District of Massachusetts
Press releases recorded for this federal judicial district.
Pittsfield Nurse Sentenced for Stealing Fentanyl from Critical Care PatientRead the Press Release
BOSTON – A registered nurse was sentenced today in federal court in Springfield for stealing fentanyl being administered to a critical care patient.
Jessica Lotto, 37, of Pittsfield, was sentenced by U.S. District Court Judge Mark G. Mastroianni to three months in prison and one year of supervised release. On May 31, 2022, Lotto pleaded guilty to one count of acquiring a controlled substance by fraud, deceit or subterfuge.
In February 2019, while working as a nurse at Berkshire Medical Center, Lotto entered a patient’s room in the critical care unit where she used a syringe to steal fentanyl being administered to the patient through an IV line. The patient was sedated and unaware of Lotto’s actions. Lotto later admitted to taking the drug from the patient.
United States Attorney Rachael S. Rollins; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Margret R. Cooke, Commissioner of the Massachusetts Department of Public Health, made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla, Chief of Rollins’ Springfield Branch Office prosecuted the case.
Haverhill Fentanyl Pill Distributor Arrested for Trafficking Tens of Thousands of Counterfeit PillsRead the Press Release
BOSTON – A Haverhill man has been arrested and charged for allegedly manufacturing and distributing tens of thousands of counterfeit prescription pills containing fentanyl in the Lawrence and Boston areas.
Angel Joel Diaz, a/k/a “Guero,” 34, was charged by criminal complaint with distribution of and possession with intent to distribute 400 grams or more of fentanyl. Diaz was detained following an initial appearance in federal court in Boston yesterday.
“Swallowing a lethal drug can have the exact same deadly outcome as injecting one. With the rise in counterfeit pill distribution, the health and safety of our communities are put at greater risk,” said United States Attorney Rachael S. Rollins. “We believe Mr. Diaz allegedly conspired to sell tens of thousands of these deadly counterfeit pills to areas in our Commonwealth and beyond. During the investigation, approximately 50,000 counterfeit pills were seized along with two pill presses. Each of those pills could result in a fatal overdose and we commend our law enforcement partners for this investigation and arrest which improves public safety.”
“The state of Massachusetts is faced with an opioid crisis unlike ever before,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “Those responsible for distributing lethal drugs like counterfeit pills containing fentanyl to the citizens of Massachusetts need to be held accountable for their actions. DEA will aggressively pursue Drug Trafficking Organizations and individuals who are distributing this poison. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners. It is our mission to target those who seek to profit from the sale of deadly substances.”
According to the charging documents, in January 2023, an investigation began into Diaz’s fentanyl pill manufacturing and distribution operation. On Jan. 10, 2023, an undercover officer contacted Diaz posing as a potential drug customer seeking to purchase counterfeit prescription pills containing fentanyl. It is alleged that Diaz agreed to meet the following day, on Jan. 11, 2023, and provided the undercover officer with 208 fentanyl pills weighing approximately 26 grams. Half of the pills allegedly contained methamphetamine in addition to fentanyl. During the meeting, it is alleged that Diaz told the officer that he manufactures his own fentanyl pills, which he distributes in Lawrence and Boston as well as in New York via mail shipments. Following the meeting, Diaz allegedly maintained communication with the undercover officer about purchasing additional fentanyl pills. During the communications, it is alleged Diaz sent several photos depicting his manufacturing process including images of a blue substance in tin pans, wrapped bricks of suspected fentanyl and blue pills with “M/30” stamped.
It is further alleged that on two subsequent occasions, Jan. 27, 2023 and Feb. 7, 2023, Diaz distributed 5,150 and 8,500 counterfeit prescription pills containing suspected fentanyl to the undercover officer, respectively. On Feb. 14, 2023, Diaz allegedly sent a photo of suspected fentanyl pills to the undercover officer saying that, “even making it with a mask makes you want to vomit and everything.”
On Feb. 15, 2023, Diaz was arrested while carrying a shopping bag of approximately 31,800 fentanyl pills separated into seven plastic bags. According to court documents, during a subsequent search of Diaz’s Haverhill residence, law enforcement found: a pill press with powder residue on it, thousands of pills, pill stamps, several masks and loose powder of various colors; approximately 5,000 suspected fentanyl pills in a heat-sealed bag; suspected fentanyl powder and chemicals used in manufacturing pills; and in the garage a second pill press. In total, approximately 37,000-40,000 fentanyl pills were seized during execution of the search warrant along with the two pill presses, suspected fentanyl powder and various pill-manufacturing paraphernalia.
The charge of distribution of and possession with intent to distribute 400 grams or more of fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins and DEA SAC Boyle made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Haverhill Police Department. Assistant U.S. Attorney Samuel R. Feldman of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Fentanyl Dealer Sentenced to 10 Years in PrisonRead the Press Release
BOSTON – A Lynn man was sentenced yesterday in federal court in Boston on narcotics and firearm charges arising from a traffic stop in Dorchester.
Rahiym Mervin, 30, was sentenced by U.S. District Court Judge Richard G. Stearns to 10 years in prison and three years of supervised release. In September 2022, Mervin pleaded guilty to one count of being a felon in possession of a firearm and one count of possession with intent to distribute fentanyl and cocaine.
On the evening of Dec. 15, 2021, Mervin was observed speeding on Blue Hill Avenue in Dorchester and was subsequently pulled over by local police. A search of Mervin’s rented vehicle resulted in the recovery of a handgun, two high-capacity firearm magazines, 380 grams of cocaine, 96 grams of a fentanyl analog – an extremely potent opioid, substantially more powerful than heroin – and 135 grams of a mixture of methamphetamine, cocaine and caffeine. Most of the narcotics and one of the firearms were concealed in a hide within the vehicle dashboard. Mervin was arrested on scene and has been in custody since.
“A lethal dose of fentanyl is just two milligrams. Every gram of pure fentanyl has 500 lethal doses. A tiny amount of this deadly substance can kill, whether it is pure or mixed with other illegal substances,” said United States Attorney Rachael S. Rollins. “Mr. Mervin was selling thousands of lethal doses of this poison. That he was out on bail for state criminal drug and gun charges adds insult to injury. Now he will be removed from our community so he can no longer cause harm.”
“Working side by side with the Boston Police Department to get repeat offenders off the streets helps to ensure the safety of everyone in our community; ATF continues our focus on keeping guns out of the hands of those who cannot legally possess them”, said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division.
At the time of his arrest, Mervin was on bail on gun and narcotics charges pending in Norfolk County arising from an incident in Quincy in May 2019. In addition, Mervin was previously convicted in June 2016 in Plymouth County of possessing a firearm without a license, for which he was sentenced to three years in prison.
U.S. Attorney Rollins; Boston Police Commissioner Michael Cox; and ATF SAC Ferguson made the announcement. Assistant U.S. Attorney John T. McNeil of Rollins’ Criminal Division prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Two Members of Cape Cod Heroin Trafficking Ring Sentenced to Prison for Violent KidnappingRead the Press Release
BOSTON – Two members of a Cape Cod heroin trafficking ring have been sentenced to 10 years and nine years in prison for their roles in a violent kidnapping captured on video.
Albert Lee, also known as “Mook,” 32, of Pawtucket, R.I., was sentenced today by U.S. District Court Judge Allison D. Burroughs to nine years in prison and three years of supervised release. In September 2022, Lee pleaded guilty to one count of conspiracy to commit kidnapping. Cameron Cartier, 28, of Buzzards Bay, was sentenced on Feb. 14, 2023 by Judge Burroughs to 10 years in prison and three years of supervised release. In October 2022, Cartier pleaded guilty to one count of conspiracy to commit kidnapping and one count of conspiracy to obstruct justice by retaliating against a witness, victim or informant. Lee and Cartier were charged in a superseding indictment that included co-defendants Edwin Otero, Justin Joseph and Anthony Basilici in March 2020.
In 2018, law enforcement began investigating a Cape Cod drug trafficking organization led by Otero. The investigation revealed that Otero and other members of the crew distributed large quantities of heroin throughout Cape Cod, including in Hyannis, Mashpee, Centerville, Osterville and in Pawtucket, R.I. In April 2019, as part of the conspiracy, Otero lured a known victim from Massachusetts to Rhode Island, where Otero, Cartier, Lee, Joseph, and Basilici kidnapped and held him, stripped him naked, assaulted him and threatened to rape him. The purpose of this kidnapping and assault was to retaliate against the victim because the crew erroneously believed the victim was cooperating with law enforcement. Basilici filmed the kidnapping and assault on Otero’s cell phone. Otero’s phone was later recovered with the video on it.
On Jan. 18, 2023, Otero and Joseph each pleaded guilty to conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin; possession of a firearm in connection with a drug trafficking crime; kidnapping conspiracy; and witness retaliation conspiracy. Otero also pleaded guilty to being a felon in possession of a firearm and witness intimidation. They are both scheduled to be sentenced on April 27, 2023.
On Jan. 26, 2023, after a week-long trial, Basilici was convicted by a federal jury of conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin; possession and discharge of a firearm in connection with a drug trafficking crime; kidnapping conspiracy; witness intimidation; and witness retaliation conspiracy. He is scheduled to be sentenced on April 26, 2023.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Barnstable Police Chief Matthew K. Sonnabend; and Barnstable County Sheriff James M. Cummings made the announcement. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Rollins’ Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Lawrence Man Found Guilty of Fentanyl Trafficking by Federal JuryRead the Press Release
BOSTON – A Lawrence man has been convicted by a federal jury in Boston of fentanyl trafficking.
Manuel Santana Vizcaino, a/k/a “Dave,” 38, was convicted on Feb. 11, 2023 of distribution and possession with intent to distribute 40 grams or more of fentanyl. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for May 10, 2023. Santana Vizcaino was charged along with his brother, Santo Santana Vizcaino, in October 2020 and the two were subsequently indicted by a federal grand jury in February 2021.
In September 2020, Manuel Santana Vizcaino arranged for the distribution of more than a half kilogram of fentanyl to an individual. Specifically, on Sept. 3, 2020, Manuel Santana Vizcaino provided the individual with approximately 270 grams of fentanyl concealed inside a guava juice box at his apartment in Lawrence. Later, on Sept. 14, 2020, while outside the United States in the Dominican Republic, Manuel Santana Vizcaino arranged for his brother to sell the individual another 250 grams of fentanyl. Manuel Santana Vizcaino was arrested in December 2020 at Logan Airport upon returning from the Dominican Republic.
In May 2022, Santo Santana Vizcaino was sentenced to 30 months in prison and three years of supervised release after previously pleading guilty to the same charges in January 2022.
The charge of distribution and 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 $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement. Valuable assistance was provided by the Drug Enforcement Administration; Customs and Border Protection; Homeland Security Investigations in New England; Massachusetts State Police; and the Essex County Sheriff’s Department. Assistant U.S. Attorneys Philip C. Cheng and Lucy Sun of Rollins’ Organized Crime & Gang Unit are prosecuting the case.
Chicopee Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Chicopee man pleaded guilty today in federal court in Springfield to creating and distributing child sexual abuse material (CSAM).
Michael Geoffroy, 36, pleaded guilty to three counts of sexual exploitation of a child, three counts of distribution of child pornography and one count possession of child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 8, 2023. Geoffroy was indicted by a federal grand jury in January 2021.
In December 2020, Geoffroy used a minor to create two videos and two images of CSAM. Geoffroy then distributed the videos and images in a chat group that same day. Geoffroy was arrested the following day and, during a search of his cellphone, was found in possession of more than 100 videos and images that depicting CSAM.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Chicopee Police Chief Patrick Major made the announcement. Assistant U.S. Attorney Neil L. Desroches of Rollins’ Springfield Branch 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.
Quincy Man Charged with Hate CrimeRead the Press Release
BOSTON – A Quincy man was indicted today by a federal grand jury in Boston for allegedly committing a hate crime.
John Sullivan, 77, was charged with one count of violating the Shepard-Byrd Hate Crimes Prevention Act.
According to the indictment, on Dec. 2, 2022, Sullivan used his vehicle to willfully cause bodily injury to a victim because of that victim’s actual and perceived race and national origin.
“Hate has no place here in Massachusetts. As this case demonstrates, we will aggressively prosecute hate crimes and other civil-rights offenses committed because of the actual or perceived race, color, religion, or national origin of any individual or group. Confronting hate crimes is a priority of my administration. I have established a standalone Criminal Civil Rights Unit and a hotline dedicated to the investigation and potential prosecution of civil rights violations,” said United States Attorney Rachael S. Rollins. “Our thoughts are with the victim and their family at this time. The alleged hate-filled and violent behavior of Mr. Sullivan is reprehensible and we intend to hold him accountable.”
“There is no way to undo the alleged damage that Mr. Sullivan did to this victim with his hateful, repulsive, and violent behavior. No one should ever be targeted or threatened because of their race, ethnicity, religion, disability, sexual orientation, gender, or immigration status said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Hate crimes are not only an attack on the victim, but they also instill fear and threaten and intimidate an entire community which is why the FBI worked so closely with the Quincy Police Department to bring Mr. Sullivan to face justice. We urge members of our community to report incidents like this to us because hate-based violence has no place in our society and will not be tolerated.”
In August 2022, U.S. Attorney Rollins announced the creation of the “End Hate Now” hotline – 1-83-END-H8-NOW (1-833-634-8669) – for reporting hate-based incidents or potential criminal activity. Massachusetts residents and visitors are encouraged to call the hotline to report concerning or troubling incidents of hate, potential hate crimes, or concerns regarding individuals believed to be espousing the hate-filled views or actions we learn of far too often in the wake of mass shootings and/or acts of hate-based violent extremism. Callers are encouraged to leave their contact information but may remain anonymous. At this time, the hotline is available in English, Spanish, Cantonese and French.
The charge provides for a maximum sentence of 10 years, 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.
U.S. Attorney Rollins; Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; FBI SAC Bonavolonta; Quincy Police Chief Paul Keenan; and Norfolk County District Attorney Michael Morrissey made the announcement today. Assistant U.S. Attorney Torey B. Cummings of Rollins’ Civil Rights & Human Trafficking Unit and Tara Allison of the Department of Justice’s Civil Rights Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Bedford Man Pleads Guilty to Evading More Than $400,000 in Federal Income TaxesRead the Press Release
BOSTON – A New Bedford man pleaded guilty yesterday in federal court in Boston to evading more than $431,000 in federal income taxes over the course of seven years.
Victor M. Cruz, 43, pleaded guilty to three counts of tax evasion. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for May 9, 2023. Cruz was indicted by a federal grand jury in August 2021.
From 2015 through 2017, while earning between $183,000 and $212,000 in annual wages as a crewmember for various fishing vessels, Cruz failed to file federal tax returns on his income for any of the years. In addition, Cruz failed to file federal income tax returns for tax years 2010 through 2014 while receiving an annual income of at least $150,000. Despite receiving at least two notices from the Internal Revenue Service directing him to file returns and pay delinquent taxes, Cruz failed to file any federal tax returns and took other measures to prevent authorities from tracing his income or determining his tax liabilities. In total, Cruz evaded paying more than $431,000 in federal taxes, not including delinquency penalties and interest.
The charges of tax evasion each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Victor A. Wild of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Former New Bedford Man Extradited for Wire Fraud and Money Laundering Arising from Alleged "Romance Scam"Read the Press Release
BOSTON – A former New Bedford man has been extradited to the United States from the United Kingdom to face wire fraud and money laundering charges involving funds obtained from “romance scam” victims.
Chukwunonso “Douglas” Umegbo, a/k/a James Abbott, a/k/a Michael Philips, a/k/a Richard Armani, 37, formerly of New Bedford, was arrested in London on April 4, 2022 and was extradited to the United States on Feb. 10, 2023. Following an initial appearance in federal court in Boston on Feb. 13, 2023, Umegbo was detained pending a hearing set for March 2, 2023. Umegbo was indicted in February 2021 on six counts of making a false statement to a bank, two counts of wire fraud and one count of money laundering.
According to the charging documents, between no later than 2018 through at least 2019, Umegbo opened bank accounts in the greater Boston area using fake identity documents. It is alleged that the bank accounts were used to receive fraudulently obtained funds from a number of victims of romance scams, in which perpetrators create fictitious online personas to develop online romantic relationships with individuals in the U.S., and then leverage those relationships to obtain money and/or property. Once the fraudulently obtained funds reached the accounts controlled by Umegbo, Umegbo allegedly withdrew the money in cash, used the funds to purchase cashier’s checks, or spent the money on personal purchases. Altogether, the fraudulent accounts received more than $560,000.
The charge of making a false statement to a bank provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000, or twice the value of the criminally derived property. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Darnell Edwards, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. The Justice Department’s Office of International Affairs provided valuable assistance. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ 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.
Convicted Felon Sentenced for Possessing AmmunitionRead the Press Release
BOSTON – A Cambridge man was sentenced today in federal court in Boston for illegally possessing ammunition as a previously convicted felon. Multiple guns, ammunition and cash were found in the rental vehicle that the defendant was the sole occupant of.
Kyle Evans, 36, was sentenced by U.S. District Court Judge Richard G. Stearns to 45 months in prison and three years of supervised release. In November 2022, Evans pleaded guilty to one count of being a felon in possession of ammunition.
In August 2020 Evans was pulled over in the City of Everett for failing to stop at a red light. When asked for his license and registration, Evans stated that he did not have a license. Upon confirming that Evans’ driver’s license was suspended and that the car was neither registered to nor leased by him, Evans was arrested. During a subsequent search of the vehicle, $2,344 in cash, a 9 mm loaded semi-automatic pistol, a .380 loaded semi-automatic pistol, a homemade loaded 9 mm semi-automatic pistol with no serial number and a Glock handgun carry case – with a serial number for a Glock that was reported stolen from California – containing a .22 caliber semi-automatic pistol with an obliterated serial number and a 9 mm caliber semi-automatic pistol, and other ammunition, were recovered. Four rounds of .22LR caliber ammunition was also found in Evans’ pants pocket.
Due to a prior conviction punishable by at least one year in prison – including armed robbery with a knife, resisting arrest, heroin possession, assault and battery on a police officer and intimidation – Evans is prohibited from possessing firearms and ammunition.
United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Everett Police Chief Steven A. Mazzie made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
Russian Businessman Found Guilty in $90 Million Hack-to-Trade ConspiracyRead the Press Release
BOSTON – A Russian businessman was convicted today by a federal jury in Boston for his involvement in an elaborate scheme that netted $90 million through securities trades based on non-public information stolen from U.S. computer networks.
Vladislav Klyushin, a/k/a “Vladislav Kliushin,” 42, of Moscow, Russia, was convicted following a 10-day jury trial of conspiring to obtain unauthorized access to computers, and to commit wire fraud and to commit securities fraud, and with substantive counts of obtaining unauthorized access to computers, wire fraud and securities fraud. U.S. District Court Judge Patti B. Saris scheduled sentencing for May 4, 2023. Klyushin was arrested in Sion, Switzerland in March 2021 and extradited to the United States in December 2021 to face federal charges in Boston.
Klyushin was charged along with two Russian co-conspirators: Ivan Ermakov and Nikolai Rumiantcev. Two others, Mikhail Vladimirovich Irzak and Igor Sergeevich Sladkov, were charged in a separate indictment. All four co-conspirators remain at large. In October 2018, Ermakov was also charged in federal court in Pittsburgh in connection with his alleged role in hacking and related disinformation operations targeting international anti-doping agencies, sporting federations, and anti-doping officials.
“The jury saw Mr. Klyushin for exactly what he is – a cybercriminal and a cheat. He repeatedly gamed the system and finally got caught. Now he is a convicted felon. For nearly three years, he and his co-conspirators repeatedly hacked into U.S. computer networks to obtain tomorrow’s headlines today. They used that nonpublic information to trade illegally in the shares of hundreds of publicly traded companies. He had the answer key and reaped enormous financial gains with stolen inside information. Mr. Klyushin compromised the integrity of our securities markets and cheated individual investors and pension funds,” said United States Attorney Rachael S. Rollins. “This case demonstrates the Department of Justice’s commitment to protecting our financial markets and computer networks by aggressively pursuing those who seek to profit unfairly through intrusive cyber-attacks. My office and our law enforcement partners will continue our work to identify, prosecute and hold accountable criminals like Klyushin regardless of where they reside or the manner in which they try to conceal their illegal activities. Cybercriminals be warned: we will use every tool at our disposal to track you down and you will end up as a defendant in a courtroom.”
“Today’s verdict proves Vladislav Klyushin used various illegal and malicious means to hack into computer systems with the goal of obtaining insider information to gain tens of millions of dollars in illegal profits,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI will not stand idly by and allow criminals like him to meddle in our financial systems or marketplace at the expense of American investors. We will aggressively investigate anyone who attacks the integrity of our country’s computer networks and capital markets and bring their criminal conduct to a halt.”
Klyushin, Ermakov and Rumiantcev worked at M-13, a Moscow-based information technology company that Klyushin owns. M-13 offered penetration testing and “Advanced Persistent Threat (APT) emulation,” – both services that seek exploitable vulnerabilities in a computer system via hacking techniques, purportedly for defensive purposes. M-13’s website indicated that the company’s “IT solutions” were used by “the Administration of the President of the Russian Federation, the Government of the Russian Federation, federal ministries and departments, regional state executive bodies, commercial companies and public organizations.” In addition to these services, Klyushin invested the money of several investors in his hack-to-trade scheme, and took a 60 percent cut of their profits.
Trial evidence showed that, between at least in or about January 2018 and September 2020, Klyushin, Ermakov, Irzak, Sladkov and Rumiantcev conspired to use stolen earnings information to trade in the securities of companies that are publicly traded on U.S. national securities exchanges, including the NASDAQ and the NYSE, in advance of public earnings announcements. Using the same malicious hacking techniques M-13 advertised to customers, Klyushin and his co-conspirators obtained inside information by hacking into the computer networks of two U.S.-based filing agents that publicly-traded companies used to make quarterly and annual filings through the U.S. Securities and Exchange Commission (SEC). Specifically, Klyushin and his co-conspirators deployed malicious infrastructure capable of harvesting and stealing employees’ login information and used proxy (or intermediary) computer networks outside of Russia to conceal the origins of their activities. With this access, Klyushin and his co-conspirators viewed and downloaded material non-public information, such as quarterly and annual earnings reports that had not yet been filed with the SEC or disclosed to the general public, for hundreds of companies – including Capstead Mortgage Corp., Tesla, Inc., SS&C Technologies, Roku and Snap, Inc. Many of the illegally obtained earnings reports were downloaded through a computer server located in downtown Boston.
Armed with this information before it was disclosed to the public, Klyushin and his co-conspirators knew ahead of time, among other things, whether a company’s financial performance would meet, exceed or fall short of market expectations – and thus whether its share price would likely rise or fall following the public earnings announcement. Klyushin then traded based on that stolen information in brokerage accounts held in his own name and in the names of others. Klyushin and his co-conspirators also distributed their trading across accounts they opened at banks and brokerages in several countries, including Cyprus, Denmark, Portugal, Russia and the United States, and misled brokerage firms about the nature of their trading activities.
Evidence presented at trial demonstrated that the times in which the filing agents were hacked corresponded with the times in which Klyushin and his co-conspirators made profitable trades. Additionally, of the more than 2,000 earnings events around which Klyushin and his co-conspirators traded between January 2018 and September 2020, more than 97 percent were filed with the SEC by the victim filing agents. Testimony at trial indicated that the odds of this trading pattern occurring in the absence of a relationship between the trading and the identity of the filing agent was less than one in a trillion.
In total, Klyushin and his co-conspirators earned close to $100 million in earnings trading from roughly $9 million in investments using inside information, even as they lost close to $10 million in non-earnings trading – representing a return of more than 900 percent during a period in which the broader stock market returned just over 25 percent. Of that amount, Klyushin individually netted more than $38 million, including nearly $23 million on his personal trading and trading for his company, in addition to more than $13 million on the money he invested for others.
The charge of conspiracy to obtain unauthorized access to computers, and to commit wire fraud and to commit securities fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 fine, or twice or the gross gain or loss. The charge of unauthorized access to computers provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss. The charges of securities fraud and wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss. Each of the charges also provide for restitution and forfeiture upon conviction. 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.
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement today. The SEC, the Justice Department’s Office of International Affairs, the Swiss Federal Office of Justice, the Valais and Zurich Cantonal Police authorities, the Federal Bureau of Investigation’s Washington Field Office and the victim filing agents provided valuable assistance to the investigation. Stephen E. Frank and Seth B. Kosto, Chief and Deputy Chief respectively, of Rollins’ Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Lawrence Man Sentenced to 8 Years in Prison for Distributing Fentanyl Pills Produced Using Multiple Pill Press MachinesRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for distributing counterfeit prescription pills containing fentanyl, made using multiple pill press machines.
Miguel Angel Fajardo, 32, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to eight years in prison and two years of supervised release. In October 2022, Fajardo pleaded guilty to one count of possession with intent to distribute 400 grams or more of fentanyl.
In March 2022, law enforcement searched Fajardo’s apartment and seized approximately 7.3 kilograms worth of fentanyl pills, an industrial pill press and “M” and “30” pill stamps consistent with markings on pharmaceutical-grade Oxycodone pills. Pill stamps are commonly used to make counterfeit pills appear to be legitimate pharmaceutical-grade pills. Approximately 1.4 kilograms of fentanyl powder, two individual finger presses, 50 rounds of .40 caliber ammunition concealed in a microwave, four kilograms of cutting agent and two air purifying respirators – which are commonly used when working with fentanyl powder were also found. Additionally, two one-kilogram pill press machines and another large pill press were found.
U.S. Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Lawrence Acting Police Chief Michael McCarthy made the announcement. Assistant U.S. Attorneys Craig E. Estes and Evan D. Panich of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Weymouth Man Sentenced to 10 Years in Prison for Cocaine Trafficking ConspiracyRead the Press Release
BOSTON – A Weymouth man has been sentenced for his role in a drug trafficking conspiracy that distributed prodigious amounts of cocaine from Puerto Rico, which he and a co-conspirator obtained via the U.S. mail.
John Tavares, 36, was sentenced on Feb. 7, 2023 by U.S. District Court Judge Leo T. Sorokin to 10 years in prison and eight years of supervised release. Tavares was also ordered to forfeit $91,940 in drug proceeds. In October 2019, Tavares pleaded guilty to conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine and possession with intent to distribute 500 grams or more of cocaine.
“Mr. Tavares was a significant wholesale cocaine supplier who cultivated a major drug pipeline that funneled more than $1 million worth of cocaine from Puerto Rico to Massachusetts,” said United States Attorney Rachael S. Rollins. “In addition, this dangerous drug trafficker kept firearms to protect his cocaine stash and illicit proceeds – putting the community at risk with the potentially lethal combination of drug distribution and deadly weapons. Thanks to the exceptional work by our state, local and federal partners, Mr. Tavares and his gun laden cocaine venture have been brought to a halt and communities across the South Shore are safer.”
“What we have here today is a perfect example of what happens when different law enforcement agencies pool their recourses and expertise to achieve a common goal…to protect American citizens from the many perils of illegal drugs. The safety and security of Postal Service employees and customers is the core mission of the Postal Inspection Service. It is our duty as postal inspectors to aggressively investigate those individuals who ship illicit drugs through the U.S. Mail. Make no mistake, we will find you and hold you accountable. I would like to thank our federal, state, and local partners for helping us achieve our goal to protect the nation’s mail system from criminal misuse,” said Darnell Edwards, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division.
“Tavares and his coconspirator are responsible for trafficking significant amounts of cocaine to the Massachusetts area. HSI is proud to work with our law enforcement partners to disrupt trafficking operations like this one and prevent dangerous drugs from reaching our communities,” said Matthew B. Millhollin, Special Agent in Charge for Homeland Security Investigations in New England.
“DEA is committed to investigating Drug Trafficking Organizations and individuals like Mr. Tavares who is responsible for distributing cocaine to the citizens of Massachusetts,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division. “This sentence not only holds Mr. Tavares accountable for his crimes but this should serve as a warning to those traffickers who are fueling the drug epidemic in order to profit and destroy the lives of others. We will continue to work with our local, state and federal partners to bring to justice anyone who distributes this poison. This investigation demonstrates the continued commitment we have to keeping our communities safe.”
Between March 2017 and August 2018, federal inspectors identified more than 40 suspicious parcels that had been sent through the mail from Puerto Rico to various addresses in Massachusetts including residences in Quincy, North Dartmouth, Weymouth and New Bedford. The suspicious parcels were often sent on the same day from Puerto Rico to two or more addresses in Massachusetts. During the investigation, two parcels were intercepted in the mail and approximately two kilograms of cocaine was found hidden in sealed coffee cans. Through surveillance, it was determined that Tavares and co-conspirator Cristina Lopez were receiving the majority of the parcels. It was also determined that Tavares and Lopez had flown regularly from Massachusetts to Puerto Rico for trips lasting only 30 to 72 hours, and that the parcels suspected of containing cocaine were then typically sent to Massachusetts within one to three days after their return. In total, Tavares and Lopez arranged for at least 44.9 kilograms of cocaine to be shipped from Puerto Rico to Massachusetts. After collecting the parcels, Tavares and Lopez prepared the cocaine for distribution.
Searches of residences used by Tavares and Lopez in Weymouth, North Dartmouth and Boston resulted in the seizures of more than three kilograms of cocaine, over $100,000, firearms, ammunition and various drug paraphernalia. Additionally, CDs containing photos taken from Lopez’s phone were seized which depicted Tavares posing in a bedroom with rifles, one of which was equipped with a silencer, as well as photos of Tavares with large stacks of cash.
In October 2019, Lopez pleaded guilty to her role in the conspiracy and was sentenced in June 2020 to six years in prison and three years of supervised release.
U.S. Attorney Rollins; USPIS Acting INC Edwards; HSI SAC Millhollin; DEA SAC Boyle; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Norfolk County District Attorney Michael W. Morrissey; Bristol County District Attorney Thomas M. Quinn, III; and Bristol County Sheriff Paul Heroux made the announcement today. Assistance in the investigation was provided by the Quincy, Weymouth, Braintree, North Dartmouth and Boston Police Departments. Assistant U.S. Attorneys James E. Arnold and Nadine Pellegrini of Rollins’ Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Lynn Man Arrested 10 Years After Being Charged for Child Pornography OffenseRead the Press Release
BOSTON – A man from the Philippines who previously resided in Lynn has been arrested in the Dominican Republic 10 years after being indicted for possessing child sexual abuse material (CSAM).
Melchor Datu, 51, formerly of Lynn, Mass., was arrested today by special agents and officers with FBI Boston’s Child Exploitation – Human Trafficking Task Force upon his arrival in the United States and made an initial appearance in U.S. District Court in the Southern District of Florida this afternoon. He will appear in federal court in Boston at a later date. In December 2012, Datu was indicted by a federal grand jury on one count of possession of child pornography.
According to the federal indictment, in October 2008, Datu’s laptop and two external hard drives were found to contain multiple files of CSAM depicting minors engaged in sexually explicit conduct. In January 2022, the FBI launched an international publicity campaign, offering a reward of up to $10,000 for information leading to the arrest and conviction of Datu.
Datu was arrested in the Dominican Republic on Thursday by the Dominican National Police (DNP), Division Especial de Investigacion del Crimen Organizado Internacional (DEICROI), Migracion Dominicana, and Procuraduria Especializada contra Crimen y Delitos de Alta Tecnologia, Titular Ivan Vladimir Feliz Vargas, with the assistance of the FBI’s Legal Attaché in Santo Domingo.
“No matter where you go. No matter where you hide. If you are a fugitive from Justice we will not stop until we find you. This arrest proves that fact. The Department of Justice has extreme capabilities thanks to our strong coordination with law enforcement partners on every level, both here in the United States and abroad,” said United States Attorney Rachael S. Rollins. “Keeping our children safe from predators is a top priority of my administration. My office remains vigilant in our pursuit of justice for the most vulnerable members of our communities: I commend the FBI and Dominican law enforcement for their dedication in ensuring Mr. Datu was located to face the United States criminal justice process.”
“Our commitment to justice has no time limit and knows no boundaries. Melchor Datu’s arrest should send a clear message to fugitives: no matter where in the world you try to hide, we will find you and bring you back to face justice,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “We’d like to thank the concerned citizen who alerted us to Mr. Datu’s whereabouts, and our law enforcement partners in the Dominican Republic for their outstanding cooperation. The crime for which Melchor Datu stands accused is disturbing. We hope this news brings some comfort to all affected.”
The charge of possession of child pornography provides for a sentence of up to five years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement today. The U.S. Attorney’s Office in the Southern District of Florida and the Justice Department’s Office of International Affairs provided valuable assistance. Assistant U.S. Attorney David G. Tobin of Rollins’ Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Indicted for Commissioning Murder-for-Hire Targeting His Wife and Her BoyfriendRead the Press Release
BOSTON – A Boston man has been indicted by a federal grand jury for trying to hire a contract killer to murder his wife and the wife’s boyfriend.
Mohammed Chowdhury, 46, was indicted on two counts of use of interstate commerce facilities in the commission of murder-for-hire. Chowdhury was previously arrested and charged by criminal complaint on Jan. 17, 2023. He has remained in custody since.
According to the charging documents, in November 2022, an individual notified federal law enforcement that Chowdhury was soliciting assistance in having his wife murdered. The individual said that Chowdhury had allegedly paid someone to conduct the murder for hire, but that they took the money and did not follow through with Chowdhury’s request. It is alleged that Chowdhury subsequently told the individual that he needed the murder done as soon as possible and that he would get the money to do so, even robbing a store if necessary to obtain the funds. The individual provided Chowdhury’s phone number to law enforcement, who thereafter used an undercover agent posing as a contract killer to communicate with Chowdhury about his alleged murder for hire plot.
It is alleged that on numerous occasions in December 2022 and January 2023, Chowdhury met with undercover agents posing as the contract killer and their associates, to seek help with killing his wife and her new boyfriend whom she left him for. It is alleged that during these meetings and communications, Chowdhury explained that his wife wouldn’t let him see his children and that he wanted the undercover agents to rob and beat his wife and her boyfriend so that he would not be a suspect. Chowdhury allegedly asked the agents, “So how we gonna disappear his, uh, body?” and stated, “No evidence. No evidence. No evidence from like, you know, that, uh, I did something, you know?” Chowdhury allegedly provided the undercover agents with photographs of his wife and her new boyfriend, where they lived, where they worked and their work schedules. It is alleged that Chowdhury ultimately agreed to pay $4,000 per murder, with a deposit of $500.
Chowdhury met with the undercover agents on Jan. 17, 2023, allegedly provided the $500 deposit and confirmed that he wanted the murders committed. Chowdhury was then taken into federal custody.
In October 2019, Chowdhury was charged in Boston Municipal Court – Roxbury Division with violating an Abuse Prevention Order prohibiting him from abusing, contacting, or coming within a certain distance of his wife. Chowdhury pleaded to sufficient facts and received a continuance without a finding.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Boston Police Department provided valuable assistance with the investigation. Assistant U.S. Attorneys Luke A. Goldworm and John T. Dawley of Rollins’ Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lynn CPA Sentenced for Mortgage and Tax Offenses in Decade-Long Fraud SchemeRead the Press Release
BOSTON – A Certified Public Accountant (CPA) from Lynn was sentenced today in federal court in Boston for creating fraudulent tax returns and submitting fraudulent letters to lenders in a multi-year mortgage fraud scheme.
David Plunkett, 57 was sentenced by U.S. District Court Judge Richard G. Stearns to time served (approximately one day in prison) and three years of supervised release. Plunkett was also ordered to pay $147,500 in restitution to victims and $64,284 in restitution to the Internal Revenue Service. In February 2019, Plunkett pleaded guilty to one count of bank fraud and one count of aiding in the submission of false tax returns.
Plunkett was charged in September 2018 along with co-defendants Joseph Bates III and George Kritopoulos. In October 2022, Kritopoulos was sentenced to four years in prison and two years of supervised release after being convicted by a federal jury of one count of conspiracy, two counts of wire fraud, six counts of bank fraud, one count of aiding the preparation of a false income tax return and one count of obstruction of justice. Kritopoulos was also ordered to pay restitution to lender victims in the amount of $2,238,354 and forfeiture of $700,000. On Jan. 25, 2023, Bates was sentenced to 18 months in prison and three years of supervised release after previously pleading guilty to one count of conspiracy, three counts of wire fraud affecting a financial institution and two counts of bank fraud. Bates was also ordered to pay restitution in the amount of $2,238,354 and forfeiture of $700,000.
From 2006 through 2015, Bates, Kritopoulos and Plunkett engaged in a scheme to defraud banks and other financial institutions by causing false information to be submitted to those institutions on behalf of borrowers – people recruited to purchase properties – located primarily in Salem, Mass. The properties were usually multi-family buildings with two-to-four units, which Kritopoulos and Bates then converted into condominiums. Kritopoulos recruited new borrowers to purchase the individual condominium units. Kritopoulos also recruited Plunkett to prepare false tax returns in the names of the buyers to support the fraud scheme. Together, Kritopoulos and Bates created other false documents and provided them to lenders to obtain fraudulent mortgages for financing the purchases.
The false information submitted to lenders included, among other things, representations concerning the borrowers’ employment, income, assets and intent to occupy the property. Specifically, the false employment information included representations that borrowers were employed by entities that were, in fact, shell companies “owned” by Kritopoulos and were used to advance the fraudulent scheme. The employment information also included false representations about the income that the borrowers received from the entities, when the borrowers actually received little or no income from them. Furthermore, the income asserted on the borrowers’ loan applications substantially overstated their true income. The false information also included representations that the recruited borrowers intended to live in the properties that they were purchasing, when they did not intend to do so.
Plunkett assisted the scheme by preparing tax returns for some of the borrowers that contained false and inflated income. Some of those tax returns were submitted to lenders in support of the fraudulent loan applications. Plunkett also signed letters falsely representing that his CPA firm had prepared corporate tax returns for one of the shell entities, when in fact no such returns had ever been prepared or filed.
The borrowers did not have the financial ability to repay the loans, therefore in all but two instances among 21 properties, they defaulted on their loan payments, resulting in foreclosures and losses to the lenders.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeastern Regional Office; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys Victor A. Wild, of Rollins’ Securities, Financial & Cyber Fraud Unit and Brian M. LaMacchia, of Rollins’ Affirmative Civil Enforcement Unit prosecuted the case.
Former Foxborough Teacher Pleads Guilty to Child Pornography OffenseRead the Press Release
BOSTON – A former teacher at Foxborough High School pleaded guilty yesterday in federal court in Boston to possession of child pornography and receiving child pornography over the internet.
Thomas Davis, 42, of Mansfield, pleaded guilty to one count of possession and receipt of child pornography. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for May 18, 2023. Davis was arrested and charged by criminal complaint on Aug. 26, 2021.
On Aug. 26, 2021, a search warrant was executed at Davis’ residence and a laptop belonging to Davis was seized. An on-site examination revealed approximately 40 images of child pornography on the laptop, including images involving prepubescent minors under the age of 12-years-old. A forensic analysis of Davis’ laptop revealed additional 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 up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Mansfield Police Department. Assistant U.S. Attorney David G. Tobin of Rollins’ 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.
Worcester Man Pleads Guilty to Firearm and Ammunition OffenseRead the Press Release
BOSTON – A Worcester man pleaded guilty on Feb. 6, 2023 to unlawfully possessing a loaded firearm while a convicted felon.
Ahmed Sullay, 26, pleaded guilty to one count of being a felon in possession of a firearm and ammunition before U.S. District Court Judge Mark G. Mastroianni who scheduled sentencing for May 17, 2023. Sullay was indicted by a federal grand jury in May 2021.
On the evening of Nov. 18, 2020, a local officer on patrol observed a driver – later identified as Sullay – travelling in the wrong direction of a one-way road in Worcester. When the officer activated his emergency lights, Sullay reversed his vehicle at high speed and crashed into a traffic sign before fleeing on foot wearing sweatpants and a sweatshirt. The officer followed in pursuit before eventually losing sight of Sullay when he ran onto a nearby street. Soon after, Sullay was seen wearing only his underwear as he ran from a darkened alley in the vicinity towards a nearby parking lot. There, Sullay stole a black SUV and sped away without headlights before colliding with another vehicle at an intersection. Sullay was immediately taken into custody.
Sullay discarded a loaded Jimenez Arms, Model J.A. Nine, 9mm firearm while fleeing after his initial crash. Sullay is prohibited from possessing a firearm due to prior convictions.
The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement. Assistant U.S. Attorney Danial E. Bennett of Rollins’ Worcester Branch Office is prosecuting the case.This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Oxford Man Pleads Guilty to Theft of Government Funds and Misuse of a Social Security NumberRead the Press Release
BOSTON – An Oxford man pleaded guilty on Feb. 2, 2023 in federal court in Worcester to using another individual’s name and Social Security number to fraudulently obtain a federal tax refund and a Massachusetts driver’s license.
Richard Diaz-Montero, a/k/a John Doe, 44, pleaded guilty to false representation of a Social Security number and theft of government funds. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for March 1, 2023. Diaz-Montero was charged in August 2020.
In 2016, Diaz-Montero filed a fraudulent tax return in the name of another person name and, in March 2016, cashed a federal income tax refund fraudulently issued in the other individual’s name. Two years later, in May 2018, Diaz-Montero used the Social Security number of that same person to apply for and obtain a Massachusetts driver’s license.
The charge of false representation of a social security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of theft of government funds provides for a sentence of up to 10 years, 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.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Sutton Police Chief Dennis J. Towle made the announcement. Assistant U.S. Attorney John T. Mulcahy of Rollins’s Criminal Division in prosecuting the case.
Holyoke Landlord Agrees to $15,000 Settlement for False Claims Act ViolationsRead the Press Release
BOSTON – A Holyoke landlord, Carmen Manix, has agreed to pay a $15,000 settlement for submitting false claims to the government after receiving illegal utility payments from a low-income tenant while participating in a federal housing subsidy program.
The Federal Housing Choice Voucher Program, commonly referred to as “Section 8,” provides federal funding to low-income individuals to help them secure safe and affordable housing. The Department of Housing and Urban Development (HUD) provides this funding through local public housing agencies, which establish the total monthly rent, including certain utilities, due to landlords of Section 8 tenants. HUD pays the housing subsidy directly to landlords. In return, landlords agree to comply with certain program requirements, including that they will not charge Section 8 tenants rent or utilities in excess of the amount set by the public housing agency.
Despite this restriction, from September 2000 to August 2017, Carmen Manix demanded and received monthly utility payments from a Section 8 tenant, who brought a lawsuit against Manix under the whistleblower provisions of the False Claims Act. As part of today’s settlement, Manix admits to demanding and receiving utility payments from the Section 8 tenant in violation of her agreements with HUD.
“The Section 8 program provides critical assistance to low-income families in need of safe and affordable housing,” said United States Attorney Rachael S. Rollins. “This case should be a warning that landlords who exploit low-income housing-insecure people to line their own pocket will be called out and held accountable. We use the False Claims Act every day to recover millions of dollars from companies that commit health care fraud. We will also use it to vindicate the rights of everyday citizens who rely on the government programs being followed with integrity. Any Section 8 tenant who has been forced to pay excess rent or utilities in violation of the terms of his or her lease is encouraged to bring their concerns to our Office’s attention.”
“This settlement represents HUD OIG’s priority in protecting HUD beneficiaries from bad actors who prey on their vulnerability for self-enrichment,” said Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Region. “HUD OIG will continue to pursue and bring to justice landlords who fraudulently overcharge HUD- assisted tenants in violation of Federal law.”
The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government. The settlement agreement requires the defendant to pay $15,000 to the United States, and the whistleblower will share in that recovery.
U.S. Attorney Rollins and HUD OIG SAC Scaringi made the announcement today. Assistant U.S. Attorneys Diane C. Seol and Alexandra Brazier of Rollins’ Affirmative Civil Enforcement Unit handled the matter.
OraPharma, Inc. Agrees to Pay $100,000 to Resolve Allegations of False Claims Act ViolationsRead the Press Release
BOSTON – OraPharma, Inc. has agreed to pay $100,000 to resolve allegations that the incentive compensation it paid to certain account managers, who also practiced as dental hygienists, resulted in the submission of false claims to the Medicare program.
Headquartered in Bridgewater, N.J., OraPharma sells oral health products, including Arestin, a sustained-release antibiotic that dental providers administer locally as an adjunct to treatment for periodontal disease.
OraPharma admits in the settlement agreement that from June 2012 through December 2020, they employed account managers – including individuals who practiced as dental hygienists – to promote Arestin to dental practices. Following their retention as account managers by OraPharma, some of these dental hygienists occasionally worked in a dental office or offices in their assigned sales territories but did not disclose in certain instances this occasional hygiene practice to OraPharma as required under the company’s conflicts-of-interest policies. The account managers may have received, or were eligible to receive, incentive compensation for Arestin prescriptions that they may have recommended to Medicare beneficiaries when the account managers were performing dental hygienist duties in a dental office—i.e., while operating outside the scope of their employment with OraPharma. As a result, the United States contends that OraPharma’s payment of incentive compensation to account managers for any prescriptions reimbursed by Medicare in the offices where the account managers practiced as dental hygienists violated the Anti-Kickback Statute and thereby caused false claims to Medicare.
United States Attorney Rachael S. Rollins; Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Lindsey Ross and Charles Weinograd of Rollins’ Affirmative Civil Enforcement Unit handled the matter.
Haverhill Woman Sentenced to More Than Two Years in Prison for Conspiracy to Use Stolen Identities to Obtain Fraudulent Credit CardsRead the Press Release
BOSTON – A Haverhill woman was sentenced on Feb. 3, 2023 for her role in a scheme to use stolen identities to fraudulently apply for and utilize bank accounts and credit cards.
Neida Lopez, 45, was sentenced by U.S. Senior District Court Judge Timothy Hillman to 28 months in prison and three years of supervised release. Lopez was also required to pay restitution of $20,000. In May 2022, Lopez pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft.
Lopez and multiple co-conspirators were charged by criminal complaint in September 2020. She was subsequently indicted by a federal grand jury later that month.
In furtherance of the scheme, in February 2020, Lopez appeared in person at a bank branch in South Portland, Maine and provided personal identifying information of a U.S. citizen on an application to open a checking account. She later used that same stolen identity to apply for and obtain a credit card which she and her co-conspirators maxed out the $20,000 limit.
At sentencing, Lopez was also held responsible for her role in a related conspiracy that used other stolen identities to apply for Economic Injury Disaster Loans, made available under the Small Business Administration (SBA). The co-conspirators used stolen identities to open fraudulent bank accounts, which were then linked to other fraudulent bank accounts set up to receive the SBA funds. Approximately $250,000 of the fraudulently obtained funds were then laundered through the purchasing of iPhones in Massachusetts and New Hampshire, which were then re-sold for cash. A portion of the funds was also wired to others in the Dominican Republic. In total, over $452,000 in SBA funds were fraudulently obtained in connection with the scheme. One of Lopez’s co-conspirators, Edwin Acevedo, pleaded guilty to his role in in the conspiracy on Jan. 5, 2023. He is scheduled to be sentenced on May 16, 2023.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Acting Special Agent in Charge of Homeland Security Investigations in New England; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Brockton Police Chief Brenda Perez made the announcement today. Assistance was provided by the Lowell, Lawrence, Methuen, Haverhill, Woburn and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna Nuzum and Adam Deitch of Rollins’ Criminal Division are prosecuting the case. The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.Boston Man Charged with Fentanyl Distribution OffenseRead the Press Release
BOSTON – A Boston man has been arrested and charged with a drug distribution offense involving fentanyl.
Csean Skerritt, a/k/a “Shizz Grimmy,” a/k/a “Black,” 34, was arrested yesterday and charged with one count of distribution of 40 grams or more of fentanyl. Following an appearance in federal court in Boston this afternoon, Skerritt was detained pending a hearing scheduled for Feb. 14, 2023 at 2:30 p.m.
According to the charging documents, on Feb. 1, 2023, Skerritt agreed to sell 50 grams of fentanyl to an individual in exchange for $1,500. It is alleged that, following a series of communications, Skerritt met the individual at a pre-arranged location. There, Skerritt allegedly entered the individual’s car and provided approximately 55 grams of fentanyl in exchange for the agreed-upon amount.
The charge of distribution of 40 grams or more of fentanyl provides for a sentence of at least 5 years and up to 40 years in prison, at least 4 years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Boston Police Commissioner Michael Cox; and Suffolk County District Attorney Kevin Hayden made the announcement today. Assistant U.S. Attorney John T. Dawley of Rollins’ Organized Crime & Gang 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.
Statement from United States Attorney Rachael S. Rollins on Restitution Judgment in U.S. v. Cromwell and DeQuattroRead the Press Release
“The Mashpee Wampanoags put their trust in Mr. Cromwell when they elected him to represent them. Mr. Cromwell violated and exploited that trust, lining his own pockets through a fraudulent business arrangement with Mr. DeQuattro. Their bribery scheme corrupted and stalled the most significant economic development project in the Tribe’s history. Last spring, a federal jury saw through the lies and found the defendants guilty of their shameful conduct. They were later held accountable at sentencing in November, with Mr. Cromwell receiving a three-year sentence.
Now, thanks to the Mashpee Wampanoag’s current leadership and tenacious legal counsel’s zealous advocacy, our office sought and secured restitution of $209,687.54 from Mr. Cromwell payable directly to the Tribe. This restitution judgment rightly addresses the immense harm these men inflicted upon the Mashpee Wampanoag Nation – harm to its reputation through Mr. Cromwell’s corruption; to its economic development through massive project delays and lost resources; and harm to its financial resources through the significant legal fees and expenses generated in their steadfast support and compliance with our investigation. It is my hope that this judgement closes the door on a dark chapter Mr. Cromwell wrote in the Wampanoag’s rich, extraordinary and profound history. With this corrupt member gone, I am hopeful the Tribe will thrive and flourish.”
Middleboro Financial Adviser Pleads Guilty to Investment Adviser FraudRead the Press Release
BOSTON – A Middleboro financial adviser pleaded guilty today in federal court in Boston for defrauding his elderly and otherwise vulnerable clients and stealing the victims’ retirement assets.
Paul R. McGonigle, 67, pleaded guilty to one count of investment adviser fraud, two counts of money laundering, three counts of wire fraud, one count of mail fraud and one count of aggravated identity theft. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for June 22, 2023. McGonigle was initially charged in June 2021 and later charged in a superseding indictment in February 2022.
McGonigle served as a financial adviser for the victims, many of whom were elderly, one of whom had dementia, and another who suffered a traumatic brain injury. Beginning no later than February 2015, McGonigle caused unauthorized withdrawals from victims’ annuities and induced victims to give him money to invest on their behalf, which he then used for personal and business expenses. To carry out his scheme, McGonigle posed as clients on calls with their annuity companies and signed their names on forms requesting withdrawals from their annuities.
The charge of investment adviser fraud 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 from the offense, whichever is greater. The charges of money laundering provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charges of mail and wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charge of aggravated identity theft provides for a mandatory consecutive sentence of two years in prison, up to one year of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense, 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
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Massachusetts Insurance Fraud Bureau provided valuable assistance with the investigation. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Brookline Doctors Indicted on Additional Tax ChargesRead the Press Release
BOSTON – Two Brookline physicians were charged in a superseding indictment today with tax evasion and a conspiracy to defraud the Internal Revenue Service.
Dr. Pankaj Merchia, 49, of Brookline and Boca Raton, Fla., and Dr. Shona Pendse, 50, of Brookline, were indicted on two counts of tax evasion each and one count of a conspiracy to defraud the IRS. Merchia was previously indicted on one count of health care fraud and three counts of money laundering in December 2022.
According to the charging documents, Merchia and Pendse conspired to use a sham $30 million transaction as a basis to take fraudulent tax deductions and then made false statements about the transaction to criminal investigators and in civil depositions. Specifically, Pendse allegedly provided her employer with a W-4 that claimed her to be tax exempt, thus ensuring her employer would vastly underwithhold federal income tax. It is further alleged that Merchia earned substantial income from third party business entities in 2017 and 2019, and Pendse earned substantial income from her employer in 2019 and 2020, but each willfully avoided paying taxes on that income.According to court documents, Merchia allegedly perpetrated two distinct health care fraud schemes. Specifically, Merchia allegedly billed former patients’ insurance companies for monthly rentals of Continuous Positive Airway Pressure (CPAP) and Bilevel Positive Airway Pressure (BiPap) machines years after the former patients had discontinued their use of the machines and/or returned the machines to Merchia’s office. It is further alleged that Merchia used the proceeds of this fraud to purchase an expensive home in Brookline.
Additionally, Merchia allegedly billed the insurance company of a family member over $400,000 for a monthly rental of a CPAP machine, despite knowing that the insurance carrier would not pay for treatment rendered by a family member. It is alleged that Merchia used the proceeds of this fraud to fund a wire transfer of $250,000 and to purchase at least $140,000 in securities.
The charges of money laundering and health care fraud provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charges of tax evasion and conspiracy to defraud the IRS provide for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.United States Attorney Rachael S. Rollins; Joleen Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony M. DiPaolo, Executive Director of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorneys Lauren A. Graber of Rollins’ Health Care Fraud Unit and Evan D. Panich of Rollins’ Narcotics & Money Laundering Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Worcester Postal Supervisor Sentenced for Mail TheftRead the Press Release
BOSTON – A supervisor for the U.S. Postal Service was sentenced today in federal court in Worcester for stealing packages containing cocaine on at least eight occasions.
Kevin Dombroski, 43, of Worcester, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 13 months in prison and three years of supervised release. In August 2022, Dombroski pleaded guilty to one count of theft of mail by an employee of the U.S. Postal Service.
Dombroski was employed as Postal Service Supervisor at the Worcester Main Post Office. On eight to 10 occasions, Dombroski stole packages that had been mailed from Puerto Rico to addresses in Worcester he believed would contain cocaine. Specifically, Dombroski removed said packages from the main processing area of the Post Office and took them into a private office where he would open the parcel and remove the narcotics before returning the package back to the floor for delivery. Dombroski then sold the contents to an acquaintance, who paid him $7,500 for each package.
United States Attorney Rachael S. Rollins; Matthew Modafferi, Special Agent in Charge of the Northeast Area Field Office of the U.S. Postal Service, Office of Inspector General; and Matthew Millhollin, Special Agent in Charge for Homeland Security Investigations in New England made the announcement. Assistant U.S. Attorney Kristen Noto of Rollins’ Worcester Branch Office prosecuted the case.
Wholesale Drug Trafficker and Distributor Agrees to Plead Guilty to Drug and Firearm OffensesRead the Press Release
BOSTON – The leader of a Brockton-based drug-trafficking organization (DTO) agreed to plead guilty yesterday to gun and drug offenses.
Kevin Cardoso, 26, of Brockton, pleaded guilty to one count of being a felon in possession of a firearm and ammunition; one count of possession with intent to distribute over 500 grams of cocaine, over 400 grams of fentanyl and over 500 grams of methamphetamine; and one count of conspiracy to distribute and possess with intent to distribute over 500 grams of cocaine, over 400 grams of fentanyl and over 500 grams of methamphetamine. The Court deferred acceptance of the proposed plea agreement until sentencing, which U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 1, 2023. Cardoso was initially arrested and charged by criminal complaint in December 2021. He was subsequently charged by an Information on Jan. 17, 2023.
According to court documents, Cardoso oversaw a DTO that distributed wholesale quantities of controlled substances, including cocaine, fentanyl and methamphetamine in and around the Brockton area. Multiple locations at which DTO members allegedly stored, prepared, or distributed narcotics were located during the investigation – some of which were identified based on the electronic location monitoring data from the ankle bracelet Cardoso’s was wearing at the time while on pretrial release for two pending state gun charges, as well as drug-trafficking related communications and images he was transmitting via his identified Snapchat account.
During an October 2021 search of a stash location Cardoso allegedly operated and managed in Dedham, at least 2,000 grams of cocaine, at least 3,000 grams of fentanyl, at least 5,000 grams of methamphetamine, drug packaging materials, blender parts, multiple respirators, press equipment (including a hydraulic press, press plates and various symbols, logos and emblems for drug-labeling purposes) and approximately $72,000 cash were recovered.
Additionally in October 2021, during a search of Cardoso’s apartment, a firearm and ammunition, at least 20 cellphones, over $26,000, an Audemars Piguet watch and a diamond pendant with the number “39” were recovered. A number of the seized phones contained drug-trafficking communications allegedly between Cardoso and others regarding the supply and/or distribution needs of the DTO’s members and its customer base. At the time of Cardoso’s arrest, law enforcement recovered over $6,000 from his person and vehicle, as well as three additional cellphones.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of possession with intent to distribute 500 grams and more of cocaine, 400 grams and more of fentanyl, and 500 grams and more of methamphetamine provides for a sentence of at least 10 years up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charge of conspiracy to distribute and possess with intent to distribute 500 grams and more of cocaine, 400 grams and more of fentanyl, and 500 grams and more of methamphetamine provides for a sentence of at least 10 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Boston Police Commissioner Michael Cox; Brockton Police Chief Brenda Perez; Bridgewater Police Chief Christopher D. Delmonte; East Bridgewater Police Chief Paul O’Brien; Westport Police Chief Keith A. Pelletier; Dedham Police Chief Michael D'Entremont; Plymouth Police Chief Michael E. Botieri; Newton Police Chief John F Carmichael Jr.; Suffolk County Sheriff Steven W. Tompkins; Bristol County Sheriff Thomas Hodgson; and Plymouth County Sheriff Joseph D. McDonald made the announcement today. Assistant U.S. Attorney Kaitlin R. O’Donnell of the Organized Crime & Gang Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Milton Man Indicted for Possession with Intent to Distribute Cocaine and FentanylRead the Press Release
BOSTON – A Milton man has been indicted by a federal grand jury in Boston on drug trafficking charges.
Brandy Soto-Lara, 25, was indicted on one count of possession with intent to distribute cocaine and 40 grams or more of fentanyl. Soto-Lara was previously arrested on Jan. 11, 2023 and has remained in custody since.
According to the charging documents, during a search of Soto-Lara’s apartment in November 2018, over 400 grams of cocaine and over 40 grams of fentanyl was seized. Additionally, $6,000, a loaded firearm with an obliterated serial number, firearm parts and ammunition were recovered also from Soto-Lara’s apartment.
The charging statute provides for a mandatory minimum sentence of five years in prison up to 40 years in prison, at least four years and up to a lifetime supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Suffolk County District Attorney’s Office. Assistant U.S. Attorneys Philip C. Cheng and Lucy Sun of Rollins’ Organized Crime & Gang Unit are 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 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 defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maine Man Sentenced to Thirteen Years in Prison for Child ExploitationRead the Press Release
BOSTON – A Maine man was sentenced today in federal court in Boston for travelling to have sex with a minor and possessing child sexual abuse material (CSAM).
Patrick Plummer, 31, of Parsonsfield, Maine, was sentenced by U.S. District Court Judge Casper to 13 years in prison and five years of supervised release. In September 2022, Plummer pleaded guilty to one count of attempted enticement of a minor, one count of intent to engage in illicit sexual conduct with a person under 18 years of age and one count of transportation of child pornography. He has remained in custody since his arrest on related state charges in September 2020.
“This case is another terrifying reminder of the real-life dangers of the internet and the predators that lurk online with the sole intent of targeting, exploiting and sexualizing our children. Mr. Plummer, a grown man, admitted that he was also targeting 10 other young girls. Extensive amounts of CSAM – including two-year-old’s being sexualized and tortured – was discovered on his electronic devices. This is every parent’s nightmare,” said United States Attorney Rachael S. Rollins. “Protecting the safety, innocence and wellbeing of our children is some of the most important work we do. Today’s sentence results in one less predator able to harm our children.”
“It is not uncommon for child predators like Patrick Plummer to cast a wide net online to see who responds and whom they can victimize. In this case, that’s how the FBI uncovered Mr. Plummer’s heinous conduct. Today’s sentence demonstrates our commitment to ensuring that sexual predators like him are held accountable for their crimes and removes a dangerous threat from our community,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “There are very few situations more urgent than when a child is physically at risk. Those who sexually exploit children do serious lasting harm and possessing and trading child sexual abuse material only perpetuates the abuse.”
In September 2020, Plummer sent a private message to an undercover officer posing as a 13-year-old girl in an online chatroom. Plummer indicated that he was 24 years old and lived in Maine. After confirming the purported minor was 13 years old, Plummer devised a plan to meet her in Georgetown, Mass. to have sex and discussed specific sexual conduct he wanted to engage in with her and directed the purported minor not to wear undergarments.
On Sept. 26, 2020, Plummer drove from Maine to a predetermined location in Georgetown. Plummer was arrested on scene, at which time four cell phones, a computer and a spring-release knife were found in his possession. Forensic analysis of the electronic evidence seized from Plummer’s car revealed over 7,000 images and approximately 74 videos of CSAM on at least three of the devices. The CSAM included multiple images of children as young as two years old being tortured.
Plummer admitted that he had traveled from Maine to meet the purported 13-year-old girl; that he was talking to approximately 10 underaged girls; and that CSAM would be found on his devices. Plummer further admitted that he shared these images with other individuals through Kik Messenger. The investigation also revealed that, prior to this case, Plummer had posed as a 19-year-old female on Kik Messenger to solicit photos from underaged girls for distribution to other users – in some instances using graphic threats such as, “I’ll chop you up into a million pieces,” to compel minors to share images with him.
U.S. Attorney Rollins, FBI SAC Bonavolonta and Georgetown Police Chief Donald C. Cudmore made the announcement. The Essex County District Attorney’s Office and the Salisbury and Newbury Police Departments provided assistance with the investigation. Assistant U.S. Attorneys Meghan C. Cleary and J. Mackenzie Duane of Rollins’ Major Crimes Unit prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Leominster Man Sentenced for Illegal Reentry and Interfering with a Federal AgentRead the Press Release
BOSTON – A Mexican man residing in Leominster was sentenced today in federal court in Worcester for illegally reentering the United States and forcibly interfering with an Immigration and Customs Enforcement (ICE) agent in an effort to evade arrest.
Eduardo Alvarez, 32, was sentenced by U.S. District Court Magistrate Judge Mark G. Mastroianni to one year in prison and one year of supervised release. In September 2022, Alvarez pleaded guilty to one count of illegal reentry after deportation and one count of forcibly assaulting, resisting, or impeding a federal officer engaged in the performance of official duties.
On the morning of Feb. 16, 2022, ICE officers travelled to a residence in Leominster where Alvarez was reportedly located, and observed Alvarez driving away from in a white Audi. They followed the vehicle and attempted to pull Alvarez over by activating lights and sirens. Officers then attempted to stop Alvarez by positioning their vehicles in front and behind the Audi. Alvarez accelerated and struck the front vehicle, with the ICE officer still in the driver’s seat. Alvarez then drove off traveling through a red-light into oncoming traffic, forcing other vehicles including law enforcement onto the side of the road before stopping at his own residence, where he attempted to hide from officers for approximately 90 minutes before surrendering.
Alvarez was previously removed from the United States in 2009 and 2011. In 2010, he was convicted of illegal reentry into the United States.
United States Attorney Rachael S. Rollins; Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations in Boston; and Leominster Police Chief Aaron Kennedy made the announcement. Assistant U.S. Attorney Kristen Noto of Rollins’ Worcester Branch Office prosecuted the case.Florida Man Sentenced for Making Threatening CommunicationsRead the Press Release
BOSTON – A Florida man was sentenced today in federal court in Springfield for sending threatening communications to the Department of Veterans Affairs.
Drummond Neil Smithson, 31, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 14 months in prison and three years of supervised release. In November 2022, Smithson pleaded guilty to one count of use of interstate communications to transmit a threat to injure.
On or about July 19, 2020, Smithson, an Army veteran, mailed a threatening communication from Ayer, Mass., to the Department of Veterans Affairs threatening to injure members of Moms Demand Action, a grassroots organization advocating for the end to gun violence. In the letter, Smithson threatened, among other things, “If you take my pension there is going to be retaliation,” and, “You take my pension and the second I get out of prison I will go to a Moms Demand Action meeting […] Try me.”
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Department of Veterans Affairs’ Office of Inspector General; Federal Bureau of Investigations, Miami Field Office; and Federal Medical Center, Devens, Special Investigations Section. Assistant U.S. Attorney Kristen Noto of Rollins’ Worcester Branch Office prosecuted the case.
Convicted Felon from Worcester Pleads Guilty to Cocaine and Firearm OffensesRead the Press Release
BOSTON – A Worcester man pleaded guilty today to drug and firearm offenses.
Rodney Hall, 38, pleaded guilty to possession with intent to distribute more than 500 grams of cocaine and being a felon in possession of a firearm. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for May 17, 2023. Hall was originally indicted by a federal grand jury in January 2021 and charged in a superseding indictment in September 2022.
On Sept. 30, 2020, Hall’s apartment was searched, where approximately 634 grams of crack cocaine, a loaded .25 caliber Beretta handgun, plastic baggies, $7,000 in cash and a digital scale were found. 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.
For the drug charge, Hall faces a minimum sentence of five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; 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, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorneys John T. Mulcahy and Evan D. Panich of Rollins’ Criminal Division are 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 Tax Preparer Pleads Guilty to $2 Million Tax FraudRead the Press Release
BOSTON – The owner of a tax preparation business in Jamaica Plain pleaded guilty today in federal court in Boston to preparing false tax returns for his clients.
Joseph Rodriguez, 72, pleaded guilty to one count of aiding or assisting in filing a false tax return. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Sept. 12, 2023. Rodriguez was charged on Dec. 9, 2022.
On numerous occasions between 2014 and 2017, Rodriguez prepared and filed federal income tax returns for clients that contained false, inflated and incorrect information. Rodriguez added false, inflated and ineligible expenses on his clients’ Schedules A for medical and dental expenses, charitable contributions and unreimbursed employee business expenses. By inflating Schedule A deductions, Rodriguez decreased his clients’ taxable income and effectively increased the clients’ tax refunds. As a result, Rodriguez caused more than $2 million in tax loss to the IRS.
The charge of aiding or assisting in filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. 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 Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Additional Charges Brought Against Four Boston Police Officers Involved in Overtime Fraud SchemeRead the Press Release
BOSTON – Four Boston Police Officers have been charged in a superseding indictment in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s (BPD) evidence warehouse.
Lieutenant Timothy Torigian, 57, of Walpole; Sergeant Robert Twitchell (retired), 61, of Norton; Officer Henry Doherty (retired), 64, of Dorchester; and Officer Kendra Conway, 52, of Boston, were charged in a superseding indictment with one additional count each of conspiracy to commit wire fraud. The original indictment returned in September 2020 charged the defendants and five others with one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. Four of the co-defendants charged in original September 2020 indictment have since pleaded guilty and are awaiting sentencing. Charges against the remaining co-defendant were dismissed.
According to the charging documents, the defendants were assigned to BPD’s Evidence Control Unit (ECU), where they were responsible for, among other things, storing, cataloging and retrieving evidence at the warehouse. ECU officers were eligible to earn overtime pay of 1.5 times their regular hourly pay rate for overtime assignments. It is alleged that beginning in at least May 2016, the defendants routinely departed overtime shifts two or more hours early but submitted false and fraudulent overtime slips claiming to have worked the entirety of each shift.One overtime shift, called “purge” overtime, was focused on reducing the inventory of the evidence warehouse. The shift was supposed to be performed from 4:00 to 8:00 p.m. on weekdays. It is alleged that on days which the defendants claimed to have worked until 8:00 p.m., the warehouse was closed, locked and alarmed well before 8:00 p.m., and often by 6:00 p.m. or before. Despite this, it is alleged that the defendants routinely submitted false and fraudulent overtime slips claiming to have worked from 4:00 to 8:00 p.m. Supervisors, who also left early from this shift, allegedly submitted their own false and fraudulent slips and knowingly endorsed the fraudulent overtime slips of their subordinates.
Another shift, called “kiosk” overtime, was available to two ECU officers one Saturday per month from 6:00 a.m. to 2:30 p.m. This shift involved collecting materials, such as unused prescription drugs, from kiosks in each police district in the city and then transporting the materials to an incinerator in Saugus. It is alleged that defendants who performed this overtime shift routinely submitted overtime slips claiming to have worked eight and a half hours when in fact the defendants frequently completed the work and left the shift early, often before 10:00 a.m.
Between May 2016 and February 2019 the defendants allegedly collectively embezzled over $200,000 in overtime pay. According to court documents, Torigian received over $42,000 for overtime hours he did not work; Twitchell and Doherty each received over $25,000 for overtime hours they did not work; and Conway received over $16,000 for overtime hours she did not work.
From 2016 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of conspiracy to commit 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. The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Mark Grady of Rollins’ Criminal Division 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.
Tewksbury Man Pleads Guilty to Bank RobberyRead the Press Release
BOSTON – A Tewksbury man pleaded guilty today in federal court in Boston to bank robbery.
Nicholas O’Neil, 39, pleaded guilty to one count of bank robbery before U.S. Senior District Court Judge Douglas P. Woodlock who scheduled sentencing for June 5, 2023. O’Neil was charged in October 2020.
On Sept. 22, 2020, an individual – later identified as O’Neil – entered a Santander Bank branch in Tewksbury, handed the teller a demand note and a red cloth bag. After obtaining cash from the teller, O’Neill exited the bank and sped away in a white pickup truck which was reported to police by a banking customer who had observed the robbery and followed the vehicle. The pickup truck was located a short time later and O’Neil was arrested without incident. The red cloth bag containing the stolen cash and demand note was found inside the vehicle.
The charge of bank robbery 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. 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 Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Tewksbury Police Chief Ryan M. Columbus made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Rollins’ Major Crimes Unit is prosecuting the case.
Member of Violent Boston Gang Sentenced to 9.5 Years in Prison for Racketeering and Drug Trafficking OffensesRead the Press Release
BOSTON – A Taunton man was sentenced yesterday in connection with his involvement in the violent Boston-based street gang, NOB.
Samael Mathieu, a/k/a “Hamma” or “Hamma Thang,” 26, was sentenced by U.S. District Court Judge Leo T. Sorokin to 114 months in prison and four years of supervised release. In April 2022, Mathieu pleaded guilty to RICO conspiracy and conspiracy to distribute and to possess with intent to distribute controlled substances.
Mathieu is one of 10 defendants indicted together in June 2020 as part of a broader federal sweep targeting numerous NOB street gang members and associates in which 31 total defendants were charged. All of Mathieu’s co-defendants have pleaded guilty to various charges and are scheduled to be sentenced in the upcoming months.
According to court documents, NOB – an abbreviation for the Norton/Olney/Barry streets in Dorchester – is a violent criminal enterprise whose members and associates are involved in numerous types of criminal activities, including murders, attempted murders, armed robberies, drug trafficking, sex trafficking and illegal firearms offenses. During the investigation, numerous contraband items were seized including 11 firearms, over one kilogram of fentanyl (including over 2,000 fentanyl pills manufactured to appear as commercial oxycodone pills), a commercial pill press, over 15 pounds of marijuana and approximately $36,000 in cash.
Mathieu was a significant fentanyl trafficker and active and violent member of the NOB gang who supplied drugs to and supported various crimes on behalf of the gang. On Oct. 1, 2019, a search of a residence used by Mathieu resulted in the seizure of drugs including fentanyl, pills, and suboxone, drug trafficking paraphernalia, and two loaded handguns.
First Assistant United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Bryan Kyes, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; New Bedford Police Chief Paul Oliveira; Quincy Police Chief Paul Keenan; Randolph Police Chief Anthony Marag; Brockton Police Chief Brenda Perez; Stoughton Police Chief Donna McNamara; Suffolk County District Attorney Kevin Hayden; Suffolk County Sheriff Steven W. Tompkins; Plymouth County Sheriff Joseph D. McDonald, Jr.; Bristol County District Attorney Thomas M. Quinn III; and Norfolk County Sheriff Patrick W. McDermott made the announcement today. Assistant U.S. Attorneys Michael Crowley and Sarah Hoefle of the Organized Crime & Gang Unit prosecuted the case.
Chicopee Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A Chicopee man pleaded guilty today in Springfield to receiving and possessing child sexual abuse material (CSAM).
Thomas Stemmer, 60, pleaded guilty to one count each of receipt and possession of child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for May 15, 2023. Stemmer was indicted by a federal grand jury in September 2019.
In 2015, Stemmer received and possessed CSAM, including images and videos, which he downloaded using an encrypted network. The CSAM included prepubescent minors who had not attained 12 years of age.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, at least five years of supervised release, and a fine of up to $250,000. The charge of possession of child pornography involving an image of child pornography involving a prepubescent minor or a minor who had not attained 12 years of age provides for a sentence of up to 20 years in prison, at least 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.
United States Attorney Rachael S. Rollins and Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement today. Assistant U.S. Attorney Catherine G. Curley of Rollins’ Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
U.S. Attorney Recognizes Human Trafficking Prevention MonthRead the Press Release
BOSTON – U.S. Attorney Rachael S. Rollins recognizes Human Trafficking Prevention Month and reaffirms the office’s commitment to seeking justice for all trafficking victims and survivors.
In August 2022, Rollins created a new standalone criminal Civil Rights and Human Trafficking Unit which has, to date, charged nearly a dozen new criminal cases and initiated several other ongoing investigations in the areas of sex trafficking, labor trafficking and human smuggling. Since its inception, the new unit has assisted 15 victims in eight different states who were victims of trafficking here in Massachusetts. On the prevention front, the office just kicked off an indicator training series this month – partnering with Homeland Security Investigations – aimed at a broad range of employers, including city and state inspectors, as well as hospitality and travel employees, just to name a few.
“Human trafficking is modern day slavery. It is a civil rights violation of the highest order that impacts victims across races, genders, age, immigration status and socio-economic standing. Traffickers use threats, lies, grooming techniques, or violence to exploit vulnerabilities, manipulate and control their victims. Sadly, this crime often goes entirely unseen or ignored. That is why we launched our indicator training series with HSI – to educate the public about labor and sex trafficking and to expose how prevalent it is here in Massachusetts. We recently trained over 100 public employees in Boston, with additional trainings sessions forthcoming. My hope is that by providing people across all sectors the tools they need to spot signs of human trafficking and by sharing the lived experiences of those who have endured it, we can encourage and empower workers in all trades to take part in helping protect the welfare of our most vulnerable. Human trafficking is a real threat to human dignity, public safety and public health. We need urgent and meaningful solutions,” said United States Attorney Rachael S. Rollins.
As part of its outreach efforts, the U.S. Attorney’s Office has established strong community partnerships with several local and state agencies to increase and improve collaboration. This includes regular meetings with the Commonwealth Anti-Trafficking Task Force; the Governor’s Council to Address Sexual Assault and Domestic Violence’s Human Trafficking Subcommittee; the Western Massachusetts Human Trafficking Task Force; and the Plymouth County Human Trafficking Task Force. The office has also committed to continuing to meet with and learn from survivor-lead organizations across Massachusetts.
If you or someone you know may be impacted or experiencing human trafficking, please visit https://polarisproject.org/ for information and resources.
Founder of Purported Cryptocurrency Company Sentenced to More Than Eight Years in Prison for Multi-Million-Dollar Fraud SchemeRead the Press Release
BOSTON – The founder of “My Big Coin,” a purported cryptocurrency and virtual payment services company headquartered in Las Vegas, Nev., was sentenced today in federal court in Boston for marketing and selling fraudulent virtual currency and operating an unlicensed virtual currency exchange.
Randall Crater, 52, of Lake Mary, Fla., was sentenced by U.S. District Court Judge Denise J. Casper to 100 months in prison and three years of supervised release. Crater was also ordered to pay forfeiture of $7,668,317 and restitution in an amount that will be determined at a later date. In July 2022, Crater was convicted by a federal jury of four counts of wire fraud, three counts of unlawful monetary transactions and one count of operating an unlicensed money transmitting business.
“For nearly four years, Mr. Crater perpetrated a brazen fraud scheme that preyed on investors and customers who put their faith in him and his fake business, resulting in victim losses of over $7.5 million. He saw the growing crypto marketplace as an opportunity to create the illusion of My Big Coin as a legitimate service from which investors would yield a profit. His lies and deception inflicted real trauma, pain and hardship on the lives of 55 individual victims and their families who funneled their money into bank accounts Mr. Crater controlled and used to finance his extravagant lifestyle,” said United States Attorney Rachael S. Rollins. “I hope today’s sentence sends a strong message that fraudsters – in any market – who seek to exploit others will be found and brought to justice.”
“Spreading outright lies, Randall Crater defrauded dozens of victims out of more than $7.5 million, convincing them their cryptocurrency investments were backed by gold when in reality their hard-earned money went to funding his lavish lifestyle,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The harm done here was significant—delayed retirement, tuition money lost, lives turned upside down—all because of one man’s greed. Today’s lengthy sentence doesn’t right those wrongs, but it does ensure Mr. Crater won’t be victimizing anyone else.”
“The excitement of being part of a new market in cryptocurrency can be very enticing to those who want to be in at the forefront; but in this case they found their investment was nothing more than an investment in Mr. Crater’s lavish lifestyle. Postal Inspectors remind consumers to thoroughly investigate all offers and don’t rely on what they’re told, even if they believe there is protection in their investments and deposits through the name recognition of an alleged renowned partner. In this case it was all lies, and now Mr. Crater will be held accountable for his illegal activities,” said Eric Shen, Inspector in Charge of the U.S. Postal Inspection Service’s Criminal Investigations Group.
Founded in 2013, My Big Coin claimed to offer virtual payment services through a fraudulent digital currency (or “Coins”), which Crater marketed to investors between 2014 and 2017 using misrepresentations. Crater, along with agents he paid to promote the scheme, claimed that the Coins were a fully functioning cryptocurrency backed by gold and that My Big Coin had a partnership with MasterCard. Crater also operated the My Big Coin Exchange, which was advertised as a fully functioning currency exchange where Coins could be transferred for government-backed fiat currency or other virtual currencies. Crater and others made these misrepresentations through social media, the internet, email and text messages.
In reality, the Coins were not backed by gold or other valuable assets, did not have a partnership with MasterCard and were not readily transferable on the My Big Coin Exchange. Over the course of the scheme, Crater obtained over $7.5 million from investors and customers, which he used to buy a house, cars, and over $1 million in antiques, artwork and jewelry.
In January 2018, the Commodity Futures Trading Commission (CFTC) alleged that My Big Coin was a fraud. The CFTC also filed civil charges against Crater and several of his associates for their involvement in the scheme. The civil action was stayed on March 8, 2019, pending resolution of the criminal case.
U.S. Attorney Rollins; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; FBI SAC Bonavolonta; and USPIS Inspector in Charge Shen made the announcement today. The CFTC, the Internal Revenue Service, and the U.S. Department of the Treasury Financial Crimes Enforcement Network also provided valuable assistance with the matter. Assistant U.S. Attorney Christopher J. Markham, of Rollins’ Securities, Financial & Cyber Fraud Unit, and Trial Attorney Babasijibomi Moore of the Criminal Division’s Fraud Section prosecuted the case.
Dominican Man Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Dominican man pleaded guilty today in federal court in Boston to illegally reentering the United States after deportation.
Jonathan Alcequiez-Sanchez, 35, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. Senior District Court Judge Woodlock scheduled sentencing for June 1, 2023. Alcequiez-Sanchez was charged by criminal complaint on Nov. 25, 2022.
Alcequiez-Sanchez was deported from the United States on Sept. 18, 2018, after being arrested in the Bronx, N.Y. for unlawful entry. Sometime after his September 2018 removal, Alcequiez-Sanchez illegally reentered the United States.On or about Dec. 27, 2021, Alcequiez-Sanchez was convicted in Lawrence District Court of drug distribution and weapons charges for which he was sentenced to serve jail time at the Essex County House of Corrections. Alcequiez-Sanchez was taken into federal custody upon his release on Nov. 15, 2022.
The charge of unlawful reentry of a deported alien provides for a sentence of up to two 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.
United States Attorney Rachael S. Rollins and Todd M. Lyons, Field Office Director of the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations in Boston made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of Rollins’ Major Crimes Unit is prosecuting the case.
Canton Woman Sentenced for Online Fraud ConspiracyRead the Press Release
BOSTON – A Canton woman was sentenced today for her role in a fraud conspiracy involving romance scams and pandemic unemployment fraud.
Florence Mwende Musau, 38, was sentenced by U.S. District Court Allison D. Burroughs to 44 months in prison and 30 months of supervised release. Musau was also ordered to pay approximately $957,000 in restitution and to forfeit approximately $350,000 and a Lexus SUV. In 2021, Musau was charged with, and pleaded guilty to, conspiracy to commit wire fraud and bank fraud.
Musau participated in a conspiracy involving romance scams and other online frauds designed to deceive victims into sending money to bank accounts controlled by her and others. Criminals perpetrating romance scams create fictitious profiles on online dating or social media websites, gain the trust of potential victims and then direct those victims to transfer money under false pretenses.
To further the conspiracy, Musau used fake passports in the names of numerous aliases to open bank accounts in and around Boston to receive the proceeds of the romance scams. Musau then executed large cash withdrawals from those accounts, generally structured in amounts less than $10,000, in an effort to evade detection and currency transaction reporting requirements. Musau also received the proceeds of fraudulent state pandemic unemployment assistance benefits in the names of victims. As part of the scheme, Musau used at least three different aliases to open nearly ten fraudulent bank accounts and receive approximately $1 million in fraud proceeds.
United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Special assistance was provided by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant U.S. Attorney Ian J. Stearns of Rollins’ 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 Attorney's Office Files Civil Forfeiture Action to Recover Proceeds of Cryptocurrency Investment Fraud SchemeRead the Press Release
BOSTON – The United States Attorney’s Office filed a civil forfeiture action to recover cryptocurrency alleged to be proceeds of an online investment fraud scheme targeting victims in Massachusetts and elsewhere. The government seeks to forfeit 81,547 USDT (Tether) and 87,321 BEL (Bella Protocol) traceable to the fraud, which has been seized by the government. Tether is a unit of cryptocurrency that is equivalent in value to one U.S. dollar. Bella Protocol is also a cryptocurrency with a value that fluctuates with the market.
In April 2022, a federal investigation began into an investment fraud scheme that targeted a Massachusetts victim. As detailed in court documents, the victim had been contacted in March 2022 through LinkedIn by an alleged scammer. After further communications in Chinese through another application, the victim was lulled into making what she believed was a legitimate cryptocurrency investment. The victim was induced to download an application that appeared to be a legitimate cryptocurrency platform but was allegedly fraudulent, and then invested money through that fraudulent site.
During the investigation, a second victim in California was identified, who was also allegedly lulled into investing in a fraudulent cryptocurrency scheme after an initial contact through LinkedIn.
A portion of the funds the victims invested to another cryptocurrency wallet was traced, resulting in the seizure of 81,547 USDT and 87,321 BEL.
It is a violation of federal law to use wire communications as part of a scheme to defraud or to obtain money or property by means of false or fraudulent pretenses. A civil forfeiture action allows third parties to assert claims to property, which must be resolved before the property can be forfeited to the United States and returned to victims.
This is the second civil forfeiture action the U.S. Attorney’s Office has filed seeking to forfeit cryptocurrency traced to an online investment fraud scheme targeting Massachusetts victims.
Members of the public who believe they are victims of a cybercrime – including cryptocurrency scams, romance scams, investment scams, and BEC fraud scams – should contact [email protected]
United States Attorney Rachael S. Rollins and Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Carol E. Head, Chief of Rollins’ Asset Recovery Unit, is prosecuting the civil forfeiture action.
The details contained in the civil forfeiture complaint are allegations. The United States Attorney’s Office has not filed a corresponding criminal action on the matter.
Former Naval Officer Agrees to Plead Guilty to Making Threats in Interstate CommerceRead the Press Release
BOSTON – A former naval police officer at the Portsmouth Naval Shipyard in New Hampshire has agreed to plead guilty to three counts of making threatening communications to his ex-wife and her mother in Iowa.
Luis De Leon, 30, of Middleton, was charged and has agreed to plead guilty to three counts of making threats in interstate commerce. A plea hearing has not yet been scheduled by the Court. De Leon was previously arrested and charged by criminal complaint on Sept. 26, 2022.
According to the charging documents, on or about April 30, 2022, De Leon made a threatening phone call to his ex-wife in Iowa from a mobile telephone belonging to another individual. Specifically, during the call, De Leon allegedly made several threatening statements including, “You’re gonna f****** pay! Do you understand!? There will be death! There will be war in the street! You wanna to go war!? I’ll take you to f****** war!”
Between May and June 2022, De Leon allegedly sent two letters containing threats to his ex-wife’s mother in Iowa. In the letters, it is alleged that De Leon wrote, among other things, “I’ll be heading over there soon […] God help you and your dysfunctional family if you try and stop me. I won’t be alone either just so you know and that’s for your safety NOT MINE!!! […] If you don’t believe me just look where I’m sending this from. I don’t really have much else to lose, and do you know what men with nothing left to lose usually do?”
The charge of making threatening communications in interstate commerce provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Timothy H. Kistner of Rollins’ National Security Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Canton Man Pleads Guilty to Online Fraud ConspiracyRead the Press Release
BOSTON – A Canton man pleaded guilty on Jan. 27, 2023 in federal court in Boston to wire fraud and bank fraud conspiracy involving romance scams targeting individuals in the United States.
Mark Arome Okuo, 43, pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for March 29, 2023. Okuo was arrested and charged by criminal complaint in March 2021 and subsequently indicted by a federal grand jury in October 2021. He has been detained since his arrest.
Okuo participated in a conspiracy involving romance scams and other online frauds designed to deceive victims into sending money to accounts he controlled. Criminals perpetrating romance scams create fictitious profiles on online dating or social media websites, gain the trust of potential victims and then direct those victims to transfer money under false pretenses. To further the conspiracy, Okuo used fake passports in the names of aliases to open bank accounts in and around Boston to receive the proceeds of the romance scams. Okuo then executed large cash withdrawals from those accounts, generally structured in amounts less than $10,000, in an effort to evade detection. As part of the scheme, Okuo used at least four different aliases to open more than a dozen fraudulent bank accounts and receive approximately $1 million in fraud proceeds.
The charge of conspiracy to commit wire fraud and bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release, and a fine of up to $1 million 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.
United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England, made the announcement today. Special assistance was provided by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant U.S. Attorney Ian J. Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Three Men Convicted of Violent Kidnapping and Shooting Stemming from Cape Cod Heroin ConspiracyRead the Press Release
BOSTON – Three men have been convicted in federal court in Boston for their roles in a violent kidnapping tied to a drug trafficking organization (DTO) that distributed heroin throughout the Cape Cod and Pawtucket, R.I., regions.
Anthony Basilici, 39, of Pawtucket, R.I., was convicted yesterday following a five-day jury trial of conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin; possession and discharge of a firearm in connection with a drug trafficking crime; kidnapping conspiracy; witness intimidation; and witness retaliation conspiracy.
On Jan. 18, 2023, shortly before trial commenced, Basilici’s two co-defendants, Edwin Otero, 33, of Hyannis, and Justin Joseph, 35, of Pawtucket, R.I., each pleaded guilty to conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin; possession of a firearm in connection with a drug trafficking crime; kidnapping conspiracy; and witness retaliation conspiracy. Otero also pleaded guilty to being a felon in possession of a firearm and witness intimidation.
U.S. District Court Judge Allison D. Burroughs scheduled Basilici’s sentencing for April 26, 2023 and sentencing for both Otero and Joseph for April 27, 2023.
“For years, members of Edwin Otero’s drug crew plagued the Cape Cod and Pawtucket communities with their heroin operation and the serious, violent crimes it fueled. These defendants actively participated in a violent scheme to kidnap, beat and terrorize a victim who they incorrectly believed was working with law enforcement,” said United States Attorney Rachael S. Rollins. “This case is a prime example of how drug trafficking activities drive violence in our neighborhoods. Law-abiding residents in our Commonwealth have a right to live their lives without from fear or intimidation by violent gangs. Thanks to the exceptional work by our investigative partners and prosecution team, this violent criminal enterprise has been brought to its knees – bringing peace and safety back to the Cape Cod and Pawtucket neighborhoods it once terrorized.”
“DEA is committed to investigating and dismantling Drug Trafficking Organizations who are responsible for distributing lethal drugs like heroin,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “This conviction not only holds these three men accountable for their crimes but serves as a warning to those traffickers who are fueling the opioid epidemic with deadly drugs in order to profit and destroy people’s lives. DEA’s top priority is combatting the opioid epidemic and the violent acts that often accompany it by working with our local, county, state and federal partners to bring to justice anyone who distributes this poison.”
In 2018, law enforcement began investigating a Cape Cod-wide DTO led by Otero. The investigation revealed Otero, Joseph, Basilici and their other co-defendants distributed large quantities of heroin throughout Cape Cod, including in Hyannis, Mashpee, Centerville, Osterville and in Pawtucket, R.I. As part of the conspiracy, Otero, Joseph and Basilici committed a May 2019 shooting related to a drug debt owed by a drug customer. Additionally, in April 2019, Otero, Joseph, and Basilici lured a victim from Massachusetts to Rhode Island where they kidnapped and held him, stripped him naked, assaulted him and threatened to rape him. Otero, Joseph, Basilici and other co-conspirators discussed causing physical injury to the victim to retaliate against him because they believed he was cooperating with law enforcement. Otero and Basilici also further intimidated or attempted to intimidate other witnesses after the kidnapping.
Otero, Joseph and Basilici were initially charged along with eight others in May 2019 on the drug conspiracy charges. In connection with those arrests, heroin, packaging materials, scales, a finger press as well as three firearms and ammunition including a 9 millimeter assault-style weapon were seized from Otero’s grandmother’s residence. In March 2020, Otero, Joseph, Basilici and two others – Cameron Cartier and Albert Lee – were indicted in connection with the violent kidnapping and related charges. Cartier and Lee previously pleaded guilty and are scheduled to be sentenced on Feb. 14, 2023 and Feb. 16, 2023, respectively.
The charge of conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin provides for a sentence of up to 40 years in prison, up to a lifetime of supervised release and a fine of up to $5 million. The charge of possession and discharge of a firearm in connection with a drug trafficking crime provides for a sentence of at least 10 years and up to life in prison on and after any other sentence, up to five years of supervised release and a fine of up to $250,000. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of kidnapping conspiracy provides for a sentence of up to life in prison, up to five years of supervised release and a fine of up to $250,000. The charges of witness intimidation and witness retaliation conspiracy provide for a sentence of no greater than 20 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.
U.S. Attorney Rollins, DEA SAC Boyle, Barnstable Police Chief Matthew K. Sonnabend and Barnstable County Sheriff Donna D. Buckley, made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Rollins’ Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Serial Bank Robber Charged with Brookline Bank RobberyRead the Press Release
BOSTON – A Boston man has been charged in connection with the September 2022 robbery of a bank in Brookline.
Jerome Lamont Turner, 47, was charged with one-count of bank robbery and will appear in federal court in Boston on Jan. 31, 2023.
According to the charging documents, on Sept. 26, 2022, an individual – later identified as Turner – entered a Brookline Bank branch in Brookline. Once inside the bank, Turner allegedly approached a teller and inquired about opening a new account. Turner was provided a bank pamphlet on the process, and he exited the bank. A few minutes later, it is alleged that Turner reentered the bank, approached the same teller and handed them the pamphlet with the words, “Let me have 17,000 in Large bills no dye pack,” written on it. As the teller was gathering money from the cash drawer, it is alleged that Turner repeatedly motioned for more money before exiting the bank.
A subsequent investigation allegedly identified Turner on the bank’s video surveillance from a previous arrest less than a week earlier and identified his fingerprints on the pamphlet.
It is further alleged that on Sept. 27, 2022, Turner was located wearing the same clothing worn in the Brookline robbery. Following a violent struggle, Turner was taken into custody and allegedly found in possession of over $2,500 in cash.
The charge of bank robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Brookline Acting Chief of Police Jennifer Paster made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Rollins’ Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Everett Man Sentenced to Prison for Wire Fraud, Social Security Misuse and Identity TheftRead the Press Release
BOSTON – A former Everett man was sentenced yesterday in connection with multiple schemes to fraudulently obtain an apartment as well as pandemic-related relief funds from the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program made available under the Coronavirus Aid, Relief, and Economic Security Act.
Tedje Menard, 28, was sentenced by U.S. District Court Judge Allison D. Burroughs to 28 months in prison and three years of supervised release. In September 2022, Menard pleaded guilty to two counts of wire fraud, one count of false representation of a Social Security number and one count of aggravated identity theft.
In or around November 2020, Menard applied to rent an apartment in East Boston using the name and identity of another person. As part of the application and screening process, Menard falsely claimed to be the victim by providing the company overseeing the property with, among other things, the victim’s name, social security number, date of birth and a copy of a purported North Carolina driver’s license containing the victim’s information but depicting a photograph of Menard. Menard also submitted an EIDL application in the amount of $40,000 using the victim’s name and personal identifiable information in June 2021.
Additionally, in April 2021, Menard used his own name to apply for a PPP loan in the amount of approximately $20,833. In the loan application, Menard falsely represented his business’ total gross income in 2019 and his criminal history.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Department of Labor and the U.S. Secret Service, Boston Field Office. Assistant U.S. Attorneys J. Mackenzie Duane and Meghan C. Cleary of Rollins’ Major Crimes 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.
Seven Individuals Arrested in Connection with $7.5 Million Multi-State Paycheck Protection Program SchemeRead the Press Release
BOSTON – Seven individuals, including three from Massachusetts, have been arrested in connection with their alleged involvement in a multi-state scheme to obtain millions of dollars in Paycheck Protection Program (PPP) funds for themselves and others through the submission of dozens of fraudulent applications to PPP lenders.
The following individuals are charged with conspiracy to commit wire fraud and conspiracy to commit unlawful monetary transactions:
• Wallace Ford, 38, of Buford, Ga.;
• Erin Brown, 40, of Buford, Ga.;
• Adiana Pierre, 39, of Lookout Mountain, Tenn.;
• Gardy Alexandre, 51, of West Palm Beach, Fla.;
• Bill Dessaps, 46, of South Easton, Mass;
• Wens Herby Mathurin, 26, of Brockton, Mass.; and
• Richardson Rhau, 49, of Brockton, Mass.The defendants were released on conditions following initial appearances in federal court in the Northern District of Georgia, the Eastern District of Tennessee, the Southern District of Florida and the District of Massachusetts, respectively.
According to the charging documents, Ford, Brown, Pierre and Alexandre conspired to submit fraudulent PPP applications on behalf of numerous actual or purported businesses and non-profit organizations – including businesses operated by Dessaps and Mathurin – and to collect kickback payments from the borrowers for securing loan amounts.
It is alleged that Ford, who at the time operated three purported businesses or non-profits in Florida, submitted applications for PPP loans for those entities to several lenders in April and May 2020, shortly after PPP funds first became available in April 2020. Ford allegedly inflated the employee and payroll information about these entities on the applications. As a result, Ford obtained $168,121 in PPP funds for these entities.
Beginning in June 2020, Ford allegedly began submitting PPP applications on behalf of others, including Pierre and Alexandre. It is alleged that these applications misrepresented the number of employees and monthly payroll expenses of the applicants, and that Ford submitted these applications with falsified supporting documents. Alexandre and Pierre allegedly received PPP loans of $300,000 and $20,833, respectively, from these applications.
According to the charging documents, between June and August 2020, Ford fraudulently secured PPP funds for at least 27 borrowers. Pierre, Alexandre and others allegedly identified potential applicants and provided those applicants’ information to Ford and Ford’s spouse, Brown. Ford then submitted applications for those borrowers online, fabricating employee numbers and monthly payroll expenses. Ford also allegedly submitted false wage and tax forms in support of the misrepresentations on the applications and as a result, obtained approximately $7 million in PPP funds. It is further alleged that the borrowers who received PPP funds based on these fraudulent applications paid kickbacks to Ford and Brown, Pierre, Alexandre and others, commonly in amounts equal to 10 or 20 percent of the loan amount they received. Collectively, Ford, Brown, Pierre and Alexandre allegedly received over $1 million in kickback payments from borrowers – over $500,000 of which went to Ford and Brown.
The charging documents also allege that, in June 2020, Rhau connected Alexandre with both Dessaps, who operated a used car dealership in Abington, Mass., and Mathurin, who purportedly operated a warehouse and cargo delivery business. It is alleged that Alexandre and Pierre then forwarded information about Dessaps’ and Mathurin’s businesses to Brown and Ford, who submitted PPP applications to Kabbage. The application for Dessaps’ dealership falsely stated that the dealership had 40 employees and average monthly payroll expenses of $334,720. The application for Mathurin’s business falsely stated that the business had 25 employees and average monthly payroll expenses of $125,541. Ford also allegedly submitted falsified wage and tax forms with this application. As a result of the applications, Kabbage disbursed a PPP loan of $836,800 to Dessaps and a PPP loan of $313,852 to Mathurin.
After receiving these funds, both Dessaps and Mathurin allegedly made kickback payments to Alexandre, and Mathurin sent additional payments totaling $45,000 to Rhau. With the PPP funds he received, Dessaps allegedly issued sham payroll checks to himself and his relatives, purchased a new residence for himself in South Easton in his sister’s name, paid $32,000 to French Bulldog breeders and purchased a Rolls Royce. Mathurin allegedly made large payments to himself and two purported co-owners of his business.
The charging documents also allege that Rhau fraudulently obtained $104,166 in PPP funds and $94,800 in other pandemic relief funds as a result of applications containing misrepresentations that he submitted to lenders between April 2020 and April 2021.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. The charge of conspiracy to commit unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000, or twice the value of the criminally derived property. 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 Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit and Assistant U.S. Attorney Alexandra W. Amrhein of Rollins’ Asset Recovery Unit are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Member of Violent Boston Gang Sentenced to Nine Years in Prison for Racketeering and Drug OffensesRead the Press Release
BOSTON – A Boston man was sentenced yesterday in connection with his involvement in the violent Boston-based street gang, NOB.
Michael Brandao, a/k/a “G Fredo,” and “Frizzblock Fredo,” 22, was sentenced by U.S. District Court Judge Leo T. Sorokin to nine years in prison and three years of supervised release. In April 2022, Brandao pleaded guilty to RICO conspiracy and conspiracy to distribute and to possess with intent to distribute controlled substances.
Brandao is one of 10 defendants indicted together in June 2020 as part of a broader federal sweep targeting numerous NOB street gang members and associates in which 31 total defendants were charged. All of Brandao’s co-defendants have pleaded guilty to various charges and are scheduled to be sentenced in the coming months.
According to court documents, NOB – an abbreviation for the Norton/Olney/Barry streets in Dorchester – is a violent criminal enterprise whose members and associates are involved in numerous types of criminal activities, including murders, attempted murders, armed robberies, drug trafficking, sex trafficking and illegal firearms offenses. During the investigation, numerous contraband items were seized including 11 firearms, over one kilogram of fentanyl (including over 2,000 fentanyl pills manufactured to appear as commercial oxycodone pills), a commercial pill press, over 15 pounds of marijuana and approximately $36,000 in cash.
Brandao was an active and violent member of the NOB gang who personally committed and supported multiple violent crimes on behalf of the gang. The Court determined that Brandao was responsible for an attempted murder and took it into consideration at sentencing. Specifically, in November 2018, an individual was shot multiple times with a .40 caliber pistol in broad daylight near their residence in New Bedford; this individual survived their injuries. Additionally, according to court documents, Brandao actively facilitated, promoted and furthered the criminal activities committed by the NOB gang in various ways, including. by publishing recordings and videos boasting about violence he and the NOB gang committed, bragging about his personal participation in gang violence, threatening rival gangs and intimidating witnesses.
First Assistant United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Bryan Kyes, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; New Bedford Police Chief Joseph C. Cordeiro; Quincy Police Chief Paul Keenan; Randolph Police Chief Anthony Marag; Brockton Police Chief Brenda Perez; Stoughton Police Chief Donna McNamara; Suffolk County District Attorney Kevin Hayden; Suffolk County Sheriff Steven W. Tompkins; Plymouth County Sheriff Joseph D. McDonald, Jr.; Bristol County District Attorney Thomas M. Quinn III; and Norfolk County Sheriff Patrick W. McDermott made the announcement today. Assistant U.S. Attorneys Michael Crowley and Sarah Hoefle of the Organized Crime & Gang Unit prosecuted the case.