District of Massachusetts

BOSTON – Two members of the violent transnational criminal gang known as “La Mara Salvatrucha” or “MS-13” pleaded guilty in federal court yesterday to RICO conspiracy and admitted to their participation in the July 2018 murder of a teenage boy in Lynn. 

Erick Lopez Flores, a/k/a “Mayimbu,” 31, of Lynn, and Marlos Reyes, a/k/a “Silencio,” 20, of Chelsea, pleaded guilty in separate proceedings before Senior U.S. District Court Judge Mark L. Wolf to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, also known as RICO conspiracy, on behalf of the MS-13 gang. As part of their plea, the defendants admitted that on July 30, 2018, they participated in the murder of  a teenage boy who was murdered with extreme atrocity and cruelty, and with deliberate premeditation, in violation of Massachusetts law. Sentencing is scheduled for Oct. 14, 2020

According to court documents, MS-13 is a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including Massachusetts. MS-13 members often commit acts of violence against rival gang members, those suspected of cooperating with law enforcement, and others. In recent years, dozens of MS-13 members have been convicted of RICO conspiracy and other serious felonies in the District of Massachusetts. 

Both Lopez Flores and Reyes belonged to the “Sykos Locos Salvatrucha” clique of MS-13, which operated in Lynn, Chelsea and other parts of Massachusetts. Lopez Flores was one of the leaders of the Sykos clique. Both defendants admitted that their racketeering activity on behalf of MS-13 included acts involving murder. 

Specifically, Lopez Flores and Reyes admitted that they participated in the July 30, 2018 murder of a teenage boy, whose body was found in a wooded area in Lynn on Aug. 2, 2018.  The victim was found dead with dozens of sharp force trauma wounds consistent with being stabbed numerous times. The investigation revealed that Lopez and others had lured the victim to the wooded park a few days prior, where they murdered him because they did not believe he was sufficiently loyal to the group. 

Lopez Flores and Reyes are two of six alleged MS-13 members arrested in October 2018.

The charge of RICO conspiracy involving murder provides for a sentence of up to life in prison, five years of supervised release, a fine up to $250,000 and restitution. 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; Essex County District Attorney Jonathan Blodgett; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Lynn Police Chief Michael Mageary made the announcement . The Boston, Chelsea, and Peabody Police Departments, as well as the Massachusetts Department of Corrections, provided valuable assistance with the investigation.

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

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

BOSTON – A former Raytheon systems engineer was sentenced today for illegally retaining national defense information. The defendant retained 31,000 pages of information that was marked as classified, some of which pertained to U.S. missile defense and was classified at the SECRET level, and altered or obliterated the classification markings on documents.

Ahmedelhadi Yassin Serageldin, 67, of Sharon, was sentenced by U.S. District Court Judge Patti B. Saris to 18 months in prison, one year of supervised release and ordered to pay a fine of $10,000. In December 2019, Serageldin pleaded guilty to one count of willfully retaining national defense information.

Serageldin was a systems engineer at Raytheon Technologies in Massachusetts from August 1997 until he was terminated in May 2017. Serageldin had a SECRET level security clearance in order to complete his assignments on several defense contracts for the U.S. government involving military radar technology. 

After Raytheon raised suspicions to federal authorities about whether Serageldin was being candid during an internal investigation of his computer usage, agents followed Serageldin to a local library where they discovered that he was researching how to delete files from his computer. During the execution of search warrants, over 3,100 electronic files and over 110 paper documents belonging to Raytheon or the Department of Defense, over 570 of which were marked as containing classified information, were recovered. The documents marked as containing classified information totaled approximately 31,000 pages in length. Court documents list five specific documents, all of which pertain to U.S. military programs involving missile defense and are classified at the SECRET level. It was also determined that Serageldin had altered or obliterated the classification markings on approximately 50 documents.

United States Attorney Andrew E. Lelling; Assistant Attorney General John C. Demers of the Justice Department’s National Security Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Michael Wiest, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office made the announcement today. Assistance with the investigation was provided by the Air Force Office of Special Investigations and the Internal Revenue Service’s Criminal Investigations in Boston. Raytheon Technologies has cooperated with the investigation, which was launched after they notified federal authorities about the suspicious conduct. Assistant U.S. Attorney Scott L. Garland, Deputy Chief of Lelling’s National Security Unit, prosecuted the case with assistance from Trial Attorney Scott Claffee of the Justice Department’s National Security Division.

BOSTON – An Auburn man was arrested and charged with possession of child pornography.    

Jesse Laino, 26, was charged in a criminal complaint with one count of possession of child pornography. Laino was released on conditions following an initial appearance in federal court in Worcester today.

As alleged in charging documents, federal agents executed a search of Laino and his residence and seized two cellphones that contained child pornography, including hundreds of images and dozens of videos.

The charging statute 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; Michael Shea, 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 John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.

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

BOSTON – The Montachusett Regional Transportation Authority (MART), a transportation broker for MassHealth, has agreed to pay $300,000 to resolve allegations that it violated the False Claims Act by submitting reimbursement claims for rides that never happened.  

As a state Medicaid program, which the federal government jointly finances, MassHealth must provide its members with non-emergency transportation to and from medical appointments that MassHealth covers. MassHealth uses transportation brokers, including MART, to help its members find these rides. MART in turn contracts with third-party transportation companies to provide rides to MassHealth members. MART pays the transportation companies for the rides and submits reimbursement claims to MassHealth for the costs of the rides. In addition, MassHealth’s parent agency, the Executive Office of Health and Human Services (EOHHS), pays MART a management fee for its brokerage services.

The government alleges that, from Jan. 1, 2011 through Dec. 31, 2015, MART submitted reimbursement claims to MassHealth for thousands of rides that MART’s contracted transportation companies did not actually provide. MART’s contract with EOHHS required MART to have “procedures to verify that scheduled trips were performed as authorized and as billed, and that the Transportation Provider performed Consumer trips in a timely and satisfactory manner.” According to the allegations in the settlement agreement, however, MART’s verification procedures were not sufficient to prevent transportation companies from submitting false invoices to MART, resulting in MART then billing the invoiced amounts to MassHealth.

“MART obtained reimbursement from MassHealth for services that its vendors did not actually deliver,” said United States Attorney Andrew E. Lelling.  “We expect companies doing business with the government to comply with their contractual obligations. This office will continue to pursue those responsible for undermining the benefits that the government has bargained for.” 

“The Medicaid program provides health care benefits to low-income individuals and families. Billing for transportation services that were never provided is a waste of valuable taxpayer funds that are intended to provide critical services to those in need,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services Office of Inspector General. “This settlement is an example of how the State and the Federal government can work together to recoup and deter overbilling practices.”

“Not only did the Montachusett Regional Transportation Authority try to steal from a government program intended to support a vulnerable population, but they saddled taxpayers with the bills,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s settlement underscores the FBI’s commitment to working with our law enforcement partners in rooting out Medicaid fraud and ensuring that businesses aren’t taking more than what they have legitimately earned.”

U.S. Attorney Lelling, Massachusetts Attorney General Maura Healey, HHS-OIG SAC Coyne and FBI Boston SAC Bonavolonta made the announcement today. The matter was handled by Assistant U.S. Attorney Evan Panich of Lelling’s Office.

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

Wagner Sozi, 32, was indicted on two counts of wire fraud, one count of aggravated identity theft and one count of making a false claim to the United States. Sozi was initially charged by criminal complaint and arrested on June 25, 2020. He was released on conditions following a detention hearing before U.S. Magistrate Court Judge David H. Hennessy on June 30, 2020.

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

Court documents reflect that Sozi, along with a female accomplice, opened credit accounts at an office supply retailer under various fake identities and then used these accounts to purchase Visa gift cards, resulting in a loss to the retail chain of more than $100,000. Sozi allegedly used another stolen identity to purchase a Rolex for more than $15,000. It is further alleged that he also possessed a Maine driver’s license, bearing his photograph and the name of an identity theft victim, which was used to open a bank account and to make large purchases at an Apple Store.

Following his arrest on June 25, 2020, agents seized documents from Sozi’s apartment, including a PUA debit card in another individual’s name. Further investigation revealed that the PUA claim associated with the seized debit card listed Sozi’s address as the mailing address and that another fraudulent PUA claim had been submitted under Sozi’s own name but with another person’s Social Security number.

The charges of wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a mandatory consecutive sentence of two years in prison, up to one year of supervised release and a fine of up to $250,000. The false claim charge provides for a sentence of up to three 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; Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; 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 today.  The Commonwealth of Massachusetts, Department of Unemployment Assistance, Program Integrity Unit, the Massachusetts State Police and the Malden, Medford and Braintree Police Departments provided valuable assistance with the investigation. Assistant U.S. Attorney Bill Abely, Deputy 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.

BOSTON – A Boylston man was sentenced today to prison for filing false and fraudulent corporate and individual tax returns.

Robert Fuller, 70, was sentenced by U.S. District Court Judge Timothy S. Hillman to six months in prison, one year of supervised release and ordered to pay restitution of $451,535 to the Internal Revenue Service. In February 2020, Fuller pleaded guilty to a two counts of filing false corporate and personal tax returns.

In 2013, 2014, 2015 and 2016, Fuller, who is the owner of Fuller Motor Home in Boylston, Mass, omitted more than $900,000 in income from his corporate tax returns by cashing checks written to the business and not reporting the cashed checks to his tax preparers. Fuller also failed to report any of this diverted income as income on his personal tax returns as he was required to do.

United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office prosecuted the case.

BOSTON – Two Colombian men and two Massachusetts men have been arrested and charged in connection with organized crime in the Republic of Colombia.

Fabio de Jesus Yepes Sanchez, 54, and Mario Zapata Velez, 39, both of Medellín, were charged in indictments unsealed today with conspiracy to commit extortion, conspiracy to commit money laundering, conspiracy to make extortionate threats, interstate travel in aid of racketeering, collection of credit by extortionate means and conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Yepes and Zapata were arrested by Colombian authorities on Wednesday, July 15, 2020.

Miguel Colindres, 59, and Juan Pablo Ariasgil, 39, both of Lowell, were indicted today on conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Colindres and Ariasgil were previously charged by criminal complaint and arrested on July 15.

According to charging documents, Yepes and Zapata were members of La Oficina de Envigado (La Oficina), a criminal organization based in Medellín, Colombia. La Oficina originated in the 1980s when its members provided enforcement and collection services for the Medellín Cartel, including deceased Medellín Cartel leader Pablo Escobar. Today, La Oficina is allegedly involved in international narcotics trafficking, drug debt collection, money laundering, extortion and murder for hire.

It is alleged that Yepes and Zapata conspired to use threats to extort approximately $750,000 in drug debt from two cocaine traffickers based in Massachusetts.  Yepes and Zapata also conspired with Colindres and Ariasgil to possess with intent to distribute and to distribute five kilograms or more of cocaine in Massachusetts. Colindres and Ariasgil also allegedly possessed with intent to distribute 500 grams or more of cocaine.

The operation, dubbed “Operation Týr,” was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.

The charges of conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $10 million. The charges of extortion conspiracy and collection of extensions of credit by extortionate means each provide for a sentence up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of interstate travel in aid of racketeering provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charges of money laundering and money laundering conspiracy each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000, or twice the value of the property involved in the transaction, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

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. The Criminal Division’s Office of International Affairs of the Justice Department, Internal Revenue Service’s Criminal Investigations in Boston and the Government of Colombia provided critical assistance with the investigation.

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

BOSTON – A Holyoke man was sentenced on Friday, July 17, in federal court in Springfield for drug possession and distribution charges. 

Roberto Santiago, 45, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 10 months in prison and three years of supervised release. Santiago sold cocaine on Sept. 30, 2019 in Holyoke. The arrest was the result of a multi-agency investigation into heroin trafficking in Holyoke dubbed “Operation Open Air.” 

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Holyoke Police Chief Manny Febo made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

BOSTON – A Lawrence man was charged yesterday with being a felon in possession of a firearm and ammunition.

Stephen Skeirik, 36, was charged by criminal complaint with being a felon in possession of a firearm and ammunition. Skeirik is currently serving a state sentence and is scheduled to appear in federal court in Boston on July 23, 2020.

According to charging documents, on Feb. 27, 2020, police observed Skeirik and another individual engage in a suspected drug transaction. When detectives approached Skeirik, he ran and threw a loaded Rugar .380 caliber pistol into a neighboring yard. During a search of his home detectives located another loaded firearm – a Rugar 9mm pistol loaded with seven rounds of ammunition, drug paraphernalia, police badges and clothing and handcuffs.

Due to previous convictions punishable by more than one year in prison, Skeirik is prohibited from possessing firearms and ammunition.

The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, 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 D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division made the announcement. Valuable assistance was provided by the Massachusetts Parole Board, Lawrence Police Department and the Essex County District Attorney’s Office. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.

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

BOSTON – A Lawrence man was charged yesterday with being a felon in possession of a firearm and ammunition.

Nathaniel Toribio, 22, charged by criminal complaint with being a felon in possession of a firearm and ammunition, made an initial appearance yesterday in federal court in Boston.  He was detained pending a detention hearing scheduled for July 20, 2020.

As alleged in court documents, on Nov. 24, 2019, state parole officers were in Lawrence in an attempt to locate Toribio, who had removed his GPS monitoring device and absconded from parole supervision. Upon locating Toribio, the officers discovered an un-holstered, loaded firearm inside Toribio’s waistband. The firearm was identified as a Ruger Security-9 9mm pistol with 10 rounds of ammunition in the magazine. Toribio was arrested and charged in state court.

Due to previous convictions punishable by more than one year in prison, Toribio is prohibited from possessing firearms and ammunition.

The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, 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 D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division made the announcement. Valuable assistance was provided by the Massachusetts Parole Board, Lawrence Police Department and the Essex County District Attorney’s Office. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.

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

BOSTON – A Winchester man was indicted yesterday in connection with allegedly filing fraudulent loan applications seeking more than $13 million in forgivable loans guaranteed by the Small Business Administration (SBA) for COVID-19 relief through the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act. 

Elijah Majak Buoi, 38, was indicted on four counts of wire fraud and one count of making a false statement to a financial institution. Buoi was arrested and charged by criminal complaint in June 2020.

According to the indictment, Buoi is the president and CEO of an information technology services company, Sosuda Tech, LLC. Between April 2020 and June 2020, Buoi allegedly submitted fraudulent applications for over $13 million in PPP loans through SBA-approved lenders. In these applications, Buoi misrepresented the number of employees and payroll expenses and falsely certified that the United States was the primary residence for his employees. Buoi also allegedly submitted falsified documentation in support of his applications for PPP funds. The indictment further alleges that Buoi ultimately received over $2 million in PPP funds.

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses. 

The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of making a false statement to a financial institution provides for a sentence of up to 30 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. 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; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Inspector General Mark Bialek of the Board of Governors of the Federal Reserve System and the Consumer Protection Bureau, Office of Inspector General; Kevin Kupperbusch, Special Agent in Charge of the Small Business Association, Office of Inspector General, Eastern Regional Office; and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation, Officer of Inspector General made the announcement today. Assistant U.S. Attorneys Mackenzie Queenin and Carol Head of Lelling’s Office and Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section are prosecuting the case.

Massachusetts residents with information about attempted fraud involving COVID-19 should contact (add our hotline/email). Information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (BCDF) hotline by phone (1-866-720-5721) or via an online reporting form available at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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

BOSTON – A Rhode Island man pleaded guilty yesterday in federal court in Boston in connection with a conspiracy to launder funds derived from Business Email Compromise (BEC) fraud schemes, including one that targeted a Dorchester, Mass. real estate attorney.    

Sayon Balogun a/k/a “Oshine,” 32, a dual citizen of the United States and Nigeria, pleaded guilty to one count of money laundering conspiracy before U.S. Senior District Court Judge Douglas P. Woodlock, who scheduled sentencing for Nov. 10, 2020. Balogun was initially charged by criminal complaint on May 31, 2019, and arrested in Florida on June 10, 2019.

In January 2018, Balogun’s co-conspirators gained access to email accounts belonging to a Massachusetts attorney engaged in real estate closings. The co-conspirators then mimicked (spoofed) the real estate attorney’s email account and sent emails to a Massachusetts resident who was the purchaser in a legitimate real estate transaction. The spoofed emails directed the Massachusetts real-estate purchaser to wire transfer $531,981 (which the purchaser believed was for a legitimate real estate transaction) to the Wells Fargo account of a California woman, who in turn sent $60,000 to an account in the name of “David Tecum,” a fraudulent identity used by one of Balogun’s co-conspirators, Oghenetchouwe Adegor Ederaine, Jr. This account, and others, were opened by Ederaine to receive fraudulent proceeds at Balogun’s direction.

Ederaine pleaded guilty to aggravated identity theft and money laundering conspiracy and was sentenced to 40 months in prison.   

The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the funds laundered in the 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The United States Attorney’s Office and the FBI in the Southern District of Florida provided valuable assistance. Assistant U.S. Attorney David D’Addio of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.

BOSTON – The regional president of the Brockton/East Bridgewater Chapters of the Outlaws Motorcycle Club pleaded guilty yesterday to possession of an unregistered firearm.

Bruce Sartwell, a/k/a “Monster,” 48, of East Bridgewater, pleaded guilty to one count of possession of an unregistered firearm and 153 rounds of 5.56 caliber ammunition before U.S. District Court Judge Denise J. Casper, who scheduled sentencing for Nov. 10, 2020. On Oct. 30, 2019, following the execution of a federal search warrant, Sartwell was arrested and charged. 

On Oct. 19, 2019, agents intercepted a package originating in China and addressed to Sartwell that was declared as a “Fuel Filter” but actually contained a firearm silencer. A review of importation records revealed that Sartwell had received approximately 65 shipments from Asia (including over 55 from China), many of which were labeled as innocuous items that could have been more easily and cheaply purchased in the United States. During the investigation, law enforcement determined that Sartwell is the Regional President of the Brockton/East Bridgewater Chapters of the Outlaws Motorcycle Club.

On Oct. 30, 2019, a search was executed at Sartwell’s residence. Twelve or more AR-15 style Air-Soft rifles discovered in Sartwell’s garage were later determined not to be firearms. Hidden in the garage was an AR-15 styled “ghost gun” (a firearm without any manufacturing or serial numbers), two empty 30 round magazines, firearm manufacturing tools, assembly parts including milling equipment, buffer spring, buffer tube and a drill press. The AR-15 was later successfully test fired.

In addition, hidden compartments were located in Sartwell’s bedroom that concealed 153 rounds of 5.56 caliber ammunition compatible with the AR-15 styled rifle, two firearm silencers, a guide for assembly and disassembly of an AR-15 rifle, 20 knives, a black powder handgun and a flare gun. In the basement of the house, a floor-length mirror concealed the entrance to a hidden storage area that was found to contain a safe with silencer parts and a firearm assembly instruction book.

The charge of possession of an unregistered 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; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division made the announcement today. The U.S. Postal Inspection Service; Customs and Boarder Protection; Massachusetts State Police; East Bridgewater Police Department; Bristol County Sheriff’s Office; and the Massachusetts Environmental Protection Agency provided assistance with the investigation. Assistant U.S. Attorneys Kenneth G. Shine and Linsey Weinstein of Lelling’s Criminal Division are prosecuting the case. 

BOSTON – A leader of the Worcester Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to drug distribution charges.

Alvin Mojica, a/k/a “King Humble,” 32, pleaded guilty to one count of distribution of cocaine. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Oct. 28, 2020.  Mojica was arrested and charged in December 2019, at which time he was the leader of the Worcester based Chapter of the Latin Kings.

During the plea proceedings, Mojica admitted that in May 2019 he distributed just under 14 grams of cocaine to a cooperating witness in an audio/video recorded transaction. 

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.

Mojica is the third defendant to plead guilty in the case.

The charge provides for a sentence of up to 20 years in prison, a minimum of three years and up to life of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; 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 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.

BOSTON – A Canadian man was sentenced to prison today for paying approximately $200,000 to conspire with others to secure his children’s admission to college by cheating on their college entrance exams.

David Sidoo, 61, of Vancouver, Canada, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to three months in prison, one year of supervised release and ordered to pay a fine of $250,000. In March 2020, Sidoo pleaded guilty to one count of conspiracy to commit mail and wire fraud. 

In 2011, Sidoo agreed to pay $100,000 to co-conspirator William “Rick” Singer to have another co-conspirator, Mark Riddell, secretly take the SAT in place of his older son. The following year, Sidoo agreed to pay $100,000 to have Riddell take the SAT in place of his younger son. 

As part of the scheme, Sidoo engaged in various other types of fraud related to the college admissions and application process. In the summer of 2012, Riddell flew to Vancouver to take a high school exam for Sidoo’s older son. In the fall of 2013, Sidoo and Singer crafted a college application admissions essay for Sidoo’s son that falsely claimed that Sidoo’s son had been held up at gunpoint by members of a Los Angeles street gang and that he had then been rescued by a rival gang member. In 2015 and 2016, Riddell, Singer and Sidoo explored cheating on various graduate school admissions tests, although they ultimately did not pursue this plan. 

Singer and Riddell have 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; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Karin M. Bell and Stephen E. Frank 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.

BOSTON – A California woman was sentenced today in connection with paying $9,000 to have an individual take online classes for her son, in order to earn credits to facilitate his graduation from Georgetown University.

Karen Littlefair, 57, of Newport Beach, Calif., was sentenced by U.S. District Court Judge Allison D. Burroughs to five weeks in prison, two years of supervised release which includes 300 hours of community service, and a fine of $209,000. In January 2020, Littlefair pleaded guilty to one count of conspiracy to commit wire fraud.

Littlefair agreed with William “Rick” Singer and others to pay approximately $9,000 to have an employee of Singer’s for-profit college counseling business, The Edge College & Career Network (“The Key”), take online classes in place of Littlefair’s son and submit those fraudulently earned credits to Georgetown to facilitate his graduation. The Key employee allegedly completed four classes for Littlefair’s son at Georgetown and elsewhere, and in exchange, Littlefair paid Singer’s company approximately $9,000. Littlefair’s son graduated from Georgetown, using the credits earned by the Key employee, in May 2018. 

Singer previously pleaded guilty and is 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; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Karin M. Bell and Stephen E. Frank of Lelling’s Criminal Division are prosecuting the case.

The details contained in the court documents are allegations. The remaining defendants are presumed not guilty unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – An Ashburnham man pleaded guilty yesterday in federal court in Worcester to selling firearms on three occasions in 2019 in Fitchburg.

Terrick Bishoff, 39, pleaded guilty to one count each of unlawful possession or transfer of a machine gun, dealing in firearms without a license and possession of a machinegun without a serial number. U.S. District Court Judge Timothy J. Hillman scheduled sentencing for Oct. 27, 2020. Bishoff was arrested on Sept. 24, 2019 and indicted in October 2019.

On three separate occasions in 2019, Bishoff sold firearms to an individual he did not know in Fitchburg. On May 10, 2019, Bishoff sold a Glock-style pistol without a serial number and 54 rounds of 9mm ammunition in exchange for $580. Bishoff told the buyer that the firearm was “untraceable” and that it had been custom made for a silencer. On May 15, 2019, Bishoff again met with the buyer and sold him a machinegun without a serial number and a 25 round magazine. In return, the individual paid Bishoff $2,500. On June 24, 2019, Bishoff sold the buyer a Glock-style firearm without a serial number, and a magazine, in exchange for $800. Bishoff told the buyer he was getting what he could before authorities started cracking down on firearms without serial numbers. 

The charge of unlawful possession or transfer of a machine gun 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 dealing in firearms without a license 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 possession of a machinegun without a serial number provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $10,000. 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; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Ashburnham Police Chief Lorring Barrett, Jr.; Worcester Police Chief Steven M. Sargent; and Hopkinton Police Chief Joseph Bennett made the announcement. Assistant U.S. Attorneys Michelle L. Dineen Jerrett and Kristen Noto of Lelling’s Worcester Branch Office are prosecuting the case.

BOSTON – A Weston man has agreed to plead guilty in connection with a scheme to defraud private high schools and international students of millions of dollars in tuition and other fees.

Keenam “Kason” Park, 59, of Weston, has agreed to plead guilty to one count of wire fraud. A plea hearing has not yet been scheduled by the Court. According to the terms of the plea agreement, the government will recommend a sentence of 51 months in prison, two years of supervised release, a fine and restitution/forfeiture of at least $5,192,330.

According to the charging documents, Park caused EduBoston to collect tuition and other payments from students’ families for the 2019-2020 academic year but failed to remit tuition payments to partnering schools. Instead, Park used the funds on unrelated expenses, including personal expenses. Park also caused EduBoston to collect advance tuition and other payments for the 2020-2021 academic year, which Park failed to return to the students’ families after EduBoston went out of business around September 2019. As a result, EduBoston owes over $5 million to partnering schools.

The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Leslie A. Wright of Lelling’s Securities, Financial and Cyber Fraud Unit is prosecuting the case.

BOSTON – A California couple pleaded guilty today to conspiracy charges in connection with agreeing to pay $250,000 to secure the fraudulent admission of their daughter to the University of Southern California (USC) as a purported athletic recruit.

Diane Blake, 55, and Todd Blake, 54, both of Ross, Calif., pleaded guilty to one count of conspiracy to commit wire and mail fraud and honest services wire and mail fraud. Todd Blake also pleaded guilty to one count of conspiracy to commit money laundering. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Nov. 17, 2020.

Beginning in 2017, the Blakes conspired with William “Rick” Singer and others to facilitate their daughter’s admission to USC as a purported athletic recruit. Specifically, Singer had an athletic profile of their daughter created and sent to the USC athletic admissions committee, allegedly through co-conspirator Donna Heinel, then a USC athletics administrator. As a result, their daughter was allocated an athlete admission spot even though she was not actually recruited and did not play on the USC women’s volleyball team. The Blakes paid $50,000 to USC women’s athletics and $200,000 to Singer’s non-profit charity, The Key Worldwide Foundation, as a quid pro quo for the admission spot. The Blakes concealed this deal from USC personnel.

Under the terms of Diane Blake’s plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of six weeks in prison, a $125,000 fine and two years of supervised release with 100 hours of community service. Under the terms of Todd Blake’s plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of four months in prison, a $125,000 fine and two years of supervised release with 100 hours of community service. 

Diane and Todd Blake are the 27th and 28th parents to plead guilty in the college admissions case.   

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

The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000 or twice the 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Karin M. Bell and Stephen E. Frank 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.

BOSTON – A Springfield man was indicted yesterday with racketeering offenses relating to the promotion of commercial sex. 

Kevin Smoot, 59, was indicted on one count of conspiracy to use a facility of interstate commerce to promote prostitution offenses and seven counts of use a facility of interstate commerce to promote prostitution offenses. On June 26, 2020, Smoot was arrested and charged by complaint and has been detained since his arrest.

According to the charging documents, between February 2019 and June 2020, Smoot conspired with others to promote commercial sex involving several women. Smoot promoted prostitution by transporting females to and from commercial sex appointments, recruiting and encouraging women to engage in commercial sex acts for money, and helping to procure illegal drugs for use by drug-addicted women engaged in commercial sex. It is further alleged that Smooth promoted prostitution by providing a residential location for commercial sex acts between female sex workers and male customers, taking actions to collect money from male customers, and benefiting from the proceeds of commercial sex acts performed by female sex workers.

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

United States Attorney Andrew E. Lelling; Massachusetts Attorney General Maura Healey; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County Sheriff Nicholas Cocchi; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner Cheryl Clapprood made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case. 

Members of the public who have questions, concerns, or information regarding this case should call 617-748-3274. 

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

BOSTON – A Randolph man was sentenced yesterday in federal court in Boston for distributing fentanyl. 

Anthony Pena-Diaz, 25, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to five years in prison and four years of supervised release. In February 2020, Pena-Diaz  pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and three counts of distribution of and possession with intent to distribute fentanyl.

Between May 2, 2018, and Nov. 11, 2018, an undercover federal agent purchased fentanyl from Pena-Diaz and others on multiple occasions in Randolph, Canton and Foxboro. The investigation revealed that Pena-Diaz was a member of the No Fear Ones street gang in Randolph. 

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Randolph Police Chief William Pace; Stoughton Police Chief Donna M. McNamara; and Foxboro Police Chief Michael A. Grace made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit prosecuted the case.

BOSTON – An Uxbridge man and Maryland woman were charged with conspiring to defraud the government of thousands of dollars from 2014 to 2018.

Thomas Bouchard, 57, of Uxbridge, Mass., was arrested yesterday, and Chantelle Boyd, 50, of Woodsboro, Md., was arrested on Monday, July 6, 2020, and charged with one count of conspiracy and 10 counts of theft of government funds. Boyd was also charged with false declarations before the grand jury.

As alleged in the indictment, Bouchard was the Contracting Officer in charge of the U.S. Army Natick Contracting Division, a full service contracting organization for the Department of Defense. In 2014, Bouchard allegedly used his long-standing relationship with Evolution Enterprise, Inc., a government contractor, to have Boyd hired for a “no show” job as an assistant that specifically supported Bouchard. Boyd’s position cost the Department of Defense more than $490,000 during her time at Evolution from 2014 to 2018, during which she performed little if any useful function. 

The indictment alleges that Bouchard and Boyd took numerous government-funded trips, ranging in duration from two to 15 days, under the guise that they were work related. This included 31 trips to Orlando, Fla., among other locations such as Clearwater Beach, Fla., and Stafford, Va., during which Boyd performed little if any work. For many of the trips, Bouchard and Boyd stayed in the same hotel room and spent time at the pool and Disney parks – all during business hours. It is alleged that in order to conceal the personal nature of the trips, Bouchard altered and created false travel expenses for Boyd, which Bouchard approved to reimburse Boyd for out-of-pocket expenses. 

In addition, Boyd is charged with making false statements to the grand jury in May 2018 in relation to these trips.

The conspiracy charge provides a sentence of up to five years in prison, three years of supervised release and a fine of 250,000. Each 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. The charge of lying to a grand jury provides a sentence of up to five years in prison, three years of supervised release and a fine of 250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Luis A. Hernandez, Special Agent in Charge of the General Services Administration Office of Inspector General; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service; and Michael Connor, Resident Agent in Charge of the Army Criminal Investigations Command, Major Procurement Fraud Unit made the announcement. Assistant U.S. Attorney Evan Gotlob of Lelling’s Criminal Division 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.

BOSTON – A California couple has agreed to plead guilty to conspiracy charges in connection with securing the fraudulent admission of their daughter to the University of Southern California as a purported athletic recruit.

Diane Blake, 55, and Todd Blake, 54, both of Ross, Calif., will plead guilty before U.S. District Court Judge Nathaniel M. Gorton on a date to be specified by the Court. Diane Blake will plead guilty to one count of conspiracy to commit wire and mail fraud and honest services wire and mail fraud. Todd Blake will plead guilty to one count of conspiracy to commit wire and mail fraud and honest services wire and mail fraud and one count of conspiracy to commit money laundering.

Under the terms of Diane Blake’s plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of six weeks in prison, a $125,000 fine and two years of supervised release with 100 hours of community service. Under the terms of Todd Blake’s plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of four months in prison, a $125,000 fine and two years of supervised release with 100 hours of community service. 

Diane and Todd Blake are the 27th and 28th parents to plead guilty in the college admissions case.   

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

The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000 or twice the 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Karin M. Bell and Stephen E. Frank 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.

BOSTON – A Dominican national pleaded guilty today in connection with using the identity of a U.S. citizen.

Roberto Melo Guerrero, 39, a Dominican national who formerly resided in Lawrence, pleaded guilty to one count of false representation of a Social Security number and one count of making a false statement relating to a health care benefit program. U.S. District Court Judge Denise J. Casper scheduled sentencing for Sept. 9, 2020. Melo Guerrero was arrested in December 2019 and has been detained since that time.

Melo Guerrero used the name and identifiers of a U.S. citizen for at least 15 years, including to obtain a Massachusetts driver’s license and to apply for MassHealth benefits.  MassHealth then provided benefits valued at $18,505 to Melo Guerrero. In addition, on multiple occasions, Melo Guerrero was arrested and charged in Massachusetts with drug trafficking offenses under the name of this U.S. citizen.

The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprised of 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.

The charges of false representation of a Social Security number and false statement relating to a health care benefit program provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.  

United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Valuable assistance was provided by the U.S. Department of State, Diplomatic Security Service; U.S. Department of Labor, Office of Inspector General; Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Office; U.S. Department of Health & Human Services, Office of Inspector General; Massachusetts State Police; HSI Attaché in the Dominican Republic; U.S. Postal Inspection Service; and U.S. Citizenship and Immigration Services. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit is prosecuting the case.

Following a comprehensive investigation, the Justice Department announced today that it has found reasonable cause to believe the Narcotics Bureau of the Springfield, Massachusetts, Police Department (SPD) engages in a pattern or practice of using excessive force in violation of the Fourth Amendment to the United States Constitution.  The investigation was conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994 and was announced on April 13, 2018.

The Department of Justice found that the Narcotics Bureau’s pattern or practice of excessive force is directly attributable to systemic deficiencies in policies, which fail to require detailed and consistent use-of-force reporting, and accountability systems that do not provide meaningful reviews of uses of force.  

“I’ve said many times that being a police officer is the toughest job in America. We owe these public servants our respect and our support,” said Attorney General William P. Barr. “But with this high calling comes a tremendous responsibility to uphold the public trust.  The Department of Justice is committed to supporting our law enforcement while holding departments accountable that violate this sacred trust.  The department will work with the City of Springfield and the Police Department to ensure that the police officers and people of Springfield get the law enforcement agency they deserve, one that effectively and constitutionally stops violent crime and narcotics trafficking.”

“The Fourth Amendment to the United States Constitution protects all people in our nation from excessive force by law enforcement,” said Assistant Attorney General Eric Dreiband of the U.S. Department of Justice Civil Rights Division.  “The Department of Justice looks forward to working with the City of Springfield and its Police Department to protect this very important Constitutional right.”

“As demonstrated by recent events, it is crucial that our urban police departments keep the trust of their communities and ensure accountability for officer misconduct," said U.S. Attorney for Massachusetts Andrew Lelling.  "Our investigation of the Springfield Police Department over the last year revealed chronic issues with the use of force, poor record keeping on that subject, and repeated failures to impose discipline for officer misconduct.  That said, the department and the City of Springfield have fully cooperated with this investigation and have made clear their commitment to genuine reform.  We look forward to working with them to make Springfield a safer place.”

 In the course of its investigation, the Justice Department conducted an in-depth review of SPD documents, including over 100,000 pages of written policies and procedures, training materials, and internal reports, data, video footage, and investigative files.  Justice Department attorneys and investigators also conducted interviews with SPD officers, supervisors and command staff, and city officials, and met with community members and local advocates.  SPD has cooperated with the department’s investigation and has already begun to implement a number of remedial measures. 

This investigation was conducted jointly by the Special Litigation Section of the Civil Rights Division and the U.S. Attorney’s Office for the District of Massachusetts, with the assistance of law enforcement experts.

Attached are the Department of Justice’s Report of its Investigation of the Narcotics Bureau of the Springfield, Massachusetts Police Department, and a cover letter to Springfield government officials transmitting that Report.

The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement.  For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.

BOSTON – Following a comprehensive investigation, the Justice Department has found reasonable cause to believe the Narcotics Bureau of the Springfield, Mass. Police Department (SPD) engages in a pattern or practice of using excessive force in violation of the Fourth Amendment to the United States Constitution. The investigation was conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994 and was announced on April 13, 2018.

The Department of Justice found that the Narcotics Bureau’s pattern or practice of excessive force is directly attributable to systemic deficiencies in policies, which fail to require detailed and consistent use-of-force reporting, and accountability systems that do not provide meaningful reviews of uses of force. 

“As demonstrated by recent events, it is crucial that our urban police departments keep the trust of their communities and ensure accountability for officer misconduct,” said United State Attorney Andrew E. Lelling. “Our investigation of the Springfield Police Department over the last year revealed chronic issues with the use of force, poor record keeping on that subject, and repeated failures to impose discipline for officer misconduct. That said, the Police Department and the City of Springfield have fully cooperated with this investigation and have made clear their commitment to genuine reform. We look forward to working with them to make Springfield a safer place.”

“I’ve said many times that being a police officer is the toughest job in America. We owe these public servants our respect and our support,” said Attorney General William Barr. “But with this high calling comes a tremendous responsibility to uphold the public trust. The Department of Justice is committed to supporting our law enforcement while holding departments accountable that violate this sacred trust. The Department will work with the City of Springfield and the Police Department to ensure that the police officers and people of Springfield get the law enforcement agency they deserve, one that effectively and constitutionally stops violent crime and narcotics trafficking.”

In the course of its investigation, the Justice Department conducted an in-depth review of SPD documents, including over 100,000 pages of written policies and procedures, training materials, and internal reports, data, video footage, and investigative files. Justice Department attorneys and investigators also conducted interviews with SPD officers, supervisors and command staff, and city officials, and met with community members and local advocates. SPD has cooperated with the Department’s investigation and has already begun to implement a number of remedial measures.

This investigation was conducted jointly by the U.S. Attorney’s Office for the District of Massachusetts and the Special Litigation Section of the Civil Rights Division, with the assistance of law enforcement experts.

Attached are the Department of Justice’s Report of its investigation of the Narcotics Bureau of the Springfield Police Department and a cover letter to Springfield government officials transmitting that Report.

The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement.  For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.

BOSTON – A Framingham man, who was previously convicted of a domestic violence misdemeanor, was sentenced today in federal court in Boston in connection with illegally selling ammunition.

Julien King, 26, was sentenced by U.S. District Court Judge William G. Young to two years in prison and three years of supervised release. In March 2020, King pleaded guilty to one count of possession of ammunition after a domestic violence conviction.

On March 29, 2019, in broad daylight, King sold a .22 caliber bolt-action rifle and 45 pieces of .22 caliber ammunition to a confidential informant in exchange for $120 in Framingham. Just prior to the sale, King fired the rifle out a window of a residence.  The sale was captured by recording. Due to a 2017 conviction of assault and battery on a family or household member, King is prohibited from possessing a firearm or ammunition.   

United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Framingham Police Chief Steven Trask made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case. 

BOSTON – A Dominican national formerly residing in Lawrence was sentenced today in federal court in Boston for distributing fentanyl.

Rosario Lara, 37, was sentenced by U.S. District Court Judge William G. Young to four years in prison and two years of supervised release. In March 2020, Lara pleaded guilty to distributing cocaine and more than 400 grams of fentanyl. 

Lara sold more than a half-kilogram of fentanyl to a confidential informant in Lawrence on Feb. 21, 2019.

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 the Middlesex District Attorney’s Office, Massachusetts State Police and Lawrence Police Department. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, prosecuted the case.

An American citizen was arrested and charged yesterday in connection with exploiting teenage boys in Laos.

Acting Assistant Attorney General Brian C. Rabbitt for the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling for the District of Massachusetts and Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Division made the announcement.

Michael Sebastian, 52, was charged by criminal complaint with engaging in illicit sexual conduct in foreign places and sex trafficking of children. Sebastian was arrested yesterday in Lynn, Massachusetts, where he has been living with his mother.  Following an initial appearance in federal court in Boston today, Sebastian was detained pending a detention and probable cause hearing scheduled for July 13, 2020.

According to the charging documents, Sebastian has been living in Laos, where he teaches English to Laotian youth.  During at least the past two years, Sebastian provided housing to at least three boys, aged 13 through 18, to whom he taught English.  In lieu of paying rent to live with him, Sebastian allegedly allowed the boys to pay off their rent by performing chores.  According to allegations in the complaint, these chores included giving Sebastian massages – which, in turn, included masturbating Sebastian.

The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.

Trial Attorney Leslie Fisher with the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Anne Paruti for the District of Massachusetts are 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 CEOS, 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 year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

BOSTON – An American man was arrested and charged yesterday in connection with exploiting teenage boys in Laos.

Michael Sebastian, 52, was charged by criminal complaint with engaging in illicit sexual conduct in foreign places and sex trafficking of children. Sebastian was arrested yesterday in Lynn, where he has been living with his mother. Following an initial appearance in federal court in Boston today, Sebastian was detained pending a detention and probable cause hearing scheduled for July 13, 2020.

According to the charging documents, Sebastian has been living in Laos, where he teaches English to Laotian youth. During at least the past two years, Sebastian provided housing to at least three boys, aged 13-18, to whom he taught English. In lieu of paying rent to live with him, Sebastian allegedly allowed the boys to pay off their rent by performing chores. According to the complaint, these chores included giving Sebastian massages – which, in turn, included masturbating Sebastian.

The charge of engaging in illicit sexual conduct in foreign places provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $250,000. The charge of sex trafficking of children provides for a mandatory minimum sentence of 10 years and up to life in prison, five 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; Acting Assistant Attorney General for the Justice Department’s Criminal Division Brian C. Rabbitt; 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 Anne Paruti, Lelling’s Project Safe Childhood coordinator, and Leslie Fisher, a Trial Attorney in the Justice Department’s Child Exploitation and Obscenity Section, are 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.

BOSTON – A Southbridge man was arrested and charged today in connection with attempting to receive a kilogram of cocaine through the mail.

Revel Rivera, 42, was arrested yesterday afternoon and charged by criminal complaint with attempted possession with intent to distribute 500 grams or more of cocaine. Rivera will make an initial appearance before U.S. Magistrate Judge David H. Hennessy this afternoon.

According to the charging documents, law enforcement learned of a mail package suspected to contain illegal drugs destined for Rivera’s residence. After obtaining a warrant, federal agents opened the package and found approximately one kilogram of cocaine hidden inside. The agents removed the cocaine, resealed the package, and conducted a controlled delivery to Rivera’s residence on High Street in Southbridge. Federal agents arrested Rivera after he took possession of the sealed package and drove away from his residence. 

The charge of attempted possession with intent to distribute 500 grams or more of cocaine provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joseph W. Cronin, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Southbridge Police Chief Shane Woodson made the announcement today. Assistant U.S. Attorney Danial Bennett of Lelling’s Worcester Branch Office is prosecuting the case.

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

BOSTON – A seventh former employee of eBay, Inc. has been charged with participating in a cyberstalking campaign targeting a Natick, Mass. couple who published a newsletter that eBay executives viewed as critical of the company.

Philip Cooke, 55, of San Jose, Calif., a former police captain in Santa Clara, Calif., and a supervisor of security operations at eBay’s European and Asian offices, was charged by Information with conspiracy to commit cyberstalking and conspiracy to tamper with witnesses. Cooke will appear in federal court in Boston at a later date.

According to charging documents, Cooke conspired with six other former eBay employees: David Harville, 48, of New York City; James Baugh, 45, of San Jose, Calif.; Stephanie Popp, 32, of San Jose, Calif.; Stephanie Stockwell, 26, of Redwood City, Calif.; Veronica Zea, 26, of San Jose, Calif.; and Brian Gilbert, 51, of San Jose, Calif. Harville and Baugh were charged on June 15, 2020, with conspiracy to commit cyberstalking and conspiracy to tamper with witnesses. The charging documents identified Cooke as “Supervisor 1.” A previously filed Information charging Gilbert, Popp, Stockwell, and Zea with the same offenses was also unsealed on June 15, 2020. 

According to the charging documents, the victims of the cyberstalking campaign were a Natick couple who are the editor and publisher of an online newsletter that covers ecommerce companies, including eBay. Members of eBay’s executive leadership team followed the newsletter’s posts, often taking issue with its content and the anonymous comments underneath the editor’s stories. 

It is alleged that in August 2019, the defendants allegedly executed a three-part harassment campaign. Among other things, several of the defendants ordered anonymous and disturbing deliveries to the victims’ home, including a preserved fetal pig, a bloody pig Halloween mask, a funeral wreath, a book on surviving the loss of a spouse, and pornography – the last of these addressed to the newsletter’s publisher but sent to his neighbors’ homes.

As part of the second phase of the campaign, some of the defendants allegedly sent private Twitter messages and public tweets criticizing the newsletter’s content and threatening to visit the victims in Natick. The charging documents allege that Cooke, Baugh, Gilbert, and Popp planned these messages to become increasingly disturbing, culminating with “doxing” the victims (i.e., publishing their home address). It is alleged that the same group intended then to have Gilbert, a former Santa Clara police captain, approach the victims with an offer to help stop the harassment that the defendants were secretly causing, in an effort to promote good will towards eBay, generate more favorable coverage in the newsletter, and identify the individuals behind the anonymous comments.

The third phase of the campaign allegedly involved covertly surveilling the victims in their home and community. The victims spotted the surveillance, however, and notified the Natick police, who began to investigate.

Aware that the police were investigating, the defendants allegedly sought to interfere with the investigation by lying to the police about eBay’s involvement while pretending to offer the company’s assistance with the harassment, as well as by lying to eBay’s lawyers about their involvement. For example, it is alleged that Cooke and several of the other defendants discussed the possibility of presenting Natick Police with a false investigative lead to keep the police from discovering video evidence that could link some of the deliveries to eBay employees. As the police and eBay’s lawyers continued to investigate, the defendants allegedly deleted digital evidence that showed their involvement, further obstructing what had by then become a federal investigation.

The charges of conspiracy to commit cyberstalking and conspiracy to tamper with witnesses each carry a sentence of up to five years in prison, three years of supervised release, a fine of up to $250,000 and restitution. 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 Natick Chief of Police James G. Hicks made the announcement today. eBay provided valuable assistance and cooperation with the federal investigation. Assistant U.S. Attorneys Seth B. Kosto and David J. D’Addio of Lelling’s Securities, Financial and Cyber Fraud Unit are prosecuting the case. 

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

BOSTON – A Lynn man pleaded guilty today in connection with money laundering and visa fraud.

Fortune Aikorogie, a/k/a Imuetinyan Aikorogie, a/k/a Fortune Aikoriogie, a/k/a Imuetinyan Aikoriogie, 33, pleaded guilty to one count of making a false statement to a bank, five counts of money laundering and one count of visa and passport fraud. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Oct. 14, 2020. In March 2019, Aikorogie was charged by indictment.

On Sept. 28, 2016, Aikorogie used a counterfeit Zimbabwean passport and U.S. visa bearing his photograph, but with the fictitious name “Tinashi Chipo,” to open an account at a branch of TD Bank in Dracut. Aikorogie had obtained the counterfeit documents from a friend in Africa to whom he had texted a photo of himself. Between Oct. 5 and Dec. 15, 2016, two women in Texas whom Aikorogie did not know wired a total of $75,500 into the Chipo account. They did so at the request of fraudsters who romanced them online. One victim was a 71-year old widow with advanced Parkinson’s disease and the other was a 78-year old retiree. Aikorogie withdrew the money from the Chipo account in cash and delivered it to men he did not know at the direction of his friend in Africa. A bank investigator became suspicious of the account activity and called the phone number on the Chipo account signature card. Aikorogie answered, pretending to be Tinashi Chipo, and claimed that the wired money was for his uncle’s construction business. The investigator told “Chipo” that the bank was going to close his account and to visit a branch. Aikorogie went to the Lawrence branch, where he was met by local police, who confiscated the counterfeit passport and visa.

The charge of making a false statement to a bank provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000. The charge of visa/passport fraud provides for a sentence of up to 10 years in prison, three years of supervised release and a $250,000 fine. 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; William B. Gannon, Special Agent in Charge of the U.S. State Department’s Diplomatic Security Service, Boston Field Office; and Lawrence Police Chief Roy P. Vasque made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.

BOSTON – The former leader of the Boston-based Devon Street Kings Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering charges.

Wilson Peguero, a/k/a “King Dubb,” 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 Oct. 20, 2020. Wilson Peguero was arrested and charged in December 2019, at which time he was the leader of the Devon Street Kings, a Boston-based Chapter of the Latin Kings.

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

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

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 who reported to Peguero, who served as “Inca” or the leader of the Chapter. 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. As described in the court documents, Peguero produced various music videos touting his allegiance to the Latin Kings, distribution of controlled substances, and threats against rival gang members. During the investigation, various meetings were covertly recorded in which Peguero and members of the Devon Street Kings discussed the business of the racketeering enterprise. Internally, Peguero was present during meetings where members were beaten and violence against rival gangs was discussed and decided upon.

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. 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.

BOSTON – A Captain with the Salem, N.H. Police Department was arrested today and charged with tax fraud deriving from profits he earned from selling firearms. 

Michael Wagner, 48, of Pelham, N.H., was arrested and charged in an indictment unsealed today on one count of filing a false tax return. Wagner will make an initial appearance via videoconference at 2:15 p.m. in federal court in Boston. Wagner is a Captain with the Salem, N.H. Police Department.

The indictment alleges that in December 2012 and January 2013, Wagner purchased approximately 36 assault rifles from Sig Sauer Academy in Epping, N.H. and resold them in 2013 to earn a profit of more than $33,000 that Wagner purposely omitted from his 2013 tax return. Wagner allegedly used a 25 percent discount that Sig Sauer offered law enforcement officers, which increased his profit, and directed a subordinate police officer to make a purchase of an assault rifle for him after Sig Sauer stopped giving Wagner the law enforcement discount. The indictment further alleges that Wagner overstated his deductions in his 2013 tax return by falsely claiming more than $10,000 in reimbursed expenses for police equipment, ammunition and firearms.

The charging statute provides for a sentence of up to three years in prison, one year of supervised release and a fine of up to $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; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco and Firearms, Boston Field Division; Attorney General of New Hampshire Gordon MacDonald; 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 Neil J. Gallagher, Jr. 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.

BOSTON – A member of the New Bedford Chapter of the Almighty Latin King and Queen Nation (“Latin Kings”) was charged today will illegal firearm possession following an investigation into an armed robbery in New Bedford and a shooting in Boston.

Ramon Martinez, a/k/a “King Razor,” 26, was charged in a criminal complaint with one count of being a felon in possession of a firearm. Martinez, who is currently in custody in Bristol County, will make his initial appearance in federal court at a later date.

According to charging documents, on April 30, 2020, a victim reported to police that he had been robbed and punched in New Bedford by two men who were in a black Ford Fusion. The men put a knife to the victim’s back and stole his wallet and motorized scooter. The victim was allegedly targeted because he beeped his horn at a friend and the men in the Ford Fusion believed that the victim was honking at them. During the investigation, Martinez, a known member of the Latin Kings, was identified as one of the robbers and a warrant was issued for his arrest.

According to court documents, also on April 30, 2020, police responded to a report of shots-fired in the area of Callender Street in Boston where three .45 caliber casings were recovered. Investigators viewed Martinez’s SnapChat account and observed postings related to this shooting incident.

It is further alleged that, on May 7, 2020, police observed Martinez exit a residence on Crapo Street in New Bedford and walk to the rear of a black Ford Fusion. They observed Martinez open the trunk and quickly close it, and then get into a nearby vehicle. Officers stopped the vehicle, placed Martinez under arrest for the April 30th armed robbery and located a set of keys for the Ford Fusion. In the trunk of the Fusion, officers located a Glock Model 30S .45 caliber firearm with four rounds of ammunition. Preliminary testing linked the Glock Model 30S to the casings recovered on Callender Street in Boston.

Due to multiple prior convictions, Martinez is prohibited from possessing firearms. Martinez was also known to investigators to be a member of the New Bedford Chapter of the Latin Kings. 

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 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; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; New Bedford Police Chief Joseph C. Cordeiro; and Boston Police Commissioner William Gross made the announcement today. Valuable assistance was also provided by the Bristol County District Attorney’s Office. Assistant U.S. Attorney Philip A. Mallard of Lelling’s Organized Crime and Gang Unit is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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

BOSTON – A Worcester man was sentenced today for tax evasion and failing to file tax returns, thereby defrauding the IRS of $400,000.

Leonard Ngunjiri a/k/a Leonard Gitonga, 50, was sentenced by U.S. District Court Judge Timothy S. Hillman to six months in prison, one year of supervised release and ordered to pay restitution to the IRS in the amount of $406,407. In February 2020, Ngunjiri pleaded guilty to one count of tax evasion and five counts of failure to file a tax return.

Since approximately September 2012, Ngunjiri attempted to evade paying taxes for tax years 2006-2008 and 2011 by concealing his assets, directing his paychecks into bank accounts held in the names of others and using accounts in other individuals’ names for business and personal expenses. In addition, Ngunjiri did not file federal income tax returns from 2012 through 2017 despite making income in excess of the minimum filing requirements. In total, Ngunjiri defrauded the IRS of approximately $400,000.

United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office prosecuted the case.

BOSTON – A Rockland man was charged yesterday with being a felon in possession of a firearm and ammunition.

Lamont Boswell, 35, was charged by criminal complaint with one count of unlawfully possessing a firearm and ammunition while being a convicted felon. Boswell was detained pending a detention hearing set for July 14, 2020, following an initial appearance today via videoconference in federal court in Worcester.

According to the criminal complaint, in the early morning hours of March 5, 2020, police officers were dispatched to a Hanover convenience store. As officers approached the vehicle, they noticed the engine was revving and the occupant, later identified as Boswell, appeared to be sleeping, laying in the driver’s seat with a sweatshirt pulled up over his head. Plainly visible on Boswell’s lap was a black revolver handgun. Officers were able to secure the firearm without incident. The revolver, a .38 Special caliber Smith & Wesson, was loaded with five rounds of .38 caliber special ammunition in the cylinder. It is alleged that Boswell could not produce any documentation for the firearm or a license to carry, and was subsequently arrested.

It is further alleged that Boswell was also in possession of quantities of suspected heroin and cocaine packaged individually in 10 small, clear plastic bags at the time of his arrest.  According to court documents, Boswell revealed during booking that he is a member of the Latin Kings gang. Due to previous state drug convictions punishable by more than one year of incarceration, Boswell is prohibited from possessing a firearm and ammunition.

The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the United States 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; Plymouth County District Attorney Timothy Cruz; and Hanover Police Chief Walter Sweeney made the announcement today. Assistant U.S. Attorney Fred M. Wyshak, III of Lelling’s Major Crimes Unit is prosecuting the case.

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

Pharmaceutical company Novartis Pharmaceuticals Corporation (Novartis), based in East Hanover, New Jersey, has agreed to pay over $642 million in separate settlements resolving claims that it violated the False Claims Act (FCA).  The first settlement pertains to the company’s alleged illegal use of three foundations as conduits to pay the copayments of Medicare patients taking Novartis’s drugs Gilenya and Afinitor.  The second settlement resolves claims arising from the company’s alleged payments of kickbacks to doctors.

“Through this settlement and others, the government has demonstrated its commitment to ensuring that drug companies do not use kickbacks to influence the drugs prescribed by doctors or purchased by patients,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “We will continue to safeguard the Medicare program from kickbacks and their pernicious effects, including the undermining of important cost-control mechanisms instituted by Congress.”

The Anti-Kickback Statute prohibits anyone from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs.  This prohibition extends not only to improper payments to providers, but also to the improper payment of patients’ copay obligations.

In the first settlement, Novartis has agreed to pay $51.25 million to resolve allegations that it illegally paid the copay obligations for patients taking its drugs.  When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”).  Congress included copay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. 

Novartis sells Gilenya, which is approved for treatment of relapsing forms of multiple sclerosis (MS).   The government alleged that, in October 2012, Novartis learned from the contractor managing Novartis’s free drug program for Gilenya that over 300 patients who were receiving free drugs would be eligible for Medicare in 2013.  Novartis and the contractor transitioned those patients to Medicare Part D so that, in the future, Novartis would obtain revenue from Medicare when those patients filled prescriptions for Gilenya.  Knowing those patients could not afford the copay for Gilenya, Novartis developed a plan with a foundation so that Novartis could cover the copays for those patients.  Specifically, at the same time Novartis made a payment to the foundation, Novartis arranged for the foundation to open its MS fund at 6:00 pm on a Friday and for the contractor to have personnel working overtime to submit applications for those patients who had been receiving free Gilenya.  Novartis knew that this coordination would result in a disproportionate share of its funding going to Gilenya patients for 2013. 

Novartis also sells Afinitor, which is a second-line treatment for advanced renal cell carcinoma (RCC) and a treatment for progressive neuroendocrine tumors of pancreatic origin (PNET).  The government alleged that Novartis learned that, for the 2010 donation year, it would be the only donor to an RCC copay assistance fund operated by a charitable foundation.  The government alleged that Novartis told the foundation that it would be willing to donate to the fund only if the eligibility definition was narrowed in a way that ensured that a greater amount of the copay assistance would support patients taking Afinitor.  The government alleged that, as a result of narrowing the fund definition, the fund disproportionately assisted patients taking Afinitor compared to its overall usage rate among RCC drugs.

The government further alleged that, in 2012, Novartis asked another foundation to open a copay assistance fund to pay copays for PNET patients, which Novartis knew would be used only to pay the copays of Afinitor patients.

“According to the allegations in today’s settlement, Novartis coordinated with three co-pay foundations to funnel money through the foundations to patients taking Novartis’ own drugs,” said U.S. Attorney Andrew E. Lelling for the District of Massachusetts.  “As a result, the Novartis’ conduct was not ‘charitable,’ but rather functioned as a kickback scheme that undermined the structure of the Medicare program and illegally subsidized the high costs of Novartis’s drugs at the expense of American taxpayers.  At the same time, we recognize that Novartis’ current management has taken constructive steps to address the government’s concerns with the company’s prior relationships with co-pay foundations.”

In the second matter, Novartis will pay $591,442,008 to resolve FCA claims that it paid kickbacks to doctors to induce them to prescribe the Novartis drugs Lotrel, Valturna, Starlix, Tekturna, Tekturna HCT, Tekamlo, Diovan, Diovan HCT, Exforge, and Exforge HCT.  In addition, Novartis will forfeit $38.4 million under the Civil Asset Forfeiture Statute.  Novartis also made extensive factual admissions in the settlement and agreed to strict limitations on any future speaker programs, including reductions to the amount it may spend on such programs.

In a case pending in the Southern District of New York, the United States alleged that Novartis hosted tens of thousands of speaker programs and related events under the guise of providing educational content, when in fact the events served as nothing more than a means to provide bribes to doctors.  Novartis paid physicians honoraria, purportedly as compensation for delivering a lecture regarding a Novartis medication, but, as Novartis knew, many of these programs were nothing more than social events held at expensive restaurants, with little or no discussion about the Novartis drugs.  Indeed, some of the so-called speaker events never even took place; the speaker was simply paid a fee in order to induce the speaker to prescribe Novartis drugs.

“For more than a decade, Novartis spent hundreds of millions of dollars on so-called speaker programs, including speaking fees, exorbitant meals, and top-shelf alcohol that were nothing more than bribes to get doctors across the country to prescribe Novartis’s drugs,” said Acting U.S. Attorney Audrey Strauss for the Southern District of New York.  “Giving these cash payments and other lavish goodies interferes with the duty of doctors to choose the best treatment for their patients and increase drug costs for everyone.  This office will continue to be vigilant in cracking down on kickbacks, however they may be dressed up, throughout the pharmaceutical industry.”

The government’s complaint further alleged that Novartis sales representatives, on the instruction of their managers, selected high-volume prescribers to serve as the paid “speakers” at these events with the intent to induce them to write more — or keep writing many — Novartis prescriptions.  The sales representatives then pressured the speakers to increase their prescriptions of Novartis drugs, and often dropped doctors from the speaker program if they failed to do so.  Further, the government alleged that this widespread kickback scheme was the result of decisions made by top management at Novartis’s North American headquarters in New Jersey.   

This settlement resolves a lawsuit captioned United States ex rel. Bilotta v. Novartis Pharmaceuticals Corp., No. 11-Civ.-0071-PGG (S.D.N.Y.) initially filed under the whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery.  The FCA permits the United States to intervene in such a lawsuit, as it did in the whistleblower case filed against Novartis.  The amount to be recovered by the private whistleblower, Oswald Bilotta, has not yet been determined.  As part of the settlement, Novartis will also pay an additional $48,151,273 to resolve state Medicaid claims.

Contemporaneous with the settlement of the FCA claims in these matters, Novartis entered into a corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG).  The five-year CIA addresses the conduct at issue in both matters.  Among other things, the CIA requires Novartis to significantly reduce the number of paid speaker programs and the amounts spent on such programs.  Under the CIA, Novartis speaker programs may only occur under limited circumstances and in a virtual format.  In addition, the CIA requires Novartis to implement measures designed to promote independence from any patient assistance programs to which it contributes.  The CIA also requires multi-faceted monitoring of Novartis’s operations and obligates company executives and Board members to certify about compliance.

“OIG will continue to work closely with the Department of Justice to investigate and pursue kickbacks regardless of the form they take,” said Gregory E. Demske, Chief Counsel to the Inspector General, HHS-OIG.  “To address Novartis’s conduct and the widely-recognized compliance risks associated with paid speaker programs, the CIA requires Novartis to make fundamental changes to its speaker program practices.  Under the CIA, Novartis must significantly reduce the number of programs and the number of paid physicians, and can no longer pay for inherently-risky in-person programs.” 

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

The copay investigation was conducted by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Massachusetts, in conjunction with the Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation.  The Bilotta matter was litigated by the Southern District of New York, with assistance from the Civil Division’s Commercial Litigation Branch, the Federal Bureau of Investigation, the Department of Health and Human Services, Office of Inspector General, and the Department of Defense, Office of Inspector General.

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

BOSTON – Novartis Pharmaceuticals Corporation (Novartis) has agreed to pay $51.25 million to resolve allegations that it violated the False Claims Act by illegally paying the Medicare co-pays for its own drugs. 

When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or 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 includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.   

“According to the allegations in today’s settlement, Novartis coordinated with three co-pay foundations to funnel money through the foundations to patients taking Novartis’ own drugs,” said United States Attorney Andrew E. Lelling. “As a result, the Novartis’ conduct was not ‘charitable,’ but rather functioned as a kickback scheme that undermined the structure of the Medicare program and illegally subsidized the high costs of Novartis’ drugs at the expense of American taxpayers. At the same time, we recognize that Novartis’ current management has taken constructive steps to address the government’s concerns with the company’s prior relationships with co-pay foundations.”

“Through this settlement and others, the government has demonstrated its commitment to ensuring that drug companies do not use kickbacks to influence the drugs prescribed by doctors or purchased by patients,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “We will continue to safeguard the Medicare program from kickbacks and their pernicious effects, including the undermining of important cost-control mechanisms instituted by Congress.”

“Improper coordination between pharmaceutical manufacturers and foundations operating patient assistance programs harms Medicare by increasing costs and distorting the prescription drug market,” said Gregory E. Demske, Chief Counsel to the Inspector General.  “This CIA promotes independence in those relationships and accountability on the part of manufacturer Boards of Directors and senior management.”

“Novartis tried to game the system to boost its bottom line at the expense of sick patients facing economic hardship, and the hard-working taxpayers who fund the Medicare program,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s settlement is a warning to all pharmaceutical companies that if they pay kickbacks, like Novartis did in this case, our health care fraud task force will do everything it can to make sure they are held accountable.”

The government’s allegations in the settlement announced today are as follows:

At certain intervals during the period from Jan. 1, 2010, through Dec. 31, 2014, Novartis used The Assistance Fund (TAF) as a conduit to pay kickbacks to Medicare patients taking Gilenya, a Novartis drug for multiple sclerosis (MS), and used the National Organization for Rare Disorders (NORD) and Chronic Disease Fund (CDF) as conduits to pay kickbacks to Medicare patients taking Afinitor, a Novartis drug for renal cell carcinoma (RCC) and progressive neuroendocrine tumors of pancreatic origin (PNET).

With respect to TAF, in October 2012, Novartis learned from Express Scripts, which then was managing Novartis’ free drug program for Gilenya, that Novartis was providing free Gilenya to 364 patients who would become eligible for Medicare the following year. Novartis and Express Scripts transitioned these patients to Medicare Part D so that, in the future, Novartis would obtain revenue from Medicare when the patients filled their prescriptions for Gilenya. Knowing that these patients could not afford co-pays for Gilenya, Novartis developed a plan for it to cover their co-pays through TAF, which operated a fund that, ostensibly, offered to cover co-pays for any MS patient who met TAF’s financial eligibility criteria, regardless of which MS drug the patient was taking. Specifically, just after it made a payment to TAF, Novartis arranged for TAF to open its MS fund at 6:00 p.m. on Friday, Dec. 14, 2012, and for Express Scripts to have personnel working overtime that night and the following morning submitting applications to TAF on behalf of patients who previously had been receiving free Gilenya from Novartis. Novartis knew that the timing of the opening of the fund and the readiness of Express Scripts to submit applications on behalf of Gilenya patients at that time would result in Gilenya patients receiving a disproportionate share of the grants from the fund while it was open. After the fund closed on Saturday, Dec. 15, 2012, Novartis confirmed that, during the brief period the fund had been open, TAF used Novartis’ money to provide 374 Gilenya patients with grants to cover their Medicare co-pays in 2013. Novartis subsequently made further payments to TAF, and TAF provided many of these same Gilenya patients with grants to cover their Medicare co-pays in 2014.

With respect to NORD, Novartis learned that, as of the 2010 donation year, no other manufacturer of RCC medications would be contributing to a pre-existing NORD RCC co-pay assistance fund. Novartis knew that Afinitor was approved for use as a second-line RCC treatment only, and only when certain first-line products had failed. Novartis also knew, therefore, that any co-pays NORD covered for initial RCC treatments would not be used to cover co-pays for Afinitor. Novartis informed NORD that it would be willing to donate to its RCC fund if NORD narrowed the fund’s eligibility definition so as not to cover co-pays for first line treatments. Novartis wanted the definition narrowed to ensure that a greater amount of its donations would subsidize its product, as opposed to others. NORD then created a new fund entitled “Advanced Renal Cell Carcinoma Second Line Co-Payment Assistance Program.” This fund excluded any patients seeking co-pay coverage for first-line RCC treatments and disproportionately funded patients taking Afinitor compared to its overall usage rate among all RCC drugs. Novartis financed this NORD fund through 2014.

With respect to CDF, in 2012, after Afinitor was approved to treat PNET, Novartis asked CDF to open a fund to cover Afinitor co-pays for PNET patients. At that time, Novartis knew that the FDA had approved a competing drug to treat PNET. Nonetheless, with Novartis’ knowledge, CDF launched a fund labeled “PNET” that covered co-pays only for Afinitor and did not cover co-pays for the other PNET drug. Novartis continued with this understanding as the sole financial backer of this supposed “PNET” fund through 2014. 

Novartis entered into a five-year corporate integrity agreement (CIA) with OIG as part of this settlement and a simultaneous settlement being announced today by the United States Attorney’s Office for the Southern District of New York. The CIA requires Novartis to implement measures, controls, and monitoring designed to promote independence from any patient assistance programs that it finances. In addition, Novartis agreed to implement risk assessment programs and to obtain compliance-related certifications from company executives and Board members.

To date, the Department of Justice has collected over $900 million from ten pharmaceutical companies (United Therapeutics, Pfizer, Actelion, Jazz, Lundbeck, Alexion, Astellas, Amgen, Sanofi, and Novartis) that allegedly used third-party foundations as kickback vehicles. The Department also has reached settlements with four foundations (Patient Access Network Foundation, Chronic Disease Fund, The Assistance Fund, and Patient Services, Inc.) that allegedly conspired or coordinated with these pharmaceutical companies.

U.S. Attorney Lelling, Assistant Attorney General Hunt, HHS Chief Counsel to the Inspector General Demske, and FBI Boston SAC Bonavolonta made the announcement today. The U.S. Postal Inspection Service also assisted with the investigation. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Abraham George, of Lelling’s Affirmative Civil Enforcement Unit, and by Trial Attorneys Sarah Arni and Augustine Ripa of the Justice Department’s Civil Division.

BOSTON – A Dominican national who previously resided in Lawrence pleaded guilty today in connection with drug trafficking activities involving fentanyl.

Robinson Guzman, 38, pleaded guilty to three counts of distribution of and possession with intent to distribute fentanyl, one count of distribution of and possession with intent to distribute more than 40 grams of fentanyl, and one count of possession with intent to distribute more than 40 grams of fentanyl. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Sept. 23, 2020. Guzman has been in custody since he was arrested and charged by criminal complaint on March 19, 2019.

Between November 2018 and March 2019, prior to his arrest, Guzman allegedly engaged in 10 separate drug sales of fentanyl powder and pills to an undercover law enforcement agent.

The charges of distribution of and possession with intent to distribute fentanyl each provide 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 charges involving more than 40 grams of fentanyl carry a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of 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 Methuen, Lawrence and Melrose Police Departments. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.

BOSTON – A Bourne man was arrested today and charged with receipt and possession of child pornography.

Bryan C. Mileikis, 33, was charged in a criminal complaint with one count of receipt of child pornography and one count of possession of child pornography. Mileikis will make an initial appearance via videoconference in federal court in Boston this afternoon.

According to the charging documents, on June 11, 2019, law enforcement executed a search warrant at Mileikis’ home and seized an iPhone belonging to Mileikis. A forensic examination of the phone revealed images and videos depicting child pornography. 

The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and 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. 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; Michael Shea, Acting Special Agent in Charge of the Homeland Security Investigations in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; and Bourne Chief of Police Dennis Woodside made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.

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

BOSTON – The former second in command of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) pleaded guilty today to racketeering and drug conspiracy charges.

Jorge Rodriguez, a/k/a “King G,” 32, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy, and conspiracy to distribute cocaine and cocaine base. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Oct. 16, 2020. Rodriguez was arrested and charged in December 2019, at which time he was the second in command of Massachusetts for the Latin Kings, and had held leadership positions in the New Bedford Chapter.

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 addition to his statewide leadership of the Latin Kings in Massachusetts, Rodriguez also held a leadership position in the New Bedford Chapter. In New Bedford, Rodriguez ran a vast cocaine base distribution network that used multi-unit apartment buildings known as “trap houses” to distribute the narcotics. Members of the Latin Kings dealt drugs in the trap houses, obtaining their supply of cocaine base from Rodriguez. As detailed in court filings in the case, evidence developed during the course of the investigation included multiple recordings of Rodriguez cooking cocaine base, directing violence against rival gang members, meting out discipline, and handling firearms used to protect the Latin Kings’ drug distribution network.

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

Pursuant to the terms of the plea agreement, Rodriguez faces 15 – 25 years in prison and three years of supervised release. 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. Depending on the drug quantity, the drug trafficking conspiracy and distribution charges provide for a sentence of up to 20 years, 40 years, or life; a minimum of three, four or five years of supervised release; and fines of $1 million, $5 million and $10 million. The charge of felon in possession of a firearm and ammunition provides for a sentence of up to 10 years, 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. 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.

BOSTON – A Dominican national was charged yesterday with unlawfully reentering the United States after being deported.

Pedro Wilson Hernandez-Castillo, 49, who resided in Worcester, was charged in a criminal complaint with one count of unlawful reentry of a deported alien.

According to the charging documents, Hernandez-Castillo unlawfully re-entered the United States after being deported in August 2018. On June 16, 2020, Hernandez-Castillo was stopped by law enforcement while driving. When asked for identification, Hernandez-Castillo provided the driver’s license and Social Security card of another individual. After determining that Hernandez-Castillo provided false information, the state trooper arrested Hernandez-Castillo. Following his arrest, it was determined that Hernandez-Castillo’s fingerprints biometrically matched the fingerprints in his alien file. 

According to charging documents, Hernandez-Castillo was previously removed from the United States in August 2011, July 2000 and January 1999. 

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

United States Attorney Andrew E. Lelling and Todd Lyons, Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston, made the announcement. The Massachusetts State Police provided valuable assistance.  Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester Branch Office is prosecuting the case.

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

BOSTON – A Dominican national pleaded guilty today in federal court in Boston to distributing fentanyl.

Yokasta Aybar-Soto, 27, pleaded guilty to one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl and one count of conspiracy to distribute and to possess with intent to distribute 40 grams of more of fentanyl. U.S. District Court Judge William G. Young scheduled sentencing for Sept. 3, 2020. Aybar-Soto was initially charged by criminal complaint and has been in custody since Sept. 12, 2019.

With a companion, Aybar-Soto sold over 40 grams of fentanyl to an undercover officer in Lawrence on Sept. 12, 2019.

The charging statutes provide for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of 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 Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Massachusetts Attorney General Maura Healey; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney James R. Drabick of Lelling’s Criminal Division is prosecuting the case.

BOSTON – A Colombian national, previously deported following a conviction for cocaine trafficking, pleaded guilty and was sentenced today in federal court in Boston.

Fabian Herrera Vasquez, 36, who previously resided in East Boston, pleaded guilty to one count of unlawful reentry of a deported alien and was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to two years in prison and three years of supervised release. Herrera Vasquez was arrested and charged by criminal complaint in October 2019 and has been held in federal custody since that time.

Herrera Vasquez was deported to Colombia on June 19, 2009, after a 2007 conviction for six counts of cocaine trafficking in Middlesex County. At the time of his deportation, Herrera Vasquez’s fingerprints and photograph were affixed to his warrant of removal.

In 2014, Herrera Vasquez was arrested by police for cocaine trafficking, at which time immigration authorities lodged a detainer. For reasons unknown, Herrera Vasquez was released from state custody, defaulted at his next court date and a warrant was issued for his arrest. On Sept. 19, 2019, Herrera Vasquez was arrested in Revere for various motor vehicle violations. At that time he presented a Pennsylvania driver’s license with his photograph, but in the identity of a Puerto Rican born United States citizen.

Herrera Vasquez’s fingerprints were difficult to obtain because of noticeable alterations. Ultimately, Herrera Vasquez was identified by, among other things, a fingerprint match of the print on his warrant of removal and the prints taken from his September 2019 arrest.  

United States Attorney Andrew E. Lelling and Todd Lyons, Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement (ICE) Boston made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Criminal Division prosecuted the case.

BOSTON – A Worcester man was indicted yesterday in connection with brandishing a loaded sawed-off shotgun in an apartment while arguing with teenaged residents in December 2019.

Steven Dillon, 36, was indicted yesterday on one count of being a felon in possession of a firearm and ammunition and one count of unlawful possession of an unregistered firearm. Dillon was previously charged by criminal complaint in June 2020.

According to charging documents, on Dec. 25, 2019, Dillon brandished a loaded sawed-off shotgun in an apartment while arguing with teenaged residents. Police found the shotgun and ammunition in a bedroom used by Dillon, who was previously convicted of a felony punishable by more than one year in prison and therefore prohibited from possessing a firearm.

The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Kristen Noto of Lelling’s Worcester Branch Office is prosecuting the case.

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

BOSTON – A Virginia man was sentenced yesterday in federal court in Boston for his role in operating a long-running interstate prostitution ring. 

Yoon Kim, 39, of Haymarket, Va., was sentenced by U.S. District Court Judge William G. Young to 20 months in prison and two years of supervised release. In November 2018, Kim pleaded guilty to one count of conspiracy to persuade, induce, entice, or coerce individuals to travel in interstate commerce to engage in prostitution, and one count of conspiracy to engage in money laundering.

On March 15, 2018, Kim was charged and arrested with co-defendants Taehee Kim, a/k/a “Hyunsook Kim” (Yoon Kim’s wife), of Haymarket, Va.; Susan Bashir, a/k/a “Susan Redmon,” a/k/a “Susan Redmond,” of Stone Mountain, Ga.; Jineok Kim, of Watertown, Mass; and Kyung Song, of Lexington, Mass.

From at least 2013 until March 2018, Kim and his co-defendants operated an interstate prostitution network with multiple brothels in high-end apartments in Cambridge, Mass.; Atlanta, Ga.; and eastern Virginia. They advertised appointments with Asian women primarily on three websites. The women advertised on the websites were moved from city to city within the network, at Taehee Kim’s direction, working as prostitutes for the organization. Yoon Kim and co-conspirators collected a portion of the cash earnings from the women working at the brothels and funneled the money into accounts controlled by Yoon Kim and his wife. Co-conspirators also used U.S. Postal money orders and the mail to transport and launder proceeds from the prostitution network. Yoon Kim rented several of the brothel locations, including multiple apartments in and around Cambridge, managed the websites advertising the prostitution network, and handled other aspects of the business.

Taehee Kim, Jineok Kim, Susan Bashir, and Kyong Song previously pleaded guilty. Taehee Kim is pending sentencing; Jineok Kim was sentenced in April 2019 to three months in prison; Susan Bashir was sentenced in May 2019 to 45 days in prison; and Kyung Song was sentenced in March 2019 to one year of home confinement.

United States Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Joseph W. Cronin, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Cambridge Police Commissioner Branville G. Bard Jr. made the announcement. Assistant U.S. Attorney David J. D’Addio of Lelling’s Civil Rights Enforcement Team prosecuted the case. 

BOSTON – A Virginia man, currently on federal supervised release for a previous conviction, was indicted yesterday in federal court in Worcester with making a false statement on a loan application and aggravated identity theft.

Rashad Al-Terek Walker, 39, of Hampton, Va., was indicted on one count of making a false statement on a loan application and one count of aggravated identity theft. Walker was charged by criminal complaint in April 2020.

According to court documents, 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 is alleged to have committed the crimes in Worcester.      

The charge of false information on a loan application provides for a sentence of up to 30 years in prison, three years of supervised release and a fine of $1 million. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed and one year of supervised release. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of Federal Bureau of Investigation, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.

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

BOSTON – Two alleged members of the Franklin Hill street gang in Boston were arrested on federal drug charges. 

Trevel Brewster, 25, and Timmy Hunt, 29, of Boston, were each charged in an indictment with two counts of distribution and possession with intent to distribute cocaine base and one count of distribution and possession with intent to distribute over 28 grams of cocaine base. Brewster was arrested yesterday and Hunt, who is on pretrial release on a state court matter, was arrested on Wednesday, June 24, 2020. Following arraignments via videoconference in federal court in Boston, both men were detained pending a detention hearing set for July 2, 2020.

According to the indictment, Brewster and Hunt distributed and possessed with intent to distribute cocaine base in Boston on Feb. 26, 2020 and March 2, 2020, and conspired to distribute and possess with intent to distribute over 28 grams of cocaine base.

The charge of distributing or possessing with intent to distribute cocaine base carries a sentence of up to 20 years in prison, three years to a lifetime of supervised release and a fine of up to $1 million. The charge of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base provides for a minimum mandatory sentence of five years and up to 40 years in prison, four years and up to a lifetime of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner William Gross; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; and Brockton Police Chief Emanuel Gomes made the announcement today.

This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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