District of Massachusetts
Press releases recorded for this federal judicial district.
Rhode Island Man Sentenced in Insider Trading SchemeRead the Press Release
BOSTON – A Rhode Island man was sentenced today in federal court in Boston for trading on inside information about a Massachusetts company’s planned acquisition of a California semiconductor company.
John Younis, 59, of Bristol, R.I., was sentenced by U.S. Senior District Court Judge Rya W. Zobel to one month of home detention and two years of probation. The government recommended a sentence of six months in prison and six months of home detention. On March 23, 2022, Younis pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud.
In January 2022, Younis was charged with co-defendants David Forte and Gregory Manning.
According to the charging documents, Younis was a close friend of co-conspirator David Forte, whose relative was a senior executive at Analog Devices, Inc. (ADI), a Norwood-based semiconductor company. Beginning in or around June 2016, Forte allegedly obtained material non-public information from his relative about ADI’s planned acquisition of Linear Technology Corp. (Linear), a semiconductor company based in Milpitas, Calif. Forte allegedly passed the information to Younis, who purchased over 1,100 shares of Linear stock and call options (bets that the price of a stock will increase prior to the expiration of the option) in the week leading up to the public announcement of the acquisition on July 26, 2016. Younis also tipped a business associate who allegedly purchased 1,000 Linear shares. After the deal was announced, Younis and his associate sold their Linear securities at a profit. In total, Younis profited nearly $52,000 from the scheme.
Forte and Manning have pleaded not guilty and are awaiting trial.
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. The Securities & Exchange Commission provided valuable assistance. Assistant U.S. Attorney David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hanover Paving Company Owner Sentenced for Million-Dollar Tax Evasion SchemeRead the Press Release
BOSTON – The owner of a commercial and residential paving business in Hanover was sentenced today for a tax evasion scheme in which he failed to report nearly $1.7 million in income.
William E. Dyer, 57, was sentenced by U.S. Senior District Court Judge William G. Young to one year and one day in prison and one year of supervised release. Dyer was also ordered to pay restitution to the Internal Revenue Service in the amount of $597,881. On Nov. 18, 2021, Dyer pleaded guilty to one count of tax evasion.
Dyer owned and operated Pilgrim Paving. From 2014 through 2018, Dyer diverted payments from Pilgrim Paving customers by directing customers to write checks to him and then cashing those checks. Dyer failed to report over $1.7 million in diverted receipts and additional business deposits on the tax returns that he filed or that he directed a tax preparer to file on his behalf. As a result of this conduct, Dyer underreported his personal income tax obligations, causing a loss to the Internal Revenue Service of nearly $600,000.
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. Assistant U.S. Attorney David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Former Women's Soccer Coach at the University of Southern California Sentenced in College Admissions CaseRead the Press Release
BOSTON – The former assistant coach of women’s soccer at the University of Southern California (USC) was sentenced yesterday for her involvement in a bribery scheme to facilitate the admission of applicants to selective colleges and universities as purported athletic recruits.
Laura Janke, 39, of North Hollywood, Calif., was sentenced by U.S. District Court Judge Indira Talwani to time served and one year of supervised release, with 50 hours of community service. Janke was also ordered to pay forfeiture in the amount of $129,213. In May 2019, Janke pleaded guilty to conspiracy to commit racketeering. Janke cooperated with the government’s investigation.
While an assistant coach of USC’s women’s soccer team, Janke conspired with William “Rick” Singer and others to falsely designate the children of Singer’s clients as soccer recruits in exchange for bribes. Specifically, Janke and co-conspirator Ali Khosroshahin, the team’s head coach, together purported to recruit one or two of Singer’s students to the USC women’s soccer team each year. In reality, the students were not USC-caliber soccer players and they were not actually recruiting them to be members of the team. To deceive USC’s subcommittee on athletic admissions into believing the students were legitimate recruits, Janke and Khosroshahin submitted falsified athletic “profiles,” which they either received from Singer or created themselves and which made the students appear to be elite high school athletes. In exchange, Singer paid Janke and Khosroshahin bribes, funded by the money from his clients, in the form of checks from his fake charity, the Key Worldwide Foundation, made out to the USC soccer program or to their private soccer club.
In June 2019, Khosroshahin pleaded guilty to his role in the conspiracy and was sentenced today to time served and one year of supervised release.
Case information, including the status of each defendant, is available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; 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. Attorneys Stephen E. Frank, Leslie A. Wright, Kristen A. Kearney and Ian Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Cocaine Distributor in Fidelis Way Drug Trafficking Organization Pleads GuiltyRead the Press Release
BOSTON – A drug distributor within a Boston-area drug trafficking organization (DTO) pleaded guilty yesterday to a drug trafficking conspiracy involving cocaine and cocaine base.
Nelsin Hernandez, 31, of Brighton, pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine. U.S. District Court Judge Denise J. Casper scheduled sentencing for Sept. 22, 2022.
Hernandez was charged with 23 others in June 2020 as part of Operation Snowfall, which ultimately resulted in the charging of two different drug trafficking conspiracies during the overall period of November 2018 through June 2020.
According to the charging documents, beginning in November 2018, law enforcement investigated a DTO in which Hernandez was a drug distributor. The DTO was comprised of Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the DTO assumed control over multiple apartments, where Hernandez and others stored, cooked, packaged, and sold drugs – most of which consisted of cocaine or cocaine base, which the DTO supplied to customers, wholesalers and distributors. As a result, the DTO caused a blight of the development and reduced the quality of life of the other residents. As the investigation continued, law enforcement ultimately identified another DTO operating within the Boston area and targeted its large-scale drug suppliers and their associates.
Hernandez distributed between approximately 100 and 200 grams of cocaine base during the course of his participation in the Fidelis Way DTO. Hernandez is the fourth defendant to plead guilty in the conspiracy. The remaining defendants have pleaded not guilty and are pending trial.
The charge of conspiracy to distribute and to possess with intent to distribute cocaine provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. 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.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Parents in College Admissions Case SentencedRead the Press Release
BOSTON – Two California parents were sentenced today in federal court in Boston for their participation in the college admissions case in which they paid a total of $600,000 to facilitate their children’s admission to college.
Bruce Isackson, 65, and Davina Isackson, 58, of Hillsborough, Calif., were each sentenced by U.S. District Court Judge Patti B. Saris to time served (approximately one day in prison), one year of probation and 250 hours of community service. Additionally, Bruce Isackson was ordered to pay a fine of $7,500 and Davina Isackson was ordered to pay a fine of $1,000. In May 2019, the Isacksons pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud. Bruce Isackson also pleaded guilty to one count of money laundering conspiracy and one count of conspiracy to defraud the IRS. The Isacksons cooperated with the government’s investigation.
The Isacksons conspired with William “Rick” Singer and others – including university athletic coaches and administrators as well as standardized test administrators – to secure their daughters’ admission to elite colleges and universities through bribery and fraud. Specifically, the Isacksons agreed to pay Singer a total of $600,000 to facilitate cheating on their younger daughter’s college entrance exam to obtain an inflated test score, as well as to facilitate both daughters’ college admissions as purported athletic recruits. To conceal the scheme, Bruce Isackson conspired to make the bribes appear as charitable donations by laundering the payments through Singer’s fake charity, the Key Worldwide Foundation, and deducted the payments from their taxes as purported charitable contributions.
Case information, including the status of each defendant, is available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; 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. Attorneys Stephen E. Frank, Leslie A. Wright, Kristen A. Kearney and Ian Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Turner Falls Man Sentenced to 15 Years in Prison for Child Pornography OffensesRead the Press Release
BOSTON – A Turners Falls man was sentenced yesterday in federal court in Springfield on child pornography charges.
Brian Cooper, 64, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 15 years in prison and five years of supervised release. On Feb. 24, 2022, Cooper pleaded guilty to four counts of distribution of child pornography, six counts of receipt of child pornography and one count of possession of child pornography.
Between April 2018 and October 2019, Cooper distributed, received and possessed child pornography files depicting children engaged in sexually explicit conduct. He distributed and received the child pornography files from online associates via Instagram. A search of Cooper’s residence in October 2019 revealed thousands of child pornography files stored on a tablet and multiple thumb drives. At the time of the search, Cooper was arrested on state court charges and has been detained since.
United States Attorney Rachael S. Rollins; David E. Sullivan, Northwestern District Attorney; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Catherine G. Curley of Rollins’ Springfield Branch Office is 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 www.projectsafechildhood.gov.
Statement from U.S. Attorney Rachael. S. Rollins Regarding the Dismissal of Charges Against Yanzhi ChenRead the Press Release
“Along with her husband, Haoyang Yu, Yanzhi Chen was charged by indictment in September 2020 with participating in a scheme to defraud Mr. Yu’s former employer, a Massachusetts company called Analog Devices Incorporated (ADI). Last month, a jury convicted Mr. Yu of one count of possessing a stolen ADI trade secret. However, the jury found Mr. Yu not guilty of the remaining 18 counts charged in the indictment, including counts alleging that Mr. Yu defrauded ADI and violated immigration laws.
Today’s dismissal of the fraud charges against Mr. Yu’s wife, Ms. Chen, is in the interests of justice. As prosecutors, we have a constant obligation to assess the merits of every prosecution that we pursue. Today’s dismissal is the result of my office’s continuing assessment of the evidence against Ms. Chen in light of the jury’s verdict against Mr. Yu. We understand that our charging decisions deeply impact people’s lives. I will continue to require our prosecutors to rigorously assess cases at every stage of our proceedings to see if we should continue pursuing and prosecuting those suspected of engaging in criminal conduct.”
Massachusetts Man Sentenced to 12 Years in Prison for Child Pornography OffenseRead the Press Release
BOSTON – A Massachusetts man was sentenced today in connection with receiving child pornography, including images of an infant.
Paul Weddington, 51, was sentenced by U.S. District Court Judge Denise J. Casper to 12 years in prison and five years of supervised release. On March 9, 2022, Weddington pleaded guilty to one count of receipt of child pornography.
According to court records, in November 2020, Nichole Cyr was arrested for child exploitation offenses after child sexual abuse material (CSAM), including images and videos, were located on her cell phones. Further analysis of Cyr’s phones found conversations with Weddington in which Weddington received CSAM from Cyr that depicted two children who were two and seven years old and known to Cyr. Following the investigation, Weddington’s phone was seized during a search of his residence in February 2021. The phone contained screenshots of an apparent video chat with Cyr in which CSAM of the two-year-old child was displayed.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Fall River Police Chief Paul Gauvin made the announcement today. Assistant U.S. Attorney Anne Paruti, Chief of Rollins’ Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Enforcer of New Bedford Latin Kings Chapter Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – A former member and Enforcer of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) pleaded guilty today to racketeering charges.
Orlando Santiago-Torres, a/k/a “King Landy,” 27, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy, and conspiracy to manufacture and distribute controlled substances. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Oct. 13, 2022.
According to court documents, the Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
As Enforcer, Santiago-Torres was an officer in the New Bedford Chapter of the Latin Kings and was responsible for organizing violence against rival gang members and instilling discipline among Latin Kings members in the commission of violence. Santiago-Torres also organized security for the Latin Kings’ apartment buildings, or “trap houses,” from which the gang members distributed cocaine and cocaine base.
At today’s hearing, Santiago-Torres admitted to participating in a series of violent acts and shootings that were committed in New Bedford in furtherance of the Latin Kings enterprise. In February 2019, Santiago-Torres assaulted a rival gang member and was captured on video chasing the rival gang member down, pushing him to the ground and kicking him. In May 2019, Santiago-Torres participated in the assault and shooting of a rival gang member and was captured on video surveillance with other Latin King members, one of whom engaged in a fight with the rival member and fired a handgun at him. In July 2019, Santiago-Torres fired multiple rounds of ammunition on a New Bedford street at rival gang members as they fled a fight with the Latin Kings. Later, in September 2019, Santiago-Torres participated in a shooting with other Latin Kings members in which a victim was struck with gunfire and casings from the scene were linked to a firearm recovered from Santiago-Torres’ apartment. Lastly, in November 2019, Santiago-Torres and other Latin Kings members assaulted a rival gang member, in which Santiago-Torres dragged the victim out of a vehicle to beat and kick him on the street.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Santiago-Torres is the 59th defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to manufacture and distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district 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; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Paul Oliveira made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of Rollins’ Organized Crime and 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 remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bronx Man Sentenced for His Role in Large-Scale Fentanyl and Heroin Trafficking Ring in SpringfieldRead the Press Release
BOSTON – A Bronx, N.Y., man has been sentenced in federal court in Springfield for his role in a large-scale drug conspiracy that trafficked dozens of kilos of heroin and fentanyl into Springfield from New York City and the Dominican Republic every month.
Marvin Ortega, 35, was sentenced on June 23, 2022 by U.S. District Court Judge Mark G. Mastroianni to 30 months in prison and two years of supervised release. In March 2019, Ortega pleaded guilty to one count of conspiring to distribute and possess with intent to distribute heroin.
“The impact of drug trafficking can be felt by everyone. Mr. Ortega was involved in an organization that funneled heroin and fentanyl into the Springfield area – profiting off of people’s pain,” said United States Attorney Rachael S. Rollins. “Drug trafficking activities, specifically those involving fentanyl, pose an immeasurable threat to public safety. The opioid crisis has taken the lives of over two thousand people last year in our Commonwealth. They were mothers, children, fathers, siblings, and loved ones and they are gone. Forever. We cannot allow ourselves to grow numb to this epidemic and become complacent. My office will not look the other way. Narcotics dealers will be identified, prosecuted and held accountable.”
“DEA is committed to investigating and dismantling Drug Trafficking Organizations and individuals like Mr. Ortega who are responsible for distributing lethal drugs like heroin and fentanyl to the citizens of Massachusetts” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division. “Let this arrest be a warning to those traffickers who distribute this poison in order to profit and destroy people’s lives. DEA’s top priority is combating the opioid epidemic by working with our local, county, state and federal partners to bring to justice anyone who distributes deadly drugs.”
“Opioid-related overdoses and deaths affect our community on a daily basis. The increase of fentanyl on our streets has only increased how deadly these drugs have become. This sentence will hopefully send a message to those individuals looking bring heroin and fentanyl into our city and region that we have a team of law enforcement partners working together to investigate and ultimately convict those responsible. I’d like to thank U.S. Attorney Rollins, her team and our local, regional and federal partners for their work on this investigation,” said Springfield Police Superintendent Cheryl C. Clapprood.
Ortega transported heroin to Springfield and the proceeds from the sale to New York for a drug trafficking organization (DTO) based in Springfield, which was run by Alberto Marte. Marte had direct contact with heroin suppliers in the Dominican Republic and members of his DTO transported between eight and 20 kilograms of heroin, with a street value of approximately $1.6 million and $4 million, respectively, into the Springfield area every month. When law enforcement authorities executed federal search warrants in September 2016, they recovered approximately $140,000 in cash and over six kilograms of heroin.
U.S. Attorney Rollins; DEA SAC Boyle; Superintendent Clapprood; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Hampden County District Attorney Anthony D. Gulluni; Chicopee Police Chief Patrick Major; Holyoke Police Chief David Pratt; and West Springfield Police Chief Paul Connor made the announcement. Assistant U.S. Attorneys Neil L. Desroches of Rollins’ Springfield Branch Office and Stephen W. Hassink of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Brockton Man Pleads Guilty in Sophisticated Drug Trafficking Conspiracy that Operated Using the Dark WebRead the Press Release
BOSTON – A Brockton man pleaded guilty today in federal court in Boston to his role in a highly sophisticated drug trafficking operation that manufactured and distributed a multitude of controlled substances using the Dark Web.
Steven McCall, 26, pleaded guilty to conspiracy to manufacture, distribute and possess with intent to distribute MDMA, commonly known as ecstasy, Ketamine and Alprazolam (Xanax). U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Sept. 28, 2022.
McCall was indicted in June 2019 along with co-conspirators Binh Thanh Le and Allante Pires. Le, who was the ringleader of the drug-trafficking operation, created and operated a vendor site called “EastSideHigh” in marketplaces on the Dark Network, more commonly known as the Dark Web. The Dark Web is any portion of the internet that can only be accessed with specific software, configurations or authorization that anonymize internet traffic. Le used these Dark Web markets to advertise various drugs for sale, including cocaine, MDMA, Ketamine and Xanax. Le ordered and received wholesale quantities of the drugs he and the others were distributing in the mail, principally from foreign sources in Canada and Europe. McCall and Pires then processed and manufactured those controlled substances at an office space Le rented in Stoughton. After receiving the orders and payment via Bitcoin, the men mailed the drugs to customers throughout the United States.
At the time of his arrest, McCall had been manufacturing and packaging controlled substances at the co-conspirators’ stash location in Stoughton and was wearing latex gloves and a respirator.
Over 19 kilograms of MDMA, almost seven kilograms of Ketamine, nearly one kilogram of cocaine, more than 10,000 counterfeit Xanax pills and over $114,000 in cash were seized by authorities during the investigation. Investigators also recovered a computer with the “EastSideHigh” vendor page open, numerous packages containing MDMA and Ketamine, various shipping and packaging materials and a pill press from the office space in Stoughton.
On March 10, 2022, Le was sentenced to eight years in prison and three years of supervised release. Le was also ordered to forfeit more than 59 Bitcoin (currently worth more than $1.2 million), $114,680 in cash, $42,390 representing the proceeds from the sale of a 2018 BMW M3, along with other items including a pill press and currency counter. On June 3, 2022, Pires pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on Sept. 8, 2022.
The charge of conspiracy to manufacture, distribute and possess with intent to distribute MDMA, commonly known as ecstasy, Ketamine and Alprazolam (Xanax) provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. 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; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; Matthew B. Millhollin, Special Agent in Charge for the Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Norfolk County District Attorney Michael W. Morrissey; and Jennifer De La O, Director of Field Operations of U.S. Customs and Border Protection, Boston Field Office made the announcement. Special assistance with the investigation was provided by the Homeland Security Investigations in Colorado; Postal Inspectors from around the country; and the Stoughton, Norwood and Brockton Police Departments. Assistant U.S. Attorney James E. Arnold of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
Statement from United States Attorney Rachael S. Rollins on the Motion to Dismiss in United States v. BaptisteRead the Press Release
“Today’s dismissal of the criminal charges against Joseph Baptiste and Roger Boncy is the result of recently discovered contemporaneous communications about calls recorded on December 19, 2015 between defendant Boncy and an undercover FBI agent. These communications were never disclosed to the prosecutors on the case prior to the evening of June 23, 2022. Moreover, the FBI does not have the original recordings it made of the December 19, 2015 calls.
These defendants were first tried and convicted in 2019. The trial judge vacated their convictions pursuant to Rule 33 for ineffective assistance of counsel. The First Circuit affirmed the granting of a new trial. In preparation for that retrial, and in response to requests from defense counsel, the FBI gave the recently discovered materials to the prosecutors late last week and we promptly produced them to defense counsel the next day.
As the government, our charging decisions deeply impact people’s lives. We have an obligation to provide all discoverable evidence in our possession to the defense. That is a core principle of the criminal legal system. After a careful review of this entire matter, we dismiss these charges in the interest of justice.”
Salisbury Woman Pleads Guilty to Sexually Exploiting an Infant in Her CareRead the Press Release
BOSTON – A Salisbury woman pleaded guilty on June 24, 2022 in federal court in Boston to the sexual exploitation of an infant.
Desiree Daigle, 26, pleaded guilty to sexually exploiting a child before U.S. District Court Chief Judge F. Dennis Saylor IV who scheduled sentencing for Oct. 24, 2022. Daigle was arrested and charged in November 2018.
“Ms. Daigle grossly exploited and sexually victimized an infant, took a video of her abuse which she shared with others. Her conduct tears at the hearts of all parents. This kind of case drives my office’s mission to do all that it can to prosecute individuals like Ms. Daigle, who prey on innocent and defenseless children,” said United States Attorney Rachael S. Rollins. “Together with our law enforcement partners, we will continue to use every tool in our arsenal to investigate and prosecute those who exploit our most vulnerable and bring justice to victims.”
“What Desiree Daigle has admitted to today is enough to make anyone’s stomach turn. There are few situations more urgent than when a child is physically at risk. People like her, who sexually exploit children, do serious lasting harm, and to engage in the manufacturing and trading of child sexual abuse material only perpetuates the abuse,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI is committed to finding such predators, locking them up, and ensuring the children they have victimized are safe.”
In November 2018, Daigle was identified in online chats exchanging various child pornography files with another individual. Some of the images depicted an infant in Daigle’s care, apparently taken in Daigle’s home. During the chats, Daigle discussed plans for the other individual to meet the child in person so that they could sexually abuse the child together.
The charge of sexual exploitation of children provides for a mandatory minimum sentence of 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release and a fine of $250,000. 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. Valuable assistance was provided by the Amesbury, North Andover, Salisbury, Arlington, Billerica, Methuen, and Haverhill Police Departments. Assistant U.S. Attorney Anne Paruti, Chief of Rollins’ Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by 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 identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former New Bedford Police Union Treasurer Sentenced for Stealing Union FundsRead the Press Release
BOSTON – A former New Bedford Police Department (NBPD) officer and NBPD Union Treasurer was sentenced today for stealing nearly $50,000 in union funds.
Joshua Fernandes, 41, of New Bedford, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to three months in prison and two years of supervised release, of which the first six months will be served in home confinement with location monitoring for the first three months. The government recommended a sentence of one year in prison. Fernandes was also ordered to pay restitution in the amount of $47,851. In October 2021, Fernandes pleaded guilty to one count of wire fraud.
“Mr. Fernandes took an oath to protect and serve the people of New Bedford. Instead, he violated the trust bestowed upon him by both the New Bedford community and his fellow officers,” said United States Attorney Rachael S. Rollins. “For several years, Mr. Fernandes stole tens of thousands of dollars in union funds and recklessly spent it on a range of personal expenses including beach vacations, phone bills and online dating. Adding insult to injury, he tried to cover up his theft by backfilling the depleted accounts with more stolen funds from the Union’s retirement investment account. Public officials who misuse their positions of trust for their own personal enrichment will be prosecuted. No one is above the law.”
“As a police officer, and union treasurer, Joshua Fernandes took an oath to uphold the law, but today he was sent to prison for breaking it. Fernandez stole tens of thousands of dollars in union funds—the hard-earned money of his fellow officers—and instead spent it on himself to settle more than four hundred personal charges, such as beach vacations, event tickets, children’s toys, and online dating,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “What he did is abhorrent, and today’s sentencing should be a warning to others that the FBI is committed to rooting out public corruption and preserving trust in law enforcement.”
Fernandes abused his position as Union Treasurer by using nearly $50,000 in union funds to pay for personal expenses including vacations, family outings, and a monthly wireless family phone plan, among other things. Fernandes carried out his scheme by reimbursing his personal credit card accounts with union funds and by using the union’s credit cards to pay directly for non-union expenses.
U.S. Attorney Rollins, FBI SAC Bonavolonta and Jonathan Russo, District Director of U.S. Department of Labor, Office of Labor Management Standards made the announcement today. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Rollins’ Public Corruption & Special Prosecutions Unit prosecuted the case.
Springfield Woman Sentenced for Pandemic Unemployment Fraud SchemeRead the Press Release
BOSTON – A Springfield woman was sentenced yesterday for her involvement in a scheme to fraudulently obtain COVID-19-related unemployment assistance.
Audri Ford-Victory, 61, was sentenced by U.S. District Court Judge Mark G. Mastroianni to three years of probation, with six months to be served in home confinement. On Jan. 31, 2022, Ford-Victory pleaded guilty to one count of wire fraud conspiracy.
In March 2020, in response to the global COVID-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which in Massachusetts is administered by the Department of Unemployment Assistance (DUA). This program provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits.
Ford-Victory submitted 25 PUA claims in Massachusetts on behalf of individuals living outside of Massachusetts. As a result, Massachusetts DUA issued $215,246 in payments to individuals not entitled to PUA benefits. Ford-Victory received kickback payments in exchange for submitting the fraudulent claims.
United States Attorney Rachael S. Rollins; Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, New York Regional Office made the announcement. The Massachusetts Department of Unemployment Assistance provided assistance in the investigation. Assistant U.S. Attorneys Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit and Neil L. Desroches of Rollins’ Springfield Branch Office 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.
Somerville Attorney Indicted for Attempting to Bribe Medford Police ChiefRead the Press Release
BOSTON – A Somerville attorney was arrested today on charges that he engaged in a scheme to bribe the Medford Chief of Police.
Sean O’Donovan, 54, was indicted on two counts of honest services wire fraud and one count of bribery concerning programs receiving federal funds. O’Donovan will make an initial appearance in federal court in Boston this afternoon.
“This case is about attempted corruption of government officials. I commend the Chief of Police in Medford for reporting this illegal behavior to the FBI immediately,” said United States Attorney Rachael S. Rollins. “We must ensure that greed and unethical conduct do not undermine the proper functioning of city governments across our Commonwealth. This prosecution does just that.”
“Today, the FBI arrested attorney Sean O’Donovan for allegedly engaging in a pay-to-play scheme in which he tried to capitalize on his insider access, in attempting to bribe the Medford Police Chief, for his own financial benefit,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “It is vitally important that host community agreements be awarded through a fair and transparent process, not through back-door deals funded by bribes to those in positions of power. We believe what we have uncovered in this case is not only an affront to all the hard-working businesses that play by the rules, but a betrayal of Mr. O’Donovan’s client and the community’s trust.”
According to the indictment, in late 2018, a company involved in the cultivation and retail sale of medical and recreational marijuana (the Client) retained O’Donovan as a consultant to assist in obtaining a Host Community Agreement (HCA) with the City of Medford. Under Massachusetts law, recreational marijuana retail establishments are required to sign an HCA with cities to obtain an operational license. In 2020, Medford established a local Cannabis Advisory Committee (CAC), composed of five Medford officials, including the Medford Chief of Police (Chief). The Medford CAC is tasked with reviewing, interviewing and ranking marijuana retail applicants on behalf of the Mayor of Medford, who has final authority to decide which applicants are selected.
It is alleged that in February 2021, O’Donovan approached Individual 1 and offered to pay Individual 1 $25,000 to speak with the Chief about the Client’s anticipated application for an HCA with Medford. Individual 1 is a close relative of the Chief and subsequently informed the Chief of O’Donovan’s offer. The Chief immediately alerted federal authorities of the alleged bribe.
Over the course of the investigation, O’Donovan, believing he had an agreement with Individual 1 and the Chief, offered to pay Individual 1 approximately $25,000 in exchange for the Chief’s favorable action on the Client’s application. Specifically, O’Donovan sought to have the Chief favorably rank the Client HCA application in his role on the Medford CAC and have the Chief advising and pressuring the Mayor to enter into an HCA with the Client.
According to the indictment, O’Donovan took steps to conceal the true purpose of the planned bribe payment. For example, O’Donovan allegedly proposed falsely characterizing a payment as a loan to Individual 1 and offered to pay the bribe money in cash, stating, “If I give you cash, there will be no trace.” It is further alleged that O’Donovan rejected the idea of a contract with Individual 1, explaining that he did not “think that’s a good paper trail.” On or about October 11, 2021, O’Donovan met with Individual 1 and allegedly provided Individual 1 with $2,000 in cash as a down payment on the bribe. It is further alleged that O’Donovan was slated to receive a stream of income of at least $100,000 annually from the Client’s marijuana business if its Medford application were successful.
According to the indictment, O’Donovan never informed the Client of his bribery scheme with Individual 1. In October 2021, when O’Donovan proposed that the Client hire Individual 1 as a consultant, the Client rejected the proposal and told O’Donovan that the Client was an “above board company.”
The charge of honest services 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. The charge of federal programs bribery provides for a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; and FBI SAC Bonavolonta made the announcement today. The Department of Justice commends the Medford Chief of Police for immediately bringing this matter to the attention of federal law enforcement. Assistant U.S. Attorney Kristina E. Barclay of Rollins’ Public Corruption & Special Prosecutions Unit and Trial Attorney Jonathan E. Jacobson of the Department of Justice’s Public Integrity Section are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New York Man Sentenced for COVID-19 Relief Fraud SchemeRead the Press Release
BOSTON – A New York Man was sentenced today on charges arising from a scheme to fraudulently obtain business loans and unemployment pandemic relief funds made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Ronald Buie, 35, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 18 months in prison and three years of supervised release. Buie was also ordered to pay restitution in the amount of $304,237. On March 15, 2022, Buie pleaded guilty to one count of wire fraud.
Buie engaged in a scheme to defraud the U.S. Small Business Administration (SBA) by submitting fraudulent applications for loans offered in connection with the CARES Act. Specifically, Buie used stolen or fabricated identities – including counterfeit driver’s licenses, Social Security cards and W-2s, among other forged documents – to open fraudulent bank and credit accounts and to apply for various SBA loans and Massachusetts and Ohio Pandemic Unemployment Assistance (PUA) benefits. Buie also submitted fraudulent documentation to apply for and obtain a fraudulent SBA loan for $60,000 for his company, Platinum Car Service LLC. Specifically, in support of his loan application, Buie provided what he purported to be a monthly bank statement for his business checking account showing an ending balance of more than $198,000, whereas bank records for that particular month show that the actual balance was less than $3,000.
As a result of the scheme, Buie fraudulently obtained over $274,000 in SBA loans and over $70,000 in PUA benefits. Of this, one SBA loan of approximately $65,000 was successfully reversed and $5,000 in cash was seized from Buie’s residence.
United States Attorney Rachael S. Rollins; Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations; and Ketty Larco-Ward, Inspector in Charge of the United States Postal Inspection Service made the announcement today. Valuable assistance was provided by the U.S. Secret Service, New York Field Office; Massachusetts Department of Unemployment Assistance; and the New York City Police Department. Assistant U.S. Attorney William F. Abely, Chief of Rollins’ Criminal Division, prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
New Bedford Man Arrested for Fentanyl DistributionRead the Press Release
BOSTON – A New Bedford man was arrested on June 22, 2022 on drug distribution charges involving fentanyl.
Hector Diaz, 44, was indicted on two counts of distribution of and possession with intent to distribute fentanyl. Diaz was released on conditions following an initial appearance yesterday before U.S. District Court Magistrate Judge Judith G. Dein.
According to the indictment, on two occasions between December 2020 and January 2021, Diaz distributed and possessed with intent to distribute fentanyl in New Bedford.
The charge of possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, three years and up to a lifetime of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement. Assistant U.S. Attorney Sarah Hoefle of Rollins’ Organized Crime & Gang Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Paramedic Charged with Fentanyl TamperingRead the Press Release
BOSTON – A former Massachusetts emergency medical technician (EMT) paramedic has been charged in connection with tampering with liquid fentanyl vials at the ambulance company at which she worked.
Candice Mangan, 41, of Medford, was charged with tampering with a consumer product. She will appear in federal court in Boston at a later date.
According to the charging document, from approximately March 2020 to early October 2020, Mangan – a licensed EMT paramedic in Massachusetts – worked part-time as an EMT for an ambulance service company in Massachusetts. It is alleged that on or about Sept. 30, 2020, while working in Needham, Mangan tampered with three fentanyl citrate vials by removing fentanyl citrate and replacing it with saline. The liquid remaining in the three vials contained only approximately 4.4%, 6.8%, and 24.2% of the declared concentration of fentanyl citrate.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences in a criminal case 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; Bradley E. Greenburg, Acting Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; and Margret R. Cooke, Commissioner of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Howard Locker of Rollins’ Health Care Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Owner of Illicit Massage Parlor Sentenced for Submitting Fraudulent COVID-Relief Loan ApplicationsRead the Press Release
BOSTON – The former owner of a massage parlor pleaded guilty yesterday in connection with filing fraudulent applications for pandemic-related loans under the Coronavirus Aid, Relief and Economic Security (CARES) Act in which she failed to disclose that her employees engaged in commercial sex acts with customers.
Aticha Jittaphol, 33, of Brighton, pleaded guilty to two counts of making false statements in federal loan applications. U.S. Senior District Court Judge Mark L. Wolf sentenced Jittaphol to time served (approximately two months). Jittaphol was charged in September 2021.
Jittaphol is the former owner of Mantra Dhevi Spa in Brighton. In March and April of 2020, Jittaphol submitted fraudulent applications for Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans in which she falsely stated that the applicant was not engaged in any illegal activity. However, her employees at Mantra Dhevi Spa engaged in prostitution from which she collected a portion of fees paid by each customer. Jittaphol also actively promoted the prostitution by recruiting employees and attracting new customers. In total, Jittaphol obtained $7,066 in fraudulent payments from the EIDL and PPP loan programs.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Acting Commissioner Gregory Long made the announcement. Special assistance was provided by the Cambridge, Boston, Franklin and Lexington Police Departments. Assistant U.S. Attorneys Kelly Lawrence, David Derusha and Elysa Wan of Rollins’ Criminal Division and Suffolk County Assistant District Attorneys Alyssa Tochka and Luke Goldworm, who were appointed as Special Assistant U.S. Attorneys, 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.
Former Owner of Illicit Massage Parlor Sentenced for Nearly $30,000 COVID-19 Relief FraudRead the Press Release
BOSTON – The former owner of a massage parlor was sentenced yesterday in connection with filing for and obtaining fraudulent pandemic-related loans for her illicit business where workers engaged in commercial sex acts with customers.
Chynna Savath, 57, of Woonsocket, R.I., was sentenced by U.S. District Court Judge Richard G. Stearns to three years of probation. Savath was also ordered to pay restitution in the amount of $34,391. On Jan. 20, 2022, Savath pleaded guilty to two counts of wire fraud.
Savath is the former owner of Thai Body Work, a massage parlor in Franklin, Mass. In June 2020, Savath submitted fraudulent applications to the Small Business Administration for COVID-19 relief through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) program under the Coronavirus Aid, Relief and Economic Security Act. In the applications, Savath falsely certified that the applicant was not engaged in any illegal activity, despite knowing that her employees at Thai Body Work engaged in prostitution with customers and that she collected a portion of fees paid by each customer. In total, Savath obtained $34,391 in fraudulent payments from the EIDL and PPP loan programs.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Acting Commissioner Gregory Long made the announcement. Special assistance was provided by the Cambridge, Boston, Franklin and Lexington Police Departments. Assistant U.S. Attorneys Elysa Wan of Rollins’ Criminal Division and Suffolk County Assistant District Attorneys Alyssa Tochka and Luke Goldworm, who were appointed as Special Assistant U.S. Attorneys 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.
Belchertown Man Arrested for Social Security FraudRead the Press Release
BOSTON – A Belchertown man was arrested yesterday in connection with fraudulently receiving Social Security disability benefits.
Kenneth Pontz, 58, was charged with one count of theft of public funds. Pontz was released on conditions following an initial appearance yesterday in federal court in Springfield before U.S. District Court Magistrate Judge Katherine A. Robertson.
According to the indictment, over a period of more than six years, Pontz stole approximately $63,871 in Social Security disability benefits.
The charge of theft of public 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, 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 Sharon MacDermott, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Rollins’ Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Worcester Man Sentenced to over Seven Years in Prison on Multiple Charges Stemming from Cocaine Trafficking OperationRead the Press Release
BOSTON – A Worcester man was sentenced today for cocaine trafficking, firearms, money laundering and fraudulent tax return charges.
William Hoey, 41, was sentenced by U.S. District Court Judge Timothy S. Hillman to 87 months in prison and four years of supervised release. On March 7, 2022, Hoey pleaded guilty to three counts of possession with intent to distribute cocaine and distribution of cocaine; two counts of possession with intent to distribute cocaine; one count of using and carrying a firearm during and in relation to, and possessing a firearm in furtherance of, a drug trafficking crime; two counts of money laundering; and three counts of filing a false and fraudulent tax return.
“Today’s sentence should send a clear message to drug traffickers across the District: this office takes seriously our commitment to holding individuals accountable who pollute our communities with drugs and violence,” said United States Attorney Rachael S. Rollins. “Like so many others, Mr. Hoey thought he could make a business out of trafficking deadly narcotics and conceal his activity by laundering proceeds. I commend our federal law enforcement partners for their outstanding collaborative and investigative work to make the Worcester community safer.”
“Illegal drug distribution ravages the very foundations of our families and communities here in Massachusetts” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division. “Let this arrest and sentencing serve as an example to those who distribute poisons like cocaine. The DEA will aggressively pursue and hold you accountable. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners here in Massachusetts and our solid relationship with the U.S. Attorney’s Office.”
“The possession and distribution of illegal narcotics is often a predicate offense to both money laundering and tax violations,” Said Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Division, Boston Field Office. “Drug traffickers use money laundering as a way to introduce their illegal profits into our local economies and failing to report these profits on their tax returns is a violation of the law. This sentence is another example of our successful partnership with the Drug Enforcement Administration and our collaborative effort to identify and disrupt narcotics traffickers in the New England area.”
On three occasions between July 2019 and September 2019, Hoey sold over 348 grams of cocaine to a cooperating witness.
On Oct. 22, 2019, while travelling to meet with the cooperating witness for another cocaine deal he had arranged, Hoey was stopped by law enforcement in his vehicle. A search of the vehicle resulted in the seizure of approximately 499.4 grams of cocaine as well as a 9 mm Ruger handgun containing seven live rounds of ammunition. Hoey admitted that he had the gun in case there was a problem during the cocaine deal. A subsequent search of Hoey’s residence resulted in the seizure of approximately 835.9 grams of cocaine from a safe, a Sig Sauer semi-automatic handgun loaded with eight rounds of ammunition, a black Beretta firearm with 10 rounds of ammunition, $4,450 in cash, cutting agents, a scale, weights, a money counter and several cellphones.
Hoey also attempted to conceal drug trafficking proceeds by moving money from his bank accounts into accounts held by someone else. On Oct. 25, 2019, Hoey caused TD Ameritrade to issue a check from his account in the amount of $80,400 payable to another person, that was then deposited into a recently opened Leominster Credit Union account in the other person’s name. And, on March 24, 2020, Hoey caused another check to be issued by TD Bank in the amount of $87,180 payable to the same individuals that was deposited into the Leominster Credit Union account. Hoey conducted these financial transactions knowing that the funds in both the TD Ameritrade and TD Bank accounts did in fact include funds from his drug trafficking activities.
Additionally, in 2017, 2018 and 2019, Hoey filed false and fraudulent tax returns by omitting his income from drug dealings in his tax filings for each year.
U.S. Attorney Rollins, DEA SAC Boyle and IRS-CI SAC Simpson made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Worcester Man Sentenced for Civil Disorder and Unlawful Possession of Molotov CocktailRead the Press Release
BOSTON – A Worcester man was sentenced today for civil disorder and the unlawful possession of three Molotov cocktails during a demonstration in the City of Worcester over the murder of George Floyd.
Vincent Eovacious, 20, was sentenced by U.S. District Court Judge Timothy S. Hillman to time served (approximately three days in prison) and three years of supervised release. The government recommended a sentence of 13 months in prison. In September 2021, Eovacious pleaded guilty to one count of civil disorder and one count of possession of an unregistered firearm, which includes a Molotov cocktail.
On June 1, 2020, crowds gathered at various locations in Worcester, including South Main Street, to protest the murder of George Floyd. At approximately 10 p.m., a large crowd blocked traffic and began throwing rocks, bottles and other objects at police. As officers on scene gathered into a defensive line formation, officers spotted Eovacious – dressed in a trench coat and carrying a satchel over his shoulder – standing above them on the roof of the one-story building at 848 Main Street. Eovacious appeared agitated, paced back and forth on the rooftop and could be heard screaming at the crowd below to “kill the police.” Officers then observed Eovacious reach into the satchel and remove a white rag and a bottle that contained a yellow-colored liquid. While holding what appeared to be a lighter in one hand, Eovacious attempted to insert the rag into the glass bottle. In response to this threat, officers shined their flashlights at Eovacious, causing him to retreat from the edge of the rooftop and out of the officers’ direct line of sight. Minutes later, officers observed Eovacious walking in the area of May and Main Streets, still carrying the satchel, and stopped him. They searched the satchel and recovered three clear glass bottles filled with gasoline, five white rags and two lighters. Eovacious admitted that the bottles contained gasoline and that he was “with the anarchist group” and was “waiting for an opportunity.” At the time of his arrest, a partially filled gas can and more cloth rags were found in Eovacious’ vehicle.
“During what should have been a peaceful demonstration, Mr. Eovacious sought to incite violence by bringing dangerous Molotov cocktails with him and threatening to kill police officers,” said United States Attorney Rachael S. Rollins. “Protesting injustice is legal. Violence, destruction and threats are not. My sincere thanks to our law enforcement partners for their work on this case as well as their work every day protecting our communities and ensuring the rights of everyone.”
“This defendant possessed and recklessly attempted to use an explosive device which had the potential to cause significant damage and injure countless people,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division. “ATF is committed to protecting our communities from harm and working with our law enforcement partners to disrupt violent activity.”
“Vincent Eovacious had no compunction about committing civil disorder and causing chaos by building Molotov cocktails with the apparent intent of hurling them at police officers, putting their lives, and the lives of others in danger. His behavior was appalling, and this case should serve as a warning to others that you’ll face a swift law enforcement response and federal prosecution if you commit violent acts that break federal law,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
U.S. Attorney Rollins, ATF SAC Ferguson, FBI SAC Bonavolonta and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Danial E. Bennett of Rollins’ Worcester Branch Office prosecuted the case.
Former Malden Firefighter Pleads Guilty to Possession and Distribution of Controlled SubstancesRead the Press Release
BOSTON – A former Malden firefighter pleaded guilty today in federal court in Boston in connection with conspiring to distribute controlled substances including oxycodone, suboxone, Klonopin and Adderall.
Joshua Eisnor, 43, of North Reading, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute controlled substances. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Oct. 11, 2022. Eisnor was charged on May 26, 2022.
While working as a firefighter at the Malden Fire Department, Eisnor distributed controlled substances to other members of the Malden Fire Department.
“As a firefighter, Mr. Eisnor was responsible for the safety and wellbeing of Malden’s residents. His conduct violated this duty by potentially compromising the security and operations of the fire department and putting residents at risk,” said United States Attorney Rachael S. Rollins. “My office has a zero-tolerance policy for public officials who abuse their positions of trust.”
“Former Malden firefighter Joshua Eisnor admitted today to dealing drugs—while on duty—to his fellow firefighters, putting them, and the community they serve in potential danger," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “His actions are an affront to the overwhelming majority of firefighters who go to work substance-free and alcohol-free every day and risk their lives to protect ours.”
“Prescription drugs offered illegally have no guarantees of safety or efficacy and hold the potential to harm those who use them,” Bradley E. Greenburg, Acting Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office. “We will continue to investigate and bring to justice those who put the health of the public at risk.”
“The VA Office of Inspector General is committed to investigating those who would abuse VA’s programs and services,” said Christopher F. Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG thanks the U.S. Attorney’s Office and our law enforcement partners for their hard work leading to today’s guilty plea.”
The charge of conspiracy to distribute and to possess with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, five years of supervised release and a fine of up to a $500,000. Sentences in a criminal case 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, FBI SAC Bonavolonta, FDA-CI Acting SAC Greenburg and VA-OIG SAC Algieri made the announcement today. Special assistance was provided by the Merrimack Valley Transnational Organized Crime Task Force. Assistant U.S. Attorneys Eugenia M. Carris, Deputy Chief of Rollins’ Public Corruption & Special Prosecutions Unit and Howard Locker, of Rollins’ Health Care Fraud Unit, are prosecuting the case.
California Man Indicted for Child Exploitation OffenseRead the Press Release
BOSTON – A California man has been indicted by a federal grand jury in Boston for allegedly surreptitiously filming an 11-year-old Massachusetts girl as she changed in her bedroom.
Jacob Guerrero, 24, of Woodland, Calif., was indicted on one count of sexually exploiting a child. Guerrero was previously arrested and charged by criminal complaint on April 14, 2022. He remains in federal custody.
“Mr. Guerrero is alleged to have targeted and followed young innocent children in our communities – one of whom being an 11-year-old girl he allegedly preyed upon and exploited for the purposes of producing child pornography,” said United States Attorney Rachael S. Rollins. “Child exploitation is one of the most heinous crimes and perpetrators will be aggressively pursued by this office. We will not hesitate to exhaust every resource necessary to identify and prosecute those who seek to sexualize and harm our most vulnerable population, our children.”
“Jacob Guerrero is an accused child predator who went to great lengths to sexually exploit an innocent, 11-year-old girl. The conduct we allege in this case is horrific, and it’s also a prime example of how a child can be victimized in their very own home,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “While we are grateful to have put a stop to Mr. Guerrero’s behavior, the FBI will continue to work with our law enforcement partners to identify, investigate and arrest others like him who seek to commit crimes against children.”
On or about March 17, 2021, it is alleged that Guerrero recorded a video of an unclothed 11-year-old girl while she changed in her bedroom at her home in Norfolk, Mass. Guerrero allegedly climbed to the top of a garage attached to the victim’s home and stood just outside the victim’s second floor bedroom window as she changed. In the two weeks leading up to that recording, it is further alleged that Guerrero conducted surveillance of the victim’s home and made notes on his phone regarding the time of day that the victim and her siblings arrived home, showered and changed clothes each night. Guerrero allegedly recorded similar notes for the children residing in several other Massachusetts homes.
According to the charging documents, this case arose following an investigation into allegations that Guerrero, while dressed in a wig and women’s clothing, attempted to surreptitiously record minor females in bathrooms and changing rooms at the Wrentham Outlets using pen cameras affixed to his shoes.
Members of the public who have questions, concerns, or information regarding this case should call 617-748-3274.
The charge of sexually exploiting a child provides for a mandatory minimum sentence of at least 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release and a fine of $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, FBI SAC Bonavolonta and Wrentham Police Chief William McGrath made the announcement today. Special assistance was provided by the Norfolk District Attorney’s Office. Assistant U.S. Attorney Mark Grady, Deputy Chief of Rollins’ Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
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.
Stoughton Man Pleads Guilty to $400,000 COVID-Relief Fraud SchemeRead the Press Release
BOSTON – A Stoughton man pleaded guilty today in federal court in Boston in connection with filing a fraudulent loan application in order to obtain over $400,000 in Paycheck Protection Program (PPP) loan funds.
Adley Bernadin, 44, pleaded guilty to one count of wire fraud before U.S. District Court Judge Indira Talwani who scheduled sentencing for Sept. 28, 2022. Bernadin was arrested and charged on March 17, 2022.
In May 2020, Bernadin submitted a fraudulent application on behalf of a purported home health care company for a PPP loan of over $400,000. In the application, which he submitted through a Small Business Administration approved lender, Bernadin misrepresented information about the purported home health care company’s employees and payroll expenses and falsified a tax form in an effort to qualify the business for the PPP loan. For example, Bernadin reported that the purported home health care business had a monthly payroll of $175,200, which was false.
After receiving the PPP funds, Bernadin did not use money for the purported home health care company’s business. Instead, he made mortgage payments on his home and wrote checks to individuals with whom he had a personal relationship.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP.
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. 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 William A. Kalb, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration, Northeast Field Division made the announcement today. Assistant U.S. Attorneys Benjamin A. Saltzman of Rollins’ Criminal Division and Raquelle Kaye 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.
Northborough Man Pleads Guilty to Embezzling over $360,000 from Non-ProfitRead the Press Release
BOSTON – A Northborough man pleaded guilty today in federal court in Worcester to wire fraud and money laundering charges after embezzling approximately $366,477 from a non-profit organization in Sturbridge.
Kyriakos Kapiris, a/k/a Rick Kapiris, 36, pleaded guilty to two counts of wire fraud and one count of money laundering. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Oct. 14, 2022. Kapiris was indicted in October 2021.
From April 2015 to May 2020, Kapiris worked as the Information Technology Manager at a non-profit organization. As part of his responsibilities, the organization provided Kapiris access to two company credit cards to purchase equipment and services as needed. Beginning in 2016, Kapiris used the two company credit cards to purportedly purchase equipment from two vendor accounts on the web app Square and one account on Amazon. In reality, Kapiris created the three vendor accounts to embezzle the funds and fabricated sales invoices for purportedly purchased equipment to conceal the scheme. Kapiris used the names of legitimate Massachusetts companies for the two Square accounts and created the Amazon account in the name of a company that he controlled, “NetworkingPlus.”
Kapiris linked the three vendor accounts to several of his own personal accounts at Bank of America into which he transferred the fraudulent proceeds. Kapiris then used the stolen funds for personal expenses including a $19,250 payment to a home contractor.
The charges of wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of money laundering 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistance was provided by the Sturbridge and Northborough Police Departments. Assistant U.S. Attorneys Lucy Sun and Kristen Noto of Rollins’ Worcester Branch Office and Nicole Dapcic of Rollins’ Asset Recovery Unit are prosecuting the case.
Level 3 Registered Sex Offender who Extorted 11-Year-Old for Explicit Photos via Snapchat Pleads GuiltyRead the Press Release
BOSTON – A Lowell man pleaded guilty today in federal court in Boston to receiving child pornography he extorted from a minor over Snapchat.
Chayanne Nieves, 24, pleaded guilty to one count of receipt of child pornography. U.S. District Court Judge Indira Talwani scheduled sentencing for Sept. 21, 2022. Nieves was arrested and charged in August 2021, and has remained in custody since.
“Mr. Nieves committed a heinous crime that victimized a young, innocent child. For that, he now faces federal prison,” said United States Attorney Rachael S. Rollins. “The dangers of internet and social media anonymity remain prevalent, but my office is determination to protect the safety, innocence and wellbeing of our children. In collaboration with our law enforcement partners, my office will stop at nothing to identify and hold predators like this defendant accountable – regardless of where they try to hide. That is a promise.”
“Nieves, already a registered sex offender, harassed and threatened a child online, using fear to extort her—a scenario becoming all too common,” said Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston. “Cases like this are every parent’s nightmare, but with this plea, Nieves is off the streets. HSI continues to work tirelessly to uncover internet predators like Nieves and, with the help of our partners, keep our kids safe online.”
“This case serves as a reminder that predators continue to target and exploit our children online. It's important for parents to be active participants in their young children's online lives, to speak with children about the potential dangers present on the internet, and to alert the authorities to any potential suspicious or criminal conduct. The Vermont State Police commends the members of law enforcement who investigated and prosecuted this case. We are grateful for these partnerships across state lines and among local, state and federal agencies that help keep our communities and our corners of cyberspace that much safer for everyone, especially our children,” said Major Dan Trudeau, Commander of the Vermont State Police’s Criminal Division.
From around Nov. 30, 2020 until Dec. 3, 2020, Nieves communicated on Snapchat with an 11-year-old child in Vermont. During those communications, Nieves threatened and extorted the victim to send him nude photographs of themself. During a search of Nieves’s residence in Lowell, Nieves confirmed that the Snapchat account used to communicate with the child was his. Nieves is a Level 3 registered sex offender.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
Based on Nieves’s criminal history, the charge of receipt of child pornography provides for a sentence of at least 15 years and up to 40 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, HSI SAC Millhollin and Major Trudeau made the announcement today. Valuable assistance was provided by the Lowell Police Department. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Boston Man Sentenced for Cocaine DistributionRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for his role in a cocaine trafficking conspiracy.
Tarik Muhammad, 27, was sentenced by U.S. District Court Judge Richard G. Stearns to two years in prison and three years of supervised release. On June 3, 2022, Muhammad pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine.
Muhammad was charged in June 2020 along with 23 others as part of a multi-year investigation into a drug trafficking organization (DTO) comprised of Boston-based street gang members and associates. According to the charging documents, beginning in November 2018, law enforcement investigated drug trafficking activities in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown.
Muhammad was identified as a drug distributor for the DTO. Intercepted calls between Muhammad and Kenji Drayton, one of the main suppliers and distributors within the DTO, revealed communication regarding coordinated meetup locations, which law enforcement surveilled. Subsequently, law enforcement stopped their vehicle and searched the occupants. While searching Muhammad, an object was found at the crease of Muhammad’s buttocks, at which time he was transported to the police station.
During the transport, Muhammad threw himself to the ground thrashing. Officers radioed these observations to the police station and upon arrival, Muhammad was found covered with white powder. A ripped plastic bag containing white residue was subsequently recovered from the outer area of Muhammad’s buttocks.
Muhammad is the eighth defendant to be sentenced in the case. Of the remaining defendants, 13 have pleaded guilty and are awaiting sentencing, three are pending trial and one defendant remains at large.
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.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance in the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Offices. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran, Chief of the Organized Crime & Gang Unit, prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Molina Healthcare Agrees to Pay over $4.5 Million to Resolve Allegations of False Claims Act ViolationsRead the Press Release
BOSTON – Molina Healthcare, Inc. (Molina) and its previously owned subsidiary, Pathways of Massachusetts (Pathways), have agreed to pay $4.625 million to resolve allegations that it violated the False Claims Act by submitting reimbursement claims while violating several regulations related to the licensure and supervision of staff.
Molina is a managed care health services company that provides health care plans to various state and federal health care programs including MassHealth, the joint federal and state Medicaid program. Between November 2015 and March 2018, Molina owned and operated Pathways, a group of mental health centers located in Springfield and Worcester. During that period, the government contends that Molina and Pathways improperly submitted claims for reimbursement to MassHealth and care entities managed by MassHealth while failing to properly license and supervise mental health center staff, including social workers and psychological associates, and failing to provide and timely document the provision of adequate clinical supervision to clinicians requiring supervision.
The settlement also resolves allegations brought in a lawsuit filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties, known as relators, to bring suit on behalf of the government and to share in any recovery.
United States Attorney Rachael S. Rollins; Massachusetts Attorney General Maura Healey; and Phillip M. Coyne, Special Agent in Charge of HHS-OIG, made the announcement today. The matter was handled by Assistant U.S. Attorney Steven Sharobem, of Rollins’ Affirmative Civil Enforcement Unit, and Assistant Attorneys General Ian Marinoff and Matthew Jones, of the Massachusetts Attorney General’s Office’s Medicaid Fraud Division.
Brockton Man Sentenced to 13 Years in Prison for Role in Violent Drug Trafficking OrganizationRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for his role in a wide-ranging drug trafficking conspiracy reaching from Boston to Brockton to Cape Cod.
Cody Goncalves, 28, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 13 years in prison and four years of supervised release. In September 2021, Goncalves pleaded guilty to conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin, 400 grams or more of fentanyl, cocaine, cocaine base, oxycodone and marijuana; possession with intent to distribute 100 grams or more of heroin; possession with intent to distribute 40 grams or more of fentanyl, cocaine, cocaine base and marijuana; being a felon in possession of ammunition; and possession of a firearm in furtherance of a drug trafficking offense.
“Cody Goncalves played a major role in running a drug trafficking operation that, for years, fueled violent crime in the community – plaguing the surrounding neighborhood with murder and gunfire,” said United States Attorney Rachael S. Rollins. “Thanks to the collaborative and dogged work between our local, state and federal law enforcement partners, this dangerous drug hub has been shuttered. My office will continue to prioritize protecting our communities and cracking down on drug traffickers and violent offenders. To those who seek to make a living off peddling deadly drugs, let me be clear: you will be identified, prosecuted and held accountable to the fullest extent of federal law.”
“Cody Goncalves was part of the violent drug crew responsible for moving vast quantities of fentanyl and other deadly drugs throughout southeastern Massachusetts. While they turned a profit, people and their families were tormented by the forces of drug use and addiction,” said Matthew Millhollin, Special Agent in Charge for the Homeland Security Investigations New England Field Office. “HSI is committed to dismantling and disrupting drug trafficking operations to stop the flow of drugs into New England. We’re proud to join our partners to announce today’s sentence.”
“DEA is committed to investigating and dismantling Drug Trafficking Organizations and individuals like Mr. Goncalves who are responsible for distributing lethal drugs like fentanyl and heroin,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division. “Today’s sentence not only holds Mr. Goncalves accountable for his 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 combating the opioid epidemic by working with our local, county, state and federal partners to bring to justice anyone who distributes this poison.”
In the fall of 2018, law enforcement began investigating a violent Brockton drug crew headed by Djuna Goncalves, Cody Goncalves’s brother. The investigation revealed that the Goncalves brothers worked with others to distribute large quantities of fentanyl, heroin, cocaine, cocaine base and marijuana throughout southeastern Massachusetts from a base of operations on Addison Avenue in Brockton. The investigation also targeted several Boston-based drug suppliers to the Goncalves brothers. Large quantities of heroin, fentanyl, cash and a loaded firearm were seized from Cody Goncalves, who had previously been convicted of unlawful possession of a firearm and who had distributed drugs while on pre-trial release from a state drug charge.
In all, 17 defendants, including Cody Goncalves, were indicted as part of a wide-ranging drug trafficking conspiracy, of whom 16 have now been sentenced. Djuna Goncalves has pleaded guilty to his roles in the conspiracy and is scheduled to be sentenced on June 30, 2022.
U.S. Attorney Rollins, HSI SAC Millhollin, DEA SAC Boyle and Colonel Christopher Mason, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Alathea E. Porter of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Braintree Man Pleads Guilty to Role in Cocaine Trafficking Conspiracy and Ammunition OffenseRead the Press Release
BOSTON – A Braintree man pleaded guilty on June 16, 2022 to trafficking cocaine and illegally possessing ammunition.
Martin Angomas, 32, pleaded guilty to conspiracy to distribute and possession with intent to distribute cocaine and to possessing ammunition as a convicted felon. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Oct. 19, 2022.
Angomas was charged in July 2020 along with 24 others as part of “Operation Snowfall” – a multi-year investigation into drug trafficking activities by a drug trafficking organization (DTO) comprised of Boston-based street gang members and associates. According to the charging documents, beginning in November 2018, law enforcement investigated drug trafficking activities gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown.
The investigation identified Angomas as a drug distributor and supplier. During intercepted communications between Angomas and co-defendant Hassan Monroe, a wholesale supplier and distributor within the DTO, Angomas coordinated providing Monroe with cocaine to be given to Kenji Drayton, one of the DTO’s principal suppliers and distributors. Angomas and Monroe were later observed meeting at an agreed-upon location, getting into a vehicle and driving to meet Drayton for the deal. They then left in separate vehicles.
During a search of Angomas’ residence in June 2020, ammunition, cocaine base (crack cocaine), two loaded firearms and over $360,000 were recovered. Angomas’ residence also contained an elaborate hide. At the time of the offense, Angomas had a prior conviction punishable by a more than one year in prison.
Angomas is the 13th defendant to plead guilty in the case. Seven of the defendants have been sentenced. Of the remaining defendants, three are pending trial and one defendant remains at large.
The charge of conspiracy to distribute and possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of possessing ammunition as a convicted felon provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
This 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.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance in the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Offices. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran, Chief of the Organized Crime & Gang Unit prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
West Barnstable Woman Sentenced for Stealing Opioids from Veterinary OfficeRead the Press Release
BOSTON – A West Barnstable woman was sentenced on June 15, 2022 in federal court in Boston in connection with stealing hydrocodone, an opioid and Schedule II controlled substance, from the veterinary office where she worked.
Melissa Paradise, 43, was sentenced by U.S. District Court Judge Richard G. Stearns to time served (approximately one day in prison) and one year of supervised release. On Feb. 10, 2022, Paradise pleaded guilty to six counts of acquiring a controlled substance using a registration number assigned to another person and eight counts of acquiring a controlled substance by misrepresentation, fraud, forgery, deception and subterfuge.
In late 2018 and 2019, federal investigators noted that an unusually large amount of hydrocodone had been ordered by the veterinary office. In June 2019, the investigators conducted an audit at the animal hospital during which Paradise was identified as the office manager responsible for record keeping regarding prescriptions.
Upon her arrival at the office on the day of the audit, Paradise admitted to investigators that she used the DEA registration number assigned to a veterinarian in the practice without the veterinarian’s knowledge or consent to order controlled substances which she then stole for her personal use. Paradise also admitted that she forged the signature of a second veterinarian on other prescription documents and diverted those drugs for her own use. The second veterinarian later confirmed that the signature on the documents was forged.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Valuable assistance was provided by the Barnstable Police Department. Assistant U.S. Attorney Nadine Pellegrini of Rollins’ Criminal Division prosecuted the case.
U.S. Attorney Rachael S. Rollins Selected as Vice-Chair of the Attorney General’s National Advisory Subcommittee on Civil RightsRead the Press Release
BOSTON – United States Attorney Rachael S. Rollins for the District of Massachusetts has been selected to serve as Vice-Chair of the Civil Rights Subcommittee for the Attorney General’s Advisory Committee (AGAC).
“I am honored to have been asked to serve as Vice-Chair of the Civil Rights Subcommittee. It is my sincere hope that we seize this moment in history to facilitate meaningful dialogue and action to combat the uptick in hate-based violence. Civil rights are at the forefront of so many of the issues dividing our nation today. Under the leadership of U.S. Attorney Brown, we will provide guidance to the Department of Justice. Our goal is to fulfill the promise of equality for everyone,” said U.S. Attorney Rollins.
United States Attorney Nick Brown for the Western District of Washington has been selected to serve as Chair the Civil Rights Subcommittee. The Subcommittee will play an important role in advising the AGAC on civil rights matters of importance to the Department of Justice and United States Attorney’s Offices across the country.
“I am gratified that my colleagues and Attorney General Garland selected me for this important role,” said U.S. Attorney Brown. “The Department of Justice came into being to protect civil rights, and I look forward to helping shape our focus. There are a number of important issues for the Department to address, including the rise in hate crimes, ensuring voting rights, and developing strategies to ensure accountability and trust between law enforcement officers and the communities they serve.”
The Attorney General’s Advisory Committee was established nearly 50 years ago by Attorney General Elliott Richardson. The Committee’s purpose is to give United States Attorneys a voice in Department policies and to advise the Attorney General of the United States.
Two Plead Guilty in Heroin and Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – Two Worcester residents have pleaded guilty to their roles in a drug trafficking conspiracy involving fentanyl and heroin. The defendants pleaded guilty on the morning of June 13, 2022, upon commencing jury selection for their previously scheduled trial.
Cintia Franco, 34, and Amauris Antonio Rosario Garcia, a/k/a “Animal,” 39, each pleaded guilty to conspiracy to distribute and to possess with intent to distribute more than 40 grams of fentanyl; conspiracy to distribute and to possess with intent to distribute fentanyl and heroin; and distribution of and possession with intent to distribute heroin and fentanyl. Garcia also pleaded guilty to distribution of and possession with intent to distribute fentanyl. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Oct. 19, 2022. Franco and Garcia were charged in October 2019 along with co-conspirators John Robles and Jector Torres.
“The defendants engaged in a conspiracy to distribute deadly drugs, many of which disguised as pharmaceutical-grade prescription pills, into the Worcester community and profit off of people’s pain and suffering,” said United States Attorney Rachael S. Rollins. “The opioid epidemic is still raging. Every day, fentanyl takes countless lives and causes irreversible destruction and harm in our communities across the Commonwealth and the country. Drug traffickers will be prosecuted and removed from our communities. This is a priority in my administration.”
In early 2019, Robles was identified by investigators selling purported oxycodone pills, which were later determined to be counterfeit pills containing fentanyl, at Albino’s Market in Worcester. Intercepted communications from Robles’ phone identified that Garcia was the supply source and that Garcia was distributing pills through Robles and Torres. The investigation also revealed that Garcia and Franco were distributing heroin, fentanyl pills and powdered fentanyl directly to users in Worcester.
Robles and Torres previously pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on Sept. 27, 2022 and Oct. 17, 2022, respectively.
The charge of conspiracy to distribute and to possess with intent to distribute more than 40 grams of fentanyl provides for a sentence of up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. All other charges each provide for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district 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 Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Valuable assistance was provided by the Worcester Police Department, Massachusetts State Police and Connecticut State Police. Assistant U.S. Attorneys Kristen M. Noto and Danial E. Bennett of Rollins’ Worcester Branch Office 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.
Owner of Tech Services Company Sentenced to More than Three Years in Prison for $13 Million COVID-Relief Fraud SchemeRead the Press Release
BOSTON – A Winchester man was sentenced yesterday in federal court in Boston in connection with filing fraudulent loan applications seeking more than $13 million in forgivable loans guaranteed by the Small Business Administration (SBA) for COVID-19 relief through the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Elijah Majak Buoi, 40, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 39 months incarceration and three years of supervised release. Buoi was also ordered to pay restitution of $2 million and forfeiture of $2 million. On Feb. 24, 2022, Buoi was convicted by a federal jury of four counts of wire fraud and one count of making a false statement to a financial institution.
Beginning in or around April 2020, and continuing until at least in or around June 2020, Buoi devised a scheme to obtain PPP funds by repeatedly filing false and fraudulent loan applications in which he systematically used false tax documents and payroll processing records until he was ultimately awarded a loan.
Buoi submitted six fraudulent PPP loan applications on behalf of his company Sosuda Tech, LLC (Sosuda) to four different SBA-approved lenders. In each loan application, Buoi misrepresented the number of employees and payroll expenses. Buoi also submitted fraudulent IRS tax forms in support of his applications. The evidence at trial showed that Sosuda was a startup company with no U.S.-based payroll and no U.S.-based employees. As a result of his scheme, Buoi obtained a $2 million PPP loan. The government recovered approximately $1.97 million of the loan funds.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
United States Attorney Rachael S. Rollins; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Stephen Donnelly, Acting Special Agent-in-Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection; Amaleka McCall-Brathwaite, Special Agent in Charge of the Small Business Association, Office of Inspector General, Eastern Regional Office; and Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General, New York Region, made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Rollins’ Securities, Financial, and Cyber Fraud Unit, and Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section 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.
Leicester Man Sentenced to Nearly Three Years in Prison for Unemployment and Loan Fraud Schemes Related to COVID-19 PandemicRead the Press Release
BOSTON – A Leicester man was sentenced yesterday in federal court in Worcester for his involvement in fraud schemes affecting the United States Small Business Administration (SBA) Loan and Pandemic Unemployment Assistance (PUA) Programs in Massachusetts and Nevada.
William Cordor, 27, was sentenced by U.S. District Court Judge Timothy S. Hillman to 33 months in prison and three years of supervised release. Cordor was also ordered to pay $8,000 in restitution to the SBA. In November 2021, Condor pleaded guilty to one count of conspiracy to commit wire fraud, four counts of wire fraud and four counts of aggravated identity theft.
Between May and October 2020, Cordor engaged in a fraudulent unemployment scheme by attempting to file numerous claims for unemployment with the State of Nevada by taking advantage of PUA funds made available due to the COVID-19 pandemic. Cordor filed the claims using the names, Social Security numbers and other personal identifying information of third parties for whom he had no legal authority to file such claims. The State of Nevada ultimately detected that the claims were fraudulent and did not approve the PUA funds.
Cordor also engaged in a second wire fraud scheme using stolen identities to fraudulently apply for COVID-19 Economic Injury Disaster loans made available by the SBA. Cordor used a third party’s personal identifying information to obtain a loan from the SBA under false pretenses, and then used the fraudulent funds for his own enrichment, including to pay for plane tickets, hotel accommodations, restaurants, entertainment and shopping during a Florida vacation.
In May 2020, Cordor agreed to surrender to federal authorities the balance of $79,000 in his bank account that were proceeds of a separate unemployment fraud scheme in Massachusetts. This occurred before Cordor filed the fraudulent unemployment claims with Nevada in July 2020.
United States Attorney Rachael S. Rollins; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations; and Andrew Murphy, Special Agent in Charge of U.S. Secret Service, Boston Field Office made the announcement today. Valuable assistance in the case was provided by the Leicester and Marlboro Police Departments. Assistant U.S. Attorneys John T. Mulcahy of Rollins’ Criminal Division and Danial Bennett of the Worcester Branch Office 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.
Brockton Man Sentenced to 30 Months in Prison for Role in South Shore Drug Distribution RingRead the Press Release
BOSTON – A Brockton man was sentenced on June 15, 2022 in federal court in Boston for his role in a drug trafficking conspiracy that spanned across the District.
Tony Goncalves, 24, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 30 months in prison and three years of supervised release. In October 2021, Goncalves pleaded guilty to conspiracy to distribute and to possess with intent to distribute heroin, fentanyl, cocaine, cocaine base, oxycodone and marijuana and possession with intent to distribute fentanyl, cocaine, cocaine base and marijuana.
In the fall of 2018, an investigation into a violent Brockton drug conspiracy led by Djuna Goncalves revealed that he worked with others, including his brothers Tony and Cody Goncalves, to distribute large quantities of fentanyl, heroin, cocaine, cocaine base and marijuana throughout southeastern Massachusetts from a base of operations at their family home in Brockton (Brockton base). The neighborhood surrounding the Brockton base has been the scene of numerous murders, shootings and other crimes of violence for several years.
During the investigation, intercepted conversations between Tony and Djuna Goncalves revealed that they conspired to distribute marijuana from the Brockton base, where in October 2018, an unidentified individual fired several shots at Djuna Goncalves. A subsequent search of the Brockton base resulted in the seizure of marijuana, packaging materials, scales, a kilo press, fentanyl, firearms and ammunition as well as documents in Tony and Djuna’s Goncalves’ names.
In all, 17 defendants, including Tony, Djuna and Cody Goncalves, were indicted as part of a wide-ranging drug trafficking conspiracy, of whom 15 have now been sentenced. Djuna and Cody Goncalves have each pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on June 30, 2022 and June 21, 2022, respectively.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; and Brockton Police Chief Brenda Perez made the announcement. Assistant U.S. Attorneys Christopher Pohl and Alathea E. Porter of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Associate of Former Fall River Mayor Sentenced for Extorting Marijuana Vendor and Making False StatementsRead the Press Release
BOSTON – An associate and co-conspirator of the now-imprisoned former Fall River Mayor Jasiel F. Correia II was sentenced on June 15, 2022 in federal court in Boston for extortion and lying to federal agents about his role in assisting Correia to obtain money and property from local marijuana vendors.
David Hebert, 57, of Westport, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to three years of probation. Hebert was also ordered to pay a fine of $25,000 and a money judgement of $61,000. In September 2020, Hebert pleaded guilty to one count of extortion conspiracy, one count of extortion and one count of false statements.
Hebert conspired with Correia to extort a marijuana vendor for donations to Correia’s campaign in exchange for a non-opposition letter. Under Massachusetts law, non-opposition letters from the head of local government are required in order to obtain a license to operate a marijuana business. Correia, as Mayor, was solely responsible for approving all non-opposition letters in Fall River.
Hebert handled the extortion for Correia and demanded that the marijuana vendor pay a total of $25,000 to Correia’s political campaign fund by purchasing $12,500 worth of fundraising tickets to two of Correia’s campaign fundraisers. Hebert also demanded that the vendor’s brother, who held a mortgage on one of Hebert’s properties, forgive the $61,000 mortgage balance owed by Hebert. As a result of the extortion, the marijuana vendor, his friends and his family members purchased the Correia fundraising tickets and his brother discharged the mortgage he held on Hebert’s property in exchange for the letter of non-opposition.
When interviewed by federal investigators in June 2019, Hebert falsely stated that he was not involved in the approval and opening of any marijuana dispensaries in Fall River and falsely stated that he had never acted as a financial conduit for Correia.
United States Attorney Rachael S. Rollins; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; 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, Northeast Regional Office; and Glenn A. Cunha, Massachusetts Inspector General, made the announcement. Assistant U.S. Attorneys David G. Tobin and Dustin Chao of Rollins’ Criminal Division prosecuted the case.
Statement from U.S. Attorney Rachael S. Rollins on the Acquittal of Amin KhouryRead the Press Release
Although we respect the jury’s verdict, we are disappointed. The government believes that the conduct and facts in this case warranted Mr. Khoury’s prosecution. Despite today’s verdict, this investigation, as well as the dozens of successful “Varsity Blues” prosecutions, have resulted in enormous and systemic changes in the college admissions process. These cases writ large have exposed the disturbing, improper, and inequitable role that wealth and privilege can play in distorting a system that is supposed to be merit based.
Stoughton Man Pleads Guilty to Illegal Possession of FirearmsRead the Press Release
BOSTON – A Stoughton man pleaded guilty today in federal court in Boston to firearm offenses.
Michael Robert Moura, 28, pleaded guilty to one count of being a felon in possession of firearms and one count of receipt and possession of an unregistered firearm. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for Oct. 11, 2022. Moura was arrested and charged in April 2021.
Over the course of several months in 2020 and again in February 2021, Moura sought to purchase a firearm. On the morning of April 28, 2021, Moura purchased a Glock handgun, an assault rifle, pistol and rifle magazines and over 100 rounds of ammunition in a parking lot in Brockton. Shortly thereafter, Moura was arrested and the illegally obtained handgun, rifle, ammunition and magazines were seized.
Moura is prohibited from possessing firearms and ammunition due to an April 2020 conviction in Worcester County punishable by more than one year in prison.
Both charges provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided the Brockton and Stoughton Police Departments. The investigation was led by the FBI’s Joint Terrorism Task Force. Assistant U.S. Attorneys Benjamin Tolkoff and Timothy Kistner of Rollins’ Criminal Division are prosecuting the case.
Steward Health Care System Agrees to Pay $4.7 Million to Resolve Allegations of False Claims Act ViolationsRead the Press Release
BOSTON – Steward Health Care System LLC (Steward) and several related corporate entities have agreed to pay approximately $4.735 million to resolve allegations that its relationships with several physicians and physician practice groups violated federal law, including the False Claims Act. Despite its public denials, in the signed settlement agreement, Steward “admits, acknowledges, and accepts responsibility” for the facts underlying the government’s allegations.
Steward is one of the largest, private for-profit health care networks in the nation and the owner of multiple hospitals in Massachusetts. Steward owns and operates Steward Good Samaritan Medical Center, Inc. (GSMC), a for-profit hospital in Brockton.
According to the settlement agreement, in 2011, GSMC entered into an agreement with Brockton Urology Clinic (Brockton Urology) which obligated Brockton Urology to administer a Prostate Cancer Center of Excellence at GSMC. Steward admits that, since at least January 2012, GSMC had no Prostate Cancer Center of Excellence and Brockton Urology did not provide the services specified in the agreement with GSMC. However, from April 2011 through December 2017, GSMC purportedly paid Brockton Urology pursuant to the agreement and Brockton Urology referred patients to GSMC.
The United States reached a separate settlement agreement with Brockton Urology in February 2022 regarding this conduct.
GSMC entered into a similar agreement with a separate physician practice. Steward paid that physician practice from April 2011 through December 2015, purportedly for cancer center services. During a portion of that time, GSMC had an agreement that obligated the practice to provide a physician to serve as the director of GSMC’s Prostate Cancer Program. Steward admits, however, that the physician practice never provided a physician to serve as the director of GSMC’s Prostate Cancer Program and, in fact, did not perform any of the services specified in the agreement. That practice also referred patients to GSMC.
Over the course of the government’s investigation, Steward disclosed facts concerning two other sets of physician relationships that the United States contends violated federal law. First, in October 2010, Steward entered into a compensation arrangement with a physician pursuant to which the physician agreed to serve as GSMC’s Medical Director of Post-Acute Care Services. Steward admits that it has been unable to confirm that the physician performed the services but that it still paid the physician from November 2010 through June 2016 and that the physician referred patients to GSMC during that period. Second, Steward admits that it failed to charge the proper rent on some of its leases with physicians, physician organizations and non-physician organizations, resulting in some of those entities paying rent below fair market value. Steward admits that between January 2010 and October 2015, it leased real property to these physicians and physician organizations and that those entities were referral sources for Steward’s Massachusetts hospitals.
In connection with the settlement, GSMC has entered into a five-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), which provides for an annual review of its financial arrangements for compliance with the Anti-Kickback Statute and the Stark Law by an Independent Review Organization.
“This case is about fraud, waste, and abuse by Steward at the expense of the American taxpayers,” said United States Attorney Rachael S. Rollins. “When hospitals like Steward violate the law, we will work tirelessly to recover from them taxpayer money in order to ensure that Medicare and Medicaid funds are going to treat patients instead of supporting fraud.”
“Financial and referral arrangements between hospitals and physician practices that violate federal health care laws undermine the integrity of crucial medical decision-making,” said Phillip M. Coyne, Special Agent in Charge of HHS-OIG. “This settlement is an example of the government’s combined efforts to protect Federal health care programs and their beneficiaries from those who are alleged to have violated these laws.”
“This settlement should serve as a warning to hospitals that they should not pay referring doctors for services that they did not provide,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Here a hospital paid referring physicians under the guise of a bogus cancer center. The FBI is proud to work alongside our partners to make sure hospitals follow the law and to root out fraud anywhere in the system.”
The False Claims Act settlement resolves Steward’s self-disclosures and allegations originally brought by a lawsuit filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties, known as relators, to bring suit on behalf of the government and to share in any recovery. In connection with today’s announced settlement, the relators will receive 17 percent of the recovery.
U.S. Attorney Rollins, HHS-OIG SAC Coyne and FBI SAC Bonavolonta made the announcement today. The Department of Defense’s Office of the Inspector General also provided assistance. Assistant U.S. Attorneys Charles B. Weinograd and Jessica J. Weber of Rollins’ Affirmative Civil Enforcement Unit handled the matter.
California Woman Pleads Guilty to Trafficking FentanylRead the Press Release
BOSTON – A California woman pleaded guilty yesterday in connection with travelling across the country to deliver fentanyl to an undercover officer.
Adelaida Yudit Garibay, 46, of Burbank, Calif., pleaded guilty to one count of possession with intent to distribute 400 grams or more of fentanyl. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Sept. 7, 2022. Garibay was charged on Sept. 30, 2021.
In September 2021, Garibay drove from California to Boston to deliver two kilograms of fentanyl to an individual who was an undercover officer. On Sept. 29, 2021, officers observed Garibay picking up fentanyl in Jamaica Plain and then get into a ride-sharing vehicle prior to her scheduled meeting with the undercover officer. During a subsequent traffic stop, two kilograms of fentanyl were found inside the vehicle in a bag at Garibay’s feet.
The charge of 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 supervised release and a fine of $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 and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Valuable assistance with the investigation was provided by the Boston Police Department. Assistant U.S. Attorney Samuel R. Feldman of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
Recidivist Defendant Sentenced for Child Pornography OffenseRead the Press Release
BOSTON – A former Hyde Park man was sentenced today in federal court in Boston for accessing child pornography while on federal supervised release for a similar offense.
David Ladeau, 66, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor to 10 years in prison and five years of supervised release. Ladeau was also sentenced to two years in prison for each of his two supervised release violations, which will run concurrently with the 10-year sentence. On Feb. 18, 2022, Ladeau pleaded guilty to access with intent to view child pornography.
Ladeau was previously convicted of federal charges in Massachusetts in 2010 for possession of child pornography. Later, in 2015, Ladeau was convicted of conspiracy to possess child pornography in the Middle District of Tennessee. While on federal supervised release for those convictions, law enforcement identified images of minors engaged in sexually explicit conduct on Ladeau’s court-monitored computer. A subsequent investigation determined that in January and February 2021, Ladeau had been using the computer to access child pornography saved on a thumb drive.
United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of the Homeland Security Investigations in Boston made the announcement. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Massachusetts Contractor Sentenced for $1.8 Million Payroll Tax SchemeRead the Press Release
BOSTON – An Ipswich man who owned and operated numerous Massachusetts businesses was sentenced yesterday for manipulating his payroll to evade over $1.8 million in taxes.
George Vasiliades, 58, was sentenced by U.S. District Court Judge Allison D. Burroughs to one year of home confinement and three years of supervised release. Vasiliades was also ordered to pay more than $1.8 million in restitution and a $200,000 fine. The government recommended a sentence of 30 months in prison.
In December 2021, Vasiliades pleaded guilty to 17 counts of failure to collect, account for and pay over federal employment taxes; 17 counts of aiding and assisting the filing of false tax returns; and one count of making a false statement to the Social Security Administration.
Vasiliades operated several businesses, including Alpine Property Services, Boston Central Management, Delta Labor Company, Olympic Painting & Roofing and Turnpike General Contracting. Between 2008 and 2013, Vasiliades concealed the true size of his companies’ payroll from the Internal Revenue Service (IRS) in order to reduce the cost of doing business and thereby increase his profits. Among other methods, Vasiliades directed certain employees to create shell corporations and then paid employees through these corporations as if they were independent contractors. Vasiliades also paid some employees from bank accounts that were not connected to his corporate payroll reporting software and, as a result, would not be reported as wages to the IRS. In addition, Vasiliades paid part of an employee’s hourly wages or salary in nontaxable, and false, expense reimbursements, such as truck or fuel reimbursements. In total, Vasiliades’ scheme resulted in more than $1.8 million in tax losses.
United States Attorney Rachael S. Rollins; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; Jonathan Mellone, Special Agent in Charge of the New York Region of the U.S. Department of Labor’s Office of Inspector General, Office of Criminal Investigations – Labor Racketeering and Fraud; and Carol S. Hamilton, Regional Director, U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office, made the announcement today. Assistant U.S. Attorneys Christopher J. Markham and Ian J. Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Worcester Man Convicted of Hobbs Act ConspiracyRead the Press Release
BOSTON – A Worcester man was convicted yesterday by a federal jury for his role in an attempted robbery of a Rockland-based glassware dealer.
Grace Katana, a/k/a “King Grace,” 31, was convicted of conspiracy to interfere with interstate commerce by robbery, commonly referred to as Hobbs Act robbery. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Oct. 20, 2022. Katana was indicted in July 2019 with co-defendants Junior Melendez, Shaun Walker and Keith Johnson.
According to the charging documents, in March 2019, Katana conspired with Melendez, Walker and, allegedly, Johnson to rob a high-end glassware dealer in Rockland. Intercepted communications revealed Katana and his co-conspirators planned the robbery over the course of six days. On March 25, 2019, the men traveled over 60 miles from Worcester to Rockland in two vehicles to scope out the robbery target location prior to purchasing a two-foot iron crowbar, screwdriver and razor blades from a nearby hardware store. Agents actively monitoring the defendants subsequently converged and disrupted the attempted robbery. In addition to the items purchased in Rockland, a loaded .380 firearm was seized from one of the vehicles.
Melendez and Walker previously pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on Sept. 28, 2022, and Oct. 13, 2022, respectively. Johnson has pleaded not guilty and is awaiting trial.
The charge of Hobbs Act conspiracy to interfere with commerce by robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; and Rockland Police Chief John R. Llewellyn made the announcement today. Assistant U.S. Attorneys Greg A. Friedholm and Kristen M. Noto of Rollins’ Worcester Branch Office are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Arrested for $2.5 Million COVID-Relief FraudRead the Press Release
BOSTON – A former Massachusetts resident and owner of a Massachusetts-based painting company has been arrested and charged in connection with allegedly filing a fraudulent loan application to obtain $2.5 million in Paycheck Protection Program (PPP) loan funds under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Vinicius Santana, 34, of Boca Raton, Fla. and formerly of Revere, was charged with one count of wire fraud. Santana was arrested Monday evening at Miami International Airport. He appeared in federal court in Miami yesterday afternoon and will appear in Massachusetts at a later date.
According to the charging documents, Santana owned Complete Home Care, LLC (CHC), a painting company in Massachusetts. In April 2020, Santana submitted four different PPP loan applications on behalf of CHC. The first three applications, in which Santana allegedly listed five employees and an average monthly payroll of between $10,000 and $18,000, were denied. In the fourth application for CHC, it is alleged that Santana falsely claimed to have 154 employees and an average monthly payroll of $1 million. On May 11, 2020, a bank issued Santana’s company a $2,500,000 loan based on the alleged false representations in the fourth application.
After receiving the funds, it is alleged that Santana misused the loan proceeds to buy cars and invest in cryptocurrency.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP.
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. 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; Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System; Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General, New York Region; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement today. Assistant U.S. Attorneys Benjamin A. Saltzman and Mackenzie A. Queenin of Rollins’ Securities, Financial & Cyber Fraud 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 complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Quincy Man Indicted for Child Pornography OffenseRead the Press Release
BOSTON – A Quincy man has been indicted by a federal grand jury in connection with receiving child pornography.
Matthew Ormon, 50, was indicted on one count of receipt of child pornography. He will appear in federal court in Boston on June 8, 2022, before U.S. District Court Magistrate Judge Marianne B. Bowler. Ormon was previously charged by criminal complaint on April 5, 2022.
According to the charging documents, during a search of Ormon’s residence on April 5, 2022, multiple electronic devices, including two custom built computers and a network drive device were seized. At least one device was found to contain a folder with numerous videos depicting child pornography. Forensic review of the devices remains ongoing.
The charge of receipt of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement. Special assistance was provided by the Quincy Police Department. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
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.
South Shore Landscaper Pleads Guilty to Underreporting $1.5 Million in Taxable IncomeRead the Press Release
BOSTON – The owner of a residential and commercial landscaping business operating in the South Shore area pleaded guilty today in connection with his failure to report approximately $1.5 million in income to the Internal Revenue Service.
Scott Herzog, 47, of Norwell, pleaded guilty to one count of filing a false tax return. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Oct. 6, 2022. Herzog was charged on April 18, 2022.
Herzog owned and operated Herzog Landscape Solutions. From 2016 through 2018, Herzog allegedly directed landscaping customers to pay him personally for jobs and then cashed many of these payments or deposited them into bank accounts unaffiliated with the landscaping business. Herzog then failed to report approximately $1.5 million in these receipts in the tax returns his tax preparer filed on his behalf. As a result of this alleged conduct, Herzog underreported his personal income tax obligations, causing a loss to the Internal Revenue Service of nearly $500,000.
The charge of 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 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 Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.