District of Massachusetts
Press releases recorded for this federal judicial district.
Former Boston Police Clerk Arrested for Overtime Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A former clerk for Boston Police Department’s (BPD) District A-1 Detectives Unit was arrested and charged today in connection with an investigation of overtime fraud at the Boston Police Department.
Marilyn Golisano, 68, was indicted on one count of embezzlement from an agency receiving federal funds, six counts of wire fraud and one count of aggravated identity theft. She will appear in federal court in Boston later today.
According to the indictment, the investigation revealed that Golisano, who handled the overtime paperwork for her unit, submitted dozens of false and fraudulent overtime slips on which she had forged the signatures of at least three different BPD supervisors. During the period of the alleged fraud, Golisano’s overtime compensation from the BPD more than doubled, increasing from just over $15,000 in 2016 to $26,000 in 2017 and to over $33,000 in 2018. This increase occurred despite the fact that Golisano’s duties did not change, her rate of pay did not significantly increase and no significant new overtime hours were approved by her supervisor. It is alleged that during several overtime shifts that Golisano claimed to be working in downtown Boston, she was actually miles away from Boston according to her cellphone’s geolocation records.
Golisano is alleged to have stolen $11,094 from BPD in 2017 and $18,090 in 2018.
“Rather than working in service of her community, Ms. Golisano did a disservice to taxpayers and to the reputation of her colleagues in law enforcement,” said United States Attorney Andrew E. Lelling. “The vast majority of law enforcement officers serve their communities honorably and with selflessness but, in those instances where public servants cross the line, we will not hesitate to get involved. I applaud the Boston Police Department for their commitment to rooting out corruption, and for their dedication to protecting the City day in and day out.”
“The public needs to know that they can trust law enforcement officials to be honest and trustworthy. Golisano’s alleged fraud and forgery undermines the public’s trust. The DOJ OIG will continue to hold those accountable who try to steal and cheat,” said Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General Washington Field Office.
“For years, Marilyn Golisano allegedly forged her supervisor’s signature and submitted scores of fraudulent overtime slips for work she did not do, cheating taxpayers out of at least $29,000. Her self-serving actions have not only eroded the morale of her hard-working co-workers at the Boston Police Department, but have the potential to undermine the public’s trust in civil servants,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “We would like to thank the Boston Police Department for bringing this matter to our attention, and for their shared commitment in rooting out public corruption.”
From 2016 through 2018, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of theft of government funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. 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 $250,000. The charging statute for aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release and a fine of up to $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, DOJ-OIG SAC Cunningham and FBI Boston SAC Bonavolonta made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Public Corruption Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Sentenced for False Identity CrimesRead the Press Release
BOSTON – A Dominican national who previously resided in Lawrence was sentenced yesterday in federal court in Boston for aggravated identity theft and fraudulent use of a Social Security number.
Robely Eladio De Jesus Guerrero, 32, was sentenced by U.S. District Court Judge Richard G. Stearns to two years and one day in prison. In May 2020, De Jesus Guerrero pleaded guilty to one count of aggravated identity theft and one count of false representation of a Social Security number.
On Jan. 4, 2016, De Jesus Guerrero used the name, date of birth and Social Security number of a U.S. citizen to submit a renewal application for a Massachusetts driver’s license under the victim’s name.
The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local 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. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General made the announcement today. Valuable assistance was provided by the U.S. Marshals Service, District of Massachusetts; Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Office; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, Boston; the Massachusetts State Police; and the Massachusetts Office of Inspector General. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit prosecuted the case.
Springfield Man Pleads Guilty to Possession of Stolen FirearmsRead the Press Release
BOSTON – A Springfield man pleaded guilty yesterday to possessing three stolen firearms, including a rifle and two revolvers.
Luis Velez, 42, pleaded guilty to one count of possession of stolen firearms. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for April 2, 2021. Velez was arrested and charged by indictment in January 2020.
On July 5, 2019, Velez was in possession of three stolen firearms: a Savage Arms, Model 25 Walking Varminter, .22 caliber rifle, a Hermann Weihrauch, Model ARM 44, .44 caliber revolver and a Smith & Wesson, Model 625, .45 caliber revolver, knowing or having cause to believe these firearms were stolen.
The charge of possession of a stolen firearm provides a 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 upon 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, Boston Field Division made the announcement. Assistant U.S. Attorneys Catherine G. Curley and Neil L. Desroches of Lelling’s Springfield Branch Office are prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Salem Man Arrested on Charges Arising from Fraudulent Tax ReturnsRead the Press Release
BOSTON – A Salem man was arrested today and charged in connection with a fraudulent tax return scheme.
Roosevelt Fernandez, 41, was charged by criminal complaint with one count of wire fraud and one count of aggravated identity theft. Fernandez is scheduled to make an initial appearance today at 1:00 p.m. before Magistrate Judge David H. Hennessy.
According to the charging documents, Fernandez used the identities of various individuals to submit fraudulent state and federal tax returns. A number of these returns included fraudulent W-2 Forms purportedly issued by employers for whom the named taxpayer did not work. Various fraudulent refunds were deposited into an account in the name of Soluciones Multi Service, an entity controlled by Fernandez. It is further alleged that a May 2020 fraudulent Economic Income Payment – stimulus authorized by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) – was deposited into this same account.
Fernandez was allegedly depicted on ATM surveillance footage depositing another fraudulent tax refund check into this account. The investigation uncovered approximately 40 fraudulent tax returns totaling requested refunds that exceed $600,000.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The U.S. Postal Inspection Service and the Massachusetts Department of Revenue provided valuable assistance with the investigation. Assistant U.S. Attorney Bill Abely, Chief of 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.
Former Attorney Pleads Guilty to Embezzlement and Tax ChargesRead the Press Release
BOSTON – A former attorney pleaded guilty yesterday to wire fraud and filing false tax returns in connection with a long-running scheme to embezzle funds from trusts for which he served as trustee.
Kevin M. Brill, 61, of Newton, pleaded guilty to six counts of wire fraud and four counts of filing false tax returns. U.S. Senior District Judge Mark L. Wolf scheduled sentencing for April 5, 2021.
From 2012 to July 2017, Brill served as a trustee for three family trusts with funds held at Morgan Stanley Bank. As trustee, Brill had fiduciary responsibilities to protect and preserve the funds of the trusts and make expenditures for the benefit of each beneficiary. As part of his embezzlement scheme, Brill created new accounts at Santander Bank through which he funneled funds he withdrew from the trust accounts. Over the course of the six-year scheme, Brill embezzled and misappropriated more than $600,000 from the various trusts and used the proceeds on personal expenses such as a personal vehicle, a vacation home in Vermont and to pay for his personal credit card expenses.
In addition, Brill failed to report his illegal income to the IRS, thereby avoiding payment of more than $169,000 that he owed in federal income taxes.
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 filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney Victor A. Wild of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Career Criminal Indicted on Fentanyl PossessionRead the Press Release
BOSTON – A Brockton man was indicted by a federal grand jury yesterday in connection with fentanyl and cocaine possession.
Dedrick Lindsey, 37, was charged in a superseding indictment with one count of possession with intent to distribute fentanyl and cocaine. Lindsey was previously indicted on one count of possession of a firearm by a convicted felon.
Lindsey was arrested on state charges on July 19, 2018, after law enforcement found a .25 caliber pistol, 18 grams of fentanyl and 10.5 grams of cocaine in his possession. Lindsey is prohibited from possessing a firearm due to previous drug convictions, which are all punishable by more than a year in prison.
The charge of possession with intent to distribute fentanyl and cocaine provides for a sentence of up to 20 years in prison, a minimum of three years of supervised release and a fine of up to $1 million. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, a minimum of one year and up to three years of supervised release and a fine of up to $250,000. As an armed career criminal, Lindsey is subject to a mandatory minimum sentence of 15 years and up to life in prison, five years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
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; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Plymouth County District Attorney Timothy J. Cruz made the announcement. Assistant U.S. Attorney Elysa Wan of Lelling’s 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.
Canton Woman Pleads Guilty to Role in BEC SchemeRead the Press Release
BOSTON – A Canton woman pleaded guilty yesterday in federal court in Boston in connection with a business email compromise (BEC) scheme.
Bintu Toure, 26, pleaded guilty to wire fraud and money laundering conspiracy. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for April 16, 2021. Toure was charged in September 2019 for her role in the scheme.
Toure is the second individual to be convicted in connection with this scheme, following the guilty plea of Yannick Minang a/k/a “Africa” last year.
Toure conspired with others to open numerous bank accounts in Massachusetts in the name of sham companies, as part of a BEC scheme. A BEC scheme is a sophisticated scam often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques, to cause employees of the victim company (or other individuals involved in legitimate business transactions) to transfer funds to accounts controlled by the scammers.
Through the use of fraudulent invoices and spoofed email accounts, Toure conspired to trick the victims of the scheme into wiring hundreds of thousands of dollars to bank accounts under her control. Toure and her co-conspirators then transferred funds from the accounts on to others located overseas.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the amount involved in the transaction, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
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. Assistant U.S. Attorney William B. Brady, of Lelling’s Criminal Division and Jordi de Llano, Deputy Chief of Lelling’s Securities & Financial Fraud Unit, are prosecuting the case.
Brazilian National Sentenced for Firearms TraffickingRead the Press Release
BOSTON – A Brazilian national, who previously resided in Malden, was sentenced yesterday for immigration and firearms crimes.
Vanderlei Rodrigues DeAraujo, a/k/a Neneco, 43, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 18 months in prison and two years of supervised release. Upon completion of his sentence, DeAraujo will be placed into removal proceedings and deported to Brazil.
On Sept. 30, 2020, DeAraujo pleaded guilty to one count of dealing in firearms without a license, two counts of being an alien in possession of a firearm and ammunition and one count of illegal reentry of a previously deported alien. DeAraujo was arrested on May 29, 2019 and has been in federal custody since.
On Aug.11, 2011, DeAraujo, who was determined to be illegally present in the United States, was deported to Brazil. Sometime after his removal, DeAraujo illegally reentered the United States and between Sept. 6, 2018 and Jan. 28, 2019, DeAraujo illegally sold two semi-automatic firearms and ammunition.
United States Attorney Andrew E. Lelling; Todd Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office made announcement. Valuable assistance was provided by Homeland Security Investigations in Boston; the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and the Malden Police Department. Assistant U.S. Attorneys Kenneth G. Shine and Lindsey Weinstein of Lelling’s Major Crimes Unit prosecuted the case.
Boston Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday in connection with surreptitiously filming boys in the restrooms at Boston Latin School (BLS).
Eric Tran Thai, 36, pleaded guilty to two counts of possession of child pornography. Thai was arrested on March 11, 2019 by criminal complaint and indicted later that month. U.S. District Court Judge William G. Young scheduled sentencing for May 13, 2021.
According to the charging documents, on Feb. 6 and Feb. 27, 2018, two separate Boston College students reported to the police that they had been videotaped without their knowledge or consent while they were using the men’s restrooms on the Boston College campus. Following the Feb. 27, 2018, report, police located and spoke with Thai on campus. Thai was placed under arrest on state charges and his bag was subsequently searched; in it, police found several covert camera devices, including faux smoke detectors, a water bottle containing a small cube recording device, and a pair of sunglasses outfitted with a built-in camera. Those charges are currently pending in Middlesex County Superior Court.
Following Thai’s arrest, a search of his home was executed where dozens of devices including computer hard drives, thumb drives, covert and regular cameras, computers, iPads, cell phones and multiple SD and Sim cards were recovered. Investigators found several electronic folders labeled BU, MIT, Harvard, Northeastern, Bunker Hill, Boston Latin High School, and several different malls, airports and foreign country locations. Thai was charged federally for the child pornography located in the Boston Latin folders, which contained approximately 45 surreptitiously-recorded videos of male students in various states of dress using the urinals and stalls in the boys’ bathroom. The videos appear to have been created on approximately 10 separate dates between February and December 2017, all after school hours.
In general, the videos show Thai sitting in a bathroom stall at Boston Latin High School recording individuals in adjacent stalls or at the urinals through various secret recording methods. In some videos, Thai appears to hold a camera over the top of the partition between the bathroom stalls and videotaping from overhead. In other instances, he appears to hide a small camera inside of his backpack, place the backpack on the bathroom floor and videotape individuals in the adjacent bathroom stall from under the stall’s partition. While recording, it appears that Thai would simultaneously view what the camera was recording on a cellphone or a tablet device in his possession.
The charges of possession of child pornography provide for a sentence of up to 10 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. According to the terms of the plea agreement, the government will recommend a sentence of between 108 and 180 months in prison. 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; Middlesex District Attorney Marian T. Ryan; Boston Police Commissioner William G. Gross; and Boston College Police Chief William B. Evans made the announcement. 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 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/.
Chicopee Man Indicted on Child Pornography OffensesRead the Press Release
BOSTON – A Chicopee man was indicted by a federal grand jury on Wednesday, January 6, 2021 on child pornography offenses.
Michael Geoffroy, 35, was indicted on three counts of sexual exploitation of a child, three counts of distribution of child pornography and one count possession of child pornography.
The indictment alleges that in December 2020, Geoffroy distributed and possessed child pornography, and that he used a child to create child pornography.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation in Boston; and Chicopee Police Chief William R. Jebb made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sutton Man Indicted on Child Pornography Possession ChargeRead the Press Release
BOSTON – A Sutton man was indicted yesterday by a federal grand jury in connection with possession of child pornography.
Oliver Smith, 45, a citizen of Sweden and the United States, was indicted on one count of possession of child pornography. Smith was previously arrested on Nov. 24, 2020 and charged by criminal complaint.
According to the charging documents, on Nov. 15, 2020, after receiving investigative information from the National Center for Missing and Exploited Children and Swedish law enforcement authorities, agents executed a search warrant at Smith’s Sutton residence and seized several devices. A preliminary forensic review of devices seized revealed images and videos of child pornography. During an interview with federal agents, Smith admitted that he had downloaded child pornography upon his return to the U.S. from Sweden.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The charge of possession of child pornography provides for a sentence of up to 20 years in prison, a mandatory minimum of five years and up to life of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Sutton Police Chief Dennis J. Towle made the announcement. Assistant U.S. Attorney Kristen Noto of Lelling’s Worcester Branch Office and Jessica Urban of the Justice Department’s Child Exploitation and Obscenity Section are prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
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.
Former Enforcer of Boston Latin Kings Chapter Sentenced for Racketeering Conspiracy ChargesRead the Press Release
BOSTON – The former Enforcer of the Boston-based Devon Street Kings Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced yesterday on racketeering charges.
Matthew Palacios, a/k/a “King Nene,” 26, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 33 months in prison and three years of supervised release. In September 2020, Palacios 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 its origin on Devon Street in Boston, the Devon Street Kings or D5K Chapter of the Latin Kings, included approximately a dozen members. As Enforcer, Palacios was responsible for ensuring discipline, meting out punishment to members for violating the rules of the gang and organizing violence against rival gang members and those believed to be cooperating with law enforcement. The Devon Street Kings, 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. During the investigation, various meetings were covertly recorded in which Palacios and members of the Devon Street Kings discussed the business of the racketeering enterprise. Palacios was present during meetings where members were beaten and violence against rival gangs was discussed and decided upon.
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. Palacios is the 11th 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.
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.
Virginia Man Sentenced for Using Stolen Identity in Attempt to Secure Loan from Worcester Credit UnionRead the Press Release
BOSTON – A Virginia man was sentenced today in federal court in Worcester for making a false statement on a loan application and aggravated identity theft. At the time of the offense, he was on supervised release for a previous conviction.
Rashad Al-Terek Walker, 39, of Hampton, Va., was sentenced by U.S. District Court Judge Timothy S. Hillman to 32 months in prison and two years of supervised release. In September 2020, Walker pleaded guilty to one count of making a false statement on a loan application and one count of aggravated identity theft.
In November 2019, Walker attempted to obtain a loan using a stolen identity from a Worcester-area credit union. Walker provided employees of the credit union several fraudulent records, including a counterfeit license, employer pay record and utility bill. Employees of the credit union immediately reported the matter to law enforcement authorities, who responded to the credit union and arrested Walker.
Walker was previously convicted of bank fraud in U.S. District Court in the Eastern District of Virginia and was on supervised release for that offense when he committed the crimes in Worcester.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of Federal Bureau of Investigation, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office prosecuted the case.
Statement from U.S. Attorney Andrew E. Lelling on Breach of U.S. CapitolRead the Press Release
“Yesterday’s events in Washington were shocking and, once peaceful demonstrations turned violent, they became criminal. The Constitution protects the right to freedom of speech and assembly. What is does not protect is a violent assault on government institutions. Americans on the right and left must re-learn the difference. Anyone who traveled from Massachusetts with the intent to commit such crimes will be prosecuted in the District of Massachusetts.”
New Hampshire Man Sentenced for Financial Fraud Scheme Using Stolen IdentitiesRead the Press Release
BOSTON – A New Hampshire man was sentenced today in connection with engaging in a complex scheme to conduct fraudulent financial transactions using stolen account information and other personally identifiable information (PII) of victims in Massachusetts and elsewhere throughout the United States.
Jonathan Nguyen, 23, of Windham, N.H., was sentenced by U.S. District Court Judge Allison D. Burroughs to a year and a day in prison, two years of supervised release and ordered to pay $250,000 in forfeiture. In June 2020, Nguyen pleaded guilty to conspiring to engage in wire fraud, access-device fraud and identity theft.
Nguyen and others involved in the scheme used Bitcoin to purchase names, addresses, dates of birth, Social Security numbers, email addresses and passwords as well as credit card account numbers, expiration dates, card verification values and other forms of PII. Nguyen and others then used this information to purchase tickets to sporting events and gift cards that Nguyen sold for profit. Nguyen also created e-commerce websites for sham companies and obtained payment-card processing capabilities for these sham companies in order to cash out the stolen credit cards. He used various technological means to thwart the fraud-detection mechanisms deployed by the internet merchants where he made purchases with the stolen PII.
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. Valuable assistance was provided by U.S. Customs and Border Protection. Assistant U.S. Attorney Mackenzie Queenin of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Tyngsborough Police Officer and Chinese National Charged with Violations of National Firearms ActRead the Press Release
BOSTON – A Tyngsborough police officer and a Chinese national were arrested today and charged with firearms violations.
Daniel Whitman, 36, of Pelham, N.H., and Bin Lu, 49, a Chinese national residing in Westford, were charged by criminal complaint with conspiracy to violate provisions of the National Firearms Act (NFA) by making, possessing and failing to register short-barreled rifles, as well as possessing a suppressor without proper registration. The defendants will make initial appearances today in federal court in Boston.
According to the charging documents, Whitman is currently a full-time police officer with the Tyngsborough Police Department and the owner and principal manager of Hitman Firearms, LLC, a retail gun shop in Tyngsborough. Whitman maintains a Type 01 Federal Firearms License (FFL) which allows for buying, selling, transferring and gunsmithing (i.e. servicing, of firearms), but does not permit manufacturing of any type of firearms. Lu is listed on the FFL as a manager of Hitman Firearms and is also an investor in the store.
It is alleged that Lu and Whitman sought to build a large indoor shooting range, Freedom Alley Shooting Sports (FASS), which would serve regional and international customers, and offer shooting clinics and other services using funding from Chinese investors. On several occasions, Lu and Whitman did run firearms training camps, consisting of shooting and tactics trainings, for Chinese tourists. Providing such trainings to foreign nationals requires a license from the U.S. Department of State, which Whitman and Lu never applied for nor received.
Whitman and others allegedly recorded videos on a YouTube channel operated by Lu that promotes Hitman Firearms, FASS and the training camps.
The purpose of the NFA is to regulate transactions of certain firearms, which are deemed to be more dangerous, by regulating the manufacture, possession and registration of certain firearms including short-barreled rifles (SBRs), suppressors, short-barreled shotguns and machineguns. The NFA requires registration of all NFA firearms in the National Firearms Registration and Transfer Record (NFRTR). The NFA further prohibits an FFL who is not properly registered from manufacturing or changing a firearm that originally was not an NFA weapon to create an NFA weapon.
According to the criminal complaint, Hitman Firearms does not possess the required license to manufacture, or NFA status to possess, firearms regulated by the NFA. Nevertheless, Whitman and Lu allegedly possessed and manufactured items that are covered by the NFA, including a short-barreled rifle and suppressor.
Specifically, during a search of Hitman Firearms, a complete CMMG MK9 rifle was found in the store. The shop’s acquisition and disposition record (a/k/a A&D book) indicated that the rifle was acquired from another store in March 2016 as a lower receiver only. The investigation determined that the seized firearm is an SBR since it has an 8.625 riffle barrel and a collapsible stock. It is alleged that neither Whiteman nor Lu registered the firearm as an SBR in the NFRTR.
During the search, Lu arrived at the shop and gave federal agents permission to search the vehicle he was driving. The vehicle contained several firearms including a Sig Sauer MCX with a folding stock attached. The shop’s A&D book indicated that the firearm was acquired from another store as a pistol. However, at the time it was recovered from Lu’s vehicle, the firearm had a stock attached to the rear, which made the weapon into a rifle. The firearm was never registered as an SBR in the NFRTR. According to the charging document, at the time of the search, Lu stated that “Dan” put the stock on the end, thus making the pistol into a rifle.
The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 fine. 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 in Boston; Jonathan Davidson, Special Agent in Charge of Diplomatic Security Service in Boston; and Joseph Cronin, Inspector in Charge of the U.S. Postal Inspection Service in Boston made the announcement today. Assistance was provided by the Massachusetts State Police. Assistant U.S. Attorney Eugenia M. Carris and Neil Gallagher of Lelling’s Public Corruption & Special Prosecutions Unit are prosecuting the case.
The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Bedford Woman Charged with Embezzling Nearly $600,000 from EmployerRead the Press Release
BOSTON – The former bookkeeper of a New Bedford-based seafood company has been charged and has agreed to plead guilty in connection with embezzling nearly $600,000 from her employer.
Kara Howland, 37, of New Bedford, was charged with bank fraud and filing a false tax return. Under the terms of the plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of 18 to 36 months in prison, a fine and restitution. A plea hearing has not yet been scheduled by the Court.
According to court documents, between January 2016 and December 2019, Howland embezzled $598,241 from her employer by writing checks from her employer’s bank accounts to pay her credit card bills. Howland altered the company’s internal accounting records to make it appear that the checks were paid to legitimate vendors. Additionally, Howland did not report or include the funds that she embezzled on her federal income tax filings, resulting in a tax loss of $180,863.
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 or twice the gross gain or loss. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joleen D. Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Craig A. Marech, Resident Agent in Charge of the Providence Office of the U.S. Secret Service, made the announcement today. The New Bedford Police Department also provided assistance. Assistant U.S. Attorney Kristen A. Kearney of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Chinese Researcher Sentenced for Making False Statements to Federal AgentsRead the Press Release
BOSTON – A Chinese national was sentenced today in federal court in Boston for making false statements in connection with his theft of 19 vials of biological research.
Zaosong Zheng, 31, was sentenced by U.S. District Court Judge Denise J. Casper to time served (approximately 87 days), three years of supervised release and ordered removed from the United States. In December 2020, Zheng pleaded guilty to one count of making false, fictitious or fraudulent statements. Zheng was arrested on Dec. 10, 2019, at Boston’s Logan International Airport and charged by criminal complaint.
In August 2018, Zheng entered the United States on a J-1 visa and conducted cancer-cell research at Beth Israel Deaconess Medical Center in Boston from Sept. 4, 2018 to Dec. 9, 2019. On Dec. 9, 2019, Zheng stole vials of biological research, hid the vials in his luggage, and attempted to take them out of the United States aboard a flight destined for China. Federal officers at Logan Airport discovered the vials hidden in a sock inside one of Zheng’s bags, and not properly packaged. When asked by federal officers whether he was traveling with any biological items or research, Zheng lied and answered “no.” Zheng later admitted he had stolen the vials from a lab at Beth Israel. Zheng stated that he intended to bring the vials to China to use them to conduct research in his own laboratory and publish the results under his own name.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Denning, Director of Field Operations, U.S. Customs and Border Protection, Boston Field Office; and William Higgins, Special Agent in Charge of the U.S. Department of Commerce, Office of Export Enforcement, Boston Field Office made the announcement today. Assistant U.S. Attorneys Benjamin Tolkoff and Jason Casey of Lelling’s National Security Unit prosecuted the case.
Lawrence Woman Indicted on Charges Stemming from Tax Refund SchemeRead the Press Release
BOSTON – A Lawrence woman was indicted today by a federal grand jury in connection with her role in a scheme to cash checks obtained through filed fraudulent tax returns.
Luz Paulino, 38, was indicted on one count of bank fraud conspiracy, three counts of bank fraud and three counts of aggravated identity theft. Paulino was charged by criminal complaint and arrested on Dec. 12, 2020.
As alleged in charging documents, Paulino owned Agape Financial Services, a Massachusetts company that provided tax preparation and notary services. Between approximately January 2020 and February 2020, Paulino filed tax returns with the IRS in the names and Social Security numbers of individuals who had neither hired nor authorized Paulino or Agape to use their personally identifiable information. The tax returns reported false wage, employer, and dependent information, among other things. To conceal her role in the scheme, Paulino filed the returns using the names and IRS-issued identification numbers of two former employees. Based on refunds claimed in the false tax returns, Paulino obtained Refund Advance Loan checks payable to the victims, which she and others cashed using the victims’ forged endorsements and false identification documents.
The charges of bank fraud conspiracy and bank fraud provide for a sentence of up to 30 years in prison, five years of supervised release, a fine of $1 million, restitution and forfeiture. The charge of aggravated identity theft provides for a mandatory sentence of two years to be served consecutively to any other sentence imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge, Federal Bureau of Investigation, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations; and Lawrence Police Chief Roy P. Vasque made the announcement today. Assistant U.S. Attorney Sara Miron Bloom 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.
Former Chairman of Massachusetts Latin Kings Crown Council Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former member of the Boston-based Devon Street Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering charges.
Angel Rodriguez, a/k/a “King Ace,” 29, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for April 15, 2021.
Named for its origin on Devon Street in Boston, the Devon Street Kings or D5K Chapter of the Latin Kings, included approximately a dozen members. The Devon Street Kings, 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. During the investigation, various meetings were covertly recorded where members of the Devon Street Kings discussed the business of the racketeering enterprise.
Evidence developed during the investigation proved that Rodriguez conspired with other members and leaders of the Latin Kings to distribute controlled substances, including a video depicting Rodriguez bagging up crack cocaine for distribution. In December 2019, Rodriguez served as Chairman of the Crown Council for the D5K Chapter. The Crown Council is a body that sits independently of the leadership and provides guidance to the leadership team and resolves disputes that arise.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Angel Rodriguez is the 28th 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 Boston Police Commissioner William Gross 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.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican Man Indicted on Fentanyl Trafficking ChargeRead the Press Release
BOSTON – A Dominican national was indicted by a federal grand jury today in connection with drug trafficking activities involving fentanyl.
Angel Aybar Carmona, 25, was indicted on one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl. Carmona was previously charged by criminal complaint and has been in custody since his arrest on Dec. 8, 2020.
As alleged in charging documents, Carmona provided a sample of fentanyl along with his phone number to an undercover law enforcement officer on Dec. 2, 2020. In subsequent text message conversations with Carmona, the undercover officer arranged to purchase 120 grams of fentanyl on Dec. 8, 2020 inside a store in Lawrence. After completing the sale, Carmona was arrested.
The charge of distribution and possession with intent to distribute 40 grams or more of fentanyl carries a mandatory minimum sentence of five years and up to 40 years in prison, a 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.
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. Valuable assistance was provided by the Lawrence Police Department. Assistant U.S. Attorney Stephen Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Convicted Felon Charged with Illegal Possession of FirearmRead the Press Release
BOSTON – A Fitchburg man was charged today with being a felon in possession of a 10 mm Glock pistol.
Joel Polanco, 32, was charged by criminal complaint with one count of being a felon in possession of a firearm. Polanco is currently in state custody and will make an initial appearance in federal court at a later date.
On Oct. 24, 2020, Polanco was arrested after police responded to the area of Snow and Cherry Streets in Fitchburg following a report of a person suffering a gunshot wound to the leg. A witness reported seeing someone fitting Polanco’s description shoot the victim. In addition, surveillance videos showed a person fitting Polanco’s description carrying what appeared to be the black fanny-pack and holding an item in his hand that appeared to be a gun. According to the charging documents, Polanco shot the victim using a 10 mm Glock pistol that was later recovered from a black fanny-pack in the area of Snow Street.
Polanco is prohibited from possessing a firearm due to a March 2011 conviction in Worcester federal court of being a felon in possession of ammunition and distribution of cocaine base.
The charge of being a felon in possession of a firearm 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 Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Fitchburg Police Chief Ernst Martineau made the announcement today. 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.
Convicted Felon Indicted on Federal Child Pornography ChargeRead the Press Release
BOSTON – An Auburn man was indicted today by a federal grand jury on a child pornography charge.
Christopher Rondeau, 35, was indicted on one count of possession of child pornography and will be arraigned in federal court in Worcester at a later date. Rondeau was arrested and charged by criminal complaint on Nov. 6, 2020.
According to the charging documents, a search was executed at Rondeau’s residence where a cell phone was found containing images and videos of child pornography. In 2016, Rondeau was convicted of receipt of child pornography and sentenced to 68 months in prison and seven years of supervised release. He was released from federal custody in August 2019 and was on supervised release at the time of his November arrest.
Due to Rondeau’s prior conviction, the charging statute provides for a mandatory minimum sentence of 10 years and up to 20 years in prison, a minimum of five years and up to life 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 R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Auburn Police Chief Andrew J. Sluckis, Jr; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Danial Bennett of Lelling’s Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office Settles Disability Discrimination Allegations with Operator of Skilled Nursing FacilitiesRead the Press Release
BOSTON – The U.S. Attorney’s Office reached an agreement today with Alliance Health and Human Services, the operator of eight skilled nursing facilities in Massachusetts, to resolve allegations that they violated the Americans with Disabilities Act (ADA) by turning away patients because they were being treated for Opioid Use Disorder (OUD).
According to the complaint, Alliance denied individuals seeking admission on more than 350 occasions because they were being treated with buprenorphine or methadone, medications used to treat OUD. These individuals were seeking admission to the facilities for health issues unrelated to their addiction, but also required that the facilities administer those treatments as they would administer any other medication. Individuals receiving treatment for OUD are generally considered disabled under the ADA, which, among other things, prohibits private healthcare providers from discriminating on the basis of disability.
Under the terms of the agreement, Alliance will, among other things, adopt a non-discrimination policy, provide training on the ADA and OUD to admissions personnel, pay a civil penalty of $50,000 to the United States, $10,000 of which will be paid now and $40,000 of which shall be suspended and forgiven if Alliance materially complies with the terms of the agreement.
This matter is part of an ongoing effort by the U.S. Attorney’s Office to enforce the Title III of the ADA and to eliminate discriminatory barriers to treatment for OUD. In May 2018, the U.S. Attorney’s Office reached a settlement with Charlwell House, a rehabilitation center that provides skilled nursing services. A similar settlement was reached with Athena Health Care Systems in September 2019. Today’s settlement marks the third resolution in the District of Massachusetts.
This matter was handled by Assistant U.S. Attorneys Torey Cummings and Gregory Dorchak of Lelling’s Civil Rights Unit.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.-
Convicted Felon Charged with Cocaine and Firearm PossessionRead the Press Release
BOSTON – A Worcester man was charged yesterday with cocaine and firearm possession.
Rodney Hall, 36, was charged by criminal complaint with one count of possession with intent to distribute more than 500 grams of cocaine and one count of being a felon in possession of a firearm.
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.
Law enforcement then executed a search warrant at Hall’s residence, where they located 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.
The charge of possession with intent to distribute more than 500 grams of cocaine provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to life of supervised release and a fine of up to $5 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.
Two Men Arrested for Fraud Involving Small Business Administration Disaster FundsRead the Press Release
BOSTON – A Lawrence man and a Methuen man were arrested yesterday and charged in federal court in Boston in connection with a scheme to use stolen identities to fraudulently obtain disaster loans from the Small Business Administration (SBA) and to launder the funds.
Darwyn Joseph, 24, of Lawrence, and Ramon Joseph Cruz, 24, of Methuen, were each charged with one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Following initial appearances in federal court, the defendants were detained pending detention hearings scheduled for Dec. 23, 2020.
According to 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. Some funds were also wired to the Dominican Republic in connection with the scheme.
It is alleged that over $452,204 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 charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of 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 David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorneys Elianna Nuzum and Adam Deitch of Lelling’s Major Crimes Unit are prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of
Member of the Latin Kings Department of Corrections Chapter Pleads Guilty to Racketeering Conspiracy ChargesRead the Press Release
BOSTON – A former member of the Chapter of the Latin Kings in the Massachusetts Department of Correction pleaded guilty today to racketeering charges.
Sandra Correa, a/k/a “Queen Dream,” 35, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. A sentencing date will be scheduled at a later time.
As detailed in court filings, the Latin Kings bring disputes and related gang violence into the jails and prisons where Latin Kings are incarcerated. As a member of the Chapter of the Latin Kings responsible for the activities in the Massachusetts Department of Correction, Correa transmitted information to and from incarcerated members of the Latin Kings on behalf of the organization. This information included identities of those who would be targeted for violence in the jails and prisons, the locations of incarcerated members, the standing of certain individuals with the gang, and the status of disputes and alliances with other gangs.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Correa is the 27th 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 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.
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.
Member of Connecticut Latin Kings “Crown Council” Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – A former member of the Connecticut Almighty Latin King and Queen Nation (“Latin Kings”) leadership body, known as the “Crown Council,” was sentenced today for racketeering conspiracy charges.
Hector Vega, a/k/a “King Demon,” 34, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 18 months in prison and three years of supervised release. In September 2020, Vega pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
In addition to his membership in the Latin Kings in Connecticut, Vega also held a position in the Connecticut “Crown Council,” which was the governing body for the Latin Kings in that state. Evidence developed during the course of the investigation included recordings of Vega presiding over a Latin Kings “trial” against two Massachusetts members of the Latin Kings who had violated rules of the gang. Regional leadership of the Latin Kings chose Vega and the Connecticut Crown Council as the judges for the trial in order for the hearing to be unbiased. After hearing evidence from members and finding the two members guilty of violating Latin Kings rules, Vega and the Crown Council ordered the beatings of both victim, which were captured on recording. Vega participated in the assault of one of the members.
The Latin Kings are a violent gang 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 criminal organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and is motivated by a desire to further its influence and to protect its turf from rival gangs.
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. Vega is the tenth 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; and Commissioner Carol Mici of the Massachusetts Department of Correction 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.
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.
Honduran National Pleads Guilty to Illegal Re-EntryRead the Press Release
BOSTON – A Honduran national pleaded guilty today in federal court in Worcester to illegally reentering the United States.
Milton Javier Cardona-Guevara, 34, pleaded guilty to one count of illegal re-entry into the United States after deportation. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for April 9, 2021. Cardona-Guevara was charged in November 2020.
On Aug. 13, 2006, Cardona-Guevara illegally entered the United States and was convicted of improper entry by an alien in August 2006. On Sept. 5, 2006, he was removed from the U.S. In 2008 and 2011, Cardona-Guevara was apprehended after illegally entering the United States and was deported. On Oct. 2, 2018, Cardona-Guevara was arrested in Worcester County for assault with a dangerous weapon. Cardona-Guevara admitted to immigration authorities that he had been deported three times previously. On Jan. 25, 2019, he was removed from the U.S. On Oct. 13, 2020, Cardona-Guevara was arrested in Worcester on an outstanding warrant for criminal charges and had been custody on state criminal charges until he was charged in this case.
The charging statute provides for a sentence of up to two years in prison, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Todd Lyons, Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
Former Houston Independent School District Employee Sentenced in College Admissions CaseRead the Press Release
BOSTON – A former employee of the Houston Independent School District was sentenced today in connection with her involvement in a scheme to use bribery and fraud to facilitate cheating on the ACT and SAT exams.
Niki D. Williams, 46, of Houston, Texas, was sentenced by U.S. District Court Judge Indira Talwani to one year of probation and ordered to pay forfeiture of $12,500. The government recommended a sentence of six months in prison and one year of supervised release. In September 2020, Williams pleaded guilty to one count of conspiracy to commit wire fraud and mail fraud and honest services wire fraud and mail fraud.
Williams administered the SAT and ACT exams at the public high school in Houston where she worked. In exchange for bribe payments directed to her by co-conspirators William “Rick” Singer and Martin Fox, and in violation of her duty of honest services to the ACT and the College Board, Williams allowed another co-conspirator, Mark Riddell, to secretly take ACT and SAT tests in place of the children of Singer’s clients or to replace their exam answers with his own corrected answers. Williams then returned the falsified exams to the ACT and College Board for scoring.
Singer, Riddell and Fox previously pleaded guilty and are cooperating with the government’s investigation.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Stephen E. Frank and Karin M. Bell of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Lawrence Brothers Indicted for Trafficking FentanylRead the Press Release
BOSTON – Two brothers were indicted by a federal grand jury this week in connection with conspiring to distribute hundreds of grams of fentanyl in Lawrence.
Jose Manuel Carmona-Mercedes, 30, and Gabriel Carmona-Pimentel, 35, were indicted on charges of conspiracy to distribute 400 grams or more of fentanyl, distribution of fentanyl, and possession with intent to distribute 400 grams or more of fentanyl.
According to charging documents, in late 2019, investigators identified Carmona-Mercedes and Carmona-Pimentel as large-scale fentanyl dealers operating in Lawrence. On four occasions in January and February 2020, an undercover police officer ordered fentanyl from Carmona-Mercedes. After the undercover officer ordered a quantity of fentanyl and negotiated the price, either Carmona-Pimentel or Carmona-Mercedes or both would deliver the fentanyl to the undercover officer from a base of operations on Lexington Street in Lawrence. On Feb. 25, 2020, after Carmona-Pimentel delivered 220 grams of fentanyl to the undercover officer, Carmona-Mercedes and Carmona-Pimentel were arrested. A search of the Lexington Street location resulted in the seizure of 1200 grams of fentanyl, documents in Carmona-Mercedes and Carmona-Pimentel’s names, plastic baggies commonly used to package drugs for street-level sales, blenders, suspected cut and digital scales.
The charge of conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl provides for a 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 charge of distribution of fentanyl carries a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed 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 Federal Bureau of Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Lawrence Police Chief Roy Vasque; and Essex County District Attorney Jonathan Blodgett made the announcement today. Assistant U.S. Attorney Christopher Pohl of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Quincy Man Pleads Guilty to COVID-19 Related OffenseRead the Press Release
BOSTON – A Quincy man pleaded guilty yesterday in federal court in Boston in connection with selling a lanyard that falsely claimed to protect against viruses.
Jiule Lin, 38, pleaded guilty to an Information charging him with one count of distribution and sale of an unregistered pesticide. A sentencing date has not yet been scheduled by the court.
“At the height of a raging pandemic killing thousands of people a day, this defendant tried to profit from conning people into believing that a pesticide-coated lanyard would protect them from viruses like COVID-19. This was dangerous, opportunistic fraud,” said United States Attorney Andrew E. Lelling. “We will always pursue these kinds of cases - I have zero tolerance for people who take advantage of the fears of others during a national health crisis.”
“Bogus claims by sellers claiming to offer products that control viruses continues to pose a risk to consumers nationwide,” said Tyler Amon, Special Agent in Charge for U.S. Environmental Protection Agency (EPA) Criminal Investigation Division for New England. “EPA and our law enforcement partners will continue to focus efforts on stopping the sale of these illegal products. Consumers can help protect themselves by visiting epa.gov/coronavirus for a list of EPA approved disinfectant products.”
Beginning in March and April 2020, Lin listed for sale on eBay an unregistered pesticide, “Toamit Virus Shut Out,” to buyers across the United States. Based on Lin’s eBay listing, the pesticide took the form of a card-shaped device to be worn as a lanyard around the user’s neck. The eBay listing depicted the removal of germs or viruses through the wearing of the device. Other online listings for the same product included the explicit claim that the product would protect the buyer or wearer of the product from viruses or bacteria, stating that the product’s main ingredient was chlorine dioxide and showed images of the device’s purported removal of bacteria, germs and viruses.
Under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), the EPA regulates the production, sale, distribution and use of pesticides in the United States. A pesticide is any substance intended for preventing, destroying, repelling, or mitigating any pest, including viruses. Pesticides must be registered with the EPA. Toamit Virus Shut Out was not registered, and it is illegal to distribute or sell unregistered pesticides.
“HSI remains committed to investigating individuals and companies who seek to exploit our citizens through criminal means. Fraudulent schemes that have an effect on the health and safety of the public, especially during a national pandemic, are deplorable,” said David Magdycz, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Boston. “Comprising legitimate trade and endangering American citizens is a serious offense. HSI will continue to work hand in hand with our federal partners and the United States Attorney’s Office to pursue this criminal activity.”
The charging statute provides for a sentence of up to one year in prison and a fine of $25,000. Sentences are imposed by a federal judge based on the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling; Boston EPA-CID SAC Amon; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; HSI Boston Acting SAC Magdycz; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigation, New York Field Office; and Quincy Police Chief Paul Keenan made the announcement. Assistant U.S. Attorney Adam Deitch of Lelling’s Major Crimes Unit is prosecuting the case.
Lancaster Man Pleads Guilty to Bank RobberiesRead the Press Release
BOSTON – A Lancaster man pleaded guilty today in federal court in Worcester to three bank robberies.
Matthew Alden, 26, pleaded guilty to three counts of bank robbery before U.S. District Court Judge Timothy Hillman who scheduled sentencing for April 8, 2021.
On Dec. 12, 2019, Alden entered the Cornerstone Bank on South Main Street in Leicester and made statements to the bank tellers such as “give me all the money,” “no dye packs,” and “I’m not going to hurt anyone.” Alden wore a black leather jacket, black sweatshirt, tan pants, a black hat, a black and white bandana over his face, glasses and black gloves. Alden stole $9,906, placed the cash into a black drawstring bag and fled the scene.
On Dec. 27, 2019, Alden entered the Avidia Savings Bank on Maple Street in Marlborough and made statements to the tellers such as “give me all your money so no one gets hurt. No dye packs, no GPS, no banded cash.” Alden wore black shoes, black pants, black sweatshirt, black leather jacket, black gloves and a black and white bandana over his face. Alden stole $3,390, which he placed into a black drawstring bag before fleeing the scene.
On Feb. 21, 2020, Alden entered the Avidia Bank on Maple Avenue in Shrewsbury. He wore a dark winter jacket with fur on the hood, black gloves, a black ski mask over his face, blue jeans and black boots. Alden stated to the tellers “give me all the money,” and stole $1,028.
On Feb. 26, 2020, federal agents arrested Alden who was in possession of a notepad with a list of 12 banks in Massachusetts and New Hampshire and their closing times on Thursdays and Fridays.
A search warrant executed at Alden’s house recovered, among other items, a black leather jacket identical to that worn during the Leicester/Marlborough robberies, a black/white bandana, and a dark winter jacket with a fur hood attachment and black boots, identical to those worn during the Shrewsbury robbery.
The charging statute 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Assistance was provided by the Massachusetts State Police and the Westford, Athol, Lunenberg, Leicester, Marlborough, Framingham, Foxborough, Shrewsbury, Millbury, Lancaster, and Nashua (N.H.) Police Departmens. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester Branch Office is prosecuting the case.
Former Department of Unemployment Assistance Employee and Husband Arrested on Fraud Charges Arising from Pandemic Unemployment ClaimsRead the Press Release
BOSTON – A married couple was arrested last night in Texas on federal fraud charges arising from their claims for Pandemic Unemployment Assistance (PUA) funds. The defendants previously served jail time.
Tiffany Pacheco, a/k/a Tiffany Tavery, 35, and Arthur Pacheco, 47, who, until recently, resided in New Bedford, Mass., were charged by criminal complaint with one count of conspiracy to commit wire fraud. Tiffany Pacheco was also charged with one count of wire fraud. The defendants were arrested in San Antonio, Texas last night and will make an appearance in the Western District of Texas today.
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 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 warrant executed on Sept. 22, 2020 at a 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; David Magdycz, 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.
Northborough Man Pleads Guilty to Aiding Romance and Lottery Schemes Targeting ElderlyRead the Press Release
BOSTON – A Northborough man pleaded guilty today in federal court in Worcester to his role in more than $600,000 in fraud schemes targeting elderly victims, and agreeing to launder the proceeds of such schemes and other criminal activity.
Austin Nedved, 29, pleaded guilty to aiding and abetting wire fraud and money laundering conspiracy. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for April 7, 2020. Nedved is in custody serving a sentence for a separate fraud conviction in the Eastern District of Kentucky.
Nedved admitted that he ran a business in which he bought and sold digital currencies, including Bitcoin, for cash. Nedved advertised his services under the screen name “USMC1991” over LocalBitcoins.com and Paxful.com, two online businesses that matched Bitcoin buyers and sellers and facilitated their transactions.
From at least 2017 through 2019, Nedved aided and abetted romance and lottery schemes targeting vulnerable victims. In romance schemes, victims are targeted to send money abroad to people they believe to be romantic interests, while in lottery schemes victims are convinced that they can obtain lottery winnings or sizeable government grants by forwarding cash for administrative fees or expenses to the fraudsters. Despite knowing or being willfully blind to the fact that his customers were fraud victims, Nedved sold Bitcoin to them so that they could send money overseas to the fraudsters.
In late 2017, an individual posing as “Jonathan G.” led a 78-year old victim to believe over social media that he was a Weston, Mass. businessman who owned an oil company. Without ever meeting “Jonathan G.” in person, the victim fell in love and agreed to marry him. “Jonathan G.” then falsely told the victim that his oil company had experienced an accident abroad in which people had died, and that he needed money to settle obligations arising from the accident with a foreign government. “Jonathan G.” claimed that until he did so, he would not be able to return to the United States to marry the victim. “Jonathan G.” told the victim to pay him via Bitcoin. The victim, who had never before purchased digital currency, agreed to send him money and contacted Nedved by phone and text message in Massachusetts to arrange a cash-for-Bitcoin transaction.
On June 25, 2018, in a parking lot in Kittery, Maine, the victim gave Nedved a cashier’s check to purchase approximately $100,000 in bitcoin. Nedved then released approximately $100,000 in Bitcoin, less his commission, to a Bitcoin wallet controlled by “Jonathan G.” When Nedved accepted $100,000 from the victim, Nedved knew or was willfully blind to the fact that the victim was a romance scam victim. On June 29, 2018, in Leominster, Nedved and a co-conspirator took another $40,000 from the victim.
In total, Nedved and co-conspirators, in exchange for payment, converted to Bitcoin more than $630,000 in cash that they received from others, knowing that the cash constituted proceeds of romance and lottery scams and other unlawful activities. They then either returned the proceeds in Bitcoin to the source of the cash or forwarded the Bitcoin proceeds to unidentified third parties.
The charges of aiding and abetting 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, whichever is greater. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $500,000 or twice the value of the funds involved in the financial transactions that were the object of conspiracy. 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; David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations made the announcement today. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Lelling’s Securities, Financial & Cyber Fraud Unit, is prosecuting the case.
Florida Man Pleads Guilty to Wire Fraud Conspiracy Based on Exploitation of USPS’s Informed Delivery SystemRead the Press Release
BOSTON – A Florida man pleaded guilty today in federal court in Boston in connection with the fraudulent abuse of the U.S. Postal Service’s (USPS) Informed Delivery electronic notification system.
Fred Alcius, 28, of Lauderhill, Fla., pleaded guilty to one count of conspiracy to commit wire fraud and two counts of aggravated identity theft. U.S. District Court Judge Indira Talwani scheduled sentencing for March 26, 2021.
In June 2019, Alcius was indicted along with co-defendant Lucson Appolon, who previously pleaded guilty and was sentenced to two years in prison. Co-conspirators Peter Belony and Kevens Louis were previously sentenced to 24 and 27 months in prison, respectively.
Informed Delivery is a free electronic notification service provided by the USPS that gives residential and P.O. Box customers the ability to digitally preview their incoming mail and manage their packages.
The defendants accessed victims’ personal identifying information, including names, Social Security numbers, dates of birth, and addresses on the “dark web” and then used the information to open credit cards in the victims’ names. The defendants then subscribed to Informed Delivery using the victims’ personal identifying information and a fraudulent email address created to track the delivery of credit cards to the victims’ residential mailboxes. The defendants subsequently intercepted the credit cards at the victims’ mailboxes before the victims could receive them and used those credit cards at ATMs and to purchase gift cards and other items for resale at Apple and Walmart, among other retail establishments. The defendants traveled to states up and down the East Coast in furtherance of the fraud, including Maine and Massachusetts.
The charge of conspiracy to commit wire fraud carries a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft carries a mandatory minimum sentence of two years in prison, to be served consecutive to any other sentence imposed, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Biogen Agrees to Pay $22 Million to Resolve Allegations that it Paid Kickbacks Through Two Co-Pay FoundationsRead the Press Release
BOSTON – Cambridge-based pharmaceutical company Biogen Inc. has agreed to pay $22 million to resolve allegations that it violated the False Claims Act by illegally using two foundations, Chronic Disease Fund (CDF) and The Assistance Fund (TAF), as conduits to pay the Medicare co-pays for patients taking Biogen’s multiple sclerosis (MS) drugs, Avonex and Tysabri.
Advanced Care Scripts (ACS), a specialty pharmacy that performed services for Biogen, has agreed to pay $1.4 million to resolve allegations that it conspired with Biogen to enable Biogen to use CDF and TAF as conduits for Biogen to pay Medicare co-pays for Avonex and Tysabri patients.
In separate settlements in late 2019, CDF paid $2 million and TAF paid $4 million to resolve allegations concerning their respective roles in enabling certain pharmaceutical companies to pay kickbacks to Medicare patients.
When a Medicare beneficiary obtains a prescription drug covered by Medicare Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively, co-pays). Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which involves money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.
As part of today’s settlements, the government alleged that Biogen, acting with ACS’s help, used CDF and TAF, each of which claimed status as a nonprofit organization for tax purposes, as conduits to pay the co-pay obligations of thousands of Medicare patients taking Avonex and Tysabri. According to the government’s allegations, Biogen used CDF and TAF, which Biogen paid, to cover Avonex and Tysabri patients’ co-pays to induce those patients’ Medicare-reimbursed purchases of the drugs.
The government specifically alleges that in 2011, Biogen identified Medicare-eligible Avonex patients in Biogen’s free drug program, and arranged for ACS to transfer those patients from the Biogen free drug program to CDF, so that CDF could cover those patients’ Medicare co-pays and the patients’ purchases of Avonex would generate Medicare revenue for Biogen. Biogen then paid CDF, and ACS promptly sent CDF batch files of co-pay assistance applications for Medicare-eligible Avonex patients who had been receiving the free drug from Biogen. CDF subsequently approved most of those applications and covered the costs of those patients’ Medicare co-pays for Avonex.
The government further alleges that in 2012, Biogen identified Medicare-eligible Tysabri patients in Biogen’s free drug program, and arranged for ACS to transfer those patients from the Biogen free drug program to TAF, so that TAF could cover those patients’ Medicare co-pays and the patients’ purchases of Tysabri would generate Medicare revenue for Biogen. Biogen made payments to TAF in the second and third quarters of 2012, and each time ACS then transferred to TAF batch files of co-pay assistance applications for Medicare-eligible patients who had been receiving the free drug from Biogen. TAF subsequently paid most or all those patients’ Medicare co-pays for Tysabri. The government further alleges that, in 2013, in much the same fashion, Biogen worked with ACS again to transition Medicare-eligible Tysabri patients out of Biogen’s free drug program to CDF, which Biogen paid so that CDF would cover those patients’ Medicare co-pays for Tysabri and Biogen would receive the resulting Medicare reimbursement revenue.
“Biogen coordinated with ACS to game the system, time its payments, and direct its money to cover co-pay costs for patients using its drugs,” said First Assistant United States Attorney Nathaniel R. Mendell. “By using co-pay foundations this way – as a conduit to pay for co-pays for Biogen patients – Biogen violated the anti-kickback statute and undermined Medicare’s co-pay structure, which Congress designed to safeguard against inflated drug prices. We commend ACS for resolving this matter expeditiously and Biogen for resolving this matter on a cooperative basis.”
“The resolution announced today, like prior settlements concerning similar misconduct, demonstrates the government’s commitment to hold accountable companies that pay kickbacks to undermine important constraints on rising drug costs,” said Acting Assistant Attorney Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “Drug companies that illegally manipulate charitable patient assistance programs to subsidize copays for their own products will be held accountable.”
“Kickback schemes can undermine our healthcare system and lead to higher costs for the Medicare program,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the Department of Health and Human Service’s Boston Regional Office. “We will continue to hold pharmaceutical companies and specialty pharmacies accountable if they work together to subvert the charitable donation process and violate the prohibition on the payment of kickbacks.”
“Biogen tried to unfairly boost its bottom line by working with Advanced Care Scripts to bill Medicare for those who were already receiving their drug for free, undermining Medicare’s co-pay structure which was set up to safeguard against inflated drug prices,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Kickback schemes like this one undermine our healthcare system, can compromise medical decisions, and waste taxpayer dollars. The FBI will continue to work with our partners to hold accountable those who conspire to disguise kickbacks as charitable contributions, at the expense of the Medicare program.”
Since 2017 the U.S. Attorney’s Office has collected over $1 billion from eleven pharmaceutical companies that allegedly used third-party foundations as conduits to pay kickbacks. The Department also has reached settlements with four foundations, as well with ACS concerning its relationship with a different pharmaceutical company.
The False Claims Act settlements resolve allegations originally brought in lawsuits filed by whistleblowers 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 today’s announced settlement, the relator will receive approximately $3.96 million of the recovery.
First Assistant U.S. Attorney Mendell, Acting Assistant Attorney General Clark, HHS-OIG SAC Coyne, and Boston FBI SAC Bonavolanta made the announcement today. The matter was handled by Assistant U.S. Attorneys Abraham R. George, Evan Panich and Gregg Shapiro of Lelling’s Affirmative Civil Enforcement Unit, with assistance from Trial Attorneys Augie Ripa and Sarah Arni of the Department of Justice’s Civil Division.
Agawam Man Sentenced for Defrauding VA Hospitals by Failing to Inspect Medical Gas SystemsRead the Press Release
BOSTON – A vendor for several Veterans Affairs medical facilities was sentenced today for defrauding the VA by creating false invoices and reports for medical gas inspections that never took place.
Chester Wojcik, 49, of Agawam, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to two years of probation. In August 2020, Wojcik pleaded guilty to one count of wire fraud.
Wojcik, as the owner of Alliance Medical Gas Corporation, engaged in a scheme from May 29, 2014, through March 5, 2015 to defraud the VA by creating false invoices and reports for medical gas inspections that never took place. Medical gas supply systems deliver piped gases, including compressed air, nitrous oxide, nitrogen and carbon dioxide into operating rooms, recovery rooms and patient rooms. Medical gas supply systems must be inspected and maintained regularly to ensure the safety of patients and medical professionals, and to prevent gas leaks, explosions and other safety hazards. Wojcik failed to perform scheduled inspections of medical gas systems at VA facilities in Sioux Falls, S.D., Tuskegee, Ala. and Montgomery, Ala. and later lied to VA facilities and federal investigators about the offense. Wojcik was paid $8,981 by the VA for services that his company did not perform.
United States Attorney Andrew E. Lelling; Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Elysa Q. Wan of Lelling’s Health Care Fraud Unit prosecuted the case.
Thirteen Individuals Charged in a Fentanyl and Cocaine ConspiracyRead the Press Release
BOSTON – Thirteen people have been charged in federal court in Boston in connection with a Lawrence-based fentanyl and cocaine conspiracy.
The investigation, which began in May 2018 and intercepted communications on numerous cellphones, revealed that the defendants actively distributed fentanyl and cocaine and that their drug trafficking activities extended throughout Massachusetts, southern New Hampshire and Maine.
The following individuals were charged by criminal complaint with conspiracy to distribute and possess with intent to distribute 400 grams of more of fentanyl and cocaine:
1. Anny Cruz, 37, of Lawrence, Mass.;
2. Jorge Luis Diaz, a/k/a Cosita, 33, a Dominican national residing in Ayden, N.C.;
3. Oliver Alexander Perez Soto, a/k/a Demonio, 45, a Dominican national residing in Lawrence, Mass.;
4. Joel Saldana, a/k/a Flaco, 42, a Dominican national residing in Lawrence, Mass.;
5. Oscar David Mejia Rodriguez, a/k/a Manguera, 53, a Dominican national residing in Methuen, Mass.;
6. Jorge Ramon Rodriguez Jimenez, a/k/a Cibao, 47, a Dominican national residing in Lawrence, Mass.;
7. Junior Rafael De La Rosa, 22, a Dominican national residing in Lawrence, Mass.;
8. Rosalba Bernechea a/k/a Rebusera, 19, of Lawrence, Mass.;
9. Elvin Mendoza, 24, of Lawrence, Mass.;
10. James Cann, 55, of Billerica, Mass.;
11. Hector Mejia, a/k/a Tio, 59, of Lawrence, Mass.;
12. Jesus Rojas, 27, of Lawrence, Mass.; and
13. Erick Andres Martinez, 20, of Haverhill, Mass.;
According to the criminal complaint, the investigation revealed that Diaz, Cruz, and Perez Soto led a drug trafficking organization that distributed drugs throughout the Merrimack Valley. Flaco, Mejia Rodriguez, Rodriguez Jimenez, and others were drug sources for this drug trafficking organization. De La Rosa worked at the direction of Rodriguez Jimenez. Bernechea, Mendoza, Cann, Mejia, Rojas, and Martinez worked at the direction of Diaz, Cruz, and Perez Soto distributing fentanyl and cocaine.
Today, agents seized approximately $74,000 cash and approximately four kilograms of suspected fentanyl after executing search warrants across various locations in Billerica, Methuen, Lawrence, and Ayden, N.C.
The charge of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years and up to life of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
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. Valuable assistance was provided by Homeland Security Investigations in Boston and the Andover, Billerica, Haverhill, Lawrence, Lowell, Methuen, North Andover, Salem (NH), Tewksbury, and Wilmington Police Departments. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Randolph Man Arrested for Sex Trafficking MinorRead the Press Release
BOSTON – A Randolph was arrested yesterday and charged with sex trafficking a minor.
Admilson Pires, 23, was indicted on one count of conspiracy to commit sex trafficking of a minor and one count of sex trafficking of a minor. Following an initial appearance in federal court in Boston, Pires was detained pending an arraignment and detention hearing scheduled for Dec. 22, 2020.
According to the indictment, Pires trafficked a minor in Norwood in July and August 2019.
The charge of sex trafficking a minor provides for a mandatory minimum sentence of 10 years and up to life in prison, five years of supervised release and a fine of $250,000. The charge of conspiracy to commit sex trafficking of a minor provides for a sentence of up to life in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district 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; Arlington Police Chief Juliann Flaherty; Norwood Police Chief William G. Brooks; and Commissioner Carol Mici of the Massachusetts Department of Corrections made the announcement today. Valuable assistance was provided by the Boston and Randolph Police Departments and the Massachusetts State Police. The case was investigated by the Human Trafficking-Child Exploitation Task Force. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Civil Rights Enforcement Team is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Leader of Latin Kings in Massachusetts Sentenced for Drug Conspiracy ChargesRead the Press Release
BOSTON – A leader of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced today for drug conspiracy charges.
Bienvenido Nunez, a/k/a “King Apache,” 33, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 18 months in prison and three years of supervised release. In October 2020, Nunez pleaded guilty to conspiracy to distribute cocaine base. Nunez was charged in December 2019, at which time he was identified as the Inca, or leader, of the Massachusetts Latin Kings.
Nunez admitted that he conspired with other Latin Kings members and leaders to possess cocaine base (also known as crack cocaine) with the intent to distribute it. In September 2019, Nunez conspired with others to obtain cocaine base from members of the Latin Kings in New Bedford for resale. On Sept. 29, 2019, Nunez was captured in a video recording in the basement of a Latin Kings trap house in New Bedford bagging about an amount of cocaine base for street-level distribution.
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 in Boston returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Bienvenido Nunez is the eighth 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 Worcester Police Chief Steven M. Sargent made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard 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.
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.
Former Leader of New Bedford Latin Kings Chapter Sentenced for Narcotics Conspiracy ChargesRead the Press Release
BOSTON – A former leader of the New Bedford Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced today for drug conspiracy charges.
Xavier Valentin-Soto, a/k/a “King X,” 33, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 65 months in prison and three years of supervised release after pleading guilty in September 2020 to conspiracy to distribute cocaine. Valentin-Soto was charged in December 2019, while serving a related sentence in state prison. Prior to his incarceration on the state charges, Valentin-Soto was the Cacique (or second-in-command) of the New Bedford Chapter of the Latin Kings.
Valentin-Soto admitted that he conspired with other Latin Kings members and leaders to distribute cocaine and cocaine base in and around New Bedford. As Cacique, Valentin-Soto held a leadership role in the drug distribution conspiracy that the Latin Kings maintained in and around multiple trap houses throughout the north side of New Bedford.
Valentin-Soto was arrested in July 2017, when local police executed a search warrant at a Latin Kings trap house in north New Bedford and located cocaine and materials for the packaging and distribution of controlled substances. Valentin-Soto was charged in state court, but released after posting bail. While on pretrial release for the state charges, Valentin-Soto sold a total of 160 grams of cocaine powder to a cooperating witness over the course of three recorded purchases in early 2019.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Xavier Valentin-Soto is the ninth 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 New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard and Mark Grady 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.
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.
Dominican National Sentenced for Drug TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for heroin trafficking.
Alexander Martinez-Peguero, 38, who previously resided in Lawrence, was sentenced by U.S. District Court Judge Allison D. Burroughs to 30 months in prison and two years of supervised release. In January 2020, he pleaded guilty to conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin. In January 2019, Alexander was charged along with his brother, Angel Martinez-Peguero, 28, who pleaded guilty and is scheduled to be sentenced on Jan. 14, 2021.
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 today. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Boston Man Arrested on Federal Child Pornography ChargeRead the Press Release
BOSTON – A Boston man was arrested yesterday and charged with a child pornography offense.
Paul Fest, 50, was charged by criminal complaint with one count of possession of child pornography. Following an initial appearance yesterday before U.S. Magistrate Judge Donald L. Cabell, Fest was detained pending a probable cause and detention hearing scheduled for Dec. 18, 2020.
According to the charging documents, agents executed a search warrant at Fest’s Beacon Hill residence yesterday morning and seized a computer and multiple external storage devices. During the preliminary on-scene review of one thumb drive, nearly 100 videos of child pornography were discovered.
Due to his prior felony conviction, Fest faces a mandatory minimum sentence of 10 years and up to 20 years in prison, five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Boston Police Commissioner William Gross made the announcement. Assistant U.S. Attorney Charles Dell’Anno 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fall River Woman Sentenced for Social Security FraudRead the Press Release
BOSTON – A Fall River woman was sentenced today in federal court for stealing Social Security disability benefits.
Gloria Camara, 58, was sentenced by U.S. District Court Judge Indira Talwani to time served and three years of supervised release, with the first five months to be served on home confinement. She also was ordered to pay restitution to the Social Security Administration (SSA) in the amount of $84,222. In August 2020, Camara pleaded guilty to one count of theft of public funds and one count of making a false statement.
Camara began receiving Social Security disability benefits in 1992. In November 2009, she began working as a caregiver, but she did not report her income to the SSA. Instead, during periodic eligibility reviews, including a review on April 20, 2017, Camara falsely told Social Security that her only income consisted of three months of unemployment compensation benefits in 2008, and sporadic wages from two companies between 2003 and 2011. Because she did not report her earnings as a caregiver, Camara stole approximately $84,222 in Social Security benefits from November 2009 through October 2019.
United States Attorney Andrew E. Lelling and Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Dorchester Woman Sentenced for Stealing Social Security and SNAP BenefitsRead the Press Release
BOSTON – A Dorchester woman was sentenced today for stealing over $80,000 in Social Security and Supplemental Nutrition Assistance Program (SNAP) benefits.
Phaedra M. Sheets, 46, was sentenced by U.S. District Court Judge Patti B. Saris to eight months of home confinement and three years of supervised release. Sheets also was ordered to pay restitution of $85,559 to the Social Security Administration (SSA) and to the Massachusetts Department of Transitional Assistance. In September 2020, Sheets pleaded guilty to two counts of theft of public funds.
Sheets’ mother was receiving Social Security benefits and SNAP benefits at the time of her death in November 2009. Her death was never reported to the SSA nor to the Massachusetts Department of Transitional Assistance, and the agencies continued to pay monthly benefits on her behalf. When SSA attempted to contact Sheets’ mother to perform a review of her benefits claim, Sheets posed as her mother and directed SSA to deposit her mother’s benefits into various bank accounts, from which Sheets withdrew the funds. Sheets also impersonated her deceased mother in interactions with the Department of Transitional Assistance and used her mother’s SNAP card to make purchases for nearly nine years after her death.
From December 2009 to September 2018, Sheets stole approximately $71,636 in Social Security benefits and approximately $13,923 in SNAP benefits.
United States Attorney Andrew E. Lelling; Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Brockton Tax Preparer Pleads Guilty to Tax FraudRead the Press Release
BOSTON – The owner of a tax preparation business in Brockton pleaded guilty today to preparing false tax returns for others as well as filing a false tax return for himself.
Jose Miguel Spinola, 51, pleaded guilty to two counts of preparing false tax returns and one count of filing a false tax return. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for March 23, 2021. In June 2020, Spinola was charged by indictment.
On numerous occasions between 2014 and 2017, Spinola prepared and filed income tax returns for clients that contained false, inflated and incorrect information on his clients’ IRS Form 1040, U.S. Individual Income Tax Returns and attached schedules. Spinola added false, inflated and ineligible expenses on his clients’ Schedules A for medical and dental expenses and unreimbursed employee business expenses, including claimed meals and entertainment, business miles and work apparel. By inflating Schedule A deductions, Spinola decreased his clients’ taxable income and effectively increased the clients’ tax refunds. Spinola informed his clients of the total tax refund they would receive from the IRS without telling the clients about the false, inflated, or ineligible expenses Spinola deducted from his clients’ income tax returns.
Each count of aiding the preparation of false tax returns and filing false tax returns provides for a sentence of up to three 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 E. Lelling and Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Stoughton Man Pleads Guilty to Drug Distribution ChargesRead the Press Release
BOSTON – A Stoughton man with ties to the Orchard Gardens housing development in Roxbury pleaded guilty today in federal court in Boston to drug trafficking charges.
Dashawn Matthews, 31, pleaded guilty to distribution and possession with intent to distribute fentanyl and cocaine base (also known as crack cocaine). U.S. District Court Judge William G. Young scheduled sentencing for April 6, 2021.
During an investigation into drug trafficking and violence in the Orchard Gardens housing development, a cooperating witness and an undercover police officer made eight purchases of fentanyl, crack cocaine or both from Matthews. In total, between May and August 2019, Matthews distributed approximately 120 grams of fentanyl and 98 grams of crack cocaine. Most of the sales took place a short distance away from the Orchard Gardens housing development.
The charge of distribution and possession with intent to distribute fentanyl and cocaine base provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew 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. Assistant U.S. Attorney Christopher Pohl of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Chief of Staff to Former Fall River Mayor Enters Guilty PleaRead the Press Release
BOSTON – The Chief of Staff to then Fall River Mayor Jasiel Correia entered a guilty plea today to charges of extortion, bribery and making false statements.
Genoveva Andrade, 49, of Somerset, agreed to plead guilty to two counts of extortion conspiracy, two counts of extortion, one count of bribery and one count of false statements. U.S. Senior District Court Judge Douglas P. Woodlock took the plea under advisement pending sentencing, which is scheduled for April 27, 2021. Andrade was arrested and charged on Sept. 6, 2019.
At a change of plea hearing today, Andrade admitted to conspiring with Correia to extort a marijuana vendor for $150,000 in return for a letter of non-opposition from Correia. Under Massachusetts law, non-opposition letters from the head of local government are required in order to obtain a license to operate a marijuana business. After the vendor agreed to pay Correia $150,000 for the letter, Andrade said to him, “you’re family now.”
Andrade also admitted to conspiring with Correia to extort a Fall River business owner. Specifically, Andrade conspired with Correia to obtain a stream of benefits, including cash and a Rolex watch valued at approximately $7,500 to $12,000, in exchange for official action and assistance that was favorable to the business owner.
In a third criminal scheme, Andrade admitted that soon after Correia hired her as his Chief of Staff in November 2017, Andrade began kicking back half of her salary to Correia on a bi-weekly basis until July 2018. She also kicked back nearly all of the $10,000 city-funded “snow stipend” that Correia approved for Andrade.
Finally, Andrade admitted to making false statements to federal agents in December 2018 in connection with the corruption investigation into Correia.
United States Attorney Andrew E. Lelling; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Glenn A. Cunha, Massachusetts Inspector General made the announcement. Assistant U.S. Attorney Zachary Hafer, Chief of Lelling’s Criminal Division, is 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.
Former Massachusetts State Police Troopers Charged with Conspiracy to Embezzle Overtime Funds and Wire FraudRead the Press Release
BOSTON – Former Massachusetts State Police (MSP) Lieutenant Daniel J. Griffin and former MSP Sergeant William W. Robertson were arrested today and charged in federal court in Boston with conspiracy, federal programs embezzlement and wire fraud in connection with an overtime scheme dating back to 2015. Griffin was also charged with filing false tax returns and wire fraud related to his scheme to defraud a private school.
Griffin, 57, of Belmont, was indicted on one count of conspiracy, one count of theft concerning a federal program, eight counts of wire fraud and 11 counts of assisting in filing false tax returns. Griffin was arrested this morning and will appear in federal court in Boston this afternoon.
Robertson, 58, of Westborough, was indicted on one count of conspiracy, one count of theft concerning a federal program and four counts of wire fraud. Robertson was also arrested this morning and will appear in federal court in Boston this afternoon.
According to the indictment, from 2015 through 2018, Griffin, Robertson, and other troopers in the Traffic Programs Section at State Police Headquarters in Framingham conspired to embezzle thousands of dollars in federally funded overtime by regularly arriving late to, and leaving early from, overtime shifts funded by grants intended to improve traffic safety. During the course of the conspiracy, Griffin made and approved false entries on police forms and other documentation to conceal and perpetuate the fraud.
When MSP overtime misconduct came to light in 2017 and 2018, Griffin, Robertson and their coconspirators allegedly took steps to avoid detection by shredding and burning records and forms. It is alleged that after an internal inquiry regarding missing forms, Griffin submitted a memo to his superiors that was designed to mislead them by claiming that missing forms were “inadvertently discarded or misplaced” during office moves.
It is further alleged that while perpetuating the overtime scheme, Griffin spent significant time running his security business, KnightPro, even during hours that Griffin was collecting his regular MSP pay and overtime. From 2012 to 2019, Griffin collected almost $2 million in KnightPro revenue. Of that total, it is alleged that Griffin hid over $700,000 in revenue from the IRS and used hundreds of thousands of dollars in KnightPro income to fund personal expenses, such as golf club expenses, car payments, private school tuition and expenses related to his second home on Cape Cod.
Griffin was also charged with defrauding a private school attended by two of his children from at least 2016 to 2019 by concealing his KnightPro income and filing materially misleading financial aid applications, which understated his income and assets by hundreds of thousands of dollars. Despite Griffin’s lucrative MSP salary and KnightPro business, Griffin obtained over $175,000 in financial aid from the private school over the course of several years.
“Today’s charges involve losses for the taxpayers, and also for the Massachusetts State Police, a premier law enforcement institution that must do a better job self-policing and eliminating this kind of misconduct,” said U.S. Attorney Andrew Lelling. “Everyone must be treated equally under the law, and we will keep doing these cases until this kind of abuse stops - abuse that is deeply unfair to the vast majority of law enforcement officers who are doing their job the right way, already under difficult circumstances.”
“Today’s arrest and charges demonstrates the Department of Transportation Office of Inspector General’s (DOT OIG) commitment to ensuring recipients of DOT grants and funds uphold the high standard of stewardship that every American taxpayer expects and deserves,” said Douglas Shoemaker, Special Agent-in-Charge, DOT OIG-Northeast Region. “We will continue working with our Federal and State law enforcement and prosecutorial partners to pursue individuals who intentionally abuse federally-funded programs for their personal benefit and enrichment.”
“Today we arrested two former state troopers for their alleged roles in a blatant overtime fraud scheme and their attempts to cover it up. Both men are accused of abusing their positions to steal tens of thousands of dollars in scarce federal grants while neglecting to enforce important traffic safety laws,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “In Lt. Griffin’s case, we believe he even went as far as underreporting his income to the IRS and his children’s private school to increase the amount of financial assistance they received. This deliberate abuse of authority will not be tolerated, and the FBI will continue to pursue anyone who fraudulently siphons public funds.”
“The defendants were members of the law enforcement community which is incredibly troubling,” said Acting Special Agent in Charge Joleen Simpson of the Internal Revenue Service - Criminal Investigation Division. “The residents of Massachusetts put their trust in the defendants to uphold the law, and that trust, was broken. But let me be absolutely clear. These charges should in no way be a reflection on the more than 2,000 Massachusetts troopers who serve the Commonwealth with honor and integrity every day.”
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 $250,000. The charge of federal program fraud provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy 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 filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S Attorney Lelling, DOT OIG-Northeast Region SAC Shoemaker, FBI Boston SAC Bonavolonta and IRS-CI Acting SAC Simpson made the announcement today. Assistant U.S. Attorney Dustin Chao of Lelling’s Public Corruption Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.