District of Massachusetts

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.

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.

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.

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.

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.

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.

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.

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.

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. 

BOSTON – A Quincy real estate broker pleaded guilty today to operating a scheme in which he falsely marketed properties that were not for sale, or had already been sold, and then stole the buyers’ real estate deposits. 

Michael P. Flavin, 38, pleaded guilty to two counts of wire fraud and two counts of aggravated identity theft. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for April 12, 2022.

Between 2017 and April 2020, Flavin solicited deposits on real estate transactions by marketing numerous real estate properties that were not actually for sale. In each case, Flavin executed purchase and sale agreements and received deposit checks from or on behalf of the potential buyers, even though the actual owners of the properties had not agreed to sell their properties or to sell them to those buyers. Flavin forged the signatures of the sellers on the purported purchase and sale agreements. Over this period of approximately three years, Flavin cashed more than 60 deposit checks totaling approximately $1.8 million. 

The charges of wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of aggravated identity theft each provide for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year 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 Nathaniel Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Victor A. Wild and Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.  

BOSTON – A Malden man was charged yesterday in federal court in Boston in connection with the armed robbery of a market in Malden on Dec. 12, 2021.

John Schurko, 56, was charged with one count of interference with commerce by robbery. Following an initial appearance today before U.S. District Court Chief Magistrate Judge M. Page Kelley, Schurko was detained pending a detention hearing scheduled for December 30, 2021.

It is alleged that on Dec. 12, 2021 at about 8 p.m., Schurko entered the Harvard Market in Malden, displayed what appeared to be a black handgun, went behind the counter and demanded money from the clerk. According to the charging documents, on Dec. 16, 2021, Schurko’s getaway vehicle was located in a hotel parking lot in Medford where he was subsequently arrested. A search of the vehicle recovered, among other things, a black Airsoft gun that resembled a real firearm.

The charge of interference 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. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Malden Police Chief Kevin Molis; Medford Police Chief Jack Buckley; Billerica Police Chief Daniel Rosa; and Woburn Police Chief Robert F. Rufo Jr. made the announcement. Assistant U.S. Attorney Robert E. Richardson of Mendell’s Major Crimes Unit is prosecuting the case.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Georgia man pleaded guilty yesterday in federal court in Boston to extorting a Boston-area woman for videos, photographs and communications of a sexual nature as well as cyberstalking other women over social media.

Gary E. Leach, 24, of Athens, Ga., pleaded guilty to two counts of cyberstalking and one count of extortion through interstate threats. U.S. District Court Judge Angel Kelley scheduled sentencing for April 7, 2022. Leach was arrested and charged on April 23, 2021 and has been on home detention since he was released from custody on May 18, 2021.

From October 2019 until his arrest in April 2021, Leach, then a graduate student at the University of Georgia, targeted a Boston-area woman in an online cyberstalking and extortion campaign. Leach used anonymous Instagram accounts to obtain private video calls and photographs of a sexual nature from the victim through false promises of payment and surreptitiously recorded the victim during these calls. Leach threatened to share the recordings with the victim’s family if she did not continue to send him content of a sexual nature over Instagram and repeatedly harassed and extorted the victim for additional interactions of a sexually explicit and degrading nature.

Leach also cyberstalked other women on social media, including a woman residing in Canada. Leach recorded a video call of a sexual nature with this victim and sent the recording to her roommate. He repeatedly contacted the victim and used the recording to attempt to solicit additional interactions with her. Throughout 2019 and 2020, Leach attempted to solicit video performances of a sexual nature from at least a dozen Instagram users and initiated interactions with numerous other Instagram users for the purpose of exposing himself masturbating.

The charge of stalking by electronic means 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 extortion by interstate threat of injury to reputation provides for a sentence of up to two years in prison, one year 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 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 David M. Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.

BOSTON – A repeat convicted felon has been charged for allegedly possessing a firearm and multiple rounds of ammunition and fentanyl intended for distribution. 

Francisco Gabriel Diaz, 31, of Boston, was charged with one count of possession with intent to distribute 40 grams or more of fentanyl and one count of being a felon in possession of a firearm. Following an initial appearance today before U.S. District Court Magistrate Chief Judge M. Page Kelley, Diaz was detained pending a probable cause hearing scheduled for Dec. 30, 2021.

According to the charging documents, on June 24, 2021, a search of the residence where Diaz was staying resulted in the recovery of a black Taurus G2S 9mm firearm, a 9mm magazine containing seven live 9mm rounds, a 9mm magazine containing one live 9mm round, over 40 grams of fentanyl, several plastic bags containing crack cocaine, a box of sandwich bags and a digital scale. Diaz is prohibited from possessing a firearm due to four previous felony convictions: a May 2020 conviction for possession of cocaine base; an October 2017 conviction for possession with intent to distribute a Class B Substance; an April 2017 conviction for possession with intent to distribute a Class A Substance and Class B Substance; and a January 2014 conviction for assault with a dangerous weapon. Diaz was on federal supervised release for the May 2020 cocaine conviction at the time of the search. 

 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 and up to a lifetime of supervised release and a fine of up to $5 million. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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.

The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Boston man has been charged with illegal possession of firearms stemming from his alleged posts on social media.

Dumari Shakur Scarlett-Dixon, 20, was charged with one count of being a drug user in possession of a firearm and ammunition. Following an initial appearance yesterday before U.S. District Court Magistrate Judge Donald L. Cabell, Scarlett-Dixon was detained pending a detention hearing which is scheduled for Dec. 21, 2021.

According to court documents, in September 2021, law enforcement identified Scarlett-Dixon as a member of the Heath Street gang, a Boston-area street gang. Scarlett-Dixon has four unlawful possession of firearm charges currently pending: one in Suffolk County Juvenile Court; one in Dorchester District Court; and two in Roxbury District Court. Additionally, Scarlett-Dixon was on court-ordered home confinement at his grandmother’s residence in Weymouth at the time. It is alleged that agents identified images and posts Scarlett-Dixon made on Snapchat. Many of the Snapchat posts included images of Scarlett-Dixon allegedly holding firearms in a shooting position towards the camera and pictured him in possession of firearms with extended ammunition clips.

According to the charging documents, on Sept. 24, 2021, a search of the Weymouth residence resulted in the seizure of a Bersa 9 millimeter semiautomatic pistol loaded with 14 rounds of ammunition in a high capacity ammunition clip under a pillow on Scarlett-Dixon’s bed. Agents also seized 36 additional rounds of 9 millimeter ammunition and 10 rounds of .380 caliber ammunition. Marijuana blunts were also allegedly observed to be scattered throughout the room. A search of Scarlett-Dixon’s phone revealed that the defendant regularly searched for information about firearms, including “Tactical Green Laser Light Combo Led Pistol Gun Rechargeable Battery,” “High Capacity Magazines” and “Ruger ec9s laser light combo,” in addition to press releases for Boston-area gun and drug trafficking arrests.

The charge of being a drug user in possession of a firearm and ammunition provides for a sentence of up to 10 year in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and 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 Division; 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 Christopher Pohl of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Boston man was arrested yesterday on charges of methamphetamine distribution.

Joshua Westbrook, 25, was indicted on one count of distribution and possession with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine. Westbrook was detained following an initial appearance today before U.S. District Court Magistrate Judge Judith G. Dein.

According to the indictment, on or about Nov. 9, 2021, Westbrook distributed 50 grams or more of methamphetamine in Dorchester.

The charge of distribution and possession with intent to distribute 50 grams or more of methamphetamine provides for a sentence of at least 10 years and up to life years in prison, at least 5 years and up to a lifetime of supervised release, and a fine of up to $10 million.  Sentences are imposed by  federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

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.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement today. Valuable assistance was provided by the United States Postal Service; Plymouth County and Norfolk County Sheriff's Offices; Massachusetts State Police; and the Portland (Maine), Watertown, Waltham, Concord, Reading, Peabody and Hudson Police Departments. Assistant U.S. Attorney Alathea Porter of Mendell’s Narcotics and 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.

BOSTON – A Worcester man was sentenced today for distributing nearly one kilogram of cocaine.

Julio Rivera, 47, was sentenced by U.S. District Court Judge Timothy S. Hillman to five years in prison and four years of supervised release. On Sept. 2, 2021, Rivera was convicted by a federal jury of distribution and possession with intent to distribute 500 grams or more of cocaine.

In October 2018, a federal investigation into co-conspirator Melvin Burgos intercepted numerous communications between Burgos and co-conspirator William Torres arranging to obtain one kilogram of cocaine from Rivera. On Nov. 1, 2018, Rivera led Burgos to his storage unit in Worcester where he distributed 900 grams of cocaine to Burgos. Agents subsequently stopped both Rivera and Burgos and a search of Rivera’s vehicle recovered the phone he used to communicate with Torres and Burgos, which he had attempted to destroy. A search of Burgos’ vehicle resulted in the seizure of the 900 grams of cocaine.

Torres and Burgos each pleaded guilty to their role in the conspiracy. On Feb. 26, 2021, Torres was sentenced to five years in prison and four years of supervised release. Burgos is scheduled to be sentenced on Jan. 5, 2022.

Acting United States Attorney Nathaniel Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorneys John T. Mulcahy and Mackenzie A. Queenin of Mendell’s Criminal Division prosecuted the case.

BOSTON – A Providence, R.I., man was sentenced today in federal court in Boston in connection with trafficking firearms from North Carolina. 

Chiweze Ihunwo, 24, previously of Randolph, Mass., was sentenced by U.S. District Court Judge Leo T. Sorokin to 15 months in prison and three years of supervised release. On Aug. 17, 2021, Ihunwo pleaded guilty to one count of engaging in the business of dealing in firearms without a license.

In 2019 and 2020, Ihunwo traveled from Massachusetts to North Carolina for the purpose of acquiring firearms to be resold for profit. After acquiring these firearms, Ihunwo traveled back to Massachusetts and sold them to various individuals. At various times, Ihunwo advertised the firearms for sale via social media. In addition, Ihunwo made arrangements to sell firearms to a person who soon thereafter was arrested in connection with a June 23, 2020 shooting incident on I-95 in Providence.

During a search of a residence in Providence where Ihunwo had been staying, an AK-style pistol and various rounds of ammunition were recovered. 

Acting United States Attorney Nathaniel R. Mendell and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives made the announcement. Assistance was provided by the Randolph Police Department, the Providence Police Department and the Rhode Island State Police. Assistant U.S. Attorney Mackenzie Duane of Mendell’s Major Crimes Unit prosecuted the case.

BOSTON – The chief executive officer of a California liquor distribution company was sentenced today in federal court in Boston for her involvement in the college admissions case.

Marci Palatella, 66, of Hillsborough, Calif., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to six weeks in prison, a $250,000 fine, two years of supervised release with the first six months spent in home confinement and 500 hours of community service. On Aug. 26, 2021, Palatella pleaded guilty to one count of conspiracy to commit honest services mail fraud.

Palatella engaged in a scheme to defraud The College Board by paying William “Rick” Singer $75,000 to bribe Igor Dvorskiy, a corrupt test administrator, to allow Mark Riddell, a corrupt test “proctor,” to secretly correct her son’s SAT exam answers to obtain a fraudulently inflated score. In addition, Palatella agreed with Singer and others to pay $500,000 to facilitate her son’s admission to USC as a football recruit, even though he was not actually being recruited and would not play on the USC football team. 

Singer previously pleaded guilty and is pending sentencing.

Case information, including the status of each defendant, charging documents, and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Leslie A. Wright, Kristen A. Kearney, Ian J. Stearns and Stephen E. Frank of Mendell’s Criminal Division prosecuted the case.

BOSTON – An Everett man pleaded guilty today in federal court in Boston to his role in a methamphetamine trafficking conspiracy.

Andrew Lunn, 42, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 50 grams or more of methamphetamine and four counts of distribution of 50 grams or more of methamphetamine. U.S. District Court Judge Denise J. Casper scheduled sentencing for April 27, 2022. Lunn was initially indicted in September 2020 and was subsequently charged in a superseding indictment on May 5, 2021 along with three co-conspirators.

According to the charging documents, in or about October 2019 through in or about September 2020, Lunn and others conspired to distribute and possessed with intent to distribute methamphetamine throughout the Everett and Boston areas.

The charges of conspiracy to distribute 50 grams or more of methamphetamine and distribution and possession with intent to distribute 50 grams or more of methamphetamine 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. 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 Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division made the announcement today. Assistant United States Attorney Alathea Porter of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case. 

The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Dominican national pleaded guilty today in federal court in Boston to illegally reentering the United States after deportation.

Yomelvin Abreu Bonilla, 32, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. Senior District Court Judge William G. Young scheduled sentencing for April 5, 2022. Bonilla was indicted on April 29, 2021. 

In March 2021, agents encountered Bonilla in Bedford, Mass. and determined that he was illegally present in the United States. Bonilla was previously deported in August 2016.

The charge provides for a sentence of up to 10 years in prison, three years of supervised released and a fine of up to $250,000. Bonilla 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 Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit is prosecuting the case.

BOSTON – Twenty-one individuals have been charged in connection with a large-scale drug trafficking conspiracy involving cocaine, fentanyl and other controlled substances with activity that spanned across Massachusetts, New Hampshire, Connecticut, Maine and Puerto Rico.

According to the charging documents, in May 2020, law enforcement began investigating a Lawrence-based drug trafficking organization (DTO). Since December 2020, intercepted communications between members of the DTO and their associates revealed that the defendants allegedly distributed fentanyl and cocaine in and around the Lawrence area.

The following defendants were arrested today and charged with conspiracy to distribute and to possess with intent to distribute fentanyl, cocaine and other controlled substances:

1. Joseph Correa, 31, of Lawrence, Mass.;
2. Jose Martinez, a/k/a “Bebo,” 28, of Lawrence, Mass.;
3. Luis Martinez, 25, of Lawrence, Mass. and Manchester, N.H.;
4. Alberto Marrero, a/k/a “Gordo,” 40, of Lawrence, Mass.;
5. Madeline Correa-Dones, 50, of Caguas, P.R.;
6. Mavi Rosario, 30, of Lawrence, Mass.;
7. Sonvi Rosario, 31, of Lawrence, Mass.;
8. Fauris Guerrero Valdez, a/k/a “Duro,” 25, of Lawrence, Mass.;
9. Luis Perez Frias, 20, of Lawrence, Mass.;
10. Freddy Reyes Concepcion, a/k/a Franchve Gonzalez Irizarry, 49, of Lawrence, Mass.;
11. Alex Rafael Hernandez Mercedes, 36, of Lawrence, Mass.;
12. Felipe Martinez, 59, of Lawrence, Mass.;
13. Elvis DeJesus, 30, of Lawrence, Mass.;
14. William Rivadeneira, 28, of Haverhill, Mass.;
15. Gregorit Sanchez, 27, of Haverhill, Mass.;
16. Jeremy Eaton, 25, of Lunenburg, Mass.;
17. Nestor Emilio Olaverria Fuster, a/k/a Pablo Pizarro-Rosa, a/k/a “Chiquitin,” 58, of Lawrence, Mass.;
18. Othoniel Lara Gonzalez, a/k/a “Jose Ramirez,” a/k/a “Anibal Pena,” a/k/a “Chirpa,” 52, of Lawrence, Mass.; and
19. Zacharia Mohamed, 26, of South Portland, Maine.

Victor Ramon Melendez, 33, of Norwich, Conn. remains at large.

Pablo Rosario Pablo a/k/a “Angel Ayala Roque” a/k/a “Cuco,” 56, of Methuen, Mass., was also arrested today and charged in a separate criminal complaint with one count of possession with intent to distribute cocaine.

It is alleged that the DTO is headed by Correa, who sold drugs in both wholesale and retail quantities and employed couriers and stash house operators to store and distribute drugs, including the mother of his children and her sister. Correa allegedly obtained fentanyl locally and obtained cocaine from suppliers in Puerto Rico. Specifically, it is alleged that Correa, Jose Martinez and Luis Martinez are half-brothers and regularly travelled to Puerto Rico to purchase kilograms of cocaine. They and Correa-Dones, their mother, would then mail the drugs in packages to addresses in New York, Massachusetts and New Hampshire. Over the course of the investigation, approximately 7.5 kilograms of cocaine was seized from packages mailed from Puerto Rico to the defendants. In total, over 10.5 kilograms of cocaine, approximately 650 grams of suspected fentanyl and approximately $201,681 in drug proceeds were seized over the course of the investigation.

According to the charging documents, Sanchez was a Correctional Officer with the Middleton House of Correction in Middleton, Mass. Sanchez allegedly helped DeJesus obtain a contraband cellphone while DeJesus was being held in the Middleton House of Correction after being arrested on state firearms charges. It is further alleged that on Nov. 11, 2021, Sanchez attempted to smuggle a package containing fentanyl, cocaine and Suboxone into the Middleton House of Correction for DeJesus. The package was seized as Sanchez was arriving for work.

Rivadeneira was allegedly employed by DeJesus and Martinez to assist with distribution of fentanyl and cocaine. According to the charging documents, DeJesus scolded Rivadeneira on an intercepted call for not wearing a mask when working with fentanyl, and warned Rivadeneira, “[Y]ou can get an overdose.”

The charges of conspiracy to distribute and to possess with intent to distribute fentanyl, cocaine and other controlled substances, and possession with intent to distribute cocaine provide for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $100. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

This operation 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.

Acting United States Attorney Nathaniel R. Mendell; 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 Field Office, made the announcement. Special assistance was provided by the Lawrence Police Department; U.S. Postal Inspection Service; Massachusetts State Police; Federal Bureau of Investigation; and Essex County Sheriff’s Office. Assistant U.S. Attorney Katherine Ferguson, Acting Chief of Mendell’s Narcotics & Money Laundering Unit, is prosecuting the case.

The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A New Bedford man pleaded guilty on Monday, Dec. 13, 2021, in federal court in Boston to illegally possessing a firearm and selling cocaine.  

Khyron Thompson, 32, pleaded guilty to one count of being a felon in possession of firearm and ammunition and one count of distribution of and possession with intent to distribute cocaine. U.S. District Court Judge Denise J. Casper scheduled sentencing for April 6, 2022. Thompson was indicted on May 13, 2021.

On Feb. 13, 2020, Thompson distributed cocaine and possessed a loaded .32 caliber Hi-Point pistol firearm with an obliterated serial number and six rounds of ammunition. Thompson is prohibited from possessing a firearm under federal law due to multiple previous state convictions including assault and battery.

The charge of being a felon in possession of 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 distribution of and possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, up to a lifetime of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorneys Evan Gotlob and Kenneth G. Shine of Mendell’s Major Crimes Unit are prosecuting the case. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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.

BOSTON – A Lowell man pleaded guilty today in federal court in Boston to his role in a drug trafficking conspiracy involving methamphetamine disguised as counterfeit Adderall pills.

Vimoon Sortsoy, 29, pleaded guilty to conspiracy to distribute and possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for April 6, 2022. Sortsoy was indicted on Jan. 27, 2021.

Sortsoy conspired to distribute counterfeit prescription pills pressed to resemble Adderall that in fact contained methamphetamine in the Lowell area. Specifically, in a series of controlled purchases conducted by law enforcement, Sortsoy sold counterfeit pills containing methamphetamine to a cooperating witness. In total, Sortsoy sold approximately 400 grams of counterfeit pills containing methamphetamine.

The charge of conspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine 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. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Lowell Police Chief Raymond Kelly Richardson made the announcement. Assistant U.S. Attorney Sarah Hoefle of Mendell’s Organized Crime and Gang Unit is prosecuting the case.

BOSTON – A Kentucky man has been indicted by a federal grand jury in Boston in connection with advertising pornographic images of children via the dark web.

Scott Allison, 57, of Glasgow, Ky., was indicted on one count of advertisement of child pornography. Allison made an initial appearance in federal court in the Western District of Kentucky this morning. The defendant was initially charged on Nov. 17, 2021 in the Western District of Kentucky with possession of child pornography.

According to court documents, an undercover agent observed Allison utilizing a username on the dark web that advertised and posted links on or about April 13, 2021, to child sexual abuse images of boys as young as approximately two years old. It is alleged that Allison used at least two different usernames on various websites on the dark web.

The charge of advertisement of child pornography provides for a sentence of at least 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Michael A. Bennett, United States Attorney for the Western District of Kentucky; and Jerry C. Templet Jr., Special Agent in Charge of Homeland Security Investigations in Nashville made the announcement today. Assistant U.S. Attorney J. Mackenzie Duane, of Mendell’s Major Crimes Unit, is 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/.

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 – A former auto repair technician with the Boston Police Department’s (BPD) Fleet Management Division was sentenced yesterday in connection with a scheme to embezzle hundreds of thousands of dollars from the BPD.

Bahram Gharony, 36, of Boston, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to two months in prison and three years of supervised release. Gharony was also ordered to pay restitution in the amount of $256,432. On Aug. 10, 2021, Gharony pleaded guilty to two counts of wire fraud.

Gharony engaged in a scheme that defrauded BPD’s Fleet Management Division of over $260,000 in automotive parts, tools and supplies between June 2017 and September 2020. Gharony used his position to order parts and supplies that he purported were for BPD, but were actually converted and sold to others by Gharony. In an effort to conceal the scheme, Gharony submitted fraudulent and altered invoices to BPD for the parts, tools and supplies he falsely claimed were ordered for the fleet. Additionally, Gharony purported that he had lawfully purchased the items through a discount available to BPD when selling the items to others.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorney Neil J. Gallagher Jr. of Mendell’s Public Corruption & Special Prosecutions Unit prosecuted the case.

BOSTON – A Dominican national recently residing in Lawrence pleaded guilty today in federal court in Boston to her role in a cocaine distribution conspiracy.

Michel Saredi-Munoz Morta, 21, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for April 14, 2022. Morta was charged on Nov. 16, 2021.

In or about August 2020, several Priority Mail packages sent to addresses in Lawrence were identified by law enforcement as parcels suspected to contain illegal narcotics. Surveillance of the addresses captured a woman, later identified as Morta, collect the packages shortly after delivery at each location. Morta was subsequently arrested. The packages were found to contain over 500 grams of cocaine.

The charge of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine 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 $5 million. Morta will be subject to deportation upon completion of her 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The Lawrence Police Department provided valuable assistance in the investigation. Assistant U.S. Attorneys Samuel R. Feldman and Leah B. Foley of Mendell’s Narcotics and Money Laundering Unit are prosecuting the case. 

BOSTON – The owner of a warehousing company for the shipping industry pleaded guilty today in federal court in Boston in connection with his involvement in the college admissions case. 

I-Hsin “Joey” Chen, 67, of Newport Beach, Calif., pleaded guilty to one count of wire fraud and honest services wire fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for April 20, 2022. Chen was previously scheduled for trial on Jan. 13, 2022.

Chen admitted to his role in a scheme to defraud ACT, Inc. by paying William “Rick” Singer $75,000 to bribe Igor Dvorskiy, a corrupt test administrator, to allow Mark Riddell, a corrupt test “proctor,” to secretly correct Chen’s son’s ACT exam answers to obtain a fraudulently inflated score.

Singer, Dvorskiy and Riddell have pleaded guilty for their respective roles in the scheme.

Under the terms of the plea agreement, the defendant has agreed to a sentence, subject to the Court’s approval, of nine weeks in prison, one year of supervised release with 100 hours of community service and a fine of $75,000. 

Chen is the 38th, and final parent, in the case involving Singer’s exam cheating and athletic recruitment scheme, to either plead guilty or be convicted by a jury following trial.   

Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.

The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Kristen A. Kearney, Ian J. Stearns and Leslie Wright of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.

BOSTON – A Reading man pleaded guilty in federal court in Boston today in connection with a scheme to defraud an elderly relative of her interest in a three-family home and a separate scheme to defraud the Massachusetts Department of Unemployment Assistance. 

Giorgio “George” Fiorenza, 51, pleaded guilty to two counts of wire fraud and one count of aggravated identity theft. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for April 7, 2022. Fiorenza was charged in August 2020.

Between August and September 2017, Fiorenza defrauded an elderly relative into unknowingly signing a deed conveying her interest in a property she owned with Fiorenza’s spouse and forged the victim’s name on another document necessary to convey title to the property, both of which were recorded in the Middlesex Registry of Deeds. Fiorenza then took out a $750,000 loan in his spouse’s name and secured by the property, and subsequently caused the lender to foreclose on the property. 

Between April and June 2020, Fiorenza filed claims for Pandemic Unemployment Assistance (PUA) in the names of third parties and fraudulently diverted some of the funds for his own use. PUA was a temporary federal unemployment insurance program created when Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in March 2020 in response to the global coronavirus pandemic. The PUA program, which in Massachusetts was administered by the Department of Unemployment Assistance, provided unemployment insurance benefits for individuals who were not eligible for other types of unemployment benefits. Among other things, Fiorenza filed a PUA claim using a victim’s identity, directed the proceeds of the claim to an account in his spouse’s name, and did not disclose to the victim or her husband that she had qualified for assistance.

The charge of wire fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft provides a mandatory sentence of two years in prison, one year 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, Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division and Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations made the announcement. Assistant U.S. Attorneys Kristen A. Kearney and David M. Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

BOSTON – A Worcester man was sentenced today for federal tax and fraud charges arising from his role in overseeing various Worcester-based employment agencies.

Tam Vuong, 46, was sentenced by U.S. District Court Judge Timothy S. Hillman to 25 months in prison and three years of supervised release. Vuong was also ordered to pay restitution and forfeiture in amounts to be determined at a later date. On Aug. 5, 2021, Vuong pleaded guilty to 14 counts of wire fraud and four counts of failing to pay taxes.

Vuong oversaw Prime Labor LLC and UT Services, Inc., which were employment agencies based in Worcester. Each agency paid a few employees by check but paid most employees in cash. Each agency failed to report or pay taxes on the wages paid in cash, which Vuong fraudulently concealed in tax filings and insurance audits. Vuong concealed millions of dollars in cash wages that were paid to Prime Labor workers and additional cash wages paid by UT Services. Between 2012 and 2017, more than $30 million in Prime Labor client company checks were cashed at a check-cashing business in Worcester; Prime Labor paid millions of these dollars in cash wages and then failed to report these wages to the IRS or to its insurer.

In addition, while in his role overseeing and controlling UT Services, Vuong falsely told UT Services’ insurance carrier that the company had only one employee and an annual payroll of only $50,000, when, in actuality, UT Services had dozens of employees and a significantly higher payroll. UT Services disseminated forged certificates of insurance to several clients and failed to inform clients when its workers’ compensation policy was cancelled.

Vuong shifted operations from Prime Labor to UT Services after federal search warrants were executed in November 2017. Vuong took steps to hide his role with both Prime Labor and UT Services.

In January 2021, Julio Lopez, a former employee of Prime Labor and UT Services, pleaded guilty to wire fraud and tax charges and is currently scheduled to be sentenced on Dec. 15, 2021. Linda Le, a former employee of UT Services, was sentenced in May 2021 to two years of probation after pleading guilty to perjury for giving false testimony before a federal grand jury.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorney William Abely, Chief of Mendell’s Criminal Division and Assistant U.S. Attorney Adam Deitch, of Mendell’s Criminal Division, prosecuted the case.

BOSTON – A New York man pleaded guilty today in federal court in Boston to his role in a drug distribution conspiracy involving heroin, fentanyl and cocaine.

Wilkin Cedano, 37, of Brooklyn, N.Y., pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin, cocaine and 40 grams or more of fentanyl. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for March 31, 2022. Cedano was charged on Nov. 16, 2021.

From approximately November 2019 through December 2019, Cedano conspired with others to transport fentanyl and 1,000 pills containing controlled substances from New York to Lynn, Mass., for sale to a cooperating witness. On Dec. 2, 2019, Cedano met with the cooperating witness in the parking lot of a Market Basket in Lynn and presented two packages of fentanyl wrapped in cellophane and two pill bottles. Cedano was subsequently arrested. A search of Cedano’s car resulted in the recovery of a plastic bag tucked beneath the steering column that contained additional controlled substances. In total, 938 pills were recovered containing fentanyl, or a mixture of heroin and fentanyl.

The charge of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin, 40 grams or more of fentanyl and cocaine provides 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 $5 million. 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 Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. The Lynn Police Department provided valuable assistance in the investigation of this case. Assistant U.S. Attorney Samuel R. Feldman of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case. 

BOSTON – A registered sex offender was arrested yesterday in connection with allegedly receiving and possessing child pornography via multiple groups on a messaging app.

Angel Figueroa, 49, of Fall River, was charged with receipt and possession of child pornography. Following an initial appearance yesterday before U.S. District Court Magistrate Judge M. Page Kelley, Figueroa was detained pending a detention hearing scheduled for Dec. 14, 2021,

According to the charging documents, Figueroa, a registered sex offender, was identified as an active member in at least four groups on a messaging app where child pornography was being disseminated. A preliminary forensic examination of Figueroa’s cell phone during a search of his residence yesterday revealed numerous images and videos of child pornography with minors as young as approximately six-years-old. During the search, Figueroa allegedly admitted that he viewed child pornography of female minors as young as approximately six-years-old via apps on his cell phone.

The charge of receipt of child pornography provides a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Fall River Acting Chief of Police Paul Gauvin made the announcement. Assistant U.S. Attorney J. Mackenzie Duane, of Mendell’s Major Crimes Unit, is 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/.

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 – A Bronx, N.Y. man was sentenced on Wednesday, Dec. 8, 2021 in federal court in Boston for fentanyl distribution.

Carlos Nunez, 49, was sentenced by U.S. District Court Judge Indira Talwani to three years in prison and three years of supervised release. On July 22, 2021, Nunez pleaded guilty one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl and two counts of distribution of and possession with intent to distribute 400 grams or more of fentanyl.

Over the course of approximately six months in 2019, Nunez and co-conspirator Yamel Cuevas Gonzalez conspired to distribute more than 400 grams of fentanyl to an individual in Massachusetts. Specifically, on two occasions in July and August of 2019, Nunez distributed more than 400 grams of fentanyl to the buyer. Nunez and Gonzalez were arrested after driving from New York to Walpole to distribute fentanyl in August 2019.

On May 3, 2021, Gonzalez was sentenced by Judge Talwani to 10 years in prison and five years of supervised release. Upon completion of his sentence, Gonzalez will face deportation to the Dominican Republic.

Acting United States Attorney Nathaniel R. Mendell and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Valuable assistance was provided by the Walpole and Dedham Police Departments. Assistant U.S. Attorney Nadine Pellegrini of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.

BOSTON – A former U.S. Postal Service mail carrier was sentenced today in federal court in Boston for stealing mail containing gift cards and cash.

Brian Thibodeau, 49, of Danvers, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to one year of probation. Thibodeau was also ordered to pay a fine of $7,500 and restitution in the amount of $175. On Aug. 5, 2021, Thibodeau pleaded guilty to one count of theft of mail by an employee of the U.S. Postal Service.

Beginning in 2001, Thibodeau worked as a letter carrier in the Saugus Post Office. In 2020, Thibodeau stole cash and gift cards sent in the mail he was responsible for delivering to postal customers and spent the funds for his personal use. Thibodeau stole approximately $2,000 worth of gift cards from postal customers on his route.

Acting United States Attorney Nathaniel R. Mendell and Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office made the announcement today. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, prosecuted the case.

BOSTON – A Brockton man was sentenced today for distributing fentanyl throughout southeastern Massachusetts.

Christian Collins, 19, was sentenced by U.S. District Court Judge Patti B. Saris to five years in prison and four of supervised release. On June 23, 2021, Collins pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl and three counts of distribution of fentanyl.

In 2019 and 2020, law enforcement officers conducted an investigation into fentanyl traffickers operating in southeastern Massachusetts. In December 2019, Collins worked with co-defendant Filomeno Monteiro to distribute 20 grams of fentanyl to a cooperating witness and an undercover police officer in Plympton. On Jan. 3, 2020, Collins and a third man sold 10 grams of fentanyl and a Taurus .38 caliber firearm to the same cooperating witness and undercover officer. On Jan. 6 and Jan. 8, 2020, Collins distributed a total of 45 grams of fentanyl to the cooperating witness and undercover officer.

Monteiro pleaded guilty on July 13, 2021 and is scheduled to be sentenced on Jan. 18, 2022.

Acting United States Attorney Nathaniel R. Mendell; 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 Mendell’s Narcotics and Money Laundering Unit, prosecuted the case.

BOSTON – A Taunton man pleaded guilty today to illegally possessing a firearm and ammunition.

Jerrod Lee, 29, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. District Court Indira Talwani scheduled sentencing for March 14, 2022. Lee was indicted in October 2020 with co-defendant Ronney Fullard, who pleaded guilty to the same charge on Oct. 6, 2021.

In August 2020, during the execution of an arrest warrant in connection with pending state firearms charges, law enforcement found Lee and Fullard each in possession of a loaded firearm at Lee’s residence. Specifically, Lee possessed a Ruger .45 caliber pistol, Model P90 loaded with five rounds of .45 caliber ammunition and Fullard possessed a Taurus PT 709 9mm pistol loaded with six rounds of 9mm ammunition. Due to prior felony convictions, federal law prohibits both defendants from possessing firearms and ammunition.

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 judge based on 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 Division; Boston Police Acting Commissioner Gregory Long; and Taunton Police Chief Edward James Walsh made the announcement today. Assistant U.S. Attorney Sarah Hoefle of Mendell’s Organized Crime and Gang Unit is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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.

BOSTON – A Springfield man pleaded guilty today to being a felon in possession of ammunition.

David Cecchetelli, 54, pleaded guilty to one count of being a felon in possession of ammunition before U.S. District Court Judge Patti B. Saris who scheduled sentencing for March 17, 2022. Cecchetelli was indicted in February 2020.

During a search of Cecchetelli’s residence in December 2019, law enforcement found ammunition in Cecchetelli’s bedroom – concealed under his mattress. Due to a prior conviction in October 2005, Cecchetelli is prohibited from possessing firearms and ammunition.

The charge of being a felon in possession of 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 on 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, New England Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of Mendell’s Organized Crime & Gang Unit is prosecuting the case.

The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – The former chief executive of a California-based media company was sentenced today in connection with her involvement in the college admissions case.

Elisabeth Kimmel, 56, of Las Vegas, Nev., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to six weeks in prison, two years of supervised release with the first year spent in home confinement, 500 hours of community service and a fine of $250,000. On Aug. 16, 2021, Kimmel pleaded guilty to one count of conspiracy to commit mail and wire fraud.

Kimmel agreed with William “Rick” Singer and others to pay $275,000 to facilitate her daughter’s admission to Georgetown University by having Georgetown tennis coach Gordon Ernst allocate a tennis admission slot to her daughter, even though she was not a competitive tennis player and was not actually being recruited to play on the Georgetown tennis team. Kimmel further agreed with Singer and others to pay $250,000 to facilitate her son’s admission to the University of Southern California as a pole vault recruit, even though he was not a pole vaulter.

Kimmel is the 29th parent to be sentenced in the case. Singer and Ernst previously pleaded guilty and are pending sentencing.

Case information, including the status of each defendant, are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Leslie A. Wright, Kristen A. Kearney, Ian J. Stearns, and Stephen E. Frank of Mendell’s Securities, Financial and Cyber Fraud Unit prosecuted the case.

The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A New Hampshire roofing contractor was sentenced today in federal court in Boston in connection with failing to report income from his roofing and siding business to the Internal Revenue Service (IRS). 

Ronald McPhail, 53, of Windham, N.H., was sentenced today by U.S. Senior District Court Judge George A. O’Toole Jr. to one year and one day in prison and one year of supervised release. McPhail was also ordered to pay a fine of $10,000 and restitution in the amount of $708,494 to the IRS. On June 8, 2021, McPhail pleaded guilty to one count of filing a false tax return.

McPhail owed more than $700,000 in income taxes to the IRS after he failed to report more than $7.1 million in revenue and approximately $2.43 million in income from his roofing and siding business on his federal tax returns for tax years 2014 through 2019. To conceal his scheme, McPhail cashed customer checks without first depositing them and withheld information concerning these checks and other business revenues from his tax preparers. Additionally, McPhail concealed his income by requesting payment from his customers in several sequentially numbered checks in amounts less than $10,000 and then cashing them at different bank branches on different days.

Acting United States Attorney Nathaniel R. Mendell and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Mendell’s Securities, Financial & Cyber Fraud Unit, prosecuted the case.

BOSTON – A Lynn man was sentenced today in federal court in Boston for conspiring to distribute methamphetamine and possessing firearms.

David Oth, a/k/a “Baby Bouncer,” a/k/a “BB,” 32, was sentenced today by U.S. Senior District Court Judge Mark L. Wolf to 15 years in prison and six years of supervised release. On Aug. 5, 2021, Oth pleaded guilty to conspiracy to distribute and possession with intent to distribute 50 grams or more of methamphetamine and possession of firearms in furtherance of a drug trafficking crime.

Oth was a member of the Tiny Rascals Gangsters, a violent street gang with a presence in Lynn, Malden, Salem and Lowell. Oth and other gang members conspired for over a year to distribute methamphetamine and other drugs by transporting them to Maine, where they would yield a higher resale value. A search of Oth’s residence in February 2021 resulted in the seizure of approximately three pounds of 100% pure methamphetamine and two firearms.

Acting United States Attorney Nathaniel R. Mendell; 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 & Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Lynn Police Chief Christopher P. Reddy made the announcement. Assistance was provided by the U.S. Attorney’s Office for the District of Maine; Maine Drug Enforcement Agency; Essex County, Middlesex County and Suffolk County District Attorney’s Offices; Essex County and the Hancock County (Maine) Sheriff’s Departments; and the Malden, Salem, Bangor (Maine), Portland (Maine) and Westbrook (Maine) Police Departments. Assistant U.S. Attorneys Philip A. Mallard and Sarah Hoefle of Mendell’s Organized Crime and Gang Unit prosecuted the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

BOSTON – The Department of Justice has awarded $314,273 to the Massachusetts Executive Office of Public Safety and Security (EOPSS) to administer Project Safe Neighborhoods (PSN) grant funds in the District of Massachusetts. Since the program began in 2001, nearly $7 million in federal grant funds have been allocated to the District of Massachusetts’s violent crime reduction efforts.

PSN is a Department of Justice nationwide violent-crime reduction initiative coordinated by the U.S. Attorney’s Offices. PSN brings together federal, state, local and tribal law enforcement officials, prosecutors and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address those issues. While the initiative was first launched in 2001, the Department strengthened the program in May 2021 by implementing a new strategy focused on reducing violent crime in the places we call home, not solely increasing the number of arrests or prosecutions.

Each U.S. Attorney’s Office across the United States is responsible for creating a comprehensive strategy for reducing violent crime. The District of Massachusetts established an extensive network of law enforcement and community partners who have been fundamental to this strategy’s success in six target cities: Boston, Brockton, Lawrence, New Bedford, Springfield and Worcester.

The distribution of grant funds to target cities across the state has enabled communities and organizations to implement programming focused on after-school activities, education, employment, re-entry for returning citizens, law enforcement/community collaboration, and public service outreach projects, among others.

In Massachusetts, PSN projects include:

• Developing and sustaining community/law enforcement partnerships and strengthening their capabilities in targeted communities across the state by maximizing federal resources;
• Collaborating with state and local law enforcement on violent crime and illegal firearm prosecutions;
• Providing training for nearly 4,500 law enforcement personnel and community members on topics such as advancements in technology, empowering neighborhoods on addressing gang prevention; updates on new innovative community programs and partnerships; and officer safety training;
• Supporting community partners and outreach programs to address reentry barriers for returning citizens and empower youth to resist gang recruitment;
• Formulating tools to measure the performance of projects funded with PSN and other federal grants.

“Shootings and other violent crimes cause devastating injuries and death for victims, of course, but they also destabilize the communities in which they occur. That is why this Office continues to prioritize violent crime reduction efforts through the PSN initiative,” said Acting United States Attorney Nathaniel R. Mendell. “This funding, in addition to the continued collaboration with our federal, state and local law enforcement partners, will enable us to develop tailored strategies that target the most violent criminals and make our communities safer.”

PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.

BOSTON – A Dominican national previously residing in Lawrence was sentenced today in connection with two fentanyl distribution conspiracies.

Luis Aybar-Guerrero, 25, was sentenced by U.S. District Court Judge Richard G. Stearns to 42 months in prison and two years of supervised release. He will be subject to deportation proceedings upon completion of his sentence. On July 15, 2021, the defendant pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute 40 grams or more of fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl.

Luis Aybar-Guerrero was indicted in August 2020 along with his brother, Guillermo Aybar-Guerrero, after investigators conducted controlled purchases of fentanyl from Guillermo on June 10 and 17, 2020. On June 25, 2020, investigators set up another controlled purchase, at which time Guillermo was arrested in possession of approximately 30 grams of suspected fentanyl. Guillermo retrieved the fentanyl for each of these transactions from Luis. A search of Luis’ residence resulted in the seizure of an additional 223 grams of acetyl fentanyl (a fentanyl analogue) as well as a scale, baggies and other drug distribution paraphernalia.

On Oct. 27, 2021, Guillermo Aybar-Guerrero was sentenced by U.S. District Court Judge Denise J. Casper to 52 months in prison.

Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Lauren Graber of Mendell’s Narcotics and Money Laundering Unit prosecuted the case. 

BOSTON – A Dominican National residing in Boston was arrested today for allegedly using others’ identities to fraudulently obtain Pandemic Unemployment Assistance (PUA) benefits.

Wilson Radhames Peguero Brea, 52, was charged with one count of wire fraud and one count of aggravated identity theft. Following an initial appearance today before U.S. District Court Magistrate Judge Marianne B. Bowler, Peguero was detained pending a detention hearing scheduled for Dec. 22, 2021.

According to the charging documents, Peguero used the name and Social Security number of a U.S. citizen to apply for and obtain PUA benefits. Peguero also allegedly applied for and received additional PUA benefits using another victim’s identity as well as his own.

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 $250,000 or twice the gross gain or loss, whichever is greater. 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, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.

Acting United States Attorney Nathaniel R. Mendell and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Valuable assistance was provided by the U.S. Department of Labor, Office of Inspector General; U.S. Department of Health and Human Services, Office of Inspector General; U.S. Department of State, Diplomatic Security Service; U.S. Postal Inspection Service; Massachusetts State Police; and U.S. Citizenship and Immigration Services in Boston. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes 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 criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – The owner of a warehousing company for the shipping industry has agreed to plead guilty in connection with his involvement in the college admissions case. 

I-Hsin “Joey” Chen, 67, of Newport Beach, Calif., has agreed to plead guilty to one count of wire fraud and honest services wire fraud. A plea hearing for the defendant has not yet been scheduled by the Court. Chen was previously scheduled for trial on Jan. 13, 2022.

Chen will plead guilty to his role in a scheme to defraud ACT, Inc. by paying William “Rick” Singer $75,000 to bribe Igor Dvorskiy, a corrupt test administrator, to allow Mark Riddell, a corrupt test “proctor,” to secretly correct Chen’s son’s ACT exam answers to obtain a fraudulently inflated score.

Singer, Dvorskiy and Riddell have pleaded guilty for their respective roles in the scheme.

Under the terms of the plea agreement, the defendant has agreed to a sentence, subject to the Court’s approval, of nine weeks in prison, one year of supervised release with 100 hours of community service and a fine of $75,000. 

Chen will be the 38th, and final parent, in the college admissions case to either plead guilty or be convicted by a jury following trial.   

Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.

The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Kristen A. Kearney, Ian J. Stearns and Leslie Wright of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.

The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A California man was indicted yesterday on a charge of distributing and possessing with intent to distribute methamphetamine.

Cameron Graff, 29, of San Diego, Calif., was indicted on one count of distributing and possessing with intent to distribute 50 grams or more of methamphetamine. Graff is currently in state custody on unrelated charges.

According to the charging documents, in December 2019, Graff began communicating with an undercover agent in Massachusetts about purchasing methamphetamine from Graff. In January 2020, Graff allegedly mailed a parcel containing approximately 690 grams of methamphetamine to the undercover agent.

The charge of distribution of and possession with intent to distribute 50 grams or more of methamphetamine provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of $10 million.  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; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. Special assistance in the investigation was provided by the U.S. Postal Inspection Service, San Diego Division and the Drug Enforcement Administration, San Diego Division. Assistant U.S. Attorney James E. Arnold of Mendell’s Narcotics & Money Laundering Unit is prosecuting the case.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

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 – Two Florida men were arrested today in connection with their roles in an alleged insider trading scheme that generated at least $4 million in profits.

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 each of conspiracy to commit securities fraud. The defendants will make an initial appearance in federal court in the Southern District of Florida later today. They will appear in Boston at a later date.

As alleged in the charging document, from at least August 2017 to November 2021, Bortnovsky, a financial services professional for more than 20 years, and Shapiro, an entrepreneur and founder of two privately held companies, 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 a co-conspirator who was a relative of one or more officers or directors of these companies, or of companies involved in proposed acquisitions of the companies. In other instances, Bortnovsky shared MNPI that he had obtained with Shapiro and their co-conspirator. 

The charging statute 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 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 in this matter. 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 document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Saugus woman pleaded guilty today to her role in a bank fraud scheme that fraudulently obtained more than $300,000 from customer accounts.

Emelyn Clough, 24, pleaded guilty to one count of bank fraud conspiracy. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for March 30, 2022. The defendant was charged on March 15, 2021.

This case arose out of an investigation into schemes to withdraw funds, in the form of checks and cash, from customer accounts at several financial institutions. Organizers of the scheme paid individuals to request bank withdrawals from bank customers’ accounts using falsified identification documents in the names of the bank customers. Bank tellers were also recruited to accept the falsified identification documents without scrutiny and facilitate the withdrawals. The fraudulently obtained funds were then negotiated through accounts at other financial institutions that had been opened in the names of fictitious business entities.

Clough opened a bank account in the name of a fictitious business using a counterfeit driver’s license and helped recruit a TD Bank teller to participate in this scheme. Thereafter, between June and November 2017, co-conspirators utilized the bank account Clough opened and the bank teller Clough recruited to fraudulently obtain more than $300,000 from customer accounts. 

The charge of conspiracy to commit bank fraud provides for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of up to $1 million. 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. Attorneys Leslie A. Wright and Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.

BOSTON – The United States Senate has confirmed Rachael S. Rollins as the United States Attorney for the District of Massachusetts. Ms. Rollins is the first Black woman to ever be confirmed as U.S. Attorney in the District. She was nominated by President Joseph R. Biden on July 26, 2021. The District of Massachusetts is one of the oldest United States Attorney’s Offices in the country.

“I am truly humbled by today’s confirmation and deeply honored to have the support and confidence of President Biden, Vice President Harris, Senate Majority Leader Schumer, Senate Judiciary Chair Durbin, and my Senators Elizabeth Warren and Ed Markey. I have dedicated much of my career to public service and as I prepare to assume the role of Massachusetts’s chief federal law enforcement officer, I look forward to continuing to serve this great nation. Leading the U.S. Attorney’s Office is a profound honor, and I pledge to serve with continued zeal and passion for justice,” said Ms. Rollins in response to her confirmation.       

“Being the DA has been the highlight of my professional career. I am profoundly grateful to the people of Suffolk County. They put their faith in me and I have worked hard every day to improve the relationship between law enforcement and the communities most impacted by violence and harm. I am proud that Boston remains one of the only major cities in the United States where violent crime, including homicides, is down. As United States Attorney, I will continue to work with my law enforcement and community partners to ensure this trend continues and expands across all of Massachusetts.”

A Massachusetts native and an attorney for more than two decades, Ms. Rollins has served as Suffolk County District Attorney (DA) since 2019. She was the first woman to ever be elected DA in Suffolk County and the first woman of color to ever hold the position of DA in the Commonwealth of Massachusetts.

Prior to serving as Suffolk County DA, Ms. Rollins was the General Counsel for the Massachusetts Department of Transportation and the Massachusetts Bay Transportation Authority. She also served as Chief Legal Counsel to the Massachusetts Port Authority. From 2007 to 2011, Ms. Rollins was an Assistant U.S. Attorney for the District of Massachusetts serving in both the Civil and Criminal Divisions. Earlier in her career, Ms. Rollins was an attorney at Bingham McCutchen LLP, focusing on matters involving complex civil litigation and criminal defense, and from 1999 to 2002 she was a field attorney for the National Labor Relations Board where she investigated unfair labor practices and upheld workers’ rights. Ms. Rollins began her legal career as a clerk for Associate Judge Frederick L. Brown of the Massachusetts Appeals Court.

Ms. Rollins earned a Juris Doctor from Northeastern University School of Law and a Masters in Law from Georgetown University Law Center. She graduated from the University of Massachusetts Amherst in 1994.

BOSTON – A Michigan pharmacist and two pharmacies agreed to pay $1 million to resolve allegations that they submitted false claims to Medicare for a drug used in rapid reversal of opioid overdoses.

Riad “Ray” Zahr, of Dearborn, Mich. and two specialty pharmacies that Zahr formerly owned and operated have agreed to resolve allegations that they submitted false claims for the drug Evzio. Evzio was a naloxone hydrochloride product used for the rapid reversal of an opioid overdose. Evzio was the highest-priced version of naloxone on the market and insurers frequently required the submission of prior authorization requests before they would approve coverage for Evzio.

The United States contends that, between Aug. 1, 2017 and June 30, 2019, Plymouth Towne Care Pharmacy, Inc. d/b/a People’s Drug Store (People’s Drug Store) and Shaska Pharmacy LLC d/b/a Ray’s Drugs (Ray’s Drugs) submitted false claims for Evzio to Medicare. In particular, the government alleges that People’s Drug Store and Ray’s Drugs submitted false and misleading prior authorization requests for Evzio that contained clinical assertions for which the pharmacies lacked any factual basis. At times, Zahr and the pharmacies initiated Evzio prescriptions based on rudimentary patient lists with only basic biographical details. In the prior authorization requests, Zahr and the pharmacies also included assertions about the comparative effectiveness of Evzio purportedly authored by prescribing physicians but that Zahr and the pharmacies actually wrote. The prescribing physicians did not review, sign, or submit the prior authorizations at issue.

The settlement also resolves allegations that Zahr, People’s Drug Store and Ray’s Drugs dispensed Evzio prescriptions to Medicare beneficiaries at times without collecting or attempting to collect co-payment obligations for Evzio, in violation of the Anti-Kickback Statute.

“Taxpayers pay a huge amount of money for federal health care programs, and they expect that money will be spent honestly and effectively – especially when it comes to expensive therapies,” said Acting United States Attorney Nathaniel R. Mendell. “Our job is to find and stop misconduct like this, which hurts those programs and cheats us all.”

“We expect the submission of truthful and non-misleading documentation by all those involved in the delivery of health care goods or services, including pharmacies that submit claims for pharmaceutical products,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This settlement demonstrates the department’s continuing commitment to preventing fraud in Medicare and other taxpayer-funded health care programs.”

“When healthcare providers put their own financial gain above honest billing of Medicare, they violate the basic trust the public extends to healthcare professionals,” said Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General. “Our agency, working with our law enforcement partners, will continue to root out all forms of waste, fraud and abuse in our federal health care programs.”

“Pharmacies that take shortcuts to increase their profits by submitting false claims for expensive drugs increase medical costs for all of us,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s settlement should deter anyone thinking about abusing our federal health care programs that so many rely on for their health care needs.”

Under the terms of the settlement agreement, Zahr, People’s Drug Store, and Ray’s Drugs will pay the government $1 million. The civil settlement includes the resolution of claims brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties, known as relators, to bring suit on behalf of the government and to share in any recovery. 

Acting U.S. Attorney Mendell; AAG Boynton; HHS OIG SAC Coyne; and FBI SAC Bonavolonta made the announcement today. Assistant U.S. Attorneys David J. Derusha and Abraham R. George of Mendell’s office and Trial Attorney Sarah Arni of the Justice Department’s Civil Division handled the matter.

Riad “Ray” Zahr, a pharmacist in Dearborn, Michigan, along with two specialty pharmacies that Zahr formerly owned and operated, have agreed to pay the United States $1 million to resolve allegations that they submitted false claims for the drug Evzio. Evzio was an injectable form of naloxone hydrochloride indicated for use to reverse opioid overdose. Evzio was the highest-priced version of naloxone on the market, and insurers frequently required the submission of prior authorization requests before they would approve coverage for Evzio.

The United States contended that, between Aug. 1, 2017, and June 30, 2019, Plymouth Towne Care Pharmacy dba People’s Drug Store (People’s Drug Store) and Shaska Pharmacy LLC dba Ray’s Drugs (Ray’s Drugs) submitted false claims for Evzio to Medicare. In particular, the government alleged that People’s Drug Store and Ray’s Drugs submitted false and misleading prior authorization requests for Evzio that contained clinical assertions for which the pharmacies lacked any factual basis. At times, Zahr and the pharmacies initiated Evzio prescriptions based on rudimentary patient lists with only basic biographical details. Zahr and the pharmacies also included assertions in Evzio prior authorization requests purportedly authored by prescribing physicians regarding the comparative effectiveness of Evzio that the pharmacies or Zahr actually authored. The prescribing physicians did not review, sign or submit the prior authorizations at issue. The settlement also resolves allegations that Zahr, People’s Drug Store and Ray’s Drugs dispensed Evzio prescriptions to Medicare beneficiaries at times without collecting or attempting to collect co-payment obligations for Evzio, in violation of the Anti-Kickback Statute.

“We expect the submission of truthful and non-misleading documentation by all those involved in the delivery of health care goods or services, including pharmacies that submit claims for pharmaceutical products,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This settlement demonstrates the department’s continuing commitment to preventing fraud in Medicare and other taxpayer-funded health care programs.”

“Taxpayers pay a huge amount of money for federal health care programs, and they expect that money will be spent honestly and effectively – especially when it comes to expensive therapies,” said Acting U.S. Attorney Nathaniel R. Mendell for the District of Massachusetts. “Our job is to find and stop misconduct like this, which hurts those programs and cheats us all.”

“When health care providers put their own financial gain above honest billing of Medicare, they violate the basic trust the public extends to health care professionals,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS OIG). “Our agency, working with our law enforcement partners, will continue to root out all forms of waste, fraud and abuse in our federal health care programs.”

“Pharmacies that take shortcuts to increase their profits by submitting false claims for expensive drugs increase medical costs for all of us,” said Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Division. “Today's settlement should deter anyone thinking about abusing our federal health care programs that so many rely on for their health care needs.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Rebecca Socol, a former employee of kaléo Inc., the manufacturer of Evzio. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of this resolution, Ms. Socol will receive $200,000 of the settlement amount. The qui tam case is captioned United States ex rel. Socol v. Plymouth Towne Care Pharmacy, Inc., 18-cv010050-RGS (D. Mass.) (under seal). On Nov. 9, the department announced that kaléo agreed to pay $12.7 million to resolve allegations that kaléo caused the submission of false claims for Evzio.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from HHS OIG; the Department of Defense Criminal Investigative Service; the Office of Personal Management, Office of Inspector General; the FBI; and the U.S. Postal Service Office of Inspector General.

The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The matter was handled by Trial Attorney Sarah Arni of the Justice Department’s Civil Division and Assistant U.S. Attorneys David Derusha and Abraham George for the District of Massachusetts.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

BOSTON – A Malden man was sentenced today in connection with submitting fraudulent applications for Pandemic Unemployment Assistance (PUA). The federal PUA program provides unemployment-related benefits to individuals who have been impacted by COVID-19.

Wagner Sozi, 33, was sentenced by U.S. District Judge George A. O’Toole Jr.to 39 months in prison and two years of supervised release. Sozi was also ordered to pay forfeiture and restitution in the approximate amount of $110,000. On May 13, 2021, Sozi pleaded guilty to two counts of wire fraud, one count of aggravated identity theft and one count of making a false claim.

Sozi engaged in a scheme to use stolen identity information to open accounts, make purchases, rent cars and apply for PUA benefits. Sozi obtained this stolen identity information from various sources, including from a Cambridge realty company that collected the personal identifying information of people who sought to rent local apartments. Sozi lived with an individual who worked for the realty company, and various files belonging to the company were found in the apartment. Numerous identity theft victims tied to Sozi had been clients of the realty company, including at least one person in whose name a fraudulent PUA claim was filed.

Sozi, along with a female accomplice, opened store credit accounts at Massachusetts Staples locations under various fake identities and then used these accounts to purchase more than $80,000 in Visa gift cards. Sozi and his co-conspirator submitted fraudulent Staples’ store credit account applications using the personal identifying information of more than 60 victims, which Voltaire processed in exchange for $8,000 in kickbacks. In addition to the use of stolen identity information to open Staples credit accounts, Sozi used such information to purchase a Rolex for more than $15,000, withdraw $5,000 cash and rent a Dodge Charger and a Ford Mustang, both of which he failed to return.

On Oct. 26, 2021, Voltaire pleaded guilty to one count of conspiracy to commit wire fraud and is scheduled to be sentenced on Feb. 28, 2022.

Acting United States Attorney Nathaniel R. Mendell; Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Jonathan Mellone, Special Agent in Charge of the U.S. 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 Commonwealth of Massachusetts, Department of Unemployment Assistance, Program Integrity Unit; the Massachusetts State Police; and the Malden, Medford and Braintree Police Departments. Assistant U.S. Attorney William Abely, Chief of Mendell’s Criminal Division prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.