District of Massachusetts

BOSTON – A Winchester man was sentenced today for robbing and assaulting a federal postal worker and cocaine distribution.

Raymond Acevedo, 29, was sentenced by U.S. District Court Judge William G. Young to five years in prison and four years of supervised release. Acevedo was also ordered to pay a fine of $10,000. On June 28, 2021, Acevedo pleaded guilty to one count of robbing a federal postal worker, one count of assaulting a federal postal worker and one count of possession with intent to distribute cocaine.

On Oct. 24, 2019, a uniformed U.S. postal worker attempted to deliver an Express Mail package from Puerto Rico to an addressee in Dorchester. The postal worker was unable to locate the addressee and was returning to his vehicle when Acevedo approached the postal worker and demanded the package. When the postal worker would not give Acevedo the package, Acevedo violently assaulted the postal worker and took the package. The postal worker used his phone to take pictures of Acevedo, the stolen package and the vehicle Acevedo was driving. Acevedo then attacked the postal worker and took his phone, which the postal worker attempted to retrieve along with the stolen package and another fight ensued. As the postal worker and Acevedo were fighting over the package, police arrived and arrested Acevedo. The postal worker was transferred to a local hospital for the injuries he received during the altercation.

On Oct. 25, 2019, law enforcement officers opened the package pursuant to a federal search warrant and seized approximately 1.390 kilograms of cocaine.

Acting United States Attorney Nathaniel R. Mendell; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Mendell’s Major Crimes Unit prosecuted the case.

BOSTON – A South Yarmouth man was sentenced yesterday in federal court in Boston for fentanyl and heroin offenses.

Dustin Monick, 23, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 70 months in prison and five years of supervised release. On April 26, 2021, Monick pleaded guilty to one count of possession with intent to distribute 400 grams or more of fentanyl and 100 grams or more of heroin and one count of possession with intent to distribute 400 grams or more of fentanyl.

In December 2019, Monick was stopped by police in Yarmouth for multiple traffic violations, at which time police observed a backpack in Monick’s vehicle. After speaking briefly with police, Monick fled the scene in his vehicle, but was stopped shortly thereafter. Police later found the backpack, which contained over 600 grams of heroin and fentanyl, along the road. During his arrest, two keys were found on Monick. One key opened a storage locker used by Monick and the other opened a safe, which contained over two kilos of fentanyl and $100,068 cash.

Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Yarmouth Police Chief Frank Frederickson made the announcement. Assistant U.S. Attorney Nadine Pellegrini of Mendell’s Narcotics & Money Laundering Unit prosecuted the case.

BOSTON – The owner of a commercial and residential paving business in Hanover has been charged and has agreed to plead guilty in connection with an income diversion scheme. 

William E. Dyer, 56, has agreed to plead guilty to one count of tax evasion. A plea hearing has not yet been scheduled by the court.

According to the charging document, Dyer owned and operated Pilgrim Paving. From 2014 through 2018, Dyer allegedly diverted payments from Pilgrim Paving customers by directing customers to write checks to him and then cashing those checks. Dyer failed to report over $1.7 million in diverted receipts and additional business deposits on the tax returns that he filed or that he directed a tax preparer to file on his behalf. As a result of this alleged conduct, Dyer underreported his personal income tax obligations, causing a loss to the Internal Revenue Service of nearly $600,000.

The charge of tax evasion provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney David M. Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.

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

BOSTON – A former leader of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced today on racketeering and drug charges.

Jose Rodriguez, a/k/a “King Stutter,” 34, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 54 months in prison and three years of supervised release. On June 15, 2021, Rodriguez pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine and cocaine base and to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.

The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.

Rodriguez served as Inca, or leader, of the New Bedford Chapter of the Latin Kings. Rodriguez conspired with other members of the Latin Kings to distribute controlled substances such as cocaine and cocaine base in New Bedford through a series of “trap houses” or multi-unit apartment buildings controlled by the Latin Kings. Following the murder of a Latin Kings member in October 2019, and while serving as Inca of the New Bedford Chapter, Rodriguez was recorded during a Latin Kings meeting instructing members to attack rival gang members without seeking his specific approval for the acts of violence.

In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Rodriguez is the 38th defendant to be sentenced in the case.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard 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.

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 Florida man was sentenced today in federal court in Springfield for tax offenses. 

Cory Kizer, 39, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 15 months in prison and two years of supervised release. On May 13, 2021, Kizer pleaded guilty to one count of conspiracy to commit wire fraud and eight counts of theft of public money.

Kizer obtained personal identifying information for the purpose of filing false federal tax returns and obtaining unwarranted tax refunds. The tax returns contained false addresses, wages and salaries, employers, dependents, business and loss information. The false returns generated a total of over $550,000 of unwarranted tax refunds.

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. Assistant U.S. Attorneys Alex J. Grant and Catherine Curley of Mendell’s Springfield Branch Office prosecuted the case. 

BOSTON – A Boston man pleaded guilty today to fraud conspiracy charges in connection with processing fraudulent applications for store credit accounts using stolen identities.

Ricardo Voltaire, 35, pleaded guilty to one count of conspiracy to commit wire fraud. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Feb. 28, 2022. Voltaire was charged on Sept. 28, 2021.

Voltaire was a sales manager at Staples locations in Dedham and Braintree. On at least 60 occasions, Voltaire processed fraudulent Staples’ store credit account applications that were submitted by Wagner Sozi and his co-conspirator – each of which contained stolen personal identifying information of another individual. Voltaire knew that his co-conspirators were not in fact the individuals named on the applications and opened store credit accounts under the stolen identities, which were then used to purchase more than $81,000 in Visa gift cards. Voltaire accepted approximately $8,000 in kickbacks from Sozi and his co-conspirator.

In May 2021, Sozi pleaded guilty to two counts of wire fraud, one count of aggravated identity theft and one count of making a false claim. He is pending sentencing which is scheduled for Oct. 28, 2021.

The charges 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 up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.  

Acting United States Attorney Nathaniel R. Mendell and Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office, made the announcement today. The Braintree Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney William F. Abely II, Chief of Mendell’s Criminal Division, is prosecuting the case.

BOSTON – The former head coach of men and women’s tennis at Georgetown University pleaded guilty today in connection with soliciting and accepting bribes to facilitate the admission of prospective Georgetown applicants and failing to report all of the income from the bribes on his federal income taxes.

Gordon Ernst, 54, of Chevy Chase, Md. and Falmouth, Mass., pleaded guilty to one count of conspiracy to commit federal programs bribery, three counts of federal programs bribery and one count of filing a false tax return. U.S. District Court Judge Indira Talwani scheduled sentencing for March 2, 2022.

As set forth in the charging document, Ernst solicited and received bribe payments from William “Rick” Singer and the families of prospective Georgetown applicants to facilitate their admission to Georgetown as student athletes. Ernst then failed to report all of the income from those bribe payments on his federal income tax returns.

Under the terms of Ernst’s plea agreement, the parties have agreed to a sentence of at least one year and up to four years in prison, two years of supervised release and forfeiture of $3,435,053.

The charge of federal programs bribery provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit federal programs bribery provides for a sentence of up to five years in prison, three years of supervised release a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

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 and Kriss Basil of Mendell’s Criminal Division 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 – Two former employees of a medical practice with locations in Framingham and Whitinsville were sentenced in federal court in Worcester in connection with a federal drug conspiracy involving Adderall.

Rene Ruliera, 54, of Southborough, was sentenced yesterday by U.S. District Court Judge Timothy S. Hillman to two years in prison and three years of supervised release. In August 2019, Ruliera pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute Adderall and four counts of distributing and possessing with intent to distribute Adderall.

Meghan Giacomuzzi, 39, of Whitinsville, was sentenced today by Judge Hillman to one year and one day in prison and three years of supervised release. In February 2019, Giacomuzzi pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute Adderall and six counts of distributing and dispensing Adderall.

Between March 2016 and February 2018, Ruliera and Giacomuzzi conspired with Leslie Caraceni M.D, to distribute Adderall, an amphetamine, for reasons other than for a legitimate medical purpose and not in the usual course of medical practice. Caraceni hired Ruliera and Giacomuzzi to work at her medical practice in Framingham and later in Whitinsville, and enlisted both in a conspiracy to sell and distribute Adderall to individuals who had not been medically examined or given a clinical diagnosis to warrant a prescription. Office visitors met with either Ruliera or Giacomuzzi, discussed their desired prescription, paid for their office visit and left with a signed prescription for Adderall. Office visits lasted just minutes and each such visit cost approximately $200, payable in cash or through a credit card or debit card. Caraceni collected the cash from the office or received funds through deposits to her bank account.

Caraceni provided Ruliera and Giacomuzzi with blank prescription pads and explained how to fill out prescriptions for sale. Electronic communications between Caraceni, Ruliera and Giacomuzzi documented Caraceni’s knowledge of the prescriptions written by Ruliera and Giacomuzzi, the number of office visitors seen in her absence and the profits resulting from their sale of prescriptions to those visitors. Between November 2015 and July 2018, records from the Massachusetts Prescription Monitoring Program show that well over 1,500 prescriptions for Adderall—amounting to over 110,000 pills—were filled in Massachusetts based on Caraceni’s prescriptions. 

On Jan. 15, 2021, Caraceni was sentenced by Judge Hillman to seven years in prison and three years of supervised release after previously pleading guilty to one count of conspiracy to distribute and to possess with intent to distribute Adderall and three counts of distributing and dispensing Adderall.

Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Uxbridge Police Chief Marc Montminy; and Southborough Police Chief Jane Moran made the announcement. Assistant U.S. Attorney Craig Estes of Mendell’s Narcotics and Money Laundering Unit prosecuted both cases.

BOSTON – A U.S. Postal employee pleaded guilty today in connection with stealing mail believed to contain controlled substances. 

Shawn M. Herron, 44, of Whitman, pleaded guilty to one count of conspiracy to possess cocaine with intent to distribute and one count of theft of mail by a postal employee. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Feb. 17, 2022. Herron was indicted in August 2020.

Since September 2005, Herron has been employed with the Postal Service where he has served as Supervisor of Customer Service at the Canton Post Office and more recently as Manager of Customer Services at the Fall River Post Office (FPO).

Herron tracked packages he suspected of containing narcotics and, rather than dealing with them appropriately, opened them and stole the contents. Specifically, Herron profiled priority parcels from Puerto Rico and West Coast states as well as parcels flagged by law enforcement as potentially containing illegal narcotics and then removed them from the mail stream. Herron tracked the suspected parcels through Postal Service databases and monitored their arrival at the FPO. After their arrival Herron located the parcels and brought them to his personal office space, where he stole the narcotics for distribution.

The charge of conspiracy to distribute controlled substances provides for a sentence of up to 20 years in prison, five years of supervised release and a fine of up to $500,000. The charge of theft of mail provides for a sentence of up to five years in prison, three years of supervised release and a $250,000 fine. 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; Matthew M. Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service made the announcement. Assistant U.S. Attorneys Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, and Charles Dell-Anno, of Mendell’s Major Crimes Unit, are prosecuting the case.

BOSTON – A Northborough man was arrested today for allegedly embezzling approximately $370,000 from a non-profit organization in Sturbridge.

Kyriakos Kapiris, a/k/a Rick Kapiris, 35, was indicted on two counts of wire fraud and one count of money laundering. Kapiris was released on conditions following an initial appearance this afternoon before U.S. District Court Magistrate Judge David H. Hennessy.

According to charging documents, from April 2015 to May 2020, Kapiris worked as the Information Technology (IT) manager at the non-profit organization. As part of his responsibilities, the organization provided Kapiris access to two company credit cards to purchase IT equipment and services as needed. Beginning in 2016, Kapiris used the two company credit cards to purportedly purchase IT equipment from two vendor accounts on Square and one account on Amazon. In reality, it is alleged that Kapiris created the three vendor accounts to embezzle the funds and fabricated sales invoices for purportedly purchased equipment to conceal the scheme. Kapiris allegedly used the names of legitimate Massachusetts companies for the two Square accounts and created the Amazon account in the name of a fictitious company, “NetworkingPlus.” 

It is alleged that Kapiris linked the three vendor accounts to several of his own personal accounts at Bank of America into which he transferred the fraudulent proceeds. Kapiris then used the stolen funds for personal expenses including a $19,250 payment to a contractor that Kapiris hired to build a new residence in Northborough.

The charges of wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of money laundering provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and 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. Assistance was provided by the Sturbridge and Northborough Police Departments. Assistant U.S. Attorney Lucy Sun of Mendell’s Worcester Branch Office 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 former bank teller was sentenced yesterday in federal court in Boston for her role in a scheme to fraudulently obtain funds from customer bank accounts.

Valnardia Novas, 25, of Framingham, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to one year of home confinement and two years of supervised release. Novas was also ordered to pay restitution of $341,433 and forfeiture of $27,900. On Dec. 10, 2020, Novas pleaded guilty to one count of bank fraud conspiracy.

This case was the result of a larger investigation into multiple schemes to withdraw funds, in the form of checks and cash, from customer accounts at several financial institutions. The organizers of the scheme paid individuals to go into banks with falsified identification documents in the names of bank customers and request withdrawals from those customers’ accounts. 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. 

Novas was a bank teller at TD Bank and was paid to participate in this scheme. In September and October 2017, co-conspirators instructed Novas to fraudulently withdraw more than $300,000 in the form of bank checks and cash.  

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 prosecuted the case.

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

BOSTON – A Seekonk man pleaded guilty on Tuesday, Oct. 19, 2021 in federal court in Boston to charges of child pornography.

Sean J. Trahan, 44, pleaded guilty to two counts of possession of child pornography and one count of access with intent to view child pornography. U.S. District Court Judge George A. O’Toole scheduled sentencing for Feb. 17, 2022.

This case stemmed from two separate investigations into Trahan’s child pornography activities. An undercover investigation revealed that Trahan used the Dark Web to access child pornography in February 2015. In October 2015, Trahan was arrested and charged after a search of his residence revealed images of child pornography on his personal computer. At the time of his arrest, Trahan stated that he had accessed sites containing child pornography.

Trahan was released on conditions, including cell phone monitoring. On Sept. 8, 2021, he was arrested for violating conditions of his release. Trahan remains in custody.

In October 2021, Trahan was later charged in a superseding information after further investigation connected Trahan with a username that posted child pornography in a Kik messenger group. Another search of Trahan’s residence in September 2021 revealed child pornography on Trahan’s tablet.

The charges of possession of child pornography and accessing child pornography with intent to view each provide 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 $250,000. Due to a prior state conviction for possession of child pornography, Trahan faces a minimum mandatory sentence of 10 years in prison if he is convicted. 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 Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Winnebago (Wis.) Sherriff’s Office and the Seekonk Police Department. Assistant U.S. Attorney James D. Herbert of Mendell’s Criminal Division is prosecuting the case.

The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

BOSTON – A Nigerian national residing in Canton was indicted today by a federal grand jury for his role in a wire and bank fraud conspiracy involving romance scams targeting individuals in the United States.

Mark Arome Okuo, 41, was indicted on one count of conspiracy to commit wire and bank fraud. Okuo was arrested and charged by criminal complaint in March 2021 and has been detained since his arrest.

According to the charging documents, Okuo participated in a conspiracy involving romance scams designed to defraud victims into sending money to accounts he controlled.  Criminals perpetrating romance scams create fictitious profiles on online dating or social media websites, gain the trust of potential victims and then direct those victims to transfer money under false pretenses. To further the conspiracy, Okuo allegedly used fake passports in the names of aliases to open bank accounts in and around Boston to receive the proceeds of the romance scams. Okuo then allegedly executed large cash withdrawals from those accounts, generally structured in amounts less than $10,000, in an effort to evade detection.

The charge of conspiracy to commit wire and bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and 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.  Special assistance was provided by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant U.S. Attorney Ian Stearns of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case. 

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

BOSTON – A Hull man pleaded guilty today in federal court in Boston in connection with submitting fraudulent documentation in order to receive CARES Act small business loans.  

Shane Spierdowis, 31, pleaded guilty to one count of wire fraud. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Feb. 24, 2022. Spierdowis was indicted on March 30, 2021.

Spierdowis used false Social Security numbers and fraudulent documentation to apply for federally funded Small Business Administration (SBA) loans issued in connection with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Spierdowis obtained an SBA Paycheck Protection Program loan of $101,517 in the name of a Limited Liability Company (LLC), the funds for which were wired to a bank in Massachusetts. Spierdowis provided a fraudulent corporate bank statement reflecting a balance exceeding $220,000 but dated before the pertinent bank account was ever opened.

Spierdowis also obtained an SBA Economic Injury Disaster loan (EIDL) in the amount of $89,900 using a separate LLC. With respect to both loans, Spierdowis used Social Security numbers different from his own. He also submitted fraudulent federal tax forms for both LLCs that included his signature, as president of each LLC, and the purported payment of hundreds of thousands of dollars in wages to LLC employees during each quarter in 2019. In reality, however, for part of Q1 2019 and all of Q2 – Q4 2019, Spierdowis was in federal custody after violating his probation arising from a conviction for conspiracy to commit securities fraud. Spierdowis informed the court of his efforts to obtain work in early 2019 without mentioning anything about his supposed presidency of either LLC.

The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.  

Acting United States Attorney Nathaniel R. Mendell and Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office, made the announcement. The Hull Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney William Abely, Chief of Mendell’s Criminal Division, is prosecuting the case.

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

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

BOSTON – The former Chief Financial Officer (CFO) of the Boston Grand Prix pleaded guilty today in federal court in Boston in connection with multiple schemes to defraud equipment and small business financing companies as well as the Small Business Administration (SBA) and the Internal Revenue Service.

John F. Casey, 57, formerly of Ipswich, pleaded guilty to 23 counts of wire fraud, three counts of aggravated identity theft, four counts of money laundering and three counts of filing false tax returns. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Feb. 15, 2022. Casey was indicted in September 2020.

Casey became the CFO of the Boston Grand Prix in January 2015. The Boston Grand Prix organization made payments to or on behalf of Casey totaling approximately $308,292 in 2015 and $601,073 in 2016 which Casey failed to include in the gross income he claimed on his personal tax returns for those years.

Casey owned an ice rink in Peabody from October 2013 until he sold it in June 2016. Between October 2014 and October 2016, Casey obtained over $743,000 in funds from equipment financing companies, purportedly for the purchase of equipment for the ice rink, when in fact he no longer owned the rink for four months during this period. In addition, in August 2016, more than two months after he sold the Peabody rink, Casey obtained over $145,000 in small business loans for the rink business. In order to secure the financing, Casey submitted false documents and information including fake invoices for the equipment, bank records purporting to show deposits into Casey’s accounts related to the Peabody rink, inflated personal and corporate tax returns and personal financial statements falsely claiming ownership and value of various assets. Casey also submitted a fake Deed of Sale containing a forged signature in support of one of his loan applications. Relying on Casey’s false statements, the financing companies provided funding to Casey in amounts and on terms they otherwise would not have made. Most of the funds provided by the victim companies were never repaid.

In addition, between March 2020 and at least May 2021, Casey orchestrated a scheme to fraudulently obtain Economic Injury Disaster Loans and Paycheck Protection Program loans from the SBA and a Massachusetts Sector-Specific Relief Grant – available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act – by submitting false applications for companies he created and controlled and improperly using the fraudulently obtained loan and grant funds for personal expenses. Specifically, Casey submitted at least 14 loan applications to the SBA and intermediary lenders which contained false information concerning, among other things, the gross revenues of the companies during the year prior to the COVID-19 pandemic, the average monthly payroll of the companies and the existence of some of the companies.

In January 2021, while awaiting trial for the financing fraud scheme, Casey submitted an application for a $70,000 pandemic-related relief grant to the Massachusetts Growth Capital Corporation containing false information about the operating expenses of a company that was not in business in 2019 or 2020. Between April 2020 and April 2021, approximately $676,552 in COVID-19 relief funds was deposited into bank accounts controlled by Casey, and he used the vast majority of the funds for personal expenses, including a three-carat diamond ring, a six-month membership to Match.com, private school tuition, residential rent payments, living expenses, payments on personal credit card accounts, restaurant meals, car payments and luxury hotel stays.  

Casey also pleaded guilty to laundering the proceeds of his fraud schemes and to failing to include the income from the Peabody rink fraud scheme on his 2014, 2015 and 2016 personal federal tax returns. 

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft provides for a consecutive sentence of two years in prison, one year supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000 or twice the value of the criminally derived property, whichever is greater. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and 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 Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations, made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Mendell’s Public Corruption & Special Prosecutions 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.

BOSTON – A former bank manager pleaded guilty today in federal court in Boston to falsely inflating taxpayer’s federal income tax refunds and diverting a portion of those refunds to accounts controlled by him and others. 

Christian Zynga, 46, formerly of Everett, pleaded guilty to one count of conspiracy to defraud the United States. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Feb. 17, 2022. Zynga was indicted in October 2020 with co-defendant Boris Shadari who has pleaded not guilty and is awaiting trial.

According to the charging documents, from 2012 to 2018, Zynga and, allegedly, Shadari held Shadari out to be a tax professional, particularly for the Congolese community of Greater Boston. It is alleged that until 2017, they took their customers’ tax information to a legitimate tax professional and provided the tax professional with false information concerning their customers’ dependents, dependent and childcare expenses and business income and losses in order to inflate the customers’ federal income tax refunds. They then allegedly caused the refunds to be split between the customers’ bank accounts and accounts they and their co-conspirators controlled.

From 2017 to 2018, Zynga and, allegedly, Shadari prepared customers’ tax returns themselves while continuing to inflate refunds by adding false information to the returns and diverting a portion of the customers’ refunds to themselves or accounts they or their co-conspirators controlled. It is alleged that the scheme resulted in a tax loss of more than $500,000. Among other things, Zynga, who worked as a bank manager, opened bank accounts in others’ names for the purpose of receiving the fraudulent federal income tax refunds. Zynga also provided Shadari with the names and Social Security numbers of children of an associate who was living abroad at the time so that they could be falsely listed as dependents on returns. 

The charge of conspiracy to defraud the United States provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

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 Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Kristen A. Kearney of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.

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

BOSTON – An alleged member of the Franklin Hill street gang in Boston pleaded guilty today to federal drug charges. 

Timmy Hunt, 30, pleaded guilty to two counts of distribution and possession with intent to distribute cocaine base and one count of distribution and possession with intent to distribute over 28 grams of cocaine base. U.S. District Court Judge Denise J. Casper scheduled sentencing for Feb. 9, 2022. Hunt was indicted in June 2020 along with co-defendant Trevel Brewser.

Hunt and Brewster distributed and possessed with intent to distribute cocaine base in Boston on Feb. 26, 2020 and March 2, 2020 and conspired to distribute and possess with intent to distribute over 28 grams of cocaine base. On Sept. 16, 2021, Brewster was sentenced by Judge Casper to five years in prison and four years of supervised release.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of Federal Bureau of Investigation, Boston Division; Boston Police Acting Commissioner Gregory Long; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; and Brockton Police Chief Emanuel Gomes made the announcement today. Mendell’s Major Crimes Unit is prosecuting 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 Malden man was sentenced yesterday in federal court in Boston for his role in a scheme to fraudulently obtain funds from customer bank accounts.

Lajerran Long, 27, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to nine months in prison and three years of supervised release. Long was also ordered to pay restitution of $357,333 and forfeiture of $5,000. On June 14, 2021, Long pleaded guilty to one count of bank fraud conspiracy.

This case was the result of a larger investigation into multiple schemes to withdraw funds, in the form of checks and cash, from customer accounts at several financial institutions. The organizers of the scheme paid individuals to go into banks with falsified identification documents in the names of bank customers and request withdrawals from those customers’ accounts. 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. 

Long was paid to recruit a teller at Santander Bank to participate in this scheme. In December 2017 and January 2018, co-conspirators utilized this bank teller to fraudulently withdraw more than $800,000. The majority of the fraudulently-obtained funds were subsequently recovered by the bank.

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 prosecuted the case.

BOSTON – A Nevada-based clinical laboratory, MD Spine Solutions LLC, d/b/a MD Labs Inc., and two of its owners and co-founders have agreed to resolve allegations that MD Labs submitted false claims for payment to Medicare, Medicaid, and other federal health care programs.

MD Labs, along with its owners and co-founders, Denis Grizelj and Matthew Rutledge, will pay up to $16 million to settle this matter.

According to the settlement agreement, MD Labs, Grizelj, and Rutledge admit that between 2015 and 2019, MD Labs regularly billed federal health care programs for medically unnecessary urine drug testing (UDT). MD Labs performed and then billed federal health care programs for two types of UDT: presumptive testing, a relatively inexpensive test that quickly provides qualitative results, and confirmatory testing, an expensive test that is designed to confirm quantitatively the results of presumptive UDT. MD Labs performed both types of tests at approximately the same time and then simultaneously submitted the results to health care providers. MD Labs, Grizelj, and Rutledge knew that doctors would not review presumptive UDT results when they already had the more precise confirmatory UDT results. MD Labs, Grizelj, and Rutledge also knew that absent a presumptive UDT result there was often nothing to confirm, and so there was no basis to bill for a confirmatory UDT result. The settlement makes clear that the presumptive UDT results were frequently useless and its confirmatory UDT results baseless. Yet, MD Labs billed federal health care programs for these medically unnecessary lab tests.

“MD Labs, Grizelj, and Rutledge billed Medicare and other federal health care programs for wasteful urine drug testing,” said Acting United States Attorney Nathaniel R. Mendell. “They diverted valuable resources away from federal health care programs for expensive testing that was unnecessary. That kind of behavior will always get our attention.”

“The American people reasonably expect our government to be good stewards of taxpayer funds, including investigating those who try to defraud taxpayer-supported public health programs such as Medicare and Medicaid,” said Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigation. “Today’s settlement shows that we will protect the integrity of such critical programs by thoroughly investigating fraudsters and thus holding them accountable for their schemes.”

“Unethical laboratories who line their pockets by over-billing for useless medical tests not only drain critical funds from Medicare and other federally funded health care programs, but they increase medical costs for all of us,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI and our partners will do everything in our power to hold those who fraudulently bill the government accountable, as demonstrated by today’s settlement.”

“Our office is committed to holding accountable those who bill VA for unnecessary tests and pocket profits meant for veteran care,” said Special Agent in Charge Christopher Algieri, Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “We appreciate the work of the U.S. Attorney’s Office and our other law enforcement partners in bringing this case to a successful resolution.”

Under the terms of the settlement agreement, MD Labs, Grizelj, and Rutledge will pay the government and various states no less than $11.6 million and up to $16 million, depending on MD Labs’ financial circumstances over time. The settlement resolves allegations originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties, known as relators, to bring suit on behalf of the government and to share in any recovery. 

The United States previously resolved related allegations against Nevada Advanced Pain Specialists, which used MD Labs for UDT services, for $1 million in August 2021.

Acting U.S. Attorney Mendell, HHS OIG SAC Coyne, FBI SAC Bonavolonta, and VA SAC Algieri, made the announcement. Assistant U.S. Attorney Abraham R. George, Chief of Mendell’s Affirmative Civil Enforcement Unit and Assistant U.S. Attorney Charles B. Weinograd, also of the Affirmative Civil Enforcement Unit, handled the matter.

BOSTON – A Fitchburg man pleaded guilty on Monday, Oct. 18, 2021 in federal court in Worcester to his role in a cocaine distribution conspiracy.

Angel Cruz, a/k/a “Papo,” 61, pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Feb. 1, 2022. Cruz was indicted in November 2017.   

In the fall of 2016, Cruz conspired with another individual to deliver cash in exchange for cocaine from the San Diego, Calif. area for distribution in Fitchburg. Cruz admitted that he rented a vehicle for the exchange, which was used by his co-conspirator to drive to California to deliver the cash and transport the drugs back to Massachusetts. Law enforcement stopped the co-conspirator when returning to Massachusetts and found the cocaine concealed inside the rented vehicle.

The charge of conspiracy to possess with intent to distribute cocaine provides for a sentence of 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 upon the U.S. Sentencing Guidelines and other statutory factors. 

Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Fitchburg Police Chief Ernest F. Martineau; and Lunenburg Police Chief Thomas Gammel made the announcement. The Drug Enforcement Administration, Detroit Division and the Ohio State Highway Patrol assisted with the investigation. Assistant U.S. Attorneys Michelle L. Dineen Jerrett and Lucy Sun of Mendell’s Worcester Branch Office are prosecuting the case.

BOSTON – A Dominican national pleaded guilty today in federal court in Boston to drug trafficking activities involving fentanyl and oxycodone.

Jose Guerrero, 29, pleaded guilty to two counts of distribution of and possession with intent to distribute fentanyl and oxycodone, three counts of distribution of and possession with intent to distribute 40 grams or more of fentanyl and one count of possession with intent to distribute 400 grams or more of fentanyl. U.S. District Court Judge Indira Talwani scheduled sentencing for Jan. 19, 2022.

Between June and August 2020, Guerrero sold fentanyl and oxycodone powder and pills on five occasions to an undercover law enforcement officer in Lawrence, and was arrested after making the fifth sale. A subsequent search of Guerrero’s residence  resulted in the seizure of an additional 830 grams of fentanyl.

The charges of distribution of and possession with intent to distribute fentanyl and oxycodone provide for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. The charges of distribution of and possession with intent to distribute 40 grams or more of fentanyl provide for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. The charge of possession with intent to distribute 400 grams or more of fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and 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 Office, made the announcement today. Valuable assistance was provided by the Lawrence Police Department. Assistant U.S. Attorney Stephen W. Hassink of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.

BOSTON – Two Springfield men were convicted yesterday by a federal jury in Worcester for their roles in a large-scale drug trafficking organization supplied by sources in Mexico and spanning at least four states.

Isaac Cardona, 34, and Rafael Cardona Sr., 61, were convicted following a nine-day trial of conspiracy to distribute to possess with intent to distribute more than 500 grams of cocaine and one kilogram of heroin. Isaac Cardona was also convicted of conspiracy to commit money laundering. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Jan. 31, 2022.

The Cardonas were indicted in November 2017 as part of a 14-month wiretap investigation into a large-scale drug trafficking organization supplied by sources in Mexico and spanning at least four states.

The Cardonas conspired with co-defendant David Cruz to traffic cocaine and heroin from Mexico, through California, to the Springfield area and into New England. Isaac Cardona owed Cruz money for one kilogram of the cocaine Cruz had distributed to him, and, in order to pay down that debt, the Cardonas and other co-conspirators conspired to import at least one kilogram of heroin (which turned out to be pure fentanyl) from sources in Mexico. In late August 2016, Isaac Cardona traveled by car to San Diego, Calif., with cash to pay for the heroin. Cruz later traveled to San Diego, retrieved the car and the cash, and, on Sept. 8, 2016, used the cash to purchase what he believed to be one kilogram of heroin. Law enforcement in California seized the vehicle and recovered approximately one kilogram of pure fentanyl. 

Cruz previously pleaded guilty to drug and firearms offenses and is scheduled to be sentenced on Dec. 9, 2021.

The charge of conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine provides for a sentence of at least five years and up to 40 years in prison, at least three years of supervised release and a fine of $1 million. The charge of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin provides for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000 or twice the value of the property involved in the money laundering. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Special assistance was provided by the Drug Enforcement Administration’s Carlsbad (Calif.) Resident Office and the Westfield Police Department. Assistant U.S. Attorneys Catherine G. Curley, Steven H. Breslow and Neil L. Desroches of Mendell’s Springfield Office are prosecuting the case.

The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.

BOSTON – A Taunton man was arrested today in connection with making alleged fraudulent Pandemic Unemployment Assistance (PUA) claims and for making false statements in support of a residential mortgage application.

Clark Grant, 38, was charged with one count of wire fraud and one count of false statements on a loan and credit application. Grant will make an initial appearance in Boston this afternoon at 3:30 p.m. before U.S. Magistrate Judge Judith G. Dein.

In March 2020, in response to the global COVID-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which in Massachusetts is administered by the Department of Unemployment Assistance. This program is designed to provide unemployment benefits for individuals who are not eligible for other types of unemployment benefits.

According to charging documents, from approximately May 2020 to September 2021, Grant fraudulently applied for and obtained approximately $67,950 in PUA benefits while at the same time working and collecting a salary from his full-time job. In addition, from May 2021 to July 2021, Grant allegedly made false statements to a mortgage lender in order to fraudulently obtain a residential mortgage in the amount of approximately $410,000.

The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of false statements on a loan and credit application 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; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service; Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Massachusetts Inspector General Glenn A. Cunha made the announcement today. The Taunton Police Department provided valuable assistance. Assistant U.S. Attorneys Dustin Chao and Adam Deitch of Mendell’s Criminal Division are prosecuting the case.

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

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

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

BOSTON – A Milton woman was sentenced today in federal court in Worcester for her role in a multimillion-dollar marijuana delivery service.

Deana Martin, 53, was sentenced by U.S. District Judge Timothy S. Hillman to four years in prison and three years of supervised release. Martin was also ordered to pay restitution of $528,146. On May 4, 2021, Martin pleaded guilty to one count of tax evasion, one count of conspiracy to distribute marijuana, one count of possession with intent to distribute marijuana and three counts of money laundering.

Martin and co-defendant Tatiana Fridkes were indicted in May 2019 in connection with their management of Northern Herb, a marijuana delivery service that operated in Massachusetts from 2015 to 2018. On Sept. 10, 2021, Fridkes was sentenced by Judge Hillman to time served and two years of supervised release after previously pleading guilty to conspiracy to distribute marijuana. Fridkes was also ordered to pay restitution of $82,000.

Martin owned and managed Northern Herb, which operated a website offering marijuana products for sale including raw marijuana, pre-rolled marijuana cigarettes and marijuana edibles. While Northern Herb purported to provide medical marijuana, it did not require a customer to provide proof of a medical marijuana card. Furthermore, Northern Herb delivered marijuana to unattended locations (such as a front door or hallway) where unknown third parties could have accessed it. Northern Herb used locations in Canton, Milton, Foxborough and Hyde Park to store and distribute marijuana, and employed at least 25 workers.

From May 2016 through July 2018, Northern Herb’s revenue exceeded $14 million. Northern Herb did not withhold or pay taxes on its millions of dollars in marijuana sales and did not pay taxes on its profits. Much of the cash collected by Northern Herb from customers was used to pay its suppliers and its workers. In paying cash wages, Northern Herb did not withhold, remit, or pay any payroll or income taxes. Northern Herb did not report worker wages to the IRS via Form 941, nor did it issue W-2s or 1099s to its workers.

Acting United States Attorney Nathaniel R. Mendell; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The United States Postal Inspection Service also provided valuable assistance with this investigation. Assistant U.S. Attorneys William Abely, Chief of Mendell’s Criminal Division, John Mulcahy of Mendell’s Narcotics & Money Laundering Unit and Assistant Chief Kathleen Barry of the Justice Department’s Tax Division prosecuted the case.

BOSTON – A Sudbury man was arrested today on child pornography charges.

Tyson Tu, 49, was indicted on one count of receipt of child pornography and one count of possession of child pornography. Tu will make an initial appearance in federal court in Boston this afternoon.

According to the charging document, from approximately Feb. 20, 2021 through April 13, 2021, Tu received child pornography. Tu also allegedly possessed child pornography on or about April 13, 2021.

The charge of receipt of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of $250,000. 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 $250,000. Sentences are imposed by a federal district court judge based on the United States 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 Sudbury Police Chief Scott Nix made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Mendell’s Major Crimes Unit is prosecuting the case. 

The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.

BOSTON – A Romanian national was sentenced on Tuesday, Oct. 18, 2021 in federal court in Boston in connection with an ATM skimming scheme operating throughout Massachusetts and other states including Connecticut, New Hampshire, New York and South Carolina. 

Nemanja Milosavljevic, 23, was sentenced by U.S. District Court Judge William G. Young to 27 months in prison and one year of supervised release. On March 31, 2021, Milosavljevic pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity (more commonly known as RICO conspiracy), conspiracy to use counterfeit access devices and aggravated identity theft.

Milosavljevic was a member of the Hornea Crew, led by co-conspirators Constantin Denis Hornea and Ludemis Hornea, and engaged in ATM skimming – obtaining debit card numbers and PINs from unsuspecting bank customers, creating counterfeit cards and making unauthorized withdrawals from the victims’ bank accounts. Over a period of 18 months, the Crew installed skimming devices to steal debit card numbers and PINs from unsuspecting ATM customers in Massachusetts, Connecticut, South Carolina, Georgia and other locations within the United States. The stolen information was then used by Milosavljevic and others to clone the victim customers’ debit cards and make unauthorized withdrawals from those victim customers’ bank accounts at ATMs throughout the United States. Members of the Crew transferred money throughout the United States and to Romania and the People’s Republic of China. Some of those transfers were for the purchase of skimming devices and related components from abroad.

In May 2018, Judge Young sentenced Constantin Denis Hornea to 65 months in prison, three years of supervised release and ordered him to pay $242,141 in restitution and a money judgment of $54,260. Also in May 2018, Judge Young sentenced Ludemis Hornea to 42 months in prison, three years of supervised release and ordered him to pay $57,422 in restitution and a money judgment of $11,124.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police, made the announcement. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigations in Boston; U.S. Customs and Border Protection; U.S. Secret Service; U.S. Postal Service; Massachusetts Department of Correction; Connecticut State Police; the Amherst, Billerica, Braintree, Boston, Florence (S.C.); Greenwich (Conn.), Houston (Texas) New York City (N.Y.), Quincy, Saluda (S.C.), Southwick, Waltham, Whately, and Westwood Police Departments; South Carolina Law Enforcement Division; Richland County (S.C.) Sheriff’s Department; and the Solicitor’s Offices of Greenville and Saluda Counties. Assistant U.S. Attorney Timothy E. Moran, Chief of Mendell’s Organized Crime and Gang Unit, prosecuted the case.

BOSTON – A former Inca, or leader, of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) pleaded guilty today to racketeering charges.

Juan Liberato, a/k/a “King Prodigy,” 36, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Jan. 26, 2022.

The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.

Liberato admitted to being the Inca, or leader of the Latin Kings in Massachusetts. In this role, Liberato attended various meetings that were recorded by cooperating witnesses where the business and affairs of the gang were discussed and decisions were made concerning the operations of the gang. In particular, Liberato was recorded in attendance at a series of leadership meetings where crimes being committed by the gang, including drug deals and violence, were discussed.

In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Liberato is the 53rd defendant to plead guilty in the case.

The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. 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; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of Mendell’s Criminal Division is prosecuting the case.

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

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

BOSTON – A Dominican national was sentenced today in federal court in Boston for false statement and Social Security fraud charges.

Juan Baez, 57, who previously resided in Roslindale, was sentenced by U.S. District Court Judge William G. Young to 14 months in prison and three years of supervised release. Baez was also ordered to pay restitution of $18,997. Baez will be subject to deportation proceedings upon completion of his sentence. On June 10, 2021, Baez pleaded guilty to one count of false representation of a Social Security number and one count of making a false statement relating to health care matters.

Baez used the identity of a Puerto Rican citizen to obtain Massachusetts driver’s licenses and identification cards. He also used the identity to apply for and receive MassHealth benefits.  Between Jan. 1, 2008 and Dec. 31, 2019, Baez fraudulently received approximately $18,997 in federally funded MassHealth benefits he was not entitled to by using the victim’s identity.

Acting United States Attorney Nathaniel R. Mendell; John Cremonini, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Philip M. Coyne, Special Agent in Charge or the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit prosecuted the case.

BOSTON – A North Carolina man was sentenced yesterday in connection with a scheme to defraud his former employer, a Massachusetts-based uniform-supply company, by falsifying invoices.

Keith Smedley, 49, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to three years in prison and one year of supervised release. Smedley was also ordered to pay restitution of $1,548,467 and forfeiture of $500,000. On June 8, 2021, Smedley pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud.

Between approximately 1998 and March 2019, Smedley and others defrauded the uniform-supply company by causing the company to pay fake invoices for products that were not actually delivered, and by diverting other products that they re-sold for their own benefit. In addition, Smedley and his co-conspirators created a fake supply company and caused the uniform-supply company to pay more than $1.5 million in fraudulent invoices for purported products that he knew would never be delivered or used. 

Smedley is the second former employee of the uniform-supply company to be sentenced in connection with the conspiracy. Co-conspirator Richard Ritz was sentenced on Sept. 8, 2021 to 21 months in prison and two years of supervised release. Co-conspirator Brian Halpern pleaded guilty in August 2021 and is scheduled to be sentenced on Dec. 16, 2021.

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 Sara Miron Bloom and Ian Stearns of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.

BOSTON – A Melrose man was sentenced today in connection with his role in an unemployment insurance fraud scheme. 

Alan Neal Scott, 68, was sentenced by U.S. District Court Judge Leo T. Sorokin to 87 months in prison and three years of supervised release. On July 1, 2021, Scott pleaded guilty to four counts of mail fraud, one count of wire fraud and five counts of aggravated identity theft.

Over the course of six years, Scott submitted numerous fraudulent unemployment insurance claims with the Massachusetts Department of Unemployment Assistance (DUA). Scott submitted these claims using his own identity as well as the identities of various individuals, including some who were not eligible for unemployment benefits because they were incarcerated at the time and could not have been employed. Moreover, the fraudulent claims all reported prior employment at a non-operational Massachusetts-based business also associated with Scott. As a result of these fraudulent claims, the DUA sent unemployment benefits funds to several addresses connected to Scott and deposited funds into accounts he controlled. Scott also submitted fraudulent pandemic unemployment insurance claims in the names of others.

Acting United States Attorney Nathaniel R. Mendell; Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service; and Jermaine Jack, Acting Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement. The Commonwealth of Massachusetts, Department of Unemployment Assistance, Program Integrity Unit also provided assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case. 

BOSTON – A Lawrence man was sentenced yesterday in connection with a scheme to defraud the U.S. Navy relating to glove liners purchased for use on nuclear submarines.

Adrian Urena, 40, was sentenced by U.S. District Court Judge Richard G. Stearns to one year of probation. On March 24, 2021, Urena pleaded guilty to one count of possessing false papers to defraud the United States and one count of making false statements.

Urena was an employee of a Lawrence company that contracts with the U.S. Navy through the Defense Contract Management Agency. The contractor entered into a contract to provide the Navy with white glove liners for use on nuclear submarines meeting certain specifications, including that the contractor would test the glove liners for heat sensitivity and obtain an associated certificate of testing. To avoid the testing requirement, Urena manufactured counterfeit certificates of testing and compliance, and presented these counterfeit certificates to a Department of Defense contracting officer. When investigators questioned Urena about the counterfeit certificates, Urena falsely claimed that the certificates were not intended to be genuine.

Acting United States Attorney Nathaniel R. Mendell; Michael T. Wiest, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office; and Patrick Hegarty, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office made the announcement. Assistant U.S. Attorney Evan Panich of Mendell’s office prosecuted the case.

BOSTON – A former New Bedford Police Department (NBPD) officer and NBPD Union Treasurer pleaded guilty today to stealing nearly $50,000 in union funds.

Joshua Fernandes, 41, of New Bedford, pleaded guilty to one count of wire fraud. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Feb. 16, 2022. According to the terms of the plea agreement, the government will recommend a sentence of 12-18 months in prison, two years of supervised release, a fine, restitution of $48,630 and forfeiture. Fernandes was charged on July 19, 2021.

Fernandes admitted to abusing his position as Union Treasurer by using nearly $50,000 in union funds to pay for personal expenses including vacations, family outings, and a monthly wireless family phone plan, among other things. Fernandes carried out his scheme by reimbursing his personal credit card accounts with union funds and by using the union’s credit cards to pay directly for non-union expenses.

The charging statute provides a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and 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 Russo, District Director of U.S. Department of Labor, Office of Labor Management Standards, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, is prosecuting the case.

BOSTON – A Florida man pleaded guilty today in federal court in Boston in connection with a scheme to deceive banks and credit card companies into processing more than $150 million in credit and debit card payments on behalf of merchants involved in prohibited and high-risk businesses, including online gaming, debt collection, payday lending and online pharmaceuticals among others. 

Thomas Wells, 74, of Martin County, Fla., pleaded guilty to conspiracy to commit wire fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Feb. 23, 2022. Wells was charged along with three others on Aug. 26, 2021.

Wells was the owner of Priority Payout, an independent sales organization based in Florida, whose clients included merchants engaged in prohibited or high-risk transactions and merchants that had already been terminated from card payment processing networks such as Visa and Mastercard for fraud, chargeback, or other compliance concerns. Wells referred merchant clients of Priority Payout seeking payment processing services to Allied Wallet Inc., a payment processing company that obtained for its clients access to services that enabled them to accept debit and credit card payments over global electronic payment networks run by Visa, Mastercard, American Express and Discover, among others (card brands) and served as an intermediary between its merchant clients and financial institutions that were members of the card brand networks (acquirers).

Wells engaged in a scheme to defraud several acquirers, the card brands and others of money and property by knowingly misrepresenting that his merchant clients were engaged in the sale of low-risk retail goods to obtain debit and credit card payment processing for those clients from banks and credit card companies and fraudulently inducing them to provide payment processing services to these merchant clients. According to the charging documents, Wells and his co-conspirators accomplished this by, among other means, creating shell companies, designing fake websites that purported to sell low-risk retail goods and using industry-standard codes that miscategorized the true nature of the transactions. Through the scheme, Wells admitted that he personally obtained approximately $700,000 in fraudulent payment card processing proceeds. 

The charge of wire fraud conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, forfeiture and restitution. 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; Assistant Attorney General Kenneth A. Polite of the Justice Department’s Criminal Division; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Mendell’s Securities, Financial & Cyber Fraud Unit, and Trial Attorney Randall Warden of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.

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

BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for participating in a money laundering conspiracy that laundered or attempted to launder between $150,000 and $250,000 worth of drug sales proceeds and illegally reentering the United States after being deported.   

Rafael Pascal, 57, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to four years in prison. Pascal will be subject to deportation upon completion of his sentence. On July 12, 2019, Pascal pleaded guilty to illegal reentry of a deported alien and money laundering conspiracy.

In January 2002, Pascal was deported to the Dominican Republic. In May 2012, Pascal was located in Palm Beach County, Fla., after illegally reentering the United States. Pascal subsequently pleaded guilty to illegal reentry and was deported in 2013. At some point thereafter, Pascal again illegally reentered the United States prior to being arrested in May 2018 on state drug charges. A fingerprint match at the time of his arrest identified Pascal as a previously deported alien and he was taken into federal custody and charged in this case.

From approximately March 2017 through at least July 2017, Pascal participated in a conspiracy to launder money obtained from the sale of controlled substances. Pascal obtained cash proceeds from drug sales from various individuals and then delivered the money to individuals who were responsible for laundering the money. On one occasion, Pascal picked up and delivered $59,060 to an undercover agent. Pascal also arranged for drug sales proceeds in New York to be picked up and laundered. Pascal was held responsible for the laundering of more than $200,000 in drug proceeds.

Acting United States Attorney Nathaniel R Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Todd Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police, made the announcement today. The Wakefield, Arlington, Ipswich, Somerville and Boston Police Departments provided valuable assistance in the investigation. Assistant U.S. Attorneys James E. Arnold and Philip C. Cheng of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.

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

BOSTON – A Dominican national previously residing in Lawrence was sentenced yesterday for fentanyl possession.

Esteban Nivar Araujo, 39, was sentenced by U.S. District Court Judge Indira Talwani to two years in prison and two years of supervised release. Nivar Araujo may be subject to deportation proceedings upon completion of his sentence. On May 13, 2021, Nivar Araujo pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl.

In July 2019, a search of Nivar Araujo’s residence resulted in the seizure of over 50 grams of a substance containing fentanyl and drug distribution paraphernalia. The fentanyl was packaged in multiple bags and stored alongside hundreds of grams of a substance likely used to dilute the fentanyl for resale.

This case is part of a coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against approximately 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.

Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Assistance was provided by the Massachusetts State Police and the Andover Police Department. Assistant U.S. Attorney Charles B. Weinograd of Mendell’s Office prosecuted the case.

BOSTON – A Saugus woman was convicted today by a federal jury in Boston in connection with a scheme to defraud her elderly uncle of his life’s savings.

Jayne Carbone, 52, was convicted following a 5-day trial of four counts of wire fraud and four counts of aggravated identity theft. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Feb. 16, 2022. Carbone was indicted in February 2020.

Between approximately January 2017 and September 2018, Carbone stole over $400,000 from her elderly uncle, whose personal finances she managed. She fraudulently withdrew funds from his retirement annuity and transferred funds from his personal checking account to bank accounts held by Carbone. To conceal the scheme, Carbone provided her uncle with falsified statements for his financial accounts reflecting inflated balances.

The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison consecutive to any other sentence imposed, up to one year of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense. 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 Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorneys Christopher J. Markham and James R. Drabick of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.

BOSTON – A Boston man with ties to the Orchard Park housing development in Roxbury was sentenced to more than nine years in federal prison on Friday, Oct. 8, 2021 for drug trafficking and firearm offenses.

Lyndon Scott, 32, was sentenced by U.S. District Court Judge Patti B. Saris to 117 months in prison and three years of supervised release. On May 20, 2021, Scott pleaded guilty to possession with intent to distribute cocaine base, being a felon in possession of a firearm and ammunition and possession of a firearm during and in relation to a drug trafficking offense.  Scott also received an 18-month concurrent sentence for violating his terms of federal supervised release.

In September 2019, investigators conducted a search of Scott’s vehicle and recovered approximately 17 grams of crack cocaine packaged for sale and a Taurus 9-millimeter pistol loaded with 13 rounds of 9-millimeter ammunition from a hidden compartment in the center console of his car. Additional cocaine and drug trafficking paraphernalia were recovered from Scott’s apartment.

Scott was previously convicted on two occasions for unlawful possession of a loaded firearm, making this conviction his third firearm-related offense. At the time of his arrest, Scott was on supervised release for a 2017 federal conviction for cocaine distribution near a housing development.

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; Suffolk County Sheriff Steven W. Tompkins; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorney Christopher Pohl of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.

BOSTON – The former Wake Forest University women’s volleyball coach has entered into a deferred prosecution agreement (DPA) relating to his involvement in the college admission scheme.

William Ferguson, 51, of Winston-Salem, N.C., has entered into a DPA with the U.S. Attorney’s Office, which was accepted by the District Court. If, after a period of two years and payment of a $50,000 fine, Ferguson complies with the DPA, the government will move to dismiss the pending charge.

According to the DPA, Ferguson accepted responsibility for his conduct as outlined in the Statement of Facts filed with the court. According to the Statement of Facts, in or about June 2016, Ferguson was hired to be the head coach of women’s volleyball at Wake Forest. In or about February 2017, Ferguson agreed with William “Rick” Singer to secure admission to Wake Forest for a student by designating the student as a recruit to the women’s volleyball team in exchange for future purported donations that would inure to Ferguson’s personal benefit. The student had previously been placed on the wait list for admission to the university.

On or about March 24, 2017, Ferguson designated the student as a volleyball recruit, but did not disclose to the Wake Forest admissions office that he did so in exchange for future purported donations that would inure to Ferguson’s personal benefit. 

In March 2019, Ferguson was charged and arrested in connection with this case. In September 2020, Ferguson was charged in a second superseding indictment with conspiracy to commit mail and wire fraud and honest services mail and wire fraud.

Case information, including the status of each defendant, is 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 and Kriss Basil 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 unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A former member of the Connecticut Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) pleaded guilty today to racketeering charges.

Esther Ortiz, a/k/a “Queen India,” 50, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Jan. 19, 2022.

The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.

Ortiz admitted to her membership in the Latin Kings and the Latin Kings’ Regional Crown Council. As Regional Crown Council member, Ortiz advised leadership, heard evidence concerning violations of the manifesto and determined punishment for members who violated the rules of the Latin Kings. One such trial, which took place in March 2019, was captured on video. This trial involved complaints against Angel Roldan, a/k/a “King Big A,” the former second-in-command, or Cacique, of the Latin Kings in Massachusetts, who had reportedly robbed fellow gang members of drugs and failed to repay drug debts owed to the leader of the New Bedford Chapter.

In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Ortiz is the 52nd defendant to plead guilty in the case. Roldan pleaded guilty and was sentenced in July 2021 to seven years in prison.

The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. 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; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of Mendell’s Criminal Division is prosecuting the case.

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

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

BOSTON – Two former executives were convicted today by a federal jury in Boston in connection with conspiring to bribe athletic officials to facilitate their children’s admission to the University of Southern California (USC) as purported athletic recruits.

John Wilson, 62, of Lynnfield, Mass., and Gamal Abdelaziz, 64, of Las Vegas, Nev., were convicted of one count of conspiracy to commit mail and wire fraud and honest services mail and wire fraud and one count of conspiracy to commit federal programs bribery. Wilson was also convicted of three counts of wire fraud and honest services wire fraud, two counts of federal programs bribery, and one count of filing a false tax return. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Feb. 16, 2022 for Abdelaziz and Feb. 17, 2022 for Wilson.

In 2013, Wilson agreed to pay William “Rick” Singer $220,000 to facilitate his son’s admission to USC as a purported water polo player. More specifically, in October 2013, Singer sent Wilson a water polo profile for Wilson’s son that included fabricated awards and swim times. After Wilson’s son was accepted to USC, Wilson wired $100,000 to Singer’s sham charity, the Key Worldwide Foundation (KWF), $100,000 to Singer’s company, The Key, and $20,000 directly to Singer. Wilson paid the bribe from a corporate account and deducted it as a business expense. In 2018, Wilson agreed to pay Singer $1.5 million to have his twin daughters admitted to Harvard University and Stanford University as purported sailing recruits.

In 2017, Abdelaziz agreed to pay Singer $300,000 to facilitate the admission of his daughter to USC as a purported basketball recruit, despite the fact that she did not make her high school’s varsity team and did not play basketball at all during her junior and senior years in high school. In a July 2017 email, Singer asked Abdelaziz for an action shot of his daughter playing basketball to be used in an athletic profile for USC. A co-conspirator, Laura Janke, created a phony athletic profile for Abdelaziz’s daughter which included falsified awards and athletic honors. In October 2017, Abdelaziz’s daughter was admitted to USC as a basketball recruit and in March 2018, she was formally accepted and Abdelaziz wired $300,000 to KWF.

Singer and Janke previously pleaded guilty and are awaiting sentencing.

Case information, including the status of each defendant, is 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 maximum sentence of 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit federal programs bribery provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of wire fraud and honest services 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, whichever is greater. The charge of federal programs bribery provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. 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; Joleen 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 Stephen E. Frank, Leslie A. Wright, Kristen A. Kearney and Ian Stearns 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 unless and until proven guilty beyond a reasonable doubt in a court of law.

UPDATE: In May 2023, The First Circuit Court of Appeals vacated the jury conviction of defendant Gamal Abdelaziz and all but one conviction of defendant John Wilson. In June 2023, the government moved to dismiss all criminal charges against defendant Gamal Abdelaziz and four of the five criminal charges against defendant John Wilson.

BOSTON – A former Nantucket Bank employee pleaded guilty today to her role in two fraud conspiracies.

Rushell Harris, 32, of Nantucket, pleaded guilty to two counts of conspiracy to commit wire fraud. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Jan. 27, 2022. Harris was charged on Sept. 16, 2021.

Between approximately June 2014 and November 2018, Harris engaged in two separate wire fraud conspiracies. In the first conspiracy, Harris exploited her position at Nantucket Bank by obtaining personally identifiable information of a customer and surreptitiously taking photographs of the victim’s account information. Harris then shared that information with co-conspirators who attempted to transfer funds out of the customer’s bank account without authorization.

In the second conspiracy, Harris helped perpetuate a fraudulent lottery scheme targeting at least 13 victims. According to the charging documents, victims were contacted by co-conspirators via phone and informed that they won large prizes, and that in order to receive the funds they needed to pre-pay taxes on their winnings. In reality, no such prizes existed. After victims made an initial payment, they were advised that additional advance payments were required for expenses such as insurance, transportation or other international customs’ fees. Harris and her co-conspirators transferred proceeds of the scheme to associates in Jamaica and in the United States.

The charge of conspiracy to commit wire fraud 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. 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 Nantucket Police Department and the Federal Deposit Insurance Corporation. Assistant U.S. Attorney Mackenzie A. Queenin of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.

BOSTON – A Worcester man was indicted by a federal grand jury in connection with possessing a firearm and ammunition as a convicted felon.

Terrence Kenol, 24, was indicted on one count of being a felon in possession of a firearm and ammunition. On Sept. 3, 2021, Kenol was arrested and is currently in state custody. He will make an appearance in federal court in Worcester at a later date.

According to the charging documents, on Sept. 3, 2021, Kenol was found in possession of a firearm and a loaded magazine in his vehicle. At the time of the offense, Kenol was on probation for a prior state conviction for kidnapping and assault and battery. 

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 $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Mendell’s Worcester Branch Office 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 Rhode Island man was sentenced yesterday for conspiring to distribute fentanyl and cocaine.

Daniel Barbosa, 26, of Pawtucket, R.I., was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to one year in prison and three years of supervised release. On May 12, 2021, Barbosa pleaded guilty to conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and cocaine.

The charge arises from Barbosa’s delivery of a substance containing fentanyl in October 2017. Barbosa was charged as part of an investigation into a drug trafficking organization distributing large quantities of fentanyl, cocaine and other controlled substances in the greater Boston area.

Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorneys Corey Steinberg and John Mulcahy of Mendell’s Criminal Division prosecuted the case.

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

BOSTON – A New York man was sentenced yesterday in federal court in Boston for heroin and fentanyl possession and distribution charges.

James De La Cruz, 30, was sentenced by U.S. District Court Judge Richard G. Stearns to nine years in prison and three years of supervised release. On May 7, 2021, De La Cruz pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl and one count of possession with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl.

In September and October 2019, De La Cruz spoke with a cooperating witness several times and met with the cooperating witness to arrange a large drug shipment from New York to the Boston area. On Oct. 21, 2019, De La Cruz and his co-defendant Juan Santos Roque drove from New York to Peabody, Mass. with approximately 10 kilograms of fentanyl and six kilograms of heroin in a hidden compartment in Santos Roque’s vehicle. After meeting with the cooperating witness, law enforcement agents arrested both men.

Santos Roque pleaded guilty in October 2020 and was sentenced on May 12, 2021 to 63 months in prison and two years of supervised release.

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 Massachusetts State Police and the Peabody Police Department. Assistant U.S. Attorney Stephen W. Hassink of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.

BOSTON – A Dracut man was indicted today in federal court in Boston in connection with the armed robbery of three convenience stores in Lowell and Tewksbury on Dec. 24, 2020.

Michael Vangpa, 32, was indicted on three counts of interfering with commerce by robbery and one count of using a firearm in furtherance of a crime of violence. Vangpa was previously charged by criminal complaint on Aug. 12, 2021 and has remained in federal custody since.

According to the charging documents, on Dec. 24, 2020, Vangpa robbed three nearby convenience stores—two in Lowell and one in Tewksbury—within an hour. In each of the robberies, Vangpa allegedly brandished a firearm and demanded money from the store clerks. It is also alleged that Vangpa discharged the firearm during one of the robberies.

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. The charge of discharging a firearm in furtherance of a crime of violence provides for a mandatory sentence of 10 years in prison to be served consecutively to any other sentence imposed and up to life in prison. 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; and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division made the announcement. The Lowell, Tewksbury, Dracut and Nashua (N.H.) Police Departments provided valuable assistance. Assistant U.S. Attorney Charles Dell’Anno 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 Dominican national was sentenced today in federal court in Boston for false representation of a Social Security number and theft of government money. 

Ramon Hiciano, 64, a Dominican national previously residing in Roxbury, was sentenced by U.S. District Court Judge Leo T. Sorokin to 15 months in prison and three years of supervised release. Hiciano was also ordered to pay restitution of $84,610 and will be subject to deportation proceedings upon completion of his sentence.

Hiciano used the identity of a Puerto Rican citizen to apply for and receive federally funded MassHealth benefits, Section 8 housing assistance and Pandemic Unemployment Assistance (PUA). Between January 2016 and August 2020, Hiciano used the victim’s identity to fraudulently receive approximately $58,093 in MassHealth benefits, $20,780 in Section 8 housing assistance benefits and $5,736 in PUA benefits. 

The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The theft of government money charges provide for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Jermaine Jack, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Philip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations; Nikitas Splagounias, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, New York Field Office; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit prosecuted the case.

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

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 Brockton man pleaded guilty today to his role in a wide-ranging drug trafficking conspiracy reaching from Boston to Brockton to Lawrence to Cape Cod.

Djuna Goncalves, 33, pleaded guilty to conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin, 400 grams or more of fentanyl, cocaine, cocaine base, oxycodone and marijuana; possession with intent to distribute 100 grams or more of heroin; possession with intent to distribute fentanyl; possession with intent to distribute 40 grams or more of fentanyl, cocaine, cocaine base, and marijuana; two counts of being a felon in possession of a firearm and ammunition; and two counts of possession of a firearm in furtherance of a drug trafficking offense. Under the terms of the plea agreement the government will recommend a sentence of 308 months in prison. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Feb. 9, 2022.

According to court documents, in the fall of 2018, federal and state law enforcement agents began investigating a violent Brockton drug crew headed by Djuna Goncalves. The investigation revealed that Djuna Goncalves worked with others, including his brothers Cody and Anthony Goncalves, to distribute large quantities of fentanyl, heroin, cocaine, cocaine base and marijuana throughout southeastern Massachusetts from a base of operations in Brockton. The neighborhood surrounding the crew’s Brockton base has been the scene of numerous murders, shootings and other crimes of violence for several years.

During the investigation, large quantities of heroin and fentanyl were seized from Djuna Goncalves, who had previously been convicted of state drug distribution charges and who distributed fentanyl while on pre-trial release for state drug charges. A search of the Brockton base resulted in the seizure of a Glock .45 caliber pistol, a large number of ammunition clips to various types of firearms, accompanying ammunition, fentanyl, cocaine, crack cocaine, marijuana, suboxone strips, a hydraulic press, packaging materials, digital scales, approximately $12,000 in cash and an AK-47 assault rifle:

In all, 17 defendants, including Djuna, Cody and Anthony Goncalves, were indicted as part of a wide-ranging drug trafficking conspiracy reaching from Boston to Brockton to Lawrence to Cape Cod. Of the 17 defendants named in the indictment, nine have been sentenced. Djuna Goncalves is the 15th defendant to plead guilty in the case. On Sept. 12, 2021, Cody Goncalves pleaded guilty to similar charges and is scheduled to be sentenced on Feb. 2, 2022. The remaining defendants are scheduled to plead guilty. Anthony Goncalves is scheduled to plead guilty on Oct. 12, 2021.

The charge of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin, 400 grams or more of fentanyl, cocaine, cocaine base, oxycodone and marijuana provides for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charge of possession with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. The charges of being a felon in possession of a firearm and ammunition each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charges of possession of a firearm in furtherance of a drug trafficking offense provide for a sentence of at least five years and up to life in prison, from and after the sentence imposed on the applicable drug trafficking counts, five 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; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; and Brockton Police Chief Emanuel Gomes made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Alathea E. Porter of Mendell’s Narcotics & Money Laundering Unit are prosecuting the case.

The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.

The detailed 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 North Andover woman was sentenced today in federal court in Boston for performing illegal silicone injections in exchange for money. 

Gladys Araceli Ceron, 73, was sentenced by U.S. District Court Judge Richard G. Stearns to two years in prison and two years of supervised release. The judge reserved judgment on restitution for a later date. On April 2, 2021, Ceron pleaded guilty to five counts of delivery for pay of an adulterated or misbranded medical device received in interstate commerce with the intent to defraud or mislead.

“For 15 years, Ms. Ceron chose to make money by injecting her cosmetics customers with toxic silicone – all the while knowing that by doing so she was exposing them to serious harm, disfiguration and potentially death,” said Acting United States Attorney Nathaniel R. Mendell. “We are committed to protecting the health and safety of the public, and the sentence imposed by the court shows that people who callously put people at great risk of harm will be punished.”

“Injecting silicone oil not approved for human use can result in serious bodily injury or death,” said Jeffrey J. Ebersole, Special Agent in Charge of the U.S. Food & Drug Administration, Office of Criminal Investigations, New York Field Office. “We will continue to investigate and bring to justice those who offer this dangerous product to the public.”

From approximately 2004 to 2019, Ceron, who operated her business in Lawrence, performed illegal bodily injections using “gluteal material” that she obtained from a source in Florida. Lab tests of the material subsequently confirmed that it contained silicone oil – a substance that the U.S. Food and Drug Administration warns can travel through blood vessels and cause a stroke, death or permanent disfigurement.

In 2018, Ceron agreed to perform buttock enhancing and facial injections for an individual. During a recorded meeting on May 24, 2018, Ceron told the individual that she charged $500 for buttock injections and $60 for each wrinkle-filling injection. A search of Ceron’s business in Lawrence the following month resulted in the seizure of several bottles and syringes of a substance that tests revealed to be silicone oil. Numerous uncapped, used syringes were also recovered from the business.

Ceron admitted to performing illegal injections to augment the buttock or fill wrinkles of five victims in exchange for money and misled her victims about her qualifications and the identity and safety of the material she was injecting. According to court documents, the government estimates that hundreds or thousands of individuals may be victims of the illegal injections she performed.

Acting U.S. Attorney Mendell, FDA OCI SAC Ebersole and Justin C. Fielder, Special Agent in Charge of the U.S. Food & Drug Administration, Office of Criminal Investigations, Miami Field Office made the announcement today. Assistant U.S. Attorney Rachel Y. Hemani of Mendell’s Health Care Fraud Unit prosecuted the case.

BOSTON – A Romanian national pleaded guilty today in federal court in Boston to racketeering conspiracy charges relating to an ATM skimming operation that stretched throughout Massachusetts and other states including Connecticut, New York and South Carolina. 

Dragos Nelu Hornea, 26, pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity (more commonly known as RICO conspiracy) and one count of conspiracy to use counterfeit access devices. U.S. Senior District Court Judge William G. Young scheduled sentencing for Feb. 3, 2022. Dragos Hornea was extradited from Germany to the District of Massachusetts in April 2021 after being indicted in May 2017.

Dragos Hornea was a member of the Hornea Crew, led by co-conspirators Constantin Denis Hornea and Ludemis Hornea. Over a period of 18 months, the Crew engaged in an ATM skimming scheme to steal debit card numbers and PINs from unsuspecting bank customers in Massachusetts, Connecticut, South Carolina, Georgia and other locations within the United States. Members of the Crew installed skimming devices in the following locations: Amherst, Bellingham, Billerica, Braintree, Chicopee, Quincy, Southwick, Waltham, Weymouth and Whately, Mass.; Enfield, Conn.; Columbia, Greenville, Greenwood, Mauldin, and Saluda, S.C.; Savannah, Ga.; and Yadkinville, N.C. The stolen information was then used by Hornea and other co-conspirators to clone the victim customers’ debit cards and make unauthorized withdrawals from victim bank accounts at ATMs throughout the United States. In total, the skimming activities resulted in hundreds of thousands of dollars in losses.

Dragos Hornea was indicted with 13 co-defendants in May 2017, along with another co-defendant charged in a superseding indictment. All 15 defendants have pleaded guilty and those sentenced have received sentences ranging from one year and one day to 65 months in prison.

The charge of conspiracy to conduct enterprise affairs through a pattern of racketeering activity provides for a sentence of up to 20 years in prison, three years of supervised release and fine of $250,000. The charge of conspiracy to use counterfeit access devices provides for a sentence of up to five years in prison, three years of supervised release and fine of $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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigations in Boston; U.S. Secret Service; U.S. Postal Service; Massachusetts Department of Correction; U.S. Customs and Border Protection; the Amherst, Billerica, Braintree, Boston, Quincy, Southwick, Waltham, Whately, and Westwood Police Departments in Massachusetts; Greenwich (Conn.), New York City, Houston, Florence and Saluda (S.C.) Police Departments; Connecticut State Police; South Carolina Law Enforcement Division; Richland County (South Carolina) Sheriff’s Department; and the Solicitor’s Offices of Greenville and Saluda Counties. The Justice Department’s Office of International Affairs provided invaluable assistance in securing the arrest and extradition of Dragos Hornea to the United States. Assistant U.S. Attorney Timothy E. Moran, Chief of Mendell’s Organized Crime and Gang Unit, is prosecuting the case.

BOSTON – A Boston man pleaded guilty yesterday in federal court in Boston in connection with a November 2020 bank robbery.

Angel Robles, 36, pleaded guilty to one count of armed bank robbery. U.S. Senior District Court Judge William G. Young scheduled sentencing for Jan. 27, 2022. Robles was indicted on Jan. 14, 2021.

On Nov. 9, 2020, Robles entered a Citizen’s Bank in Concord, gave the teller a note that read, “ROBBERY, ONLY READY TO DIE ON A DEATH WISH,” stole approximately $358 and fled the bank. Robles also admitted to committing three additional robberies. On Aug. 3, 2020, Robles robbed a Metro PCS in Lynn, holding a gun against the clerk’s back before stealing $4,000 from a safe and fleeing the store. On Oct. 17, 2020, Robles robbed a clothing store in the Northgate Shopping Plaza in Revere with another individual, stealing five North Face jackets valued at $1,500. When a clerk attempted to stop Robles he said, “If anyone comes at me I’m going to shoot s*** up.” When the clerk made an additional attempt to stop Robles, he told the clerk “Back up before I stab you.” On Oct. 28, 2020, Robles robbed a Citizen’s Bank inside a Stop & Shop in Lynn, stealing $5,000. Surveillance video from the robbery showed that Robles brandished what appeared to be a handgun.

The charge of bank robbery provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of Federal Bureau of Investigation, Boston Division; Lynn Chief of Police Christopher P. Reddy; Concord Police Chief Joseph F. O’Connor; and Saugus Police Chief Michael Ricciardelli 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.