District of Massachusetts
Press releases recorded for this federal judicial district.
Two Everett Men Sentenced for Money Laundering ConspiracyRead the Press Release
BOSTON – Two Everett men were sentenced today for their participation in a scheme to launder money that was fraudulently obtained from customer bank accounts.
Lindsley J. Georges, 27, and Dave Guillaume, 24, were each sentenced by U.S. District Court Judge Allison D. Burroughs to time served and three years of supervised release, with six months spent in home confinement. Georges and Guillaume were also ordered to pay restitution in the amounts of $667,243 and $457,243, respectively. On Sept. 1, 2021, the defendants pleaded guilty to one count each of money laundering conspiracy.
In December 2017 and January 2018, Georges and Guillaume collectively deposited over $600,000 in checks into business bank accounts that they controlled. These checks were provided to Georges and Guillaume by other co-conspirators who had fraudulently withdrawn those funds from customer accounts at other banks. Georges and Guillaume subsequently withdrew a portion of the funds in cash and checks.
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. Assistant U.S. Attorneys Leslie A. Wright and Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Needham Police Officer and Two Others Arrested for Insider Trading SchemeRead the Press Release
BOSTON – Three men were arrested today for allegedly conspiring to trade on inside information about a Massachusetts company’s planned acquisition of a California semiconductor company.
David Forte, 58, of Acton; John Younis, 59, of Bristol, R.I.; and Gregory Manning, 59, of Needham, were each charged with one count of conspiracy to commit securities fraud. The defendants will appear in federal court in Boston this afternoon.
According to the charging documents, beginning in or around June 22, 2016, Forte - an officer with the Needham Police Department - obtained material non-public information from a close relative who is a senior executive at Analog Devices, Inc. (Analog), a Norwood-based semiconductor company, about Analog’s planned acquisition of Linear Technology Corp. (Linear), a semiconductor company based in Milpitas, Calif. Forte allegedly passed the information to two close friends, Manning and Younis, who purchased shares of Linear stock in the week leading up to the public announcement of the acquisition on July 26, 2016. Younis also allegedly purchased call options -which are a bet that the price of a stock will increase prior to the expiration of the option - and tipped a business associate to purchase Linear shares as well. After the deal was announced, Manning, Younis and Younis’ associate allegedly sold their Linear securities at a profit, and Manning paid Forte a kickback in appreciation for Forte’s stock tip.
The charge of conspiracy to commit securities fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 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 other statutory factors.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office, made the announcement. The Securities & Exchange Commission provided valuable assistance. Assistant U.S. Attorney David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lynn Man Indicted for Drug and Firearms Conspiracy Involving over 400 Grams of Fentanyl and Multiple Machine GunsRead the Press Release
BOSTON – A Lynn man was indicted by a federal grand jury today in connection with operating a drug trafficking organization in which he allegedly used pill presses to produce thousands of counterfeit pills per hour and distributed the counterfeit prescription pills containing fentanyl to suppliers on the North Shore.
Vincent Caruso, 26, a/k/a “Fatz,” was indicted on one count of conspiracy to manufacture, distribute and possess with intent to distribute 400 grams or more of fentanyl, cocaine, marijuana and other controlled substances; one count of conspiracy to possess firearms in furtherance of a drug trafficking crime; one count of possession of a machine gun in furtherance of a drug trafficking crime; conspiracy to interfere with commerce by robbery (Hobbs Act robbery); and one count of conspiracy to commit money laundering. Caruso was arrested and charged by Complaint on June 30, 2021 along with co-conspirators Ernest Johnson, Laurie Caruso and Nicole Benton. On Oct. 1, 2021, Benton pleaded guilty to her role in the conspiracy and is awaiting sentencing which is set for April 12, 2022.
According to the charging documents, Caruso, an alleged Crip gang member, operated a large drug trafficking organization with multiple subordinates, to sell counterfeit prescription pills containing fentanyl to street gangs for further distribution on the North Shore. It is alleged that Caruso possessed and used firearms in furtherance of drug trafficking activities. Caruso allegedly posted and messaged photos and videos using social media that depicted firearms and machine guns in his possession, large quantities of fentanyl that would be distributed by his organization, large amounts of cash and high-end jewelry. It is further alleged that Caruso conspired with others to conduct transactions in order to launder portions of the illegal proceeds of the drug trafficking operation.
The charge of conspiracy to manufacture, distribute and possess with intent to distribute 400 grams or more of fentanyl provides for a sentence of up to life in prison, at least 10 years and up to a lifetime of supervised release and a fine of up to $10 million. The charge of conspiring to possess firearms in furtherance of a drug trafficking conspiracy involving a machine gun provides for a sentence of up to life in prison, up to five years of supervised release and a fine of up to $250,000. The charge of possession of machine gun in furtherance of a drug trafficking crime provides for a sentence of at least 30 years, to be served consecutive to the sentence associated with the underlying drug trafficking crime, and up to life in prison, five years of supervised release and a fine of up to $250,000. The charge of conspiracy to interfere with commerce by robbery provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $500,000. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
First Assistant United States Attorney Joshua S. Levy: Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Colonel Christopher Mason, Superintendent of the Massachusetts States Police made the announcement today. Assistance was provided by the Essex, Middlesex and Suffolk County District Attorneys’ Offices; Essex, Middlesex, Suffolk and Hancock (Maine) County Sheriffs’ Departments; U.S. Attorney’s Office for the District of Maine; Maine Drug Enforcement Agency; and the Boston, Cambridge, Chelsea, Danvers, Everett, Lynn, Malden, Salem, Saugus, Somerville, Revere, Bolton (Maine), Bangor (Maine), Portland (Maine) and Westbrook (Maine) Police Departments. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cambridge Man Arrested on Child Pornography ChargeRead the Press Release
BOSTON – A Cambridge man was arrested and charged today in connection with purchasing child pornography with digital currency from the dark web.
David H. Chang, 27, was charged with one count of receipt of child pornography. Following an initial appearance this afternoon before U.S. District Court Magistrate Judge Marianne B. Bowler, Chang was detained pending a hearing which is set for Jan. 21, 2022.
According to the charging documents, between on or about April 2021 and January 2022, Chang used digital currency to purchase child pornography from the dark web. A search of Chang’s apartment this morning resulted in the recovery of electronic devices onto which Chang allegedly downloaded the child pornography he purchased. Additionally, Chang admitted to agents that he bought child pornography from a site on the dark web.
United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Homeland Security Investigations in New Haven (Conn.) provided valuable assistance. Assistant U.S. Attorney Benjamin Tolkoff of Rollins’ Major Crimes Unit is prosecuting the case.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
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 U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.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.
Brockton Man Sentenced for Fentanyl TraffickingRead the Press Release
BOSTON – A Brockton man was sentenced yesterday for his role in a conspiracy to distribute fentanyl throughout southeastern Massachusetts.
Filomeno Monteiro, 31, was sentenced by U.S. District Court Judge Patti B. Saris to 42 months in prison and six years of supervised release. In July 2021, Monteiro pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl and one count of distribution of fentanyl.
In 2019 and 2020, law enforcement conducted an investigation into fentanyl traffickers operating in southeastern Massachusetts. In December 2019, Monteiro worked with co-defendant Christian Collins to distribute 20 grams of fentanyl to a cooperating witness and undercover police officer at a location in Plympton. At the time of the offense, Monteiro was on probation for a prior Plymouth Superior Court conviction for kidnapping and aggravated assault. Monteiro was also previously convicted twice in state court of possession with intent to distribute cocaine and heroin and possession with intent to distribute marijuana.
On Dec. 10, 2021, Collins was sentenced by Judge Saris to five years in prison and four of supervised release.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Emanuel Gomes; East Bridgewater Police Chief Paul O’Brien; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy Cruz made the announcement. Assistant U.S. Attorney Christopher Pohl of Rollins’ Narcotics and Money Laundering Unit prosecuted the case.
Dominican National Pleads Guilty to Role in Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Dominican national residing in Lawrence pleaded guilty yesterday in federal court in Boston to conspiracy and distribution charges involving large quantities of fentanyl.
Ysrael Nunez, 39, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl; one count of distribution and possession with intent to distribute fentanyl; and one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl and aiding and abetting. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for March 18, 2022. Nunez was charged along with co-defendant Leisy Baez-Zapata in July 2019 and were subsequently indicted by a federal grand jury in August 2019.
In October 2018, agents began investigating a drug trafficking organization (DTO) that distributed fentanyl in the Lawrence area. Between October 2018 and July 2019, a cooperating witness made controlled purchases of fentanyl from the DTO and on July 24, 2019, Nunez sold the cooperating witness approximately 23 grams of fentanyl. During that meeting, they discussed the DTO supplying the cooperating witness with a kilogram of fentanyl. The following day, the cooperating witness made arrangements with Nunez to purchase a kilogram of fentanyl which Leisy Baez-Zapata subsequently delivered to the cooperating witness and an undercover agent.
On Sept. 29, 2021, Baez-Zapata was sentenced by Judge Sorokin to time served (approximately 26 months in prison) and three years of supervised release after previously pleading guilty.
The charges of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and distribution of 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 of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
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. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
Waltham Man Arrested on Child Pornography OffenseRead the Press Release
BOSTON – A Waltham man was arrested and charged on Tuesday, Jan. 11, 2022 in federal court on charges of receipt of child pornography.
Robert Daigle, 45, was charged with one count of receipt of child pornography. Following an initial appearance yesterday before U.S. District Court Magistrate Judge Marianne B. Bowler, Daigle was detained pending a detention hearing scheduled for Jan. 14, 2022.
According to the charging document, a search of Daigle’s residence on Jan. 11, 202 resulted in the recovery of electronic devices belonging to the defendant. An on-site forensic examination revealed images and videos depicting child pornography on at least one device.
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 on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; and Waltham Police Chief Kevin O’Connell made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus 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/.
Michigan Man Arrested for Unemployment Fraud and Identity Theft Related to COVID-19 PandemicRead the Press Release
BOSTON – A Michigan man was arrested yesterday in Michigan in connection with his alleged involvement in a fraudulent scheme to obtain COVID-19-related unemployment assistance.
Devin Smith, 30, was charged with one count of wire fraud and one count of aggravated identity theft. Smith was released on conditions following an initial appearance in federal court in Michigan yesterday afternoon. He will appear in federal court in Boston at a later date.
In March 2020, in response to the global coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act provided funding to existing state unemployment insurance programs and created a new temporary federal program called Pandemic Unemployment Assistance (PUA). The PUA program, which in Massachusetts was administered by the Department of Unemployment Assistance, provided unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits.
According to the charging document, Smith participated in a scheme to obtain proceeds from fraudulent unemployment and PUA claims submitted in nine different states, including Massachusetts, between March and May 2020. Smith allegedly used stolen identities, including the identities of Massachusetts residents, to submit fraudulent unemployment and PUA claims and to purchase various commercial goods. Additionally, it is alleged that Smith filed multiple fraudulent unemployment and PUA claims in his own name in six different states, including in Massachusetts.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins and Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations made the announcement today. Valuable assistance in the investigation was provided by the U.S. Postal Service and the Massachusetts Department of Unemployment Assistance. Assistant U.S. Attorney Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lynn Man Pleads Guilty to Firearms OffensesRead the Press Release
BOSTON – A Lynn man pleaded guilty today in connection with illegally possessing and selling firearms.
Jufrandy Montano, 32, pleaded guilty to one count of dealing in firearms without a license, one count of being a felon in possession of a firearm and ammunition and one count of possession of an unregistered firearm. Montano was indicted on Sept. 28, 2021. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for April 27, 2022. Montano is currently in Maine state custody where he is serving a sentence on unrelated state charges.
Between March 4 and March 19, 2020, Montano sold three firearms. Additionally, on March 4, 2020, Montano possessed a 12-gauge sawed-off shotgun that was not registered to him in the National Firearms Registration and Transfer Records. Montano does not possess a license to import, manufacture, or deal firearms and is prohibited from possessing firearms due to a prior felony conviction.
The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of possession of an unregistered firearm provides for a sentence of up to 10 years in prison, three years supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
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 Benjamin A. Saltzman of Rollins’ Criminal Division is prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Dominican National Sentenced for Social Security MisuseRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence was sentenced on Tuesday, Jan. 11, 2022 in connection with using another individual’s social security number.
Angel Bautista Rossi, 44, was sentenced by U.S. District Court Judge William G. Young to 18 months in prison and three years of supervised release. Bautista Rossi will be subject to deportation proceedings upon completion of his sentence.
In August 2017, Bautista Rossi used the identity and social security number of a U.S. citizen in an application for a Massachusetts driver’s license and to obtain medical benefits. In July 2020, Bautista Rossi, using the stolen identity, was arrested in Norfolk County on unrelated drug charges currently pending in the Norfolk Superior Court.
United States Attorney Rachael S. Rollins and John Cremonini, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Rollins’ Major Crimes Unit prosecuted the case.
Dominican National Sentenced for Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced yesterday for drug trafficking activities involving fentanyl.
Angel Aybar Carmona, 26, was sentenced by U.S. District Court Judge Denise J. Casper to 13 months in prison. On Sept. 16, 2021, Carmona pleaded guilty to one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl.
In December 2020, Carmona provided a sample of fentanyl along with his phone number to an undercover law enforcement officer. In subsequent text message conversations with Carmona, the undercover officer arranged to purchase 120 grams of fentanyl inside a store in Lawrence. After completing the sale, Carmona was arrested.
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 Lawrence Police Department. Assistant U.S. Attorney Stephen Hassink of Rollins’ Narcotics and Money Laundering Unit prosecuted the case.
United States Attorney's Office Announces Near $11,000 Recovery for Victims in Child Exploitation CaseRead the Press Release
BOSTON – The United States Attorney’s Office announced today that U.S. Senior District Court Judge George A. O’Toole authorized turnover of the full amount of funds held in an inmate trust fund account to the victims of Christopher Saemisch.
In March 2019, Saemisch was convicted by a federal jury in Boston of distributing child pornography to a currently incarcerated federal inmate. In 1997, Saemisch was convicted in federal court for conspiring to sexually exploit children, aiding and abetting the sexual exploitation of children, conspiring to distribute and receive child pornography, and distributing and receiving child pornography. He was also convicted by a Kansas court in 1999 for aggravated indecent liberties with a child under 14.
Due to his prior convictions, Saemisch was sentenced by Judge O’Toole to 30 years in prison and a lifetime of supervised release in July 2019. Saemisch was also ordered to pay restitution in the amount of $18,000 to his 18 individual victims.
According to court documents, in April 2016, agents received information from a federal inmate that Saemisch, who at the time was living in Kansas City, Kansas, admitted to looking at and storing child pornography and wanting to travel to Europe to have sex with children. Saemisch boasted to the inmate about his access to children and his new job babysitting four children. During their communications, Saemisch and the inmate used special coded language to discuss the collection and distribution of child pornography. The inmate confirmed that he and Saemisch used the code word “antiques,” when referring to child pornography and the code word “puppies,” to refer to children. On May 3, 2016, agents, pretending to be the inmate, began communicating with Saemisch. During the monitored conversations on various messaging apps and web platforms, Saemisch directed the undercover agents to set-up accounts to receive and exchange child pornography. He also sent them child pornography that he had stored on various file storage sites. Saemisch was arrested on May 6, 2016, while attending an event at a nudist campsite.
Upon learning that Saemisch had approximately $11,000 in funds in his inmate trust fund account, the United States filed a motion for turnover of these funds for the payment of restitution ordered to his victims. On Tuesday, Jan. 11, 2022, Judge O’Toole issued an order granting turnover of the full amount of the funds.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Michael Smith, Northeast Regional Director of the Federal Bureau of Prisons, made the announcement. Assistant U.S. Attorney Raquelle Kaye of Rollins’ Asset Recovery Unit handled the restitution aspects of this case. Assistant U.S. Attorneys James Herbert and Anne Paruti of Rollins’ Criminal Division prosecuted the case.
Two Loan Brokers and One Bank Loan Officer Charged in Bank Fraud SchemeRead the Press Release
BOSTON – Three men were charged yesterday, and have agreed to plead guilty, in connection with a scheme to defraud a Massachusetts-based bank and the U.S. Small Business Administration (SBA).
Ted Capodilupo, 56, of South Easton; Joseph Masci, 70, of Boston; and Brian Ferris, 43, of Braintree, were charged with one count each of conspiracy to commit bank fraud.
According to the charging documents, between 2015 and 2018, Capodilupo, Masci and Ferris agreed to defraud the bank and the SBA by submitting fraudulent loan applications to the bank, which administered the SBA’s small business express loan program, to secure bank loans guaranteed by the SBA. Specifically, it is alleged that Capodilupo and Masci, who operated a loan brokerage business, submitted dozens of fraudulent loan applications to the bank on behalf of borrowers ineligible for traditional business loans. These loan applications misrepresented, among other things, the identity of the real loan recipients and the businesses for which the loans were sought.
Capodilupo and Masci also allegedly fabricated federal tax forms submitted in support of the fraudulent loan applications, falsified applicant signatures and falsely indicated that no broker had assisted in preparing or referring the loan applications. Capodilupo and Masci allegedly charged borrowers fees for obtaining these fraudulent loans. It is alleged that Ferris, who worked as a loan officer at the bank, caused the bank to issue loans for which Capodilupo and Masci submitted applications and received a kickback from Capodilupo and Masci of approximately $500 per loan. The alleged scheme generated approximately $270,000 in fees for Capodilupo and Masci. Many of the loans that the bank issued as a result of the fraudulent applications ultimately defaulted, resulting in substantial losses to the bank.
The charge of conspiracy to commit bank fraud provides for a sentence of up to 30 years in prison; five years of supervised release; a fine of up to $1 million or twice the gross gain or loss, whichever is greater; restitution; and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), New York Region; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; 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; and Amaleka McCall-Brathwaite, Special Agent in Charge of SBA OIG’s Eastern Region, made the announcement. Assistant U.S. Attorney David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Revere Man Indicted for Drug and Firearm PossessionRead the Press Release
BOSTON – A Revere man was indicted today in connection with trafficking cocaine base (crack cocaine) and fentanyl as well as using a firearm in furtherance of the crime.
Cesar Rivera, 22, was indicted on one count of possession with intent to distribute 28 grams of cocaine base and fentanyl and one count of possession of a firearm in furtherance of a drug trafficking crime. Rivera has been in federal custody since July 2021.
According to the charging documents, in December 2020, Rivera was wanted on outstanding warrants on multiple state gun cases for which he had failed to respond court summons or to appear in court for over a year. On Dec. 22, 2020, law enforcement located Rivera at a carwash in Malden and he was subsequently arrested. At the time of his arrest, it is alleged that Rivera was carrying over 28 grams of crack cocaine, fentanyl and a firearm.
The charge of possession with intent to distribute 28 grams or more of cocaine base and fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. The charge of possession of firearm in furtherance of a drug trafficking crime provides for a sentence of at least five years and up to life in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
First Assistant United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Malden Police Chief Kevin Molis made the announcement today. Valuable assistance was provided by the Massachusetts State Police; the Middlesex County and Suffolk County District Attorney’s Offices; and the Boston Police Department. Assistant U.S. Attorney Philip A. Mallard of the 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 defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Indicted on Fentanyl Trafficking ChargesRead the Press Release
BOSTON – A Dominican national residing in Boston was indicted by a federal grand jury today on three drug-trafficking charges involving fentanyl.
Luis Sonier Bautista Moreta, 25, was indicted on two counts of distribution and possession with intent to distribute 400 grams or more of fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl. Bautista was arrested and charged on Nov. 10, 2021 and has remained in custody since that time.
According to the charging documents, a relative of Bautista negotiated two sales of fentanyl to an undercover officer. It is alleged that Bautista handled the sales transactions, which took place on Oct. 22, 2021, at the Home Depot in Attleboro and on Nov. 1, 2021, at a location in Dorchester. The first transaction allegedly involved one kilogram of fentanyl and 6,000 counterfeit pills containing fentanyl and that the second transaction involved an additional kilogram of fentanyl. Additionally, Bautista is alleged to have possessed additional fentanyl at the time of his arrest in Boston.
The charge of distribution and possession with intent to distribute 400 grams or more of fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of $10 million. The charge of possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
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 today. Valuable assistance in 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.
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.
Taunton Man Arrested on Firearms OffensesRead the Press Release
BOSTON – A Taunton man was arrested today in connection with illegally possessing and trafficking firearms.
Jaylen Rose, 27, was indicted on one count of dealing in firearms without a license and two counts of being a felon in possession of a firearm and ammunition. Following an initial appearance and arraignment today before U.S. District Court Magistrate Judge David H. Hennessy in federal court in Worcester, Rose assented to detention.
According to the indictment unsealed today, from in or around Dec. 2020 until Feb. 5, 2021, Rose allegedly engaged in firearms dealing. It is also alleged that on Feb. 5, 2021, Rose possessed two pistols and over 40 rounds of ammunition. Rose does not possess a license to deal firearms and is prohibited from possessing firearms due to prior convictions.
The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Taunton Police Chief Edward James Walsh made the announcement today. Special assistance was provided by the U.S. Marshals Service for the District of Massachusetts and the Massachusetts State Police. Assistant U.S. Attorney J. Mackenzie Duane of Rollins’ Major Crimes Unit is prosecuting the case.
Shirley Woman Sentenced to 18 Months in Prison for Wide-Ranging Multi-Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Shirley woman was sentenced yesterday in federal court in Worcester for her role in a wide-ranging fentanyl, heroin, crack and cocaine trafficking conspiracy.
Shasaalena Blair, 41, was sentenced by U.S. District Court Judge Timothy S. Hillman to 18 months in prison and three years of supervised release. In January 2021, Blair pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, 280 grams or more of cocaine base and 500 grams or more of cocaine.
According to court documents, following a fatal fentanyl overdose in September 2018, law enforcement began an investigation into a drug trafficking organization (DTO) in the Fitchburg area led by co-conspirators Pedro Baez and his son, Anthony Baez. Beginning in July 2019, electronic communications between members of the DTO and its suppliers revealed that Pedro and Anthony Baez worked with others to distribute a fentanyl and heroin mixture, cocaine and crack cocaine on a regular basis to individuals in the Fitchburg area, including Blair. Some of these individuals resold all or a portion of those drugs to their own customers. In July 2020, Blair was charged in a superseding indictment along with 17 others involved in the conspiracy, including Pedro and Anthony Baez.
Blair is the second defendant to be sentenced in this case. In December 2020, Anthony Baez was sentenced by Judge Hillman to 13 years in prison. Pedro Baez pleaded guilty on Feb. 3, 2021 and is scheduled to be sentenced on May 17, 2022. Eight other defendants in the case have pleaded guilty and are awaiting sentencing.
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 Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. The case was investigated by the Organized Crime Drug Enforcement Task Force (OCDETF). The Fitchburg Police Department, U.S. Postal Inspection Service and the Lunenburg Police Department also provided valuable assistance. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics and Money Laundering Unit prosecuted the case.
The operation was conducted is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rollins Announces Appointment of First Assistant U.S. AttorneyRead the Press Release
BOSTON – U.S. Attorney Rachael S. Rollins announced that Joshua S. Levy has been appointed to serve as First Assistant United States Attorney for the District of Massachusetts. Levy was formally sworn-in today by U.S. District Court Chief Judge F. Dennis Saylor IV.
“Mr. Levy has distinguished himself as someone with outstanding character, judgment and expertise,” said U.S. Attorney Rollins. “His decades as a litigator on a wide range of criminal and civil matters have allowed him to cultivate an excellent legal acumen that will be an invaluable asset to me and this Office. Mr. Levy is a tireless and dedicated attorney, and I am confident that his breadth of experience will serve this District well. I look forward to working closely with him in this new capacity.”
Mr. Levy has over 25 years of legal experience and, prior to his appointment as First Assistant U.S. Attorney, was a partner at the global law firm, Ropes & Gray LLP and co-chair of the firm’s global Litigation and Enforcement practice group. At Ropes & Gray, Mr. Levy specialized in white-collar and complex civil litigation – particularly in the health care, pharmaceutical, medical device and Health IT industries. In 2016, he was named as one of the Lawyers of the Year by Massachusetts Lawyers Weekly and, in 2021, he was named co-managing partner of Ropes & Gray’s Boston office.
Previously, Mr. Levy was an Assistant U.S. Attorney for the District of Massachusetts, from 1997 to 2004, serving in the Criminal Division’s Economic Crimes Unit. There, he prosecuted a wide range of white-collar crimes including health care fraud, securities and investor fraud, terrorism financing and environmental crimes.
Mr. Levy spent the first four years of his legal career at Ropes & Gray LLP. During that time, Mr. Levy was assigned a six-month rotation with the Middlesex County District Attorney’s Office in the Cambridge District Court. Prior to that, he was a law clerk for the Honorable Harold Herman Greene with the U.S. District Court for the District of Columbia.
Mr. Levy graduated magna cum laude from Georgetown University Law Center in 1992, where he was associate editor of the Georgetown Law Journal. He received his Bachelor of Arts in History from Brown University in 1987.
Pittsfield Man Sentenced to 11 Years in Prison for Drug and Firearm OffensesRead the Press Release
BOSTON – A Pittsfield man was sentenced yesterday in federal court in Springfield for firearm and drug trafficking offenses.
Elvins Sylvestre, 43, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 11 years in prison and five years of supervised release. On July 14, 2021, Sylvestre was convicted by a federal jury of possession with intent to distribute heroin, possession of cocaine, being a felon in possession of a firearm and possessing a firearm in furtherance of a drug trafficking felony.
In November 2019, Sylvestre was found in possession of cocaine and 11 grams of heroin, enough to make approximately 550 doses for distribution, along with a .380 caliber semi-automatic handgun loaded with an extended magazine and over 40 rounds of ammunition. Federal law prohibits Sylvestre from possessing a firearm or ammunition due to multiple prior felony convictions including possession of stolen property; robbery; assault and battery; and attempted murder.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Pittsfield Police Chief Michael Wynn made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Rollins’ Springfield Branch Office prosecuted the case.
Boxford Plumbing Company Owner Charged with Tax Evasion and Mail FraudRead the Press Release
BOSTON – A Boxford businessman was charged today and has agreed to plead guilty to defrauding the government of more than $1.45 million by engaging in a multi-year tax evasion scheme and to defrauding a customer by billing him for plumbing services he did not perform.
Jared Derrico, a/k/a “Jay,” 35, was charged and has agreed to plead guilty to one count of tax evasion and two counts of mail fraud. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, for tax years 2015 through 2019, Derrico operated a plumbing business known, variously, as Derrico Services and The Pipe Surgeon. During that time, Derrico allegedly cashed payments from his customers or deposited them into his personal accounts, but did not report this income on this tax returns. It is also alleged that Derrico fraudulently obtained payments for installing air conditioning units at a property in Boston, but in fact, did not install the units.
The charge of tax evasion provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of mail fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. According to the terms of the plea agreement, Derrico will pay restitution to the IRS and will be required to pay restitution to the victims of the charged scheme to defraud, if accepted by the Court. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. The United State Postal Inspection Service and the Ipswich Police Department also provided valuable support in the investigation. Assistant U.S. Attorney Kriss Basil of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Rachael S. Rollins Sworn in as United States Attorney for the District of MassachusettsRead the Press Release
BOSTON – Rachael Splaine Rollins was sworn in today as the United States Attorney for the District of Massachusetts. U.S. District Court Chief Judge F. Dennis Saylor IV administered the oath of office in federal court in Boston during a private ceremony. A formal investiture will be planned for a later date.
U.S. Attorney Rollins was nominated by President Joseph R. Biden on July 26, 2021 and was confirmed by the United States Senate on Dec. 8, 2021 in a tie-breaking vote cast in favor by Vice President Kamala Harris.
“Today’s swearing was a proud and humbling moment for both myself and my family. It was particularly special for me to have my parents with me, on my father’s 74th birthday. Their support has been unwavering, and I owe so much of this moment to them. As I reflect upon the path that led me here, I cannot help but think about the many colleagues and mentors who have supported me along the way. I want to acknowledge my friends, colleagues and law enforcement partners at the Suffolk County District Attorney’s Office whose steadfast commitment and dedication to keeping our neighborhoods healthy and safe has truly made a difference in the lives of so many. I am enormously proud of what we accomplished together,” said U.S. Attorney Rollins.
“As I begin this next chapter as the United States Attorney, I look forward to the challenges ahead. There is much to be done and I am blessed to be walking into an office with highly skilled attorneys and staff who have the same commitment to public safety and community wellbeing and health.”
U.S. Attorney Rollins, 50, of Boston, is now the top-ranking federal law enforcement official in the District of Massachusetts, which is comprised of 14 counties. With over 20 years of legal experience, U.S. Attorney Rollins will lead a team of more than 250 federal prosecutors and staff with three offices located in Boston, Worcester and Springfield.
U.S. Attorney Rollins has been the Suffolk County District Attorney (DA) for the last three years. In 2019, the people of Suffolk County elected her as the first woman to serve as their DA and the first woman of color to serve as DA in the Commonwealth of Massachusetts. Rollins is now the first Black woman to ever serve as U.S. Attorney in the District of Massachusetts, one of the two first U.S. Attorney’s Offices in the nation, established in 1789.
U.S. Attorney Rollins previously served as Chief Legal Counsel to the Massachusetts Port Authority. Prior to that she served as General Counsel for the Massachusetts Department of Transportation and the Massachusetts Bay Transportation Authority. From 2007 to 2011, she was an Assistant U.S. Attorney for the District of Massachusetts serving in both the Civil and Criminal Divisions.
Earlier in her career, U.S. Attorney Rollins was an attorney at Bingham McCutchen LLP and from 1999 to 2002 she was a field attorney for the National Labor Relations Board. U.S. Attorney Rollins began her legal career as a clerk for Associate Judge Frederick L. Brown of the Massachusetts Appeals Court.
U.S. Attorney Rollins earned a Juris Doctor from Northeastern University School of Law and a Masters in Law from Georgetown University Law Center. She received a Bachelor of Arts Degree in Education and African-American Studies from the University of Massachusetts Amherst.
Former Lincoln Police Department Dispatcher Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A former dispatcher for the Lincoln Police Department pleaded guilty yesterday in federal court in Boston to charges of child pornography.
Spencer Hughes, 33, of Randolph, pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography involving a prepubescent minor or a minor who had not attained 12 years of age. U.S. District Court Judge Denise J. Casper scheduled sentencing for May 5, 2022. Hughes was indicted in November 2020.
A search of Hughes’ residence in October 2020 resulted in the recovery of multiple electronic devices and external hard drives. An on-site preliminary forensic examination revealed multiple folders saved to the Hughes’ external hard drive under what appeared to be female names. One folder contained approximately 19 digital files depicting child pornography, including images and videos. This folder included a prepubescent minor female who appeared to be younger than the age of 12 engaged in sexual conduct, among other things. Further analysis of the Hughes’ electronic devices revealed more than 2,200 images and approximately 68 videos of child pornography. Prior to the search, Hughes was employed by the Town of Lincoln Police Department as a dispatcher.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, five years to life 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 other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney J. Mackenzie Duane of Mendell’s Major Crimes Unit are prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Everett Man Charged with Securities FraudRead the Press Release
BOSTON – The sole officer and director of a Massachusetts marketing firm was charged today in connection with misappropriating tens of thousands of dollars of investor funds to pay his personal expenses.
Christopher R. Esposito, 55, of Everett, was charged and has agreed to plead guilty to one count of securities fraud. A plea hearing has not yet been scheduled by the Court.
As alleged in the charging documents, Esposito served as officer and director of Code2Action, Inc., a purported mobile marketing firm. Between August 2019 and February 2020, Esposito allegedly sold company shares to existing shareholders at sub-penny prices based on material misstatements and omissions and then misappropriated much of the proceeds. Specifically, it is alleged that Esposito deliberately misled prospective investors about, among other things, Code2Action’s plan and ability to complete a reverse merger, which Esposito touted would enable the investors to sell their shares at a profit. It is further alleged that Esposito misappropriated over $57,000 to pay his personal expenses and failed to disclose to prospective investors, among other things, that the U.S. Securities and Exchange Commission had previously obtained a final judgment against him for committing securities fraud and barred him from certain securities-related activities.
The charge of securities fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney James R. Drabick of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Sentenced for Marijuana and Tax OffensesRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Springfield for marijuana distribution and tax offenses.
Zachary Sweener, 36, was sentenced by U.S. District Court Judge Mark G. Mastroianni to three months in prison and three years of supervised release. Sweener was also ordered to pay $156,457 in restitution. On July 6, 2021, Sweener pleaded guilty to one count of conspiracy to distribute marijuana, one count of possession with intent to distribute marijuana, one count of filing a false tax return and two counts of failing to file tax returns.
From 2014 to 2017, Sweener conspired with others to distribute marijuana. On January 10, 2017, a search of Sweener’s residence recovered 1,000 marijuana vape oil pens and over $90,000 in cash, two gold bars and other luxury items. Sweener also filed a false income tax return for 2013 by substantially under-reporting his income and failed to file tax returns for tax years 2014 and 2015, despite earning over $250,000 in each of those years. For tax years 2013 through 2015, Sweener failed to report over $625,000 in income and therefore failed to pay over $150,000 in federal income taxes.
Acting United States Attorney Nathaniel R. Mendell; Deputy Assistant Attorney General David A. Hubbert of the Department of Justice’s Tax Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office and Trial Attorney Christopher O’Donnell of the Justice Department’s Tax Division prosecuted the case.
Two Florida Men Indicted in Insider Trading SchemeRead the Press Release
BOSTON – Two Florida men were indicted today in connection with their alleged roles in a multi-million-dollar insider trading scheme.
Kris Bortnovsky, a/k/a “Kris Bort,” 40, of Surfside, Fla., and Ryan Shapiro, 44, of Bay Harbor Island, Fla., were charged with one count of conspiracy to commit securities fraud and one count of securities fraud. Both defendants were previously charged by criminal complaint on Dec. 6, 2021. A third defendant, David Schottenstein, 38, also of Surfside, Fla., was charged separately by an Information with conspiracy to commit securities fraud and has agreed to plead guilty.
As alleged in the charging documents, Bortnovsky served as a financial services professional for more than 20 years and Shapiro was an entrepreneur and founder of two privately held companies. From at least August 2017 to at least May 2019, it is alleged that Bortnovsky and Shapiro conspired to trade in the stocks of certain publicly traded companies, including At Home Group, Inc., Aphria, Inc., DSW, Inc. and Rite Aid Corp., among others, based on material nonpublic information (MNPI) regarding the earnings results and merger-and-acquisition activity of those companies. In many instances, Bortnovsky and Shapiro allegedly obtained the information from Schottenstein, who was a relative of one or more directors of these companies or of companies involved in proposed acquisitions of them. In another instance, Bortnovsky obtained the MNPI and shared it with Shapiro and Schottenstein.
The charge of securities fraud conspiracy provides for a sentence of up to 25 years in prison, five years supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of securities fraud provides for a sentence of up to 20 years in prison, three years supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Wayne A. Jacobs, Special Agent in Charge of the Federal Bureau of Investigation’s Criminal/Cyber Division, Washington Field Office, made the announcement today. The Securities & Exchange Commission and the Federal Bureau of Investigation, Miami Field Office, provided valuable assistance. Assistant U.S. Attorneys Stephen E. Frank and Seth B. Kosto – Chief and Deputy Chief, respectively, of Mendell’s Securities, Financial & Cyber Fraud Unit – are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Salem Man Pleads Guilty to Small Business Loan Fraud and Filing Fraudulent Tax ReturnsRead the Press Release
BOSTON – A Salem man pleaded guilty today in federal court in Boston in connection with two fraud schemes involving COVID-19 relief funds and tax returns for other individuals.
Roosevelt Fernandez, 42, pleaded guilty to two counts of wire fraud and one count of aggravated identity theft. U.S. District Court Judge Richard Stearns scheduled sentencing for May 11, 2022. Fernandez was charged in December 2020.
Fernandez applied for 10 Economic Injury Disaster Loans (EIDL) from the U.S. Small Business Administration (SBA), either in his own name or in the names of entities he controlled. EIDL funds were available to eligible individuals and businesses pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). In June 2020, Fernandez applied for an EIDL under the name Soluciones Multi Service, an entity he controlled, and submitted a false tax filing in support of the application. As a result, the SBA deposited $124,900 into a bank account controlled by Fernandez from which he withdrew more than $80,000 in cash over the next two weeks. In August 2020, Fernandez applied for an EIDL in the name of another business using fraudulent tax filing information. As a result, the SBA deposited $149,900 into the same bank account.
In addition, Fernandez used the identities of various individuals to submit fraudulent state and federal tax returns. A number of these returns included fraudulent W-2 Forms purportedly issued by employers for whom the named taxpayer did not in fact work. Various fraudulent refunds were deposited into an account in the name of Soluciones Multi Service. In addition, a May 2020 fraudulent Economic Income Payment – stimulus authorized by CARES Act – was deposited into this same account. Fernandez was depicted on ATM surveillance footage depositing another fraudulent tax refund check into this account. Overall, the investigation uncovered approximately 40 fraudulent tax returns associated with Fernandez, totaling over $620,000 in requested refunds.
The charges of wire fraud provide 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 aggravated identity theft provides for a mandatory sentence of two years in prison, up to 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 other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division for the Boston Field Office, made the announcement today. The U.S. Postal Inspection Service and the Massachusetts Department of Revenue provided valuable assistance with the investigation. Assistant U.S. Attorney Bill Abely, Chief of Mendell’s Criminal Division, is 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.
New York Woman Indicted for Trafficking FentanylRead the Press Release
BOSTON – A New York woman was indicted yesterday in federal court in Boston in connection with trafficking over 400 grams of fentanyl.
Shanese DeJesus, 25, was indicted on one count of distribution and possession with intent to distribute 400 grams or more fentanyl.
According to the charging document, on or about Oct. 20, 2021, DeJesus distributed fentanyl in Andover.
The charge of distribution and possession with intent to distribute 400 grams or more of fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; 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; and Colonel Nathan Noyes, Director of the New Hampshire State Police made the announcement. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Narcotics & Money Laundering 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.
New York Man Indicted on Fentanyl Trafficking ChargesRead the Press Release
BOSTON – A New York man was indicted yesterday in federal court in Boston on drug trafficking charges involving fentanyl.
Ruben Davila Cardenas, 43, of Sunnyside, N.Y., was indicted on one count of distribution and possession with intent to distribute 400 grams or more fentanyl.
According to the charging documents, on or about Oct. 19, 2021, Cardenas distributed more than 400 grams of fentanyl in Woburn and elsewhere.
The charge of distribution and possession with intent to distribute 400 grams or more of fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; 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; and Colonel Nathan Noyes, Director of the New Hampshire State Police, made the announcement. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Narcotics & Money Laundering 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.
Methuen Man Pleads Guilty to Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Methuen man pleaded guilty yesterday in federal court in Boston to selling a fentanyl and acetyl fentanyl mixture to an undercover agent on five occasions.
Andi Guerrero-Lara, a/k/a “Manny Sierra,” 24, pleaded guilty to a seven count superseding indictment charging him with one count of conspiracy to distribute 400 grams or more of fentanyl and 100 grams or more of acetyl fentanyl; three counts of distribution and possession with intent to distribute 40 grams or more of fentanyl and 10 grams or more of acetyl fentanyl; two counts of distribution and possession with intent to distribute 10 grams or more of acetyl fentanyl and fentanyl; and one count of possession with intent to distribute 100 grams or more of acetyl fentanyl and 40 grams or more of fentanyl. U.S. District Court Judge Richard G. Stearns scheduled sentencing for May 5, 2022.
In December 2019, Guerrero-Lara was indicted along with co-defendant Angel Rivera-Valle. He was subsequently charged in a superseding indictment on Sept. 2, 2020.
The defendants were members of a drug trafficking organization operating in the Merrimack Valley area of Massachusetts that regularly sold large quantities of fentanyl. Between September and October 2019, an undercover agent purchased a fentanyl and acetyl fentanyl mixture from the defendants on five separate dates. According to court documents, after Rivera-Valle was arrested, Guerrero-Lara led agents on a high-speed car chase that spanned numerous miles and three cities during which Guerrero-Lara endangered multiple lives, as he narrowly missed crashing into a construction zone and police vehicles. Ultimately, Guerrero-Lara stopped his vehicle at an apartment complex in Lawrence and was arrested.
On Sept. 8, 2020, Rivera-Valle was sentenced by Judge Sterns to 64 months in prison and four years of supervised release.
This case is part of a coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
The charges of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of acetyl fentanyl, and distribution and possession with intent to distribute 100 grams of acetyl fentanyl, each provide for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of distribution and possession with intent to distribute 40 grams or more of fentanyl and 10 grams or more of acetyl fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Assistance was provided by the Massachusetts State Police and the Andover Police Department. Assistant U.S. Attorney Alathea E. Porter of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
Holyoke Man Pleads Guilty to Distributing Heroin and Crack CocaineRead the Press Release
BOSTON – A Holyoke man pleaded guilty on Tuesday, Jan. 4, 2022 in federal court in Springfield to distributing heroin and cocaine base (crack cocaine).
Ronny Authier, 23, pleaded guilty to two counts of distribution and possession with intent to distribute heroin and one count of distribution and possession with intent to distribute cocaine base. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for April 21, 2022. Authier was indicted in November 2019.
On two occasions in September 2019, Authier distributed a total of approximately 12 grams of heroin to an undercover agent. On a third occasion in September 2019, Authier also sold the agent approximately 24 grams of crack cocaine.
The charges of distribution and possession with intent to distribute heroin 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. The charge of distribution and possession with intent to distribute cocaine base 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 based upon the U.S. Sentencing Guidelines and other statutory factors
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Office; Springfield Police Commissioner Cheryl Clapprood; and Holyoke Police Chief David Pratt made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Mendell’s Springfield Branch Office is prosecuting the case.
Former Member of New Bedford Latin Kings Chapter Sentenced for Drug Trafficking and ManufacturingRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced yesterday on drug charges.
Tanairy Ruiz, a/k/a “Queen Tanairy,” 34, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to time served (approx. 30 days) and three years of supervised release. On Sept. 8, 2021, Ruiz pleaded guilty to conspiracy to manufacture, distribute and possess with intent to distribute cocaine and cocaine base.
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.
Ruiz conspired with other Latin Kings members to manufacture and distribute cocaine base throughout the City of New Bedford. Ruiz resided in one of the many “trap houses” or multi-unit apartment buildings in New Bedford that were controlled by the Latin Kings. Ruiz’s apartment was used as a location where cocaine was “cooked” or manufactured into cocaine base.
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. Ruiz is the 41st defendant to be sentenced in the case.
Acting United States Attorney Nathaniel R. Mendell; 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. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Boston Woman Sentenced on Federal Firearm OffenseRead the Press Release
BOSTON – A Boston woman was sentenced today in federal court in Boston for illegally possessing a firearm and ammunition.
Bianca Blanchard, 34, was sentenced by U.S. Senior District Court Judge Rya Zobel to 78 months in prison and three years of supervised release. In September 2021, Blanchard pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
Blanchard was arrested in May 2019 after law enforcement determined that she had fired a bullet in the direction of a moving vehicle on a residential street in Dorchester, which led to a retaliatory shooting in which six bullets were fired into the apartment of a neighbor uninvolved in the dispute. A search of Blanchard’s residence resulted in the recovery of a Ruger .380 caliber semi-automatic pistol and an extended magazine containing 12 rounds of .380 caliber ammunition. Due to prior convictions of possession of ammunition without a firearms identification card and possession with intent to distribute a Class A substance, Blanchard is prohibited from possessing a firearm and ammunition.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of Mendell’s Major Crimes Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Guatemalan National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Guatemalan national pleaded guilty today in federal court in Boston to illegally reentering the United States after deportation.
Darwin Geovani Herrera Orellana, 31, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for May 5, 2022. Herrera Orellana was indicted in September 2021.
Herrera Orellana was initially encountered in Arizona in 2009, determined to be illegally present in the United States and subsequently deported. Sometime thereafter his removal, Herrera Orellana illegally reentered the United States and was arrested in Texas in 2012. Herrera Orellana was again placed into removal proceedings and deported.
In December 2020, Herrera Orellana was arrested in Waltham and charged with, among other things, assault and battery with a dangerous weapon. In June 2021, he was convicted of assault and battery with a dangerous weapon and sentenced to 14 months in prison. In July 2021, while serving this sentence in the Middlesex County House of Correction, agents determined that Herrera Orellana was illegally present in the United States after the fingerprints from his Waltham arrest and noncitizen records were determined to be a positive match. Upon completion of his prison sentence, Herrera Orellana was subsequently transferred into federal custody where he remains detained.
The charge of unlawful reentry of a deported alien provides for a sentence of up to two years in prison, one year of supervised released and a fine of up to $250,000. Herrera Orellana will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations in Boston made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Mendell’s Major Crimes Unit is prosecuting the case.
United States Attorney's Office Announces over $650,000 Total Recovery for Victims in Two CasesRead the Press Release
BOSTON – The United States Attorney’s Office announced today approval by the Department of Justice’s Money Laundering and Asset Recovery Section to direct $454,945 recovered from forfeited assets to the victims of Keenam “Kason” Park. Park was convicted in August 2020 of one count of wire fraud in connection with a scheme to defraud private high schools and international students of millions of dollars in tuition and other fees.
The United States Attorney’s Office also announced approval to direct $229,882 recovered from forfeited assets to the victims of Raymond K. Montoya. Montoya was a hedge fund manager convicted in October 2018 of three counts of wire fraud, five counts of mail fraud and two counts of conducting an unlawful monetary transaction in connection with running a multi-million-dollar Ponzi scheme.
Keenam Park
In December 2020, Park was sentenced by U.S. Senior District Court Judge Mark L. Wolf to five years in prison and three years of supervised release and was ordered to pay restitution of $7,332,407. The court also ordered forfeiture in the amount of $7,332,407.
Park – through his company, EduBoston – collected tuition and other payments from students’ families for the 2019-2020 academic year but failed to pay the full tuition owed to partnering schools. Instead, Park used the funds on unrelated expenses, including personal expenses. Park also caused EduBoston to collect advance tuition and other payments for the 2020-2021 academic year, which Park failed to return to the students’ families after EduBoston went out of business in or around September 2019.
The government pursued forfeiture of a number of Park’s assets, including seizing bank accounts, a Lexus and other personal property, which resulted in this recovery. The funds will be distributed to victims pursuant to the Amended Judgment entered in this case. The U.S. Attorney’s Office will continue to pursue assets to compensate Park’s numerous victims.
Raymond Montoya
In March 2019, Montoya was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to 175 months in prison and three years of supervised release. Montoya was ordered to pay restitution in the amount of $38,386,802 and forfeiture.
Between 2009 and June 2017, Montoya ran a pooled investment hedge fund in Boston called RMA Strategic Opportunity Fund, LLC. Montoya falsely told his investors—including his family, friends and acquaintances who resided in Massachusetts, Ohio and California—that the fund was earning substantial returns, when in fact, by 2014, the RMA Fund was sustaining substantial losses. The investors transferred millions of dollars of their personal savings and 401(k) retirement plans to Montoya and the RMA Fund. Montoya told the investors that he would invest their money in stocks and bonds, but he actually invested only a portion of their money, while diverting the rest—totaling millions of dollars—to business and personal bank accounts. Montoya used the diverted money for personal expenses such as luxury vehicles.
The government pursued forfeiture of a number of Montoya’s assets, including seized currency and bank accounts, jewelry, a Ferrari, Lamborghini, Rolls Royce and other vehicles. Of the funds obtained from the forfeited assets, $229,882 was approved by the Department of Justice’s Money Laundering and Asset Recovery Section to be applied to restitution. These funds will be distributed to victims pursuant to the Amended Judgment entered in this case. Previously, the government recovered over $9 million which has already been turned over for victim restitution. The U.S. Attorney’s Office will continue to pursue assets to compensate Montoya’s numerous victims.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Carol E. Head, Chief of Mendell’s Asset Recovery Unit, handled the forfeiture aspects of these cases. Assistant U.S. Attorney Leslie A. Wright of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the Park case. Assistant U.S. Attorney Neil J. Gallagher Jr. of Mendell’s Criminal Division prosecuted the Montoya case.
Statement from Acting U.S. Attorney Nathaniel R. Mendell on Death of Gary Lee SampsonRead the Press Release
“We are aware of the news that Gary Lee Sampson has died. Our thoughts are with the Rizzo, McCloskey and Whitney families today. Their resilience is extraordinary.”
U.S. Attorney’s Office Settles Disability Discrimination Complaint with Skilled Nursing FacilityRead the Press Release
BOSTON – The U.S. Attorney’s Office and the U.S. Department of Health and Human Services’ Office for Civil Rights reached an agreement today with The Oaks, a skilled nursing facility in New Bedford, to resolve an allegation that the facility denied admission to individuals being treated with medications for Opioid Use Disorder (OUD) in violation of the Americans with Disabilities Act (ADA).
“Opioid Use Disorder is a recognized disability under the ADA, and providers who fail to treat it as such operate outside the law,” said Acting United States Attorney Nathaniel R. Mendell. “This settlement is the latest demonstration of our unending commitment to vindicate the rights of disabled people – and it will not be the last.”
“Health care providers should not base decisions about patients with Opioid Use Disorder on stereotypes or misconceptions about their disability. People with OUD do not lose their civil rights because they are prescribed certain medications and OCR is committed to ensuring that people with OUD do not face discrimination in health care settings or other areas of life,” said Lisa J. Pino, Director of the U.S. Department of Health and Human Services, Office for Civil Rights.
The complaint alleges that in February 2019, a hospital requested an available bed for a patient in need of skilled nursing services. The Oaks responded saying it could not accept the individual because he was prescribed Suboxone (buprenorphine and naloxone), a medication to treat OUD. The complaint prompted investigation – pursuant to the ADA, Section 504 of the Rehabilitation Act of 1973, and the Patient Protection and Affordable Care Act – into The Oaks’ practice of denying admission to individuals who take medication prescribed to treat OUD. Individuals receiving treatment for OUD are generally considered disabled under federal civil rights laws, which prohibits private healthcare providers from discriminating on the basis of disability.
Under the terms of the agreement, The Oaks will, among other things, adopt a non-discrimination policy, revise its admissions policy and provide training to its admissions staff. The Oaks will also pay the United States a $5,000 civil penalty.
Since May 2018, the U.S. Attorney’s Office has settled with nine healthcare providers to resolve ADA violations related to OUD treatment.
Acting U.S. Attorney Mendell and HHS OCR Director Pino made the announcement today. Assistant U.S. Attorney Gregory Dorchak of Mendell’s Civil Rights Unit handled the matter.
Dominican National Sentenced for Misusing a Social Security Number and Stealing Government BenefitsRead the Press Release
BOSTON – A Dominican national previously residing in Springfield was sentenced today in connection with using another individual’s identity to fraudulently obtain government benefits.
Andrea Perez Placencia, 59, was sentenced by U.S. District Court Judge Mark G. Mastroianni to one year and one day in prison and three years of supervised release. Perez Placencia also was ordered to pay restitution in the amount of $32,029. On Sept. 20, 2021, Perez Placencia pleaded guilty to one count of false representation of a Social Security number and two counts of theft of government money.
Perez Placencia used the identity of a Puerto Rican citizen to apply for and obtain Housing Choice Voucher Program, commonly known as Section 8, housing assistance benefits as well as to receive disability benefits from the Social Security Administration. As a result, between August 2017 and August 2018, Perez Placencia fraudulently received approximately $12,570 in Social Security benefits and, from April 2019 through February 2021, she fraudulently received $17,380 in Section 8 housing assistance benefits.
Acting United States Attorney Nathaniel R. Mendell; John Cremonini, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; and Christina Scaringi, Special Agent in Charge of the Department of Housing and Urban Development, Office of Inspector General, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit is prosecuting the case.
Connecticut Contractor Pleads Guilty to Paying Bribes for the Procurement of Consultation ContractsRead the Press Release
BOSTON – The principal of a Connecticut environmental consulting firm pleaded guilty yesterday in federal court in Springfield in connection with paying bribes to procure consulting contracts at educational institutions in Massachusetts and New York.
Stephen Dinapoli, 42, of Wilton, Conn., pleaded guilty to one count of conspiracy and two counts of bribery concerning programs receiving federal funds. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for April 20, 2022. Dinapoli was charged in August 2020.
Dinapoli is the principal of Big East Environmental, an environmental project management and consulting firm based in Connecticut. From 2015 to 2019, Dinapoli paid cash bribes to co-conspirator Floyd Young, who held positions involving facility maintenance at three collegiate institutions including American International College (AIC) in Springfield, Mass. Specifically, Dinapoli paid Young in cash during face-to-face meetings in order to obtain contracts for environmental consulting work at AIC, Cornell Tech and Cooper Union.
Young was charged in a separate case and, in August 2020, pleaded guilty to steering contracts for construction, repair, maintenance and other work for the collegiate institutions to favored contractors, including Dinapoli, in exchange for bribe payments typically in the amount of 15% of the contract.
The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of bribery concerning programs receiving federal funds each provide 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 other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office is prosecuting the case.
Charlestown Man Pleads Guilty to Identity Fraud ChargesRead the Press Release
BOSTON – A Charlestown man who has been living under a false identity pleaded guilty today in federal court in Boston to charges arising from his use of the name and Social Security number of a U.S. citizen.
An individual referred to as “John Doe” pleaded guilty to one count of false statements on a United States passport application, one count of false representation of a social security number, three counts of wire fraud and one count of aggravated identity theft. U.S. District Judge Denise J. Casper scheduled sentencing for May 4, 2022. Doe was indicted in March 2020 and subsequently charged in a superseding indictment on April 29, 2021.
On or about March 31, 2020, Doe used the name and personally identifiable information of a Puerto Rican resident to apply for Massachusetts Department of Unemployment Assistance (Mass DUA) and Federal Pandemic Unemployment Compensation. On April 1, 2020, Mass DUA approved the claim and began issuing benefits to Doe via a prepaid debit card, which he used for cash withdrawals at ATM machines and for the purchase of goods and services. As a result, from April through September 2020, Doe fraudulently received over $15,000 in unemployment benefits under the stolen identity.
Previously, in 2017, Doe used the victim’s Social Security number to apply for a duplicate driver’s license with the Massachusetts Registry of Motor Vehicles and, in 2010, used the victim’s name and personally identifiable information to apply for a United States passport.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of passport fraud provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for two years in prison to be served consecutive to the term for the underlying felony, which in this case is the false representation of a Social Security number. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation is being conducted by the U.S. Department of State's Diplomatic Security Service together with Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
Acting United States Attorney Nathaniel R. Mendell; Jonathan Davidson, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, Labor Racketeering and Fraud made the announcement today. Assistant U.S. Attorneys Alathea Porter of Mendell’s Narcotics and Money Laundering Unit, Benjamin A. Saltzman of Mendell’s Major Crimes Unit and James Herbert of Mendell’s Health Care 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.
Barnstable Man Pleads Guilty to Firearms OffensesRead the Press Release
BOSTON – A Barnstable man pleaded guilty yesterday in federal court in Boston in connection with selling four “ghost guns” to an undercover agent.
Jacob Linhares, 34, pleaded guilty to one count of dealing in firearms without a license and being a felon in possession of a firearm. U.S. Senior District Court Judge Douglas Woodlock scheduled sentencing for April 12, 2022. Linhares was arrested and charged on June 15, 2021.
Between May 25, 2020 and June 15, 2020, Linhares, sold four Privately Made Firearms (PMFs) he had personally fabricated to an undercover agent. PMFs are not made by firearm manufacturers. Rather, they are made from firearm parts purchased from firearm manufacturers and assembled by the buyer using various drilling tools and machinery to construct a functional firearm. PMFs do not have serial numbers and are commonly known as “ghost guns” because they are not serialized, and are thus, untraceable to a purchaser or owner. On the fourth sale, Linhares agreed to take a commercially manufactured firearm as part of the payment. Due to prior felony convictions, Linhares is prohibited from possessing firearms.
The charge of dealing firearms without a federal license provides for a sentence of up to five years in prison and a fine of up to $250,000. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison 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 other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Barnstable County District Attorney Michael D. O’Keefe; Barnstable Police Chief Matthew Sonnabend; and Barnstable County Sheriff James M. Cummings made the announcement today. Assistant U.S. Attorney Philip A. Mallard of Mendell’s Organized Crime and Gang Unit is prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney's Office Files Amended Lawsuit Against Chicopee Housing Authority and its Executive DirectorRead the Press Release
BOSTON – The U.S. Attorney’s Office for the District of Massachusetts and the U.S. Department of Justice’s Civil Rights Division today filed an amended complaint that alleges that the Chicopee Housing Authority and its Executive Director, Monica Blazic, violated the Fair Housing Act by engaging in a pattern or practice of discrimination based on race, national origin, and disability, and also violated the Americans with Disabilities Act and Section 504 of the Rehabilitation Act of 1973.
The United States initially filed suit against the defendants on April 19, 2021, alleging that the defendants failed to make reasonable accommodations and discriminated against a tenant based upon her disability. The amended complaint includes additional claims against the defendants, alleging that they engaged in a pattern or practice of discrimination based upon race or national origin over a period of years. Specifically, the amended complaint asserts that the defendants discriminated against Black and Hispanic tenants and potential tenants. As alleged in the amended complaint, Blazic preferred White tenants and made discriminatory statements about and to Black and Hispanic tenants, including the use of racial slurs. In addition, Blazic intimidated or coerced tenants and potential tenants based upon their race or national origin.
The matter was originally investigated by the U.S. Department of Housing and Urban Development, which, in March 2021, issued a charge against the Chicopee Housing Authority and Blazic after finding that the defendants violated the Fair Housing Act by failing to allow a tenant to transfer to a first floor or elevator accessible unit to accommodate her disability. The tenant has end stage renal disease and without the transfer to another unit, was unable to receive daily in-home dialysis. As alleged in the amended complaint, the tenant applied for a transfer based on her disability in 2017, and since that time the Chicopee Housing Authority offered 10 vacant apartments – any one of which could have accommodated the tenant – to other individuals.
“The racist conduct alleged in the amended complaint is shocking – here we have a public housing official openly using racist slurs to impugn tenants she is paid to serve,” said Acting U.S. Attorney Nathaniel R. Mendell. “Public officials are supposed to do competent work with common decency. When they stray this far from what is acceptable, they run afoul of the law and can expect to hear from this office.”
“It is simply inexcusable for the head of a public housing authority to repeatedly use racial slurs and make other bigoted statements about Black and Hispanic residents, or for the housing authority to repeatedly violate the rights of residents with disabilities,” said Kristen Clarke, Assistant Attorney General for Civil Rights at the U.S. Department of Justice. “The Department of Justice will vigorously pursue housing providers who use brazenly unlawful and discriminatory conduct to threaten and intimidate tenants. All people deserve access to housing free from discrimination.”
“Racial discrimination and discrimination against persons living with disabilities have absolutely no place in our country’s housing market, and those who discriminate must be held accountable,” said Demetria McCain, HUD's Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity. “HUD applauds the Justice Department for taking today’s action and will continue supporting its efforts to hold housing providers accountable when they fail to meet their obligations under the nation’s housing laws.”
The lawsuit seeks an order requiring the defendants to cease discrimination against any tenant based on race, national origin, or disability, pay damages to aggrieved parties and to accommodate residents’ disabilities.
Acting U.S. Attorney Mendell, Assistant Attorney General Clarke and HUD FHEO Principal Deputy Assistant Secretary McCain made the announcement today. Assistant U.S. Attorneys Gregory Dorchak and Michelle Leung of Mendell’s Civil Rights Unit are handling the matter.
Individuals who have information about this case can contact the U.S. Attorney’s Office by calling 1-617-275-756 or by emailing [email protected].
The Civil Rights Unit of the U.S. Attorney’s Office has been enforcing federal civil rights matters since 2015. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Harvard University Professor Convicted of Making False Statements and Tax OffensesRead the Press Release
BOSTON – The former Chair of Harvard University’s Chemistry and Chemical Biology Department was convicted by a federal jury today in connection with lying to federal authorities about his affiliation with People’s Republic of China’s Thousand Talents Program and the Wuhan University of Technology (WUT) in Wuhan, China, as well as failing to report income he received from WUT.
Dr. Charles Lieber, 62, was convicted following a six-day jury trial of two counts of making false statements to federal authorities, two counts of making and subscribing a false income tax return and two counts of failing to file reports of foreign bank and financial accounts (FBAR) with the Internal Revenue Service (IRS). U.S. Senior District Court Judge Rya W. Zobel will sentence Lieber at a later date that has not yet been scheduled. Lieber was indicted in June 2020 and was subsequently charged in a superseding indictment in July 2020.
“There is now no question that Charles Lieber lied to federal investigators and to Harvard in an attempt to hide his participation in the Chinese Thousand Talents Program,” said Acting United States Attorney Nathaniel R. Mendell. “He lied to the IRS about the money he was paid, and he concealed his Chinese bank account from the United States. The jury followed the evidence and the law to a just verdict.”
“Today’s verdict reinforces our commitment to protect our country’s position as a global leader in research and innovation and to hold those accountable who exploit and undermine that position through dishonesty. By Charles Lieber’s own admission – after we arrested him – the evidence against him was formidable. He repeatedly lied to his employer, the federal government, and taxpayers to fraudulently maintain access to federal research funds,” Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Mr. Lieber exploited the openness and transparency of our academic system. The FBI will not hesitate to work with our law enforcement partners to focus on those who put their financial and professional interests ahead of our country’s economic prosperity.”
“The Department of Defense (DoD) Office of Inspector General’s Defense Criminal Investigative Service (DCIS) investigates foreign conflicts of interest in DoD grant programs," said Patrick J. Hegarty Patrick J. Hegarty, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office. "Mr. Lieber lied to DCIS Special Agents about his ties to the Chinese government while conducting research for the DoD, and he eroded the trust the DoD has in its researchers to prioritize the United States and its service members over foreign governments, and over personal financial gain."
“NCIS continues to aggressively protect the Department of the Navy’s technologies and strategic advantages provided as a result of years of investment in cutting edge research and technology development” said Michael Wiest, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS), Northeast Field Office. “By failing to disclose his connections and foreign support, Mr. Lieber broke a trust and undermined the integrity of research that the federal government paid for. The guilty verdicts in this case are the results of exceptional teamwork with the U.S. Attorney’s Office and our federal partners at the FBI, DCIS, IRS and NIH.”
“We expect professors like Dr. Lieber who are privileged to be part of taxpayer-funded research to be honest in their actions,” said Philip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “Today’s conviction demonstrates OIG’s commitment to ensuring that taxpayer dollars are not wasted, and that those handling these funds are truthful in their dealings with federal agencies.”
“Today’s Guilty verdict is a shining example of IRS-CI’s commitment to investigating international tax crimes” said Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division for the Boston Field Office. “Despite Mr. Lieber’s lengthy effort to conceal assets and underreport his income, the verdict is proof that Mr. Lieber’s actions were intentional, deliberate, and criminal. IRS-CI will continue to work with the United States Attorney’s Office and our Federal law enforcement partners to investigate complex financial fraud that extends beyond the borders of the United States.”
Lieber served as the Principal Investigator of the Lieber Research Group at Harvard University, which received more than $15 million in federal research grants between 2008 and 2019. Unbeknownst to his employer, Harvard University, Lieber became a “Strategic Scientist” at WUT and, later, a contractual participant in China’s Thousand Talents Plan from at least 2012 through 2015. China’s Thousand Talents Plan is one of the most prominent Chinese talent recruitment plans designed to attract, recruit and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security.
Under the terms of Lieber’s three-year Thousand Talents contract, WUT paid Lieber a salary of up to $50,000 per month, living expenses of up to $150,000 and awarded him more than $1.5 million to establish a research lab at WUT. In 2018 and 2019, Lieber lied to federal authorities about his involvement in the Thousand Talents Plan and his affiliation with WUT.
In tax years 2013 and 2014, Lieber earned income from WUT in the form of salary and other payments made to him pursuant to the Strategic Scientist and Thousand Talents Contracts, which he did not disclose to the IRS on his federal income tax returns. Lieber, together with WUT officials, opened a bank account at a Chinese bank during a trip to Wuhan in 2012. Thereafter, between at least 2013 and 2015, WUT periodically deposited portions of Lieber’s salary into that account. U.S. taxpayers are required to report the existence of any foreign bank account that holds more than $10,000 at any time during a given year by the filing an FBAR with the IRS. Lieber failed to file FBARs for the years 2014 and 2015.
The charge of making false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of making and subscribing false income tax returns provides for a sentence of up to three years in prison, one year of supervised release and a $100,000 fine. The charge of failing to file an FBAR provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Mendell; Matthew Olsen, Assistant Attorney General for National Security; FBI SAC Bonavolonta; DCIS SAC Hegarty; NCIS SAC Wiest; HHS OIG SAC Coyne; and IRS CI SAC Simpson made this announcement. Assistant U.S. Attorney Jason Casey of Mendell’s National Security Unit and Assistant U.S. Attorney James R. Drabick of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Harvard University Professor Convicted of Making False Statements and Tax OffensesRead the Press Release
The former Chair of Harvard University’s Chemistry and Chemical Biology Department was convicted by a federal jury today in connection with lying to federal authorities about his affiliation with the People’s Republic of China’s Thousand Talents Program and the Wuhan University of Technology (WUT) in Wuhan, China, as well as failing to report income he received from WUT.
Dr. Charles Lieber, 62, was convicted following a six-day jury trial of two counts of making false statements to federal authorities, two counts of making and subscribing a false income tax return and two counts of failing to file reports of foreign bank and financial accounts (FBAR) with the Internal Revenue Service (IRS). U.S. Senior District Court Judge Rya W. Zobel will sentence Lieber at a later date that has not yet been scheduled. Lieber was indicted in June 2020 and was subsequently charged in a superseding indictment in July 2020.
Lieber served as the Principal Investigator of the Lieber Research Group at Harvard University, which received more than $15 million in federal research grants between 2008 and 2019. Unbeknownst to his employer, Harvard University, Lieber became a “Strategic Scientist” at WUT and, later, a contractual participant in China’s Thousand Talents Plan from at least 2012 through 2015. China’s Thousand Talents Plan is one of the most prominent talent recruitment plans designed to attract, recruit and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security.
Under the terms of Lieber’s three-year Thousand Talents contract, WUT paid Lieber a salary of up to $50,000 per month, living expenses of up to $150,000 and awarded him more than $1.5 million to establish a research lab at WUT. In 2018 and 2019, Lieber lied to federal authorities about his involvement in the Thousand Talents Plan and his affiliation with WUT.
In tax years 2013 and 2014, Lieber earned income from WUT in the form of salary and other payments made to him pursuant to the Strategic Scientist and Thousand Talents Contracts, which he did not disclose to the IRS on his federal income tax returns. Lieber, together with WUT officials, opened a bank account at a Chinese bank during a trip to Wuhan in 2012. Thereafter, between at least 2013 and 2015, WUT periodically deposited portions of Lieber’s salary into that account. U.S. taxpayers are required to report the existence of any foreign bank account that holds more than $10,000 at any time during a given year by the filing an FBAR with the IRS. Lieber failed to file FBARs for the years 2014 and 2015.
The charge of making false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of making and subscribing false income tax returns provides for a sentence of up to three years in prison, one year of supervised release and a $100,000 fine. The charge of failing to file an FBAR provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell; National Security AAG Olsen; FBI SAC Bonavolonta; DCIS SAC Hegarty; NCIS SAC Wiest; HHS OIG SAC Coyne; and IRS CI SAC Simpson made this announcement. Assistant U.S. Attorney Jason Casey of Mendell’s National Security Unit and Assistant U.S. Attorney James R. Drabick of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Former Boston Gang Member Sentenced for Crack Cocaine DistributionRead the Press Release
BOSTON – A former member of the St. James/Marcella gang was sentenced today in federal court in Boston for distributing crack cocaine on multiple occasions to a cooperating witness.
Anthony Jackson, a/k/a “Hollywood,” 30, of Boston, was sentenced by United States District Judge Mark L. Wolf to 21 months in prison and three years of supervised release. In August 2021, Jackson pleaded guilty to one count of distribution and possession with intent to distribute cocaine base and one count of possession with intent to distribute cocaine base. Jackson has been in custody since his arrest in October 2020.
Between Sept. 1, 2020 and Oct. 3, 2020, Jackson distributed crack cocaine or cocaine to a cooperating witness on five occasions in Cambridge and Boston. Jackson was also found in possession of crack cocaine and $2,420 in cash at the time of his arrest on Oct. 29, 2020. In total, across the transactions, Jackson distributed approximately 22 grams of crack cocaine and nine grams of powder cocaine. Jackson has prior state convictions for unlawfully carrying a dangerous weapon, carrying a loaded firearm and possession of illegal substances.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Mendell’s Major Crimes Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Brazilian National Pleads Guilty to Role in Nationwide Rideshare and Delivery Account Fraud SchemeRead the Press Release
BOSTON – A Brazilian national pleaded guilty on Friday, Dec. 17, 2021 in connection with a nationwide conspiracy to open fraudulent driver accounts with rideshare and delivery service companies.
Flavio Candido da Silva, 36, of Malden, pleaded guilty in federal court in Boston to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for April 22, 2022.
In May 2021, da Silva was charged along with 18 co-defendants with conspiracy to commit wire fraud by using stolen identities and falsified documents to create fraudulent driver accounts for rent or sale to individuals who might not otherwise qualify to drive for the rideshare or delivery services.
According to the charging documents, the defendants allegedly used victims’ identifying information to apply for driver accounts with the rideshare and delivery companies – enabling the defendants to pass those companies’ required background checks and create driver accounts in victims’ names. At times, it is alleged that the defendants edited victims’ driver’s license images to display photos of the drivers renting or buying the fraudulent accounts in order to circumvent facial recognition technology that the rideshare and delivery companies used as a security measure. The defendants allegedly obtained victims’ names, dates of birth, driver’s license information and or Social Security numbers from co-conspirators and other sources, including sites on the Dark Net. The defendants and co-conspirators also obtained driver’s license images directly from victims, by photographing victims’ licenses while completing an alcohol delivery through one of the services or while exchanging information with victims following vehicle accidents, some of which defendants or co-conspirators intentionally caused in order to obtain victims’ license information. As a result of the scheme, Internal Revenue Service Forms 1099 were generated in victims’ names for income that conspirators earned from the rideshare and delivery companies.
It is also alleged that the defendants used fraudulent driver accounts to exploit referral bonus programs offered by the rideshare and delivery companies and used “bots” and GPS “spoofing” technology to increase the income earned from the companies.
In connection with the scheme, da Silva admitted that he rented and sold driver accounts opened in the names of individual victims. Between June 2019 and December 2020, da Silva received approximately $200,000 in payments from individual renters and purchasers of fraudulent driver accounts. Da Silva also referred drivers to other co-conspirators and coordinated with co-conspirators about preventing accounts from being flagged for fraud by the rideshare and delivery companies.
Sixteen of the defendants have been arrested in connection with the conspiracy and three remain at large. If you believe that you may be a victim of the allegations in this case, please visit: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/us-v-wemerson-dutra-aguiar-and-us-v-priscila-barbosa-et-al.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charge of aggravated identity theft provides for a sentence of at least two years in prison to be served consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Massachusetts State Police; the Concord, Lexington, Plymouth, Wilmington, Marlborough and Village of Rye Brook (N.Y.) Police Departments; U.S. Customs and Border Protection; U.S. Postal Inspection Service and the National Crime Insurance Bureau. Assistant U.S. Attorneys Kristen A. Kearney and David M. Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Attleboro Gun Trafficker Convicted by Federal JuryRead the Press Release
BOSTON – An Attleboro man was convicted on Friday, Dec. 17, 2021, by a federal jury in Boston of offenses related to firearms trafficking.
Richard Philippe, 42, was convicted following a four-day jury trial of transporting firearms into Massachusetts from Georgia without a license and being a felon in possession of ammunition. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for April 4, 2022. Philippe was indicted in September 2019.
Between April and June 2019, Philippe purchased dozens of handguns from an unlicensed straw purchaser in Georgia. Philippe returned with the guns to a warehouse in Taunton where he sold them for cash. Philippe, who had a prior felony firearms conviction in Rhode Island, had neither the lawful ability to possess firearms or ammunition, nor a federal license to deal in firearms.
The investigation arose following a July 2019 undercover purchase of firearms from a long-time Brockton drug dealer, who had purchased more than a dozen firearms from Philippe and had been selling them into criminal commerce on the South Shore. The undercover operation triggered a search of Philippe’s warehouse in Taunton, which revealed Philippe’s firearm trafficking. The weapons were traced back to multiple purchases by Philippe’s associate from a pawn shop in Georgia, which specialized in selling low-cost handguns.
The charge of possessing ammunition after being convicted of a felony provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of transportation and receipt of firearms acquired outside of state of residency provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell 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 by the Massachusetts State Police, Brockton Police Department, Taunton Police, the Plymouth County Sheriff’s Department, the North Carolina State Highway Patrol, and the Rhode Island State Police. Assistant U.S. Attorneys Fred M. Wyshak, III and John T. McNeil of Mendell’s Organized Crime & Gang Unit, are prosecuting the case.
Russian National Extradited for Role in Hacking and Illegal Trading SchemeRead the Press Release
BOSTON—A Russian national has been extradited to the United States from Switzerland to face charges relating to his alleged involvement in a global scheme to trade on non-public information stolen from U.S. computer networks that netted tens of millions of dollars in illegal profits. Four other Russian nationals were also charged as part of the scheme.
Vladislav Klyushin, also known as “Vladislav Kliushin,” 41, of Moscow, Russia, was arrested in Sion, Switzerland on March 21, 2021 and was extradited to the United States on Dec. 18. Charges were unsealed this morning in U.S. District Court in Massachusetts. Klyushin is charged with conspiring to obtain unauthorized access to computers, and to commit wire fraud and securities fraud, and with obtaining unauthorized access to computers, wire fraud and securities fraud. He will appear later this morning in federal court in Boston.
Ivan Ermakov, also known as “Ivan Yermakov,” 35, and Nikolai Rumiantcev, also known as “Nikolay Rumyantsev,” 33, both of Moscow, Russia, are charged in the District of Massachusetts with conspiring to obtain unauthorized access to computers, and to commit wire fraud and securities fraud and with obtaining unauthorized access to computers, wire fraud and securities fraud. Ermakov, a former officer in the Russian Main Intelligence Directorate (GRU), a military intelligence agency of the General Staff of the Armed Forces of the Russian Federation, was previously charged in July 2018 in federal court in Washington, D.C. for his alleged role in a hacking and influence effort related to the 2016 U.S. elections. In October 2018, Ermakov was also charged in federal court in Pittsburgh in connection with his alleged role in hacking and related disinformation operations targeting international anti-doping agencies, sporting federations, and anti-doping officials.
Mikhail Vladimirovich Irzak, also known as “Mikka Irzak,” 43, and Igor Sergeevich Sladkov, 42, both of St. Petersburg, Russia, are also charged in the District of Massachusetts with conspiracy to obtain unauthorized access to computers, and to commit wire fraud and securities fraud, and with securities fraud.
Ermakov, Rumiantcev, Irzak and Sladkov remain at large.
Acting United States Attorney Nathaniel Mendell stated, “The integrity of our nation’s capital markets and of its computer networks are priorities for my office. Today’s charges show that we, the FBI, and our other law enforcement partners will relentlessly pursue those who hack, steal and attempt to profit from inside information, wherever they may hide.”
“Today’s announcement and the extradition of Vladislav Klyushin is just one more example of how the FBI and our partners are working around the clock and around the world to counter the cyber threat that we face today,” said Albert Murray III, Assistant Special Agent in Charge of the FBI Washington Field Office Criminal and Cyber Division. “As alleged, Klyushin and his co-defendants used various illegal and malicious means to gain access to computer networks to perpetrate their illegal trading scheme. These crimes have real consequences. And, as our efforts in this case demonstrate, the FBI is relentless in our work to identify and locate criminals like Klyushin—no matter where they are—and bring them to the U.S. to face justice.”
According to the charging documents, Klyushin, Ermakov and Rumiantcev worked at M-13, an information technology company based in Moscow, where Klyushin served as the company’s first deputy general director. M-13 purported to offer penetration testing and “Advanced Persistent Threat (APT) emulation”—both services that seek exploitable vulnerabilities in a computer system, purportedly for defensive purposes. M-13’s website indicated that the company’s “IT solutions” were used by “the Administration of the President of the Russian Federation, the Government of the Russian Federation, federal ministries and departments, regional state executive bodies, commercial companies and public organizations.” In addition to these services, Klyushin, Ermakov and Rumiantcev also allegedly offered investment management services through M-13 to investors in exchange for up to 60 percent of the profit
Between at least in or about January 2018 and September 2020, Klyushin, Ermakov, Irzak, Sladkov and Rumiantcev allegedly agreed to trade in the securities of publicly traded companies based on material non-public information (“MNPI”) about the earnings of those companies, in advance of the public announcements of financial results. The MNPI was allegedly acquired through unauthorized intrusions into the computer networks of two U.S.-based filing agents (Filings Agents 1 and 2)—vendors that publicly traded companies used to make quarterly and annual filings through the U.S. Securities and Exchange Commission (SEC).
Armed with this information before it was disclosed to the public, Klyushin and his codefendants allegedly knew ahead of time, among other things, whether a company’s financial performance would meet, exceed, or lag market expectations—and thus whether its share price would likely rise or fall following the public announcement of that performance—and they traded accordingly, in brokerage accounts held in their own names and in the names of others. It is alleged that Klyushin and his co-conspirators earned tens of millions of dollars in illegal profits.
According to the charging documents, Klyushin and his coconspirators obtained unauthorized access to the computer networks of Filing Agents 1 and 2. They allegedly deployed malicious infrastructure capable of harvesting employees’ usernames and passwords and used stolen usernames and passwords to misrepresent themselves as employees in order to obtain access to the filing agents’ computer networks. To conceal the origin of their activities, the coconspirators allegedly leased proxy (or intermediary) computer networks outside of Russia and subscribed to email addresses and payment systems used in furtherance of the attacks in others’ names. Once inside the filing agent networks, it is alleged that they viewed and downloaded MNPI, including quarterly and annual earnings reports that had not yet been filed with the SEC or disclosed to the general public, of hundreds of companies that are publicly traded on U.S. national securities exchanges, including the NASDAQ and the NYSE. The coconspirators allegedly traded in the securities of those companies while in possession of MNPI concerning their financial performance, including by purchasing securities of companies that were about to disclose positive financial results, and selling short securities of companies that were about to disclose negative financial results. It is further alleged that the coconspirators distributed their trading across accounts they opened at banks and brokerages in several countries, including Cyprus, Denmark, Portugal, Russia and the United States, and misled brokerage firms about the nature of their trading activities.
For example, according to court documents, during a single two-week period between Oct. 22, 2018 and Nov. 6, 2018, Ermakov or another coconspirator gained unauthorized access into Filing Agent 2’s computer network using IP addresses hosted at a data center located in Boston, and viewed or downloaded the non-public earnings-related files of several companies, including Capstead Mortgage Corp., Tesla, Inc., SS&C Technologies, and Nevro Corp. Thereafter—days before the companies’ financial results were filed with the SEC and publicly disclosed—Klyushin and other co-conspirators allegedly placed profitable trades in the shares of those companies, buying shares of companies that were about to disclose positive financial results and selling short shares of companies that were about to disclose negative financial results. For example, on or about Oct. 24, 2018, before one company publicly disclosed positive quarterly earnings results, Klyushin or another coconspirator allegedly purchased its securities in Klyushin’s brokerage account at a Russia-based brokerage firm. That same day, Klyushin allegedly sent a message to M-13 investors, Individuals 1 and 2, stating “Pay attention to shares of [the company] now and tomorrow after 16:30 and on how much they go up”.
The charge of conspiracy to obtain unauthorized access to computers, and to commit wire fraud and securities fraud carries a maximum sentence of five years in prison, three years’ supervised release and a $250,000 fine (or twice or the gross gain or loss). The charge of unauthorized access to computers carries a maximum sentence of five years in prison, three years’ supervised release, and a $250,000 fine (or twice the gross gain or loss). The charges of securities fraud and wire fraud each carry a maximum sentence of 20 years in prison, three years of supervised release, and a $250,000 fine (or twice the gross gain or loss). Each of the charges also provide for restitution and forfeiture upon conviction.
Acting United States Attorney Mendell and FBI ASAC Murray made the announcement today. The SEC, the Justice Department’s Office of International Affairs, the Swiss Federal Office of Justice, the Valais and Zurich Cantonal Police authorities and the Federal Bureau of Investigation’s Boston Field Office provided valuable assistance. Stephen E. Frank and Seth B. Kosto, Chief and Deputy Chief respectively, of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Registered Nurse Sentenced for Drug DiversionRead the Press Release
BOSTON – A Dighton registered nurse was sentenced today in federal court in Boston for drug tampering.
Marietta Strickland, 61, was sentenced by U.S. District Court Judge Indira Talwani to 15 months in prison and three years of supervised release. In October 2020, Strickland pleaded guilty to one count of tampering with a consumer product, specifically the Schedule II controlled substance oxycodone, which is used for pain relief.
While working as a registered nurse at Dighton Care and Rehabilitation Center, Strickland tampered with three blister card packages of oxycodone prescribed to an 89-year-old hospice patient who suffered from Alzheimer’s disease, severe dementia and breast cancer. To avoid detection, Strickland replaced the stolen oxycodone pills with other prescription drugs disguised to look like oxycodone. As a result of Strickland’s tampering, the victim was deprived of her prescribed oxycodone for at least a month and ingested at least 77 unnecessary prescription tablets.
Acting United States Attorney Nathaniel R. Mendell; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Acting Commissioner Margaret Cooke, of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Elysa Wan of Mendell’s Health Care Fraud Unit prosecuted the case.
Worcester Physician Agrees to Pay $115,000 Settlement to Resolve Allegations of Illegal Prescribing of Opioid Controlled SubstancesRead the Press Release
BOSTON – A Worcester physician has agreed to resolve allegations that he improperly prescribed opioid controlled substances outside the usual course of professional practice.
Edward Driscoll, M.D., a physician who practiced at UMass Memorial Medical Center in Worcester, has agreed to pay $115,000 to resolve allegations that he violated the civil remedies provisions of the Controlled Substances Act.
According to the settlement agreement, Dr. Driscoll admitted that he prescribed Schedule II controlled substances that were outside the usual course of professional practice for nine patients. Dr. Driscoll prescribed opioids for chronic pain without conducting functional pain assessments or opioid risk assessments. He rarely ordered urine drug screens and did not have consistent monthly office visits, despite prescribing opioids to patients monthly.
“We entrust physicians to appropriately care for their patients and comply with DEA prescribing regulations, especially in the midst of a destructive opioid epidemic,” said Acting United States Attorney Nathaniel R. Mendell. “These medications are controlled for a reason and failure to abide by the rules puts patients’ safety at risk. We are committed to working with our law enforcement and regulatory partners to enforce compliance and ensure public safety against the dangers of improper prescribing.”
“The DEA is committed to ensuring that all registrants are in compliance with the required regulations, which are enforceable through the Controlled Substances Act,” said Special Agent in Charge Brian D. Boyle of the Drug Enforcement Administration, Boston Division. “Failure to do so increases the potential for diversion and jeopardizes public health and safety. DEA pledges to work with our law enforcement and regulatory partners to ensure these rules and regulations are followed.”
During the investigation, Dr. Driscoll surrendered his Drug Enforcement Administration (DEA) registration number and, as part of the settlement, agreed that he would not seek a new DEA registration number.
Acting United States Attorney Mendell and DEA SAC Boyle made the announcement today. Assistant U.S. Attorney Alexandra Brazier of Mendell’s Affirmative Civil Enforcement unit handled the case.
U.S. Attorney's Office Settles Disability Discrimination Allegations with Massachusetts Parole BoardRead the Press Release
BOSTON – The U.S. Attorney’s Office for the District of Massachusetts has reached an agreement with the Massachusetts Parole Board to resolve allegations that the Parole Board violated the Americans with Disabilities Act (ADA) by discriminating against individuals with Substance Use Disorder (SUD).
The agreement resolves complaints that the Parole Board discriminated against parolees and prospective parolees with SUD taking Medication for Opioid Use Disorder (MOUD). MOUDs include buprenorphine (Suboxone), methadone and naltrexone (Vivitrol). According to the complaints, the Parole Board required certain parolees with SUD to take a specific form of MOUD as a condition of parole instead of requiring them to comply with their health care provider’s recommended treatment. In addition, the Parole Board had a prior practice of requiring certain prospective parolees with SUD to take prescription Vivitrol without conducting individualized assessments to ascertain the efficacy or appropriateness of Vivitrol for that person and without considering whether other forms of MOUD might be more appropriate or effective.
“Ensuring access to medical treatment for opioid use disorder is a central part of this office’s strategy to combat the opioid crisis and every bit as important as prosecuting drug traffickers,” said Acting United States Attorney Nathaniel R. Mendell. “Individualized and effective medical treatment for drug addiction saves lives and reduces illegal drug use. We commend the Parole Board for working with us and sharing our commitment to fighting the opioid crisis with every tool we have.”
Under the terms of the agreement, the Parole Board will ensure that when parole applicants with SUD are assessed for treatment, a qualified addiction specialist authorized to prescribe all three types of MOUD will conduct an individualized assessment and recommend or prescribe the appropriate MOUD or treatment for the applicant, if deemed appropriate. The Parole Board will not express a preference for, or mandate, one form of MOUD over another, even if an individualized assessment results in a recommendation that includes more than one medication option.
In addition, the Parole Board agreed that it will modify conditions of parole for all parolees with SUD to eliminate any condition that includes a requirement for a specific MOUD and instead require that the parolee comply with their health care providers’ recommendations regarding SUD treatment. For all new parolees going forward, the Parole Board will ensure that no parolees with SUD will be required to take a specific form of MOUD as a condition of parole.
This matter is part of an ongoing effort by the U.S. Attorney’s Office to enforce the ADA and to eliminate discriminatory barriers to treatment for SUD. This matter was handled by Assistant U.S. Attorneys Torey B. Cummings and Gregory Dorchak of Mendell’s Civil Rights Unit.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.