerous firearm parts. Two of the firearms were fully automatic pistols, classified as machine guns.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Essex County District Attorney Paul F. Tucker made the announcement today. Assistant U.S. Attorney Philip C. Cheng 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.
Bourne Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Bourne man pleaded guilty today in federal court in Boston to receiving and possessing child pornography.
Bryan C. Mileikis, 36, pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography. U.S. District Court Judge Indira Talwani scheduled sentencing for Feb. 16, 2024. Mileikis was initially arrested and charged in July 2020 and subsequently indicted by a federal grand jury in August 2020.
Mileikis was identified as the owner of a Kik Messenger account distributing child pornography online. A subsequent search of Mileikis’ Bourne residence in June 2019 resulted in the seizure of his iPhone which contained approximately 156 images and 22 videos depicting child pornography.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of the Homeland Security Investigations in Boston; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division; and Bourne Police Chief Brandon Esip made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus 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.
New York Man Pleads Guilty to Trafficking Firearms and MethamphetamineRead the Press Release
BOSTON – A New York man pleaded guilty today in federal court in Boston to trafficking drugs and firearms.
Jason Lebberes, 31, of Tuckahoe, N.Y., 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. U.S. District Court Judge Patti B. Saris scheduled sentencing for Jan. 17, 2024. Lebberes was arrested and charged in March 2023.
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.
The charge of possession with intent to distribute more than 50 grams of actual methamphetamine provides for a sentence of at least 10 years and up to life years in prison, at least five years of supervised release and a fine of up to $5,000,000. The charge of transferring a firearm to an out-of-state resident 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. The charge of transferring a machinegun 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 United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office; Ketty-Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the New York State Police. Assistant U.S. Attorney Evan Panich of the Narcotics & Money Laundering Unit is prosecuting the case.
Level 3 Sex Offender Pleads Guilty to Receiving Child Pornography from a Minor He Solicited on TikTokRead the Press Release
BOSTON – A Boston man pleaded guilty today to coercing a minor he found on TikTok to send him child sexual abuse material.
Hector Acevedo, 33, of Jamaica Plain, pleaded guilty to one count of receipt of child pornography. U.S. District Judge Patti B. Saris scheduled sentencing for Jan. 24, 2024.
Acevedo is a Level 3 registered sex offender. Acevedo was previously convicted in Suffolk County Superior Court on multiple child and sexual exploitation offenses including trafficking of a person for sexual servitude, extortion by threat of injury, posing or exhibiting a child in state of nudity or sexual conduct, dissemination of matter harmful to minors, dissemination of child pornography and purchase or possession of child pornography. On Feb. 13, 2018, Acevedo was sentenced to five-to-seven years in state prison and three years of probation.
While on state probation, Acevedo solicited a minor via TikTok and coerced the victim to engage in sexual conduct over video chat.
The charge of receipt of child pornography by an individual previously convicted of a child pornography offense provides for a sentence of at least 15 years and up to 40 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; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Arlington and Revere Police Departments. Assistant U.S. Attorney Elianna 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.