District of Massachusetts
Press releases recorded for this federal judicial district.
Fitchburg Man Pleads Guilty to Fentanyl, Crack Cocaine and Cocaine ConspiracyRead the Press Release
BOSTON – A Fitchburg man pleaded guilty today to his role in a fentanyl and crack cocaine trafficking conspiracy. The defendant sold drugs to customers in the Fitchburg area and had associates sell drugs on his behalf.
Alberto Nunez, 46, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base (commonly known as crack cocaine), fentanyl and cocaine. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for May 10, 2021. Nunez was charged by federal criminal complaint in February 2020.
From approximately November 2019 to February 2020, Nunez conspired with others to distribute and to possess with intent to distribute cocaine base, fentanyl and cocaine in Worcester County and elsewhere in Massachusetts. As part of a federal investigation into drug trafficking in the Fitchburg area in September 2018, Nunez was identified as a drug dealer who regularly distributed fentanyl and cocaine base to multiple drug customers. Nunez delivered the drugs to his customers himself and also had multiple associates deliver fentanyl and cocaine base to customers on his behalf. Most of Nunez’s customers were drug users, but some further distributed the drugs they purchased from Nunez.
The charge of conspiracy to distribute 28 grams or more of cocaine base, fentanyl and cocaine provides for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. The Fitchburg and Lunenburg Police Departments also provided valuable assistance with the investigation. Assistant U.S. Attorney Alathea Porter of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Athenahealth Agrees to Pay $18.25 Million to Resolve Allegations that It Paid Illegal KickbacksRead the Press Release
BOSTON – athenahealth, Inc. (Athena), a Watertown-based developer of electronic health records (EHR) services, has agreed to pay $18.25 million to resolve allegations that it violated the False Claims Act (FCA) by paying illegal kickbacks to generate sales of its EHR product, athenaClinicals.
In a complaint filed in conjunction with today’s settlement, the United States alleged that Athena violated the FCA and the Anti-Kickback Statute through three marketing programs. First, Athena allegedly invited prospects and customers to all-expense-paid sporting, entertainment and recreational events. The most lavish of these events, such as “bucket list” trips to the Masters Tournament and the Kentucky Derby, included complimentary travel along with luxury accommodations, meals and alcohol. Second, Athena allegedly paid illegal fees to its customers through its “Lead Generation” program designed to identify new prospective customers. Under this program, Athena paid up to $3,000 per physician that signed up for Athena services, regardless of how much time (if any) the client spent speaking or meeting with the lead. Finally, it is alleged that Athena entered into deals with competing companies that had decided to discontinue their health information technology products. Pursuant to those agreements, known as “Conversion Deals,” the other companies agreed to refer their clients to Athena, and Athena paid competitors based on the value and volume of practices that were successfully converted into Athena customers.
As a result of these kickbacks, it is alleged that Athena improperly generated sales for itself while causing healthcare providers to submit false claims to the federal government related to incentive payments for adoption and “meaningful use” of Athena’s EHR technology.
“Across the country, physicians rely on electronic health records software to provide vital patient data. Kickbacks corrupt the market for health care services and risk jeopardizing patient safety,” said United States Attorney Andrew E. Lelling. “We will aggressively pursue organizations that fail to play by the rules; EHR companies are no exception.”
“This resolution demonstrates the department’s continued commitment to holding EHR companies accountable for the payment of unlawful kickbacks in any form,” said Acting Assistant Attorney General Brian Boynton for the Department of Justice’s Civil Division. “EHR technology plays an important role in the provision of medical care, and it is critical that the selection of an EHR platform be made without the influence of improper financial inducements.”
“If the benefits of Electronic Health Records are to be fully realized, patients must be confident providers have selected the most effective system – not the one paying the largest kickbacks. Time and again, we’ve seen fraudulent activity undermine the integrity of medical decisions, subvert the health marketplace, and waste taxpayer dollars,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to hold accountable those who provide illegal incentives in order to influence the decision-making of health care providers.”
“It is illegal for companies to extend invitations to all-expense-paid sporting, entertainment, and recreational events, and other perk-filled offers to its prospective customers to win business and boost their bottom line through illegal kickback schemes,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s agreement by Athena to pay $18.25 million should send a strong message to anyone thinking about engaging in this type of illegal activity. The FBI will continue to work with our law enforcement partners to do everything in our power to safeguard our government health care programs and the taxpayers picking up the bill.”
The settlement with Athena also resolves allegations in two whistleblowers lawsuits. Under the qui tam provisions of the False Claims Act, private individuals, known as relators, can sue on behalf of the government for false claims and share in any recovery.
U.S. Attorney Lelling, Acting Assistant Attorney General Boynton, HHS-OIG SAC Coyne, FBI Boston SAC Bonavolonta and Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office made the announcement today. The matter was handled by Assistant U.S. Attorneys Jessica J. Weber, David J. Derusha and Gregg Shapiro of Lelling’s Affirmative Civil Enforcement Unit, together with Trial Attorneys Nicholas Perros and Andrew Jaco of the Justice Department’s Civil Division.
Dominican National Sentenced for Crack and Cocaine TraffickingRead the Press Release
BOSTON – A Dominican national previously living in Lawrence was sentenced today for trafficking crack cocaine (also known as cocaine base) and cocaine.
Encebio Esperitusanto, 41, was sentenced by U.S. District Court Judge Allison D. Burroughs to 33 months in prison. Esperitusanto will face deportation upon completion of his sentence. In June 2020, Esperitusanto pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine and 28 grams or more of cocaine base, one count of distribution of 28 grams or more of cocaine base and one count of distribution of cocaine. Esperitusanto has been in federal custody since he was arrested on March 13, 2019.
Esperitusanto sold crack cocaine to a cooperating source on two occasions in November 2018 in Lawrence. In February 2019, Esperitusanto again arranged for two additional sales of crack and cocaine to the same cooperating source.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division made the announcement today. Assistance was also provided by the U.S. Postal Inspection Service and Immigration and Customs Enforcement. Assistant U.S. Attorneys Katherine Ferguson and Stephen Hassink of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Federal Inmate Pleads Guilty to Making Threats Against Federal AgentsRead the Press Release
BOSTON – A former inmate at the Federal Medical Center (FMC) Devens was sentenced today in connection with making threats against federal agents and threatening to cause an explosion at a federal courthouse.
Nathan Danforth, 34, was sentenced by U.S. District Court Judge Timothy S. Hillman to three years in prison and three years of supervised release. Danforth pleaded guilty on Jan. 20, 2021 to one count of making threats to murder federal law enforcement officers and one count of threats to damage or destroy a building using fire or explosives.
In July 2019, Danforth, then an inmate at FMC Devens, attempted to mail a letter to a federal court in Florida, threatening to kill the agents who previously investigated him and to cause an explosion at the courthouse. In February 2020, Danforth sent an email from FMC Devens to the Department of Justice Office of Inspector General threatening that the President would die and federal buildings would be “blown up.”
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. FMC Devens Special Investigation Section provided valuable assistance to the investigation. Assistant U.S. Attorney Kristen Noto of Lelling’s Worcester Branch Office prosecuted the case.
California Man Pleads Guilty to Wire Fraud and ConspiracyRead the Press Release
BOSTON – A California man pleaded guilty today in federal court in Worcester to federal tax and fraud charges arising from his role with various Worcester-based employment agencies.
Julio Lopez, 43, of Los Angeles, Calif., and formerly of Worcester, pleaded guilty to two counts of wire fraud and one count of conspiring to defraud the United States. Lopez was charged in December 2020. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for April 27, 2021.
Lopez worked for Worcester-based employment agencies Bay State, Prime Labor and UT Services. Bay State misrepresented the number of its employees and the wages earned by such employees and failed to report cash wages to the IRS and to its workers compensation insurance carrier. In 2016, in connection with a client audit, another Bay State employee fabricated payroll documents that falsely showed that deductions were taken from employees’ paychecks for payroll taxes, and Lopez provided these fabricated documents to the client.
After Bay State ceased operations in approximately November 2017, Lopez was involved in shifting certain Bay State clients to UT Services, an agency controlled by Tam Vuong. Thereafter, Lopez and, allegedly, Vuong, engaged in a scheme to defraud by misrepresenting the number of employees who worked for UT Services and the wages earned by such employees. UT Services paid most of its employees in cash and then failed to report those employees and the cash wages to the IRS and to its workers compensation insurance carrier. During the time he worked for UT Services, Lopez knew that federal law enforcement was investigating the cash payroll practices of various employment agencies, and used an email address associated with a fake name so that that his own name would not be tied to UT Services.
In August 2019, Vuong was indicted on fraud and tax charges in connection with his oversight of UT Services and Prime Labor and is scheduled to stand trial on Sept. 7, 2021.
The charges of wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The conspiracy charge provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; 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 Lelling’s Major Crimes Unit, and Ian Stearns of Lelling’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nantucket Painting Business Owner Charged with $2 Million Tax FraudRead the Press Release
BOSTON – The owner of a commercial and residential painting business on Nantucket was charged today with an income diversion and payroll tax scheme resulting in a tax loss that exceeded $2 million.
Durvan C. Lewis, 51, of Nantucket, was charged and has agreed to plead guilty to one count of tax evasion and one count of failure to pay over taxes. A hearing has not yet been scheduled.
Lewis owned and operated a painting business known as DCL Painting. From 2014 through 2017, Lewis allegedly diverted over $1.5 million of DCL Painting’s gross receipts to his personal bank account and failed to report the diverted receipts to his tax preparer. In addition, during the tax quarters ending March 31, 2012 through Sept. 30, 2019, it is alleged that Lewis paid over $5 million in wages to DCL Painting’s employees in cash “under the table.” As a result of his conduct, Lewis underreported his personal income tax obligations, as well as failed to report and pay over to the IRS the employment taxes owed on the cash wages. In total, Lewis allegedly caused a loss to the IRS of $2,084,852.
The charging statutes provide for a sentence on each count of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Boston Field Office made the announcement today. Assistant U.S. Attorney James R. Drabick of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Former New Bedford Police Officer Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A former New Bedford police officer was sentenced today in federal court in Boston for possessing and distributing child pornography.
Paul Hodson, 44, of Acushnet, was sentenced by U.S. District Court Judge Patti B. Saris to six years in prison and five years of supervised release. In December 2019, Hodson pleaded guilty to one count of distribution of child pornography and one count of possession of child pornography.
Following an investigation into the use of peer-to-peer file sharing networks for the trade of child pornography, a search was executed at Hodson’s home. Hodson was interviewed on scene and admitted to using peer-to-peer file sharing software to trade child pornography. Hundreds of child pornography files were recovered from Hodson’s computer including at least one file that was distributed to undercover law enforcement in the course of the investigation.
United States Attorney Andrew E. Lelling and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Acushnet Police Department. Assistant U.S. Attorney Anne Paruti, Lelling’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.
Boston Man Agrees to Plead Guilty to Assaulting Officers with a Firearm During Civil Disorder in BostonRead the Press Release
BOSTON – A Boston man has agreed to plead guilty to assaulting officers with a firearm during the civil disorder in Boston early in the morning of June 1, 2020.
John Boampong, 37, has agreed to plead guilty to one count each of interfering with a law enforcement officer during the commission of a civil disorder, receipt of a firearm by a person under indictment for a felony offense, and assaulting, resisting, or impeding certain officers or employees. Boampong was charged by criminal complaint on June 30, 2020 and has been detained since his arrest on June 1.
According to the terms of the plea agreement, Boampong will be sentenced to a term of 42 to 63 months in federal prison and three years of supervised release.
“We’ve seen protests time and again over the past year. While protesting is a constitutionally protected right, endangering the lives of law enforcement and the public is a crime,” said United States Attorney Andrew E. Lelling. “Whether that takes place in the streets of Boston or our nation’s capital, you can be assured that federal law enforcement will investigate those who engage in violence and destruction and hold them to account.”
“John Boampong incited panic downtown after he fired 11 rounds in the direction of police officers and civilians, with a firearm he was not allowed to carry. His appalling actions put everyone—including officers who were there to ensure public safety—in danger,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This case should serve as a reminder that the FBI and our law enforcement partners will bring all of our investigative resources to bear on those who choose to instigate violence under the guise of peaceful protests.”
“With an illegal firearm, John Boampong shot in the direction of my police officers while thousands of people were expressing their First Amendment rights on June 1, 2020,” said Police Commissioner William G. Gross. “I hope today’s guilty plea will remind people that the Boston Police Department will continue to work with our partners in the Federal Bureau of Investigations and the United States Attorney’s Office to send a clear message that committing violent crime in our city, against our residents, and my officers, will not be tolerated.”
“The peaceful protests of the police killings of George Floyd, Breonna Taylor and other Black and brown people were, unfortunately, marred by the dangerous and criminal acts of a small number of individuals,” said Suffolk County District Attorney Rachael Rollins. “John Boampong was one of those individuals who put the lives of protesters and police in danger. Violence will not be tolerated in our communities. I’m grateful to have the partnership of the U.S. Attorney’s Office in efforts to hold individuals accountable for acts of violence while ensuring the ability of protesters to assert their First Amendment rights and speak out against injustice.”
According to court documents, on the evening of May 31, 2020 and continuing through the morning of June 1, 2020, what began as a peaceful demonstration in Boston’s Back Bay neighborhood devolved into widespread acts of violence, vandalism, looting and destruction of police property, including the burning of at least one police vehicle on Tremont Street. Some protestors threw rocks, bricks and commercially-available explosives, such as M-80s, at police officers. Numerous police officers were injured.
On June 1, 2020 at approximately 3:00 am, Boampong was driving his car near the Arlington Street and Boylston Street intersection in front of a store that had been victimized by looting that evening. Police officers instructed Boampong and his passengers to leave the area. The occupants of Boampong’s car initially became verbally combative towards the officers and failed to leave the area as instructed. When Boampong reversed the car, officers told him to stop, as officers and another vehicle were in the way. However, Boampong continued driving in reverse and then drove away. Shortly thereafter, he returned to the area, parked on Providence Street, and shot at least 11 times toward officers, including a deputized federal officer. The officers took cover by bracing or ducking behind cars and other objects. Bullets broke through the windows of two apartments above ground level in a building behind some of the officers.
When officers eventually stopped Boampong’s car, they saw a Sig Sauer P230 9mm firearm lying on the floor of the front passenger-side floor mat, and a black holster underneath the driver’s seat, where Boampong had been sitting. The firearm was later examined and found to have Boampong’s fingerprint on it.
At the time, Boampong was prohibited from possessing a firearm or ammunition because he faced pending state charges carrying potential sentences exceeding one year.
The charge of assaulting federal officers provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charges of interfering with law enforcement officers during a civil disorder and being a prohibited person in receipt of a firearm or ammunition 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 upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling, FBI Boston SAC Bonavolonta, Boston Police Commissioner Gross and Suffolk County District Attorney Rollins made the announcement today. Assistant U.S. Attorney John Dawley of Lelling’s Organized Crime and Gang Unit and Assistant U.S. Attorney Scott L. Garland, Deputy Chief of Lelling’s National Security Unit, are prosecuting the case.
Bookkeeper Charged with 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 charged and agreed to plead guilty to a scheme to defraud her clients by diverting the funds set aside by her clients for payroll taxes.
Patricia Lindau, 65, of Newburg, Maine, was charged and has agreed to plead guilty to one count of wire fraud and one count of tax evasion. According to the plea agreement filed today, the government will recommend a sentence of incarceration at the low end of the Guidelines sentencing range, one year of supervised release and restitution of $1,393,430. A plea hearing has not yet been scheduled.
As alleged in the charging document, 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 and Massachusetts Department of Revenue (Mass. DOR) the payroll taxes that she withdrew from her clients’ bank accounts. Lindau used her access to her clients’ accounts to transfer funds that were to be used to satisfy her clients’ payroll tax liabilities into her firm’s business checking account. Lindau then sent each client a weekly report falsely indicating that the funds had been paid over to the IRS and Mass. DOR.
When Lindau’s clients received letters from the IRS and Mass DOR indicating that their payroll taxes had not been paid, Lindau lied to the clients and falsely told them that the IRS or Mass. DOR 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.
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 the greater of $250,000 or twice the gross gain or loss. The charge of tax evasion provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation; and Marikae Toye, Director of the Criminal Investigations Bureau, Massachusetts Department of Revenue made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Two Malaysian Nationals Plead Guilty to Illegally Exporting Firearm Parts to Hong KongRead the Press Release
BOSTON – Two Malaysian nationals pleaded guilty today in federal court in Boston to conspiring to illegally export firearm parts from the United States to Hong Kong.
Lionel Chan, 36, who previously resided in Brighton, Mass., and Muhammad Mohd Radzi, 27, who previously resided in Brooklyn, N.Y., each pleaded guilty to conspiring to violate the Arms Export Control Act. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for May 28, 2021.
Beginning in or around March 2018, Chan began purchasing a variety of U.S.-origin firearm parts online, including parts used to assemble AR-15 assault rifles and 9MM semi-automatic handguns, for a buyer located in Hong Kong. Many of the firearm parts that Chan purchased and exported to Hong Kong are restricted items that cannot be exported from the United States without a license or approval from the U.S. government. Nonetheless, Chan shipped the firearm parts via Federal Express to the buyer in Hong Kong without first obtaining the necessary export licenses. Chan intentionally concealed the contents of the shipments by providing Federal Express with false information about the shipments, and by concealing the parts inside of each package. Between March and May 2018, Chan shipped at least 12 packages containing firearm parts from Brighton to the buyer in Hong Kong.
In or around April 2018, Radzi joined the conspiracy and also began illegally exporting firearm parts from the United States to Hong Kong. Between May and October 2018, Radzi shipped 21 packages from Brooklyn, N.Y., to the buyer in Hong Kong. In October 2018, two of those packages were interdicted by Hong Kong authorities and found to contain numerous firearms parts, including a firing pin and gun sight, which were export controlled. Like Chan, Radzi failed to obtain an export license for any of these shipments.
The charge of conspiring to illegally export controlled firearm parts from the United States provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigation in Boston made the announcement today. The Massachusetts State Police and U.S. Customs and Border Protection also assisted in the investigation. Assistant U.S. Attorney Jason A. Casey of Lelling’s National Security Unit is prosecuting the case.
Taunton Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A Taunton man was sentenced yesterday in federal court in Boston in connection with possessing over 1,000 videos and images of child pornography.
Ronald Walsh, 68, formerly of Mashpee, was sentenced to seven years in prison, five years of supervised release and ordered to pay $15,300 in fees and penalties. In February 2020, Walsh pleaded guilty to two counts of distribution of child pornography and one count of possession of child pornography.
In August 2018, an undercover officer downloaded child pornography from a collection Walsh made available to others on the internet. In November 2018, a search was executed at Walsh’s home in Mashpee where child pornography was located on Walsh’s computer. During a forensic review of the hard drive, over 1,000 videos and images of children being sexually exploited were identified.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Mashpee Police Chief Scott Carline; Barnstable County Sheriff James Cummings; and Barnstable Police Chief Matthew Sonnabend made the announcement. The U.S. Secret Service provided assistance with the investigation. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Swampscott Man Charged with Bank FraudRead the Press Release
BOSTON – A Swampscott man was arrested and charged today with bank fraud in connection with a scheme to defraud an elderly victim and her bank by stealing the victim’s retirement assets.
Felix Gorovodsky, 29, was charged by criminal complaint with one count of bank fraud.
As alleged in the complaint, Gorovodsky previously served as a financial advisor and power of attorney, with fiduciary responsibilities, for the elderly victim. The elderly victim, however, terminated that advisor relationship and revoked the power of attorney in July 2019. Approximately nine months after he was notified that the victim had terminated the relationship, Gorovodsky accessed and liquidated the victim’s bank account, transferring more than $250,000 of the victim’s retirement assets into his own bank account. Gorovodsky then used the stolen funds for personal expenses, including paying off more than $100,000 in federal student loans. To legitimize the transfer, Gorovodsky forged the victim’s signature on a purported “gift letter,” that he sent to the bank in an attempt to legitimize the fraudulent transfer.
The charge of bank fraud provides a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Department of Education, Office of Inspector General provided valuable assistance with the investigation. Assistant U.S. Attorney Ian Stearns of Lelling’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.
Roxbury Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
BOSTON – A Roxbury man, who was previously convicted of cocaine distribution, pleaded guilty today to illegal possession of a semiautomatic pistol and ammunition.
Daiquan Lucas, 28, pleaded guilty to being a felon in possession of a firearm and ammunition. U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for May 24, 2021. Lucas was indicted in October 2020.
On June 18, 2020, Lucas possessed a Bryco Arms model 38, .32 auto caliber semiautomatic pistol, loaded with 4 rounds of .32 caliber ammunition. Due to a 2017 conviction in federal court of distribution of cocaine base, Lucas is prohibited from possessing firearms and ammunition. Lucas was on federal supervised release at the time of this offense.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today. The case is being prosecuted in Lelling’s Organized Crime and Gang Unit.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Worcester Couple Arrested on Stimulus Fraud ChargesRead the Press Release
BOSTON – A Worcester couple was arrested today and charged in connection with fraudulently applying for business loans under the CARES Act, and then spending the money on personal expenses.
Lucy Oworae, 56, and her husband, Richard Oworae, 59, were charged by criminal complaint with wire fraud and making false statements. They will make an initial appearance before U.S. Magistrate Judge David H. Hennessy this afternoon.
According to the charging documents, between late July 2020 and late August 2020, Lucy and Richard Oworae schemed to defraud the Small Business Administration (SBA) by submitting applications through SBA’s website for at least three Economic Injury Disaster Loans (EIDL) totaling approximately $194,700. The Oworaes fraudulently applied for EIDL loans, provided false statements on the loan applications and misappropriated the loan funds for their personal use.
The Oworaes allegedly created fictitious companies for the purpose of fraudulently applying for EIDL loans, and spent funds obtained from that fraud on unauthorized personal expenses and to make money transfers through a money-remitter business based in Tanzania to numerous individuals residing in Ghana.
EIDL funds are available to eligible individuals and businesses pursuant to the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The provisions of the CARES Act allowed for the SBA to offer EIDL funding to business owners negatively affected by the COVID-19 pandemic. The provisions of the EIDL program require that loan proceeds only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred.
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 making false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; and Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General made the announcement today. Assistant U.S. Attorney Danial Bennett of Lelling’s Worcester Branch Office 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.
U.S. Attorney’s Office Returns More Than $235 Million in Fiscal Year 2020 to Crime Victims and the United States GovernmentRead the Press Release
BOSTON – U.S. Attorney Andrew E. Lelling announced today that the District of Massachusetts collected more than $235 million in criminal and civil actions in Fiscal Year 2020. Of this amount, $208,282,537 was collected in civil actions, including $77,933,472 in restitution for crime victims, and $27,194,175 was collected in criminal actions.
“I’m proud of the work the civil and criminal prosecutors in my office have done to secure more than $235 million in collections, restitution to crime victims, and asset forfeitures, in 2020 alone,” said U.S. Attorney Andrew E. Lelling. “The District of Massachusetts has long been a leader in financial recoveries in the areas of health care fraud, securities fraud and civil settlements, and we will continue to aggressively pursue collections that return money to victims of crime and U.S. taxpayers, and deprive criminals of their ill-gotten gains.”
The 94 U.S. Attorney’s Offices jointly collected over $8 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2020. The $8,064,931,805 in collections in FY 2020 represents nearly four times the appropriated $2.25 billion budget for the 94 U.S. Attorneys’ Offices.
The largest civil collections were from affirmative civil enforcement cases by the Office’s Affirmative Civil Enforcement Unit, which recovered government money lost to fraud or other offenses. Settlements with three pharmaceutical companies for illegal use of third-party foundations as conduits to pay kickbacks account for the office’s largest civil collections. In September 2020, Gilead Sciences paid $97 million and Novartis paid $51 million in July 2020, and Sanofi-Aventis paid $11.85 million in February.
In addition to these civil and criminal collections, in Fiscal Year 2020 the Office’s Asset Recovery Unit was responsible for the collection of $77,933,472 in restitution for crime victims, as well as forfeiture of $22,449,306 in criminal proceeds or other property involved in crimes. The Asset Recovery Unit locates, seizes, and forfeits proceeds of crime, including health care fraud, securities fraud, mail and wire fraud, drug trafficking, as well as money and property involved in money laundering. The Unit pursues forfeiture of ill-gotten gains both domestically and abroad and works closely with units across the Office and its law enforcement partners to ensure that crime doesn’t pay. Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Rhode Island Man Sentenced to Five Years in Prison for Distribution of Fentanyl and Fentanyl AnaloguesRead the Press Release
BOSTON – A Rhode Island man was sentenced yesterday in federal court in Boston in connection with his fentanyl and fentanyl analogue distribution activities in Rhode Island and Massachusetts.
Moises Rodrigues, 32, of Johnston, R.I., was sentenced by U.S. District Court Judge Allison D. Burroughs to 60 months in prison and four years of supervised release. In October 2020, Rodrigues pleaded guilty to conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl, 10 grams or more of acetyl fentanyl and carfentanil and three counts of distribution of fentanyl and/or acetyl fentanyl.
Rodrigues sold fentanyl and fentanyl analogues on five separate occasions and had a “runner”—co-defendant Robert Soucy—deliver the drugs for him on one occasion. According to the Drug Enforcement Administration, carfentanil is a synthetic opioid that is 10,000 times more potent than morphine and 100 times more potent than fentanyl, which itself is 50 times more potent than heroin.
In May 2020, Soucy was sentenced by Judge Burroughs to 16 months in prison.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Assistant U.S. Attorney Lauren Graber of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Rhode Island Man Pleads Guilty to Federal Ammunition ChargeRead the Press Release
BOSTON – A Providence, R.I. man pleaded guilty today to illegal possession of ammunition.
Paul Marino, 57, formerly of New Bedford, pleaded guilty to being a felon in possession of ammunition. Marino was arrested and charged in September 2020. U.S. District Court Judge Richard G. Stearns scheduled sentencing for May 20, 2021.
On various dates in September 2019, Marino attempted to purchase a handgun and silencer from a federal agent acting in an undercover capacity. During a search of Marino’s home in New Bedford on Sept. 26, 2019, agents seized three 9mm handgun magazines and 277 rounds of 9mm ammunition from a closet in Marino’s bedroom. The ammunition was in a FedEx box addressed to “Vincent Amoroso” in Rhode Island and bearing a return address in Tennessee. Agents also seized counterfeit Virginia identification documents in the names of Vincent Amoroso and Christian Bennington, each of which bore Marino’s photograph, and an American Express card in the name of Christian Bennington.
Due to a prior federal conviction for wire fraud, Marino is prohibited from possessing firearms or ammunition.
The charge of possessing ammunition after being convicted of a felony provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of a $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The New Bedford Police Department provided assistance with the investigation. Assistant U.S. Attorney Bill Abely, Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
Providence Man Indicted on Firearms Trafficking ChargeRead the Press Release
BOSTON – A Providence, R.I. man was indicted by a federal grand jury today on a firearms trafficking charge.
Chiweze Ihunwo, 24, previously of Randolph, Mass., was indicted on one count of engaging in the business of dealing in firearms without a license. Ihunwo was arrested and charged by criminal complaint in November 2020 and has been detained since.
According to charging documents, Ihunwo acquired numerous firearms in North Carolina and then re-sold them for a profit. In addition, Ihunwo allegedly made arrangements to sell firearms to a person who was soon thereafter arrested in connection with a June 23, 2020 shooting incident on I-95 in Providence, R.I. According to the charging documents, Ihunwo also made numerous social media posts referencing firearms or ammunition.
During a search of Ihunwo’s residence in Providence, an AK-style handgun and various rounds of ammunition were recovered.
The charge of dealing in firearms without a license carries 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.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives made the announcement. Assistance was provided by the Randolph Police Department, the Providence Police Department and the Rhode Island State Police. Assistant U.S. Attorney Bill Abely, Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maine Man Arrested on Child Exploitation ChargesRead the Press Release
BOSTON – A Maine man was charged yesterday in federal court in Boston for travelling to have sex with a minor and child pornography offenses.
Patrick Plummer, 29, of Parsonsfield, Maine, was charged in a criminal complaint with traveling with intent to engage in illicit sexual conduct with a person under 18 years of age and transportation of child pornography.
According to the complaint, Plummer communicated via various messaging applications with an undercover officer posing as a 13-year-old girl and devised a plan to meet the purported child in Georgetown, Mass. to have sex. On Sept. 26, 2020, Plummer allegedly drove from Maine to a predetermined location in Georgetown, as they had planned. Officers arrested Plummer on scene, and found him in possession of four cell phones, a computer and a spring-release knife. Preliminary analysis of the electronic evidence seized from Plummer’s car revealed in excess of 100 images and videos of child pornography on at least three of the devices. Preliminary analysis also revealed evidence that Plummer was logged into the account from which he had communicated with the undercover officer. Forensic analysis of the devices is ongoing.
According to court documents, Plummer admitted that he had traveled from Maine to meet the purported 13-year-old girl, that he was talking to approximately 10 underaged girls and that investigators would find child pornography on his devices.
The charge of traveling with intent to engage in illicit sexual conduct with a minor provides for a sentence of up to 30 years in prison, a minimum of five years and up to life in prison and a fine of up to $250,000. The charge of transportation of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, a minimum of five years and up to life in prison 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.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Georgetown Police Chief Donald C. Cudmore made the announcement today. The Essex County District Attorney’s Office provided assistance with the investigation. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and Deputy Chief of the Major Crimes Unit, is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former State Regional Officer of Latin Kings Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former Regional Officer for the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering charges.
Michael Cotto, a/k/a “King Gordo,” 26, 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 April 28, 2021.
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.
Cotto, a former member of the New Bedford Chapter, admitted to his role in the drug distribution activity of the Latin Kings in New Bedford, and a variety of violent acts committed in furtherance of the Latin Kings. One such violent act was a February 2018 beating, known as a “termination,” of an individual who was suspected of cooperating with law enforcement. The victim was found by New Bedford Police bleeding from his injuries and transported to the hospital.
Cotto also admitted to conspiring in August of 2018 to terminate a leader of the Fitchburg Chapter who was suspected of cooperating with law enforcement. On intercepted phone calls, Cotto discussed an elaborate ruse to trick this leader into attending a meeting at which he would be ambushed and beaten by other Latin Kings members.
In December 2018, a surveillance video depicted Cotto participating in a group assault of another individual. Cotto can be observed striking the victim with a baseball bat.
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. Cotto is the 30th 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.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field 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 Graber of Lelling’s Criminal Division 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 remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Department of Unemployment Assistance Employee and Husband Indicted on Fraud Charges Arising from Pandemic Unemployment ClaimsRead the Press Release
BOSTON – A married couple was indicted today by a federal grand jury in Boston on fraud charges arising from their claims for Pandemic Unemployment Assistance (PUA) funds.
Tiffany Pacheco, a/k/a Tiffany Tavery, 35, and Arthur Pacheco, 47, who, until recently, resided in New Bedford, Mass., were each indicted on one count of conspiracy to commit wire fraud. Tiffany Pacheco was also indicted on five counts of wire fraud and Arthur Pacheco on two counts. The defendants were arrested in San Antonio, Texas in December 2020 and have been detained since.
According to charging documents, Tiffany was hired by the Massachusetts Department of Unemployment Assistance (DUA) in April 2020, shortly after her release from federal prison following a conviction for aggravated identity theft. While employed by DUA, Tiffany allegedly misused her position to submit fraudulent PUA claim information on behalf of herself and her husband, Arthur, who was incarcerated in Texas until Sept. 4, 2020, and thus ineligible for PUA funds.
Specifically, it is alleged that in June 2020, PUA claims submitted for Tiffany and her husband reflected 2019 income of $0 and no dependents. In July 2020, via her employment with DUA, Tiffany obtained access to the PUA computer system, and later changed claim information for herself and Arthur so as to increase the amount of PUA funds they would receive. For example, Tiffany allegedly increased the amount of 2019 income for her and Arthur to more than $240,000, and increased the number of their dependents to seven. Tiffany further used her access to the PUA system to verify the increased reported 2019 income on both claims without the required income verification documents.
It is further alleged that the PUA claim for Arthur was fraudulent because he was incarcerated in Texas until Sept. 4, 2020, and thus ineligible for PUA funds. In November 2020, Arthur called DUA and falsely denied that he had been incarcerated during the timeframe leading up to September 2020, and that he was only incarcerated for approximately a month. Tiffany also spoke with DUA and misrepresented the period of time for which Arthur had been incarcerated.
A search of the New Bedford apartment where Tiffany and Arthur resided uncovered various tools of identity fraud, including an ID laminator, 100 blank ID cards, 68 hologram overlays, 150 card lamination sheets and 649 sheets of blank checks. Law enforcement also seized approximately $17,000 cash and a notebook that appeared to contain the personal identifying information of various individuals. On Sept. 23, 2020, DUA terminated Tiffany’s employment.
The charges of conspiracy to commit wire fraud and wire fraud provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
United States Attorney Andrew E. Lelling; William S. Waolker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation made the announcement. The New Bedford Police Department, Massachusetts Parole Board and Massachusetts Department of Unemployment Assistance, Program Integrity Unit provided valuable assistance with the investigation. Assistant U.S. Attorneys Bill Abely and Dustin Chao of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Pleads Guilty in Multi-Million Dollar Medicare Fraud SchemeRead the Press Release
BOSTON – A Florida man pleaded guilty today to his role in a multi-million dollar Medicare fraud scheme involving durable medical equipment.
Nathan LaParl, 34, of Boca Raton, Fla., pleaded guilty to one count of receiving kickbacks in connection with a federal health care program and one count of violating the HIPAA statute. U.S. Senior District Court Judge George A. O’Toole, Jr. scheduled sentencing for May 20, 2021.
According to charging documents, LaParl and co-defendant Talia Alexandre sold Medicare patients’ personal and medical data to Juan Camilo Perez Buitrago. LaParl and Alexandre worked with foreign call centers to contact Medicare patients to ask if they were interested in durable medical equipment (DME) such as arm, back, knee and shoulder braces “at little to no cost.” The call centers collected demographic and insurance information from Medicare patients, which LaParl and Alexandre sold to Perez. Together, LaParl and Alexandre received more than $1.6 million from Perez for the patient data. Perez Buitrago used that patient data to submit more than $109 million in false and fraudulent claims, submitting claims for DME that was not prescribed, not necessary, and, in many instances, never requested or received.
To perpetuate the scheme, LaParl checked Medicare patients’ insurance eligibility by improperly accessing a patient eligibility tool provided by co-defendant Stefanie Hirsch. Hirsch owned EI Medical, Inc., a Medicare-enrolled wheelchair and scooter repair company that qualified for access to a health care clearinghouse that contains Medicare patients’ personal, medical and insurance information. Hirsch improperly gave LaParl access to that clearinghouse and charged him about $0.25 per patient eligibility check. Using Hirsch’s credentials, LaParl accessed the personal and medical data of more than 350,000 patients.
In October 2020, Perez pleaded guilty to health care fraud and paying kickbacks in connection with a federal health care program and is scheduled to be sentenced on March 4, 2021. Alexandre and Hirsch are scheduled to plead guilty on Feb. 24, 2021.
Two other defendants, Jessica Jones and Elizabeth Putulin, pleaded guilty yesterday.
United States Attorney Andrew E. Lelling; Johnnie Sharp Jr., Special Agent in Charge of the Federal Bureau of Investigation, Birmingham Field Division; Phillip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General, Boston Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Elysa Q. Wan of Lelling’s Health Care Fraud Unit is prosecuting the case.
Dominican National Sentenced for Identify FraudRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for aggravated identity theft.
Luis Rafael Noble Diaz, 43, who previously resided in Brockton, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 35 months in prison and two years of supervised release. Noble Diaz will be subject to deportation proceedings upon completion of his sentence. In Sept. 2020, Noble Diaz pleaded guilty to false representation of a Social Security number and aggravated identity theft.
On Aug. 20, 2014, Noble Diaz submitted an application for an identification card at the Registry of Motor Vehicles office in Boston using the name, date of birth and Social Security number of a U.S. citizen from Puerto Rico. Noble Diaz is a citizen on the Dominican Republic and in the United States without legal authority. At the time he submitted the fraudulent RMV application, Noble Diaz was on supervised release after serving a 10-year federal prison sentence for distributing heroin and cocaine base, commonly referred to as crack. After he was charged in this case, Noble Diaz was sentenced to 10 months in federal prison for violating the conditions of his supervised release.
United States Attorney Andrew E. Lelling and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Sentenced for Drug Trafficking ChargesRead the Press Release
BOSTON – A Utah-based cocaine trafficker was sentenced today in federal court in Boston after previously being convicted by a federal jury.
Droel Jared Encarnacion, 28, of Medford, Mass. and Salt Lake City, Utah, was sentenced by U.S. District Court Judge Allison D. Burroughs to one year and one day in prison and three years of supervised release. In October 2020, Encarnacion was convicted following a jury trial of conspiracy to possess with intent to distribute cocaine and possession with intent to distribute cocaine.
In August and September 2018, federal investigators were conducting a wiretap investigation into Encarnacion and his co-conspirator, Robin Manuel Suazo, who lived in Lynn, Mass. The two men discussed their fentanyl and cocaine distribution activities in several calls and discussed shipping drugs from Utah to Boston. On Sept. 17, 2018, Encarnacion shipped, via, FedEx, a package containing approximately 427 grams of cocaine from his home in Utah to his mother’s address in Medford, Mass. Encarnacion then flew to Boston to pick up the cocaine. Agents stopped the two men as they drove together in a vehicle toward Lynn, and located the FedEx package of cocaine in the vehicle, showing Encarnacion as the sender of the package.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant United States Attorneys Lauren A. Graber and Jared Dolan of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Dominican National Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to fentanyl trafficking.
Andres Arias, 48, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl and five counts of distribution of and possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 20, 2021.
According to court documents, Arias and his co-defendant Cristian Lara Diaz, conspired to distribute fentanyl and engaged in five separate controlled sales of fentanyl to a cooperating witness for the government in Boston between April 2017 and January 2018.
On Jan. 12, 2021, Lara Diaz was sentenced to 63 months in prison and four years of supervised release.
The charge of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl carries a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charges of distribution of and possession with the intent to distribute 40 grams or more of fentanyl carry 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 up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
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.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Two Men Indicted on Fraud Charges Involving Small Business Administration Disaster FundsRead the Press Release
BOSTON – A Lawrence man and a Methuen man were indicted yesterday by a federal grand jury in connection with a scheme involving the use of stolen identities to fraudulently obtain Economic Injury Disaster Loans from the Small Business Administration (SBA) and to launder the funds.
Darwyn Joseph, 24, of Lawrence, and Ramon Joseph Cruz, Jr., 24, of Methuen, were each indicted on one count of conspiracy to commit wire fraud, four counts of wire fraud and aiding and abetting and one count of aggravated identity theft. The defendants were charged by criminal complaint and arrested in December 2020.
According to the charging documents, the defendants were involved in a conspiracy to use stolen identity information of United States citizens to apply for SBA Economic Injury Disaster Loans. Specifically, Joseph and Cruz used stolen identity information of U.S. citizens to open fraudulent bank accounts which were then linked to other fraudulent bank accounts set up to receive the SBA funds. Joseph and Cruz also received through the mail some of the debit cards associated with fraudulent bank accounts into which SBA funds were deposited, and then laundered those funds by using them to purchase large numbers of iPhones for re-sale. Joseph and Cruz also wired a portion of the funds to the Dominican Republic in furtherance of the scheme.
It is alleged that over $452,000 in SBA funds were fraudulently obtained in connection with this scheme. Approximately $250,000 of this money was used to purchase iPhones in Massachusetts and New Hampshire.
The charges of wire fraud and conspiracy to commit wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Assistant U.S. Attorneys Elianna Nuzum and Adam Deitch of Lelling’s Major Crimes Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Defendants Plead Guilty to Multi-Million Dollar Medicare Fraud SchemeRead the Press Release
BOSTON – A Colorado woman and a Florida woman pleaded guilty today in connection with a multi-million dollar Medicare fraud scheme.
Jessica Jones, 30, of Louisville Colo., and Elizabeth Putulin, 30, of Coconut Creek, Fla., each pleaded guilty to one count of conspiracy to commit health care fraud. U.S. District Court Senior Judge George A. O’Toole, Jr. scheduled sentencing for May 19, 2021.
Jones and Putulin conspired with Juan Camilo Perez Buitrago to submit more than $109 million in false and fraudulent claims for durable medical equipment (DME) such as arm, back, knee and shoulder braces. In October 2020, Perez pleaded guilty to health care fraud and paying kickbacks in connection with a federal health care program and is scheduled to be sentenced on March 4, 2021.
Jones and Putulin helped Perez manufacture and submit false and fraudulent Medicare claims by establishing shell companies in more than a dozen different states, including Massachusetts. Perez directed employees, including Jones and Putulin, to list his mother, wife and yacht captain as corporate directors and to use fictitious names when registering the shell companies as DME providers. At Perez’s request, Jones and Putulin purchased Medicare patient data from foreign and domestic call centers that targeted elderly patients, and instructed call centers to contact the Medicare beneficiaries with an offer of ankle, arm, back, knee and/or shoulder braces “at little to no cost.” Perez then submitted Medicare claims for those patients without obtaining a prescriber’s order to ensure that the braces were medically necessary. It is further alleged that he submitted blatantly fraudulent claims, including claims for deceased patients and repeat claims for the same patient and the same DME. Perez failed to provide any DME for more than $7.5 million in claims. When Perez did provide DME to patients, he typically billed insurance policies more than 12 times the average price of the DME that he provided to the patient.
Jones and Putulin further facilitated the fraud by answering frequent phone calls from Medicare patients who received DME that they did not request, want or need. Jones and Putulin also responded to insurance companies’ requests for prescriber’s orders and medical records, which they were unable to provide.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Johnnie Sharp Jr., Special Agent in Charge of the Federal Bureau of Investigation, Birmingham Field Division; Phillip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General, Boston Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Elysa Q. Wan of Lelling’s Health Care Fraud Unit is prosecuting the case.
MIT Professor Indicted on Charges Relating to Grant FraudRead the Press Release
BOSTON – A professor and researcher at Massachusetts Institute of Technology (MIT) was indicted yesterday by a federal grand jury in connection with failing to disclose contracts, appointments and awards from various entities in the People’s Republic of China (PRC) to the U.S. Department of Energy.
Gang Chen, 56, was indicted on two counts of wire fraud, one count of failing to file a foreign bank account report (FBAR) and one count of making a false statement in a tax return. Chen was charged by criminal complaint and arrested on Jan. 14, 2021.
According to charging documents, Chen is a naturalized U.S. citizen who was born in China. He is a professor and researcher at MIT where he serves as Director of the MIT Pappalardo Micro/Nano Engineering Laboratory and Director of the Solid-State Solar Thermal Energy Conversion Center (S3TEC). Since approximately 2013, Chen’s research at MIT has been funded by nearly $19 million in grants awarded by various U.S. federal agencies.
Since 2012, Chen has allegedly held various appointments with the PRC designed to promote the PRC’s technological and scientific development by providing advice and expertise – sometimes directly to PRC government officials – and often in exchange for financial compensation. This includes acting as an “overseas expert” for the PRC government at the request of the PRC Consulate Office in New York and serving as a member of at least two PRC Talent Programs. Since 2013, Chen allegedly received approximately $29 million of foreign funding, including $19 million from the PRC’s Southern University of Science and Technology (SUSTech).
From at least 2017 to 2019 when Chen was serving in several advisory roles for the PRC and PRC entities, Chen applied for and obtained a U.S. Department of Energy (DOE) grant in order to fund a portion of his research at MIT. In doing so, it is alleged that Chen failed to disclose information about his ongoing affiliations with the PRC as required by DOE.
Chen also allegedly failed to disclose to the IRS in his 2018 tax return that he maintained a bank account in the PRC with more than $10,000 in 2018.
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 making false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of failing to file an FBAR provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Patrick J. Hegarty, Special Agent in Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigation, Boston; Ramsey Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Jim Breckenridge, Special Agent in Charge of the Department of Energy, Office of Inspector General made the announcement today. Assistant U.S. Attorneys B. Stephanie Siegmann, Chief of Lelling’s National Security Unit, and Jason Casey and Timothy Kistner also of Lelling’s National Security Unit are prosecuting the case with assistance from Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section.
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.
UPDATE: Criminal charges against the defendant in this case were dismissed in January 2022.
Former Member of New Bedford Latin Kings Chapter Sentenced for Racketeering Conspiracy ChargesRead the Press Release
A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today on racketeering charges. The defendant admitted to his role in a May 28, 2019 incident in New Bedford, when a rival gang member was shot at.
Luis Santiago, a/k/a “King Tiny,” 22, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 46 months in prison and three years of supervised release. In September 2020, Santiago pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Santiago admitted that on May 28, 2019, he was one of multiple members of the Latin Kings who travelled to Dartmouth Street in New Bedford to confront and assault rival gang members. For this incident, Santiago was provided with a firearm by another member of the gang. The confrontation began as a fight, but at some point Santiago pulled out the firearm and began to chase the rival gang members. Santiago fired one shot at the fleeing rival gang members, missing and striking a parked vehicle.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Santiago is the 13th defendant to be sentenced in the case.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Miciof 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 Graber of Lelling’s Criminal Division 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.
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 Member of Boston Latin Kings Chapter Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – A former member of the Boston-based Morton Street Bricks Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering charges.
Alexis Velasquez, a/k/a “King Booboo,” 32, 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 May 5, 2021.
Named for the Morton Street housing project in Boston, the Morton Street Bricks or MSB Chapter of the Latin Kings, 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. In addition to conspiring with members of the Latin Kings to further the goals of the enterprise by committing criminal acts, Alexis Velasquez personally participated in an attack against a rival gang member in prison in 2010, and attempted to murder a different 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 issued an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Alexis Velasquez is the 29th 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.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field 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 Graber of Lelling’s Criminal Division 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 remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Braintree Man Sentenced for Fentanyl and Carfentanil ConspiracyRead the Press Release
BOSTON - A Braintree man was sentenced today in federal court in Boston for conspiracy to distribute fentanyl and carfentanil.
David Fernandes, 33, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 30 months in prison, three years of supervised release and ordered to pay a fine of $1,000.
From May 2019 through August 2019, David Fernandes and co-defendants Rickey Depina, Keanu Fernandes and Viviana Fontes conspired to distribute fentanyl and carfentanil in Brockton, Abington, Boston, Braintree, Easton, Fall River, Holbrook, Norton, Quincy, Raynham, South Easton, West Bridgewater and Whitman. During this time, law enforcement made controlled purchases of fentanyl and carfentanil on multiple occasions. On Oct. 1, 2018, law enforcement stopped a car in which David Fernandes, Depina and Fontes were traveling and recovered over 17 grams of fentanyl, approximately $1,750 and four cellular phones. They were arrested on state charges. In search warrants executed later that day, law enforcement recovered another $10,000.
Co-defendants Depina, 32, of Brockton; Keanu Fernandes, 33, of Brockton; and Fontes, 30, of Brockton, previously pleaded guilty to the conspiracy charge. On Sept. 20, 2020, Depina was sentenced to 30 months in prison and three years of supervised release. On Jan. 12, 2021, Keanue Fernandes was sentenced to one year and one day in prison and three years of supervised release. Fontes has yet to be sentenced.
According to the Drug Enforcement Administration, carfentanil is an analog of fentanyl and approximately 10,000 times more potent than morphine and 100 times more potent than fentanyl. It is used commercially in tranquilizer darts for large mammals such as elk or elephants and can be lethal in a dose as small as 2 milligrams.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Brockton Police Chief Emanuel Gomes made the announcement today. Assistant U.S. Attorneys Timothy Moran and Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit are prosecuting the case.
New Bedford Member of the Latin Kings Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
BOSTON – A member of the New Bedford Chapter of the Almighty Latin King and Queen Nation was sentenced today for being a felon in possession of a firearm as a result of a federal investigation into a shooting on April 19, 2020, in New Bedford.
Alexander Pizarro, a/k/a “King Tego,” 28, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 42 months in prison and three years of supervised release. In September 2020, Pizarro pleaded guilty to one count of being a felon in possession of a firearm.
On April 19, 2020, police responded to a report of seven shots fired near a residence on Clark Street in New Bedford. During the response, police located a tan and black Taurus 9mm firearm in an alleyway near the residence. Based on information received from a 911 caller, police were directed to an apartment and located Pizarro. After searching his cell phone, investigators located a photograph of Pizarro in the apartment holding what appeared to be the same firearm that was recovered from Clark Street. This photograph was taken approximately two hours before the shots-fired incident. Through ballistics comparison, the seized firearm was matched to the recovered shell casings from the shooting that evening.
Due to multiple prior convictions, Pizarro is prohibited from possessing firearms. According to court documents, Pizarro was known to investigators to be a member of the New Bedford Chapter of the Latin Kings, and had recently posted multiple pictures holding firearms to his SnapChat account. At the time of the shooting incident, Pizarro was on probation for a 2017 firearms conviction in Rhode Island.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Assistant U.S. Attorney Philip A. Mallard of Lelling’s Organized Crime and Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Sessions 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.
Government Contractor Sentenced for Fraudulently Billing Federal and State Construction ContractsRead the Press Release
BOSTON – VJ Associates, Inc. of Suffolk, based on Hicksville, N.Y., pleaded guilty and was sentenced today on criminal and civil charges relating to a long-running overbilling scheme involving numerous government-funded construction projects in Massachusetts and New York.
VJ Associates, Inc. of Suffolk pleaded guilty to conspiracy to commit wire fraud and was sentenced by U.S. District Court Judge Denise J. Casper to pay nearly $1.3 million in restitution and a fine of $530,000. Between this sentence and related civil settlements, VJ Associates, Inc. of Suffolk and its affiliated companies (collectively VJ Associates) will pay a total of $3.13 million in criminal and civil fines and restitution and be debarred permanently from participating in contracts funded by the U.S. Department of Transportation (DOT).
VJ Associates provided sub-contracted estimating and scheduling services for construction projects funded with state and federal money. Services included forecasting costs and resources to complete a project, and estimating the time necessary to complete milestones in a project. VJ Associates employees frequently billed government contracts hourly for their time. The DOT, the State of New York and the Commonwealth of Massachusetts funded many projects on which VJ Associates worked.
From at least January 2007 through August 2018, VJ Associates, Inc. of Suffolk—the largest and original VJ Associates entity—conspired with other VJ Associates entities and employees to pad bogus time charges on government construction contracts funded by the DOT, the State of New York and the Commonwealth of Massachusetts. As a result, the VJ Associates entities improperly received nearly $1.3 million in state and federal taxpayer money. The improper billing included, for example, hours employees spent working on unrelated projects, time spent on administrative tasks and time doing no work. Under pressure from management, employees openly discussed improper billing as “juicing” and “tagging” hours in order to “maximize” bills on government projects and not “leave money on the table.” One employee summed up his billing practices to his colleague as a “shell game” and explained that, when management “gave him a bit of trouble” about how he billed his time, he fraudulently maximized his hours billed because “what the hell,” management “pay[s] me every two weeks,” and he was “not the boss.”
The related civil settlement with the United States arose from a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. In connection with settlement with the United States, the whistleblower will receive 22.5% of the recovery.
The government’s resolution of this matter illustrates the government’s emphasis on combating fraud related to government-funded transportation projects. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Transportation, at 1-800-424-9071.
United States Attorney Andrew E. Lelling; Douglas Shoemaker, Regional Special Agent in Charge of the U.S. Department of Transportation Office of Inspector General; and Port Authority of New York and New Jersey Acting Inspector General Farbiarz made the announcement today. Assistant United States Attorneys Brian M. LaMacchia and Evan Gotlob of Lelling’s Office handled the matter.
Boston Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
BOSTON – A Boston man was sentenced today for being a felon in possession of a loaded semi-automatic pistol.
Kyvon Ross, a/k/a Ky-von Ross, 22, was sentenced by U.S. District Court Judge Allison D. Burroughs to 23 months in prison and three years of supervised release. In September 2020, Ross pleaded guilty to being a felon in possession of a firearm and ammunition.
Ross possessed a Beretta .380 caliber semi-automatic pistol and 10 rounds of ammunition on May 31, 2019, in Boston. Ross was subsequently arrested and has been in custody since. Ross is prohibited from possessing a firearm or ammunition due to a prior felony conviction.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; and Boston Police Commissioner William G. Gross made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit prosecuted the case.
Worcester Man Arrested for Purchasing MBTA Passes Using Others’ IdentitiesRead the Press Release
BOSTON – A Worcester man was arrested on Wednesday, Jan. 13, 2021 on charges of wire fraud and aggravated identity theft in connection with using stolen identities to fraudulently purchase MBTA passes.
Kokou Kuakumensah, 31, was charged with four counts of wire fraud and four counts of aggravated identity theft.
According to charging documents, between approximately January 2019 and March 2020, Kuakumensah used other individuals’ credit card accounts to fraudulently purchase MBTA commuter rail passes. Kuakumensah then re-sold these passes for less than their face value, including advertising the passes on Craiglist.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. 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. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations; and Chief Kenneth Green of the MBTA Transit Police made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Uxbridge Doctor Sentenced to Seven Years in Prison for Conspiring to Distribute over 3.5 Kilograms of AmphetaminesRead the Press Release
BOSTON – An Uxbridge doctor was sentenced on Wednesday, Jan. 13, 2020 in connection with her role in a scheme to prescribe Adderall to individuals without a legitimate medical purpose.
Leslie Caraceni M.D., 58, was sentenced by U.S. District Court Judge Timothy S. Hillman to seven years in prison and three years of supervised release. In February 2019, Caraceni pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute Adderall and three counts of distributing and dispensing Adderall in August 2020.
Caraceni was indicted in November 2018 along with Rene Ruliera, 52, of Southborough, who pleaded guilty in August 2019 and is scheduled to be sentenced on Feb. 24, 2021. Co-conspirator Meghan Giacomuzzi, 37, of Whitinsville, pleaded guilty in February 2019 and is scheduled to be sentenced on April 15, 2021.
Between March 2016 and February 2018, Caraceni, Ruliera and Giacomuzzi conspired to distribute Adderall, an amphetamine, for reasons other than for a legitimate medical purpose and not in the usual course of medical practice. Caraceni hired both Ruliera and Giacomuzzi to work at her medical practice in Framingham and later in Whitinsville, and enlisted both in a conspiracy to sell and distribute Adderall to individuals who had not been medically examined or given a clinical diagnosis to warrant a prescription. Office visitors met with either Ruliera or Giacomuzzi, discussed their desired prescription, paid for their office visit, and left with a signed prescription for Adderall. Office visits lasted just minutes and each such visit cost approximately $200, payable in cash or through a credit card or debit card. Caraceni collected the cash from the office or received funds through deposits to her bank account.
Caraceni provided Ruliera and Giacomuzzi with blank prescription pads and explained how to fill out prescriptions for sale. Electronic communications between the defendants documented Caraceni’s knowledge of the prescriptions written by Ruliera and Giacomuzzi, the number of office visitors seen in her absence, and the volume of proceeds realized as result of their sale of prescriptions to those visitors. Between November 2015 and July 2018, records from the Massachusetts Prescription Monitoring Program show that well over 1,500 prescriptions for Adderall—amounting to over 110,000 pills—were filled in Massachusetts alone based on Caraceni’s prescriptions.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Uxbridge Police Chief Marc Montminy; and Southborough Police Chief Kenneth Paulhus made the announcement. Assistant U.S. Attorney Craig Estes of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
North Adams Man Sentenced to 60 Years in Prison for Child Exploitation OffensesRead the Press Release
BOSTON – A North Adams man was sentenced yesterday in federal court in Springfield to 60 years in prison today for child exploitation offenses.
Anthony Deordio, 46, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 60 years in prison and a lifetime of supervised release. In August 2020, Deordio pleaded guilty to one count of sexual exploitation of a minor, three counts of advertising child pornography, two counts of distribution of child pornography, two counts of transportation of child pornography, one count of receipt of child pornography and one count of possession of child pornography.
In November 2017, Deordio used a minor victim to produce child pornography. The video file he produced was later recovered in a separate jurisdiction, and further investigation led to the identification of Deordio as the perpetrator. He was also convicted of offering to sell child pornography on the internet, distributing child pornography over the internet and receiving and possessing child pornography.
Deordio was previously convicted of possession of child pornography in Massachusetts state court in 2006.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and North Adams Police Chief Jason Wood made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Georgia Man Pleads Guilty to Felon in Possession of Firearm and Ammunition ChargeRead the Press Release
BOSTON – A Georgia man pleaded guilty on Wednesday, Jan. 15, 2021 in federal court in Boston to illegal possession of a semi-automatic pistol.
Herbert Palmer, 39, of Decatur, Ga., pleaded guilty to one count of being a felon in possession of a firearm and ammunition before U.S. District Court Judge Denise J. Casper, who scheduled sentencing for May 13, 2021.
On Aug. 12, 2020, police were dispatched to an apartment in New Bedford following a report of a disturbance where a man had a gun and was pointing it to a woman’s head. After police arrived, the man, later identified as Palmer, exited the apartment and told police that he had a knife on his person. A search of Palmer revealed he had a folding knife and firearm magazine loaded with four rounds of .380 caliber ammunition, which Palmer claimed to be carrying because it did not fit his BB gun, although he denied having a gun.
A witness informed police that Palmer had pointed a small black gun at individuals while inside the apartment that evening and that when Palmer manipulated the firearm, the magazine dropped out of the handgun and fell to the floor. Palmer picked up the magazine and then proceeded to the second floor to change his clothing. Police searched the apartment and located a Lorcin, Model 380. .380 caliber semi-automatic pistol in a second-floor bedroom. Authorities confirmed the ammunition recovered from Palmer’s person was the same caliber as the firearm.
According to court documents, Palmer was convicted in 2010 of assault and battery with a dangerous weapon, and is therefore prohibited from possessing firearms and ammunition.
The charging statute provides for sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
Project Safe Neighborhoods (PSN) is 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.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
Fitchburg Man Sentenced to 38 Years in Prison for Child Exploitation OffensesRead the Press Release
BOSTON – A Fitchburg man was sentenced today on enticement of a minor and child pornography charges in federal court in Worcester.
Ryan Decarolis, 27, was sentenced by U.S. District Court Judge Timothy S. Hillman to 38 years in prison and a lifetime of supervised release. The government recommend a sentence of 85 years in prison.
In September 2020, Decarolis pleaded guilty to five counts of sexual exploitation of a minor, two counts of distribution of child pornography and one count of possession of child pornography. Decarolis has been in custody since his arrest on Aug. 2, 2019.
Decarolis admitted that he used a social media account to communicate with an individual who was subsequently charged with production and distribution of child pornography. With the consent of that individual, an undercover federal agent assumed control of that individual’s account and began communicating in an undercover capacity with Decarolis. In January 2019, Decarolis distributed child pornography to the undercover officer, and in April 2019, Decarolis provided the undercover officer with access to his Dropbox account, which contained hundreds of images and videos depicting child pornography. Included in that material was at least one video that depicted Decarolis sexually assaulting a young boy.
In August 2019, during a search of Decarolis’s Fitchburg residence, agents seized a tablet belonging to Decarolis that contained additional videos depicting child pornography. A second Dropbox account used by Decarolis was also discovered that contained videos depicting the sexual exploitation of several children. Included within that material were numerous images and videos that Decarolis produced himself, some of which depicted Decarolis separately sexually assaulting at least three boys under the age of 12 and a fourth boy who was 12 years old.
United States Attorney Andrew E. Lelling; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations, Boston Field Division; and Fitchburg Police Chief Ernest F. Martineau made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s 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 Sentenced for Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced on Tuesday, Jan. 12, 2021 in federal court in Boston for fentanyl trafficking.
Cristian Lara Diaz, 44, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 63 months in prison and four years of supervised release. In September 2020, Lara Diaz pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl and five counts of distribution of and possession with intent to distribute 40 grams or more of fentanyl.
Lara Diaz and his co-defendant, Andres Arias, conspired to distribute fentanyl and engaged in five separate sales of fentanyl to a cooperating witness in Boston between April 2017 and January 2018.
Arias is scheduled to plead guilty on Jan. 21, 2021.
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.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Gross made the announcement. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Convicted Felon from Worcester Indicted for Crack Cocaine and Firearm OffensesRead the Press Release
BOSTON – A Worcester man was indicted yesterday by a federal grand jury on charges of drug and firearm possession.
Rodney Hall, 36, was indicted on possession with intent to distribute more than 280 grams of cocaine base and being a felon in possession of a firearm. Hall was charged by criminal complaint in December 2020.
According to charging documents, on Sept. 30, 2020, Hall was arrested after he sold approximately 14 grams of crack cocaine for $1,500 to an individual in Worcester. At the time of his arrest, Hall had approximately $2,300 in cash, two cell phones and a key to a Mercedes-Benz.
A search of Hall’s residence resulted in the seizure of approximately 650 grams of cocaine, a loaded 9 mm Beretta semi-automatic pistol, a homemade pistol, ammunition, a digital scale, plastic baggies and approximately $7,000 in cash. Hall is prohibited from possessing a firearm due to his criminal history, which includes previous convictions for possession of a large capacity weapon and trafficking cocaine
Due to Hall’s prior conviction for drug trafficking, if convicted of the new drug offense, he faces a minimum sentence of 15 years and up to life in prison, at least 10 years and up to life of supervised release and a fine of up to $15 million. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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.
Clinton and Fitchburg Men Arrested on Mail Fraud and Employment Tax ChargesRead the Press Release
BOSTON – A Clinton man and Fitchburg man were arrested yesterday and charged in connection with their involvement in an employment tax and mail fraud scheme.
Juliano Fernandes, 39, of Clinton, was charged with 11 counts of failure to pay over employment taxes and two counts of mail fraud. Anderson Dos Santos, 36, of Fitchburg, was charged with one count of mail fraud.
According to the charging documents, Fernandes exercised management and control over Force Corporation and AB Construction, both Massachusetts-based construction companies. Between 2015 and 2017, Fernandes failed to account for and pay over employment taxes for Force Corporation and AB Construction to the IRS. In addition, from approximately April 2013 through January 2017, Fernandes allegedly engaged in a scheme to defraud worker’s compensation insurance carriers for Force by misrepresenting the number of employees and amount of wages paid to Force employees. Similarly, from December 2013 to April 2016, Fernandes and Dos Santos engaged in a scheme to defraud worker’s compensation insurance carriers for AB Construction by misrepresenting the number of employees and amount of wages paid to AB Construction employees.
The charge of mail fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of failure to pay over employment taxes provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joleen Simpson, Acting Special Agent in Charge of Internal Revenue Service’s Criminal Investigation; Michael Mikulk, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office 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.
Cambridge Man Sentenced for Gun and Cocaine Trafficking ChargesRead the Press Release
BOSTON – A Cambridge man was sentenced yesterday on firearms trafficking charges. Defendant illegally sold 12 firearms as well as crack cocaine.
Ezequiel Netzahualt, 25, was sentenced by U.S. District Court Judge Leo T. Sorokin to 30 months in prison and three years of supervised release. In August 2020, Netzahualt pleaded guilty to dealing firearms without a license and selling cocaine base, commonly known as crack cocaine.
From September until January of 2021 Netzahualt sold 12 firearms on six separate occasions. Netzahualt also sold crack cocaine on Nov. 20, 2019.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boson Field Office; and Cambridge Police Commissioner Branville G. Bard Jr. made the announcement. Assistant U.S. Attorney Evan Gotlob of Lelling’s Major Crimes Unit prosecuted the case.
Brockton Man Sentenced to Nine Years for Drug and Firearm OffensesRead the Press Release
BOSTON – A Brockton man was sentenced yesterday in federal court in Boston for illegally possessing a semi-automatic handgun, ammunition, cocaine and fentanyl.
Nelsy Dasilva, 25, was sentenced by U.S. District Court Judge Patti B. Saris to nine years in prison and six years of supervised release. In October 2020, Dasilva pleaded guilty to one count of possession with intent to distribute cocaine and fentanyl and one count of possession of a firearm in furtherance of a drug trafficking crime. Dasilva has been in custody since his arrest in November 2018.
On Nov. 14, 2018, following an investigation into drug distribution in and around Brockton, a search was executed at Dasilva’s apartment where approximately 20 grams of cocaine, two grams of fentanyl, a .380 caliber Jimenez Arms Inc., T-380 semi-automatic handgun and six rounds of .380 caliber ammunition were recovered. Dasilva has a prior felony conviction for assault with the intent to murder, as well convictions for possession with the intent to distribute a controlled substance, criminal possession of a loaded firearm and assault with a dangerous weapon. Due to these prior convictions, Dasilva is prohibited from possessing a firearm and ammunition.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; and Brockton Police Chief Emanuel Gomes made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit 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.
MIT Professor Arrested and Charged with Grant FraudRead the Press Release
BOSTON – A professor and researcher at Massachusetts Institute of Technology (MIT) was charged and arrested today in connection with failing to disclose contracts, appointments and awards from various entities in the People’s Republic of China (PRC) to the U.S. Department of Energy.
Gang Chen, 56, was charged by criminal complaint with wire fraud, failing to file a foreign bank account report (FBAR) and making a false statement in a tax return. Chen will make an initial appearance today before Magistrate Judge Donald L. Cabell.
According to charging documents, Chen is a naturalized U.S. citizen who was born in China. He is a professor and researcher at MIT where he serves as Director of the MIT Pappalardo Micro/Nano Engineering Laboratory and Director of the Solid-State Solar Thermal Energy Conversion Center (S3TEC). Since approximately 2013, Chen’s research at MIT has been funded by more than $19 million in grants awarded by various U.S. federal agencies.
Since 2012, Chen has allegedly held various appointments with the PRC designed to promote the PRC’s technological and scientific development by providing advice and expertise – sometimes directly to PRC government officials – and often in exchange for financial compensation. This includes acting as an “overseas expert” for the PRC government at the request of the PRC Consulate Office in New York and serving as a member of at least two PRC Talent Programs. Since 2013, Chen allegedly received approximately $29 million of foreign funding, including $19 million from the PRC’s Southern University of Science and Technology (SUSTech).
It is further alleged that Chen’s efforts to promote the PRC’s scientific and economic development were partially detailed in a February 2016 email that Chen sent himself using his MIT e-mail account. The email read:
1. promote chinese collaboration
2. China places innovation (scientific) as key and core not fashion [sic], but because
we must do it, from historic trend as well from our stage
3. our economy is no. 2, but from technology (structure of economy) and human
resources, we are far from no. 2
4. we are paying big price in environment, not sustainable, as well as from labor cost
5. environment protection and development in same place, environment even higher, clean energy if higher cost, reduce steel, cement. We must count on technology, cannot grow as past
6. communist 18th convention, scientific innovation placed at core. We realize not just independent innovation; but also internationalize to plan for and facilitate. Closed door innovation does not work; innovation as driving force
From at least 2017 to 2019 when Chen was serving in several advisory roles for the PRC and PRC entities, Chen applied for and obtained a U.S. Department of Energy (DOE) grant in order to fund a portion of his research at MIT. In doing so, it is alleged that Chen failed to disclose information about his ongoing affiliations with the PRC as required by DOE.
Chen also allegedly failed to disclose to the IRS in his 2018 tax return that he maintained a bank account in the PRC with more than $10,000 in 2018.
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 making false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of failing to file an FBAR provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Patrick J. Hegarty, Special Agent in Charge of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigation, Boston; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Jim Breckenridge, Special Agent in Charge of the Department of Energy, Office of Inspector General made the announcement today. Assistant U.S. Attorneys B. Stephanie Siegmann, Chief of Lelling’s National Security Unit, and Jason Casey and Timothy Kistner also of Lelling’s National Security Unit are prosecuting the case with assistance from Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section.
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.
UPDATE: Criminal charges against the defendant in this case were dismissed in January 2022.
Hyde Park Man Indicted on Bank Robbery ChargeRead the Press Release
BOSTON – A Hyde Park man was indicted today by a grand jury in Boston in connection with robbing a Citizen’s Bank in Concord.
Angel Robles, 36, was indicted on one count of armed bank robbery. Robles was charged by criminal complaint in November 2020.
According to the indictment, on Nov. 9, 2020, Robles entered the Citizen’s Bank in Concord, gave the teller a note that read “ROBBERY, ONLY READY TO DIE ON A DEATH WISH,” stole approximately $358 and left the Bank.
The charge of bank robbery provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of Federal Bureau of Investigation, Boston Field Division; Lynn Police Chief Michael Mageary; Concord Police Chief Joseph F. O'Connor; and Saugus Police Chief Michael Ricciardelli made the announcement today. Assistant U.S. Attorney Evan Gotlob of Lelling’s Major Crimes Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Member of Boston Chapter of Latin Kings Sentenced for Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former member of the Boston-based Morton Street Bricks Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today for racketeering charges.
Oscar Pena, a/k/a “King DO-Block,” 29, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 32 months in prison and three years of supervised release. In August 2020, Pena pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Named for the Morton Street housing project in Boston, the MSB Chapter of the Latin Kings 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. In addition to conspiring with members of the Latin Kings to further the goals of the enterprise through the commission of criminal acts, Oscar Pena personally sold a cooperating witness approximately 38 grams of fentanyl.
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. Oscar Pena is the 12th defendant to be sentenced in the case.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Boston Police Commissioner William Gross made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Lelling’s Criminal Division 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.
Dominican National Sentenced for Drug TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for heroin trafficking.
Angel Martinez-Peguero, 30, who previously resided in Lawrence, was sentenced by U.S. District Court Judge Allison D. Burroughs to 10 years in prison and four years of supervised release.
In November 2020, Martinez-Peguero pleaded guilty to conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin and possession of a firearm in furtherance of a drug trafficking crime. In January 2019, Angel was charged along with his brother, Alexander Martinez-Peguero, 38, who was sentenced to 30 months in prison in December 2020.
On Dec. 20, 2018, investigators seized nearly one kilogram of heroin from the Martinez-Peguero brothers during a law enforcement operation in Lawrence. Investigators also seized a loaded semi-automatic pistol from Angel Martinez-Peguero’s waistband upon his arrest. During a search of the Martinez-Peguero brother’s residence agents seized over $15,000 cash and $17,000 worth of jewelry.
United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Methuen Man Indicted for Armed Bank RobberyRead the Press Release
BOSTON – A Methuen man was indicted on Monday, Jan. 11 by a federal grand jury on charges of armed bank robbery.
Caio Costa, 25, was indicted on one count of armed bank robbery and one count of using and carrying a firearm during the commission of a crime of violence.
According to charging documents, on Sept. 25, 2020, Costa, armed with a loaded revolver and donning a black motorcycle helmet, entered a branch of the Salem Five Bank in Tewksbury. Inside the bank, Costa brandished a black revolver and stole over $7,000. Following the robbery, Costa allegedly escaped on a black motorcycle. Law enforcement pursued Costa in a high-speed chase, reaching speeds up to 100 m.p.h. Costa eventually crashed the motorcycle in Lawrence and escaped on foot. Law enforcement later located the black motorcycle helmet and clothing consistent with that worn by Costa during the robbery. The next day, Costa was arrested at a Salem, N.H. motel. At the time of his arrest, Costa was in possession of a large sum of cash.
During an interview with law enforcement on Sept. 28, 2020, it is alleged that Costa admitted to robbing the Salem Five Bank three days earlier and committing four other armed bank robberies between Aug. 28 and Sept. 25, 2020. Costa directed law enforcement to a dumpster where a loaded black revolver, black gloves, a black backpack and other items of clothing used during the robbery were recovered.
The charge of armed bank robbery provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of up to $250,000. The charge of brandishing a firearm during the commission of a crime of violence provides for a mandatory sentence of seven years in prison to be served consecutive to any sentence on the armed robbery charges. Sentences are imposed by a federal district court judge based upon the Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Middlesex District Attorney Marian Ryan; Tewksbury Police Chief Ryan M. Columbus; Lowell Police Chief Christopher Hurst; Wilmington Police Chief Joseph Desmond; and Chelmsford Police Chief James M. Spinney made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Illinois Man Indicted on Production of Child Pornography ChargeRead the Press Release
BOSTON – An Illinois man was indicted yesterday by a federal grand jury in connection with producing child pornography.
Domenique Dequon Hines, 23, of Crystal Lake, Ill., was indicted on one count of production of child pornography. Hines was charged by criminal complaint and arrested in Illinois on Dec. 3, 2020.
According to the charging documents, Hines and a 14-year-old Massachusetts victim initially met on Instagram and exchanged phone numbers and began communicating via iMessage. A review of the iMessages revealed that Hines informed the victim that he is 23 years old and the victim confirmed her age. It is alleged that thereafter, at Hines request, the victim took sexually explicit photos of herself and sent them to Hines.
According to the criminal complaint, Hines was previously convicted of a child pornography offense in Illinois.
Due to Hines’s prior conviction, the charging statute provides for a mandatory minimum sentence of 25 years and up to 50 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; and Norfolk County District Attorney Michael Morrissey made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
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.