District of Massachusetts
Press releases recorded for this federal judicial district.
Convicted Felon Sentenced for Federal Firearms OffensesRead the Press Release
BOSTON – A Templeton man was sentenced today in federal court in Worcester for federal firearms offenses.
John Shaw, 32, was sentenced by U.S. District Court Judge Timothy S. Hillman to 21 months in prison and three years of supervised release. In September 2020, Shaw pleaded guilty to one count of being a felon in possession of ammunition and one count of unlawful possession of a firearm not identified by serial number.
During a search at Shaw’s residence on Sept. 24, 2019, an AR-15 short-barreled rifle that did not bear a serial number, over 50 rounds of .22 Long Rifle caliber ammunition, 27 rounds of .357 Sig caliber ammunition, 10 expended brass cartridge cases and one complete round of 30-06 ammunition were seized. Shaw was previously convicted in Winchendon District Court of breaking and entering in the night with intent to commit a felony and assault and battery with a dangerous weapon. As a previously convicted felon, Shaw is prohibited from possessing a firearm and ammunition.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Ashburnham Police Chief Lorring Barrett, Jr.; Worcester Police Chief Steven M. Sargent; and Hopkinton Police Chief Joseph Bennett made the announcement today. Assistant U.S. Attorneys Kristen Noto and Michelle L. Dineen Jerrett of Mendell’s Worcester Branch Office prosecuted the case.
Boston Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
BOSTON – A Boston man who is allegedly a member of the St. James/Marcella gang pleaded guilty today to distributing crack cocaine.
Anthony Jackson, a/k/a “Hollywood,” 30, pleaded guilty to distribution and possession with intent to distribute cocaine base. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 21, 2021. Jackson was indicted in November 2020.
Between Sept. 1, 2020 and Oct. 3, 2020, Jackson distributed crack cocaine to a cooperating witness on five occasions in Cambridge and Boston. Jackson was also found in possession of crack cocaine at the time of his arrest on Oct. 29, 2020. Jackson has prior state convictions for unlawfully carrying a dangerous weapon, carrying a loaded firearm and possession of illegal substances.
The charge of distributing or possessing with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Elianna Nuzum of 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.
Lowell Man Sentenced for Gun TraffickingRead the Press Release
BOSTON - A Lowell man was sentenced on Wednesday, Aug. 11, 2021 for firearms trafficking related to five separate sales, including the sale of an illegal sawed-off shotgun.
Rathsomnang Neth, 24, was sentenced by U.S. District Court Judge Indira Talwani to time served (approximately two days) and three years of supervised release. The government recommended a sentence of 30 months in prison. In January 2019, Neth pleaded guilty to one count of dealing in firearms without a license and two counts of possessing and transferring an unregistered shotgun with a shortened barrel.
From December 2016 to April 2017 in Lowell, Neth sold four handguns and a .20 gauge pump-action shotgun with a barrel that had been sawed-off below 18 inches.
Acting United States Attorney Nathaniel R. Mendell and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boson Field Office, made the announcement. Assistant U.S. Attorney Robert E. Richardson of Mendell’s Major Crimes Unit prosecuted the case.
Florida Man Pleads Guilty to Wire Fraud Conspiracy SchemeRead the Press Release
BOSTON – A Florida man pleaded guilty yesterday in federal court in Boston in connection with a scheme to defraud a Massachusetts-based company by falsifying invoices.
Brian Halpern, 48, pleaded guilty to conspiracy to commit mail and wire fraud, wire fraud and money laundering. U.S. District Judge George A. O’Toole Jr. scheduled sentencing for Dec. 16, 2021. Halpern was charged on May 5, 2021.
Between approximately 1998 and April 2019, Halpern and others defrauded a Massachusetts-based uniform supplier by falsifying invoices for products that were not actually delivered and diverting other products that they re-sold for their own benefit.
The charge of wire fraud and 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, whichever is greater, restitution and forfeiture. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the property involved in the transaction, 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 today. Assistant U.S. Attorneys Sara M. Bloom and Ian J. Sterns of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Dracut Man Arrested for Armed RobberyRead the Press Release
BOSTON – A Dracut man was arrested yesterday and charged in connection with the armed robbery of three convenience stores in Lowell and Tewksbury on Christmas Eve 2020.
Michael Vangpa, 32, was charged with interfering with commerce by robbery and using a firearm in furtherance of a crime of violence. Following an initial appearance today before U.S. District Court Magistrate Judge Donald L. Cabell, Vangpa was detained pending a detention hearing scheduled for August 16, 2021.
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 brandished a firearm and demanded money from the store clerks. He also 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 sentence of up to life in prison and a mandatory consecutive term of imprisonment of 10 years. 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 criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rockport Man Pleads Guilty to Operating Nationwide Scheme to Steal Social Media Accounts and CryptocurrencyRead the Press Release
BOSTON – A Rockport man pleaded guilty today to conducting a scheme to take over victims’ social media accounts and steal hundreds of thousands of dollars in cryptocurrency.
Declan Harrington, 21, pleaded guilty to one count of conspiracy, five counts of wire fraud, one count of computer fraud and abuse and one count of aggravated identity theft. A sentencing date has not yet been scheduled by the Court. Harrington was charged along with co-conspirator, Eric Meiggs, in November 2019.
Harrington, Meiggs, and co-conspirators targeted victims who were believed to have had significant amounts of cryptocurrency and those who had high value or “OG” (slang for “Original Gangster”) social media account names. Using an illegal practice known as “SIM-swapping,” Harrington, Meiggs, and others conspired to hack into and take control of these victims’ online accounts to obtain things of value, including OG social media account names and cryptocurrency.
“SIM swapping” attacks involve convincing a victim’s cell phone carrier to reassign the victim’s cell phone number from the SIM card inside the victim’s cell phone to the SIM card inside a cell phone controlled by the cybercriminals. Cybercriminals then pose as the victim with an online account provider and request that the provider send account password-reset links or an authentication code to the SIM-swapped device now controlled by the cybercriminals. The cybercriminals can then reset the victim’s account log-in credentials and use those credentials to access the victim’s account without authorization, or “hack into” the account.
Harrington, Meiggs, and their co-conspirators targeted at least 10 identified victims around the country and stole (or attempted to steal) more than $530,000 in cryptocurrency from these victims. Meiggs also took control of two victims’ “OG” accounts with social media companies.
Meiggs pleaded guilty on April 28, 2021 and is scheduled to be sentenced on May 24, 2022.
The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $$250,000. 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. The charge of computer fraud and abuse provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. The charge of aggravated identify theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Ramsey E. Covington, Acting Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Seth Kosto, Deputy Chief of Mendell’s Securities, Financial & Cyber Fraud Unit and Senior Trial Attorney Mona Sedky of the Justice Department’s Computer Crime and Intellectual Property Section and are prosecuting the case.
Parent in College Admissions Case Agrees to Plead GuiltyRead the Press Release
BOSTON – The former chief executive of a California-based media company has agreed to plead guilty in connection with her involvement in the college admissions case.
Elisabeth Kimmel, 57, of La Jolla, Calif., will plead guilty to one count of conspiracy to commit mail and wire fraud. According to the terms of the plea agreement, the parties have agreed to a sentence of six weeks in prison and two years of supervised release, with the first year spent in home confinement. Should the Court accept the plea, Kimmel will also be required to pay a $250,000 fine and perform 500 hours of community service. A plea hearing is scheduled for Monday, Aug. 16, 2021.
As set forth in the charging document, Kimmel agreed with William “Rick” Singer and others to pay $275,000 to facilitate her daughter’s admission to Georgetown University by having Georgetown tennis coach Gordon Ernst allegedly allocate a tennis admission slot to her daughter, even though she was not a competitive tennis player and was not actually being recruited to play on the Georgetown tennis team. Kimmel further agreed with Singer and others to pay $250,000 to facilitate her son’s admission to the University of Southern California as a pole vault recruit, even though he was not a pole vaulter.
Kimmel will be the 32nd parent to plead guilty in the case. Ernst has pleaded not guilty and is scheduled to stand trial in November 2021.
The charge of conspiracy to commit mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Case information, including the status of each defendant, are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Ramsey E. Covington, Acting 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 Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Ian J. Stearns, and Stephen E. Frank of Mendell’s Securities, Financial and Cyber Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
MS-13 Member Pleads Guilty to RICO ConspiracyRead the Press Release
BOSTON – A member of the MS-13 gang who was an alleged leader of a local Massachusetts clique of MS-13 pleaded guilty today in federal court in Boston to racketeering conspiracy charges.
Djavier Duggins, a/k/a “Haze,” 32, of Lynn, 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 Mark L. Wolf scheduled sentencing for Dec. 15, 2021.
MS-13, or La Mara Salvatrucha, is a transnational street gang operating in Massachusetts and numerous other states, as well as countries such as El Salvador, Honduras and Guatemala. MS-13 members follow certain core rules and principles, including that members attack and attempt to kill members of rival gangs, and members do not act as informants or cooperate with law enforcement.
MS-13 is organized in Massachusetts and elsewhere in the form of so-called “cliques” or smaller groups that operate under the larger mantle of MS-13. Duggins was the alleged leader of the Sykos Locos Salvatrucha (Sykos) clique of MS-13. Achieving promotion in MS-13 generally requires the commission of a significant act of violence.
In November 2018, Duggins and five other MS-13 Sykos clique members were indicted following an investigation into the body of a teenage boy found in a park in Lynn on Aug. 2, 2018. The injuries to the victim’s body indicated that the victim had been stabbed dozens of times. Duggins, who is the alleged leader of the group, did not participate in that murder, but his five co-defendants did participate. Duggins, however, has a prior history of violence and was previously convicted of attempted murder in state court in 2012.
Duggins is the sixth and final defendant in this case to plead guilty to RICO conspiracy charges. The five other defendants previously pleaded guilty to RICO conspiracy, admitted to their participation in murder and are scheduled to be sentenced with Duggins on Dec. 15, 2021.
Duggins faces a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Essex County District Attorney Jonathan W. Blodgett; Suffolk County District Attorney Rachael Rollins; Acting Boston Police Commissioner Gregory Long; and Lynn Police Chief Christopher Reddy made the announcement.
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.
Lowell Man Indicted on Firearm and Ammunition ChargesRead the Press Release
BOSTON – A Lowell man was indicted yesterday by a federal grand jury in connection with illegal firearm and ammunition possession.
Barndol Suong, 35, was indicted on one count of being a felon in possession of a firearm and ammunition. Suong was previously charged by criminal complaint on June 10, 2021 and has been detained since.
According to the charging documents, a search of Suong’s residence on June 10, 2021 led to the recovery of a .45 caliber Taurus pistol revolver, five .410 gauge, 2.5 inch cartridges stored in a latex glove next to the firearm and 15 additional rounds of the same ammunition. Suong is prohibited from possessing a firearm due to 2008 convictions for unlawful possession of a firearm and assault and battery with a deadly weapon.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Kelly Richardson, Superintendent of the Lowell Police Department made the announcement. Special assistance was provided by the FBI’s Merrimack Valley Transnational Organized Crime Task Force. Assistant U.S. Attorneys Timothy Moran and Fred Wyshak, III of Mendell’s Organized Crime and Gang 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 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.
Brazilian National Pleads Guilty to Armed RobberyRead the Press Release
BOSTON – A Brazilian man, previously residing in Chelsea, pleaded guilty today in connection with the April 21, 2020 armed robbery of Lanzilli’s Grocery in Boston.
Diego Evangelista DaSilva, 33, pleaded guilty to one count of armed robbery. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Nov. 23, 2021. DaSilva was charged in May 2020 and has been detained since.
Between Jan. 4, 2020 and April 20, 2020, a series of armed robberies occurred at commercial establishments in the Boston area, including pharmacies, gas stations, convenience stores and grocery stores. The suspect in each of the robberies appeared to be the same individual based on consistent characteristics recorded on video surveillance and described by witnesses. In many of the robberies, the robber entered the establishment, passed a demand note, made verbal demands for money and displayed what appeared to be a firearm tucked into the waistline of his pants.
On April 21, 2020, at 8:20 p.m., an armed robbery occurred at Lanzilli’s Grocery in Boston. During the robbery, the robber was observed wearing a gray knit cap, a flesh-colored mask and a gray hooded sweatshirt. Video and photo surveillance showed a red garment/jacket under the robber’s gray sweatshirt, the robber exiting the area, going in between two buildings and later emerging wearing a red jacket. The robber then left the area in a cab. The cab company’s records revealed that the robber was dropped off near Washington Park in East Boston.
On April 26, 2020, law enforcement officers surveilled the area of Washington Park and observed an individual, who fit the physical description of the robber, wearing similar clothing worn by the robber during the April 21, 2020, robbery. Law enforcement observed the individual drive away in a car, conducted a motor vehicle stop, determined that the driver – DaSilva – did not possess a driver’s license and detained him. A black semi-automatic BB gun and a gray knit cap were recovered from the car.
DaSilva’s home was searched and personal papers in his name, a red jacket, and various items of clothing and hats were recovered. DaSilva was later interviewed and admitted his involvement in the string of robberies.
The charge of armed robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. DaSilva will also be subject to deportation. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Suffolk County District Attorney Rachael Rollins; Boston Police Acting Commissioner Gregory Long; Everett Police Chief Steven A. Mazzie; Chelsea Police Chief Brian Kyes; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Mendell’s Major Crimes Unit is prosecuting the case.
U.S. Attorney's Office Files Sexual Harassment Lawsuit Against Owner of Massachusetts Sober HomesRead the Press Release
BOSTON – The U.S. Attorney’s Office for the District of Massachusetts and the U.S. Department of Justice’s Civil Rights Division filed a lawsuit today alleging that Peter McCarthy, who operates residential sober homes through his company, Steps to Solutions, Inc., subjected female tenants to sexual harassment and retaliation in violation of the Fair Housing Act.
The lawsuit alleges that since at least 2012 through at least 2019, Peter McCarthy, 49, of Lynn — the registered agent and sole officer of Steps to Solutions, Inc. — sexually harassed female residents of his sober homes by offering to reduce or forgive rent, granting extra house privileges, or waiving security deposits in exchange for engaging in sexual acts; requesting sexually explicit photographs and indicating that he would reduce or waive rent in exchange for the images; making unwanted sexual comments; and retaliating and taking adverse housing actions against residents who reported his conduct. The lawsuit seeks a court order to prevent future discriminatory conduct, monetary damages to compensate victims of McCarthy’s conduct and civil penalties.
“It is disappointing that a landlord who is supposed to be helping vulnerable women beat drug addiction was allegedly sexually harassing them and offering to reduce their rent in exchange for sex,” said Acting United States Attorney Nathaniel R. Mendell. “Thankfully, the Fair Housing Act gives us effective tools to stop such despicable conduct and protect those who are being preyed upon. People who have experienced this kind of sexual harassment might be reluctant to report it, but we need to hear from them. Reporting sexual harassment is essential to stop and prevent sexual harassment.”
“The Fair Housing Act’s promise of non-discrimination applies to everyone,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “At a time when our country is experiencing record numbers of deaths related to drug overdoses, it is particularly disturbing to see sexually harassing conduct targeted at individuals who are in recovery. The Department of Justice will not tolerate landlords who abuse their power and will continue to vigorously pursue allegations of sexual harassment.”
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the Initiative in October 2017, the Justice Department has filed 22 lawsuits alleging sexual harassment in housing.
Individuals who have information about this case can contact the U.S. Attorney’s Office by calling 617-748-3274, by e-mailing [email protected] or by visiting the case webpage.
Acting U.S. Attorney Mendell and AAG Clarke made the announcement today. Assistant U.S. Attorneys Gregory Dorchak and Michelle Leung of Mendell’s Civil Rights Unit, Assistant U.S. Attorney Eve Piemonte of Mendell’s Civil Division, and Deputy Chief R. Tamar Hagler of the Housing Section of the Department of Justice’s Civil Rights Division are handling the matter.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2016 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Malden Man Pleads Guilty to Cocaine and Firearms OffensesRead the Press Release
BOSTON – A Malden man pleaded guilty yesterday to operating a drug trafficking enterprise in which he sold fentanyl, cocaine and cocaine base to an undercover officer on multiple occasions.
Dhamari Jordan, a/k/a/ “DMO,” a/k/a “DMO Crashout,” 20, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute a controlled substance, one count of possession of a firearm in furtherance of a drug trafficking crime and one count of conspiracy to possess firearms in furtherance of a drug trafficking crime. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Dec. 13, 2021. Jordan was arrested and charged on Feb. 25, 2021.
Jordan and other members of his conspiracy were captured on recording selling fentanyl, cocaine and cocaine base to an undercover officer on three occasions in January 2021. During these sales, Jordan was on pretrial release for a pending firearms case in Cambridge District Court from June 2019. A loaded 9mm firearm was recovered in Jordan’s residence at the time of his arrest. During today’s hearing, Jordan also admitted to his participation in a series of shootings targeting rival gang members in November 2019 in Somerville.
The charge of conspiracy to distribute and possess a controlled substance with intent to distribute provides for a sentence of up 40 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $5 million. Based upon the weight of suspected narcotics involved in the conspiracy, the statute provides for a mandatory minimum sentence of five years in prison. The charge of possessing a firearm in furtherance of a drug trafficking conspiracy provides for a sentence of at least five years and up to life in prison to be served consecutively to the sentence imposed for the drug trafficking crime, five years of supervised release and a fine of $250,000. The charge of conspiring to possess a firearm in furtherance of a drug trafficking conspiracy provides for a sentence of up to life in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistance was provided by the Middlesex District Attorney’s Office, Suffolk District Attorney’s Office, Boston Police Department and Malden Police Department. Assistant U.S. Attorneys Philip A. Mallard and Sarah Hoefle of Mendell’s Organized Crime and Gang 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.
Former Lunenburg Woman Sentenced for Stealing Social Security BenefitsRead the Press Release
BOSTON – A former Lunenburg woman was sentenced yesterday in federal court in Worcester to stealing Social Security benefits.
Sue E. Delaney, 68, was sentenced by U.S. District Court Judge Timothy S. Hillman to six months of home confinement and two years of probation. Delaney was also ordered to pay $221,656 in restitution to the Social Security Administration (SSA). On April 12, 2021, Delaney pleaded guilty to one count of conspiracy and one count of theft of public funds.
“Delaney purposefully failed to report the death of her own family member just to continue receiving and pocketing her dead relative’s Social Security benefits,” said Acting United States Attorney Nathaniel R. Mendell. “Her crime diverted benefits meant for people who are actually entitled to them. Our office will use federal charges where appropriate to punish this type of fraud and protect the integrity of the Social Security system.”
“Concealing death information from the Social Security Administration to steal benefits issued to the deceased is a Federal crime that we will continue to pursue,” said Gail S. Ennis, Inspector General for the Social Security Administration. “For over 16 years, this individual withheld essential information to maintain illegal access to more than $221,000. I thank the U.S. Attorney’s Office and Special Assistant U.S. Attorney Karen Burzycki for prosecuting this case.”
In 1999, Delaney’s mother-in-law, who was receiving monthly benefits from Social Security, passed away. Delaney failed to inform the Social Security Administration of the death, and SSA continued to deposit monthly benefits into a bank account held by Delaney’s mother-in-law. From November 1999 through March 2017, Delaney stole approximately $221,656 in Social Security benefits from her late mother-in-law’s account.
Acting U.S. Attorney Mendell and SSA IG Ennis made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit prosecuted the case.
Former Boston Police Auto Repair Technician Pleads Guilty to Wire Fraud ChargesRead the Press Release
BOSTON – A former auto repair technician with the Boston Police Department’s (BPD) Fleet Management Division pleaded guilty yesterday in connection with a scheme to embezzle hundreds of thousands of dollars from the BPD.
Bahram Gharony, 36, of Boston, pleaded guilty to two counts of wire fraud. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Dec. 14, 2021. Gharony was charged on July 30, 2021.
“Mr. Gharony embezzled hundreds of thousands of dollars in auto parts and supplies from the Boston Police Department at the expense of the public’s trust in his honest and hardworking law enforcement colleagues,” said Acting United States Attorney Nathaniel R. Mendell. “Our office remains ready to prosecute people who abuse their positions and violate the public trust for personal gain.”
"While working for the Boston Police Department's fleet management division, Bahram Gharony has admitted he was also working for himself—orchestrating a fraudulent scheme that cost the city’s taxpayers more than a quarter of a million dollars. Mr. Gharony clearly knew what he was doing was wrong because of the steps he took to conceal his criminal conduct, but his divided loyalty got the best of him,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “We’d like to thank the Boston Police Department’s Anti-Corruption Unit for bringing this to our attention and putting a stop to this practice.”
Gharony engaged in a scheme that allegedly defrauded BPD’s Fleet Management Division of over $260,000 in automotive parts, tools and supplies between June 2017 and September 2020. Gharony used his position to order parts and supplies that he purported were for BPD, but were actually converted and sold to others by Gharony. In an effort to conceal the scheme, Gharony submitted fraudulent and altered invoices to BPD for the parts, tools and supplies he falsely claimed were ordered for the fleet. Additionally, Gharony purported that he had lawfully purchased the items through a discount available to BPD when selling the items to others.
The charges of wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorney Neil J. Gallagher Jr. of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
Texas Man Sentenced for Role in Scheme that Imported Steroids from China for Online SaleRead the Press Release
BOSTON – A Texas man was sentenced on Friday, Aug. 6, 2021 in federal court in Boston for his role in a scheme that imported raw steroids from China and selling them over the internet to customers across the United States.
Mark Lopilato, 57, of Sanger, Texas, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 41 months in prison and four years of supervised release. In February 2018, Lopilato pleaded guilty to conspiracy to distribute steroids. In April 2019, he failed to appear for his sentencing, and was subsequently arrested in September 2019. At the time of his arrest, Lopilato was in possession of counterfeit identification in another individual’s name but bearing his photograph.
From January 2016 to September 2016, an undercover agent purchased steroids listed for sale on a website that advertised various types of steroids for sale. The website provided instructions on how to place orders and pay for steroids, and further provided an email address operated by Lopilato.
Customers ordered steroids from Lopilato who forwarded the orders by email to co-conspirators Rhonda Fulton and Michael Fulton, who processed and prepared raw steroids according to the customers’ orders, packaged and mailed them. Lopilato and the Fultons ordered the raw steroids through the internet from China, then paid for and received the raw steroids by mail. Lopilato paid the Fultons for the preparation, packaging and mailing of the steroids to customers; he also paid his brother and co-conspirator, Michael Lopilato, to maintain and operate the website.
In January 2017, the Fultons and Lopilatos were arrested and charged for their roles in the steroid scheme. Searches recovered more than 60,000 dosage units of raw steroids, a tableting machine, steroid packaging and shipping materials, and approximately $20,000 in cash. The website used by Lopilato to advertise the steroids was also seized.
Michael Fulton and Rhonda Fulton pleaded guilty and were sentenced by Judge Wolf to time served, three years and two years of supervised release, respectively, in May 2019.
Michael Thomas Lopilato, 64, pleaded guilty and was sentenced by U.S. District Court Judge Patti B. Saris to one year of probation and was ordered to pay a fine in the amount of $2,000 in August 2018.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; North Reading Police Chief Michael P. Murphy; North Andover Police Chief Charles Gray; and Burlington Police Chief Thomas Browne made the announcement. Assistant U.S. Attorney Katherine Ferguson, Acting Chief of Mendell’s Narcotics and Money Laundering Unit, and Assistant U.S. Attorney Lindsey E. Weinstein, also of Mendell’s Narcotics and Money Laundering Unit, prosecuted the case.
Mashpee Wampanoag Member Sentenced for Role in Heroin Trafficking OrganizationRead the Press Release
BOSTON – A member of the Mashpee Wampanoag tribe was sentenced today in federal court in Boston for his role in a wide-ranging heroin trafficking conspiracy.
Joshua Johnson, 34, was sentenced by U.S. District Court Judge Allison D. Burroughs to time served plus an additional two weeks (for a total of approximately 13 months) in prison and three years of supervised release. On March 11, 2021, Johnson pleaded guilty to conspiracy to distribute heroin.
In May 2019, Johnson and 10 co-defendants were arrested and charged with various drug distribution offenses.
According to court documents, in 2019, law enforcement began investigating a Cape Cod drug trafficking organization, allegedly led by Edwin Otero. It is alleged that Otero and his co-conspirators distributed large quantities of heroin throughout Cape Cod, including Hyannis, Mashpee, Centerville and Osterville as well as Pawtucket, R.I. Interceptions from Otero’s phone identified Johnson as a drug trafficker supplied by Otero. In addition to moving sizeable quantities of heroin, the investigation revealed that members of the Otero crew allegedly shot at a drug customer over an unpaid debt and videotaped themselves beating another man they incorrectly believed had provided information to the police.
Johnson is the second defendant to be sentenced in this case and the fourth to have pleaded guilty. The remaining defendants have pleaded not guilty and are pending trial.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Barnstable Police Chief Matthew K. Sonnabend made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Mendell’s Narcotics and Money Laundering Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Genesis HealthCare Inc. Agrees to Resolve Allegations of Americans with Disabilities Act ViolationsRead the Press Release
BOSTON – The U.S. Attorney’s Offices for the Districts of Massachusetts and Rhode Island and the Department of Health and Human Services (HHS) announced today an agreement with Genesis HealthCare Inc. (Genesis) to resolve allegations that 12 of its skilled nursing facilities located in Rhode Island and Massachusetts denied admission to prospective residents because they were prescribed an FDA-approved medication for Opioid Use Disorder (OUD). This is in violation of the Americans with Disabilities Act (ADA), the Rehabilitation Act and the Patient Protection and Affordable Care Act.
The U.S. Attorney’s Offices for the Districts of Massachusetts and Rhode Island opened the investigation after receiving complaints alleging that individuals were denied admission to the Genesis facilities because they were being treated with buprenorphine or methadone, medications used to treat OUD. Individuals receiving medication to treat OUD are generally considered disabled under federal civil rights laws. The complainants in this case were seeking admission for health issues unrelated to their dependency, but also needed treatment for OUD.
Under the terms of the settlement agreement, these 12 skilled nursing facilities operated by Genesis will, among other things, adopt a non-discrimination policy and provide training on the ADA and OUD to admissions personnel. The company will also pay a civil penalty of $60,000, of which $50,000 will be suspended and forgiven if the designated facilities comply with the terms of the agreement.
“The ADA is the law of the land, and the ADA makes it illegal to discriminate against people with disabilities – including Opioid Use Disorder,” said Acting U.S. Attorney Nathaniel R. Mendell. “All providers must comply with the ADA, and we are happy to vindicate the rights of those in recovery by protecting their fair access to necessary treatment.”
“As Rhode Island and the rest of the country continues to confront an overdose crisis, individuals in recovery should never have to face discriminatory barriers to healthcare,” said Acting United States Attorney for the District of Rhode Island Richard Myrus. “Elimination of these discriminatory barriers is not only a right under federal civil rights laws, it can be a matter of life and death. We appreciate Genesis’s cooperation in modifying its policies for compliance with the ADA, and we encourage other skilled nursing facilities to proactively do the same.”
“Secretary Becerra has made advancing the goal of ending the Opioid Crisis a key priority for HHS, particularly since the COVID-19 pandemic has exacerbated this deadly crisis. This agreement and the steps that Genesis is taking across its facilities advances this important goal by ensuring civil rights laws protect healthcare access for people who are in treatment for Opioid Use Disorder,” said HHS Acting Director of the Office of Civil Rights Dr. Robinsue Frohboese.
In coordination with the U.S. Attorney’s Offices, HHS participated in the investigation into these allegations that these facilities. Genesis is the fourth skilled nursing facility that the U.S. Attorney’s Office for the District of Massachusetts has settled with for denying admission to patients receiving OUD treatment, in violation of the ADA.
Acting U.S. Attorney Mendell of the District of Massachusetts, Acting U.S. Attorney Myrus of the District of Rhode Island, and HHS Acting Director of the OCR Dr. Frohboese made the announcement today. Assistant U.S. Attorneys Sara Bloom and Gregory Dorchak of the District of Massachusetts, Amy Romero of the District of Rhode Island and Supervisory Equal Opportunity Specialist Erin Walker of HHS handled the matter.
The U.S. Attorney’s Offices are committed to investigating alleged violations of the Americans with Disabilities Act. Those interested in learning more about the Americans with Disabilities Act may access www.ada.gov or call the Department of Justice’s toll-free information line at 800-514-0301 or 800-514-0383 (TTY).
Four Individuals Charged with Long-Running Global Pump-and-Dump SchemeRead the Press Release
BOSTON – Three Canadian nationals and one former California attorney, who is believed to be residing in Mexico, have been charged in connection with a long-running international securities fraud scheme in which they allegedly sold millions of shares in multiple microcap—or “penny”—stock companies during pump-and-dump schemes, generating at least tens of millions of dollars in illicit proceeds.
Frederick Sharp, 69, of British Columbia; Luis Carrillo, 47, previously of California; Mike Veldhuis, 41, of British Columbia; and Courtney Kelln, 41, of British Columbia, were each charged in a criminal complaint with one count of conspiracy to commit securities fraud and one count of securities fraud.
“My office uses securities laws and regulations to preserve market integrity, in other words: to protect investors from getting ripped off by crooks,” said Acting United States Attorney Nathaniel R. Mendell. “Investigating and prosecuting people who illegally manipulate our markets protects all investors, particularly when the illegal activity is sophisticated and done on a large scale.”
“Fred Sharp and his co-conspirators are accused of executing a sophisticated, global con that allegedly bilked unsuspecting investors out of tens of millions of dollars. Investor confidence is essential to keeping our financial markets afloat and actions like the ones these individuals are charged with today chip away at the faith investors place in the process,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI and our partners take securities fraud very seriously and we will do everything we can to hold accountable those who steal from American investors. We urge the public to use caution when researching investment opportunities and to contact us immediately if they become a victim of financial fraud.”
According to the charging documents, a pump-and-dump typically involves an effort to artificially inflate the stock price or trading volume of a publicly traded company (the “pump”) so that individuals who control a substantial portion of the company’s float can sell their shares at artificially high prices, or in a more liquid market, to other investors (the “dump”).
The defendants allegedly engaged in a lucrative securities fraud scheme dating back to no later than 2014 involving the use of a sophisticated platform provided by Sharp to conceal Carrillo’s and Veldhuis’s respective control of millions of shares of multiple microcap companies. Carrillo and Veldhuis allegedly used Sharp’s platform to hide their large penny stock holdings in nominee entities in tranches of less than five percent of the issuers’ total outstanding shares in order to evade certain securities disclosure requirements and brokers’ compliance protocols. Kelln, who worked for Sharp, allegedly facilitated the breakdown and transfer of Carrillo’s and Veldhuis’s shares to Sharp’s nominee entities in blocks of less than five percent, as well as the shares’ subsequent deposit with a Swiss asset management firm to facilitate their sale to unsuspecting investors. It is alleged that those sales were directed by Carrillo and Veldhuis, respectively, and were timed alongside multifaceted promotional campaigns, to include “boiler rooms” involving cold calls to unsuspecting U.S. investors in Massachusetts, and elsewhere, touting the stocks and soliciting purchases.
It is further alleged that, to conceal their scheme, the defendants used codenames to refer to one another, as well as various encrypted communications platforms. One of those platforms was a closed communication network on dedicated BlackBerry devices provided by Sharp that the defendants referred to as “xphones.” Sharp also allegedly maintained an offshore accounting system that the defendants referred to as “Q” that was used to track the scheme’s stock sales and the remittance of illicit proceeds.
Sharp’s Q accounting system tracked over $140 million in stock sales through a Swiss asset management firm between 2014 and 2018, involving over 70 issuers. The charging documents specifically identify four such issuers whose shares were sold during pump-and-dumps as part of the scheme:
- Vitality BioPharma, Inc. (ticker VBIO), millions of shares of which were sold between November 2016 and September 2018 generating proceeds of approximately $16.8 million;
- OneLife Technologies Corp. (ticker OLMM), millions of shares of which were sold between November 2017 and October 2018, generating proceeds of approximately $5.2 million;
- Garmatex Holdings, Ltd. (ticker GRMX), millions of shares of which were sold between March and May 2017, generating proceeds of approximately $5 million; and
- PureSnax International, Inc. (ticker PSNX), millions of shares of which were sold between November 2015 and September 2016 generating proceeds of approximately $1.4 million dollars.
The charge of conspiracy to commit securities fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of securities fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell and FBI Boston SAC Bonavolonta made the announcement today. The Boston regional office of the U.S. Securities and Exchange Commission provided assistance with the investigation. Assistant U.S. Attorney James R. Drabick of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Charged with Firearm and Ammunition OffensesRead the Press Release
BOSTON – A Boston man was arrested and charged on Friday, Aug. 6, 2021 in connection with illegal possession of a firearm and ammunition.
Jammy Alphonse, 27, was charged with one count of being a felon in possession of a firearm and ammunition. Following an initial appearance before U.S. Magistrate Judge Jennifer C. Boal, Alphonse was detained pending a probable cause and detention hearing scheduled for Aug. 12, 2021.
According to the charging documents, on July 26, 2021, law enforcement responded to a report of shots fired in the area of Cherry Street and Harvard Street in Cambridge and observed a vehicle fleeing the scene. Shortly thereafter, law enforcement located the vehicle crashed and abandoned on I-93. Through its investigation, law enforcement connected the vehicle to Alphonse and recovered video surveillance showing Alphonse in the area where the vehicle was abandoned. A search of Alphonse’s residence recovered keys consistent with the make and model of the vehicle and a loaded Glock Model 43x 9mm firearm. Alphonse is prohibited from possessing a firearm and ammunition due to a previous felony conviction in February 2020 for credit card fraud.
The charge of belong a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district judge based 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; Boston Police Acting Commissioner Gregory Long; Cambridge Police Commissioner Branville Bard; and Nikitas Splagounias, Acting Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations, made the announcement. Assistant U.S. Attorney J. Mackenzie Duane of 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.
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.
West Roxbury Woman Pleads Guilty to Wire FraudRead the Press Release
BOSTON – A West Roxbury woman pleaded guilty yesterday in federal court in Boston in connection with a scheme involving inferior merchandise refunds.
Tamara Khatuntseva, 64, pleaded guilty to wire fraud before U.S. Senior District Court Judge Douglas P. Woodlock who scheduled sentencing for Dec. 6, 2021. Khatuntseva was charged on July 20, 2021.
In December 2018, law enforcement initiated an investigation into multiple individuals who were suspected of engaging in activities to defraud runway stores across Massachusetts. From December 2018 through approximately August 2020, Khatuntseva engaged in a scheme to defraud a store through refunds of inferior merchandise including high end and expensive jewelry, clothing, purses, handbags, luggage and shoes. Specifically, Khatuntseva admitted to returning merchandise purportedly purchased from the store, but that was actually not purchased from the store and was of inferior quality, for a full refund and then selling the legitimate merchandise on the internet. For example, Khatuntseva was captured on video surveillance purchasing a pink Gucci scarf for $399, which was then listed for sale on an eBay site associated with Khatuntseva. Several days later, video surveillance showed Khatuntseva returning a different scarf – with the same bar code – and receiving a full refund. The company’s loss as a result of Khatuntseva participation in this scheme is estimated to be between $40,000 and $150,000.
The charge of wire fraud provides a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000, 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Laura J. Kaplan of Mendell’s Organized Crime and Gang Unit is prosecuting the case.
Norwood Woman Indicted for Stealing Government BenefitsRead the Press Release
BOSTON – A Norwood woman was arrested today in connection with fraudulently receiving federal workers’ compensation benefits and disability benefits from the Social Security Administration (SSA).
Karen Nolan, 64, was indicted on two counts of theft of public funds and two counts of making false statements. Nolan will make an initial appearance this afternoon before U.S. District Court Magistrate Judge Jennifer Boal.
According to the charging document, from approximately November 2017 through August 2021, Nolan repeatedly stole federal workers’ compensation benefits, as well as Social Security disability benefits from approximately July 2019 through August 2021. It is alleged that in April 2019, Nolan falsely reported to the SSA that she had not worked since 2017 due to a medical disability but was actively employed at a dermatology practice at the time. It is further alleged that Nolan made similar false statements to the Department of Labor, Office of Workers’ Compensation Programs in May 2021.
The charges of theft of public funds each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of making a false statement each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Christopher Algieri, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Jermaine Jack, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Kate Mulligan, Chief of Investigations, Insurance Fraud Bureau of Massachusetts, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lynn Man Pleads Guilty to Conspiring to Distribute Methamphetamine and Firearms OffensesRead the Press Release
BOSTON – A Lynn man pleaded guilty yesterday in federal court in Boston to conspiring to distribute methamphetamine and possessing firearms.
David Oth, a/k/a “Baby Bouncer,” a/k/a “BB,” 32, pleaded guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine and possession of firearms in furtherance of a drug trafficking crime. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 9, 2021. Oth was charged by criminal complaint on Feb. 24, 2021.
Oth was a member of the Tiny Rascals Gangsters, a street gang with a presence in the area north of Boston. Oth admitted that he and other gang members conspired to distribute methamphetamine by transporting it to Maine, where it would yield a higher resale value. A search of Oth’s residence resulted in the seizure of approximately three pounds of pure methamphetamine and two firearms.
The charge of conspiracy to distribute and possess a controlled substance with intent to distribute provides for a sentence of up to life years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. Based upon the weight of suspected narcotics involved in the conspiracy, the statute provides for a mandatory minimum sentence of 10 years. The charge of possessing a firearm in furtherance of a drug trafficking conspiracy provides for a sentence of at least five years and up to life in prison, to be served consecutively to the sentence imposed for the drug trafficking crime, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Lynn Acting Police Chief Len Desmarais made the announcement. Assistance was provided by the U.S. Attorney’s Office for the District of Maine; Maine Drug Enforcement Agency; Essex County, Middlesex County and Suffolk County District Attorney’s Offices; Essex County and the Hancock County (Maine) Sheriff’s Departments; and the Malden, Salem, Bangor (Maine), Portland (Maine) and Westbrook (Maine) Police Departments. Assistant U.S. Attorneys Philip A. Mallard and Sarah Hoefle of Mendell’s Organized Crime and Gang Unit 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.
Former Newton Scientist Agrees to Pay $215,000 to Resolve Allegations of False Statements in Grant ApplicationRead the Press Release
BOSTON – A former Newton scientist sponsored by Massachusetts General Hospital (MGH) has agreed to resolve allegations that he submitted false statements on a grant application to the National Institutes of Health (NIH).
Sam W. Lee, PhD, 67, of Bellevue, Wash., has agreed to pay $215,000 to resolve allegations that he submitted false claims for payment in a grant application to the NIH. MGH, the sponsor institution for the NIH grant, disclosed to the United States that Dr. Lee, the Principal Investigator (PI), submitted the grant application to NIH containing allegedly inauthentic data. MGH separately repaid NIH the full amount of funds it drew from the grant.
“The NIH grant application process relies on scientific integrity, accuracy and honesty from individual principal investigators, but Dr. Lee supplied falsified results, inauthentic data and false statements instead,” said Acting United States Attorney Nathaniel R. Mendell. “Defrauding the NIH wastes taxpayer money, limits the availability of funding for other research and undermines the central purpose of scientific inquiry. We commend MGH for disclosing the alleged false statements, for repaying funds and for taking meaningful steps to prevent future recurrences.”
“The National Institutes of Health (NIH) seeks to preserve and enhance the well-being of our communities by spending $35 billion in taxpayer money each year on medical research; in Massachusetts, over $3 billion is spent annually,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “Dr. Lee’s lack of truthfulness defied NIH’s grant application process that is meant to protect research dollars. OIG, with our law enforcement partners, spares no resources to ensure that funding for life saving research is appropriately spent. People who suspect grant fraud are encouraged to report it by calling 1-800-HHS-TIPS.”
The United States contends that Dr. Lee knowingly included inauthentic data in his grant application to NIH. Pursuant to NIH policy, PIs are required to provide a signed assurance when submitting a grant application to the NIH that certifies the truth, completeness and accuracy of the information in the application. Dr. Lee signed the PI assurance for the grant application and confirmed that he had reviewed and approved the application. A fellow in Dr. Lee’s laboratory conducted the underlying experiments for certain figures included in the grant application, but the fellow no longer worked for Dr. Lee at the time that he submitted the application. The United States contends that Dr. Lee altered the experiment descriptions in two of the figures, falsifying the results of the experiments, and that Dr. Lee falsified a third figure by horizontally flipping the image and thus mislabeling the results in the application.
Acting U.S. Attorney Mendell and HHS-OIG SAC Coyne made the announcement today. Assistant U.S. Attorney Jessica J. Weber of Mendell’s Affirmative Civil Enforcement Unit handled the matter.
Boston Man Charged with Heroin DistributionRead the Press Release
BOSTON – A Boston man was arrested yesterday and charged with distribution of heroin.
Anthony Howard, 34, was charged with one count of possession with intent to distribute and distribution of heroin. Following an initial appearance before U.S. Magistrate Judge Jennifer C. Boal, Howard was detained pending a probable cause and detention hearing scheduled for Aug. 11, 2021.
According to the charging document, Howard allegedly sold over 30 grams of heroin to a cooperating witness on July 20, 2021.
Howard is currently on pre-trial release for a 2014 indictment charging murder, armed assault to murder, and illegal firearm possession, amongst other charges currently pending in Suffolk Superior Court.
The charge of possession with intent to distribute a controlled substance provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorney John Dawley of Mendell’s Organized Crime and Gang 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.
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.
Worcester Man Pleads Guilty to Wire Fraud and Tax ChargesRead the Press Release
BOSTON – A Worcester man pleaded guilty today to federal tax and fraud charges arising from his role overseeing various Worcester-based employment agencies.
Tam Vuong, 46, pleaded guilty to 14 counts of wire fraud and four counts of failing to pay taxes. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Dec. 1, 2021. Vuong was indicted in August 2019.
Vuong oversaw Prime Labor LLC and UT Services, Inc., which were employment agencies based in Worcester. Each agency paid a few employees by check but paid most employees in cash. Each agency failed to report or pay taxes on the wages paid in cash, which Vuong fraudulently concealed in connection with tax filings and insurance audits. Vuong concealed millions of dollars in cash wages that were paid to Prime Labor workers and additional cash wages paid by UT Services. Between 2012 and 2017, more than $30 million in Prime Labor client company checks were cashed at a check-cashing business in Worcester; Prime Labor paid millions of these dollars in cash wages and then failed to report these wages to the IRS or to its insurer.
In addition, while in his role overseeing and controlling UT Services, Vuong falsely told UT Services’ insurance carrier that the company had only one employee and an annual payroll of only $50,000, when, in actuality, UT Services had dozens of employees and a significantly higher payroll. UT Services disseminated forged certificates of insurance to several clients and failed to inform clients when its workers’ compensation policy was cancelled.
Vuong shifted operations from Prime Labor to UT Services after federal search warrants were executed in November 2017. Vuong took steps to hide his role with both Prime Labor and UT Services.
In January 2021, Julio Lopez of Los Angeles, Calif., a former employee of Prime Labor and UT Services, pleaded guilty to wire fraud and tax charges and is scheduled to be sentenced on Sept. 29, 2021. In February 2021, Linda Le of Shrewsbury, a former employee of UT Services, pleaded guilty to perjury for giving false testimony before a federal grand jury and was sentenced in May 2021 to two years of probation.
The charges of wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of failing to pay taxes each provide for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $10,000. 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; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorneys Bill Abely, Chief of Mendell’s Criminal Division, Ian Stearns and Adam Deitch, of Mendell’s Criminal Division, are prosecuting the case.
Postal Worker Pleads Guilty to Mail TheftRead the Press Release
BOSTON – A former U.S. Postal Service mail carrier pleaded guilty today in federal court in Boston to stealing mail containing gift cards.
Brian Thibodeau, 48, pleaded guilty to one count of theft of mail by an employee of the U.S. Postal Service. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 13, 2021. Thibodeau was indicted on Feb. 10, 2021.
Beginning in 2001, Thibodeau worked as a letter carrier in the Saugus Post Office. In 2020, Thibodeau stole customers’ gift cards sent in the mail and spent them for his personal use. Thibodeau admitted to stealing approximately $2,000 worth of gift cards from postal customers on his route.
The charging statute 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; 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 and Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office made the announcement today. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, is prosecuting the case.
Newton Landscaping Company Owner Sentenced for Tax EvasionRead the Press Release
BOSTON – The owner of a Newton landscaping company was sentenced yesterday in connection with a scheme to underreport income on his business and personal tax returns.
Kevin Newman, 70, of Auburndale, the owner of Kevin Newman Landscape and Tree Inc., was sentenced by U.S. District Court Judge Patti B. Saris to 10 months in community confinement, two years of supervised release and 100 hours of community service. Newman was also ordered to pay a fine in the amount of $10,000 and restitution of $572,843 to the Internal Revenue Service. On April 9, 2021, Newman pleaded guilty to one count of tax evasion.
For tax years 2015 through 2019, Newman underreported income and inflated expenses on his personal tax returns, and those his company filed, resulting in a tax loss of more than $671,812.
Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Former Springfield Man Pleads Guilty to Charges Related to Sham MarriageRead the Press Release
BOSTON – A former Springfield man pleaded guilty yesterday in connection with entering into a sham marriage in order to obtain immigration benefits for another individual.
Phu Thanh Huynh, 33, pleaded guilty to one count each of conspiracy, immigration fraud and making false statements. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 22, 2021. Huynh was indicted in October 2019.
On or about Sept. 28, 2013, Huynh married a Vietnamese national, referred to as Jane Doe, solely for the purpose of obtaining immigration benefits for Doe. Huynh and Doe never lived together after getting married. In or about late 2013 or early 2014, a co-conspirator paid Huynh $20,000 in cash for engaging in the sham marriage. On approximately Nov. 7, 2013, Huynh filed a false petition with the U.S. Citizenship and Immigration Services (USCIS) to classify Doe as his spouse for immigration purposes. On approximately May 3, 2017, Huynh made various false statements to a USCIS officer concerning his marriage to Doe, including that they spoke to each other almost every day.
The charges of conspiracy and making false statements each provide for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of immigration fraud provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Jonathan Davidson, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office made the announcement. Assistant U.S. Attorney Steven H. Breslow of Mendell’s Springfield Branch Office is prosecuting the case.
Former Member of Boston Latin Kings Chapter Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – A former leader of the Boston Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) pleaded guilty today to racketeering charges.
Angel Calderon, a/k/a “King Bam,” 29, 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 Nov. 10, 2021.
During the investigation, Calderon was identified as the Inca, or leader, of the Morton Street Bricks (MSB) Chapter of the Latin Kings. Named for the Morton Street housing project in Boston, the MSB Chapter included approximately half-a-dozen members. The MSB Chapter, in turn, reported to the Massachusetts State Leadership of the Latin Kings, providing information, structure, funds and other resources to further the Latin Kings goals and directives in the state. Additionally, Calderon conspired with members of the Latin Kings regarding the commission of criminal acts and discussed efforts to murder a rival gang member using poisoned narcotics, also known as a hotshot, in 2019.
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.
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. Calderon is the 48th 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. Attorneys Philip A. Mallard and Lauren A. Graber of Mendell’s Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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.
Former Worcester Housing Official Convicted of Fraud ChargesRead the Press Release
BOSTON – A former employee of the City of Worcester’s Housing Development Office and Executive Office of Economic Development was convicted by a federal jury yesterday in connection with a $2.3 million fraud scheme relating to the redevelopment of a multi-family property in Worcester.
Jacklyn M. Sutcivni, 47, of Dracut, was convicted of conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States and false claims. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Dec. 14, 2021.
In August 2016, Sutcivni was indicted along with James E. Levin, a Natick real estate developer and attorney. Levin pleaded guilty in September 2020 and was sentenced on March 30, 2021 to 37 months in prison, three years of supervised release and ordered to pay forfeiture of $1,955,000.
“The defendant’s job was to distribute public funds to develop safe and affordable housing for Worcester, but as the jury found, she used her position as the City’s Director of Housing to allow $2.3 million in taxpayer money to go to a private developer – for work that was never even done,” said Acting United States Attorney Nathaniel R. Mendell. “She abused the trust placed in her at the expense of the people of Worcester and their bid to revitalize their neighborhoods.”
“All around us, we see the country in the grips of an affordable housing crisis. Neighborhood Stabilization and HOME Program funds are HUD monies that are supposed to be used to eliminate blight, and repair or rehabilitate housing for our low- and middle-income neighbors,” said Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Region. “Defendant Sutcivni misused her position when she approved the payment of HUD funds for work she knew had not been done, resulting in the waste of hundreds of thousands of dollars meant to create affordable housing. This guilty verdict reinforces the message that our communities will not tolerate those who undermine the administration of precious HUD dollars earmarked for the creation of affordable housing for our citizens. The HUD Office of Inspector General thanks our partnership with the Federal Bureau of Investigation and the U.S. Attorney’s Office for their committed and steadfast efforts in bringing this matter to a just conclusion.”
“City employees, regardless of their position are supposed to serve their fellow citizens, not steal from them. But Jacklyn Sutcivini did exactly that, in conspiring with James Levin, to fraudulently obtain $2.3 million from the City of Worcester for their own personal enrichment at the expense of hard-working taxpayers. This verdict serves as a stark reminder that there are serious consequences for fraudulently siphoning public funds and of the FBI’s commitment to protecting the integrity of government at all levels from the spectra of public corruption,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
The City of Worcester distributes grant funds on behalf of U.S. Department of Housing and Urban Development (HUD) and Massachusetts Department of Housing and Community Development (DHCD). Sutcivni, as part of her job with the City of Worcester’s Housing Development Office, was responsible for reviewing payment requests for HUD grant funds. From July 2010 to September 2011, Sutcivni approved seven fraudulent HUD grant funding requests submitted by Levin for work he falsely claimed to have completed on a building he managed and associated costs. Sutcivni approved the payment requests despite knowing they were fraudulent. As a result, the City of Worcester issued approximately $2,365,050 in federal funds to Levin that he was not entitled to. After the City issued the payment, Sutcivni or other City officials submitted reimbursement requests to HUD or DHCD for HUD funds.
The charges of conspiracy to commit wire fraud and wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $1 million, or twice the gross gain or loss, whichever is greater. The charge of conspiracy to defraud the United States 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 submission of false claims 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 indictment also seeks forfeiture of $2,365,050. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell, HUD OIG Northeast Region SAC and FBI Boston Division SAC Bonavolonta made the announcement. Assistant U.S. Attorneys Michelle L. Dineen Jerrett and Danial E. Bennett of Mendell’s Worcester Branch Office are prosecuting the case.
Former Board Chairman Charged with Securities Fraud, Conspiracy and ObstructionRead the Press Release
BOSTON – A Canadian national residing in Long Beach, Calif., was arrested today and charged in connection with a securities fraud scheme in which he allegedly concealed his ownership of millions of shares in two companies for which he served as the chairman of the board of directors and then secretly directed the shares’ sale, generating approximately $2.19 million in proceeds.
Avtar Singh Dhillon, 60, was charged in a criminal complaint with one count of conspiracy to commit securities fraud, one count of securities fraud and two counts of obstructing a proceeding of the U.S. Securities and Exchange Commission (SEC). Dhillon will make an initial appearance in federal court in Boston at a later date.
According to the charging document, Dhillon, while serving as the chairman of two publicly-traded microcap companies, fraudulently concealed his beneficial ownership of millions of shares in those companies through two LLC entities created and managed by his attorney. One of the companies, Arch Therapeutics, Inc., was based in Framingham, Mass. It is alleged that Dhillon and his attorney concealed Dhillon’s ownership for the purpose of secretly selling the shares for Dhillon’s benefit in contravention of securities regulations that require disclosure of such sales and that limit the ability of company insiders to quickly sell large quantities of shares. Through their scheme, Dhillon and his attorney allegedly generated approximately $2.19 million in fraudulent proceeds. Later, when giving sworn testimony before the SEC, Dhillon allegedly twice withheld from investigators his beneficial interest in the LLC entities’ accounts and lied about his awareness of whether anyone had sold shares in Arch Therapeutics.
The conspiracy charge and the securities fraud charge each provide for a sentence up to 25 years in prison, five years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charges of obstructing a proceeding of the U.S. Securities and Exchange Commission provide for sentences up to 20 years and five years in prison, respectively, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. The SEC and the SEC’s Boston Regional Office provided assistance with the investigation. Assistant U.S. Attorney James R. Drabick of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Stoneham Woman Pleads Guilty to Identity Theft and Unemployment Fraud Related to COVID-19 PandemicRead the Press Release
BOSTON – A Stoneham woman pleaded guilty today in connection with her involvement in a scheme to fraudulently obtain COVID-19-related unemployment assistance using stolen identities.
Lilly Nguyen, 24, pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 1, 2021. In April 2021, Nguyen was previously charged in a criminal complaint with an alleged co-conspirator.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance. The program is administered by the Massachusetts Department of Unemployment Assistance and provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits (e.g., the self-employed, independent contractors, or gig economy workers).
Nguyen participated in a scheme to submit fraudulent Pandemic Unemployment Assistance claims using the stolen personally identifiable information of others. The investigation connected Nguyen and her alleged co-conspirator to more than $250,000 in unemployment claims between April and December 2020.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentenced imposed, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolanta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and 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 made the announcement. Special assistance was provided by the Massachusetts Department of Unemployment Assistance. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brazilian National Arrested on Child Pornography ChargesRead the Press Release
BOSTON – A Brazilian national residing in Whitman was arrested on Friday, July 30, 2021, on charges of possession and distribution of child pornography.
Walace Lima, 40, was indicted on one count of possession of child pornography and one count of distribution of child pornography. Following an initial appearance before U.S. District Court Magistrate Judge Donald L. Cabell, Lima was detained pending a detention hearing scheduled for this afternoon.
According to the charging document, Lima possessed child pornography on or about Dec. 16, 2020, and distributed child pornography on various dates between Oct. 5 and Nov. 24, 2020.
The charge of possession of child pornography provides for a sentence of up to 20 years in prison, up to a lifetime of supervised release and a fine of $250,000. The charge of distribution of child pornography provides for a sentence of at least five years and up to 20 years in prison, up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney David G. Tobin 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Member of New Bedford Latin Kings Chapter Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) pleaded guilty yesterday to racketeering charges.
Jose Vasquez, a/k/a “King Fearless,” 28, 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 Nov. 3, 2021.
As stated during the plea hearing, Vasquez served as the Enforcer for the New Bedford Latin Kings Chapter. In his role as Enforcer, Vasquez admitted to approving a “mission” or shooting of a victim that took place in June 2019. This victim was targeted for obtaining and selling drugs from a source that was not sanctioned by the Latin Kings. Vasquez also admitted to his participation in a shooting of two victims in May 2018. During that incident, multiple Latin Kings members chased the two victims to a vehicle, surrounded the vehicle, and slashed their tires. Another Latin Kings member then fired gunshots at the two victims striking them. Both victims fled in the vehicle and survived. Vasquez admitted that these victims were targeted due to one of the victims having previously objected to Latin Kings members conducting drug transactions in the victim’s driveway.
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.
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. Vasquez is the 47th 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. Attorneys Philip A. Mallard and Lauren A. Graber of Mendell’s Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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.
Former Boston Police Auto Repair Technician Agrees to Plead Guilty to Wire Fraud ChargesRead the Press Release
BOSTON – A former auto repair technician with the Boston Police Department’s (BPD) Fleet Management Division has been charged and has agreed to plead guilty in connection with a scheme to embezzle hundreds of thousands of dollars from the BPD.
Bahram Gharony, 36, of Boston, has agreed to plead guilty to two counts of wire fraud. A plea hearing has not yet been scheduled by the court.
According to the charging document, Gharony is alleged to have engaged in a scheme to defraud BPD’s Fleet Management Division of over $260,000 in automotive parts, tools and supplies between June 2017 and September 2020. It is alleged that Gharony used his position to order parts and supplies that he purported were for BPD, but were actually converted and sold to others by Gharony. In an effort to conceal the scheme, Gharony allegedly submitted fraudulent and altered invoices to BPD for the parts, tools and supplies he falsely claimed were ordered for the fleet. Additionally, Gharony purported that he had lawfully purchased the items through a discount available to BPD when selling the items to others.
The charges of wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorney Neil J. Gallagher Jr. of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Sentenced for Being a Felon in Possession of a Firearm and Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for illegally possessing a firearm and ammunition and failing to register as a sex offender.
Shane Brown, 35, was sentenced by U.S. District Court Judge William G. Young to 37 months in prison and five years of supervised released. On March 10, 2021, Brown pleaded guilty to one count of being a felon in possession of a firearm and one count of failing to register as a sex offender in violation of the Sex Offender Notification and Registration Act (SORNA).
Brown, who was convicted of a sex offense in Virginia in 2013, moved from Virginia to Boston in or around May 2020. In May and June 2020, Brown was employed in security work around Greater Boston. Brown failed to register as a sex offender in Massachusetts prior to his arrest on state charges on July 2, 2020. At the time of his state arrest, an SCCY Industries, model CPX-2, 9mm caliber pistol loaded with seven 9mm Luger cartridges was found in Brown’s waistband. Due to a previous conviction for a crime punishable by more than one year in prison, Brown is prohibited from possessing firearms and ammunition.
Acting United States Attorney Nathaniel R. Mendell; John Gibbons, U.S. Marshal for the District of Massachusetts; Thomas L. Foster, U.S. Marshal for the Western District of Virginia; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorney Elianna Nuzum of Mendell’s Major Crimes Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Dominican National Pleads Guilty to Social Security Misuse and Making False StatementRead the Press Release
BOSTON – A Dominican national previously residing in Taunton pleaded guilty today to false representation of a Social Security number and making a false statement relating to health care matters.
Reynold Pereyra Diaz, 39, pleaded guilty to one count of false representation of a Social Security number and one count of making a false statement relating to a federal health care program. U.S. District Court Judge Allison D. Burroughs deferred acceptance of the plea until sentencing, which is scheduled for Nov.18, 2021. Pereyra Diaz was arrested and charged in December 2019.
Pereyra Diaz used the name and identifiers of a U.S. citizen for at least 18 years, including to obtain a Massachusetts driver’s license and to apply for MassHealth benefits. In addition, during a traffic stop in 2015, Pereyra Diaz provided police with a driver’s license in the victim’s name and was found in possession of 15 baggies containing a substance believe to be cocaine located in a hidden compartment of his vehicle. As a result, Pereyra Diaz was indicted under the victim’s name on drug trafficking charges, which were later dropped. Pereyra Diaz also applied for a $48,000 car loan under the victim’s identity in 2016.
A search of Pereyra Diaz’s residence in December 2018 recovered a marriage license under his true name as well as a driver’s license, birth certificate, Social Security card and bank cards under the victim’s stolen identity.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
The charges of false representation of a Social Security number and making a false statement relating to a federal health care program each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based 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; and Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General, made the announcement today. Valuable assistance was provided by the Social Security Administration, Office of Inspector General, Office of Investigations; U.S. Postal Inspection Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; U.S. Department of State, Diplomatic Security Service; U.S. Department of Housing and Urban Development, Office of Inspector General; U.S. Department of Labor, Office of Inspector General; and the Lynn, Lawrence and Taunton Police Departments. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit is prosecuting the case.
Boston Man Sentenced to 14 Years in Prison for Armed Robbery of Brockton Cell Phone StoreRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston in connection with the March 2019 robbery of a T-Mobile store in Brockton and shooting at police officers as he and his co-defendants fled the scene.
Darius Carter, 28, was sentenced by U.S. District Court Judge Allison D. Burroughs to 14 years in prison and three years of supervised release. The government recommended a sentence of 217 months in prison. On March 31, 2021, Carter pleaded guilty to interference with commerce by robbery; conspiracy to interfere with commerce by robbery; discharging, brandishing, using and carrying a firearm during the commission of a crime of violence; and being a felon in possession of firearms and ammunition.
Darius Carter and co-defendants Diovanni Carter and Stephan Rosser-Stewart were charged in March 2019. Diovanni Carter was convicted by a federal jury and sentenced to 270 months in prison in September 2020. Rosser-Stewart has pleaded not guilty and is pending trial.
According to the charging documents, on the evening of Jan. 26, 2019, Darius Carter and, allegedly, Rosser-Stewart entered a T-Mobile store in Brockton. It is alleged the men were carrying semi-automatic firearms, which they pointed at the store manager as they demanded cash and electronics. Carter struck the store manager in the head with a firearm and demanded that the manager open the door to a rear room with a large safe containing cell phones and cash. The men allegedly stole approximately $25,000 in cash and electronics, left the store and fled in a getaway vehicle driven by Diovanni Carter.
Police responded and a high-speed chase ensued that reached over 70 mph in residential neighborhoods. During the chase, Darius Carter and, allegedly, Rosser-Stewart fired eight rounds at the pursuing police cruisers.
Darius Carter and Rosser-Stewart were apprehended and according to court documents, the stolen phones, cash and the three firearms used in robbery were recovered. Diovanni Carter was apprehended in March 2019.
Darius Carter and his co-defendants were prohibited from possessing firearms and ammunition due to prior criminal convictions.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John Gibbons, U.S. Marshal of the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; Plymouth County Sheriff Joseph D. McDonald Jr.; and Brockton Police Chief Emanual Gomes made the announcement today. Assistant U.S. Attorney Glenn MacKinlay, Chief of Mendell’s Organized Crime & Gang Unit and Assistant U.S. Attorney Philip A. Mallard prosecuted the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the charging documents are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Springfield Woman Sentenced for Theft of Government MoneyRead the Press Release
BOSTON – A Springfield woman was sentenced yesterday in federal court in Boston for stealing more than $260,000 in government benefits.
Debbie Moore, 57, was sentenced by U.S. District Court Judge Richard G. Stearns to five years of supervised release, with the first six months served under house arrest, and was ordered to pay restitution of $261,933. The government recommended a sentence of 18 months in prison. In September 2020, Moore pleaded guilty to one count of theft of government money.
From November 2003 through February 2018, the Social Security Administration deposited $261,933 in Social Security Retirement benefits intended for Moore’s aunt-in-law into a bank account controlled by Moore after her aunt-in-law had passed away. Moore used the money for various personal expenses.
Acting United States Attorney Nathaniel R. Mendell and Jack Jermaine, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Assistant U.S. Attorney Catherine G. Curley of Mendell’s Springfield Branch Office prosecuted the case.
Miami Woman Indicted for Wire Fraud and Identity Theft Related to COVID-19 PandemicRead the Press Release
BOSTON – A Miami woman was indicted yesterday in connection with allegedly filing for and obtaining fraudulent pandemic-related loans and using those funds for personal expenses.
Danielle Miller, 31, was indicted on three counts of wire fraud and two counts of aggravated identity theft. Miller was arrested on a criminal complaint on May 11, 2021.
According to the charging documents, from in or around July 2020 through May 2021, Miller allegedly devised and executed a scheme to fraudulently obtain pandemic-related relief loans funded by the federal government – including Economic Injury Disaster Loan (EIDL) funds through the U.S. Small Business Administration (SBA) as well as Pandemic Unemployment Assistance (PUA) and related unemployment benefits. To execute the scheme, Miller allegedly used the personal identifying information of at least five individuals to open bank accounts and to apply for more than $900,000 in SBA loans. It is further alleged that Miller misused various identities to apply for PUA benefits. Additionally, it is alleged that Miller possessed counterfeit driver’s licenses in the victims’ names but bearing Miller’s photograph.
As alleged in court documents, Miller maintained an active social media presence via her Instagram account, which had more than 34,000 followers. Posts to this account included a post showing Miller at various luxury hotels in California where transactions were made using the bank account in one of the victim’s names. For example, the luxury hotel Petit Ermitage posted a $5,500 charge to this bank account in September 2020, a few days after Miller’s Instagram account posted a photo of Miller that was geotagged to the Petit Ermitage.
The charges of wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of aggravated identity theft provide for a mandatory sentence of two years in prison to be served consecutively to any other sentenced imposed, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation is being conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
Acting United States Attorney Nathaniel R. Mendell and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Bill Abely, Chief of Mendell’s Criminal Division, is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Rhode Island Woman Pleads Guilty to Phishing SchemeRead the Press Release
BOSTON – A Rhode Island woman pleaded guilty today to sending phishing emails to candidates for political office and others.
Diana Lebeau, 21, of Cranston, R.I., pleaded guilty to one count of attempted unauthorized access to a protected computer. U.S. District Court Magistrate Judge Jennifer C. Boal scheduled sentencing for Oct. 26, 2021. Lebeau was charged on May 27, 2021.
In or about January 2020, Lebeau sent phishing emails to approximately 22 members of the campaign staff of a candidate for political office. The emails, which purported to be from either the campaign’s managers or one of the campaign’s co-chairs, directed the recipients to put their account credentials into an attached spreadsheet, or to click a link that connected them to a Google Form that solicited the same credentials. Lebeau also sent several phishing emails to the candidate’s spouse and to others at the spouse’s workplace. The emails, which purported to be either from Microsoft’s “Security Team” or from an employee of the workplace’s technology helpdesk, requested that recipients provide account credentials or other information about their computers by adding it to attached spreadsheets or on a website that mimicked the appearance of the employer’s legitimate website.
In or about March 2020, Lebeau drafted and sent phishing emails targeting another candidate for political office. The emails, which purported to be from the candidate’s cable and internet provider, contained a false “login link” that the recipient could use to address an issue with his or her account by providing account credentials. Lebeau also impersonated this candidate in online chats with the cable and internet provider, in an attempt to reset and obtain the candidate’s account password.
Lebeau did not act with financial or political motive or to benefit any foreign government, instrumentality, or agent.
The charge of attempted access without authorization to a protected computer provides for a sentence of up to one year in prison, one year of supervised release, a fine of up to $100,000 and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Mendell’s Securities, Financial & Cyber Fraud Unit, is prosecuting the case.
Former eBay Employee Sentenced for Role in Aggressive Cyberstalking CampaignRead the Press Release
BOSTON – A former supervisor of security operations for eBay’s was sentenced today for his role in a cyberstalking campaign targeting a Natick, Mass. couple who published a newsletter that eBay executives viewed as critical of the company.
Philip Cooke, 56, of San Jose, Calif., a former police captain in Santa Clara, Calif., was sentenced by U.S. District Court Judge Allison D. Burroughs to 18 months in prison and three years of supervised release with the first year spent in home detention. Cooke was also ordered to pay a fine of $15,000 and to perform 100 hours of community service. In October 2020, Cooke pleaded guilty to conspiracy to commit cyberstalking and conspiracy to tamper with witnesses.
Cooke admitted to conspiring with six other former eBay employees. David Harville, of New York City, and James Baugh, of San Jose, Calif., were charged on June 15, 2020, with conspiracy to commit cyberstalking and conspiracy to tamper with witnesses and are pending trial. Stephanie Popp and Veronica Zea, both of San Jose, Calif., pleaded guilty on Oct. 8, 2020 and are scheduled to be sentenced on Sept. 28, 2021. Stephanie Stockwell, of Redwood City, Calif., and Brian Gilbert, of San Jose, Calif., pleaded guilty on Oct. 29, 2020 and are scheduled to be sentenced on Sept. 28, 2021 and Sept. 30, 2021, respectively.
According to the charging documents, the victims of the cyberstalking campaign were a Natick couple who are the editor and publisher of an online newsletter that covers ecommerce companies, including eBay. Members of eBay’s executive leadership team followed the newsletter’s posts, often taking issue with its content and the anonymous comments underneath the editor’s stories.
It is alleged that in August 2019, the defendants executed a three-part harassment campaign against the Natick couple. Among other things, several of the defendants ordered anonymous and disturbing deliveries to the victims’ home, including a preserved fetal pig, a bloody pig Halloween mask and a book on surviving the loss of a spouse.
As part of the second phase of the campaign, some of the defendants allegedly sent private Twitter messages and public tweets criticizing the newsletter’s content and threatening to visit the victims in Natick. The charging documents allege that Cooke, Baugh, Gilbert and Popp planned these messages to become increasingly disturbing, culminating with “doxing” the victims (i.e., publishing their home address). It is alleged that the same group intended then to have Gilbert, a former Santa Clara police captain, approach the victims with an offer to help stop the harassment that the defendants were secretly causing, in an effort to promote good will towards eBay.
The third phase of the campaign allegedly involved surveilling the victims in their home and community. The victims spotted the surveillance, however, and notified the Natick Police, who began to investigate.
Aware that the police were investigating, the defendants allegedly sought to interfere with the investigation. For example, Cooke and, allegedly, several of the other defendants discussed the possibility of presenting Natick Police with a false investigative lead to keep the police from discovering video evidence that could link some of the deliveries to eBay employees. As the police and eBay’s lawyers continued to investigate, the defendants allegedly deleted digital evidence that showed their involvement, further obstructing what had by then become a federal investigation.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Natick Police Chief James G. Hicks made the announcement today. eBay provided valuable assistance and cooperation with the federal investigation. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Mendell’s Securities, Financial & Cyber Fraud Unit, is prosecuting the case.
The details contained in charging documents as to defendants Harville and Baugh are allegations. They are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Boy Scouts Leader Sentenced to 33 Years in Prison for Child Exploitation OffensesRead the Press Release
BOSTON – A former Boy Scouts Leader was sentenced yesterday in federal court in Boston for sexually exploiting children via a social media app.
Matthew Murphy, 25, of Whitman, was sentenced by U.S. Senior District Court Judge Paul J. Barbadoro for the District of New Hampshire to 33 years in prison and 10 years of supervised release. In January 2020, Murphy pleaded guilty to five counts of sexual exploitation of children.
The investigation began when law enforcement learned that Murphy, posing as a teenage girl, used a Snapchat account to extort nude photographs from a Massachusetts middle school boy. Agents obtained portions of the Snapchat account Murphy had created in the fake identity and uncovered evidence of similar extortion of dozens of other minors in the area. Court records state that Murphy used five separate Snapchat accounts to sexually exploit at least 15 children. Murphy knew some of the children and their families through his connection to local Boy Scouts troops.
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. The Whitman Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Anne Paruti, Mendell’s Project Safe Childhood Coordinator and Deputy Chief of the Major Crimes Unit, prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Dominican National Pleads Guilty to Two Fentanyl ConspiraciesRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence pleaded guilty today to the second of two fentanyl distribution conspiracies.
Guillermo Aybar-Guerrero, 29, pleaded guilty before U.S. District Court Judge Richard G. Stearns to one count of conspiring to distribute and to possess with intent to distribute 40 grams or more of fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl.
In August 2020, Guillermo Aybar-Guerrero was indicted with his brother, Luis Aybar-Guerrero, after investigators conducted controlled purchases of fentanyl from Guillermo on June 10 and 17, 2020. On June 25, 2020, investigators set up a third controlled purchase, at which time Guillermo was arrested in possession of approximately 30 grams of suspected fentanyl. It is alleged that Guillermo retrieved the fentanyl for each of these transactions from Luis. A search of Luis’ residence resulted in the seizure of an additional 223 grams of acetyl fentanyl (a fentanyl analogue) as well as a scale, baggies and other drug distribution paraphernalia.
Luis Aybar-Guerrero pleaded guilty on July 15, 2021 and is scheduled to be sentenced on Nov. 18, 2021 by Judge Stearns.
Guillermo previously pleaded guilty in June 2021 to one count of conspiring to distribute and to possess with intent to distribute 40 grams or more of fentanyl and two counts of possession with intent to distribute fentanyl for his role in a separate fentanyl conspiracy.
In this conspiracy, investigators conducted controlled purchases of fentanyl pills from Guillermo on April 24 and May 5, 2019. The transactions were coordinated by co-conspirator Francis Jimenez Minyetty. Minyetty pleaded guilty to his involvement in the conspiracy and was sentenced in May 2021 to eight years in prison.
Guillermo’s two cases will be consolidated for purposes of sentencing. U.S. District Court Judge Denise J. Casper scheduled sentencing for Sept. 29, 2021.
The charges of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl, and possession with intent to distribute of 40 grams or more of fentanyl provide for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of $5 million. The charges of possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Lauren Graber of Mendell’s Narcotics and Money Laundering Unit is prosecuting the cases.
Two Nigerian Nationals Indicted for Romance and Pandemic Unemployment Fraud SchemesRead the Press Release
BOSTON – Two Nigerian nationals were indicted on Tuesday, July 20, 2021, in connection with their roles in expansive online fraud schemes targeting individuals in the United States, including romance scams and pandemic unemployment assistance fraud.
Osakpamwan Henry Omoruyi, 36, and Osaretin Godspower Omoruyi, 34, who previously resided in Canton, were each indicted on one count of conspiracy to commit bank and wire fraud, three counts of wire fraud and one count of engaging in unlawful monetary transactions. In March 2021, the defendants were charged by criminal complaint.
According to the charging documents, the defendants, along with other co-conspirators, allegedly participated in a series of romance and other online scams designed to defraud victims into sending money to accounts and debit cards they controlled. Romance scams occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or close relationship to manipulate and/or steal from the victim.
To carry out the schemes, the defendants allegedly used fake passports in the names of others to open numerous bank accounts and directed victims to send money to these accounts. They allegedly used the accounts to collect fraudulent pandemic unemployment benefits in the names of beneficiaries who did not apply for such benefits.
The charge of conspiracy to commit bank and wire fraud provides for a sentence of up to 30 years in prison, five years of supervised release, a fine of up to $1 million or twice the gross gain or loss, whichever is greater, and forfeiture. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. The charge of unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release, a fine of $250,000, or twice the value of the criminally derived property, whichever is greater, and forfeiture. 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; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service made the announcement. Assistant U.S. Attorneys Sara Miron Bloom and Ian Stearns of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nigerian National Charged for Various Online Fraud SchemesRead the Press Release
BOSTON – A Nigerian national residing in Boston has been charged and has agreed to plead guilty in connection with online fraud schemes.
Macpherson Osemwegie, 32, agreed to plead guilty to one count of conspiracy to commit bank and wire fraud. A plea hearing has not yet been scheduled by the court.
According to the charging document, Osemwegie allegedly conspired with others to participate in a series of romance and other online scams designed to defraud victims into sending money to accounts and debit cards that Osemwegie and others controlled. Romance scams occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or close relationship to manipulate and/or steal from the victim.
To carry out the schemes, Osemwegie and his co-conspirators used false foreign passports in others’ names to open numerous bank accounts, and in turn directed the victims to send money to these accounts.
The charge of conspiracy to commit bank and wire fraud provides for a sentence of up to 30 years in prison, five years of supervised release, a fine of up to $1 million or twice the gross gain or loss, whichever is greater, restitution and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service made the announcement. Assistant U.S. Attorneys Sara Miron Bloom and Ian Stearns of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the court documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cape Cod Man Sentenced in Connection with Heroin ConspiracyRead the Press Release
BOSTON – An Osterville man was sentenced in federal court in Boston today for his role in a wide-ranging heroin trafficking conspiracy.
Eric Brando, 29, was sentenced by U.S. District Court Judge Allison D. Burroughs to 66 months in prison and six years of supervised release. In February 2020, Brando pleaded guilty to conspiracy to distribute 100 grams or more of heroin.
In May 2019, Brando and 10 co-defendants were arrested and charged with various drug distribution offenses.
According to court documents, in 2019, law enforcement began an investigation into a Cape Cod drug trafficking organization, allegedly led by co-defendant Edwin Otero. It is alleged that Otero and his co-conspirators distributed large quantities of heroin throughout Cape Cod, including Hyannis, Mashpee, Centerville and Osterville, as well as Pawtucket, R.I. Interceptions from Otero’s phone identified Brando as a drug trafficker supplied by Otero. In addition to moving sizeable quantities of heroin, the investigation revealed that members of the Otero crew shot at a drug customer over an unpaid debt and videotaped themselves beating another man they incorrectly believed had provided information to the police.
Brando is the first defendant to be sentenced in this case and the fourth to have pleaded guilty. The remaining seven defendants have pleaded not guilty and are pending trial.
The charge of conspiracy to distribute 100 grams or more of heroin provides for a sentence of up to 40 years in prison, at least four years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
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.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Barnstable Police Chief Matthew K. Sonnabend made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Mendell’s Narcotics and Money Laundering 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.
Bookkeeper Sentenced for Fraud and Tax EvasionRead the Press Release
BOSTON – The owner of a firm that provided payroll and payroll tax services to small businesses in New England was sentenced on Thursday, July 22, 2021 for defrauding clients by diverting the funds her clients set aside for payroll taxes.
Patricia Lindau, 65, of Newburg, Maine, was sentenced by U.S. District Court Judge Denise J. Casper to three years in prison and two years of supervised release. Lindau was also ordered to pay restitution of $1,422,122 and forfeiture of $1,121,292. On Feb. 24, 2021, Lindau pleaded guilty to one count of wire fraud and one count of tax evasion.
Between 2017 and the spring of 2020, Lindau engaged in a scheme to defraud many of her clients by failing to pay over to the Internal Revenue Service (IRS) and Massachusetts Department of Revenue (DOR) the payroll taxes that she withdrew from her clients’ bank accounts. Lindau used her access to her clients’ accounts to transfer funds that her clients intended to use to satisfy their payroll tax liabilities into her firm’s business checking account. Lindau then sent each client a weekly report falsely indicating that she had paid the funds over to the IRS and DOR.
When Lindau’s clients received letters from the IRS and DOR indicating that their payroll taxes had not been paid, Lindau lied to the clients and falsely told them that the letters were a mistake and that she would take care of it. In some instances, she then paid the taxes late.
Lindau’s scheme continued into the first quarter of 2020 when most of her clients closed due to COVID-19 and then discovered that their employees’ payroll taxes had not been and were not being paid.
Over the course of the scheme, Lindau failed to pay over when due more than $2 million and caused a net loss to her clients of over $1.1 million.
Acting United States Attorney Nathaniel R. Mendell; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation; and John Hayes, Director of the Criminal Investigations Bureau, Massachusetts Department of Revenue made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom and Mackenzie Queenin of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Barnstable Man Indicted on Child Exploitation OffensesRead the Press Release
BOSTON – A Barnstable man was arrested on Friday, July 23, 2021 on child exploitation offenses.
Atticus J. Bernard, 21, was indicted on two counts of sexual exploitation of children and one count of possession of child pornography. Bernard was detained following an initial appearance and arraignment on July 23, 2021.
According to the indictment, Bernard allegedly used two minors to engage in sexually explicit conduct for the production and distribution of child pornography on two separate occasions between approximately November 2019 and October 2020. In addition, on Jan. 14, 2021, Bernard allegedly possessed child pornography.
The charge of sexual exploitation of children provides for sentence of up to 30 years, a minimum of 15 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, up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Frederick J. Regan, Special Agent in Charge of U.S. Secret Service in Boston; and Barnstable Police Chief Matthew Sonnabend made the announcement today. Assistant U.S. Attorney David G. Tobin of Mendell’s Major Crimes Unit is prosecuting the case.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Stoughton Man Sentenced on Drug Distribution ChargesRead the Press Release
BOSTON – A Stoughton man with ties to the Orchard Gardens housing development in Roxbury was sentenced yesterday in federal court in Boston on drug trafficking charges.
Dashawn Matthews, 31, was sentenced by U.S. District Court Judge William G. Young to 30 months in prison and three years of supervised release. On Dec. 14, 2020, Matthews pleaded guilty to distribution and possession with intent to distribute fentanyl and cocaine base (also known as crack cocaine).
During an investigation into drug trafficking and violence in the Orchard Gardens housing development, a cooperating witness and an undercover police officer made eight purchases of fentanyl, crack cocaine or both from Matthews. In total, between May and August 2019, Matthews distributed approximately 120 grams of fentanyl and 98 grams of crack cocaine. Most of the sales took place a short distance away from the Orchard Gardens 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; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorney Christopher Pohl of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.