District of Massachusetts

BOSTON – An inmate at the Federal Medical Center (FMC) Devens was indicted yesterday in connection with attempting to make threats against federal agents and to cause an explosion at a federal courthouse.

Nathan Danforth, 34, was indicted on one count of making threats to murder federal law enforcement officers and one count of threats to damage or destroy a building using fire or explosive. Danforth will appear in federal court in Worcester at a later date.

According to the charging documents, in July 2019, Danforth allegedly attempted to mail a letter from FMC Devens to a federal court in Florida, threatening to kill the agents who previously investigated him and to cause an explosion at the courthouse. In February 2020, Danforth allegedly sent an email to the Department of Justice Office of Inspector General threatening that the President would die and federal buildings would be “blown up.”    

Each charge 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. FMC Devens Special Investigation Section provided valuable assistance to the investigation. Assistant U.S. Attorney Kristen Noto of Lelling’s Worcester Branch Office 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 Malden man was arrested today and charged with using stolen identities to make purchases, rent cars and open credit accounts. 

Wagner Sozi, 32, was arrested and charged by criminal complaint with wire fraud and will appear in federal court in Boston via videoconference this afternoon.

According to the criminal complaint, Sozi used the names and identities of various individuals to open credit accounts, rent cars and make large purchases. It is alleged 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. He processed these accounts via an employee of the office retailer who was complicit in the scheme. Sozi also allegedly used stolen identities to: purchase a Rolex for more than $15,000; rent a Ford Mustang convertible from Logan Airport, which he then failed to return; and rent a Dodge Charger from Logan Airport, which he then failed to return. 

Sozi also allegedly 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 the Apple Store.

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. 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 Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement today. 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 criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A former U.S. Postal Service (USPS) employee was re-sentenced yesterday in federal court in Worcester for sexually exploiting a child, using USPS computers to access child pornography and possessing child pornography.

Stephen Mantha, 66, of Spencer, was re-sentenced by U.S. District Court Judge Timothy S. Hillman to 16 years and four months in prison and five years of supervised release. In February 2018, Mantha pleaded guilty to one count of producing child pornography, one count of accessing child pornography and one count of possession of child pornography. An identical sentence was imposed in August 2018, but the sentence was vacated on appeal due to an error in calculating the federal sentencing guidelines. 

In the summer of 2015, federal investigators were alerted to suspicious internet searches being conducted on a computer at a Shrewsbury postal facility where Mantha worked as an electronic technician. In the course of the investigation, agents installed a computer activity recorder, which tracked all computer usage on that computer, and, a video camera, which recorded the identity of the person using the computer. Agents were then able to observe and record as Mantha searched for, and viewed, child pornography on USPS computers. 

On Sept. 21, 2016, a search warrant was executed at Mantha’s residence where numerous thumb drives containing child pornography were recovered. During the review of the materials seized from Mantha’s home, a video was discovered, which had been recorded in approximately 2000 or 2001, depicting Mantha sexually abusing an approximately seven-year-old boy. That same month, agents were able to locate and interview the boy (now an adult), who confirmed the sexual abuse. 

In 2000 and 2001, at the date of the offense, the charge of sexual exploitation of a child provided for a mandatory minimum of 10 years and up to 20 years in prison, three years of supervised release and a fine of $250,000. Although existing penalties for producing child pornography are substantially higher, the Constitution prohibits the government from subjecting individuals to more stringent penalties adopted after their crimes had been committed. The charges of accessing child pornography and possession of child pornography provide for a sentence of up to 20 years in prison, 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 upon the U.S. Sentencing Guidelines and other statutory factors.  

United States Attorney Andrew E. Lelling; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of the Inspector General, Northeast Area Office; 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; Spencer Police Chief David Darrin; and Shrewsbury Police Chief James Hester Jr. made the announcement today. Assistant U.S. Attorney Mark Grady of Lelling’s Worcester Branch Office prosecuted the case.

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

BOSTON – A Wellesley plastic surgeon has agreed to pay $25,000 to resolve allegations that he provided controlled substances to family members outside the usual course of his professional practice and failed to maintain records and accurate inventories of controlled substances.

Arthur Shektman, M.D., a plastic surgeon practicing in Wellesley, has agreed to pay $25,000 to resolve allegations that he violated the Controlled Substances Act by dispensing controlled substances outside the usual course of his professional practice and by failing to maintain complete and accurate inventories of controlled substances.

“The proper handling of prescriptions is a critical part of patient safety and crucial to preventing drug diversion,” said United States Attorney Andrew E. Lelling. “This office will continue to ensure that DEA registrants meet federal recordkeeping requirements, whether they are solo physician practices or large pharmacy chains.”

“DEA registrants are responsible for handling controlled substances responsibly and ensuring that complete and accurate records are being properly kept and accounted for in compliance with the Controlled Substance Act,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration (DEA), Boston Field Division. “We are committed to working with our law enforcement and regulatory partners to ensure that these rules and regulations are followed.”

According to the allegations in the settlement, on two occasions, Dr. Shektman provided controlled substances to two family members outside the usual course of his professional practice. Dr. Shektman also allegedly failed to maintain records pertaining to Schedules III-V controlled substances and failed to maintain complete and accurate inventories of controlled substances.

Dr. Shektman cooperated with the federal investigation and has agreed to pay $25,000 to resolve the government’s allegations. He has also agreed to enter into a three-year Memorandum of Agreement with the DEA to come into compliance with the recordkeeping requirements of the Controlled Substances Act.

U.S. Attorney Lelling and DEA SAC Boyle made the announcement today. Assistant U.S. Attorney Lindsey Ross of Lelling’s Civil Division handled the case.

BOSTON – The U.S. Attorney’s Office announced today that the government has filed a civil False Claims Act complaint against drug manufacturer Regeneron Pharmaceuticals, Inc. (Regeneron), of Tarrytown, N.Y. The complaint alleges that Regeneron paid tens of millions of dollars in kickbacks for its macular degeneration drug Eylea, using a foundation as a conduit to cover co-pays for Eylea.

When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B, the beneficiary may be required to make a partial payment, which can take the form of a deductible or co-insurance amount (collectively, co-pays). Congress included co-pay requirements in the Medicare program, 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, including coverage of co-pays – to induce Medicare patients to purchase the companies’ drugs.

“According to the allegations in today’s complaint, Regeneron funneled tens of millions of dollars in kickbacks through a third-party foundation to ensure that few Medicare patients paid a co-pay on Eylea and that physicians who prescribed and purchased the drug did not have to collect Medicare co-pays from their patients,” said United States Attorney Andrew E. Lelling. “Regeneron allegedly paid these substantial sums only after confirming that the foundation needed the money to cover co-pays only for Eylea, and not for competing drugs, and that the company’s payments would generate a handsome return on investment, or ‘ROI,’ in the form of Medicare payments for Eylea. Furthermore, senior company executives allegedly took extensive measures to cover up the scheme.”

“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the Department of Health and Human Service’s Boston Regional Office. “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program.”

“As alleged, a pharmaceutical company has once again been caught manipulating the system and profiting handsomely at the expense of our taxpayer funded Medicare program,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI will aggressively pursue justice against this company and all companies like it until those in the pharmaceutical industry learn they are not above the law.”

The complaint alleges that, in 2012, soon after the launch of Eylea, Regeneron considered how much to pay a foundation that covered Medicare co-pays for patients taking macular degeneration drugs. At the time, Regeneron and Genentech, which sold Lucentis, were the leading manufacturers of macular degeneration drugs. Regeneron’s senior management was willing to pay the foundation only enough to cover Medicare co-pays for Eylea patients. As Regeneron’s former Chief Financial Officer put it, Lucentis patients were “Genentech’s problem.” Moreover, Regeneron senior management wanted assurances that the company’s payments to the foundation would generate a handsome ROI.

To satisfy senior management, the complaint alleges, Regeneron employees repeatedly contacted the foundation to learn the amount of money the foundation would need to cover the co-pays of Eylea patients only. They then determined the Medicare revenue that Regeneron would derive from those patients and calculated that the company would earn a return of over 400% on its payments to the foundation. Over the course of 2013 and through the beginning of 2014, Regeneron paid the foundation exactly what it said it needed to cover Medicare expenses for Eylea patients only.

The government alleges that Regeneron’s conduct violated the anti-kickback statute which prohibits such “indirect” kickbacks to subsidize the price of a Medicare drug. The government further alleges that Regeneron’s senior management knew the conduct was illegal. In 2013, company auditors twice inquired about the information Regeneron was getting from the foundation about Eylea. Both times, Regeneron management, including the company’s commercial chief, lied and asserted that the company was not getting Eylea-specific data from the foundation. In fact, as the executives knew, the company was getting frequent Eylea-specific reports from the foundation and then using that data to correlate the company’s payments to the foundation with the foundation’s spending on co-pays for Eylea. As a result, the government alleges, the physicians who prescribed and purchased Eylea rarely, if ever, had to consider the drug’s substantial cost, because they knew that the foundation would cover their patients’ Medicare co-pays.

U.S. Attorney Lelling, HHS-OIG SAC Coyne, and FBI SAC Bonavolonta made the announcement today. The U.S. Postal Inspection Service also assisted with the investigation. The matter is being handled by Assistant U.S. Attorneys Gregg Shapiro and Evan Panich of Lelling’s Affirmative Civil Enforcement Unit.

BOSTON – The owner of a Chelmsford paving company pleaded guilty last week to a payroll tax scheme resulting in a $300,000 tax loss.   

Robert W. Joyce, 59, of Carlisle, pleaded guilty on Friday, June 19, 2020 to one count of willful failure to collect and pay over taxes. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Oct. 20, 2020.

For tax years 2012 through at least 2014, Joyce paid a portion of the wages to employees of his two companies, Allied Paving and Allied Equipment, “under the table.” He did so by paying them from his own personal bank account, rather than through the business accounts. In doing so, Joyce did not collect, account for, or pay the IRS the income withholding and FICA taxes that he, as the employer, was required to. Joyce also caused Allied Paving and Allied Equipment to file false returns with the IRS which underreported the actual wages he paid his employees, as well as the employment taxes due to the IRS. In total, Joyce caused a loss to the IRS of at least $331,060.

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

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 today. Assistant U.S. Attorneys Sandra S. Bower and Sara Miron Bloom of Lelling’s Criminal Division are prosecuting the case.

BOSTON – Twenty-four members and associates of Boston-based street gangs have been charged in federal court in Boston in connection with trafficking cocaine in a Brighton housing development and separately operating a large-scale drug trafficking organization.

“In case anyone needed it, this investigation is yet another reminder that our law enforcement officers are committed to protecting the residents of our communities from harm,” said United States Attorney Andrew E. Lelling. “Despite a pandemic and constant, nationwide criticism of police officers, these agents and officers risked their own safety to take two dozen alleged gang members and drug traffickers off the street, seizing over two dozen firearms, narcotics and cash along the way. Without the help of the Massachusetts State Police, the Boston Police Department, and several other local police departments, today’s arrests would not have been possible. Feel free to thank them for what they do.”

“Drug trafficking, along with the violence that all too often accompanies it, is a serious threat to the safety and security of our communities,” said Acting DEA Administrator Timothy J. Shea. “Drug dealers and street gangs value their own profits over human life, and are responsible for fueling drug addiction and much of the violent crime across America. DEA is committed to working with our state and local law enforcement partners to rid our neighborhoods of these violent criminals and make our streets safer for all.”

“This collaborative operation was intended to target the individuals driving the distribution of illegal drugs and taking advantage of a vulnerable community,” said Boston Police Commissioner William G. Gross. “This operation will greatly improve quality of life for our neighborhoods and protect the health and safety of those affected by drug addiction.”

“During these times of significant societal upheaval and uncertainty, it is critical that we work together to ensure the safety and health of our neighborhoods,” said Suffolk County District Attorney Rachael Rollins. “This 18-month-long investigation is an example of collaboration -- the United States Attorney’s Office, the Drug Enforcement Agency, the Boston Police Department, and my office working to produce today’s arrests and recovery of a cache of weapons and proceeds from this drug conspiracy. It is a clear message that we have not and will not rest until all our communities are safe and free from this criminal and dangerous conduct.”

According to charging documents, since November 2018, federal and local authorities conducted an investigation, dubbed “Operation Snowfall,” of drug trafficking activities by Boston-based street gang members and associates. The first part of the investigation targeted the Commonwealth Development in Brighton, Mass., formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple Fidelis Way apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.

The second part of the investigation targeted large scale drug suppliers and their associates, which included Boston street gang members. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown. One defendant, Eric Davis, even traveled to California in April 2020 to try to obtain kilograms of cocaine.

Over the course of this investigation, investigators purchased and seized approximately 1.7 kilograms of cocaine and cocaine base, approximately 27 pounds of marijuana, approximately $200,000 in cash, over 200 rounds of ammunition and 11 firearms.

In addition, 17 search warrants were executed today in Brighton, Dorchester, Roxbury, Dorchester, Hyde Park, Mattapan, Randolph, Holbrook and Braintree. At present, approximately 30 firearms, a half kilo of cocaine and $350,000 has been seized.

The charge of conspiracy to distribute and possession with intent to distribute cocaine and cocaine base provides for a sentence of up to 20 years in prison, at least three years of supervised release up to life 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.

U.S. Attorney Lelling; DEA Acting Administrator Shea; Boston Police Commissioner Gross; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Braintree Police Chief Mark W. Dubois; Cambridge Police Commissioner Branville G. Bard, Jr.; Canton Police Chief Kenneth Berkowitz; Randolph Police Chief William Pace; Weymouth Police Chief Richard Fuller; Suffolk County District Attorney Rachael Rollins; Norfolk County District Attorney Michael Morrissey; Bristol County District Attorney Thomas Quinn III; Suffolk County Sheriff Steven W. Tompkins; Plymouth County Sheriff Joseph D. McDonald Jr.; and Norfolk County Sheriff Jerome P. McDermott made the announcement today. Assistant U.S. Attorneys Kaitlin O’Donnell and Timothy Moran of Lelling’s Organized Crime and Gang Unit are prosecuting the case.  

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

The following defendants were charged with conspiracy to distribute and possess with intent to distribute cocaine and cocaine base:

1. Kenji Drayton, 40, of Boston, Mass.;
2. Winston McGhee, 36, of Dorchester, Mass;
3. Hassan Monroe, 37, of Quincy, Mass;
4. Derek Hart, 30, of Everett, Mass;
5. Eric Davis, 36, of Mattapan, Mass;
6. Maurice Coates, 42, of Randolph, Mass;
7. Derrick Hobson, 44, of Boston, Mass;
8. Andre Echevarria, 39, of Holbrook, Mass;
9. Antone Jeremiah, 28, of Taunton, Mass;
10. Michael Stokes, 36, of Boston, Mass;
11. Michael Toussaint, 39, of Hyde Park, Mass;
12. Kareem Chaplin, 42, of Canton, Mass;
13. Tatiana Morrissey, 35, of Boston, Mass;
14. Russell Hankerson, 28, of Boston, Mass;
15. Jarmina Kallon, 25, of Randolph, Mass;
16. Renardo Williams, 43, of South Boston, Mass;
17. Tarik Muhammad, 25, of Boston, Mass;
18. Matthew Drayton, 43, of Boston, Mass;
19. Arthur Hodges, 34, of Lawrence, Mass;
20. Jean Aman, 34, of Boston, Mass;
21. Nelsin Hernandez, 29, of Brighton, Mass;
22. Terrence Daye, 31, of Brookline, Mass;
23. Keith Daye, 44, of Brockton, Mass; and
24. Phillip Williams, 36, of Brockton, Mass.

BOSTON – A Lawrence man who has been living under a false identity was indicted today by a federal grand jury in Boston on charges arising from his use of the name and Social Security number of a U.S. citizen.

An individual referred to as “John Doe” was indicted on charges of misrepresenting a Social Security number, making a false statement concerning a health care benefit program, and aggravated identity theft. He is presently in state custody on unrelated charges and will be appear by videoconference at a later date in the U.S. District Court in Boston for an initial appearance and arraignment.

The charges of misrepresenting a Social Security number and making a false statement concerning a health care benefit program each provide for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutively to any other sentence imposed. 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; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Major Crimes Unit is prosecuting the case.

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

BOSTON – An East Longmeadow man was indicted today by a federal grand jury in connection with an attempted arson at a Longmeadow senior health care facility in April 2020.

John Michael Rathbun, 36, was indicted on one count of attempting to transport or receive explosive devices in interstate or foreign commerce with the knowledge or intent that the device will be used to kill, injure, or intimidate any individual or unlawfully to damage or destroy any building, vehicle and one count of attempting to maliciously damage or destroy, by means of fire or an explosive, any building, vehicle, or other real or personal property used in interstate or foreign commerce. On April 15, 2020, Rathbun was arrested and charged by criminal complaint; he has been detained in federal custody since April 17, 2020.

According to the indictment, on the morning of April 2, 2020, police discovered a homemade incendiary device next to the driveway entrance – and within feet of a widely used pedestrian walkway – to Jewish Geriatric Services Lifecare, Inc. (“JGS”), a nonprofit organization in Longmeadow, Mass. whose mission is to provide health, education, and social services guided by Jewish traditions and values. The device consisted of a 5-gallon Scepter fuel canister, approximately one-third filled with gasoline, and a partially charred Christian religious pamphlet placed in the nozzle of the canister.

Anyone with questions or information about this case can contact the U.S. Attorney’s Office at 888-221-6023.  

The charge of attempting to transport or receive explosive devices in interstate or foreign commerce with the knowledge or intent that the device will be used to kill, injure, or intimidate any individual or unlawfully to damage or destroy any building, vehicle, or other real or personal property 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 attempting to maliciously damage or destroy, by means of fire or an explosive, any building, vehicle, or other real or personal property used in interstate or foreign commerce provides for a mandatory minimum sentence of five years and a maximum of 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed 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 Feld Division made the announcement today. The investigation was led by the FBI’s Western Massachusetts Joint Terrorism Task Force with valuable assistance also provided by the Longmeadow and East Longmeadow Police Departments and the Massachusetts State Police. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office and Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division are 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 – Columbia Gas of Massachusetts (CMA) was sentenced today in connection with the gas explosions on Sept. 13, 2018, in Lawrence, Andover and North Andover that killed one individual, injured 22, and damaged homes and businesses.

Bay State Gas Company, d/b/a Columbia Gas of Massachusetts, was ordered by U.S. District Court Chief Judge F. Dennis Saylor IV to pay a criminal fine of $53,030,116 which represents twice the amount of profits that CMA earned between 2015 and 2018 from a pipeline infrastructure program called the Gas System Enhancement Plan (GSEP). In addition to a fine, the Court also sentenced CMA to a three-year period of probation during which CMA’s operations will be subject to a monitor to ensure CMA’s compliance with federal and state safety regulations. The three year period of probation will continue until CMA is sold to a qualified buyer.

In February 2020, the company agreed to plead guilty to violating a minimum safety standard of the Natural Gas Pipeline Safety Act relating to the failure to implement procedures to prevent the over-pressurization of its low-pressure gas distribution system in South Lawrence during a pipe replacement project known as the South Union Project.

“We expect utility companies operating in our communities to do so safely and responsibly,” said United States Attorney Andrew E. Lelling. “Instead Columbia Gas acted with reckless disregard for safety by cutting corners and relying on lax protocols. The result was catastrophic – stealing one life, harming dozens and impacting the home and livelihoods of hundreds more. Today’s sentence serves as little comfort to the victims, but is another step towards terminating Columbia Gas’s business in Massachusetts.”

“Today’s sentencing of Columbia Gas makes clear that those entrusted with the public’s safety have a solemn obligation to make it their highest priority,” said Douglas Shoemaker, Regional Special Agent in Charge, Department of Transportation Office of Inspector General.  “Pipelines are a critical part of our Nation’s infrastructure, and working with our Federal, state and local law enforcement and prosecutorial colleagues, we will continue to protect the safety and integrity of our pipeline transportation system from violations of regulation and law.”

“With today’s sentence, Columbia Gas of Massachusetts has finally been held criminally and financially responsible for their sheer greed and reckless disregard for public safety. That said, we realize that the excruciating pain, suffering, and heartbreaking loss of life the citizens of Merrimack Valley endured is beyond reparation,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “It is the FBI’s hope that the departure of Columbia Gas from Massachusetts will bring the residents of these cities and towns some much-needed peace of mind.”

The U.S. Attorney’s Office has also entered into a Deferred Prosecution Agreement (DPA) with CMA’s parent company, NiSource, Inc. based in Indiana. As part of the DPA, NiSource has agreed to undertake their best reasonable best efforts to sell CMA after which NiSource and CMA would stop all gas pipeline operations in Massachusetts. In exchange for the U.S. Attorney’s Office’s agreement to defer prosecution of NiSource, NiSource has also agreed to forfeit any profit it may earn from the sale of CMA and implement each of the safety recommendations from the National Transportation Safety Board (NTSB). 

During the afternoon of Sept. 13, 2018, the over-pressurization of a low pressure gas distribution system in South Lawrence caused multiple fires and explosions in the communities of Lawrence, Andover and North Andover. As a result, one individual in Lawrence was killed and another severely disabled, 22 people were injured and approximately 131 residential homes and commercial buildings were damaged.

CMA recklessly disregarded a known safety risk related to regulator control lines – sections of pipe connected to regulator stations that helped monitor and control downstream gas pressure. By at least 2015, according to an internal company notice, CMA knew that the failure to properly account for control lines in construction projects could lead to a “catastrophic event,” including fires and explosions. Aging cast iron pipes were being replaced, but the failure to remove or relocate control line pipes that were later abandoned would automatically cause regulator stations to continually increase pressure to the point of dangerous over-pressurization.

The DPA with NiSource acknowledges the fact that NiSource has previously made substantial voluntary restitution payments to the victims of the September 2018 incident, and has agreed to seek to resolve all pending civil claims. Most of the $53 million fine will be directed to the Justice Department’s Crime Victims Fund, which is a major funding source for victim services throughout the United States. 

For more information regarding the case, please visit:  https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/united-states-v-bay-state-gas-company-dba-columbia-gas-massachusetts

U.S. Attorney Lelling, DOT-OIG SAC Shoemaker and FBI Boston SAC Bonavolonta made the announcement today. Critical assistance was provided by the Massachusetts State Police and Lawrence Fire Department. Assistant U.S. Attorneys Neil J. Gallagher, Jr. and Evan Gotlob of Lelling’s Public Corruption and Special Prosecutions Unit prosecuted the case.

BOSTON – A Winchester man was arrested today and charged 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 charged in a criminal complaint with wire fraud, and will appear in federal court in Boston this afternoon.

According to the complaint, 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 complaint further alleges that Buoi ultimately received over $2 million in PPP funds. The government has seized approximately $1.98 million from Sosuda’s business bank accounts.

“The defendant tried to defraud an emergency program designed to help businesses, and their employees, survive the most difficult economic crisis since the Great Depression,” said United States Attorney Andrew E. Lelling. “This behavior is reprehensible, and my office is committed to rooting out and prosecuting this kind of fraud wherever we find it.”

“It’s outrageous anyone would try to steal from a program that was set up to be a lifeline to businesses struggling to stay afloat during the pandemic, but we believe that’s exactly what Elijah Buoi did. He allegedly tried to steal $13.5 million for his own use by lying on at least four different loan applications,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “This case should serve as a warning to others plotting similar scams—we are acting and investigating in real time to stop anyone using this crisis as a means to rip off the federal government at the expense of hard-working taxpayers.”

“The actions of this defendant are criminally reprehensible,” said Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation. “Defrauding a government program designed to provide financial assistance to small business owners during the Coronavirus pandemic is tantamount to taking money directly out of the pockets of those who need it most.”

“We are fully committed to holding accountable any wrongdoers whose fraudulent actions impact the Federal Reserve Board’s ability to assist small businesses under the Paycheck Protection Program Liquidity Facility,” said Inspector General Mark Bialek of the Board of Governors of the Federal Reserve System and the Consumer Protection Bureau, Office of Inspector General.

“We are proud to work with our law enforcement partners to investigate and prosecute the defendant for his egregious conduct,” said Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation, Officer of Inspector General. “We will continue to work hard to ensure these individuals are held accountable for using the COVID-19 pandemic as an opportunity to defraud the nation’s financial institutions and government relief programs.”

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. 

U.S. Attorney Lelling; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; FBI Boston SAC Bonavolonta; IRS-CI SAC O’Connell; FRB-CFPB OIG Inspector General Bialek; and FDIC OIG Inspector General Lerner made the announcement today. The case is being prosecuted by 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. The Justice Department acknowledges and thanks the SBA OIG for their support and assistance.  

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

BOSTON – A South Yarmouth man pleaded guilty today to fentanyl possession.

Roosevelt Wilkins, 33, pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl and one count of possession with intent to distribute fentanyl and cocaine. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Oct. 14, 2020.

In October 2019, Wilkins was arrested and charged by indictment with possession with intent to distribute 40 grams or more of fentanyl. At the time of his arrest, Wilkins was found in possession of additional fentanyl and crack cocaine, and he was charged in a superseding indictment with possession with intent to distribute those drugs as well. He has been in custody since his arrest.

On April 1, 2019, Wilkins fled a traffic stop in Brockton on foot, and was seen tossing a plastic bag under a parked car. Police recovered the bag, which contained 16 smaller bags of various sizes, containing over 70 grams of fentanyl. Law enforcement obtained a search warrant for the defendant’s cell phones and discovered text messages related to drug distribution, including messages indicating that Wilkins was on his way to a meeting to sell drugs to another individual when police stopped his car.

On Oct. 18, 2019, when law enforcement arrested Wilkins on the federal warrant relating to the April 1 incident, Wilkins was found to be concealing over 30 grams of fentanyl and an additional quantity of cocaine inside plastic packaging inside his shoe.

The charge of possession with intent to distribute 40 grams or more of fentanyl carries 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. The charge of possession with intent to distribute fentanyl and cocaine carries a sentence of up to 20 years in prison, three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

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 Colonel Christopher Mason, Superintendent of the Massachusetts State Police 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.

A Massachusetts man was arrested today and charged with allegedly filing fraudulent loan applications seeking more than $13 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling of the District of Massachusetts, Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office, Special Agent in Charge Kristina O’Connell of the IRS-Criminal Investigation (IRS-CI), Inspector General Mark Bialek of the Board of Governors of the Federal Reserve System and the Consumer Protection Bureau, Office of Inspector General (FRB-CFPB OIG), and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC OIG) made the announcement.

Elijah Majak Buoi, 38, of Winchester, Massachusetts, was charged in a criminal complaint filed in the District of Massachusetts with wire fraud, and will appear in federal court in Boston this afternoon. 

The complaint alleges that 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 complaint further alleges that Buoi ultimately received over $2 million in PPP funds.  The government has seized approximately $1.98 million from Sosuda’s business bank accounts.

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 entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses. 

A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mackenzie Queenin and Carol Head for the District of Massachusetts are prosecuting the case.  The Justice Department acknowledges and thanks the FBI, IRS-CI, FRB-CFOB OIG, and the FDIC OIG for their efforts in investigating this matter.  The Justice Department would also like to thank the SBA OIG for their support and assistance. 

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (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 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 – A Dominican national pleaded guilty today in federal court in Boston to fraudulent use of a Social Security number.

Richard Zapata Suarez, 32, formerly of Lawrence, pleaded guilty to one count of false representation of a Social Security number. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Aug. 10, 2020.

On May 17, 2016, Zapata Suarez used the Social Security number of a U.S. citizen to submit a renewal application for a Massachusetts driver’s license under the victim’s name. In order to obtain the license, Zapata Suarez fraudulently provided various documents to the Massachusetts Registry of Motor Vehicles, including a Social Security card and birth certificate bearing the victim’s name.

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 charge of falsely representing the Social Security number of another provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General made the announcement today. Valuable assistance was provided by the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Office; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, Boston; the U.S. Marshals Service; the Massachusetts State Police; and the Massachusetts Office of Inspector General. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit is prosecuting the case.

BOSTON – A Dominican national living in Lawrence pleaded guilty on Wednesday, June 17, 2020 in federal court in Boston to trafficking crack and cocaine.

Encebio Esperitusanto, 34, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base (crack cocaine), one count of distribution of 28 grams or more of cocaine base, and one count of distribution of cocaine. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Aug. 26, 2020.  Esperitusanto has been in federal custody since he was arrested on March 13, 2019.

In November 2018, in Lawrence, Esperitusanto sold crack cocaine to a cooperating source on two occasions. In February 2019, Esperitusanto again arranged for two additional sales of crack and cocaine to the same cooperating source.

The charges of conspiracy to distribute and distribution of 28 grams or more of cocaine base 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. The charge of distribution of cocaine carries 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. 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, Boston Field Division made the announcement. Assistance was also provided by the U.S. Postal Inspection Service and Immigration and Customs Enforcement. Assistant U.S. Attorneys Katherine Ferguson and Stephen Hassink of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.

BOSTON – A Colombian national was sentenced last week in federal court in Boston for trafficking cocaine on board maritime vessels.

Alex Mendoza Vasquez, 38, was sentenced on Tuesday, June 16, 2020 by U.S. District Court Judge William G. Young to 60 months in prison and ordered to forfeit $300,000. In May 2019, Mendoza Vasquez pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine on board a vessel subject to the jurisdiction of the United States and one count of possession with intent to distribute and distribution of five kilograms or more of cocaine on board a vessel subject to the jurisdiction of the United States. Mendoza Vasquez, a Colombian national, was extradited from Colombia on March 29, 2019 to face charges.

Beginning at least as early as 2013, Mendoza Vasquez and others were involved in the maritime shipment of cocaine that was sourced in Colombia and shipped via Venezuela to Spain, Puerto Rico, and other locations. The transactions followed a typical pattern: the cocaine was sourced in the area of Catatumbo, Colombia, transported to the port city of Puerto La Cruz, Venezuela, and then ferried to Isla Margarita, off the coast of Venezuela. Thereafter, based upon an agreed-upon date, time, sea coordinates, and a code word, small lanchas carrying the cocaine met a fishing vessel that was offshore. The small lanchas provided the code word, and then transferred the drugs to the fishing vessel for further transport to the final destination in Europe or the Caribbean.

Based on BlackBerry PIN-to-PIN communications, consensually-recorded telephone calls, consensually-recorded meetings, communications intercepted during judicially-authorized Colombian wiretaps, the seizure of 1,688 kilograms of cocaine, e-mail messages, and photographs, investigators determined that Mendoza Vasquez was an active participant in the organization’s drug trafficking activity and specifically was involved in arranging shipments of cocaine to the Dominican Republic and Puerto Rico.

In particular, on Jan. 23, 2015, Mendoza Vasquez met with co-conspirators at a residence in Cucuta, Colombia, to plan for 600 kilograms of cocaine to be shipped to Puerto Rico. Following this meeting, Mendoza Vasquez and others arranged for a co-conspirator, who was a drug transporter, to receive the cocaine at a warehouse that he maintained on Isla Margarita in Venezuela. The transporter organized the kilograms of cocaine in 30-kilogram bundles so that the shipment included a total of 20 bales of cocaine.

At the direction of the owners of the cocaine, including Mendoza Vasquez, the transporter had the bales loaded on two small boats, one carrying 14 bales and one carrying six bales. On Aug. 15, 2015, the two small boats departed Isla Margarita at approximately 9:00 p.m.  The two small boats were to deliver a total of 30 bales of cocaine to a fishing vessel, which would transport the cocaine to meet a go-fast boat at pre-arranged coordinates at sea.  Eventually, the boat carrying 14 bales reached the fishing vessel; the second boat eventually returned to Isla Margarita with six bales of cocaine based on concerns regarding the presence of law enforcement. According to recorded communications, the fishing vessel received 14 bales of cocaine and transported them to the coordinates to meet a go-fast boat.

On Aug. 19, 2015, Puerto Rican-based federal agents observed three men navigating a Yamaha power boat with the lights off in the Farjardo coast area of Puerto Rico. Officers instructed the vessel, which had no registration, to stop. The Yamaha power boat did not comply and law enforcement disabled the vessel. Federal investigators searched the nearby area and recovered 13 bales containing nearly 400 kilograms of cocaine and located large amounts of rope and a knife on the shoreline. 

Later the same day, in a BlackBerry chat with a co-conspirator, Mendoza confirmed his involvement in the load and reported to the co-conspirators that authorities had arrested three individuals, that four sacks of cocaine were left on the shore, and that their associates had hidden some of the cocaine bales. 

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

United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. Valuable assistance was provided by the Colombian National Police, the Spanish Guardia Civil, and the Portuguese Air Force. Assistant U.S. Attorney Linda Ricci, Chief of Lelling’s Narcotics and Money Laundering Unit, prosecuted the case.

BOSTON – A Chelsea man pleaded guilty and was sentenced on Friday, June 19, 2020, for the September 2019 robbery of a branch of TD Bank in Chelsea.

Edward Robert Rezendes, 66, pleaded guilty to one count of bank robbery. After accepting Rezendes’s guilty plea, U.S. District Court Judge Nathaniel M. Gorton sentenced Rezendes to time served (approximately 10 months in prison) and three years of supervised release. Rezendes, who was on probation for an unrelated bank robbery at the time the offense, had been indicted by a federal grand jury in November 2019.

On Sept. 10, 2019, Rezendes entered the TD Bank branch in Chelsea and wrote a demand note on the back of a deposit slip. He then presented the note to a bank teller, who removed approximately $3,670 in cash from her drawer, placed the money in a clear plastic bag, and handed the currency to Rezendes, who exited the bank and boarded an MBTA bus. Rezendes was located and apprehended shortly thereafter, and found in possession of the plastic bag containing the stolen currency, a GPS tracking device which had been embedded in the stolen currency, and the demand note, which had also been handed back to the defendant.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Chelsea Police Chief Brian Kyes made the announcement made the announcement. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit prosecuted the case.

BOSTON – The owner of a tax preparation business in Brockton was indicted last week for preparing false tax returns for others as well as filing a false tax return for himself. 

Jose Miguel Spinola, 51, was indicted on 13 counts of preparing false tax returns and one count of filing a false tax return. Spinola was arraigned in federal court in Boston on Friday, June 19, 2020.

As alleged in the indictment, on numerous occasions between 2014 and 2017, Spinola prepared and filed income tax returns for clients that contained false, inflated and incorrect information on his clients’ IRS Form 1040, U.S. Individual Income Tax Returns and attached schedules. Spinola allegedly added false, inflated and ineligible expenses on his clients’ Schedules A for medical and dental expenses and unreimbursed employee business expenses, including claimed meals and entertainment, business miles and work apparel. By inflating Schedule A deductions, Spinola allegedly decreased his clients’ taxable income and effectively increased the clients’ tax refunds. Spinola informed his clients of the total tax refund they would receive from the IRS without telling the clients about the false, inflated, or ineligible expenses Spinola deducted from his clients’ income tax returns. 

As part of the investigation, an undercover agent had Spinola prepare and file tax returns. The indictment alleges that Spinola fraudulently deducted false expenses on the undercover agent’s tax return including medical and dental expenses, charitable donations and unreimbursed business expenses – none of which were reported to Spinola by the agent.

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

United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial and Cyber Fraud 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 Springfield man was indicted today by a federal grand jury on child pornography offenses.

Ross Lopata, 32, was indicted today on four counts of receipt of child pornography and one count of possession of child pornography. Lopata was previously charged by criminal complaint on June 12, 2020.

The indictment alleges that between 2018 and June 11, 2020, Lopata received and possessed child pornography.

United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Unit is prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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

BOSTON – Three men were sentenced today in federal court in Boston for conspiracy to defraud the United States and mail fraud in connection with a scheme to obtain government contracts.

Frank Apicella, 63, of Groveland, Mass.; Michael Sforza, 59, of Alpharetta, Ga.; and James Apicella, 37, of Kingston, N.H., were sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to two years of probation, two years of supervised release and ordered to pay forfeiture of $300,000 each. In addition, Frank Apicella and Michael Sforza were also ordered to each pay a $300,000 fine. The defendants pleaded guilty in February 2020 to one count of conspiracy to defraud the United States and one count of mail fraud.

Beginning in 2011 the defendants used Tactical Office Solutions (TOS), a company run by James Apicella, as a front to bid on government contract work that was set aside for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Historically Underutilized Business Zone (HUBZone) companies. Although the contracts were bid on and awarded to TOS through SDVOSB and HUBZone set-aside programs, TOS never performed the work. Rather, the work was actually mostly performed by a company called FENS, which was owned and operated by Frank Apicella and Michael Sforza, and which was not eligible to compete for contracts through the set-aside programs. 

United States Attorney Andrew E. Lelling; Christopher F. Algieri, Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division, Northeast Field Office; Luis Hernandez, Special Agent in Charge of the General Services Administration Office of Inspector General, New England Regional Office; and Michael Conner, Resident Agent in Charge of the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, made the announcement.  The U.S. Treasury Inspector General for Tax Administration provided assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities, Financial & Cyber Fraud Unit and Annapurna Balakrishna of Lelling’s Civil Division prosecuted the case. 

BOSTON – A Dominican national who previously resided illegally in Methuen was sentenced yesterday in federal court in Boston for trafficking cocaine.

Cesar Rodriguez-Sanquentin, 27, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 37 months in prison and four years of supervised release. On Feb. 12, 2020, Rodriguez-Sanquentin pleaded guilty to one count of conspiracy to distribute 500 grams or more of cocaine and possession with intent to distribute 500 grams or more of cocaine.

In 2018, federal and state law enforcement began investigating a Brockton drug crew allegedly headed by Djuna Goncalves, a violent Brockton-area drug dealer. During the investigation, agents identified different Boston-based drug trafficking organizations that allegedly supplied Goncalves and others with heroin, fentanyl, cocaine, crack cocaine, and marijuana.

On Dec. 17, 2018, federal agents intercepted calls in which Rodriguez-Sanquentin promised to deliver a kilogram of cocaine to a customer. After Rodriguez-Sanquentin met with the customer, federal agents stopped and searched Rodriguez-Sanquentin’s car. Agents recovered a Kellogg’s Corn Flakes box that contained $33,611 in cash. On May 13, 2019, agents intercepted calls in which Rodriguez-Sanquentin agreed to supply cocaine to a Boston drug crew that had supplied Djuna Goncalves. Agents stopped Rodriguez-Sanquentin on the way to meet with the customer and recovered one kilogram of cocaine wrapped in a Christmas-themed gift bag from the engine compartment of Rodriguez-Sanquentin’s car.

United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Emanuel Gomes; John Gibbons, United States Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy Cruz made the announcement. Assistant U.S. Attorneys Christopher Pohl and Alathea Porter of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.

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

BOSTON – Twenty members and associates of NOB, a Boston-based street gang, have been charged in federal court in Boston for various crimes, including racketeering (“RICO”) conspiracy, violent crimes in aid of racketeering, drug trafficking, crossing state lines for the purpose of prostitution (the Mann Act), firearms charges and bank fraud. 

Two other associates were previously charged with drug trafficking and firearms related charges. In addition, nine individuals were charged with conspiring to distribute controlled substances, including fentanyl, in a drug conspiracy linked to NOB.

“Dismantling violent gangs is a top priority of the Justice Department -- operations like these have a direct, beneficial effect on the neighborhoods in which these gangs sell drugs and shoot each other,” said United States Attorney Andrew E. Lelling.  “Today's arrests are also a reminder that well-funded, professional police departments are not optional, but crucial, for protecting the safety of our communities.”

“Today’s arrests should serve as a warning that we will not tolerate gang related violence, and those who cause it,” said Boston Police Commissioner William Gross. “Members of this criminal enterprise wrongly believed they were above the law, but they clearly underestimated us.”

“This investigation is an example of ATF’s dedication to working with our local, state and federal partners in identifying, targeting and investigating violent criminals who are involved in selling firearms and narcotics.  Criminals who prey upon innocent citizens and lessen the quality of life in our neighborhoods,” said ATF Special Agent in Charge Kelly Brady. “Our neighborhoods deserve to flourish without fear or intimidation inflicted by violent gangs. We will continue to work with our law enforcement partners to reduce the violent crime that has done so much damage to so many of our Boston neighborhoods.”

“Today we saw that organized crime is no match for law enforcement. As alleged, many of the individuals arrested today have engaged in a ruthless and senseless string of attacks and murders, terrorizing the communities in which they operated all across the state. Some were involved in violent crimes as far away as Maine, Connecticut, and Rhode Island,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “As a result of our combined efforts, the threat posed by this criminal organization has been neutralized, and the members and associates of this vicious gang will now have to answer for their horrible crimes.”

"For more than a year, my Office has partnered with members of the Boston Police Department, Federal Law Enforcement, the Suffolk County Sheriff, and other agencies to investigate and hold accountable some of the most dangerous members of our Community.  Today was the culmination of that effort. Acts of violence will not be tolerated in our neighborhoods and I remain committed to working together to keep Boston and Suffolk County safe. Our neighbors deserve nothing less," said Suffolk County District Attorney Rachael Rollins.

According to charging documents, since the summer of 2019, federal and local authorities have been investigating NOB, which is an abbreviation for Norton/Olney/Barry – streets in Dorchester. NOB is associated with the longstanding Wendover street gang. It is alleged that, through the racketeering conspiracy, members and associates of NOB were involved in a range of criminal activity including murders, attempted murders, armed robberies, drug trafficking, sex trafficking and illegal firearms crimes. While the gang is based in Boston, their criminal activity spanned across other  communities, including Randolph, New Bedford, Stoughton, Brockton, East Bridgewater, Taunton, and communities on Cape Cod, as well as Rhode Island, Maine and Connecticut.

Over the last approximately four years, it is alleged that NOB members/associates have committed multiple murders and shootings – many of which targeted rival gang members, particularly members/associates of the Cameron Street gang, another Boston-based street gang. For example, it is alleged that, in February 2020, two NOB-related murders were committed in Boston and Brockton. The twin brother of the Brockton victim had been shot and killed in July 2019 in Boston. In a recorded jail call during this period of violence, a NOB member remarked that the gang’s rivals were “droppin’ like flies.” During the same time period, gang members/associates were involved in the theft of multiple motor vehicles (some of which were used for violent crimes), and one of the thefts resulted in the kidnapping a five-year-old female victim from Boston, who was later abandoned in Randolph.

In addition to violence, NOB members/associates have allegedly trafficked drugs throughout Massachusetts, including marijuana, fentanyl, cocaine, cocaine base (crack), heroin and various types of prescription pills, including opioids. The fentanyl distributed by the gang involved not only fentanyl in powder form, but also fentanyl pills that had the appearance of oxycodone pills. On July 20, 2019, police officers conducted a vehicle stop of two of the defendants. Officers recovered a plastic bag with the fentanyl pills and a loaded 9mm pistol with an obliterated serial number from their vehicle. Ballistics analysis subsequently linked the pistol to a prior shooting in New Bedford. 

NOB members/associates were also allegedly involved in sex trafficking, including transporting women across state lines for the purposes of engaging in prostitution.  For example, an NOB member allegedly transported two sisters from Massachusetts – one of whom was a minor at the time – to Connecticut in April 2017 for the purpose of having them engage in prostitution.

The charges of RICO conspiracy and committing violent crimes in aid of racketeering each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charges of conspiracy to distribute controlled substances and possession with intent to distribute controlled substances each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $1 million. The charge of possession of a firearm in furtherance of a drug trafficking crime provides a mandatory consecutive sentence of five years in prison, up to life of supervised release and a fine of $250,000. The charge of crossing state lines for the purposes of prostitution provides 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; Boston Police Commissioner William G. Gross; Kelley D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; New Bedford Police Chief Joseph C. Cordeiro; Quincy Police Chief Paul Keenan; Randolph Police Chief William Pace; Brockton Police Chief Emanuel C. Gomes; Stoughton Police Chief Donna M. McNamara; Suffolk County District Attorney Rachael Rollins; Suffolk County Sheriff Steven W. Tompkins; Plymouth County District Attorney Timothy J. Cruz; Plymouth County Sheriff Joseph D. McDonald Jr.; Bristol County District Attorney Thomas M. Quinn III; and Norfolk County Sheriff Jerome P. McDermott and made the announcement today. Assistant U.S. Attorneys Michael Crowley and Corey Steinberg of Lelling’s Organized Crime and Gang Unit are prosecuting the case. 

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

APPENDIX A

1. Michael Brandao, a/k/a “G Fredo,” and “Frizzblock Fredo,” 19, is charged with RICO conspiracy; conspiracy to distribute controlled substances; and possession with intent to distribute controlled substances.
2. Kelvin Barros, a/k/a “Kal” or “7981 Kal,” 24, is charged with RICO conspiracy; conspiracy to distribute controlled substances; and possession with intent to distribute controlled substances.
3. Ricky Pina, a/k/a “Blake,” 23, is charged with RICO conspiracy; conspiracy to distribute controlled substances; and possession with intent to distribute controlled substances.
4. David Rodriguez, a/k/a “D,” 34, is charged with RICO conspiracy.
5. Wilson Goncalves-Mendes, a/k/a “Dub,” 24, is charged with RICO conspiracy.
6. Joshua Teixeira, a/k/a “Trouble,” 25, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
7. Joseph Gomes, a/k/a “Joey” or “J-Money,” 24, is charged with RICO conspiracy.
8. Alidio Barbosa, a/k/a “Ace Boogie” or “Ace,” 23, is charged with possession of a firearm with an obliterated serial number.
9. Samael Mathieu, a/k/a “Hamma” or “Hamma Thang,” 23, is charged with RICO conspiracy and conspiracy to distribute controlled substances.
10. Moses Cabral, a/k/a “Moe Money,” 26, is charged with RICO conspiracy; conspiracy to distribute controlled substances; possession with intent to distribute controlled substances; and crossing state lines for the purposes of prostitution.
11. Delven Carvalho-Centeio, a/k/a “Delly,” 22, is charged with RICO conspiracy; conspiracy to distribute controlled substances; possession with intent to distribute controlled substances; and crossing state lines for the purposes of prostitution.
12. Darius Bass, a/k/a “Tre” or “Trigga Tre,” 26, is charged with violent crimes in aid of racketeering.
13. Damian Cortez, 31, is charged with crossing state lines for the purposes of prostitution and possession with intent to distribute controlled substances.
14. Anton Lopes, a/k/a “Ton Ton,” 25, is charged with possession with intent to distribute controlled substances; possession of a firearm with an obliterated serial number; and possession of a firearm in furtherance of a drug trafficking crime.
15. Brian Cardoso, 27, is charged with being a felon in possession of a firearm.
16. Theresa Alves, 26, is charged with conspiracy to distribute and to possess with intent to distribute controlled substances.
17. Hailey Stringfield, 19, is charged with conspiracy to distribute and to possess with intent to distribute controlled substances.
18. Jawwad Freeman, 22, is charged with possession with intent to distribute controlled substances; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm with an obliterated serial number.
19. Gullit Gomes, 28, is charged with being a felon in possession of a firearm and ammunition.
20. Devon Hamilton, 20, is charged with bank fraud.
21. Adriano Cortez, a/k/a “A,” 26, is charged with conspiracy to distribute and to possess with intent to distribute controlled substances.
22. Fabrice Teixeira, 32, is charged with conspiracy to distribute and to possess with intent to distribute controlled substances.
23. Armando Gomes, a/k/a “G,” 31, is charged with conspiracy to distribute and to possess with intent to distribute controlled substances.
24. Patrick Dunn, 28, is charged with conspiracy to distribute and to possess with intent to distribute controlled substances.
25. Daniel Barbosa, a/k/a “D,” 25, is charged with conspiracy to distribute and to possess with intent to distribute controlled substances.
26. Carlos Monteiro, 43, is charged with conspiracy to distribute and to possess with intent to distribute controlled substances.
27. Tre Fernandes, a/k/a “OZ” or “OC,” 25, is charged with conspiracy to distribute and to possess with intent to distribute controlled substances.
28. Sandro Pereira Cabral, 23, is charged with conspiracy to distribute and to possess with intent to distribute controlled substances.
29. John Rodrigues, a/k/a “Joao Fernandes Rodrigues,” 26, is charged with conspiracy to distribute and to possess with intent to distribute controlled substances.
30. Sean Brown, 25, is charged with possession with intent to distribute a controlled substance; being a felon in possession of a firearm; and possession of a firearm in furtherance of a drug trafficking crime. (Previously charged on 3/5/2020)
31. Eric Rodriguez, 32, is charged with possession with intent to distribute controlled substances; conspiracy to distribute controlled substances; and possession of a firearm in furtherance of a drug trafficking crime. (Previously charged on 2/19/2020)

BOSTON – Two Nigerian nationals were arrested on Friday, June 12, 2020 and charged in connection with defrauding victims using various online scams during the COVID-19 pandemic.

Nosayamen Iyalekhue, 33, and Esogie Osawaru, 27, were charged by criminal complaint with one count of wire fraud. The defendants were detained following an initial appearance.

According to the criminal complaint, Iyalekhue and Osawaru participated in a series of romance, pandemic unemployment insurance, and other online scams designed to defraud victims by convincing them to send money to accounts controlled by the defendants. To carry out the scams, the defendants allegedly used false foreign passports in the names of others, but with their photos, to open numerous bank accounts, and in turn directed the victims to send money to these accounts. Iyalekhue and Osawaru then rapidly withdrew the victims’ money from various bank branches and ATMs, often multiple times during a single day. It is alleged that the schemes included collecting unemployment insurance in the name of others during the COVID-19 pandemic.

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

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

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

BOSTON – A Stoughton man was sentenced today in federal court in Boston for conspiring to distribute and possess with intent to distribute cocaine, crack cocaine, heroin, and marijuana.

Joseph Greene, 22, of Stoughton, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to time served (approximately one month in prison) and three years of supervised release. On May 9, 2020, Greene pleaded guilty to one count of conspiracy to distribute 100 grams or more of heroin, 400 grams or more of fentanyl, cocaine, cocaine base, oxycodone, and marijuana. Greene was charged by criminal complaint and arrested on Nov. 1, 2018 and then indicted in December 2018. Greene enrolled in the Court-run RISE program, which he successfully completed.  

In 2018, federal and state law enforcement began investigating members of a drug trafficking organization in and around the Boston area, allegedly led by Djuna Goncalves. The investigation revealed that Goncalves allegedly worked with several others to distribute heroin, fentanyl, cocaine, crack cocaine, and marijuana from a base of operations in Brockton. Over the course of the investigation, other members of Goncalves’ drug cell were identified, including Greene. Greene purchased crack and powder on multiple occasions from Goncalves in October 2018. 

United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Emanuel Gomes; John Gibbons, United States Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy Cruz made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Alathea Porter of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.

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

BOSTON – Six former employees of eBay, Inc. have been charged with leading a cyberstalking campaign targeting the editor and publisher of a newsletter that eBay executives viewed as critical of the company. The alleged harassment included sending the couple anonymous, threatening messages, disturbing deliveries – including a box of live cockroaches, a funeral wreath and a bloody pig mask – and conducting covert surveillance of the victims. 

James Baugh, 45, of San Jose, Calif., eBay’s former Senior Director of Safety & Security, was arrested today and charged by criminal complaint with conspiracy to commit cyberstalking and conspiracy to tamper with witnesses.

David Harville, 48, of New York City, eBay’s former Director of Global Resiliency, was arrested this morning in New York City on the same charges and will make an initial appearance via videoconference in U.S. District Court in the Southern District of New York.

In addition the following defendants were charged in an Information unsealed today: Stephanie Popp, 32, of San Jose, eBay’s former Senior Manager of Global Intelligence; Stephanie Stockwell, 26, of Redwood City, Calif., the former manager of eBay’s Global Intelligence Center (GIC); Veronica Zea, 26, of San Jose, a former eBay contractor who worked as an intelligence analyst in the GIC; and Brian Gilbert, 51, of San Jose, a former Senior Manager of Special Operations for eBay’s Global Security Team. They are each charged with  conspiracy to commit cyberstalking and conspiracy to tamper with witnesses and will make appearances in federal court in Boston at a later date. 

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, a multinational ecommerce business that offers platforms for consumer-to-consumer and business-to-consumer transactions. Members of the executive leadership team at eBay 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, after the newsletter published an article about litigation involving eBay, two members of eBay’s executive leadership team sent or forwarded text messages suggesting that it was time to “take down” the newsletter’s editor.

In response, Baugh, Harville, Popp, Gilbert, Zea, Stockwell, and others 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 documents allege that Baugh, Gilbert, Popp and another eBay security employee planned these messages to become increasingly disturbing, culminating with “doxing” the victims (i.e., publishing their home address). It is alleged that the very 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. According to the complaint, Harville and Zea registered for a software development conference to explain their trip to Boston on Aug. 15, 2019. Baugh, Harville, and Zea (and later Popp) allegedly drove to the victims’ home in Natick several times, with Harville and Baugh intending at one point to break into the victims’ garage and install a GPS tracking device on their car. As protection in the event they were stopped by local police, Baugh and Harville allegedly carried false documents purporting to show that they were investigating the victims as “Persons of Interest” who had threatened eBay executives. The victims spotted the surveillance, however, and notified the Natick police, who began to investigate. The police learned that Zea had rented one of the cars used by the defendants and reached out to eBay for assistance.

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. At one point, for example, Baugh, Gilbert, Popp, and Stockwell allegedly plotted to fabricate another eBay “Person of Interest” document that could be offered to the police as a lead on some of the harassing deliveries. 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.

U.S. 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 Haverhill nurse pleaded guilty today in federal court in Boston to tampering with patients’ morphine.

Brianna Duffy, 32, pleaded guilty to one count of tampering with a consumer product and one count of acquiring a controlled substance by fraud or deception. U.S. District Court Judge William G. Young scheduled sentencing for Sept. 14, 2020. Duffy was indicted in July 2019.

On March 17 and 18, 2019, while working as a registered nurse at Hunt Nursing and Rehab in Danvers, Duffy tampered with morphine sulfate prescribed to an 89-year old hospice patient. In an attempt to avoid detection, she replaced the extracted medication with another liquid, diluting the morphine to just 26% of the prescribed concentration. The hospice patient received the diluted morphine and suffered unnecessary pain.

From December 2016 until July 2017, while working as a registered nurse at Maplewood Care and Rehabilitation Center in Amesbury, Duffy diverted morphine from two bottles that were prescribed to a 68-year old patient. Duffy removed morphine from the bottles and diluted the remaining morphine with another liquid, leaving only 1.2%-2.5% of the declared concentration of morphine. Duffy tested positive for morphine on July 18, 2017.

The charges provide 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; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office on Investigations; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorneys Elysa Wan and Patrick Callahn of Lelling’s Health Care Fraud Unit are prosecuting the case.

BOSTON – A Dighton registered nurse was charged today in federal court in Boston with drug tampering.

Marietta Strickland, 61, was charged by information with one count of tampering with a consumer product, specifically the Schedule II controlled substance oxycodone, which is used for pain relief.

According to court documents, while working as a registered nurse at Dighton Care and Rehabilitation Center, Strickland tampered with three blister card packages of oxycodone prescribed to an 89-year-old hospice patient who suffered from Alzheimer’s disease, severe dementia and breast cancer. To avoid detection, Strickland replaced the stolen oxycodone pills with other prescription drugs disguised to look like oxycodone. As a result of Strickland’s tampering, the victim was deprived of her prescribed oxycodone for more than two months and ingested at least 77 unnecessary prescription tablets. 

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; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Elysa Wan of Lelling’s Health Care Fraud Unit is prosecuting the case.

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

BOSTON – A Cambridge man was sentenced on Friday, June 12, 2020, in federal court in Boston for illegally possessing two firearms and over 150 rounds of ammunition.

Robert Brito-Pina, 28, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 42 months in prison and three years of supervised release. In December 2019, Brito-Pina pleaded guilty to one count of being a felon in possession of firearms and ammunition. Brito-Pina was arrested in April 2019, and has been in custody since.

Brito-Pina was arrested after the execution of a search warrant at his residence resulted in the seizure of two firearms and over 150 rounds of ammunition. The recovered items included a stolen SCCY Model CPX-1 9mm caliber semi-automatic pistol loaded with eight rounds of ammunition; a Springfield Amory, Model XDM 9mm caliber semi-automatic pistol with an obliterated serial number, loaded with 18 rounds of ammunition; and an additional 131 rounds of assorted ammunition. Federal law prohibits Brito-Pina from possessing a firearm or ammunition because of a prior felony conviction.

United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Cambridge Police Commissioner Branville G. Bard, Jr. made the announcement today.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department of Justice’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 Worcester man was charged today with being a felon in possession of a firearm and ammunition. 

Steven Dillon, 36, was charged by criminal complaint with one count of being a felon in possession of a firearm and ammunition. Dillon will make his initial appearance in federal court in Worcester next week.

According to the criminal complaint, on Dec. 25, 2019, Dillon was arrested by law enforcement in Worcester after brandishing a 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 complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Springfield man was charged yesterday in federal court in Springfield with child pornography offenses.

Ross Lopata, 32, was charged in a criminal complaint with receipt and possession of child pornography. Lopata was detained following an initial appearance in federal court in Springfield yesterday.

The complaint alleges that between June 2019 and June 11, 2020, Lopata received and possessed child pornography.

United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Unit is prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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

BOSTON – A resident of Vancouver, Canada, was charged yesterday in connection with a pump-and-dump scheme involving a penny stock company for which he impersonated the company’s president—an otherwise fictitious individual—and established a website containing false and misleading statements about the company’s purported business.

Shane Schmidt, 52, was charged in a criminal complaint unsealed today with one count of securities fraud and one count of conspiracy to commit securities fraud. Schmidt is believed to currently be in Canada.

According to the complaint, beginning in or about December 2018, Schmidt purported to be “John Scott,” the sole director and officer of the company Sandy Steele Unlimited, Inc. (“SSTU”).  Acting as John Scott, Schmidt provided fraudulent information to the stock quotation service OTC Markets, including fake documents purporting to reflect John Scott’s authorized takeover of SSTU and a fake passport for John Scott, bearing Schmidt’s picture. Schmidt also established a website for SSTU that described SSTU’s purported heated garment business, but which used false and misleading pictures of products for sale by other manufacturers from other websites. Schmidt allegedly took these steps in order to enable SSTU’s stock to trade via OTC Markets, to generate interest in the stock, and to share in the proceeds of stock sales, which he later did. At or about the same time as a boiler room campaign promoted the stock in the fall of 2019, SSTU’s stock price increased dramatically as investors purchased it, before later precipitously falling.

The securities fraud charge provides for a sentence up to 20 years in prison, three years of supervised release and a fine of $5 million. The conspiracy to commit securities fraud charge provides for a sentence up to five years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

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

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

BOSTON – The United States Attorney’s Office filed a civil forfeiture action against a Waltham home that was the former residence and business location of a couple previously indicted in connection with a scheme to smuggle goods out of the United States and to supply services to Syria. The United States also seized the U.S. website of the Syrian-based company Electronic Katranji Trading (“EKT”), ekt2.com, on probable cause that it was used to facilitate the illegal export of merchandise from the United States. 

The Waltham home, located at 10 Juniper Hill Road, is the former residence of Anni Beurklian, a/k/a Anni Ajaka (“Beurklian”), a naturalized U.S. citizen from Lebanon and her husband, Antoine Ajaka, a/k/a Tony Ajaka (“Ajaka”), a lawful permanent resident from Lebanon. The couple operated Top Tech US Inc. (“Top Tech”), a U.S. company, from the Waltham home. Beurklian, Ajaka and Top Tech were indicted in March 2018 on conspiracy to violate U.S. export laws and regulations, conspiracy to defraud the United States, smuggling U.S. goods out of the United States, illegally providing services to persons located in Syria, mail fraud, conspiracy to obstruct justice and obstruction of justice.

While engaged in plea negotiations with the U.S. government, Beurklian and Ajaka fled the United States in 2018 to avoid prosecution, and are believed to be in Syria or Lebanon.

As alleged in the complaint, from 2014 and continuing until the couple fled the United States, Beurklian and Ajaka operated an export business, Top Tech, from the Waltham home. The couple used the home to procure goods, including electronics, computer equipment and electrical switches, from U.S. companies and exported those goods to various countries, including Lebanon, Egypt and China, in violation of U.S. law.

One of their customers was Amir Katranji (“Kantranji”), a citizen of Syria who operates and manages EKT. In 2007, EKT and its founder, Mohammad Katranji, Amir Katranji’s father, were added to the Department of Commerce’s Entity List because the U.S. government had determined that EKT and Mohammad Katranji were involved in activities related to the acquisition, attempted acquisition, and/or development of improvised explosive devices, which were being used against U.S. and Coalition troops in Iraq and Afghanistan.

Ajaka and Beurklian allegedly did business with Katranji and supplied U.S. origin goods to EKT and its subsidiary companies using Top Tech and the Waltham home. Ajaka and Beurklian were aware that Katranji operated a business in Syria and that they were providing services to Katranji and his Syrian company, EKT. It is alleged that pursuant to instructions Katranji provided, Beurklian would, contrary to law, export electronics, computer equipment and electrical switches from the Waltham home, misidentifying the purchaser or end user and falsely understating the value of the goods, thus avoiding the triggering of reporting and/or licensing obligations for exports under U.S. customs laws.

In a related action, the U.S. Attorney’s Office has obtained a seizure warrant for the website domain, ekt2.com, and related email domain @ekt2.com. EKT used the domain to facilitate the shipment of goods in violation of U.S. export laws. A banner on the website now informs the public that the website has been seized by ICE – Homeland Security Investigations.

Katranji, who operates and manages EKT, is also named as a defendant in the criminal indictment with Ajaka and Beurklian.

The civil forfeiture action and website seizure are pursuant to Title 19 of the United States Code, which provides that property used to facilitate the exporting or sending of merchandise from the United States contrary to law shall be seized and forfeited to the United States. 

In July of 2018, the U.S. Department of the Treasury designated EKT, Katranji, Beurklian and Ajaka as Weapons of Mass Destruction Proliferators pursuant to Executive Order 13382. Accordingly, it is illegal for any U.S. person to do business with them. These designations and sanctions were imposed against EKT, Katranji, Beurklian, and Ajaka in coordination with similar actions by the French government based upon evidence that EKT was involved in the development of chemical weapons used by the Syrian Government.

United States Attorney Andrew Lelling; Michael Shea, Acting Special Agent in Charge of the Homeland Security Investigation, Boston Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The criminal case was investigated by HSI, FBI, Department of Commerce, Office of Export Enforcement, Boston Field Office and Defense Criminal Investigative Service, Northeast Field Office. The civil forfeiture action and seizure warrant are being prosecuted by Assistant U.S. Attorney Carol E. Head of Lelling’s Asset Recovery Unit. The criminal case is being prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann, Chief of Lelling’s National Security Unit.

The details contained in the civil forfeiture complaint are allegations. 

BOSTON – A Honduran national was sentenced yesterday in federal court in Boston for illegal reentry.

Oscar Elvir Carcamo was sentenced by U.S. District Court Judge Patti B. Saris to eight months in prison and one year of supervised release. Upon completion of his sentence, Carcamo will be placed into removal proceedings and deported to Honduras. Carcamo was indicted in September 2019 and pleaded guilty in March 2020.

Carcamo was first encountered by immigration officials in 2004 at the Texas border and determined to be illegally present in the United States. Carcamo was placed into removal proceedings and deported on Oct. 29, 2004. Carcamo illegally reentered the United States on two occasions in 2008, was prosecuted in the Southern District of Texas and then deported.

Sometime after his 2008 removal, Carcamo illegally reentered the United States and was arrested on Jan. 1, 2015 in Framingham and charged with assault and battery on a pregnant woman. Carcamo appeared in the Framingham District Court, posted bail and was released. At that time, ICE was not notified and the case went into default.  

On Jan. 31, 2019, Carcamo was arrested in Framingham and charged with domestic assault and battery. Carcamo appeared in Framingham District Court, posted bail and was released. ICE, who had lodged a detainer, was not notified. 

On July 15, 2019, Carcamo was arrested in Framingham and charged with breaking and entering. Carcamo appeared in Framingham District Court and was ordered held on bail. While in custody, ICE interviewed Carcamo and determined that he was illegally present in the United States. In November 2019, Carcamo was convicted of assault and battery on a pregnant person and sentenced to one year in state prison. Upon completion of his sentence, Carcamo was transferred into federal custody to await resolution of the federal charges of illegal reentry. Carcamo has been in federal custody since March 2020.

United States Attorney Andrew E. Lelling and Todd Lyons, Acting Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.

BOSTON – The former office manager of a Boston-based dental practice pleaded guilty yesterday in federal court in Boston to charges of bank fraud and tax fraud stemming from her embezzlement of funds from her former employer.

Yuliya Vaysglus, a/k/a Julia Vaysglus, 36, formerly of Hopkinton, now residing in Campbell, Calif., pleaded guilty to eight counts of bank fraud, one count of aggravated identity theft and three counts of filing false tax returns. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Nov. 17, 2020.

From 2009 until she was terminated in February 2015, Vaysglus was the office manager of a Boston-area dental practice where her duties included tracking client invoices, depositing insurance payments into the practice’s bank account, and recording those deposits for accounting purposes. Between 2009 and December 2014, Vaysglus embezzled more than $348,000 from the dental practice by diverting to herself at least 276 checks from various insurance companies for services rendered to patients. As part of the scheme, Vaysglus made the checks payable to herself, forged the signature of the dental firm’s owner on the checks, and deposited them into her bank account. Vaysglus failed to report the embezzled funds on her federal tax returns.

The charge of bank fraud 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 filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000. Aggravated identity theft carries a mandatory two-year sentence that must be served consecutively to any other sentence, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service in Boston; 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 Sara M. Bloom and Victor A. Wild of Lelling’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.

BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for illegal possession of a firearm and ammunition and illegal reentry.

Twaldo Baez was sentenced by U.S. District Court Chief Judge F. Dennis Saylor to 15 months in prison and three years of supervised release. Upon completion of his sentence, Baez will be placed into removal proceedings and deported to the Dominican Republic. In February 2020, Baez pled guilty to being an alien in possession of a firearm and ammunition and illegal reentry.

Baez was first encountered by immigration officials in 2006 while he was serving a sentence for domestic assault and battery and breaking and entering. Upon completion of his sentence, Baez was deported to the Dominican Republic on Aug. 5, 2007.

Sometime after his 2007 removal, Baez illegally reentered the United States. In March 2019, Baez was encountered by law enforcement officers following a high-speed vehicle chase. The vehicle Baez was operating was eventually stopped. During a subsequent search of the vehicle, law enforcement recovered a 9mm semi-automatic firearm and 8 rounds of ammunition.  Baez was charged with by the state with possession of the firearm and ammunition. His prints were later obtained and found to match the prints on his 2007 removal. Baez appeared in the Lawrence District Court and was held on bail.  In September 2019, Baez posted bail, was then released to ICE, and has been in federal custody since.

United States Attorney Andrew E. Lelling; Todd Lyons, Acting Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Lawrence Police Chief Roy Vasque; and Essex County District Attorney Jonathan W. Blodgett made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.

BOSTON – A Lowell man was arrested today and charged in connection with advertising the sale of a firearm on Snapchat.   

Juan Aparicio, 29, was charged by criminal complaint with one count of being a felon in possession of a firearm and ammunition and one count of possession with intent to distribute cocaine. Aparicio will make an initial appearance before U.S. Magistrate Judge Donald L. Cabell this afternoon.

According to the charging document, on Jan. 6, 2020, police officers executed a search of Aparicio’s residence after viewing Snapchat videos that evening showing Aparicio offering to sell numerous firearms. A loaded assault rifle and cocaine were recovered during the search. Due to previous convictions punishable by more than one year in prison, Aparicio 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, one year of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Middlesex County District Attorney Marian T. Ryan; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Lowell Superintendent of Police Raymond Kelly Richardson made the announcement today. Assistant U.S. Attorney Evan Panich of Lelling’s Office is prosecuting the case.

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

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

BOSTON – A Worcester man pleaded guilty yesterday in connection with unlawfully importing and exporting salamander and turtle species.    

Nathan Boss, 27, pleaded guilty to two counts of smuggling wildlife into the United States, two counts of smuggling wildlife out of the United States, and making a false statement to a federal agent. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Sept. 24, 2020. Boss was arrested and charged by criminal complaint in October 2019 and indicted in November 2019.

The investigation began in 2017 when Boss lied to federal investigators about the identity of a recipient of wildlife illegally imported into the United States. Subsequently, federal investigators intercepted an inbound U.S. Postal Service package from Hong Kong that was addressed to “Shelton Boss” at an address on Mildred Avenue in Worcester. The package was found to contain four black-breasted leaf turtles (Geoemyda spengleri), a species included in the Convention for Trade in Endangered Species and Wild Fauna, an international agreement joined by the U.S. that governs the importation of designated wildlife. Specifically, any black-breasted leaf turtle imported into the United States must be declared and approved by Fish and Wildlife Service before any shipment can be received.  

Boss was also found to have illegally imported an injurious species of salamander which can carry a fungal disease and is prohibited from importation into the United States. Further investigation revealed that, on multiple occasions, Boss illegally exported undeclared wildlife destined for locations in Hong Kong and Sweden.   

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

United States Attorney Andrew E. Lelling and Ryan Noel, Special Agent in Charge, of the U.S. Fish and Wildlife Service, Office of Law Enforcement made the announcement. Assistance with the investigation was provided by the U.S. Postal Inspection Service, U.S. Customs and Border Protection, Massachusetts Environmental Police and the Massachusetts Division of Fisheries and Wildlife. Assistant U.S. Attorney Nadine Pellegrini of Lelling’s Criminal Division is prosecuting the case. 

BOSTON – A Holyoke man was sentenced in federal court in Springfield today for heroin distribution.

Glenn Jacobs, 37, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 20 months in prison and three years of supervised release. In January 2020, Jacobs pleaded guilty to possessing with intent to distribute heroin.

Jacobs possessed heroin with intent to distribute it on June 12, 2019 in Holyoke. The case was the result of a joint investigation into heroin trafficking in Holyoke.

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 Todd E. Newhouse of Lelling’s Springfield Branch Office prosecuted the case.

BOSTON – The former Chair of Harvard University’s Chemistry and Chemical Biology Department was indicted today on charges of making false statements to federal authorities regarding his participation in China’s Thousand Talents Program.  

Dr. Charles Lieber, 61, has been indicted by a federal grand jury on two counts of making false statements and will be arraigned in federal court in Boston at a later date. Lieber was arrested on Jan. 28, 2020 and charged by criminal complaint.

According to charging documents, since 2008, Dr. Lieber has served as the Principal Investigator of the Lieber Research Group at Harvard University, specializing in the area of nanoscience. Lieber’s research at the Lieber Research Group has been funded by more than $15 million in research grants from the National Institutes of Health (NIH) and Department of Defense (DOD). Among other things, these grants required the disclosure of all sources of research support, potential financial conflicts of interest and all foreign collaboration.

It is alleged that, unbeknownst to Harvard University, beginning in 2011, Lieber became a “Strategic Scientist” at Wuhan University of Technology (WUT) in China. He later became contractual participant in China’s Thousand Talents Plan from at least 2012 through 2015. China’s Thousand Talents Plan is one of the most prominent Chinese talent recruitment plans designed to attract, recruit, and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security. According to court documents, these talent recruitment plans seek to lure Chinese overseas talent and foreign experts to bring their knowledge and experience to China, and they often reward individuals for stealing proprietary information. Under the terms of Lieber’s three-year Thousand Talents contract, WUT allegedly paid Lieber a salary of up to $50,000 USD per month, living expenses of up to    1 million Chinese Yuan (approximately $158,000 USD at the time) and awarded him more than $1.5 million to establish a research lab at WUT. In return, Lieber was obligated to work for WUT “not less than nine months a year” by “declaring international cooperation projects, cultivating young teachers and Ph.D. students, organizing international conference[s], applying for patents and publishing articles in the name of [WUT].” 

It is alleged that in 2018 and 2019, Lieber lied to federal authorities about his involvement in the Thousand Talents Plan and his affiliation with WUT. On or about April 24, 2018, during an interview with federal investigators, it is alleged that Lieber falsely stated that he was never asked to participate in the Thousand Talents Program, but that he “wasn’t sure” how China categorized him. In November 2018, NIH inquired of Harvard about whether Lieber had failed to disclose his then-suspected relationship with WUT and China’s Thousand Talents Plan. Lieber allegedly caused Harvard to falsely tell NIH that Lieber “had no formal association with WUT” after 2012, that “WUT continued to falsely exaggerate” his involvement with WUT in subsequent years, and that Lieber “is not and has never been a participant in” China’s Thousand Talents Plan. 

The charge of making false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. 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 for National Security John C. Demers; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; and Philip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General made this announcement. Assistant U.S. Attorneys Jason Casey and Benjamin Tolkoff of Lelling’s National Security Unit are prosecuting this case with the assistance of Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section.

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

The former Chair of Harvard University’s Chemistry and Chemical Biology Department was indicted today on charges of making false statements to federal authorities regarding his participation in China’s Thousand Talents Program. 

Dr. Charles Lieber, 61, has been indicted by a federal grand jury on two counts of making false statements and will be arraigned in federal court in Boston at a later date.  Lieber was arrested on Jan. 28, 2020, and charged by criminal complaint.

According to charging documents, since 2008, Dr. Lieber has served as the Principal Investigator of the Lieber Research Group at Harvard University, specializing in the area of nanoscience. Lieber’s research at the Lieber Research Group has been funded by more than $15 million in research grants from the National Institutes of Health (NIH) and Department of Defense (DOD).  Among other things, these grants required the disclosure of all sources of research support, potential financial conflicts of interest and all foreign collaboration.

It is alleged that, unbeknownst to Harvard University, beginning in 2011, Lieber became a “Strategic Scientist” at Wuhan University of Technology (WUT) in China.  He later became contractual participant in China’s Thousand Talents Plan from at least 2012 through 2015.  China’s Thousand Talents Plan is one of the most prominent Chinese talent recruitment plans designed to attract, recruit, and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security.  According to court documents, these talent recruitment plans seek to lure Chinese overseas talent and foreign experts to bring their knowledge and experience to China, and they often reward individuals for stealing proprietary information.  Under the terms of Lieber’s three-year Thousand Talents contract, WUT allegedly paid Lieber a salary of up to $50,000 USD per month, living expenses of up to 1 million Chinese Yuan (approximately $158,000 USD at the time) and awarded him more than $1.5 million to establish a research lab at WUT.  In return, Lieber was obligated to work for WUT “not less than nine months a year” by “declaring international cooperation projects, cultivating young teachers and Ph.D. students, organizing international conference[s], applying for patents and publishing articles in the name of [WUT].” 

It is alleged that in 2018 and 2019, Lieber lied to federal authorities about his involvement in the Thousand Talents Plan and his affiliation with WUT. On or about April 24, 2018, during an interview with federal investigators, it is alleged that Lieber falsely stated that he was never asked to participate in the Thousand Talents Program, but that he “wasn’t sure” how China categorized him.  In November 2018, NIH inquired of Harvard about whether Lieber had failed to disclose his then-suspected relationship with WUT and China’s Thousand Talents Plan.  Lieber allegedly caused Harvard to falsely tell NIH that Lieber “had no formal association with WUT” after 2012, that “WUT continued to falsely exaggerate” his involvement with WUT in subsequent years, and that Lieber “is not and has never been a participant in” China’s Thousand Talents Plan. 

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

Assistant Attorney General for National Security John C. Demers; U.S. Attorney for the District of Massachusetts Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; and Philip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General made this announcement.  Assistant U.S. Attorneys Jason Casey and Benjamin Tolkoff of Lelling’s National Security Unit are prosecuting this case with the assistance of Trial Attorney David Aaron of the National Security Division’s Counterintelligence and Export Control Section.

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

BOSTON – A Dominican national previously residing in Methuen pleaded guilty yesterday in federal court in Boston to distributing fentanyl.

Milton Elias Lara, 42, pleaded guilty to distribution of and possession with intent to distribute 40 grams or more of fentanyl. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Aug. 31, 2020. In July 2019, Lara was arrested and charged.

During the course of an investigation, Lara was identified as a fentanyl distributor operating in the Merrimack Valley. A search of Lara’s apartment resulted in the seizures of approximately 289 grams of fentanyl, 24 grams of cocaine, and drug packaging tools and materials.

The charge of distribution of and possession with intent to distribute 40 grams or more of fentanyl carries a mandatory minimum sentence of five years and up to 40 years in prison, 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Tewksbury Police Chief Timothy Sheehan made the announcement. Valuable assistance was provided by Homeland Security Investigations and the Andover, Billerica, Lawrence, Lowell, Methuen, and North Andover Police Departments. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.

BOSTON – A Worcester man was sentenced today for being a felon in possession of a firearm and ammunition. 

Christopher Brown, 35, was sentenced by U.S. District Court Judge Timothy S. Hillman to 41 months in prison and three years of supervised release. In February 2020, Brown pleaded guilty to being a felon in possession of a firearm.

On Nov. 25, 2018, Brown was arrested in Worcester for possession of a loaded Taurus .38 revolver and 4 rounds of ammunition. Brown is prohibited from possessing a firearm due to prior convictions punishable by more than one year in prison.

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. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester 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. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

BOSTON – A North Dartmouth woman was sentenced today in connection with her role in obtaining cocaine from Puerto Rico through the mail.

Cristina Lopez, 45, was sentenced by U.S. District Court Judge Leo Sorokin to six years in prison and three years of supervised release. In October 2019, Lopez pleaded guilty to conspiring to possess with intent to distribute five kilograms or more of cocaine and possession with intent to distribute 500 grams or more of cocaine. Lopez has been in custody since her arrest in August of 2018.

Between March 2017 and August 2018, postal inspectors identified more than 40 suspicious parcels that had been sent through the mail from Puerto Rico to various addresses in Massachusetts, including residences in Quincy, North Dartmouth, Weymouth, and New Bedford. The suspicious parcels were often sent on the same day from Puerto Rico to two or more different addresses in Massachusetts. Agents executed search warrants on two of the parcels and seized approximately two kilograms of cocaine hidden in sealed coffee cans. Through surveillance, it was determined that Lopez and John Tavares, 31, of Weymouth, were receiving the majority of the parcels. It was also determined that Lopez and Tavares had been flying regularly from Massachusetts to Puerto Rico for trips lasting only 30 to 72 hours, and that the parcels suspected of containing cocaine were then typically sent to Massachusetts within one to three days after their return. At sentencing, Judge Sorokin found that Lopez and Tavares were responsible for distributing more than 44 kilograms of cocaine.

Multiple search warrants were executed on Aug. 18, 2018, including at three different residences in Weymouth, North Dartmouth and Boston. During those searches, more than three kilograms of cocaine, in excess of $100,000 in U.S. currency, two firearms and various drug paraphernalia was seized.

Tavares pleaded guilty to conspiring to possess with intent to distribute five kilograms or more of cocaine and possession with intent to distribute 500 grams or more of cocaine. He is scheduled to be sentenced before Judge Sorokin on June 22, 2020.

United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service in Boston; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Norfolk County District Attorney Michael W. Morrissey; Bristol County District Attorney Thomas M. Quinn, III; and Bristol County Sheriff Thomas M. Hodgson made the announcement today. Police Departments in Quincy, Weymouth, Braintree, North Dartmouth and Boston also assisted with the investigation. Assistant U.S. Attorneys James E. Arnold and Nadine Pellegrini of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.

BOSTON – A Dominican national previously residing in Lawrence pleaded guilty and was sentenced today for distributing fentanyl.

Enel Alfredo Mendez-Aquino, 30, pleaded guilty to distribution of fentanyl and was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 12 months in prison and three years of supervised release. Mendez-Aquino will face deportation proceedings upon completion of his sentence. Mendez-Aquino was indicted by a grand jury on Aug. 1, 2019.

On June 11, 2019, federal agents observed Mendez-Aquino throw objects into a SUV parked on Abbott Street in Lawrence. During a subsequent stop of the SUV, the occupants of the vehicle admitted that they had just purchase drugs from Mendez-Aquino. Law enforcement officers arrested Mendez-Aquino, who has been in custody since. A lab test confirmed that the drugs were fentanyl and cocaine.

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

United States Attorney Andrew 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 Lucy Sun prosecuted the case.

BOSTON – A Brockton man was charged in connection with attempting to purchase six firearms from an undercover federal agent.

Rotchill Seme, 21, of Brockton, was arrested yesterday and charged with being a felon in possession of a firearm. Following an initial appearance today, Seme was detained pending a detention hearing scheduled for June 10, 2020.

According to the criminal complaint, beginning on May 25, 2020, Seme began texting with an uncover federal agent about purchasing multiple firearms. After meeting on May 27, 2020, Seme agreed to purchase six handguns from the undercover agent for $3,500. On June 3, 2020, Seme met the undercover agent in a Brockton fast food restaurant parking lot to conduct the transaction. As the meeting concluded, law enforcement approached to arrest Seme, who attempted to flee but was arrested. Seme, who was wearing an ankle GPS bracelet at the time of his arrest, is on parole following state convictions for various drug and firearms offenses and is therefore prohibited from possessing firearms and ammunition.

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; Kelley D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Assistant U.S. Attorney David G. Tobin, of Lelling’s Major Crimes Unit, is prosecuting the case.

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

BOSTON – An Amesbury man who was previously charged with child pornography offenses was re-arrested today after allegedly violating his conditions of pretrial release.

Thomas Cross, 30, was arrested today for violating the conditions of his pretrial release by possessing devices with internet accessibility. Cross was ordered detained following a detention hearing in federal court in Boston this afternoon.

Cross was initially detained by a Magistrate Judge following his arrest on Nov. 15, 2018, on charges of possession, receipt, and distribution of child pornography. Cross appealed the order of pretrial detention to the District Court, who released Cross on July 17, 2019 on conditions which, among other things, prohibited him from accessing the internet, possessing pornographic material, and possessing internet-accessible devices.

Today, during a search at Cross’s home based on a CyberTip regarding the potential use of social media to exchange child pornography, Cross was found to be in possession of multiple cell phones and an internet-connected gaming console. The search of those devices is ongoing.

According to the charging documents, Cross’s pending charges stem from the Nov. 15, 2018 search of Cross’s home that resulted in the seizure of several electronic devices, which contained files depicting child pornography and chats between Cross and a person he identified as Desiree Daigle, in which they exchange various child pornography files. Some of the images depict an infant known to Daigle, allegedly taken in Daigle’s home. It is alleged that in the course of the chat, the two discussed plans for Cross to meet the child in person so that they could sexually abuse the child together. Both Cross and Daigle admitted to exchanging child pornography with each other. Daigle, who is in custody, has been separately charged with the sexual exploitation of children, and her case remains pending. 

The charges of distribution and receipt of child pornography each provide for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 20 years in prison. All of the charges provide for a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based 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. Assistance was provided by the Amesbury Police Department. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.

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

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 Worcester, Mass. man was arrested and charged today with civil disorder and possession of a Molotov cocktail during a demonstration over the death of George Floyd in Minneapolis, Minnesota. The incident occurred during demonstrations in the City of Worcester.

Vincent Eovacious, 18, has been charged with civil disorder, in that he attempted to obstruct or interfere with law enforcement officers engaged in responding to the violent demonstration in Worcester on June 1, 2020, and unlawful possession of firearm, namely a destructive device. Eovacious was arrested today after being released on bond following state charges, including possession of an incendiary device. He will appear in federal court in Worcester tomorrow.

“The right to protest is not the right to hurt police officers and destroy property,” said United States Attorney Andrew E. Lelling. “According to the complaint, this self-proclaimed anarchist built Molotov cocktails – homemade firebombs – to use during a demonstration honoring George Floyd. We will aggressively prosecute anyone who pursues violence under cover of peaceful protest.”

“This defendant was in possession of several Molotov Cocktails and appeared intent to use them as lethal devices against Police Officers while they were protecting the rights of protestors. This violent act puts the our entire community, protestors and first responders alike, at risk. I commend the outstanding work of the Worcester Police Department who acted swiftly and were able to arrest this individual before any harm could be done,” stated ATF Special Agent in Charge Kelly D. Brady.

“As alleged, the danger posed by Vincent Eovacious in this case was very real. The apparent intent to hurl Molotov cocktails at police officers who are risking their lives to protect the Constitutional rights of protesters and the safety of us all is utterly reprehensible,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s arrest sends a clear message--when you are intent on conducting a violent act that breaks federal law, the FBI and our law enforcement partners will move with speed to hold you accountable. After all, this type of behavior puts our entire community in danger, and we simply will not let it go unaddressed.”

According to charging documents, on June 1, 2020, crowds gathered at various locations in Worcester to protest the recent death of George Floyd, including South Main Street. At approximately 10:00 p.m., a large crowd blocked traffic and began throwing objects in the direction of the police. As officers on scene gathered into a line formation, one officer observed a man dressed in a trench coat standing on top of a building at 848 Main Street which is clearly marked, “No Trespassing.” The man, later identified as Eovacious, allegedly yelled for the crowd below to kill the police and paced back and forth on the rooftop. The officer then observed Eovacious remove from a bottle from his satchel that appeared to contained liquid and attempt to insert a rag into the bottle while holding a silver object that the officer believed to be a lighter. Minutes later, officers observed Eovacious walking in the area of May and Main Streets, still carrying the satchel, and stopped him. According to court documents, officers searched the satchel and recovered three clear glass bottles with a slightly yellow liquid that smelled of gasoline, five white rags, one green lighter and one silver lighter. Eovacious stated that the liquid in the glass bottles was gasoline and that he was “with the anarchist group” and was “waiting for an opportunity.”

The civil disorder charge provides for a sentence of up to five years in prison, three years of supervised release and a fine $250,000. The charge of unlawful possession of a firearm provides for a sentence of up to ten 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.

U.S. Attorney Lelling, ATF SAC Brady, FBI SAC Bonavolonta, and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorneys Greg Friedholm and Danial Bennett, of Lelling’s Worcester Branch Office, are prosecuting the case.

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

BOSTON – A Swiss lawyer was sentenced today in federal court in Boston in connection with participating in an international pump-and-dump scheme.

Matthew Ledvina, 46, was sentenced by U.S. District Court Judge William G. Young to 30 months of probation and ordered to pay a fine of $50,000. In February 2019, Ledvina pleaded guilty to one count of conspiracy to commit securities fraud.

In or about June 2017, Ledvina assisted his co-conspirators by creating nominee entities that were used to hold shares in Environmental Packaging Technologies Inc. (EPTI), a publicly-traded company. The nominee entities allowed the true owners of the shares to mask their identities and to secretly sell large quantities of EPTI shares, even as they and others simultaneously orchestrated promotional campaigns and other manipulative efforts to artificially inflate the price and trading volume of those shares.

Roger Knox, the operator of Silverton, a Switzerland-based asset management firm, was charged with helping to facilitate the EPTI pump-and-dump and other market manipulation schemes. During the pump-and-dump, Silverton sold approximately $1.5 million worth of EPTI stock before trading was halted by the Securities and Exchange Commission. 

Knox previously pleaded guilty and is currently scheduled to be sentenced on Sept. 30, 2020. 

United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement.  Assistant U.S. Attorney Eric Rosen of Lelling’s Securities and Financial Fraud Unit prosecuted the case.

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

Lavon Pemberton, 32, was charged by criminal complaint with one count of being a felon in possession of a firearm and ammunition. Pemberton will make an initial appearance in federal court in Worcester on Friday, June 5, 2020.

According to the charging documents, on May 14, 2020, Pemberton was stopped by law enforcement for speeding on the Massachusetts Turnpike while driving a rented vehicle. Law enforcement subsequently located a loaded firearm in the vehicle. Pemberton is currently on supervised release for a previous conviction in federal court of being a felon in possession of a firearm.

The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release years 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; Kelley D. Brady, Special Agent in Charge of the Bureau of alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Kristen Noto of Lelling’s Worcester Branch Office is prosecuting the case. 

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

BOSTON – The principal and co-founder of a North Andover mortgage short sale assistance company pleaded guilty today in connection with defrauding mortgage lenders and investors out of nearly $500,000 in proceeds from about 90 short sale transactions.

Gabriel T. Tavarez, 40, pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. U.S. District Court Judge Nathaniel M. Gorton to scheduled sentencing for October 7, 2020.

Tavarez founded and co-operated Loss Mitigation Services, LLC, with co-conspirator Jaime L. Mulvihill, 40, who previously pleaded guilty and was sentenced in February 2020 to six months in prison.

The charges arise out of the defendants’ scheme to steal undisclosed and improper fees from mortgage lenders in connection with short sales of homes. A short sale occurs where the mortgage debt on the home is greater than the sale price, and the mortgage lender agrees to take a loss on the transaction.

Loss Mitigation Services, purportedly acting on behalf of underwater homeowners, negotiated with mortgage lenders for approval of short sales in lieu of foreclosure. Mortgage lenders typically forbid short sale negotiators, such as Loss Mitigation Services, from receiving any proceeds of a short sale.

From 2014 to 2017, Tavarez and Mulvihill, directly or through their employees, falsely claimed to homeowners, real estate agents, and closing attorneys that mortgage lenders had agreed to pay Loss Mitigation Services fees known as “seller paid closing costs” or “seller concessions” from the proceeds of the short sales. In reality, the mortgage lenders had never approved Loss Mitigation Services to receive those fees. When the short sales closed, at the instruction of Tavarez or Mulvihill, or others working with them, settlement agents paid Loss Mitigation Services the fees, which typically were 3% of the short sale price above and beyond any fees to real estate agents, closing attorneys and others involved in the transaction. To deceive mortgage lenders about the true nature of the fees, Tavarez or Mulvihill filed, or caused others to file, false short sale transaction documents with mortgage lenders, including altered settlement statements and fabricated contracts and mortgage loan preapproval letters. Tavarez and Mulvihill fabricated the transaction documents, or caused them to be fabricated, in order to justify the additional fees and conceal that they were being paid to Loss Mitigation Services. In addition, Tavarez created, or directed others to create, fake letters from mortgage brokers claiming that the brokers had approved buyers for financing, in order to convince mortgage lenders to approve the additional fees.

The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, one year of supervised release, and a fine of $250,000, or twice the gross gain or loss. 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; Robert Manchak, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General, Northeast Region; Christina  Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom and Brian M. LaMacchia of Lelling’s Office are prosecuting the case.