District of Massachusetts

BOSTON – A Bronx, N.Y., man pleaded guilty yesterday in federal court in Springfield to his role in a large-scale drug conspiracy that trafficked dozens of kilos of heroin and fentanyl into Springfield from New York City and the Dominican Republic.

Marvin Ortega, 35, pleaded guilty to one count of conspiring to distribute and possess with intent to distribute heroin. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 26, 2019. Ortega was arrested in January 2018 in New York.

According to court documents, Ortega transported heroin to Springfield and the proceeds from the sale to New York for a drug trafficking organization (DTO) based in Springfield, which was allegedly run by Alberto Marte. Marte had direct contact with heroin suppliers in the Dominican Republic, and on a monthly basis, members of his DTO transported between eight and 20 kilograms of heroin, with a street value of approximately $1.6 million and $4 million, respectively, to the Springfield area. When law enforcement authorities executed federal search warrants in September 2016, they recovered approximately $140,000 in cash and over six kilograms of heroin. 

The charge of conspiracy to distribute heroin provides for a sentence of no greater than 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; Hampden County District Attorney Anthony D. Gulluni; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police; Acting Springfield Police Commissioner Cheryl Claprood; Chicopee Police Chief William Jebb; Holyoke Police Chief Manny Febo; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorney Neil Desroches of Lelling’s Springfield Branch Office is prosecuting the case. 

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

BOSTON – A Boston woman was sentenced yesterday in federal court in Boston for her role in a scheme to embezzle more than $2.7 million from Bank of America using fraudulent donations to non-profit organizations. 

Brianna Alexis Forde, 36, was sentenced by U.S. District Court Judge Allison D. Burroughs to four months in prison and two years of supervised release, including six months of home detention. She was also ordered to pay $778,000 in restitution to Bank of America. In November 2018, Forde pleaded guilty to one count of conspiracy to commit wire fraud. In May 2017, Forde was indicted with co-conspirators Palestine Ace, a/k/a Pam Ace, 46, a former Senior Vice President of Bank of America’s Global Wealth & Investment Management Division, and her husband, Jonathan R. Ace, 46.

From approximately October 2010 to April 2015, the defendants engaged in an embezzlement and kickback scheme to defraud Bank of America of approximately $2.7 million using fraudulent donations to non-profit organizations. As part of the scheme, Palestine Ace used her position as a Senior Vice President at Bank of America to misappropriate funds from a marketing budget and transfer the money to non-profit organizations. Specifically, Palestine Ace authorized 75 transactions, each under $50,000, to non-profit organizations in Boston and Atlanta. Then, the defendants, either directly or indirectly, informed the non-profit organizations that a substantial portion of the donated funds must be returned in order to ensure that Bank of America would continue to fund the organization. The non-profit organizations either wrote a check to Jonathan Ace or Forde, or they returned funds to a Bank of America account, to which the defendants had access. On various occasions, Jonathan Ace pressured the recipients of the donated funds to return a higher percentage of the funds to him, by using intimidation and threats of public humiliation.

Palestine and Jonathan Ace used a portion of the funds they embezzled from Bank of America to support their lifestyle and pay for personal expenses, including lavish birthday parties and the purchase of a $17,000 Kawasaki motorcycle. Forde personally received over $200,000 for her role in the scheme.

On Nov. 14, 2018, Palestine Ace was sentenced to one year and one day in prison, two years of supervised release and ordered to pay restitution of $2,778,000 after pleading guilty in February 2018 to one count of conspiracy to commit bank fraud, five counts of wire fraud, and 12 counts of bank fraud. On Nov. 15, 2018, Jonathan Ace was sentenced to two years in prison, two years of supervised release and ordered to pay restitution of $1,855,000 after previously pleading guilty to one count of conspiracy to commit bank fraud, three counts of wire fraud, and one count of engaging in an unlawful monetary transaction.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorneys Neil J. Gallagher and Elianna J. Nuzum of Lelling’s Criminal Division prosecuted the case.

BOSTON – A Venezuelan national pleaded guilty today in federal court in Boston to one count of passport fraud and one count of aggravated identity theft.

Jose Antonio Rojas Marchan, 54, a Venezuelan national who resided in Lawrence until his arrest in September, pleaded guilty to one count of passport fraud and one count of aggravated identity theft. Chief U.S. District Court Judge Patti B. Saris scheduled sentencing for July 11, 2019. Rojas Marchan was originally charged in September 2018 as “John Doe,” while law enforcement worked to determine his true identity.

In November 2014, Rojas Marchan applied for a U.S. passport at a Lawrence Post Office purporting to be a U.S. citizen. On the application, he represented that the name, Social Security number, and date of birth of a Puerto Rican man were his, even though he knew they belonged to someone else. He supported the application with a Puerto Rican birth certificate and Massachusetts driver’s license in the U.S. citizen’s name. His application was flagged for additional review due to indicators of fraud, and was ultimately denied.

The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutive to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. The charge of passport fraud provides for no greater than 10 years in prison, three years of supervised released and a fine of up to $250,000. Rojas Marchan will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Elianna Nuzum of Lelling’s Major Crimes Unit is prosecuting the case.

BOSTON – A Rockland woman was sentenced yesterday in federal court in Boston for stealing Social Security benefits.   

Catherine M. Anzalone, 55, was sentenced by U.S. Senior District Court Judge George A. O’Toole, Jr. to 12 months of home confinement, three years of supervised release, and ordered to pay $155,736 in restitution to the Social Security Administration. Anzalone was arrested and charged in February 2018.

Anzalone’s mother passed away in March 2000. At the time of her death, she was receiving monthly retirement benefits from Social Security. Social Security was not advised of the death and continued to deposit benefit payments into a bank account held jointly with Anzalone. From April 2000 through April 2017, Anzalone illegally received approximately $155,736 in Social Security benefits.

United States Attorney Andrew E. Lelling 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. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.

BOSTON – A Lynn man was arrested and charged in federal court in Boston on Tuesday, March 12, 2019, in connection with money laundering and visa fraud.

Fortune Aikorogie, a/k/a Imuetinyan Aikorogie, a/k/a Fortune Aikoriogie, a/k/a Imuetinyan Aikoriogie, 32, was charged with one count of making a false statement to a bank, five counts of money laundering, and one count of visa and passport fraud. He appeared in federal court in Boston on Tuesday, March 12, 2019, and was detained pending a detention hearing.

According to the indictment, Aikorogie falsely represented himself to be someone else when he opened a checking account at TD Bank in Dracut on Sept. 28, 2016. Between Oct. 5 and Dec. 15, 2016, Aikorogie committed money laundering when two fraud victims in Texas wired a total of $75,500 into the TD Bank account. On Dec. 21, 2016, Aikorogie possessed a Zimbabwean passport and a U.S. visa, both in the same name he used to open the bank account, which he knew to be counterfeit.

The charging statute for making a false statement to a bank provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $250,000. The charging statute for money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000. The charging statute for visa/passport fraud provides for a sentence of no greater than 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 on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. State Department’s Diplomatic Security Service, Boston Field Office; and Lawrence Police Chief Roy P. Vasque made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.

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 Lynn man was charged in federal court in Boston with making a false statement on his naturalization application.

Willian Troncoso de los Santos, 29, was charged with one count of making a false statement relating to naturalization. He was arrested on March 11, 2019, and appeared in federal court in Boston the following day. He will remain in custody pending a detention hearing.

According to the charging document, on Nov. 2, 2017, Troncoso de los Santos falsely stated in an application for naturalization that he had never committed a crime or offense for which he was not arrested; that he had never been arrested, cited or detained by a law enforcement officer for any reason; and that he had never been charged with committing a crime or offense. At the time of the naturalization interview, however, Troncoso de los Santos was charged in Lynn District Court and charged in Chelsea District Court with criminal offenses. Troncoso de los Santos was naturalized in December 2017.

The charging statute for making a false statement relating to naturalization provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. State Department’s Diplomatic Security Service, Boston Field Office; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Denis C. Riordan, District Director, U.S. Citizenship and Immigration Services, District 1, made the announcement. Assistant U.S. Attorney Lindsey Weinstein of Lelling’s Major Crimes Unit 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 Lowell man was charged today in federal court in Worcester with drug and firearm offenses.

Pablo L. Rivera, 53, was indicted on one count of being a felon in possession of a firearm, one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime. Rivera was charged by complaint in February 2019 and is currently in federal custody.

According to court documents, Rivera was arrested on state charges on Feb. 8, 2019, after a motor vehicle stop in which law enforcement recovered a loaded P-38 Walther 9mm firearm, six rounds of ammunition, drug paraphernalia, and a plastic baggie containing approximately 10 grams of heroin from the vehicle Rivera was driving. Rivera is prohibited from possessing a firearm due to prior convictions punishable by more than one year in prison, including a prior conviction for being a felon in possession of a firearm.

The felon in possession charge provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000. The possession with intent to distribute charge provides for a sentence of no greater than 20 years in prison, a minimum of three years of supervised release, and a fine of $1 million. The possession of a firearm in furtherance of a drug-trafficking crime charge provides for a mandatory five year sentence to be served consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester Branch Office is prosecuting the case.

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

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

BOSTON – A Lawrence man was arrested on March 12, 2019, and charged in federal court in Boston with possession with intent to distribute 400 grams or more of fentanyl. 

Yoan Paniagua, 24, was charged with possession with intent to distribute 400 grams or more of fentanyl. He appeared in federal court in Boston on March 12, 2019, and was ordered detained pending a detention and probable cause hearing set for March 19, 2019.

On March 12, 2019, law enforcement stopped Paniagua, who was driving on Route 495 in Andover, and seized approximately 500 grams of fentanyl from his vehicle.

The charge of possession with intent to distribute 400 grams or more of fentanyl carries a minimum mandatory sentence of 10 years and up to life in prison, a minimum of five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.

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

BOSTON – A previously convicted sex offender was convicted Tuesday, March 12, 2019, by a federal jury in Boston following a five-day trial.

Christopher Saemisch, 61, was convicted of distributing child pornography to a currently incarcerated federal inmate. U.S. District Court Judge George A. O’Toole Jr. scheduled sentencing for July 9, 2019.

In 1997, Saemisch was convicted in federal court for conspiring to sexually exploit children, aiding and abetting the sexual exploitation of children, conspiring to distribute and receive child pornography, and distributing and receiving child pornography. He was also convicted by a Kansas court in 1999 for aggravated indecent liberties with a child under 14.

In April 2016, agents received information from a federal inmate that Saemisch, who at the time was living in Kansas City, Kansas, admitted to looking at and storing child pornography and wanting to travel to Europe to have sex with children. Saemisch boasted to the inmate about his access to children and his new job babysitting four children.  

During the inmate’s communications with Saemisch, they used special coded language to discuss the collection and distribution of child pornography. The inmate confirmed that he and Saemisch used the code word “antiques,” when referring to child pornography and the code word “puppies,” to refer to children. 

On May 3, 2016, agents, pretending to be the inmate, began communicating with Saemisch. During the monitored conversations on various messaging apps and web platforms, Saemisch directed the undercover agents to set-up accounts to receive and exchange child pornography. He also sent them child pornography that he had stored on various file storage sites. Saemisch was arrested on May 6, 2016, while attending an event at a nudist campsite.

Due to Saemsich’s prior child exploitation convictions, he faces a mandatory minimum sentence of 15 years and up to 40 years in prison, a minimum of five years and up to a lifetime of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and J. Ray Ormond, Northeast Regional Director of the Federal Bureau of Prisons, made the announcement. Assistance was also provided by the United States Attorney’s Office in the District of Kansas, as well as the Johnson County and Leavenworth County Sheriffs’ Departments in Kansas. The case was prosecuted by Assistant U.S. Attorneys Jordi de Llano, James Herbert and Anne Paruti of Lelling’s Criminal Division.

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 Criminal Division’s CEOS, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.

BOSTON – A Holyoke man pleaded guilty Tuesday, March 12, 2019, in federal court in Springfield in connection with making a machine gun. 

Edward V. Laboursoliere, 50, pleaded guilty to one count of knowingly possessing an unregistered firearm, one count of possessing a firearm unidentified by a serial number, and one count of making a firearm, all in violation of the National Firearms Act. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 5, 2019.

On April 8, 2018, Laboursoliere’s wife reported to law enforcement that he had been storing hazardous materials in the home. In response to the report, the home was searched, where a short-barrel rifle machine gun was recovered. Laboursoliere admitted to law enforcement that he made the machine gun during the Obama administration.

The charges of receipt and possession of an unregistered firearm, receipt and possession of a firearm unidentifiable by a serial number, and making of a firearm in violation of the National Firearms Act each provide for a maximum sentence of 10 years in prison, three years of supervised release, and a $250,000 fine. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.   

United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police; and Holyoke Police Chief Manuel Febo made the announcement. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office is prosecuting the case 

BOSTON – A Haverhill licensed practical nurse was charged on March 12, 2019, in federal court in Boston with drug tampering.

Lauren Perrin, 47, was charged by Information with one count of tampering with a consumer product, specifically the Schedule II controlled substance morphine, which is used for pain relief. 

While working as a licensed practical nurse at Maplewood Care and Rehabilitation Center in Amesbury, Perrin tampered with three bottles of morphine sulfate prescribed to a hospice patient. In an attempt to avoid detection, she replaced the extracted medication with another liquid.  Perrin’s tampering lowered the potency of the three bottles of morphine sulfate to only 4-29% of the intended potency.

The charging statute provides for a sentence of no greater than 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.

U.S. Attorney Andrew 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 former United States Postal Service mail carrier pleaded guilty on March 12, 2019, in federal court in Worcester to stealing mail that she was responsible for delivering. 

Stephanie Lacroix, 37, of Fitchburg, pleaded guilty to theft of mail by an employee of the United States Postal Service. U.S. District Judge Timothy Hillman scheduled sentencing for July 17, 2019. 

Between June and August 2018, Lacroix, who worked for the U.S. Postal Service as a mail carrier in Harvard, stole credit cards and gift cards from the mail that she was responsible for delivering. Lacroix used the cards to make purchases at local gas stations and department stores. 

The charge of theft of mail by a postal service employee provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss involved, 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; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office; and Harvard Police Chief Edward D. Denmark made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.  

BOSTON – The former owner of a now closed Fall River-based glass company pleaded guilty in federal court in Boston on March 11, 2019, to charges that he failed to report and pay over to the IRS taxes he had withheld from his company’s employees.

Moses Rapoza, 83, of Lakeville, pleaded guilty to one count of filing a false tax return and 11 counts of failing to pay over to the IRS the taxes he withheld from employee wages. U.S. District Judge Richard G. Stearns scheduled sentencing for June 13, 2019.

Rapoza was described as the former owner and operator of Global Specialty Glass Contractors Inc., a glass installation business previously located in Fall River. For every calendar quarter from 2011 through 2014, Rapoza withheld income taxes and Federal Insurance Contributions Act (FICA) taxes from wages he paid to his employees, but failed to pay those taxes to the IRS on behalf of the employees. In addition, Rapoza filed a false Form 941 tax return with the IRS, knowing that it understated the amount of wages he had paid to employees.

The charge of filing a false tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. The charge of failure to pay over taxes provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney Victor A. Wild of Lelling’s Security and Financial Fraud Unit is prosecuting the case.

BOSTON – A Dominican national residing in Lawrence pleaded guilty today in federal court in Boston to distributing a mixture of fentanyl and heroin. 

Jorge Aguasvivas, 39, pleaded guilty to one count of distribution of 40 grams or more of fentanyl and 100 grams or more of heroin. U.S. District Court Judge Indira Talwani scheduled sentencing for June 19, 2019.

On Aug. 2, 2018, during a joint federal and state law enforcement operation in Lawrence, Aguasvivas delivered 139 grams of a substance containing a mixture of fentanyl and heroin to an undercover agent.

Based on Aguasvivas’s prior criminal history, he is subject to enhanced penalties. The charge of distribution of 40 grams or more of fentanyl and 100 grams or more of heroin carries a mandatory minimum penalty of 10 years and up to life in prison, a minimum of eight years of supervised release, and a fine of up to $8 million. Aguasvivas will be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Massachusetts Attorney General Maura Healey; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.

BOSTON – A Dominican national was arrested on March 12, 2019, and charged in federal court in Boston in connection with fraudulent statements on a passport application and an application for MassHealth benefits.

Hidel Romero Sanchez, 42, a Dominican national residing in Dorchester, was charged with making a false statement on a passport application and a false statement on an application for MassHealth benefits. He appeared in federal court in Boston on March 12, 2019, and was ordered detained pending a detention hearing scheduled for March 18, 2019.

The charge of false application for a passport provides for a sentence of no greater than 10 years in prison and the charge of making a false statement in a health care matter provides for a sentence of no greater than five years in prison. Each charge provides for up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. 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 – A Brockton man was charged in federal court in Boston yesterday with illegally possessing a firearm.

Dedrick Lindsey, 36, was charged with one count of possession of a firearm by a convicted felon. Lindsey is currently in state custody and will appear in federal court at a later date.

According to court documents, Lindsey was arrested on state charges on July 19, 2018, after law enforcement found a .25 caliber revolver in his possession. Lindsey is prohibited from possessing a firearm due to previous drug convictions, all punishable by more than a year in prison. 

The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, a minimum of one year but no greater than three years of supervised release, and a fine of up to $250,000. As an armed career criminal, Lindsey is subject to a mandatory minimum sentence of 15 years in prison and no greater than life, five years of supervised release, and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Plymouth County District Attorney Timothy J. Cruz; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Elysa Wan of Lelling’s Office is prosecuting the case.

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

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

BOSTON - A Boston man was sentenced on Tuesday, March 12, 2019, in federal court in Boston for escaping from a residential re-entry center where he was finishing the remainder of a 100 month sentence.

James Jones, 45, was sentenced by U.S. District Court Chief Judge Patti Saris to 12 months and one day in prison to be served consecutive to his current federal sentence on an unrelated federal drug conviction. In December 2018, Jones pleaded guilty to one count of escape.

In April 2012, Jones was sentenced in federal court in Boston to 100 months in prison for a drug distribution conviction. On March 7, 2018, Jones was transferred from a correctional institution in New Jersey to a residential re-entry center in Boston to serve the remainder of his sentence. On July 10, 2018, Jones signed out of the re-entry center on an approved overnight work pass and was scheduled to return on July 11, 2018, but he failed to return. He was captured 77 days later by the United States Marshals Service.

United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.

 

BOSTON – Dozens of individuals involved in a nationwide conspiracy that facilitated cheating on college entrance exams and the admission of students to elite universities as purported athletic recruits were arrested by federal agents in multiple states this morning and charged in federal court in Boston. Athletic coaches from Yale, Stanford, USC, Wake Forest and Georgetown, among others, are implicated, as well as parents and exam administrators. 

William “Rick” Singer, 58, of Newport Beach, Calif., was charged with racketeering conspiracy, money laundering conspiracy and obstruction of justice. Singer owned and operated the Edge College & Career Network LLC (“The Key”) – a for-profit college counseling and preparation business – and served as the CEO of the Key Worldwide Foundation (KWF) – a non-profit corporation that he established as a purported charity.

Between approximately 2011 and February 2019, Singer allegedly conspired with dozens of parents, athletic coaches, a university athletics administrator, and others, to use bribery and other forms of fraud to secure the admission of students to colleges and universities including Yale University, Georgetown University, Stanford University, the University of Southern California, and Wake Forest University, among others. Also charged for their involvement in the scheme are 33 parents and 13 coaches and associates of Singer’s businesses, including two SAT and ACT test administrators.  

Also charged is John Vandemoer, the head sailing coach at Stanford University, Rudolph “Rudy” Meredith, the former head soccer coach at Yale University, and Mark Riddell, a counselor at a private school in Bradenton, Fla. 

The conspiracy involved 1) bribing SAT and ACT exam administrators to allow a test taker, typically Riddell, to secretly take college entrance exams in place of students or to correct the students’ answers after they had taken the exam; 2) bribing university athletic coaches and administrators—including coaches at Yale, Stanford, Georgetown, the University of Southern California, and the University of Texas—to facilitate the admission of students to elite universities under the guise of being recruited as athletes; and (3) using the façade of Singer’s charitable organization to conceal the nature and source of the bribes.   

1. College Entrance Exam Cheating Scheme

According to the charging documents, Singer facilitated cheating on the SAT and ACT exams for his clients by instructing them to seek extended time for their children on college entrance exams, which included having the children purport to have learning disabilities in order to obtain the required medical documentation. Once the extended time was granted, Singer allegedly instructed the clients to change the location of the exams to one of two test centers: a public high school in Houston, Texas, or a private college preparatory school in West Hollywood, Calif. At those test centers, Singer had established relationships with test administrators Niki Williams and Igor Dvorskiy, respectively, who accepted bribes of as much as $10,000 per test in order to facilitate the cheating scheme. Specifically, Williams and Dvorskiy allowed a third individual, typically Riddell, to take the exams in place of the students, to give the students the correct answers during the exams, or to correct the students’ answers after they completed the exams. Singer typically paid Ridell $10,000 for each student’s test. Singer’s clients paid him between $15,000 and $75,000 per test, with the payments structured as purported donations to the KWF charity. In many instances, the students taking the exams were unaware that their parents had arranged for the cheating.

1. College Recruitment Scheme

It is further alleged that throughout the conspiracy, parents paid Singer approximately $25 million to bribe coaches and university administrators to designate their children as purported athletic recruits, thereby facilitating the children’s’ admission to those universities. Singer allegedly described the scheme to his customers as a “side door,” in which the parents paid Singer under the guise of charitable donations to KWF. In turn, Singer funneled those payments to programs controlled by the athletic coaches, who then designated the children as recruited athletes – regardless of their athletic experience and abilities. Singer also made bribe payments to most of the coaches personally.

For example, during a call with one parent, Singer stated: “Okay, so, who we are…what we do is we help the wealthiest families in the U.S. get their kids into school…My families want a guarantee. So, if you said to me ‘here’s our grades, here’s our scores, here’s our ability, and we want to go to X school’ and you give me one or two schools, and then I’ll go after those schools and try to get a guarantee done.” 

As part of the scheme, Singer directed employees of The Key and the KWF to create falsified athletic “profiles” for students, which were then submitted to the universities in support of the students’ applications. The profiles included fake honors that the students purportedly received and elite teams that they purportedly played on.  In some instances, parents supplied Singer with staged photos of their children engaged in athletic activity – such as using a rowing machine or purportedly playing water polo.

1. Tax Fraud Conspiracy

Beginning around 2013, Singer allegedly agreed with certain clients to disguise bribe payments as charitable contributions to the KWF, thereby enabling clients to deduct the bribes from their federal income taxes. Specifically, Singer allegedly instructed clients to make payments to the KWF in return for facilitating their children’s admission to a chosen university. Singer used a portion of that money to bribe university athletic coaches to designate the children as student athletes. Thereafter, Masera or another KWF employee mailed letters from the KWF to the clients expressing thanks for their purported charitable contributions. The letter stated: “Your generosity will allow us to move forward with our plans to provide educational and self-enrichment programs to disadvantaged youth,” and falsely indicated that “no good or services were exchanged” for the donations. Many clients then filed personal tax returns that falsely reported the payment to the KWF as charitable donations.

The charge of racketeering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater and restitution. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, up to three years of supervised release, and a fine of not more than $500,000 or twice the value of the property involved in the money laundering. The charge of conspiracy to defraud the United States provides for a sentence of no greater than five years in prison, up to three years of supervised release and a fine of $250,000. The charge of obstruction of justice provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charges of conspiracy to commit mail fraud and honest services mail fraud, and of conspiracy to commit wire fraud and honest services wire fraud, provide for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of 250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud 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

1. William Rick Singer, 58, of Newport Beach, Calif., owner of the Edge College & Career Network and CEO of the Key Worldwide Foundation, was charged in an Information with racketeering conspiracy, money laundering conspiracy, conspiracy to defraud the United States, and obstruction of justice.  He is scheduled to plead guilty in Boston before U.S. District Court Judge Rya W. Zobel on March 12, 2019, at 2:30 p.m.;
2. Mark Riddell, 36, of Palmetto, Fla., was charged in an Information with conspiracy to commit mail fraud and honest services mail fraud as well as conspiracy to commit money laundering;
3. Rudolph “Rudy” Meredith, 51, of Madison, Conn., the former head women’s soccer coach at Yale University, was charged in an Information with conspiracy to commit wire fraud and honest services wire fraud as well as honest services wire fraud;  
4. John Vandemoer, 41, of Stanford, Calif., the former sailing coach at Stanford University, was charged in an Information with racketeering conspiracy and is expected to plead guilty in Boston before U.S. District Court Judge Rya W. Zobel on March 12, 2019, at 3:00 p.m.;
5. David Sidoo, 59, of Vancouver, Canada, was charged in an indictment with conspiracy to commit mail and wire fraud. Sidoo was arrested on Friday, March 8th in San Jose, Calif., and appeared in U.S. District Court for the Northern District of California yesterday. A date for his initial appearance in federal court in Boston has not yet been scheduled.  

The following defendants were charged in an indictment with racketeering conspiracy:

1. Igor Dvorskiy, 52, of Sherman Oaks, Calif., director of a private elementary and high school in Los Angeles and a test administrator for the College Board and ACT;
2. Gordon Ernst, 52, of Chevy Chase, Md., former head coach of men and women’s tennis at Georgetown University;
3. William Ferguson, 48, of Winston-Salem, N.C., former women’s volleyball coach at Wake Forest University;
4. Martin Fox, 62, of Houston, Texas, president of a private tennis academy in Houston;
5. Donna Heinel, 57, of Long Beach, Calif., the senior associate athletic director at the University of Southern California;
6. Laura Janke, 36, of North Hollywood, Calif., former assistant coach of women’s soccer at the University of Southern California;
7. Ali Khoroshahin, 49, of Fountain Valley, Calif., former head coach of women’s soccer at the University of Southern California;
8. Steven Masera, 69, of Folsom, Calif., accountant and financial officer for the Edge College & Career Network and the Key Worldwide Foundation;
9. Jorge Salcedo, 46, of Los Angeles, Calif., former head coach of men’s soccer at the University of California at Los Angeles;
10. Mikaela Sanford, 32, of Folsom, Calif., employee of the Edge College & Career Network and the Key Worldwide Foundation;
11. Jovan Vavic, 57, of Rancho Palos Verdes, Calif., former water polo coach at the University of Southern California; and
12. Niki Williams, 44, of Houston, Texas, assistant teacher at a Houston high school and test administrator for the College Board and ACT.

The following defendant was charged in a criminal complaint with conspiracy to commit mail fraud and honest services mail fraud:

1. Michael Center, 54, of Austin Texas, head coach of men’s tennis at the University of Texas at Austin

The following defendants were charged in a criminal complaint with conspiracy to commit mail and wire fraud:

1. Gregory Abbott, 68, of New York, N.Y., the founder and chairman of a food and beverage packaging company;
2. Marcia Abbott, 59, of New York, N.Y.;
3. Gamal Abdelaziz, 62, of Las Vegas, Nev., the former senior executive of a resort and casino operator in Macau, China;
4. Diane Blake, 55, of San Francisco, Calif., an executive at a retail merchandising firm;
5. Todd Blake, 53, of San Francisco, Calif., an entrepreneur and investor;
6. Jane Buckingham, 50, of Beverly Hills, Calif., the CEO of a boutique marketing company;
7. Gordon Caplan, 52, of Greenwich, Conn., co-chairman of an international law firm based in New York City;
8. I-Hin “Joey” Chen, 64, of Newport Beach, Calif., operates a provider of warehousing and related services for the shipping industry;
9. Amy Colburn, 50, of Palo Alto, Calif.;
10. Gregory Colburn, 62, of Palo Alto, Calif.;
11. Robert Flaxman, 62, of Laguna Beach, Calif., founder and CEO of real estate development firm;
12. Mossimo Giannulli, 55, of Los Angeles, Calif., fashion designer;
13. Elizabeth Henriquez, 56, of Atherton, Calif.;
14. Manuel Henriquez, 55, of Atherton, Calif., founder, chairman and CEO of a publicly traded specialty finance company;
15. Douglas Hodge, 61, of Laguna Beach, Calif., former CEO of investment management company;
16. Felicity Huffman, 56, of Los Angeles, Calif., an actress;
17. Agustin Huneeus Jr., 53, of San Francisco, Calif., owner of wine vineyards;
18. Bruce Isackson, 61, of Hillsborough, Calif., president of a real estate development firm;
19. Davina Isackson, 55, of Hillsborough, Calif.;
20. Michelle Janavs, 48, of Newport Coast, Calif., former executive of a large food manufacturer; 
21. Elisabeth Kimmel, 54, of Las Vegas, Nev., owner and president of a media company;
22. Marjorie Klapper, 50, of Menlo Park, Calif., co-owner of jewelry business;
23. Lori Loughlin, 54, of Los Angeles, Calif., an actress;
24. Toby MacFarlane, 56, of Del Mar, Calif., former senior executive at a title insurance company;
25. William McGlashan Jr., 55, of Mill Valley, Calif., senior executive at a global equity firm;
26. Marci Palatella, 63, of Healdsburg, Calif., CEO of a liquor distribution company;
27. Peter Jan Sartorio, 53, of Menlo Park, Calif., packaged food entrepreneur;
28. Stephen Semprevivo, 53, of Los Angeles, Calif., executive at privately held provider of outsourced sales teams;
29. Devin Sloane, 53, of Los Angeles, Calif., founder and CEO of provider of drinking and wastewater systems;
30. John Wilson, 59, of Hyannis Port, Mass., founder and CEO of private equity and real estate development firm;
31. Homayoun Zadeh, 57, of Calabasas, Calif., an associate professor of dentistry; and
32. Robert Zangrillo, 52, of Miami, Fla., founder and CEO of private investment firm.

 

BOSTON – A Boston man was arrested today and charged in federal court in Boston for surreptitiously filming boys in the restrooms at Boston Latin School (BLS).

Eric Tran Thai, 36, was charged with five counts of sexual exploitation of children. He will appear in federal court in Boston at 3:30 p.m. today.

According to court documents, on Feb. 6 and Feb. 27, 2018, two separate Boston College students reported to the police that they had been videotaped without their knowledge or consent while they were using the men’s restrooms on the Boston College campus. Following the Feb. 27, 2018, report, police located and spoke with Thai, who was then arrested on state charges in Middlesex County Superior Court.

It is alleged that while speaking with police, Thai admitted to “taking some pictures” of a man in the stall next to him without the man’s consent. He further admitted to engaging in such activity for about a year. Thai was placed under arrest on state charges and his bag was subsequently searched; in it, police found several covert camera devices, including faux smoke detectors, a water bottle containing a small cube recording device, and a pair of sunglasses outfitted with a built-in camera.

During a search of Thai’s home on March 1, 2018, law enforcement seized approximately 26 computer hard drives, 20 thumb drives, 27 covert and regular cameras, 14 computers, iPads, and cell phones, and multiple SD and Sim cards. During forensic analysis of the recovered items, investigators found several folders labeled: BU, MIT, Harvard, Northeastern, Bunker Hill, Boston Latin High School, and several different malls, airports, and foreign country locations. Given the amount of data seized by investigators, forensic analysis is ongoing.

It is alleged that the videos contained in folders labeled “Boston Latin High School” contained approximately 45 surreptitiously-recorded videos of male students in various states of dress using the urinals and stalls in a Boston Latin High School boys’ bathroom. The videos appear to have been created on approximately 10 separate dates between February and December 2017.

In general, the videos show Thai sitting in a bathroom stall at Boston Latin High School recording individuals in adjacent stalls or at the urinals through various secret recording methods. In some videos, Thai appears to hold a camera over the top of the partition between the bathroom stalls and videotaping from overhead. In other instances, he appears to hide a small camera inside of his backpack, place the backpack on the bathroom floor and videotape individuals in the adjacent bathroom stall from under the stall’s partition. While recording, it appears that Thai would simultaneously view what the camera was recording on a cellphone or a tablet device in his possession. Based on this evidence, Thai was charged with five counts of sexual exploitation of children in violation of federal law.

The defendant also allegedly surreptitiously video recorded individuals in numerous public restroom locations throughout greater Boston and elsewhere.

Members of the public who have questions, concerns, or information about this case should contact the U.S. Attorney’s Office at 617-748-3274. 

Each charge of sexual exploitation of children provides for a mandatory minimum 15 years and up to 30 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Middlesex District Attorney Marian T. Ryan; Boston Police Commissioner William G. Gross; and Boston College Police Chief William B. Evans made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of his Major Crimes Unit, is prosecuting the case.

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

The details contained in the 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 Sutton man was sentenced today in federal court in Worcester in connection with a large scale marijuana grow operation.

Eric Vallee, 38, was sentenced by U.S. District Court Judge Timothy S. Hillman to six months in prison and two years of supervised release. In June 2018, Vallee pleaded guilty to two counts of manufacturing marijuana and possessing marijuana with intent to distribute.

A search of Vallee’s home in Auburn, Mass., where he maintained a large, commercial-style marijuana grow operation, resulted in the seizure of more than 100 marijuana plants as well as approximately seven pounds of marijuana packaged for distribution, a cash-counting machine, and approximately $13,000. Vallee then moved to a house in Sutton, Mass. where he continued to oversee a large, commercial-style marijuana grow operation. A search of the Sutton home resulted in the seizure of 55 marijuana plants as well as approximately seven pounds of marijuana packaged for distribution and a cash-counting machine. 

United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office, made the announcement today. The Internal Revenue Service’s Criminal Investigation in Boston and the Auburn and Sutton Police Departments provided valuable assistance with the investigation. Assistant U.S. Attorney Bill Abely of Lelling’s Criminal Division prosecuted the case.

BOSTON – A Springfield man was charged in federal court in Springfield yesterday with failing to register as a sex offender.

Ruben Pagan, 48, was charged with one count of failing to register as a sex offender. He is currently in state custody on unrelated charges.

According to the charging document, Pagan, having been convicted of a sex offense, engaged in interstate travel and failed to register, as required by law, as a sex offender between October 2017 and March 2018.

Pagan faces no greater than 10 years in prison, a lifetime of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office 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.

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.

BOSTON – A Georgia man was sentenced yesterday in federal district court in Boston for his role in a bogus advance fee Jamaican lottery scheme in which victims were defrauded of more than $1 million.    

Peter Anthony Chin Jr., 35, of Atlanta, Ga., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 57 months in prison, two years of supervised release, and ordered to pay $1,139,828 in restitution. In December 2018, Chin pleaded guilty to one count of conspiracy to commit mail and wire fraud.

From 2012 to 2017, Chin was part of a scheme that targeted elderly individuals throughout the United States, including Massachusetts. The victms were informed via phone, email and mail that they had won millions of dollars in a lottery, but that they had to pay the taxes on their purported winnings before the funds could be released. Chin’s co-conspirators directed the victims to mail or wire funds to Chin or to his associates. Chin kept a portion of the funds for himself and then distributed the rest as directed by his co-conspirators, including sending significant amounts to Jamaica.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division, made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Criminal Division prosecuted the case.

BOSTON - A Dominican national was sentenced yesterday in federal court in Boston for Social Security fraud.

Luis Alberto Fernandez Fernandez, 28, a Dominican national residing in Salem with legal permanent resident status, was sentenced by U.S. District Court Judge Allison D. Burroughs to time served (12 days) and one year of supervised release. In November 2018, Fernandez Fernandez pleaded guilty to one count of false representation of a Social Security number. He was arrested in July 2018 as part of a law enforcement sweep aimed at detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes. 

In September 2016, before he became a lawful permanent resident, Fernandez Fernandez applied for a Massachusetts ID card using the name, Social Security number, and date of birth of a U.S. citizen from Puerto Rico. His application was denied.

United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office, made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit prosecuted the case.

BOSTON – A Boston man pleaded guilty yesterday in federal court in Boston to money laundering.

Juan Peguero, 29, pleaded guilty to two counts of money laundering. U.S. District Court Judge William G. Young scheduled sentencing for May 29, 2019. Peguero was charged in August 2018 and was released on conditions.

On two occasions in 2015, Peguero transferred almost $500,000 worth of drug proceeds - over $398,000 in April and $90,000 in June.   

The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the laundered funds. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Lauren A. Graber of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case. 

BOSTON – A former investment advisor was sentenced yesterday in federal court in Boston for deceiving his former clients concerning the management of their retirement savings as well as lying to the U.S. Securities and Exchange Commission (SEC).

Richard G. Cody, 44, of Jacksonville, Fla., was sentenced by U.S. District Court Judge F. Dennis Saylor IV to two years in prison and two years of supervised release. Cody was also ordered to pay a fine of $30,000. In November 2018, Cody pleaded guilty to one count of violating the Investment Advisors Act of 1940 and two counts of making a false declaration in a court proceeding.

From May 2005 to August 2016, Cody acted as an investment advisor and managed the retirement savings of three victims, including two in Massachusetts. Cody falsely assured the victims that their retirement savings were secure, when in fact he knew they were not. Contrary to his fraudulent assurances, by 2014, the total value of their retirement savings had substantially diminished, and the retirement savings of two victims were entirely gone. In order to conceal these losses, Cody provided the victims with fraudulent account statements and tax documents. In addition, Cody failed to inform his victims that regulators had suspended him in 2013 from acting as an investment advisor.

In addition, Cody lied to the SEC during a March 2017 sworn deposition in connection with a civil enforcement action the SEC had filed against him in December 2016. Cody made false declarations regarding fraudulent documents that he denied giving to two victims of the scheme.

United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office would also like to acknowledge the assistance of the U.S. Securities and Exchange Commission. Assistant U.S. Attorney Neil J. Gallagher Jr. and Elysa Wan of Lelling’s Criminal Division is prosecuting the case.

BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for her role in a widespread heroin and fentanyl conspiracy. The defendant had previously failed to appear for trial after being released on unsecured bond.

Isis Y Lugo-Guerrero, 46, a Dominican national residing in Dorchester, was sentenced by U.S. District Court Judge Indira Talwani to two years in prison and three years of supervised release. Lugo-Guerrero will be subject to deportation upon completion of her sentence. In November 2018, Lugo-Guerrero pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin, fentanyl and cocaine.

Lugo-Guerrero was arrested on Feb. 14, 2017, and released from custody on March 2, 2017, on $10,000 unsecured bond. The first day of her week-long trial was scheduled to begin on Sept. 10, 2018, but she failed to appear in court, and a warrant was issued for her arrest. She was arrested on Oct. 3, 2018.

Lugo-Guerrero is the sister of Jose Antonio Lugo-Guerrero, the convicted leader of a Boston-based heroin and fentanyl trafficking organization. Isis Lugo-Guerrero conspired with her brother and others by regularly obtaining heroin and cocaine from him and by supplying him with substances to cut his drugs to make additional profit.

In December 2018, Jose Antonio Lugo-Guerrero was sentenced to 16 years in federal prison after pleading guilty to one count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin, more than 400 grams of fentanyl, and more than five kilograms of cocaine, and one count of possession of a firearm in furtherance of a drug trafficking crime.

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Fall River Police Chief Albert F. Dupere; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William G. Gross; Bridgewater Police Chief Christopher D. Delmonte; and Bristol Country District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Ted Heinrich of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.

 

BOSTON – A Worcester man was sentenced yesterday in federal court in Worcester for stealing more than $230,000 in government benefits.

David Brunell, 57, was sentenced by U.S. District Court Judge Timothy S. Hillman to three years of supervised release, with the first 60 days to be spent in a residential re-entry center, followed by three months of home confinement, and ordered to pay $234,177 in restitution. Brunell pleaded guilty in September 2018 to one count of theft of government money.

Between June 2000 and June 2017, the Social Security Administration deposited approximately $234,000 in retirement benefits intended for Brunell’s father into a bank account controlled by Brunell after Brunell’s father had died. Brunell used the funds for various personal expenditures, such as mortgage payments.

United States Attorney Andrew E. Lelling 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. Assistant U.S. Attorney Bill Abely of Lelling’s Criminal Division prosecuted the case.

BOSTON – A Lexington man was sentenced yesterday in federal court in Boston in connection with his role in a long-running interstate prostitution ring. 

Kyung Song, 52, was sentenced by U.S District Court Judge Douglas P. Woodlock to one year of home confinement. In July 2018, Song agreed to plead guilty to one count of conspiracy to engage in money laundering. On March 15, 2018, Kim was charged and arrested with co-defendants Yoon I. Kim, 36, of Haymarket, Va.; Taehee Kim, a/k/a “Hyunsook Kim,” 46, of Haymarket, Va.; Susan Bashir, a/k/a “Susan Redmon,” a/k/a “Susan Redmond,” 41, of Stone Mountain, Ga.; and Jineok Kim, 38, of Watertown, Mass.

According to court documents, from December 2017 to March 2018, Song participated in an interstate prostitution network that maintained multiple brothels in high-end apartments in Cambridge, Mass.; Atlanta, Ga.; and eastern Virginia. They advertised appointments with Asian women on various websites. The women advertised on the websites were moved from city to city within the network, working as prostitutes for the organization.

Song transported women working from brothel locations in Cambridge. Song also retrieved cash proceeds from each of the Cambridge brothel locations and allegedly laundered the proceeds according to Taehee Kim’s instructions, which included depositing the money into accounts belonging to Taehee Kim or sending postal money orders to Taehee Kim.

In November 2018, Yoon Kim and his wife, Taehee Kim, pleaded guilty and are scheduled to be sentenced on April 24, 2019. Susan Bashir and Jineok Kim agreed to plead guilty and are pending sentencing.

United States Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; and Cambridge Police Commissioner Branville G. Bard Jr. made the announcement today. Assistant U.S. Attorneys David J. D’Addio and Amy Harman Burkart of Lelling’s Civil Rights Enforcement Team prosecuted the case. 

 

BOSTON – An inmate pleaded guilty today in federal court in Boston in connection with a murder-for-hire scheme.

Mason Stickney, 21, of Byfield, pleaded guilty to three counts of using a facility of interstate commerce in the commission of murder-for-hire. U.S. District Court Judge Denise J. Casper scheduled sentencing for June 13, 2019. Stickney was indicted in November 2017; he is currently in state custody on unrelated charges.

In October 2017, Stickney, who was in custody at the Essex County House of Corrections, approached a fellow inmate and solicited his assistance in the murders of a police officer, a restaurateur from New Hampshire and a student. The fellow inmate reported Stickney’s solicitation to authorities. Thereafter, at the request of investigators, the inmate provided Stickney with the phone number of a would-be hitman, who was actually an undercover agent.

In recorded conversations between Nov. 3 and Nov. 8, 2017, both on the phone and in person at the jail, Stickney described to the undercover agent the individuals he wanted killed and how he wanted the murders committed. Stickney promised to pay the undercover agent $10,000 upon his release from jail, as well as to “get rid of three people for you guys.”

Each charge provides for a sentence of no greater than 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 on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Essex County District Attorney Jonathan Blodgett; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Essex County Sheriff Kevin F. Coppinger made the announcement. Assistant U.S. Attorney Robert Richardson of Lelling’s Major Crimes Unit is prosecuting the case.

BOSTON – A Harwich man was sentenced yesterday in federal court in Boston for fentanyl conspiracy.

Dean Viprino, 46, was sentenced by U.S. District Court Judge Douglas P. Woodlock to eight years in prison and five years of supervised release. In December 2017, Viprino pleaded guilty to one count of conspiracy to possess with intent to distribute 40 grams or more of fentanyl. Viprino is currently in state custody on an unrelated matter.

Viprino was part of a drug trafficking organization that distributed large quantities of fentanyl, cocaine and heroin on Cape Cod. From April 2017 through August 2017, investigators intercepted phone calls and text messages from this drug organization. Wiretap interceptions, physical surveillance, and drug seizures demonstrated that Viprino had been purchasing fentanyl from this drug trafficking organization for personal use and re-distribution. Other members of the drug trafficking organization are either pending trial or awaiting sentencing.

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Massachusetts State Police Superintendent Colonel Kerry Gilpin made the announcement. Assistant U.S. Attorneys Eric Rosen, Alathea Porter, and Philip Cheng of Lelling’s Criminal Division prosecuted the case.

BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for failing to appear for a sentencing hearing in 1997 following a conviction for passport fraud. He was also sentenced yesterday for the passport fraud.

Luis Alberto Solano-Pimental, 51, was sentenced by U.S. District Court Judge Mark L. Wolf to 16 months in prison and three years of supervised release. Solano-Pimental will be subject to deportation proceedings upon completion of his sentence.

In 1997, Solano-Pimental pleaded guilty to passport fraud in federal court in Boston, but failed to appear on his scheduled sentencing date. For more than 20 years, Solano-Pimental remained a fugitive until he was arrested in Warwick, R.I., on March 6, 2018; he has been detained since. He was then charged with failing to appear for the 1997 sentencing hearing, which he pleaded guilty to in May 2018.

United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; John Gibbons, United States Marshal for the District of Massachusetts; and Jamie A. Hainsworth, United State Marshal for the District of Rhode Island, made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit prosecuted the case.

BOSTON – A former Roslindale Post Office employee was sentenced today in federal court in Boston in connection with embezzling mail.

Megan Hawes, 29, of Roslindale, was sentenced by U.S. District Court Judge Denise J. Casper to two years of supervised release and 80 hours of community service. In December 2018, Hawes pleaded guilty to one count of theft of mail matter by a Postal Service employee.

From September 2016 to May 2018, Hawes was employed by the United States Postal Service (USPS) as a postal carrier assigned to Roslindale. While in that capacity, between approximately March 2017 and May 10, 2018, Hawes embezzled and stole more than 9,700 pieces of U.S. mail that she never delivered. She sifted through and stole the contents of some of the mail that contained cash and gift cards. On May 10, 2018, USPS was notified that there was a car at an impound lot in Weymouth that contained voluminous amounts of undelivered and opened mail. USPS determined Hawes had used that car while in her postal carrier capacity. That same day, USPS interviewed Hawes, who ultimately admitted that she had been stealing mail and not delivering it. She also admitted to opening some of the stolen parcels looking for cash and gift cards.

United States Attorney Andrew E. Lelling; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office; and Weymouth Police Chief Richard C. Grimes made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.

BOSTON – A Malden man was sentenced yesterday in federal court in Boston for his role in a wide-ranging conspiracy to defraud his employer, a large facilities services company with offices in the Greater Boston area.

Lou Amaral, 52, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 30  months in prison and two years of supervised release, and restitution to be determined at a later date. In July 2018, Amaral pleaded guilty to one count of conspiracy to commit honest services mail fraud, one count of conspiracy to commit wire fraud, one count of money laundering, and one count of tax evasion. Co-defendant Vence Pires, 58, also of Malden, was sentenced on Feb. 28, 2019, to one year and one day in prison after pleading guilty to one count of conspiracy to commit wire fraud.

Amaral and Pires worked for the same facilities services company in the Greater Boston area. Amaral was the supervisor of the Special Services Department, and as such, he had the ability to hire employees and to contract with third-parties to provide temporary labor. Pires was an account manager who worked for Amaral in Special Services. Amaral first began taking bribes from a temporary labor company in order to steer contracts to that company. In 2014, Amaral opened up his own temporary labor company and, with the help of Pires, awarded himself the temporary labor contracts. Through this scheme, Amaral made approximately $10 million in revenue over a three-year period, resulting in a net gain to him of approximately $2 million.

United States Attorney Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today.  Assistant U.S. Attorney Eric Rosen of Lelling’s Securities and Financial Crimes Unit prosecuted the case.

BOSTON – The United States filed a civil action to prevent an unlicensed radio station from operating in Worcester.

According to the complaint, Vasco Oburoni and Christian Praise International Church have been operating a radio broadcast station in Worcester, on frequency 97.1 MHz, without a license from the Federal Communications Commission (FCC). The complaint alleges that Oburoni and the Church previously operated an unlicensed radio station on frequency 102.3 MHz.

The FCC issued multiple warnings to the illegal operators and issued a forfeiture order in the amount of $15,000 against Oburoni for repeated violation of the Communications Act of 1934. Oburoni agreed to a payment plan, but later began broadcasting again without a license on a different frequency. The FCC has received complaints, including from a licensed broadcaster, that the unlicensed station is interfering with radio signals.

“It is a potential hazard to public safety for pirate radio stations to broadcast illegally and interfere with critical radio communication,” said United States Attorney Andrew E. Lelling. “Like any member of the community, the operators of these illegal stations could have applied for radio licenses and operated their stations in compliance with the law. When they choose to operate illegally, and continue those operations after being warned multiple times, action must be taken.”

“This groundbreaking step, for an injunction to stop a pirate radio operator’s illegal activities, is part of our continued efforts to combat illegal broadcasting,” said Rosemary Harold, Chief of the FCC's Enforcement Bureau. “As we work with our law enforcement colleagues to use every tool in our toolbox to combat pirate radio, I welcome the Justice Department's renewed use of its Section 401(a) injunction authority. Along with fines, equipment seizures, and warnings, this action underlines our continued interest in combatting this serious problem. We sincerely thank the Massachusetts U.S. Attorney's Office and commend the outstanding work of our hardworking FCC Field agents.”

The Communications Act of 1934 prohibits the operation of radio broadcasting equipment above certain low-intensity thresholds without a license issued by the FCC. The Act authorizes the Department of Justice, at the request of the FCC, to seek an injunction ordering compliance with the Communications Act against operators broadcasting without an FCC license. The number of available radio frequencies is limited, and unlicensed broadcasting can interfere with the broadcasting of legitimate licensed radio stations, potentially causing chaos in the radio spectrum.

U.S. Attorney Lelling and FCC Enforcement Chief Harold made the announcement today. Assistant U.S. Attorney Carol E. Head of Lelling’s Asset Recovery Unit is handling the matter. 

BOSTON – Louis Coleman III has been charged today in federal court in Boston with the kidnapping of Jassy Correia, who had been missing since Feb. 24, 2019.

Coleman, 32, of Providence, R.I., has been charged with one count of kidnapping, resulting in death. Coleman was arrested on Thursday, Feb. 28, 2019, in Delaware and will appear in federal court in Delaware on Monday, March 4 at a time to be determined. He will be transferred to Massachusetts at a later date.

According to the charging document, after learning of the disappearance of Correia, law enforcement reviewed surveillance tape from outside of the Venu nightclub, the last place Correia had been seen by her friends, which showed Correia leaving the area and entering a vehicle with a man later identified as Coleman. Surveillance footage from Coleman’s Providence, R.I., apartment building showed Coleman, at about 4:15 a.m. on Sunday, Feb. 24, 2019, parking and exiting the vehicle, and then returning a short time later carrying a blanket. He then walked from the car to the front of the building carrying a body with long hair and clothing consistent with the description of Ms. Correia. Once he entered the building, surveillance video showed Coleman dropping the victim on the floor and dragging her towards the elevator, and subsequently towards his apartment unit. The victim was not moving and her body was limp.

It is alleged that on Feb. 26, 2019, surveillance video from the defendant’s apartment building showed Coleman enter the apartment building with Walmart shopping bags. Law enforcement subsequently obtained video surveillance and a receipt from a Walmart in Providence, R.I., that revealed Coleman had purchased three Tyvek suits, duct tape, two candles, electrical tape, one mask, surgical gloves, two pairs of safety goggles, an odor respirator and CLN release bleach bath.

At approximately 9:58 p.m. on Feb. 27, 2019, Coleman is seen on video surveillance entering the apartment building with what appeared to be a new, large suitcase. At 1:15 a.m., on Feb. 28, 2019, Coleman is seen in the video wheeling the suitcase away from his apartment unit towards the elevator, eventually out of the building and into the parking lot where his vehicle was. Coleman appeared to have difficulty lifting the suitcase into the trunk of his car.

Additional surveillance video showed Coleman on several occasions exiting his apartment building with other items, including trash bags, cardboard boxes, a bottle of bleach, a laptop case, a computer tower and a small duffle bag.

Later in the day on Feb. 28, 2019, a search warrant was executed at Coleman’s apartment, where two packages of hooded coveralls and two respirator masks were recovered. A sofa with four large cushions, one of which was missing a cover, was also observed. In a dumpster outside of the apartment complex, white trash bags, a bag containing plastic sheets, men’s jeans with bleach stains and a belt, a white nylon hooded coverall, an empty box of baking soda, clear safety goggles, a respirator mask, duct tape packaging, rubbing alcohol, Walmart bags, used plastic gloves, an empty package from a car air freshener, three empty packages of purifying charcoal and a sponge were recovered.

On the afternoon of Feb. 28, 2019, Coleman’s vehicle was stopped by Delaware authorities on I-95 South near Wilmington, Delaware. Officers ordered Coleman out of the vehicle and asked him if anyone else was in the vehicle with him. It is alleged that Coleman stated words to the effect: “She’s in the trunk.”

Officers discovered the victim’s body in the trunk of Coleman’s vehicle, wrapped in a sofa cushion cover, which was inside of a black trash bag, inside of a large suitcase that matches the suitcase Coleman was observed bringing into his apartment on Feb. 27, 2019. The victim had significant bruising, a bloodied face, was bound with gray duct tape, and was covered in what is believed to be baking soda.

A duffle bag, a pair of new long-handled loppers, plastic garbage bags, clothing, a red plastic gas container, a green butane lighter, black gloves, charcoal air purifiers, air fresheners, tinted safety glasses, plastic Walmart bags, work towels, cloth work-gloves, a new set of DeWalt pliers, a laptop, a computer hard-drive/tower, and disinfectant wipes were also recovered in Coleman’s vehicle. 

It is further alleged that photographs of the defendant’s vehicle depict a windshield that is cracked in two locations on the passenger side and a white substance, believed to be baking soda, in the trunk of the vehicle.

Coleman was taken into custody and transported to a Delaware State Police barracks. There, it was noted that Coleman had a large bandage on the right side of his face. When asked about it, he allegedly replied, “It’s from the girl.”

The charge of kidnapping resulting in death provides for a sentence of death or life in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Boston Police Commissioner William G. Gross; 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; Suffolk County District Attorney Rachael Rollins; Colonel Nathaniel McQueen Jr., Delaware State Police; and Colonel Hugh T. Clements Jr., Chief of Police, Providence Police Department, made the announcement today. The U.S. Attorney’s Office would also like to acknowledge the cooperation and assistance of Rhode Island Attorney General Peter F. Neronha; United States Attorney David C. Weiss, District of Delaware; and the Massachusetts State Police. Assistant U.S. Attorneys Kenneth G. Shine and Robert Richardson of Lelling’s Major Crimes Unit are prosecuting the case.

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

BOSTON – A dual U.S.-Irish citizen was sentenced yesterday in federal court in Boston on charges arising out of a multi-year mortgage fraud scheme.

Patrick Lee, 46, formerly of Canton and Easton, was sentenced by Chief U.S. District Court Judge Patti B. Saris to four years in prison, three years of supervised release, and ordered to pay restitution of $842,552 to victim lenders. Lee will also be subject to asset forfeiture, in an amount to be determined later.

In November 2018, Lee pleaded guilty to wire fraud and making an unlawful monetary transaction. He was extradited from Ireland in 2017 to face the charges, marking the first extradition from Ireland to the United States since 2012.

Between July 2005 and May 2007, Lee engaged with others in a mortgage fraud scheme. Specifically, Lee or a relative bought five multi-family buildings in Dorchester and South Boston, financed those purchases with fraudulently obtained mortgage loans, and quickly converted the buildings to condominiums which facilitated the resale of individual units in the buildings to straw buyers. The straw buyers were recruited for this purpose and their purchases were financed with fraudulently obtained mortgage loans. The straw buyers were assured that they would not have to put any money down or pay the mortgages, and that they would get a fee at closing and/or a share of the profits when the properties were sold. The loans were funded with interstate wire transfers from the mortgage lenders to the closing attorneys’ conveyancing accounts, and the proceeds were then distributed to Lee and/or a family member, the recruiters, and others involved in the scheme. According to the government, mortgage lenders suffered losses of about $3.9 million. Many of the lenders are no longer in business or no longer hold the fraudulent loans at issue.

United States Attorney Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorneys Sandra S. Bower and Christine Wichers of Lelling’s Criminal Division prosecuted the case.

 

BOSTON – The mother of an MCI-Cedar Junction inmate pleaded guilty today in federal court in Boston in connection with smuggling drugs into the facility.    

Margaret Guillemette, 58, pleaded guilty to one count of conspiracy to distribute Suboxone and Alprazolam. In September 2018, she was charged along with Chad Connors, 42, and William Guillemette, 39, both inmates at Massachusetts Correctional Institute – Cedar Junction (MCI-CJ) in South Walpole, and Lisa Guillemette, 42, also of Fall River. U.S. District Court Judge Indira Talwani scheduled Margaret Guillemette’s sentencing for May 30, 2019.

According to the charging documents, Chad Connors and William Guillemette were inmates housed at MCI-CJ’s Departmental Disciplinary Unit (DDU). It is alleged that Connors was involved in a romantic relationship with a nurse assigned to the DDU. At Connors’ request, the nurse agreed to smuggle contraband, including controlled substances, into MCI-CJ. In order to do this, the nurse opened two P.O. Boxes through a third party. Connors sent letters and money to the nurse at these P.O. Boxes and, at William Guillemette’s direction, his wife, Lisa, and mother, Margaret, obtained and sent Suboxone and Alprazolam to the P.O. Boxes. The nurse subsequently smuggled the drugs into the DDU and delivered them to Connors. It is alleged that Connors and William Guillemette distributed the drugs to other inmates, who sent checks to Lisa and Margaret Guillemette as payment for the drugs. Suboxone and Alprazolam are Schedule III and Schedule IV controlled substances, respectively.  

The nurse was previously charged and pleaded guilty to one count of conspiracy to distribute Suboxone and Alprazolam.

The charge of conspiracy to distribute Suboxone and Alprazolam provide for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $500,000 and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines.  

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today.

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

BOSTON – A Dominican national was sentenced yesterday in federal court in Worcester for his role in a cocaine conspiracy.

Ricardo Ortega Vasquez, 42, a Dominican national residing in New York City, was sentenced by U.S. District Court Judge Timothy S. Hillman to time-served (approximately 22 months) and three years of supervised release. Ortega Vasquez will be subject to deportation proceedings. In March 2018, Ortega Vasquez pleaded guilty to one count of conspiring to distribute cocaine and to possess cocaine with the intent to distribute. Ortega Vasquez and four co-defendants, Vito Nuzzolilo and Kristin Little, both of Worcester; and Thomas Walker and Melissa Rock, both of Pemaquid, Maine, were indicted in July 2017.

According to court documents, Nuzzolilo ordered sizable quantities of heroin and cocaine from a New York-based supplier, and Ortega Vasquez transported cocaine from New York City to Nuzzolilo on behalf of the New York-based source of supply. On May 7, 2017, law enforcement seized more than a quarter-kilogram of cocaine from Ortega Vasquez in Worcester, shortly after Ortega Vasquez had taken a bus from New York City to Worcester.

In November 2017, Danielle Lloyd, 44, of Worcester, pleaded guilty to her role in this conspiracy and admitted to facilitating the shipment of heroin and cocaine from New York to Worcester on May 7, 2017, and another on April 25, 2017. Lloyd was sentenced by Judge Hillman on March 21, 2018, to time-served.

In November 2018, Walker was sentenced to 30 months in prison; in September 2018, Rock was sentenced to one year and one day in prison; and in June 2018, Little was sentenced to 30 months in prison. Nuzzolilo has pleaded not guilty and is awaiting trial.

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Massachusetts Attorney General Maura Healey made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Criminal Division prosecuted the case.

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

Boston – A Dominican national residing in Boston was indicted yesterday in federal court in Boston on charges including identity theft.

Altagracia Baez Guerrero, 26, was indicted on one count of false representation of a Social Security number and one count of aggravated identity theft. Baez Guerrero has been in federal immigration custody since Feb. 11, 2019.

According to the indictment, on March 14, 2016, Baez Guerrero falsely represented that a Social Security number was hers in an application for a learner’s permit at the Massachusetts Registry of Motor Vehicles.

The charging statute for false representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000. The charging statute for aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutive to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; 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 Sandra S. Bower 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 – A Colombian national pleaded guilty today in federal court in Boston to illegally reentering the United States after deportation and to immigration document fraud.

Guillermo Pineda Suarez, 57, pleaded guilty to one count of illegal reentry of a deported alien, one count of possession and use of a false immigration document, and one count of false statements in an immigration document. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for March 26, 2019. Pineda Suarez is currently in state custody awaiting trial on unrelated charges.  

On May 22, 2014, Pineda Suarez made a false statement under oath in a United States Citizenship and Immigration Services Form I-9 Employment Eligibility Verification Form and used a counterfeit U.S. Permanent Resident Card in order to obtain employment. On March 15, 2018, Pineda Suarez was encountered by law enforcement in Boston and determined to be unlawfully present in the United States. Pineda Suarez was previously deported on Nov. 9, 2001, after a conviction for a drug trafficking crime. 

The illegal reentry charge provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $250,000. The remaining charges each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Pineda Suarez will be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of Lelling’s Major Crimes Unit is prosecuting the case.

BOSTON – A Canton man was arrested yesterday and charged in federal court in Boston in connection with multiple armed robberies in Canton and Mattapan.

Jerron Perry, 27, was charged with interference with commerce by robbery and being a felon in possession of ammunition. Perry appeared in federal court in Boston yesterday and was remanded into custody pending a probable cause and detention hearing set for March 7, 2019.

According to the charging documents, on Sept. 22, 2018, Perry, wearing a mask, pointed a semi-automatic pistol at the store clerk of a Metro PCS store in Mattapan and demanded money from the register; he left the store with approximately $607. Perry is alleged to have robbed that same store again in the same manner on Oct. 25, 2018, stealing $359. It is further alleged that Perry committed a similar armed robbery at a convenience store in Canton on Oct. 31, 2018, stealing an unknown amount of cash.

A search of Perry’s residence on Feb. 28, 2019, resulted in the discovery of clothing that matched the suspect’s clothes and two shell casings. Due to a 2013 conviction for assault and battery by means of a dangerous weapon, Perry is prohibited from possessing ammunition.

The charge of interference with commerce by robbery provides for a sentence of no greater than 20 years in prison, five years of supervised release, and a fine of up to $ 250,000. The charge of being a felon in possession of ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the 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 Police Commissioner William G. Gross; and Canton Police Chief Kenneth Berkowitz made the announcement. Assistant U.S. Attorney Theodore Merritt of Lelling’s Major Crimes Unit is prosecuting the case.

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

BOSTON - A Salvadoran national, illegally present in the United States, was sentenced today in federal court in Boston for failure to register as a sex offender as required under the Sex Offender Registration and Notification Act (SORNA).

Melvin Velasquez, 34, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to eight months in prison and five years of supervised release. In November 2018, Velasquez pleaded guilty to one count of failure to register as a sex offender. Velasquez was charged by criminal complaint in August 2018 and has been in federal custody since his arrest.  

In 2007, Velasquez was convicted in New York of one count of rape in the third degree and sentenced to eight months in prison and eight years of probation. As a condition to his probation, Velasquez was required by SORNA to register as a sex offender in any jurisdiction where he resided or worked. Velasquez, who was also determined to be illegally present in the United States, was deported to El Salvador following the completion of his sentence.

Sometime thereafter, Velasquez returned to the United States, assumed a false identity, and was living and working in East Boston. In May 2018, Velasquez, using his alias, was arrested and charged with various motor vehicle violations. Velasquez’s fingerprints were obtained and found to match the prints in his alien file stemming from his 2007 New York rape conviction. Law enforcement subsequently discovered that Velasquez had not registered, as required by law, with the Massachusetts Sex Offender Registry Board.

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

BOSTON – A New York man was sentenced in federal court in Springfield yesterday for failing to register as a sex offender.

Jose Dones, 43, of Schenectady, N.Y., was sentenced by U.S. District Court Judge Mark G. Mastroianni to two years in prison and seven years of supervised release. In October 2018, Dones pleaded guilty to one count of failure to register as a sex offender. Dones received an additional six months in prison for violating the conditions of supervised release from a 2016 failure to register conviction. Dones has been in custody since his arrest on Jan. 10, 2018.

In 1994, Dones was convicted of second degree rape, and in 2008, he was convicted of forcible touching. As a result, Dones is required to register as a sex offender and has received many notices informing him of his obligation. He has been convicted four times in New York state court of failure to register as a sex offender, and in 2016, he was convicted in federal court in Massachusetts of failing to register as a sex offender. 

In November 2017, Dones was released from a halfway house in Boston, and, while on supervised release in connection with his 2016 federal conviction, he lived in Boston without registering as a sex offender. In December 2017, he moved to Schenectady, N.Y., where he again failed to register.

United States Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield 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 federal grand jury in Boston indicted a Marstons Mills man today on charges of distributing, receiving, and possessing child pornography.

Steven Carme, 30, was indicted on one count of distribution of child pornography, one count of receipt of child pornography, and one count of possession of child pornography involving a prepubescent minor and a minor who had not attained 12 years of age. Earlier this month, Carme was arrested and charged by criminal complaint and released on conditions. 

According to the charging documents, on Feb. 5, 2019, law enforcement executed a federal search warrant at Carme’s residence, where they seized a laptop computer, an external hard drive, and an iPhone X. An onsite forensic review of the external hard drive revealed hundreds of images and videos of child pornography.

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 involving a prepubescent minor provides for a sentence of no greater than 20 years in prison. Each charge also provides for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Barnstable Police Chief Matthew Sonnabend made the announcement today. Assistant U.S. Attorney Elianna Nuzum of Lelling’s Major Crimes Unit is prosecuting the case.

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

The details contained in the indictment 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 sentenced yesterday in federal court in Boston for his role in a wide-ranging conspiracy to defraud his employer, a large facilities services company with offices in the Greater Boston area.

Vence Pires, 58, was sentenced by U.S. District Court Senior Judge Rya W. Zobel to one year and one day in prison, one year of supervised release and restitution to be determined at a later date. In July 2018, Pires pleaded guilty one count of conspiracy to commit wire fraud. Co-defendant Lou Amaral, 52, also of Malden, pleaded guilty on July 9, 2018, to one count of conspiracy to commit honest services mail fraud, one count of conspiracy to commit wire fraud, one count of money laundering and one count of tax evasion.  Amaral is awaiting sentencing.

Pires and Amaral worked for the same facilities services company in the Greater Boston area. Amaral was the supervisor of the Special Services Department, and as such, he had the ability to hire employees and to contract with third-parties to provide temporary labor. Pires was an account manager who worked for Amaral in Special Services. Amaral first began taking bribes from a temporary labor company in order to steer contracts to that company. In 2014, Amaral opened up his own temporary labor company and, with the help of Pires, awarded himself the temporary labor contracts. Through this scheme, Amaral made approximately $10 million in revenue over a three-year period, resulting in harm to his employer of more than $4 million. 

United States Attorney Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today.  Assistant U.S. Attorney Eric Rosen of Lelling’s Securities and Financial Fraud Unit prosecuted the case.

BOSTON – A Beverly man was arrested today and charged in federal court in Boston for sending nine letters, one of which contained a white powder, to the online dating website OkCupid.com.

Liam MacLeod, 47, was charged by criminal complaint with mailing threatening communications and conveying false information and hoaxes. He will appear today in federal court in Boston at 3:30 p.m.

According to the complaint, between September and December 2017, OkCupid’s corporate headquarters in Dallas, Texas, received nine mailings containing either threatening communications and/or suspicious substances. All of the mailings were addressed to OkCupid’s Chief Executive Officer (CEO).

It is alleged that on or about Sept. 12, 2017, MacLeod mailed an envelope addressed to OkCupid’s CEO in Dallas containing a suspicious white powder, along with a handwritten letter with the following text:

          Greeting from Beverly

          Ban me will ya

          Welcome to the wonderful world of ANTHRAX

          Expect a package within the next couple of days

          It won’t be ticking but it should be interesting!

On or about Sept. 14, 2017, MacLeod allegedly mailed another envelope addressed to OkCupid’s CEO in Dallas containing a typewritten letter with the following message, amongst other text:

          How’d you like what I sent you?  Aww, go take a powder. Oh, the things I have in store for you!  I            can go on like this for years. How long can you last?

 

          Incidentally, my father was an angel: That’s Hell’s

          Angel to you.  You see, we have some pull.  Take for

          example your vehicles.  We now know who owns

          what, and where each of you parks his.

          Hmm, think of the possibilities!

On or about Sept. 20, 2017, the complaint alleges that MacLeod sent a third envelope to OkCupid’s CEO in Dallas. The envelope and its contents, a single piece of white paper, each contained significant red-brown staining consistent with blood. The next day, Sept. 21, 2017, MacLeod mailed another letter addressed to OkCupid’s CEO containing a typewritten letter wherein MacLeod indicated that the red-brown staining on the previous letter was blood infected with the AIDS virus.

It is further alleged that between Oct. 4, 2017 and Dec. 21, 2017, MacLeod mailed five additional envelopes addressed to OkCupid’s CEO in Dallas, each containing threatening communications and/or suspicious substances. Each of these mailings generated a hazmat response by federal law enforcement in order to rule out the presence of active biological or chemical agents. Laboratory testing later confirmed that the substances contained in the envelopes mailed by MacLeod, including the white powdery substance, did not contain hazardous materials.

The charge of false information and hoaxes provides for a sentence of no greater than five years in prison, one year of supervised release and a fine of up to $250,000. The charge of mailing threatening communications provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and David W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement today. The investigation was conducted by the FBI Boston’s Joint Terrorism Task Force, with assistance from the Beverly Police Department. OkCupid and its parent company has been fully cooperative with the investigation. Assistant United States Attorney Jason A. Casey of Lelling’s National Security Unit is prosecuting the case.

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 – An Arizona man pleaded guilty today in connection with posting threats to bomb Harvard and shoot attendees at the Black Commencement event held on May 2017. 

Nicholas Zuckerman, 24, pleaded guilty to two counts of transmitting in interstate and foreign commerce a threat to injure the person of another. U.S. District Court Judge Indira Talwani scheduled sentencing for May 23, 2019. In June 2018, Zuckerman was arrested and charged.

On or about May 13, 2017, Zuckerman commented on a post published to Harvard University’s Instagram account, saying: “If the blacks only ceremony happens, then I encourage violence and death at it.  I’m thinking two automatics with extendo clips.  Just so no n***** gets away.”  It is further alleged that on that same date, Zuckerman posted a comment to another Harvard Instagram post, saying: “#bombharvard and end their pro-black agenda.” Several minutes later, Zuckerman commented “#bombharvard” on other users’ posts approximately 11 times over a span of four minutes. 

A concerned citizen who saw the posts reported them to the Harvard University Police, who ultimately referred the case to federal authorities.

The charge of transmitting in interstate and foreign commerce a threat to injure the person of another of provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling, Joseph R. Bonavolonta, Special Agent in Charge Federal Bureau of Investigation, Boston Field Division, and Harvard University Chief of Police Francis D. Riley made the announcement today. Assistant U.S. Attorneys Anne Paruti and Scott Garland of Lelling’s Civil Rights Enforcement Team are prosecuting the case.

 

BOSTON – A Worcester man was sentenced yesterday in federal court in Worcester for drug and firearm offenses.

Cleon Riley, 36, was sentenced by U.S. District Court Judge Timothy S. Hillman to 15 years in prison and five years of supervised release. In November 2018, Riley pleaded guilty to one count of being a felon in possession of firearms and ammunition, one count of distributing cocaine, and one count of possessing fentanyl with intent to distribute. Riley has been detained since his arrest in May 2018.

On multiple occasions in 2018, Riley sold cocaine to a confidential source in Worcester. On one occasion in February 2018, Riley sold powder cocaine, crack cocaine, and a .9mm Beretta handgun, which had previously been reported as stolen, to the same source.

Riley was arrested by local police in May 2018. At the time of his arrest, he was in possession of seven bags of fentanyl and 20 bags of cocaine. Law enforcement also located additional quantities of fentanyl and cocaine in a car used by Riley, as well as a large quantity of fentanyl, digital scales, cutting agents, and packaging materials in an apartment that Riley used.

United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement. Valuable assistance was provided by the Worcester County District Attorney’s Office and the Worcester Police Department. Assistant U.S. Attorney Bill Abely of Lelling’s Criminal Division prosecuted the case.

The founder and principal operator of My Big Coin Pay Inc. (My Big Coin), a purported cryptocurrency and virtual payment services company headquartered in Las Vegas, Nevada, was charged in an indictment unsealed today for his alleged participation in a scheme to defraud investors by marketing and selling fraudulent virtual currency. 

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 and Inspector in Charge Delany De Leon-Colon of the Criminal Investigations Group of the U.S. Postal Inspection Service’s National Headquarters in Washington, DC made the announcement.

Randall Crater, 48, of East Hampton, New York, was charged in an indictment filed in the District of Massachusetts with four counts of wire fraud and three counts of unlawful monetary transactions.  Crater was arrested this morning and will appear today in U.S. District Court in the Middle District of Florida.

The indictment alleges that between 2014 and 2017, Crater and others created the fraudulent virtual currency “My Big Coins” or “Coins” and marketed this fraudulent currency to investors using misrepresentations about its nature and value.  Crater and his associates allegedly falsely claimed that Coins were a fully functioning cryptocurrency backed by valuable assets such as gold.  Crater and his associates also allegedly told investors that Coins could be readily exchanged for goods, cash or other virtual currencies.  As alleged in the indictment, Crater and his associates solicited investors and distributed these misrepresentations through websites and social media affiliated with My Big Coin, as well as by direct communications with investors and prospective investors.  In reality, Coins were not backed by gold or any other valuable assets and were not readily transferable, the indictment alleges.  Instead, Crater allegedly misappropriated over $6 million in investor funds for personal use, including to purchase artwork, antiques, jewelry and other luxury items. 

The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The case was investigated by the FBI and the U.S. Postal Inspection Service.  The case is being prosecuted by Trial Attorney Caitlin Cottingham of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jordi De Llano Campos of the District of Massachusetts.  The Commodity Futures Trading Commission provided assistance with the matter.  

The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.

BOSTON – The founder of My Big Coin Pay Inc., a purported cryptocurrency and virtual payment services company headquartered in Las Vegas, Nev., was arrested and charged today for his participation in a scheme to defraud investors by marketing and selling fraudulent virtual currency. 

Randall Crater, 48, of East Hampton, N.Y., was charged with four counts of wire fraud and three counts of money laundering. Crater was arrested this morning and will appear today in U.S. District Court in the Middle District of Florida. A date for Crater’s initial appearance in the District of Massachusetts has not yet been scheduled.

According to the indictment, Crater and others created the fraudulent virtual currency, “My Big Coins” or “Coins,” which they marketed to investors between 2014 and 2017 using misrepresentations about the nature and value of Coins. Crater and his associates falsely claimed that Coins was a fully functioning cryptocurrency backed by valuable assets such as gold, oil, and other assets. They also falsely told investors that Coins could readily be exchanged for government-backed paper currency or other virtual currencies. As alleged in the indictment, Crater and his associates promulgated these misrepresentations through social media, the internet, email, and text messages.   

In reality, Coins were not backed by gold or other valuable assets and were not readily transferable. Over the course of the scheme, it is alleged that Crater misappropriated over $6 million of investor funds for his own personal gain.   

In January 2018, the Commodity Futures Trading Commission (CFTC) announced commodity fraud charges against Crater and My Big Coin Inc. The CFTC also filed civil charges against the Chief Executive Officer of My Big Coin, John Roche, and two of Crater’s associates Mark Gillespie and Michael Kruger. 

The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. The money laundering charges provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the value of the criminally derived property. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Peter R. Rendina, Inspector in Charge of the U.S. Postal Inspection Service’s Washington Field Division, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities & Financial Fraud Unit, and Trial Attorney Caitlin Cottingham of the Criminal Division’s Fraud Section are prosecuting the case. The CFTC also provided valuable assistance with the matter.  

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.