District of Massachusetts
Press releases recorded for this federal judicial district.
Former Nurse Pleads Guilty to Drug Diversion from Boston-Area HospitalRead the Press Release
BOSTON – A former nurse pleaded guilty in federal court today in Boston to diverting opioids from a Boston-area hospital.
Andrea Falzano, 39, of Winchester, pleaded guilty to three counts of unlawfully obtaining controlled substances by fraud, deception, and subterfuge. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Nov. 14, 2023. Falzano was indicted on Feb. 24, 2023.
According to admissions made in connection with her guilty plea, beginning in May 2019, Falzano used her capacity as a nurse in the emergency department at a Massachusetts based hospital to withdraw controlled substances from a locked drug cabinet. These substances included morphine, fentanyl, and hydromorphone, all of which are opioids and Schedule II controlled substances. In total, Falzano withdrew these substances 412 times for 299 already discharged patients over an approximately five-month period.
The charge of unlawfully obtaining controlled substances by fraud provides a sentence of up to four years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office; and Robert Goldstein, MD, PhD, Commissioner of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Evan Panich of the Narcotics & Money Laundering Unit is prosecuting the case.
Boston Man Pleads Guilty to Child Exploitation ChargesRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to sexual exploitation of children, distribution of child pornography, and possession of child pornography.
Robinson Alberto Baez-Nova, 39, of Jamaica Plain, pleaded guilty to one count of sexual exploitation of children, one count of distribution of child pornography, and two counts of possession of child pornography. U.S. District Court Judge Indira Talwani scheduled sentencing for Nov. 17, 2023. Baez-Nova was charged by criminal complaint on Apr. 29, 2021.
On Nov. 5, 2020, police received 13 National Center for Missing and Exploited Children CyberTipline reports associated with a Google account and email addresses linked to Baez-Nova. These reports indicated that the Google account uploaded suspected child pornography to Baez-Nova’s Google Photos between Nov. 14, 2018 and Aug. 27, 2020. A subsequent search of Baez-Nova’s cellphone revealed images and videos of child pornography.
A further review of Baez-Nova’s cellphone revealed a WhatsApp chat with an individual saved in Baez-Nova’s phone with the initials “Y.P.” who has since been identified as a 17-year-old male living the in the Dominican Republic. Y.P. had access to his niece, referred to the Indictment as “MINOR A.” Within this chat, Baez-Nova and Y.P. discussed MINOR A’s ninth birthday and Y.P. requested money from Baez-Nova for MINOR A’s birthday celebration. Y.P. continually told Baez-Nova how much his family and MINOR A needed money and requested that Baez-Nova send money to him. Baez-Nova, in turn, beginning in or around July 2020, told Y.P. that he would send money if Y.P. exploited MINOR A by producing child pornography of MINOR A. Ultimately, Y.P. sent Baez-Nova five different videos of MINOR A in response to the Baez-Nova’s specific requests.
In addition to the chat outlined above with Y.P., while searching Baez-Nova’s device, law enforcement located another WhatsApp chat with another minor female who has been identified as a 14-year-old female residing in the Dominican Republic, hereinafter referred to as “MINOR B.” During this conversation, Baez-Nova solicited MINOR B to obtain images and videos of “little kids” engaged in sexual conduct in exchange for money.
On August 27, 2020, Baez-Nova distributed child pornography to MINOR B. Additionally, on August 28, 2020, Baez-Nova distributed child pornography of MINOR A to MINOR B.
Ultimately, over 200 images and over 400 videos of child pornography were found on Baez-Nova’s cell phone and in his Google Photos account.
The charge of sexual exploitation of children provides for a mandatory minimum sentence of fifteen years and up to 30 years in prison. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 20 years in prison. Each charge also provides for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner Michael Cox made the announcement. Valuable assistance was provided by the Suffolk County District Attorney’s Office; Nashua Police Department; Hillsborough County (N.H.) District Attorney’s Office; and Homeland Security Investigations in Boston. Assistant U.S. Attorneys Mackenzie Duane and Mark Grady of the Major Crimes Unit are prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Jamaica Plain Man Pleads Guilty to Bank RobberyRead the Press Release
BOSTON – A Jamaica Plain man pleaded guilty yesterday in federal court in Boston in connection with a May 2022 robbery of a TD Bank in Cambridge.
Jalonni Shabazz, a/k/a “Jalonni Tucker,” 41, pleaded guilty to one count of bank robbery. Shabazz was charged by criminal complaint in July 2022 and was subsequently indicted in October 2022. U.S. District Court Judge Indira Talwani scheduled sentencing for Nov. 16, 2023.
On May 2, 2022, at approximately 12:49 p.m., a suspect wearing a royal blue baseball hat, gray short-sleeved T-shirt, a camouflage pattern garment around his neck, and medical mask entered the TD Bank on Massachusetts Ave. in Cambridge. The suspect handed the teller a note that read, “All of the Money - No Dye packs - or alarms,” and then told the teller, “This is a robbery honey.” The teller complied with the suspect’s demands and gave cash to the suspect. The man then fled on foot after taking $2,200 cash from the teller.
During a search of the area surrounding the bank, investigators located a royal blue baseball hat consistent with that worn by the suspect during the robbery. DNA obtained from the hat belonged to Shabazz. In addition, analysis of the bank’s surveillance footage and the defendant’s Facebook account identified Shabazz’s features – including his tattoo, hair and an article of clothing – to be consistent with that of the robbery suspect.
At the time of the robbery, Shabazz was on supervised release following a 2017 federal conviction for two bank robberies for which he was sentenced to 54 months in prison.
The charge of bank robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a $250,000 fine. 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; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigations, Boston Division; Massachusetts State Police Interim Colonel John E. Mawn, Jr.; Boston Police Commissioner Michael Cox; and MBTA Transit Police Chief Kenneth Green made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of the Major Crimes Unit is prosecuting the case.
Career Criminal Sentenced to 11 Years in Prison for Trafficking FentanylRead the Press Release
BOSTON – A career criminal was sentenced yesterday in federal court in Boston to a total of 11 years in prison for trafficking fentanyl while still on supervised release for a previous federal drug trafficking conviction.
Ozair Pereira, 35, of Brockton, was sentenced today by U.S. District Court Judge Leo T. Sorokin to 10 years in prison and eight years of supervised release. In September 2022, Pereira pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and four counts of distribution of fentanyl. For committing the offense while on federal supervised release, Pereira was sentenced by U.S. District Court Judge Nathaniel M. Gorton to an additional term of one year in prison, to be served consecutively to the sentence imposed by Judge Sorokin.
In 2018, Pereira and several other defendants were arrested as part of a wide-ranging investigation targeting drug trafficking and violence in Brockton. Pereira was intercepted on a court-authorized wiretap ordering heroin from a drug supplier. After pleading guilty to conspiracy to distribute heroin, Pereira was sentenced to 30 months in prison and three years of supervised release.
On four occasions in February and March 2021, while on federal supervised release for the drug trafficking conviction, Pereira worked with co-defendant Robert Roscoe and others to distribute over 40 grams of fentanyl to cooperating witnesses and undercover agents. In October 2022, Roscoe was sentenced to 16 months 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; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Division; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; Brockton Police Chief Brenda Perez; and New Bedford Police Chief Paul Oliveira made the announcement today. Assistant U.S. Attorney Christopher Pohl of the Narcotics & Money Laundering Unit prosecuted the case.
Boston Man Sentenced for Concealing Income and Filing False Tax ReturnsRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for concealing business income and filing multiple false tax returns.
Albert Casiello, 57, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to two months in prison and one year of supervised release. Casiello was also ordered to pay restitution of $315,856. In January 2023, Casiello pleaded guilty to three counts of filing false tax returns.
Between 2013 and 2015, Casiello was the president, sole shareholder and primary operator of Cassco Development Group, Inc., a Massachusetts construction business. For each of the tax years 2013, 2014 and 2015, Casiello concealed his business income by depositing customer payments in bank accounts held in the names of other entities. Casiello then filed false tax returns for the years 2013, 2014 and 2015, resulting in a tax loss of $315,856.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Dudley Man Sentenced to Prison for Theft and Misuse of COVID-19 Pandemic AssistanceRead the Press Release
BOSTON – A Dudley man was sentenced today in federal court in Boston for his involvement in a fraudulent scheme to obtain and misuse COVID-19-related unemployment assistance.
Norman Higgs, 35, was sentenced by U.S. District Court Judge Patti B. Saris to one year in prison and one year of supervised release. Higgs was also ordered to pay $353,551 in forfeiture. In September 2021, Higgs pleaded guilty to one count of wire fraud conspiracy.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). PUA, administered by the Massachusetts Department of Unemployment Assistance, provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits (e.g., the self-employed, independent contractors or gig economy workers).
From April to June 2020, Higgs conspired with Dquintz Alexander to submit fraudulent PUA claims using stolen identifying information of other individuals. The PUA payments were directed into bank accounts controlled by Higgs and Alexander. In total, accounts controlled by Higgs received over $353,551 in fraudulent PUA payments. While the majority of the funds were frozen by Higgs’ banks or recovered through the efforts of law enforcement, Higgs and Alexander were able to use a portion of the funds for their personal benefit, including to pay off credit card debt and to fund digital currency and online retail brokerage accounts.
On April 28, 2023, Alexander pleaded guilty to five counts of wire fraud, one count of conspiracy to commit wire fraud and one count of aggravated identity theft. He is scheduled to be sentenced on Aug. 10, 2023.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations-Labor Racketeering and Fraud made the announcement. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Convicted Felon Pleads Guilty to Drug and Firearm OffensesRead the Press Release
BOSTON – A convicted felon has pleaded guilty in connection with firearm and drug offenses that occurred in 2019 and later possessing a variety of firearms and narcotics while on pre-trial release for the charged offenses.
Christian Soares, a/k/a “Eazy,” 30, of Brockton, pleaded guilty on July 27, 2023 to two counts of being a felon in possession of a firearm and ammunition; one count of possession with intent to distribute cocaine, fentanyl and buprenorphine (suboxone); and one count of possession with intent to distribute cocaine, methamphetamine, MDA (methylenedioxyamphetamine) and 40 grams or more of fentanyl. U.S. District Court Judge William G. Young scheduled sentencing for Nov. 15, 2023.
In 2019, Soares fled on foot from law enforcement during a traffic stop. Soares threw a backpack during the chase before he was ultimately apprehended, arrested and searched. A firearm with rounds of assorted ammunition, as well as a digital scale, firecrackers, a hooked knife and buprenorphine (Suboxone) strips were recovered from Soares’ backpack. Additionally, cocaine and fentanyl intended for distribution were recovered from Soares’ person. As a result, Soares was indicted by a federal grand jury for drug and firearm offenses.
In December 2020, following a period of detention, the Court ordered Soares released on pre-trial conditions that included 24-hour confinement to a residence. Those conditions also prohibited Soares from possessing firearms, dangerous weapons, narcotic drugs, or other controlled substances.
In March 2021, while still on pre-trial release, a search of Soares’ residence resulted in the recovery of over 100 grams of fentanyl, over 30 grams of MDA, over 40 grams of methamphetamine and over 70 grams of cocaine, as well as multiple firearms and numerous rounds of assorted ammunition.
Soares is prohibited from possessing firearms and ammunition due to a 2013 state conviction of possession of a firearm, for which he served more than one year in prison.
The charge of possession with intent to distribute cocaine, fentanyl, and buprenorphine, provides for a sentence of up to 20 years in prison, at least three years of supervised release, and a fine of up to $5 million. The charge of possession with intent to distribute cocaine, methamphetamine, MDA and 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. The charges of being a felon in possession of a firearm and ammunition each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; 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 Suffolk, Norfolk and Bristol County District Attorneys’ Offices; the Suffolk, Plymouth and Norfolk County Sheriffs’ Office; and the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments. Assistant U.S. Attorney Kaitlin R. O’Donnell of the Organized Crime & Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This effort is also 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.
Maine Man Pleads Guilty to Role in Northern New England Fentanyl Trafficking OperationRead the Press Release
BOSTON – A Maine man pleaded guilty today in federal court in Boston in connection with a fentanyl trafficking operation that spanned across northern New England.
Douglas Morris, 33, of Bangor, Maine, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of p-Fluorofentanyl, a fentanyl analogue. U.S. District Court Judge Indira Talwani scheduled sentencing for Nov. 14, 2023. Morris was indicted by a federal grand jury along with five co-defendants in March 2022.
According to court documents, in June 2021, Morris picked up nearly two kilograms of p-Fluorofentanyl intended for distribution in Maine, allegedly from co-defendant Ivan Rodriguez Osorio in a hotel parking lot in Amesbury. State law enforcement subsequently stopped Morris’ vehicle and seized the narcotics. In July 2021, Morris again picked up nearly two kilograms of fentanyl, allegedly from Rodriguez Osorio, in the same hotel parking lot in Amesbury. State law enforcement again stopped Morris’ vehicle and seized the narcotics.
Morris is the third defendant to plead guilty in the case.
The charge of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of p-Fluorofentanyl, a fentanyl analogue, provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Special assistance was provided by the New Hampshire State Police. Assistant U.S. Attorneys Stephen W. Hassink and Lauren A. Graber of the Criminal Division are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Former Principal of New Mission School Charged with Misusing Nearly $40,000 in School FundsRead the Press Release
BOSTON – The former Head of School for New Mission School in Hyde Park, an autonomous pilot school within the Boston Public Schools system, has been charged with one count of wire fraud for allegedly engaging in a scheme to defraud Boston Public Schools of approximately $38,806 by misusing school funds for her own personal use.
Naia Wilson, 60, of Mattapan, was charged by an Information with one count of wire fraud. Wilson, who has agreed to plead guilty and pay restitution, will appear in federal court in Boston at a later date.
According to the charging documents, Wilson was employed as Head of School for New Mission School from 2006 until about June of 2019. Pilot schools like New Mission are granted maximum autonomy over their budget and spending. New Mission School receives a lump sum per pupil budget from Boston Public Schools and school administrators decide how to spend that money based on the needs of the school.
Pilot school budgets are managed by an external fiscal agent that contracts with Boston Public Schools. The school funds managed by the external fiscal agent were held in a bank account. In order to spend school funds managed by the external fiscal agent, Wilson, in her role as headmaster of New Mission School, would be required to make a formal check request to the external fiscal agent for a check to be issued from the bank account holding the school’s funds.
Beginning in or about September of 2016 and continuing until at least May of 2019, Wilson allegedly requested checks from the external fiscal agent school account to be issued in the name of other individuals, fraudulently endorsed those checks to herself and then deposited them into her own bank account without the nominee ever knowing or authorizing her to do so.
Additionally, Wilson allegedly requested checks from the external fiscal agent that were used to pay for two all-inclusive personal vacations to Barbados for Wilson and her friends in 2016 and 2018. For both the 2016 and 2018 Barbados trips, Wilson requested that the external fiscal agent issue checks payable to other people who went on the trips and then converted that money to pay for the all-inclusive hotel and airfare. Wilson also fraudulently endorsed the checks used to pay for the 2018 trip.
“Protecting children is one of the very top priorities of this Office and threats come in all forms. Here, Ms. Wilson is accused of diverting school funds for her personal benefit. We will not allow this type of gross abuse of authority and responsibility fly under the radar. Individuals who take advantage of public trust to line their pockets will be investigated and held accountable,” said Acting United States Attorney Joshua S. Levy.
“Instead of working honestly on behalf of her students, Naia Wilson is accused of abusing her authority and using the school’s budget as her own personal slush fund to embezzle tens of thousands of dollars to fund two all-inclusive vacations to Barbados for herself and her friends,” said Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s charges should serve as a reminder to municipal workers everywhere that there are serious consequences for such shameful conduct, and it is the taxpayers they serve and answer to at the end of the day.”
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, 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 Acting SAC DiMenna and Boston Police Commissioner Michael Cox made the announcement today. The Boston Public Schools were cooperative in this investigation. Assistant U.S. Attorneys Eugenia M. Carris and Charles Dell’Anno of the Criminal Division are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Worcester Man Sentenced to More Than Six Years in Prison for Cocaine Distribution and Unlawful Possession of FirearmsRead the Press Release
BOSTON – A Worcester man has been sentenced in federal court in Springfield for drug and firearm offenses.
Rodney Hall, 38, was sentenced on July 29, 2023 by U.S. District Court Judge Mark G. Mastroianni to 75 months in prison and four years of supervised release. On Feb. 2, 2023, Hall pleaded guilty to one count of possession with intent to distribute more than 500 grams of cocaine and one count of being a felon in possession of a firearm.
In September 2020, Hall was observed arriving in an SUV at a location in Worcester, exiting the SUV and entering the backseat of a Toyota Camry. The Camry then proceeded to drive around the block for approximately one minute and stopped at a corner where Hall exited the vehicle – an interaction consistent with conducting a drug deal. Hall was then approached by law enforcement and found to be in possession of $1,500 in cash. Approximately 27.9 grams of crack cocaine was obtained from the individual to whom Hall sold the cocaine. During a subsequent search of Hall’s apartment, approximately 634 grams of crack cocaine, a loaded .25 caliber Beretta handgun, a homemade “ghost gun” pistol and ammunition, plastic baggies, $7,000 in cash and a digital scale were recovered. Hall is prohibited from possessing a firearm due to his criminal history, which includes previous convictions for possession of a large capacity weapon and trafficking cocaine.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement. Assistant U.S. Attorneys John T. Mulcahy and Evan D. Panich 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. In May 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.
United States Attorney’s Office to Participate in Community Events During National Night OutRead the Press Release
BOSTON – The U.S. Attorney’s Office for the District of Massachusetts will join community organizers, neighbors and law enforcement partners to participate in National Night Out events on July 31, 2023 and Aug. 1, 2023. Staff members of the U.S. Attorney’s Office will be represented across the state, including Acting U.S. Attorney Joshua S. Levy who will attend community events in Boston.
“Our law enforcement partners are vital to our mission of keeping Massachusetts safe. As they serve our communities, it is important that they are seen and known, too,” said Acting United States Attorney Joshua S. Levy. “National Night Out is an important initiative to build trust and relationships between law enforcement officers and the communities they serve. We look forward to joining our partners in Boston, and across the state.”
National Night Out is an annual community-building campaign that promotes partnerships and camaraderie between law enforcement and the communities they serve to make our neighborhoods safer places to live. Millions take part in National Night Out across thousands of communities throughout the country on the first Tuesday of August in most areas of the country.
National Night Out was established in 1984 with funding from the Bureau of Justice Assistance of the U.S. Department of Justice. The program is administered by the National Association of Town Watch, a nationwide non-profit organization.
Coordinated by local law enforcement and trained volunteers, National Night Out provides an opportunity to bring police and neighbors together under positive circumstances. Neighborhoods host block parties, cookouts, festivals, parades, safety demonstrations, seminars, youth events, visits from emergency personnel and more. National Night Out sends a message that neighbors are united and working together to keep their communities and each other safe.
For more information, visit https://natw.org/.
Nine Members and Associates of Asian Boyz Gang Charged with Drug Trafficking and Firearm OffensesRead the Press Release
BOSTON – Nine members and associates of the Asian Boyz (ABZ) gang have been charged in connection with drug trafficking conspiracies and dealing in firearms, including machinegun conversion devices – commonly known as “switches.”
The following were arrested and charged yesterday in U.S. District Court in Boston:
- Anel Reyes, a/k/a “A-Tecc,” a/k/a “A.T.E.C.,” 24, of Lawrence, was charged with one count of distribution of and possession with intent to distribute 100 grams or more of p-Fluorofentanyl, a fentanyl analogue; and one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl;
- Samnang Son, a/k/a “Smiley,” 33, of Lowell, was charged with one count of felon in possession of firearm and ammunition; one count of engaging in the business of dealing in firearms without a license; one count of conspiracy to distribute and to possess with intent to distribute 500 grams of more of methamphetamine; one count of distribution of and possession with intent to distribute 50 grams or more of methamphetamine; one count of distribution of and possession with intent to distribute methamphetamine; and one count of transfer and possession of a machinegun;
- Billy Chan, a/k/a Juju,” 18, of Lowell, was charged with one count of engaging in the business of dealing in firearms without a license; one count of conspiracy to distribute and to possess with intent to distribute methamphetamine; one count of distribution or and possession with intent to distribute methamphetamine; and one count of transfer and possession of a machinegun;
- Bill Phim, a/k/a “Bonez,” 35, of Acton, was charged with two counts of conspiracy to distribute and to possess with intent to distribute 500 grams or more of methamphetamine and two counts of distribution of and possession with intent to distribute 50 grams or more of methamphetamine;
- Erickson Dao, a/k/a “Silent,” 31, of Lowell, was charged with one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of methamphetamine and one count of possession with intent to distribute 500 grams or more of cocaine;
- Brian Gingras, a/k/a “Cheech,” 37, of Lowell, was charged with one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of methamphetamine and one count of possession with intent to distribute 50 grams or more of methamphetamine;
- Marcus Holder, a/k/a “Heartless” 28, of Newton, N.H, was charged with two counts of distribution of and possession with intent to distribute 50 grams or more of methamphetamine; and
- Joseph Bagrowski, 35, of Chelmsford, was charged with two counts of distribution of and possession with intent to distribute 50 grams or more of methamphetamine.
The following defendant was also charged yesterday and is currently in state custody:
- Sary Rath, a/k/a “BG,” a/k/a “Bad Guy,” a/k/a “Baby Gangsta,” 37, formerly of Lowell, was charged with one count of distribution of and possession with intent to distribute 500 grams or more of methamphetamine and one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl.
As alleged in court documents, the ABZ gang is one of the nation’s largest Asian street gangs. Members and associates of the ABZ gang are known to engage in illegal drug and firearm trafficking as well as acts of violence against rival gang members and associates. While ABZ gangs around the country operate independently of each other as far a structure and leadership, they use their ABZ gang network to facilitate their interstate narcotics and firearms trafficking.
According to court documents, Rath is a leader of the ABZ gang in Lowell and has been a self-admitted member of ABZ gang for at least the last 15 years. It is alleged that Son, Phim, Dao, Gingras and Holder are also members of the ABZ gang; Reyes and Bagrowski are associates of the ABZ gang and Chan is an associate of the Young Crip Hitters, a group aligned with the ABZ gang.
According to court documents, the defendants were part of a large drug distribution network that profited primarily from the sale of thousands of homemade counterfeit Adderall pills containing methamphetamine. It is alleged that the defendants worked together to manufacture, supply and distribute their significant supply of methamphetamine pills – including to an undercover officer on 12 different occasions between March 2022 and October 2022. Rath allegedly used a gang-affiliated business, “Money Affiliated,” to facilitate the distribution of narcotics. Rath produced and performed rap music, and he used “Money Affiliated” as a brand for the music, which prominently referenced the ABZ gang and featured other ABZ gang members, including Dao, Gingras, Phim and Holder. In total, the defendants are alleged to have distributed or possessed with intent to distribute approximately 12,100 counterfeit Adderall pills – weighing over 25 kilograms – containing methamphetamine, over 900 grams cocaine, over 400 grams of fentanyl and approximately 500 grams of para-Fluorofentanyl.
It is further alleged that, in addition to narcotics, the defendants also sold at least 15 firearms – including five machinegun conversion devices, an AR-type and “ghost guns” – magazines and hundreds of rounds of ammunition over the course of the investigation.
A search of the defendants’ residences following yesterday's arrests allegedly resulted in the recovery of multiple cellular telephones, approximately $1,000 in cash, approximately 1,000 counterfeit Adderall pills containing suspected methamphetamine, 300 Euros pills containing suspected MDMA/Ecstasy, a Smith & Wesson 9mm pistol with an obliterated serial number loaded with 9mm ammunition, a “ghost gun” pistol frame, magazines, firearms parts and a ballistics vest.
“The trafficking of firearms and deadly narcotics by violent criminal organizations is so corrosive and destructive. It makes the hard-working residents of these communities feel unsafe when they go about their daily lives – heading to work or school or just out to play,” said Acting United States Attorney Joshua S. Levy. “The defendants charged yesterday promoted violence and pumped poison into the Lowell community for a profit. This office and our law enforcement partners will continue to relentlessly investigate, identify and disrupt criminal organizations and do all that we can to ensure our communities are safe from violence and the proliferation of drugs and firearms. The U.S. Attorney’s Office offers the weight of the federal government, and we will not hesitate to bring our resources to the table to ensure our residents’ safety.”
“Yesterday, we charged nine members and associates of one of the nation’s largest Asian street gangs, who are alleged to have trafficked illegal firearms and controlled an illegal drug distribution network once belonging to their rivals. Rivals we removed from the streets of Lowell two years ago,” said Christopher DiMenna, Acting Special Agent in Charge, Federal Bureau of Investigation, Boston Division. “In peddling thousands of counterfeit prescription pills containing methamphetamine, and selling illegal firearms and machine gun conversion devices, we believe this dangerous criminal enterprise posed a direct threat to the people of Lowell. The positive impact made by removing these criminals from the streets of Lowell should immediately be felt.”
“ATF is proud to work shoulder to shoulder with our law enforcement partners to ensure everyone who is involved in illegal trafficking of firearms is held accountable, and this investigation highlights the power of this collaboration,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division.
“I would like to thank our federal law enforcement partners including the FBI and ATF, the US Attorney's Office and Middlesex County District Attorney's Office for their continued collaboration on these complex, years long investigations which help keep our community safe. This operation targeted the Lowell based set of the nationally recognized ABZ street gang, which is a violent and prolific drug and firearms trafficking organization. The Lowell Police department is committed to working with all our law enforcement partners to disrupt these violent, drug and firearm trafficking organizations,” said Greg Hudon, Superintendent of the Lowell Police Department.
The charges of distribution of and possession with intent to distribute 500 grams or more of methamphetamine; distribution of and possession with intent to distribute 100 grams or more of p-Fluorofentanyl; distribution of and possession with intent to distribute 400 grams or more of fentanyl; conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, each provide for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charges of distribution and possession with intent to distribute 50 grams or more of methamphetamine and possession with intent to distribute 500 grams or more of cocaine each provide for a sentence of at least five year and up to life 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 conspiracy to distribute and possess with intent to distribute methamphetamine and distribution of and possession with intent to distribute methamphetamine each provide for a sentence of up to 20 years in prison, at least three years up to life in prison and a fine of up to $1 million. The charges of felon in possession of a firearm and ammunition and transfer and possession of a machinegun each provide for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of engaging in the business of dealing in firearms without a license provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy; FBI Acting SAC DiMenna; ATF SAC Ferguson; and Lowell Police Superintendent Hudon made the announcement today. Valuable assistance was provided by the Middlesex County District Attorney’s Office; Massachusetts State Police; and the Billerica, Haverhill, North Andover and Salem Police Departments. Assistant U.S. Attorney Fred Wyshak of the Organized Crime & Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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.
Chicago Rapper "G Herbo" Pleads Guilty to Role in Nationwide Fraud Conspiracy and Making False StatementsRead the Press Release
BOSTON – A Chicago-area rap artist pleaded guilty today in federal court in Springfield, Mass. to his role in a nationwide wire fraud conspiracy that victimized businesses across the United States and then making a false statement to a federal agent to conceal his involvement.
Herbert Wright, 25, a/k/a “G Herbo,” pleaded guilty to one count of conspiracy to commit wire fraud and one count of making a false statement to a federal official. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 7, 2023.
Wright was initially indicted by a federal grand jury in December 2020 along with five co-defendants, including rap promoter Antonio Strong, in connection with the alleged fraud conspiracy. Wright was subsequently charged with making false statements in May 2021.
“Mr. Wright used stolen account information as his very own unlimited funding source, using victims’ payment cards to finance an extravagant lifestyle and advance his career. Mr. Wright’s conduct affected countless businesses and individuals across the United States who had to foot his nearly $140,000 bill in unauthorized transactions. Mr. Wright flaunted his lavish spending on social media, in music videos and in industry news. This office and our law enforcement partners are committed to ensuring that individuals and businesses are protected against fraudsters. This case should serve as a reminder that if you break the law, you will be prosecuted and held accountable – regardless of who you are,” said Acting United States Attorney Joshua S. Levy.
“The willful and intentional use of false statements during a federal criminal investigation threatens not only the integrity of an individual case but also a foundational tenet of our democracy at large,” said Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office. “Today’s announcement represents our communal dedication to the truth and I am proud of the investigative team of special agents and federal partners at the Massachusetts U.S. Attorney’s Office for the essential work behind these charges.”
Beginning in at least March 2017 through November 2018, Wright and, allegedly, his co-defendants conspired to defraud numerous businesses and individuals throughout the United States by using unauthorized and stolen payment card account information of real individuals – including the actual cardholders’ names, addresses, security codes and account expiration dates. Generally, because the payment card information was authentic, the defrauded businesses and individuals successfully processed the fraudulent transactions and provided the goods and services to Wright and his alleged co-conspirators. The actual cardholders discovered these transactions on their accounts and disputed the charges with their card companies who then charged back the transactions to the businesses and individuals, which consequently suffered losses in the amounts of the unauthorized transactions.
According to court documents, Wright frequently asked Strong for a number of luxury goods or services, such as flights, vehicles (“whips”), or accommodation (“cribs”), which Strong allegedly often procured by fraud using the stolen payment card account information. This included: four private jet charters for a total cost of over $80,000; over $34,000 in exotic car rentals including a Mercedes Benz 5560 and a Cadillac Escalade; as well as an over $14,500 villa in Jamaica for which Wright also requested that Strong provide vehicles and an additional credit card account for his incidentals. During text message conversations, Wright acknowledged that it did not cost Strong anything to rent a vehicle for him, stating: “Extend that whip bro that b**** ain't for no month why you be lying […] You know it don't be costing you s*** to do that s*** dude!”
Wright also used the fraud proceeds to travel to various concert venues and to advance his career by posting photographs and/or videos of himself on the private jets, in the exotic cars and at the Jamaican villa on social media as well as in music videos. In addition, Wright allegedly helped Strong obtain two designer Yorkie puppies for over $10,000 from a business by falsely representing that Wright was the actual purchaser of the puppies and by concealing Strong’s actual identity from the business.
Additionally, according to court documents in November 2018, Wright falsely told a federal agent that he never worked with or was assisted by Strong; he never provided Strong any money; he never received anything of value from Strong; and he had no direct relationship with Strong. In fact, since at least 2016: (1) Strong worked with and assisted Wright; (2) Wright provided Strong money; (3) Wright received valuable goods from Strong, including private jet charters, luxury accommodations, and exotic car rentals; and (4) Wright had frequent direct contact with Strong, including phone conversations, text messages and Instagram messages.
Wright admitted, as part his guilty plea, that he was responsible for $139,878 in victim losses. Strong has pleaded not guilty and is awaiting trial.
The charge of wire fraud conspiracy provides for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of $250,000. The charge of false statements provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy and USSS SAC Murphy made the announcement. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office and Trial Attorneys Andrew Tyler and Kyle Crawford of the Justice Department’s Criminal Division’s Fraud Section are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chelsea Man Arrested for Unlawful Trafficking of Machinegun Conversion DevicesRead the Press Release
BOSTON – A Chelsea man was arrested yesterday in connection with illegally selling machinegun conversion devices.
Michael Williams, 49, was charged with one count of transferring or possessing a machine gun. Williams will appear in federal court in Boston at 3 p.m. this afternoon.
According to the charging documents, in January 2023, Williams agreed to sell several machine gun conversion devices and other firearm accessories to an undercover federal agent. It is alleged that, following a series of communications, Williams met the undercover agent twice at a pre-arranged location. It is further alleged that on Jan. 12, 2023, Williams sold the first machinegun conversion device to the undercover agent and the following day, on Jan. 13, 2023, Williams sold two additional machine conversion devices to the undercover agent.
The charge of unlawful transferring or possession of a machinegun provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. 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; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Chelsea Police Chief Keith Houghton made the announcement today. Assistant U.S. Attorney John T. Dawley of the Organized Crime & Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Previously Convicted of Sex Trafficking to Plead Guilty to Witness IntimidationRead the Press Release
BOSTON – A Boston man has been charged and has agreed to plead guilty to attempting to prevent a witness whom he allegedly exposed himself to from testifying against him in a federal proceeding.
Mark Pinnock, 32, had been charged with one count of witness intimidation. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, in 2014, Pinnock was sentenced to eight years in prison for a sex trafficking offense. In 2022, Pinnock was released and under federal supervision while working as an Amazon driver. It is alleged that in July 2022, while Pinnock was on supervised release for his 2014 sex trafficking conviction, a victim reported to local law enforcement that Pinnock allegedly exposed his penis to her while delivering a package to the condominium complex where the victim worked as a custodian. As a result, the U.S. Probation Office sought to revoke Pinnock’s term of supervised release and the Court scheduled a hearing to adjudicate Pinnock’s alleged offense.
It is alleged that one week before the hearing, Pinnock sent a co-conspirator to the condominium complex on his behalf. The co-conspirator allegedly told the victim not to go to Court and stood with his hand in his pocket as if he had something in it. Pinnock also allegedly used an encrypted messaging application to send an anonymous message to the security officer at the complex to “let the cleaning lady know” she would be arrested by immigration officials if she were to go to court. Finally, Pinnock placed three separate phone calls to immigration officials in an attempt to have the victim detained for being unlawfully present in the United States. Pinnock falsely claimed to ICE, among other things, that he had heard the victim was gang-affiliated.
The charge of witness intimidation provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000, restitution, and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England made the announcement today. The Brockton Police provided valuable assistance in the investigation. Assistant U.S. Attorney Mackenzie A. Queenin of the Criminal Division 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.
Southbridge Man Sentenced to 10 Years in Prison for Trafficking Fentanyl and CocaineRead the Press Release
BOSTON – A Southbridge man was sentenced yesterday in federal court in Worcester for conspiring to traffic multiple kilograms of fentanyl and cocaine in Central and Eastern Massachusetts.
Edgardo Ramirez, 45, was sentenced by U.S. District Court Judge Margaret R. Guzman to 10 years in prison and five years of supervised release. On April 26, 2023, Ramirez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine and 400 grams or more of fentanyl; and one count of distribution of and possession with intent to distribute 100 grams or more of p-Fluorofentanyl, a fentanyl analogue, 40 grams or more of fentanyl and 28 grams or more of cocaine base.
Ramirez was indicted in September 2022 along with 21 other co-defendants for their alleged roles in drug trafficking organizations (DTOs) that distributed cocaine and fentanyl throughout the North Shore and Central Massachusetts. It is alleged that the DTO regularly used the United States mail to conduct drug trafficking activities. Specifically, the DTO allegedly obtained large quantities of cocaine through packages mailed from Puerto Rico to addresses used by the DTO and mailed packages containing fentanyl to recipients in Florida and elsewhere. From April to July 2022, Ramirez was responsible for mixing, packaging and transporting fentanyl and cocaine in furtherance of this criminal conspiracy.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division made the announcement today. Valuable assistance was provided by the United States Marshals Service, Massachusetts State Police, Southbridge Police Department, Lawrence Police Department, Essex County Sherriff’s Department and Worcester County Sheriff’s Department. Assistant U.S. Attorney Stephen W. Hassink of the Narcotics & Money Laundering Unit is prosecuting the case.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Level 3 Registered Sex Offender Sentenced to over 17 Years in Prison for Sexually Exploiting 11-Year-Old via SnapchatRead the Press Release
BOSTON – A Lowell man was sentenced yesterday in federal court in Boston for extorting a minor to send him sexually explicit photos over Snapchat.
Chayanne Nieves, 25, was sentenced by U.S. District Court Judge Indira Talwani to 210 months in prison and 10 years of supervised release. In June 2022, Nieves pleaded guilty to one count of receipt of child pornography.
During a period of four days in November and December 2020, Nieves communicated on Snapchat with an 11-year-old child in Vermont. During those communications, Nieves obtained nude photographs from the victim and then extorted the victim to engage in graphic video chats with him while he masturbated, threatening to post her photographs if she did not comply. The victim’s mother intervened and reported the defendant to local police. During a subsequent search of Nieves’s residence in Lowell, Nieves confirmed that the Snapchat account used to communicate with the child was his. Nieves is a Level 3 registered sex offender based on a 2018 Middlesex Superior Court conviction for indecent assault and battery on a child under 14, for which he was on probation when he committed the offense charged in the federal indictment.
“Mr. Nieves is a danger to our communities. While already on probation for indecent assault and battery on a child under 14, he targeted and exploited an innocent child for his own sexual gratification. This significant sentence ensures that Mr. Nieves is removed from our communities and unable to cause any more harm for the foreseeable future,” said Acting United States Attorney Joshua S. Levy. “The safety of the public, especially our children, is of the utmost importance to this office. We will continue to do all that we can to hold predators like Mr. Nieves responsible and protect our communities from dangers both off- and on-line.”
“Nieves is a convicted sex offender who used social media to continue to harm children, even while on probation. This significant sentence ensures he will be off the streets and unable to prey on children,” said Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England. “Sextortion, typically a cyber-enabled crime, causes significant harm. HSI continues to work with our partners around the country and the world to track down predators like Nieves. HSI is committed to ensuring that affected individuals and families know that there is help and a way forward after such a troubling event.”
Acting U.S. Attorney Levy; HSI Acting SAC Krol; and Major Dan Trudeau, Commander of the Vermont State Police’s Criminal Division made the announcement today. Valuable assistance was provided by the Lowell Police Department. Assistant U.S. Attorneys Charles Dell’Anno and Anne Paruti of the Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Latin Kings Member Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced yesterday in federal court in Boston for racketeering.
Josue Carrasquillo, a/k/a “King Playboy,” 28, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to time served (approximately five months in prison) and three years of supervised release. In November 2020, Carrasquillo pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf. Carrasquillo participated in the violent acts of the gang and distributing controlled substances on behalf of the gang.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Carrasquillo is the 60th and final defendant to be sentenced in this case. The two remaining defendants charged in the indictment remain fugitives.
The United States Attorney’s Office for the District of Massachusetts; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Carol Mici, Commissioner, Massachusetts Department of Correction; and New Bedford Police Chief Paul Oliveira made the announcement today. Valuable assistance was also provided by the Bristol and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard 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 two remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Holyoke Man Sentenced for False Statements Regarding Straw Firearms PurchasesRead the Press Release
BOSTON – A Holyoke man was sentenced yesterday in federal court in Springfield in connection with straw purchases of firearms.
Tyler A. Augusto, 23, was sentenced by U.S. District Court Judge Mark G. Mastroianni to two years of probation, with the first four months of the sentence to be served in home confinement. In February 2023, Augusto pleaded guilty to one count of false statements to acquire firearms from a licensed dealer; one count of false statements with respect to information required to be kept in the records of a licensed firearms dealer; and one count of false statements.
Between October 2020 and February 2022, Augusto conducted numerous purchases of firearms from three different federally firearms licensees on behalf of his father, who was not licensed to possess firearms. In February 2022, Augusto falsely told law enforcement that he had not purchased any firearms for his father and that his father had not asked Augusto to purchase any firearms.
As part of his plea agreement, Augusto will forfeit a Sig Sauer Model P365 9mm caliber semi-automatic pistol; a Colt Model SP1 .223 caliber semi-automatic rifle; a Taurus Model CT9-G2 9mm caliber semi-automatic rifle; a Glock model 17 frame; an IMI Uzi model A 9mm semi-automatic rifle; an FN model FS2000 5.56x45mm caliber semi-automatic rifle; a FN model SCAR 16S 5.56x45mm caliber semi-automatic rifle; a Sig Sauer model SIG 556 SCM 5.56x45mm caliber semi-automatic rifle; and a Glock model 21 .45 caliber ACP semi-automatic pistol.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Federal Bureau of Investigation and the Holyoke Police Department. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office prosecuted the case.
Holyoke Man Pleads Guilty to Drug and Firearm OffensesRead the Press Release
BOSTON – A Holyoke man pleaded guilty yesterday in federal court in Springfield in connection with drug and firearm offenses.
Jonathan Mercedes, 31, pleaded guilty to one count of possession with intent to distribute 40 grams of more of fentanyl; one count of possession with intent to distribute cocaine; and one count of possession of firearms in furtherance of drug trafficking felonies. U.S. District Court Judge Mark G. Mastroianni scheduled for Nov. 16, 2023. Mercedes was indicted by a federal grand jury in May 2022.
On April 7, 2022, Mercedes possessed with intent to distribute 60 grams of fentanyl laced heroin and 59 grams of cocaine. Mercedes also possessed a Ruger .22 caliber semi-automatic handgun loaded with nine rounds of .22 caliber ammunition and a Smith and Wesson 9mm semi-automatic handgun loaded with 11 rounds of 9mm ammunition.
The charge of possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of up to 40 years in prison, five years of supervised release and a fine of $2 million. The charge of possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $1 million. The charge of possession of firearms in furtherance of a drug trafficking crime provides for a sentence of up to life in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England; and Holyoke Police Chief David Pratt made the announcement today. Assistant United States Attorney Todd E. Newhouse of the Springfield Branch Office is prosecuting the case.
General Contractor Agrees to Plead Guilty to Tax EvasionRead the Press Release
BOSTON – The former owner of a general contracting business based in South Boston and Quincy has been charged and has agreed to plead guilty to concealing business income from the Internal Revenue Service (IRS).
John Michael Sacco, 52, formerly of Quincy, has agreed to plead guilty to one count of tax evasion. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, Sacco managed construction projects under the name JMS Contracting. It is alleged that, from 2014 through 2021, Sacco received over $9 million from JMS’s customers. Rather than depositing JMS’s gross receipts into business bank accounts, Sacco allegedly cashed most checks from customers, used proceeds to purchase supplies and pay subcontractors in cash, and retained remaining cash to pay personal expenses. Sacco allegedly failed to issue required tax forms to its subcontractors and failed to file required forms with the IRS with respect to amounts that JMS paid to its subcontractors. By not reporting JMS’s actual receipts on tax returns that he filed for certain years and by filing no tax returns in other years, Sacco underreported his personal income tax obligations, causing a loss to the IRS of over $3 million.
The charge of tax evasion provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Defendants in Tyngsborough Daycare Investigation IndictedRead the Press Release
BOSTON – Two New Hampshire women have been indicted by a federal grand jury in Boston in connection with the sexual exploitation of children at a daycare in Tyngsborough, Mass.
Lindsay Groves, 38, of Hudson, N.H. and Stacie Marie Laughton, 39, of Nashua, N.H., were indicted on three counts each of sexual exploitation of children. Groves is also charged with one count of distribution of child pornography.
Laughton will appear in federal court in Boston tomorrow, July 28, 2023 at 10:15 a.m. Groves will appear at a later date. The defendants were previously charged by criminal complaint with sexual exploitation of children and distribution of child pornography on June 22, 2023 and July 18, 2023. Both defendants remain in custody.
“Ensuring the safety of our children is one of the highest priorities for this office. The conduct alleged today is horrific and inexplicable. This case is a reminder of how critical it is that we continue to focus on people who prey on our most vulnerable population, children. The U.S. Attorney’s Office will never let up in our efforts to investigate and prosecute child exploitation. Perpetrators will be rooted out and aggressively pursued by this office,” said Acting United States Attorney Joshua S. Levy.
“These allegations are every parent’s worst nightmare. The individuals in today’s indictments are alleged to have collaborated to take advantage of trusted access to children to create exploitative material,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England. “Homeland Security Investigations and our partners will never cease in our pursuit of those who prey upon children.”
According to the charging documents, Groves worked at Creative Minds located in Tyngsborough, Mass. It is alleged that, between May 2022 and June 2023, Groves took nude images of children at the day care and sent the photos to Laughton. Specifically, Groves allegedly used natural bathroom breaks for the children (routine diaper/pull-up changes prior to “naptime”) to take multiple photos of the prepubescent children in a private bathroom and then send the photos to the individual via text message.
According to the charging documents, a preliminary forensic review of Groves’ cellphone allegedly revealed over 10,000 text messages between Laughton and Groves that included discussion about, and transfer of, explicit photographs that Groves had taken of children while employed at Creative Minds daycare – including at least four sexually explicit images of three three-year-old children who were students at the daycare, as well as explicit descriptions of sex with each other and others, including children. The investigation remains ongoing.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274. Case information, including links to charging documents and victim resources, can be found here: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/united-states-v-lindsay-groves
The charge of sexual exploitation of children provides for a sentence of at least 15 years and up to 30 years in prison, and distribution of child pornography provides for a sentence of at least five year and up to 20 years in prison. Both offenses provide for 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 U.S. Attorney Levy; HSI Acting SAC Krol; and Nashua (N.H.) Police Chief Kevin Rourke made the announcement today. Valuable assistance was provided by the U.S. Attorney’s Office for the District of New Hampshire; Middlesex County District Attorney’s Office; and the Hudson, N.H. Police Department. Assistant U.S. Attorneys Anne Paruti and Jessica L. Soto 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.
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.
The referenced media source is missing and needs to be re-embedded.Yogibo to Pay $217,000 to Resolve False Claims Act Allegations of Underpaying Customs DutiesRead the Press Release
BOSTON – Yogibo, a New Hampshire-based furniture seller, has agreed to pay $217,832 to resolve allegations that it violated the False Claims Act by failing to pay customs duties on imports from China.
Customs laws require importers to pay duties on the price paid for imported goods, including the cost of quality control testing, product design services, foreign inland freight and more.
Between 2016 and 2022, Yogibo imported goods from a Chinese manufacturer, Leadershow Home Textile Co., Ltd (Leadershow). For each shipment, Leadershow provided Yogibo with two invoices: a commercial invoice listing one price for the goods being imported; and a second invoice (which Yogibo called the “QC Invoice”) that included a separate and additional charge for inland freight from Leadershow to a Chinese port, design services and quality control testing. Yogibo did not provide the QC Invoice to its customs broker for determining duties owed to the United States government on Leadershow imports and instead, only provided the commercial invoice with the lower total price. As a result, the customs broker did not calculate the duties owed based the total cost of the goods, including the additional charges on the QC Invoice.
Under the Department of Justice’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases, the Department of Justice credited Yogibo’s cooperation in this matter.
“Customs laws are intended to, among other things, protect domestic companies from unfair competition,” said Acting United States Attorney Joshua S. Levy. “Our office will deploy the False Claims Act to go after anyone who cheats the system and defrauds the federal government.”
“U.S. Customs & Border Protection is responsible for facilitating lawful international trade while regulating and enforcing hundreds of laws from dozens of federal agencies. Submission of false invoices on imported goods is a serious matter. This scheme involves entities importing goods without paying the U.S. Government the lawful amount of duties owed, creating an unfair advantage over law-abiding American businesses. I am glad that we were able to work with our federal partners to reach a satisfactory settlement to recover these funds,” said Michael McCarthy, Acting Director of Field Operations for U.S. Customs and Border Protection, Boston Field Office.
“Customs fraud is a serious allegation. Yogibo used a system of dual invoicing to circumvent requirements for establishing the proper duty. HSI takes undervaluing products imported into the United States seriously and will continue to protect the integrity of the False Claims Act through the aggressive enforcement of our customs laws,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England.
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 allow 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 20 percent of the recovery.
Acting U.S. Attorney Levy, CBP Acting Director McCarthy and HSI Acting SAC Krol made the announcement today. Assistant U.S. Attorney Brian M. LaMacchia of the Affirmative Civil Enforcement Unit handled the matter.
US v. Yogibo - Settlement AgreementOwner of Brighton-Based Physical Therapy Clinic Sentenced to Three Years in Prison for Fraud SchemeRead the Press Release
BOSTON – A Boston woman was sentenced today in federal court in Boston for her role in a scheme to defraud multiple insurance providers for physical therapy services that were not provided to patients.
Gyulnara Bayryshova, 57, was sentenced by U.S. District Court Judge Richard G. Stearns to three years in prison and two years of supervised release. Bayryshova was also ordered to pay restitution of $7,383,756 and forfeiture of $7,834. In April 2023, Bayryshova pleaded guilty to one count of conspiracy to commit mail fraud. Bayryshova was indicted in February 2021 along with co-defendants Anna Barenboym, Slava Pride and Raya Bagardi.
Bayryshova was the owner of Brighton Physical Therapy (BPT), a Brighton-based physical therapy clinic. From October 2018 through June 2020, Bayryshova and her co-defendants conspired to cause multiple insurance companies to reimburse them for physical therapy services that were not actually provided and/or were not medically necessary and, in some cases, were provided by individuals not licensed to provide the services. Specifically, Bayryshova and her co-defendants falsely billed for services purportedly rendered to patients injured in automobile accidents when the services were not actually provided. BPT also paid patients for referrals and referred patients to attorneys to assist with patients’ insurance settlements.
On July 12, 2023, Pride was sentenced to two years in prison, two years of supervised release and was ordered to pay restitution of over $2.3 million. On July 19, 2023, Bagardi was sentenced to two years of supervised release, with the first year to be spent in home confinement and was also ordered to pay restitution of over $2.3 million.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; Boston Police Commissioner Michael Cox; and Quincy Police Chief Mark Kennedy made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of the Criminal Division is prosecuting the case.
Holyoke Man Sentenced to Five Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
BOSTON – A Holyoke man was sentenced yesterday in federal court in Springfield for illegally possessing a firearm as a previously convicted felon.
Joe Anthony Montaner-Vazquez, 25, was sentenced by U.S. District Court Judge Mark G. Mastroianni to five years in prison and three years of supervised release. In April 2023, Montaner-Vazquez pleaded guilty to one count of being a felon in possession of a firearm.
In May 2022, Montaner-Vazquez was found in possession of a Glock 9-millimeter caliber pistol and 20 rounds of ammunition after he attempted to flee from police. Montaner-Vazquez was previously convicted of a felony and is prohibited from possessing firearms and ammunition.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Holyoke Police Chief David Pratt made the announcement today. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Office prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Brighton Food Truck Business Owner Sentenced to Two Years in Prison for $1.5 Million COVID-Relief Fraud SchemeRead the Press Release
BOSTON – The owner of a Massachusetts-based food truck business was sentenced yesterday in federal court in Boston for filing fraudulent loan applications in order to obtain $1.5 million in pandemic relief under the Coronavirus Aid, Relief and Economic Security (CARES) Act and the American Rescue Plan Act.
Loc Vo, 56, of Brighton, Mass., was sentenced by U.S. Senior District Court Judge William G. Young to two years in prison and two years of supervised release. Vo was also ordered to pay $1,516,606 in restitution and forfeiture. Vo pleaded guilty to one count of wire fraud in January 2023.
Vo owned Smart Gourmet LLC (Smart Gourmet), a food truck business in Massachusetts, and Indy Publish, a dormant Maryland company. Between April 2020 and July 2021, Vo submitted loan applications on behalf of these businesses under three Small Business Administration pandemic relief programs: the Paycheck Protection Program, the Economic Injury Disaster Loan Program and the Restaurant Revitalization Fund . In these applications, Vo requested approximately $1.5 million and committed to use the funds for rent, mortgage interest, payroll and utilities, among other eligible expenses.
After receiving the relief funds, Vo immediately transferred most of them to brokerage accounts in his name to purchase shares in an electric car manufacturer, an internet marketplace company and a biotechnology company, among others.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP. Another is the EIDL, through which the SBA offers loans that can only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred. The American Rescue Plan Act established the RRF to provide funding to help restaurants and other eligible businesses keep their doors open through forgivable loans for eligible uses.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Returns Manuscript Signed by Conquistador Hernando Cortés in 1527 to Mexico's National ArchivesRead the Press Release
BOSTON – A nearly 500-year-old manuscript signed by Conquistador Hernando Cortés in 1527 has been returned to the Archivo General de la Nación de México – Mexico’s national archives located in Mexico City. On July 19, 2023, the United States Attorney’s Office for the District of Massachusetts, along with representatives from the Federal Bureau of Investigation, participated in a formal repatriation ceremony at Mexico’s national archives, where the manuscript is believed to have been unlawfully removed from sometime before 1993. In November 2022, the U.S. Attorney’s Office filed a civil forfeiture action against the manuscript to ensure its lawful return. It is a violation of federal law to transport or receive stolen goods valued at more than $5,000 that have traveled in foreign or interstate commerce.
“After missing for decades, thanks to incredible international collaboration and persistence the Cortés manuscript is finally where it belongs back in Mexico, where it will remain a treasured part of Mexico’s history and heritage,” said Acting U.S. Attorney Joshua S. Levy. “I want to commend the asset recovery prosecutors in the U.S. attorney’s office whose hard work and dedication led to the return of this priceless and historically important artifact. We were honored to have assisted in this effort.”
The manuscript is a payment order signed by Cortés on April 27, 1527 authorizing the purchase of rose sugar for the pharmacy in exchange 12 gold pesos. It is believed to be one of several documents unlawfully removed from a collection of documents concerning a Spanish expedition to Central America in 1527 that is housed in Mexico’s national archives.
According to the civil complaint, in early 2022, an individual consigned the Cortés manuscript for online auction at a Massachusetts auction house. Mexican authorities alerted federal authorities in the United States that the manuscript being auctioned appeared to have been stolen. In turn, the auction house removed the manuscript from the upcoming auction and the manuscript was recovered.
The United States Attorney’s Office obtained a final order of forfeiture on February 27, 2023, and thereafter the Department of Justice authorized the manuscript’s return to Mexico.
“We are incredibly honored to be able to assist in the return of this national treasure to the people of Mexico. This manuscript, which is nearly five centuries old, preserves an important part of Mexico’s history, and reflects the FBI’s ongoing commitment to protect cultural heritage, not only in the United States but around the world,” said Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation Boston Division. “The recovery of this priceless artifact is a direct result of our close and ongoing collaboration with the government of Mexico, and we are very thankful for their partnership.”
Anyone with information on stolen art and cultural property are encouraged to contact the FBI at 1-800-CALL FBI (1-800-225-5324). Tips may also be submitted online at https://tips.fbi.gov/.
Acting U.S. Attorney Levy and FBI Acting SAC DiMenna made the announcement. The civil forfeiture action was prosecuted by Assistant U.S. Attorney Carol E. Head, Chief of the Asset Recovery Unit. The Justice Department’s Office of International Affairs Mutual Legal Assistance Team provided crucial legal assistance to the Government of Mexico.
New Bedford Man Sentenced for Role in Fentanyl Trafficking OrganizationRead the Press Release
BOSTON – A New Bedford man was sentenced today in federal court in Boston for his role in a drug trafficking organization (DTO) operating in Southeastern Massachusetts and Rhode Island.
Jason Cruz, 42, was sentenced by U.S. District Court Judge Allison D. Burroughs to 16 months in prison and three years of supervised release. In May 2023, Cruz pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl.
Between approximately April 2022 and approximately June 2022, Cruz purchased fentanyl from the DTO that he then redistributed to others. Intercepted communications depicted Cruz discussing purchasing fentanyl from the DTO. In addition, surveillance footage showed other members of the DTO visiting Cruz’s residence for brief periods of times, often times consistent with illegal drug trafficking.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; New Bedford Police Chief Paul Oliveira; and Fairhaven Police Chief Michael J. Myers made the announcement today. Special assistance was provided by the Massachusetts State Police; Homeland Security Investigations; Bristol County Sherriff’s Office; and Fall River, Taunton, Attleboro, Scituate, Yarmouth, Providence (R.I.) and West Warwick (R.I.) Police Departments. Assistant U.S. Attorney John T. Mulcahy of the Narcotics & Money Laundering Unit 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.
Two Lawrence Men Plead Guilty to Conspiring to Distribute Fentanyl at Veterans Affairs Medical Center in BedfordRead the Press Release
BOSTON – Two Lawrence men have pleaded guilty in federal court in Boston to conspiring to distribute fentanyl to individuals at the Bedford Veterans Affairs Medical Center.
Deiby Bladimil Casado Ruiz, 30, and Pedro Antonio Sanchez Bernabel, 31, both of Lawrence, pleaded guilty on July 21, 2023 to one count each of conspiracy to distribute fentanyl and distribution of fentanyl. U.S. District Court Judge Indira Talwani scheduled Casado Ruiz’s sentencing for Nov. 1, 2023 and Bernabel’s sentencing for Nov. 6, 2023. The defendants were charged in November 2022
Between July 27, 2022 and November 2022, Casado Ruiz and Bernabel conspired to distribute more than 40 grams of fentanyl. Specifically, the defendants sold fentanyl to individuals at the Veterans Affairs Medical Center in Bedford, including one veteran who was seeking treatment at the Medical Center for a substance use disorder.
The charge of conspiracy to distribute and possess with intent to distribute fentanyl and the charge of distribution of fentanyl each provides for a maximum sentence of 20 years in prison, at least three years of supervised release and a maximum fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Christopher Algieri, Special Agent in Charge of the VA Office of Inspector General’s Northeast Field; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance in the investigation was provided by the Bedford VA Medical Center Police Service and the Lawrence Police Department. Assistant U.S. Attorneys Patrick Callahan, Lauren Graber and Kelly Lawrence of the Health Care Fraud Unit are prosecuting the case.
Somerville Man Sentenced to Nearly Nine Years in Prison for Methamphetamine ConspiracyRead the Press Release
BOSTON – A Somerville man was sentenced on July 19, 2023 in federal court in Boston for his role in a methamphetamine trafficking conspiracy.
William Velez, 41, was sentenced by U.S. District Court Judge Denise J. Casper to 105 months in prison and three years of supervised release. In March 2022, Velez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 50 grams or more of methamphetamine.
In or about October 2019 through in or about September 2020, Velez and others conspired to distribute and possessed with intent to distribute methamphetamine throughout the Everett and Boston areas.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division made the announcement today. Assistant United States Attorney Alathea Porter of the Narcotics & Money Laundering Unit prosecuted the case.Reading Owner of Telemedicine Companies Charged with $44 Million Medicare Fraud SchemeRead the Press Release
BOSTON – The owner of Conclave Media (Conclave) and Nationwide Health Advocates (Nationwide) has been charged and has agreed to plead guilty in connection with a $44 million telemedicine fraud scheme involving medically unnecessary durable medical equipment (DME), including orthotics such as back and knee braces, and genetic tests.
David Santana, 38, has agreed to plead guilty to one count of conspiracy to commit health care fraud. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, between January 2018 and August 2021, Santana, through his companies Conclave and Nationwide, entered into business relationships with telemarketing companies that generated leads by targeting Medicare beneficiaries. The telemarketers then allegedly paid Conclave and Nationwide on a per-order basis to generate orders for DME and genetic testing for these beneficiaries. To arrange for these orders to be signed, Santana allegedly worked with medical staffing companies to find doctors and nurses who were willing to review and sign prepopulated orders, typically without any contact with the beneficiaries. It is alleged that the records falsely portrayed the medical providers as having performed a legitimate examination of the beneficiary. Santana then allegedly provided the signed orders to the telemarketing companies which sold the orders to DME suppliers and laboratories. It is alleged that Santana knew these DME suppliers and laboratories would use the signed orders to submit claims to Medicare for DME and genetic testing that were medically unnecessary, based on false documentation and tainted by kickbacks.
The charge of conspiracy to commit health care fraud provides for a sentence of up to 10 years in prison, supervised release for up to three years, and a fine of up to $250,000 or twice the gross pecuniary 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; Robert Coviello, Special Agent in Charge, Health and Human Services-Office of Inspector General; Christopher DiMenna, Acting Special Agent in Charge, Federal Bureau of Investigations, Boston Division; Ketty Larco-Ward, Inspector in Charge, United States Postal Inspection Service, Boston Division; Carol S. Hamilton, Regional Director, Employee Benefits Security Administration, U.S. Department of Labor; and Patrick Hegarty, Special Agent in Charge, Defense Criminal Investigation Service, North East Field Office made the announcement today. Assistant U.S. Attorneys Howard Locker and Lauren Graber of the Health Care Fraud Unit and Alexandra Brazier and Lindsey Ross of the Affirmative Civil Enforcement Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lawrence Man Pleads Guilty to Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence man has pleaded guilty in federal court in Boston to his role in a fentanyl trafficking conspiracy.
Eddy Reyes Tejada, 51 pleaded guilty on July 20, 2023 to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl; one count of distribution and possession with intent to distribute 40 grams or more of fentanyl; and one count of distribution and possession with intent to distribute 400 grams or more of fentanyl. U.S. District Judge Nathaniel M. Gorton scheduled sentencing for Oct. 19, 2023. Tejada was indicted by a federal grand jury in December 2022.
Between January and December 2022, Tejada conspired to distribute fentanyl in and around the Lawrence area. Specifically, on June 14, 2022, Tejada distributed 40 grams or more of fentanyl in Lawrence. On Sept. 6, 2022, Tejada distributed 400 grams or more of fentanyl in Lawrence.
The charges of conspiracy to distribute 400 grams or more of fentanyl and of distribution of 400 grams or more of fentanyl each provide for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. 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 and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 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; Christopher DiMenna, Acting 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. Valuable assistance in the investigation was provided by the U.S. Postal Inspection Service and the Fitchburg and Lunenburg Police Departments. Assistant U.S. Attorney Alathea Porter of the Narcotics & Money Laundering Unit 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.
Federal Prison Employee Charged with Accepting Payments from High-Net-Worth InmateRead the Press Release
BOSTON – A Correctional Counselor for the Bureau of Prisons (BOP) assigned to Federal Medical Center Devens (FMC Devens) in Massachusetts has been charged with accepting payments from an inmate under his care, in violation of his duties as a public official. The defendant is also charged with lying to a bank about a loan he received from the inmate’s business associate and forging the associate’s signature to support this false claim.
William S. Tidwell, 49, of Keene, N.H., was charged by Information in federal court in Boston with receipt of payments by a public official in violation of his official duties, making false statements to a bank and identity theft. Tidwell will appear in federal court in Boston at a later date.
According to the charging documents, Tidwell has been employed by the BOP since 2000 and has been working at FMC Devens since 2008. According to BOP’s rules and policies that govern the duties and conduct of its employees, employees may not receive any payments, gifts, or personal favors from inmates, give preferential treatment to any inmate in the performance of their duties, or engage in outside employment that conflicts with their duties.
In approximately 2014, Tidwell began working as a Correctional Counselor at FMC Devens, a position that give him significant levels of contact with, and authority over, inmates. Among other things, Tidwell was responsible for monitoring inmate work assignments, assigning inmate housing assignments, arranging inmate legal calls and coordinating prison visits for inmates. One of the inmates for whom Tidwell served as a Correctional Counselor was Individual 1 – an ultra-high net worth individual who had been convicted on federal charges in another jurisdiction. It is alleged that, starting in approximately 2018, Individual 1 caused a stream of benefits to be paid to Tidwell.
In November 2018, Tidwell supervised Individual 1, who allegedly directed a close friend and business associate (Individual 2) to wire $25,000 to Tidwell’s close family member. Thereafter, starting in 2019, Tidwell and Individual 1 allegedly entered into an agreement pursuant to which Individual 1 would direct thousands of dollars to Tidwell as part of a property management agreement, which used Individual 2 as the conduit through which payments were made to Tidwell. In total, between 2019 and 2020, Tidwell allegedly received over $65,000 in benefits as part of this property management agreement with Individuals 1 and 2. Tidwell’s alleged receipt of payments and his employment relationship with an inmate or a close associate of an inmate violated his official duties as a BOP employee.
Separately, in 2020, it is alleged that Tidwell sought to purchase a home. In connection with seeking financing for the home purchase, Tidwell allegedly received a $50,000 loan from Individual 2. Tidwell also allegedly made multiple false statements to the bank in connection with his loan application, falsely telling the bank that the $50,000 was a gift from his employer. It is further alleged that when the bank asked for written proof of this purported gift, Tidwell forged documents to support his earlier claim, including by unlawfully using Individual 2’s name and address, and forging Individual 2’s signature.
“Corrections officers are placed in a position of public trust. The vast majority of corrections officers carry out their duties with integrity and professionalism. They know that accepting payments from an inmate – as is alleged against Mr. Tidwell here – is a serious violation of that trust and a betrayal of the BOP’s mission to care FOR federal inmates in a safe and impartial manner. This office is committed to holding public officials accountable when they exploit their power or official position to enrich themselves and compromise the public interest,” said Acting United States Attorney Joshua S. Levy.
“William Tidwell is alleged to have abused his authority and abandoned his duty after he befriended an inmate in his care and accepted tens of thousands of dollars from him,” said Christopher DiMenna. Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s arrest underscores the importance the criminal justice system places on policing its own. Make no mistake, the FBI will continue to work with our partners to root out public corruption wherever it may lie because it not only undermines the integrity of our government but is a violation of the public’s trust.”
“The safety and security of federal prisons depends on the integrity of Correctional Officers. By allegedly accepting tens of thousands of dollars from an inmate, Tidwell compromised his integrity and jeopardized the safety and security of the institution,” said Ryan T. Geach, Special Agent in Charge of the Department of Justice Office of the Inspector General New York Field Office.
The charge of receiving payments in violation of official duties 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 making false statements to a bank provides for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of up to $1 million. The charge of identity 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. 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 Acting SAC DiMenna and DOJ-OIG SAC Geach made the announcement today. Valuable assistance in the investigation was provided by the Federal Bureau of Prisons. Assistant U.S. Attorneys Kunal Pasricha and Mark Grady of the Criminal Division are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Venezuelan Man Pleads Guilty to Distributing Thousands of Fentanyl PillsRead the Press Release
BOSTON – A Venezuelan man pleaded guilty today in federal court in Boston to trafficking fentanyl.
Frank Bienvenido Perez Diaz, 42, pleaded guilty to one count of distribution and possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Angel Kelley scheduled sentencing for Nov. 15, 2023.
On April 16, 2021, Perez Diaz sold over 2,000 counterfeit fentanyl pills to a cooperating witness.
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, as well as at least four years of supervised release, and a fine of up to $5,000,000. Perez Diaz will be subject to deportation upon completion of his sentence. 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 and Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance in the investigation was provided by the Massachusetts Department of Correction and the Norfolk Sheriff’s Office. Assistant U.S. Attorney Alathea Porter of the Narcotics & Money Laundering Unit 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.
Melrose Man Pleads Guilty to $375,000 Bank FraudRead the Press Release
BOSTON – A bank teller supervisor pleaded guilty today in federal court in Worcester for his role in defrauding his employer out of $375,000.
Pablo Rocha, 32, of Malden, pleaded guilty to one count of bank fraud. U.S. Senior District Court Judge Timothy S. Hillman scheduled sentencing for Nov. 16, 2023. Rocha was charged on June 26, 2023.
Between July 2022 and December 2022, Rocha worked as a bank teller supervisor at a federally insured bank in Massachusetts. Rocha used his access to the bank’s vault to steal cash. Rocha then covered his tracks by writing false entries in the bank’s records and by processing fake transactions in the bank’s electronic records system to make it appear that the cash had been shipped to the Federal Reserve Bank of Boston. In total, Rocha stole approximately $375,000.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release, restitution and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation Boston Division made the announcement. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Dominican Man Sentenced to over Seven Years in Prison for Fentanyl and Cocaine Trafficking and Illegal ReentryRead the Press Release
BOSTON – A Dominican man has been sentenced in federal court in Boston for trafficking fentanyl and cocaine, and for unlawful reentry of a deported alien.
Francisco Alberto Martinez, 52, was sentenced on July 19, 2023 by U.S. District Court Judge Nathaniel M. Gorton to 87 months in prison and five years of supervised release. On April 19, 2023, Martinez pleaded guilty to one count of distribution and possession with intent to distribute cocaine; three counts of distribution and possession with intent to distribute fentanyl; three 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 40 grams or more of fentanyl and cocaine; one count of possession with intent to distribute 40 grams or more of fentanyl and cocaine; and one count of unlawful reentry of a deported alien.
On nine separate occasions between August 2018 and May 2019, Martinez sold fentanyl and cocaine to a cooperating witness. Martinez first unlawfully entered the United States on an unknown date. In 2010, he was convicted in federal court in Boston of cocaine conspiracy and sentenced to 66 months in prison. Upon completion of his sentence in 2014, Martinez was deported to the Dominican Republic. Sometime after his removal, Martinez unlawfully reentered the United States and continued to distribute controlled substances.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Peabody Police Chief Thomas M. Griffin made the announcement. Valuable assistance in the investigation was provided by the Massachusetts Department of Correction; Norfolk Sheriff’s Office; the Suburban Middlesex County Drug Task Force; and the Peabody, Concord, Reading, Watertown, Braintree, Waltham, Woburn, Salem, Revere, and Beverly Police Departments. Assistant U.S. Attorneys Craig Estes, Charles Dell’Anno and Alathea Porter of the Criminal Division are prosecuting the case.This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Quincy Man Pleads Guilty to Child Pornography OffenseRead the Press Release
BOSTON – A Quincy man pleaded guilty in federal court today to receiving child pornography.
Matthew Ormon, 51, pleaded guilty to one count of receipt of child pornography. U.S. District Court Judge Denise J. Casper scheduled sentencing for Oct. 18, 2023. Ormon was indicted on Jun. 7, 2022
During a search of Ormon’s residence on Apr. 5, 2022, multiple electronic devices, including two custom built computers and a network drive device were seized. At least one device was found to contain a folder with numerous videos depicting child pornography.
The charge of receipt of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of $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.
United States Attorney Joshua S. Levy and Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement. Special assistance was provided by the Quincy Police Department. Assistant U.S. Attorneys Charles Dell’Anno and Meghan C. Cleary of the Criminal Division are prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Needham Police Officer Convicted of Insider Trading ConspiracyRead the Press Release
BOSTON – A Needham police officer was convicted today by a federal jury in Boston of conspiring to trade on inside information about a Massachusetts company’s planned acquisition of a California semiconductor company.
David Forte, 60, of Acton, was convicted of one count of conspiracy to commit securities fraud and one count of securities fraud. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Oct. 24, 2023. Forte was charged in January 2020 along with two alleged co-conspirators. In June 2022, one of those co-conspirators, John Younis, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to one month of home detention and two years of probation after pleading guilty to his role in the conspiracy. The second alleged co-conspirator has pleaded not guilty and is pending trial.
Beginning in or around June 2016, Forte, a Needham Police Department officer, obtained material non-public information from his brother, who was a senior executive at Analog Devices, Inc. (Analog), a Wilmington, Mass.-based semiconductor company, about Analog’s planned acquisition of Linear Technology Corp. (Linear), a semiconductor company based in Milpitas, Calif. Forte passed the information to Younis and, allegedly, the second-co-conspirator, who purchased Linear securities in the week leading up to the public announcement of the acquisition on July 26, 2016. After the deal was announced, Younis and, allegedly, the second co-conspirator sold their Linear securities for a profit. Younis and, allegedly, the other co-conspirator paid Forte cash kickbacks in exchange for Forte’s stock tip.
“Today, a federal jury found that Mr. Forte cheated the securities markets. He engaged in a conspiracy to trade on inside information. He illegally had tomorrow’s news today. Mr. Forte thought he could use his connections to make a quick buck by tilting the scale for his close friends’ financial benefit,” said Acting United States Attorney Joshua S. Levy. “Insider trading is cheating, plain and simple. It hurts honest investors and damages the public’s confidence that our markets are open and fair. This office and our law enforcement partners will maintain the integrity of our financial markets and prosecute those who seek to corrupt them for their personal gain.”
“David Forte thought he was above the law when he conspired with childhood friends to trade on material, non-public information. Today’s conviction sends an unambiguous message that the temporary gains of insider trading will lead to life-long consequences, including being a felon,” said Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Insider trading undermines faith in our financial markets and harms the everyday investors who play by the rules. The FBI takes this crime seriously. If you choose to conduct this type of illegal behavior, know that we will ensure you are held accountable.”
The charge of conspiracy to commit securities fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of securities fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Levy and FBI Acting SAC DiMenna made the announcement today. The Securities & Exchange Commission provided valuable assistance. Assistant U.S. Attorneys David M. Holcomb and Leslie A. Wright of the Securities, Financial & Cyber Fraud Unit are prosecuting the case.
The details contained in the charging document are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Marlboro Man Arrested for Child Pornography OffensesRead the Press Release
BOSTON – A Marlboro man has been charged with allegedly receiving, possessing and distributing child pornography.
Larry Stephen, 44, was charged with one count of receipt, distribution, and possession of child pornography. Stephen was arrested on June 18, 2023 and was released on conditions following an initial appearance in federal court in Boston before U.S. District Court Magistrate Judge M. Page Kelley.
According to the charging documents, authorities identified Stephen as an individual allegedly using a social media platform to receive and post child pornography. On June 7, 2023, a search warrant was executed at Stephen’s Marlboro residence where Stephen’s cell phone was seized. A preliminary examination of the cell phone allegedly revealed the presence of child pornography.
For the charge of receipt, distribution, and possession of child pornography, the defendant faces a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Acting Special Agent in Charge, Homeland Security Investigations, in New England; and Jennifer De La O, Director of Field Operations, U.S. Customs and Border Protection, Boston Field Office made the announcement today. Valuable assistance was provided by the Marlboro Police Department. Assistant U.S. Attorney David G. Tobin of the Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
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.
Brockton Man Sentenced for Pandemic Unemployment FraudRead the Press Release
BOSTON – A Brockton man has been sentenced in federal court in Boston for using others’ identities to fraudulently obtain over $60,000 in Pandemic Unemployment Assistance (PUA) Benefits and for using one of those identities to fraudulently obtain a Massachusetts driver’s license.
Francisco Jose Peguero Brea, 48, was sentenced on July 14, 2023 by U.S. District Court Judge Rya Zobel to three months in prison and three years of supervised release. In February 2023, Peguero pleaded guilty to one count of wire fraud and one count of false representation of a Social Security number.
Peguero used the name and Social Security number of a U.S. citizen to fraudulently apply for and obtain PUA benefits as well as a Massachusetts Driver’s License. Peguero received additional PUA benefits from another claim that directed the funds to be deposited into a bank account controlled by Peguero and another individual.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England made the announcement. Valuable assistance was provided by the U.S. Department of Labor, Office of Inspector General; U.S. Department of Health and Human Services, Office of Inspector General; U.S. Department of State, Diplomatic Security Service; U.S. Postal Inspection Service; Massachusetts State Police; and the Brockton Police Department. Assistant U.S. Attorney Benjamin A. Saltzman of the Criminal Division prosecuted the case.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, 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.
Worcester Man Sentenced to 12 Years in Prison for Possessing and Distributing Counterfeit Adderall Pills Containing MethamphetamineRead the Press Release
BOSTON – A Worcester man was sentenced today in federal court in Worcester for a conspiracy to distribute methamphetamine disguised as counterfeit Adderall pills.
Nestiano Kristo, 22, was sentenced by U.S. District Court Judge Margaret R. Guzman to 12 years in prison and five years of supervised release. On March 17, 2023, Kristo pleaded guilty to three counts of distribution of 50 grams or more of methamphetamine; one count of possession with intent to distribute 50 grams or more of methamphetamine and 500 grams or more of cocaine; and one count of possession of a firearm in furtherance of a drug trafficking crime.
Over the course of two months, Kristo sold significant quantities of counterfeit Adderall pills containing methamphetamine, cocaine and fentanyl to an undercover law enforcement officer. Specifically, on May 10, 2021, Kristo provided approximately 1,000 counterfeit Adderall pills containing methamphetamine to the undercover officer, as well as providing cocaine to advertise what else he could supply. On May 18, 2021, Kristo arranged to sell 2,000 pills containing methamphetamine to the undercover. He sent an associate to deliver the pills while he waited in a nearby car. On June 2, he again provided over 1100 pills containing methamphetamine to the undercover officer. A search of Kristo’s home in June 2021 recovered over 50,000 counterfeit Adderall pills, over $140,000 in cash, cocaine, counterfeit Xanax, fentanyl, as well as three firearms – one of which was modified into a fully automatic weapon.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; John E. Mawn, Jr. Interim Colonel of the Massachusetts State Police; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Kristen Noto of the Worcester Branch Unit prosecuted the case.
Veterans Affairs Medical Center Employee Sentenced to Eight Years in Prison for Child Pornography OffensesRead the Press Release
BOSTON – A Royalston man was sentenced today in federal court in Springfield in connection with distributing child pornography using the Wi-Fi of a Veterans Affairs (VA) Medical Center.
Kevin A. Divoll, 51, was sentenced by U.S. District Court Judge Mark G. Mastroianni to eight years in prison and five years of supervised release. Divoll was also ordered to pay $5,000 each to two of the identified victims. On April 24, 2023, Divoll pleaded guilty to one count of distribution of child pornography and one count of possession of child pornography.
Divoll, a former employee of the VA Medical Center in Leeds, was identified as the owner and user of a device distributing child pornography over the VA Medical Center’s public Wi-Fi from May 2022 through July 2022. During a search of his residence on Aug. 4, 2022, Divoll was found to be in possession of child pornography that involved a prepubescent minor and a minor who had not attained 12 years of age.
Acting United States Attorney Joshua S. Levy and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office, made the announcement. Significant assistance was provided by the Leeds VA Medical Center Police. Assistant U.S. Attorney Catherine G. Curley of the Springfield Branch Office prosecuted the case.
Martha's Vineyard Man Charged with Armed Robbery of Falmouth BankRead the Press Release
BOSTON – An Edgartown, Mass. man has been charged with the April 8, 2023 armed robbery of a bank in Falmouth, Mass. Defendant allegedly zip-tied individuals in the bank; brandished a firearm; placed a purported bomb on the counter; and fled the scene in the vehicle of a bank customer.
Petar Petyoshin, 40, was charged with one count of armed bank robbery. Petyoshin was previously arrested on related state charged on May 23, 2023. He remains in state custody and will appear in federal court in Boston at a later date.
According to the charging documents, at approximately 8:58 a.m. on April 8, 2023, Petyoshin entered the Rockland Trust Bank in Falmouth wearing a blonde wig, placed an alleged bomb on the teller counter and brandished a firearm. It is alleged that 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 allegedly had two additional tellers place over $20,000 in cash from the bank into a brown Walmart bag, took a customer’s car keys and fled the scene in the customer’s vehicle.
It is alleged that surveillance footage from the surrounding area captured that approximately 30 minutes prior to the robbery, a man matching Petyoshin’s description entered a nearby grocery store parking lot in a grey van, remained in the vehicle for approximately 18 minutes, then exited the van and walked on foot in the direction of the bank. The individual can be seen returning to the vehicle from the direction of the bank approximately 15 minutes after the robbery. Additional surveillance footage captured the van travelling on the highway in the direction of Mashpee, Mass. following the robbery.
The investigation later identified that, on the morning of the robbery, a vehicle matching the van’s description departed Martha’s Vineyard aboard a Steamship Authority vessel at 7 a.m. and arrived at Woods Hole in Falmouth, Mass. The van also had a scheduled return trip to Martha’s Vineyard later the same day, at 1:15 p.m. Surveillance footage obtained from the Steamship Authority depict a sole operator in the van who was wearing the same sneakers worn by the bank robber.
According to the charging documents, Petyoshin was subsequently identified as the registered owner of the van and cell site information located Petyoshin as being in the area of bank in Falmouth at the time of the robbery. It is further alleged that the Facebook page for Petyoshin’s clothing store, Dapper Martha’s Vineyard, displayed photos of clothing including the same jacket, sunglasses and wig worn by the bank robber.
On May 23, 2023, Petyoshin was arrested on state charges in connection with the robbery. According to court documents, 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. It is further alleged that 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 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; John. E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division 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.
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.
The referenced media source is missing and needs to be re-embedded.Brookline Man Pleads Guilty to Possessing Machine GunsRead the Press Release
BOSTON – A Brookline man pleaded guilty in federal court today to illegally possessing two machine guns.
Stewart Silvestri, 24, pleaded guilty to one count of unlawful possession of machine guns. U.S. District Court Judge Denise J. Casper scheduled sentencing for Oct. 12, 2023. Silvestri was charged by criminal complaint on Nov. 16, 2022.
On Oct. 15, 2022, law enforcement responded to multiple calls for 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, law enforcement observed Silvestri 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.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; 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 is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Boston Woman Sentenced for Physical Therapy Clinic Fraud SchemeRead the Press Release
BOSTON – A Boston woman was sentenced today in federal court in Boston in connection with a scheme to defraud multiple insurance providers for physical therapy services that were not provided to patients.
Raya Bagardi, 38, was sentenced by U.S. District Court Judge Richard G. Stearns to time served (one day) and two years of supervised release, with the first year to be spent in home confinement. Bagardi was also ordered to pay restitution in the amount of $2,301,645. In March 2023, Bagardi pleaded guilty to one count of conspiracy to commit mail fraud. Bagardi was indicted in February 2021 along with co-defendants Gyulnara Bayryshova, Anna Barenboym and Slava Pride.
Bagardi was a licensed physical therapy assistant at Brighton Physical Therapy (BPT), a Brighton-based physical therapy clinic owned by Bayryshova. From October 2018 through June 2020, Bayryshova, Bagardi and their co-defendants conspired to be reimbursed by multiple insurance companies for physical therapy services that were not actually provided and/or were not medically necessary and, in some cases, were provided by individuals not licensed to provide the services. Specifically, Bagardi and her co-defendants falsely billed for services purportedly rendered to patients injured in automobile accidents when the services were not actually provided. Further, BPT paid patients for referrals and referred patients to attorneys to assist with patients’ insurance settlements.
All three of Bagardi’s co-defendants have pleaded guilty to their roles in the conspiracy. On July 12, 2023, Pride was sentenced to two years in prison and two years of supervised release. Pride was also ordered to pay restitution of $2,301,645. Bayryshova and Barenboym are scheduled to be sentenced on July 26, 2023 and September 2023, respectively.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; Boston Police Commissioner Michael Cox; and Quincy Police Chief Mark Kennedy made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of the Criminal Division prosecuted the case.
New Hampshire Woman Charged in Tyngsborough Daycare InvestigationRead the Press Release
BOSTON – A New Hampshire woman and the former intimate partner of Tyngsborough, Mass. daycare worker, Lindsay Groves, has been charged with child exploitation.
Stacie Marie Laughton, 39, of Nashua, N.H., was charged with one count of sexual exploitation of children – and aiding and abetting. Laughton will appear in federal court in Boston at a later date.
According to the charging documents, a preliminary forensic review of Groves’ cellphone allegedly revealed over 10,000 text messages between Laughton and Groves that included discussion about, and transfer of, explicit photographs that Groves had taken of children while employed at Creative Minds daycare – including at least four sexually explicit images of children who appear to be approximately three to five years old, as well as explicit descriptions of sex with each other and others, including children. The investigation remains ongoing.
Groves was arrested and charged on June 22, 2023 with one count of sexual exploitation of children and one count of distribution of child pornography. Following a detention hearing on July 13, 2023, the Court took the federal government’s motion for detention under advisement. Groves remains in state custody in New Hampshire.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274. Case information, including links to charging documents and victim resources, can be found here: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/united-states-v-lindsay-groves
The charge of sexual exploitation of children provides for a sentence of at least 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; and Nashua (N.H.) Police Chief Kevin Rourke made the announcement today. Valuable assistance was provided by the U.S. Attorney’s Office for the District of New Hampshire; Middlesex County District Attorney’s Office; and the Hudson, N.H. Police Department. Assistant U.S. Attorneys Anne Paruti and Jessica L. Soto 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.
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.
Springfield Man Convicted of Sex Trafficking a Minor He Solicited over FacebookRead the Press Release
BOSTON – A Springfield man has been convicted by a federal jury for sex trafficking of a minor under 14 years old.
Carlos Casillas, 51, was convicted on July 14, 2023 following a three-day jury trial of one count of sex trafficking of a minor. A sentencing date has not yet been scheduled by the court.
In September 2021, an investigation began into Casillas for sex trafficking activity involving a 13-year-old girl living in a group home in the custody of the Massachusetts Department of Children and Families. Evidence presented at trial established that Casillas solicited the minor victim using Facebook messenger, picked the minor victim up from her group home and eventually took her to a local motel.
“Carlos Casillas preyed on a vulnerable 13-year-old girl in state custody. His conduct was beyond horrific and now he will face the lengthy sentence of incarceration the law requires for sex trafficking of a minor. This office and the incredibly dedicated federal, state and local law enforcement partners we work with will never cease in our efforts to protect children from sexual exploitation,” said Acting United States Attorney Joshua S. Levy.
“Casillas preyed upon a child in a vulnerable situation. Now, he has been convicted of trafficking a minor and is facing a significant federal sentence. Homeland Security Investigations works every day to bring predators like Casillas to justice and to help connect victims to assistance to heal and move forward,” said Michael J. Krol, Acting Special Agent in Charge for Homeland Security Investigations in New England.
Members of the public who believe they, or someone they know, may be a victim of this crime should contact [email protected]. If you or someone you know may be impacted or experiencing commercial sex trafficking, please visit https://polarisproject.org/ for information and resources.
The charge of sex trafficking of a minor under 14 years old provides for a sentence of at least 15 years in prison, five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy; HSI Acting SAC Krol; Hampden County District Attorney Anthony D. Gulluni; Hampden County Sheriff Nicholas Cocchi; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorneys Catherine G. Curley and Deepika Bains Shukla of the Springfield Branch Office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former Employee of Taste of Brazil Restaurant in Woburn Sentenced for Transferring False Identification DocumentsRead the Press Release
BOSTON – A Salvadoran man and former employee of the Taste of Brazil – Tudo Na Brasa restaurant in Woburn was sentenced today in federal court in Boston for providing false identification documents to Brazilian employees of the restaurant who lacked work authorization.
Marcos Chacon Gil, 29, was sentenced by U.S. District Court Judge Allison D. Burroughs to time served (approximately 10 months in prison) and two years of supervised release. On May 23, 2023, Chacon Gil pleaded guilty to one count of transferring false identification documents.
Chacon Gil worked at Taste of Brazil for three years beginning in 2014. Beginning in approximately 2018, Chacon Gil provided false identification documents to Brazilian employees of the restaurant who lacked work authorization in the United States. Chacon Gil did so in order for the employees to secure work authorization. In one instance, on Feb. 20, 2020, Chacon Gil met with an employee and provided the employee with a fake green card and a fake social security card.
Acting United States Attorney Joshua S. Levy; Michael Krol, Acting Special Agent in charge of Homeland Security Investigations in New England; Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General; Harry Chavis, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Woburn Police Chief Robert F. Rufo, Jr. made the announcement today. Valuable assistance in the investigation was provided by the Norwood Police Department. Assistant U.S. Attorneys James D. Herbert, Kelly Lawrence and Samuel R. Feldman of the Criminal Division prosecuted the case.West Roxbury Man Sentenced to Two Years in Prison for Physical Therapy Clinic Fraud SchemeRead the Press Release
BOSTON – A West Roxbury man was sentenced yesterday in federal court in Boston in connection with a scheme to defraud multiple insurance providers for physical therapy services that were not provided to patients.
Slava Pride, 42, was sentenced by U.S. District Court Judge Richard G. Stearns to two years in prison and two years of supervised release. Pride was also ordered to pay restitution of $2,301,645. In November 2022, Pride pleaded guilty to one count of conspiracy to commit mail fraud. Pride was indicted in February 2021 along with co-defendants Anna Barenboym, Gyulnara Bayryshova and Raya Bagardi. Pride pleaded guilty in November 2022.
Pride was a physical therapy assistant at Brighton Physical Therapy (BPT), a Brighton-based physical therapy clinic owned by Bayryshova. Barenboym and Bagardi were also employed at BPT as a licensed physical therapist and a licensed physical therapist assistant, respectively. According to the charging documents, from October 2018 through June 2020, Pride and his co-defendants conspired to cause multiple insurance companies to reimburse them for physical therapy services that were not actually provided and/or were not medically necessary and, in some cases, were provided by individuals not licensed to provide the services. Specifically, Pride and, allegedly, his co-defendants falsely billed for services purportedly rendered to patients injured in automobile accidents when the services were not actually provided. It is further alleged that BPT paid patients for referrals, referred patients to attorneys to assist with patients’ insurance settlements and accepted kickbacks from those attorneys in return.
Pride was one of three defendants to plead guilty in the case. Barenboym and Bagardi previously pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on August 3, 2023 and July 19, 2023, respectively.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; Boston Police Commissioner Michael Cox; and Quincy Police Chief Mark Kennedy made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of the Criminal Division prosecuted the case.
Vancouver Man Extradited to the United States for Role in Penny Stock FraudRead the Press Release
BOSTON – A Vancouver man has been extradited from Canada to the United States for his alleged role in a market manipulation scheme intended to defraud investors in the Boston-based company Endeavor Power Corp.
Marco G. Babini, 62, was arrested in April 2020 and was extradited to the United States on July 7, 2023. Babini made his initial appearance in federal court on July 10, 2023 and was arraigned on July 12, 2023, at which time a federal magistrate judge took his pretrial detention under advisement. Babini was indicted in September 2015 on one count of conspiracy to commit securities fraud and wire fraud; one count of securities fraud; and two counts of wire fraud.
According to the charging documents, between approximately July 2012 and March 2013, Babini allegedly conspired to manipulate the securities of Endeavor. Specifically, it is alleged that Babini and others executed a scheme in which Babini secretly controlled and accumulated a significant portion of the purportedly unrestricted shares of Endeavor without making the legally mandated disclosures to the public. While doing so, Babini and others allegedly engaged in manipulative stock trading transactions and then orchestrated a promotional campaign for the purpose of facilitating the fraudulent dump of their shares into the market, a course of conduct commonly known as a “pump-and-dump.”
Babini’s alleged co-conspirators Edward Withrow III and Samuel Brown were previously charged with and convicted of federal offenses. In May 2018, Withrow pleaded guilty to one count of making false statements to the U.S. Securities & Exchange Commission (SEC). Brown separately pleaded guilty in July 2015 to one count of conspiracy to commit securities fraud and wire fraud and one count of making false statements to the SEC. Withrow and Brown were sentenced in December 2018 and January 2019, respectively.
The charges or conspiracy and securities fraud each provide for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000, or twice the amount involved, whichever is greater. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the amount involved, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua Levy and Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The U.S. Justice Department’s Office of International Affairs and the Department of Justice Canada provided valuable assistance. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.