District of Massachusetts

BOSTON – A Boston man was indicted today in federal court in Boston for being a felon in possession of a firearm.

On Nov. 26, 2018, Reginald Boyd, 29, was allegedly found in possession of a .22 caliber North American Arms revolver with five rounds of ammunition.  Boyd is prohibited from possessing a firearm due to three previous drug convictions, all punishable by more than a year in prison.

The charging statute 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 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Norfolk County District Attorney’s Office and the Massachusetts State Police. Assistant U.S. Attorney Evan Gotlob of Lelling’s Criminal Division 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 former Hadley Police Department Officer was found guilty today of using unreasonable force during an arrest and then falsifying a police report of the incident.

Christopher M. Roeder, 49, of Agawam, was convicted by a federal jury after a seven-day trial of one count of deprivation of rights under color of law and one count of falsification of a document.

Evidence presented at trial established that, on April 3, 2017, Roeder struck an arrestee in the face without legal justification, while the arrestee was seated on a bench in the Hadley Police Department booking area. The strike fractured the arrestee’s nose in multiple places and required plastic surgery to repair. Roeder subsequently attempted to obstruct the investigation into his assault of the arrestee by falsifying his police report describing the incident.

“Police officers put themselves at risk for the public good every day. The defendant, however, diminished the sacrifices of his fellow officers by violating the constitutional rights of an arrestee,” said United States Attorney Andrew E. Lelling. “Law enforcement officers are rightfully held to a higher standard and, on the very rare occasions when officers refuse to meet that standard, they will be held to account.”

“Law enforcement officers are sworn to uphold and defend the laws of our nation,” said Assistant Attorney General Eric Dreiband. “When they abuse their power to violate those very laws, they not only deprive citizens of their individual rights, but they also compromise the public’s trust in law enforcement. The Department of Justice will continue to hold officers accountable for their actions.”

“With today’s conviction, Mr. Roeder finds himself on the opposite end of the very laws he was sworn to uphold. Wearing a badge is a privilege and honor that most law enforcement officers take seriously. It’s not a license to corrupt the administration of justice, but Mr. Roeder clearly forgot that when he broke a man’s nose and tried to cover it up by falsifying his police report. His actions undermined the hard work of the entire law enforcement community,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.

The charge of deprivation of civil rights under color of law resulting in injury 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. The charge of falsifying a police report provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Lelling; Assistant Attorney General Dreiband; and FBI SAC Bonavolonta made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office and Trial Attorney Timothy Visser of the Department of Justice’s Civil Rights Division are prosecuting the case.

A former Hadley Police Department Officer was found guilty today of using unreasonable force during an arrest and then falsifying a police report of the incident.

Christopher M. Roeder, 49, of Agawam, was convicted by a federal jury after a seven-day trial of one count of deprivation of rights under color of law and one count of falsification of a document.

Evidence presented at trial established that, on April 3, 2017, Roeder struck an arrestee in the face without legal justification, while the arrestee was seated on a bench in the Hadley Police Department booking area. The strike fractured the arrestee’s nose in multiple places and required plastic surgery to repair.

It was further established that Roeder subsequently attempted to obstruct the investigation into his assault of the arrestee by falsifying his police report describing the incident.

“Law enforcement officers are sworn to uphold and defend the laws of our nation,” said Assistant Attorney General Eric Dreiband. “When they abuse their power to violate those very laws, they not only deprive citizens of their individual rights, but they also compromise the public’s trust in law enforcement. The Department of Justice will continue to hold officers accountable for their actions.”

“Police officers put themselves at risk for the public good every day.  The defendant, however, diminished the sacrifices of his fellow officers by violating the constitutional rights of an arrestee,” said United States Attorney Andrew E. Lelling. “Law enforcement officers are rightfully held to a higher standard and, on the very rare occasions when officers refuse to meet that standard, they will be held to account.”

“With today’s conviction, Mr. Roeder finds himself on the opposite end of the very laws he was sworn to uphold. Wearing a badge is a privilege and honor that most law enforcement officers take seriously. It’s not a license to corrupt the administration of justice, but Mr. Roeder clearly forgot that when he broke a man’s nose and tried to cover it up by falsifying his police report. His actions undermined the hard work of the entire law enforcement community,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.

The charge of deprivation of civil rights under color of law resulting in injury 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. The charge of falsifying a police report provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division; United States Attorney Andrew E. Lelling; and Joseph Bonavolonta, Special Agent in Charge of the FBI, Boston Field Division, made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office and Trial Attorney Timothy Visser of the Department of Justice’s Civil Rights Division are prosecuting the case.

BOSTON – A Brockton man was indicted today in federal court in Boston in connection with an August 2018 computer intrusion of a Massachusetts company.

Colby Anderson, 25, was indicted on one count of intentionally causing damage to a protected computer without authorization. In October 2018, Anderson was arrested and charged by complaint; he was released on conditions.

According to the charging documents, in July 2018, Anderson was terminated from his position as a Network Operations Center Technician at Blueport Wireless, a high speed internet access provider. Following his termination, Anderson subsequently used his former colleagues’ account login information to delete approximately 120 customer configuration profiles, causing widespread internet service issues at customer facilities.

The charging statute 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 or twice the gross gain or loss.  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 Office made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Cybercrimes 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 Swiss lawyer pleaded guilty yesterday in federal court in Boston in connection with participating in an international pump-and-dump scheme.

Matthew Ledvina, 46, pleaded guilty to one count of conspiracy to commit securities fraud. U.S. District Court Judge William G. Young scheduled sentencing for April 25, 2019.

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

The government previously charged Roger Knox, the operator of Silverton, a Switzerland-based asset management firm, with helping to facilitate the EPTI pump-and-dump and other market manipulation schemes. During the pump-and-dump, Silverton sold approximately $1.5 million worth of EPTI stock before trading was halted by the Securities and Exchange Commission.  Knox previously pleaded not guilty and is currently detained pending trial. 

The charging statute 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 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

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

BOSTON – A Nahant couple was charged yesterday in federal court in Boston with two counts of tax evasion. 

Gary P. DeCicco, 60, and Pamela M. Avedisian, 55, were charged in a superseding indictment with one count of conspiracy to commit tax fraud and one count of evasion of payment of taxes. The original indictment returned in January 2018 charged DeCicco and Avedisian with conspiracy to commit wire fraud and one count of wire fraud. DeCicco was also charged with one count of conspiracy to commit bank fraud, one count of bank fraud, four counts of wire fraud and attempted wire fraud and six counts of engaging in unlawful monetary transactions. 

According to the charging documents, between April 2012 and February 2013, DeCicco repeatedly told the IRS that he did not have the ability to pay his over $340,000 liability, and that he had very little cash, no vehicles or real property, and no ownership interest in any asset with a positive value. However, the indictment alleges that DeCicco had ownership interests in several businesses, vehicles, and real properties during that time period, titled in his name and the names of Avedisian, Lynnway Auto Sales Inc., and other entities in order to conceal those assets from the IRS. In addition, beginning in March 2013, after the IRS accepted DeCicco’s proposed monthly payment plan (based on the false information DeCicco provided about his assets and income), DeCicco allegedly bought and sold numerous real properties, boats and high end cars, and concealed those assets and his income from the IRS, often with Avedisian’s assistance.   

According to court documents, Avedisian owned a property in Nahant that was subject to a mortgage in excess of $1 million. In October 2015, DeCicco and Avedisian allegedly conspired to defraud the mortgage holder by proposing the sale of the property for significantly less than the outstanding mortgage, in what is commonly referred to as a “short sale.” By their very nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated and act independently, allowing sellers to cede their ownership of the property in exchange for the short-selling bank’s agreement to release them from their unpaid mortgage debt.  In order to get approval for the sale, DeCicco and Avedisian concealed their long-term romantic and business relationships from the loan servicing company and falsely represented that Avedisian could no longer make payments towards the mortgage on the property.  In fact, just two months before the “short sale” closed, Avedisian purportedly received $3.5 million from the sale of another asset to DeCicco.

The indictment also alleges that from November 2015 to September 2016, DeCicco and a co-conspirator falsified rent rolls and prepared fake leases, which they then provided to financial institutions in support of their applications for a $5.5 million loan secured by a commercial building in Peabody.  Between September 2016 and January 2017, DeCicco allegedly committed unlawful monetary transactions with the proceeds of the bank fraud scheme, and between February and December 2016, DeCicco engaged in a scheme to defraud multiple insurance companies using fake invoices and other documents to support his claims.

The charges of wire fraud and conspiracy, as well as bank fraud and conspiracy, provide for a sentence of no greater than 30 years in prison, three years of supervised release and a fine of $250,000. The charges of wire fraud and attempted 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. The charge of engaging in unlawful monetary transactions provides for a sentence of no greater than ten years in prison, three years of supervised release and a fine of $250,000. The charges of conspiracy to defraud the United States and tax evasion each provide 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; Joseph R. Bonavolanta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and, Kristian O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Lelling’s Public Corruption and Special Prosecutions Unit is prosecuting the case.

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

BOSTON – A man identified as a member of the Heath Street Gang was sentenced yesterday in federal court in Boston for drug trafficking and illegal possession of a firearm.

Kendrick Tate, a/k/a “K-Roc,” 26, of Chelsea, was sentenced by U.S. District Court Judge Indira Talwani to 159 months in prison and three years of supervised release. In August 2018, Tate pleaded guilty to one count of distribution of cocaine base and one count of being a felon in possession of a firearm and ammunition. Tate has been serving a state sentence for unrelated drug and gun convictions.

On subsequent days in April 2017, Tate sold a cooperating witness crack cocaine and a firearm with a partially obliterated serial number. Although Tate has been identified by law enforcement as a member of the Heath Street Gang, he was living in Chelsea at the time of these sales.

According to court documents, Tate was convicted in state court in November 2017 of unrelated drug and firearm charges and is presently serving a 3 ½ - 4-year sentence. Tate was also previously convicted of assault with a dangerous weapon on two occasions, assault and battery with a dangerous weapon, resisting arrest, assault and battery on a police officer, and possession to distribute a Class B substance on two occasions.

Following a two-year investigation, Tate and eight co-defendants were charged in January 2018 in connection with illegal drug distribution and firearm possession within and near the Mildred C. Hailey Apartments, formerly known as the Bromley Heath Housing Development. The investigation and arrests sought to reduce violence and improve the quality of life for residents in and around the Mildred C. Hailey Apartments by removing individuals who trafficked drugs and who were actively involved in violence and gang disputes.

United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Gross made the announcement. Assistance was also provided by the Boston Housing Authority’s Department of Police and Public Safety. The case was prosecuted by Lelling’s Organized Crime and Gang Unit.

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 today in federal court in Boston in connection with his participation in a conspiracy to distribute fentanyl. 

Angel Milciades Santana Polanco, 31, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 60 months in prison and three years of supervised release. In November 2018, Santana Polanco pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute more than 400 grams or more of fentanyl. 

According to court records, as part of an ongoing drug trafficking investigation, law enforcement agents intercepted phones used by Wareng Jhonny Villar-Ortiz and another member of the conspiracy, both of whom are also Dominican nationals.  Agents determined that Villar-Ortiz was a mid-level drug distributor, who had received a kilogram of fentanyl in late January 2018. The intercepted calls further established that Villar-Ortiz arranged for Santana Polanco, who was typically a distributor for Villar-Ortiz, to test the drugs. Santana Polanco found three individuals, gave the drugs to them, and then reported back to Villar-Ortiz how the individuals responded to the drugs. 

Between Feb. 8 and Feb. 12, 2018, agents intercepted communications between Santana Polanco and Villar-Ortiz in which Santana Polanco offered to supply Villar-Ortiz with a kilogram of drugs. Villar-Ortiz took possession of the drugs in order to test the quality before deciding whether to purchase them. On Feb. 15, 2018, Villar-Ortiz reported that the drugs were unacceptable and made arrangements for Santana Polanco to retrieve them. A search of Villar-Ortiz’s residence resulted in the seizure of 978.6 grams of fentanyl from a hiding spot in the bathroom wall. 

Court records indicate that Santana Polanco entered the United States illegally. After serving his sentence, he will be subject to deportation proceedings. Villar-Ortiz pleaded guilty on Jan. 11, 2019, and is scheduled to be sentenced on April 5, 2019.

United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today.  Valuable assistance was provided by the Boston, Ipswich, and Arlington Police Departments.  Assistant U.S. Attorney James E. Arnold of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.

BOSTON – A Worcester restaurant manager pleaded guilty yesterday in federal court in Worcester to conspiring with the wife of a convicted drug dealer to use drug proceeds to renovate and operate a Shrewsbury Street restaurant. 

Joseph Herman, 37, pleaded guilty to conspiracy to commit money laundering, making false statements to federal investigators and attempted witness tampering. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for May 28, 2019.

Between May 2017 and September 2017, Herman conspired with co-defendant Stacy Gala to launder the proceeds of illegal drug sales by Gala’s husband, Kevin A. Perry Jr.   Herman worked as the manager of The Usual, a Worcester restaurant owned and operated by Perry and Gala. Herman admitted that, after Perry’s arrest in March 2017, he and Gala conspired to use Perry’s drug proceeds to renovate the restaurant and to reopen the business under a new name, “The Chameleon.” Herman also admitted that he lied to federal investigators about the source of the funds used to renovate the restaurant, and attempted to convince another witness to falsely testify about Herman’s involvement in the money laundering scheme.

In October 2017, Perry pleaded guilty to money laundering and drug distribution charges and was sentenced to 14 years in prison. Stacy Gala is scheduled for trial on May 6, 2019. 

Herman faces up to 20 years in prison for the charges of conspiracy to commit money laundering and attempted witness tampering and up to five years in prison for making false statements to investigators. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service in Boston made the announcement. Assistant U.S. Attorney Greg A. Friedholm, Chief of Lelling’s Worcester Branch Office, is prosecuting the case. 

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

BOSTON – A North Carolina man was sentenced yesterday in federal court in Boston for his role in a market manipulation scheme which was actually part of an undercover operation.

David Aubel, 60, of Matthews, N.C., was sentenced by U.S. District Court Chief Judge Patti B. Saris to 87 months in prison, five years of supervised release and ordered to pay restitution in the amount of $242,553. In November 2017, Aubel pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, and three counts of wire fraud.

In 2016, Aubel and co-conspirator Robert Raffa, of Penacook, N.H., were arrested and charged in a criminal complaint in connection with their involvement in a scheme to manipulate the market for the publicly traded securities of Green Energy Renewable Solutions, Inc., a penny stock company that claimed to be in the business of developing and operating waste processing and recycling facilities near Detroit, MI. Raffa previously pleaded guilty and was sentenced in January 2018 to two years in prison and two years of supervised release.

In early 2012, Raffa and Aubel used four foreign entities to covertly acquire nearly all of Green Energy’s unrestricted stock without reporting their controlling interest as required by law.  They then hired a promoter to send blast e-mails touting Green Energy to potential investors, all while selling shares without disclosing that they had orchestrated the campaign encouraging investors to buy. 

The initial promotion enabled Raffa and Aubel to sell more than 1.5 million shares of Green Energy stock for proceeds of about $900,000. However, Raffa and Aubel continued to control a substantial amount of Green Energy stock after the promotion ended, and they used manipulative trading techniques to stabilize Green Energy’s stock price while they searched for another promoter to run a second touting campaign. Their search led them to a stock promoter who was secretly cooperating with federal agents and an undercover agent who claimed to have access to a network of corrupt stockbrokers who would buy their shares in exchange for kickbacks. Raffa and Aubel executed a trade in which they sold 174,000 shares of their Green Energy stock to an account purportedly controlled by a corrupt broker, which was in fact controlled by federal authorities. Following the trade, the conspirators wired a $6,000 kickback payment to an account they believed to be controlled by the corrupt broker, but which was actually controlled by federal authorities.

In November 2018, Aubel was charged with bail jumping after repeatedly failing to appear for sentencing before Judge Saris. U.S. Marshals located and apprehended Aubel as he exited a hotel in Charlotte, NC.

In a parallel action, the Securities and Exchange Commission (SEC) previously charged Aubel and Raffa with securities fraud in connection with 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. Gregory Allyn Forest, U.S. Marshal of the Western District of North Carolina, and John Gibbons, U.S. Marshal of the District of Massachusetts provided assistance with the apprehension. The United States Attorney’s Office received valuable assistance from the SEC. SEC Attorney Andrew Palid, who was appointed as a Special Assistant U.S. Attorney, and Jordi de Llano, Deputy Chief of Lelling’s Securities & Financial Fraud Unit, prosecuted the case.

BOSTON – Two Malaysian nationals were arrested today and charged with conspiring to illegally export firearms and firearm parts from the United States to an individual located in Hong Kong, China.

Lionel Chan, 35, who resided in Brighton, Mass., and Muhammad Radzi, 26, who resided in Brooklyn, N.Y., were each charged by criminal complaint with one count of conspiring to violate the Arms Export Control Act. Chan was also charged with one count of obstruction of justice. Chan will appear this afternoon in federal court in Boston and Radzi will appear in federal court in the Eastern District of New York.

According to the criminal complaint, beginning in or around March 2018, Chan began purchasing a variety of U.S.-origin firearm parts, including parts used to assemble AR-15 assault rifles and 9MM semi-automatic handguns, at the request of a buyer in Hong Kong. Chan purchased the parts online through a variety of websites, including eBay and gunbroker.com.  These firearm parts are restricted items and cannot be exported from the United States without a license. Nevertheless, Chan allegedly shipped the firearm parts via Federal Express to the buyer in Hong Kong without first obtaining the necessary export licenses. Chan intentionally concealed the contents of the shipments by providing false descriptions of the items contained in each shipment and by concealing the parts inside the package. For example, in one text exchange, Chan and the Hong Kong buyer discussed how to illegally ship a Glock 19 semi-automatic handgun. The Hong Kong buyer wrote, “this is how we are shipping the Glock 19 and USP compact barrel. I usually stuff them into a pair of sneakers, and cover it with Doritos or chips.”  Between March and May 2018, Chan shipped 12 packages from Brighton, Mass., to the buyer in Hong Kong.

In or around April 2018, Radzi allegedly joined the conspiracy and began illegally exporting firearm parts to Hong Kong as well. Between May and October 2018, Radzi allegedly shipped 21 packages from Brooklyn, N.Y., to the buyer in Hong Kong. In October 2018, two of those packages were interdicted by Hong Kong authorities and found to contain numerous firearms parts, including a firing pin and gun sight, which were export-controlled. Like Chan, Radzi failed to obtain an export license for any of these shipments.

Chan allegedly obstructed justice by deleting numerous text messages relating to illegally exporting firearms during a flight from Dublin, Ireland, to Boston, Mass. 

The charge of conspiring to illegally export firearms provides for a sentence of no greater than five years in prison, one year of supervised release and a $250,000 fine. The charge of obstructing justice provides for a sentence of no greater than 20 years in prison, three 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 Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. The Massachusetts State Police and U.S. Customs and Border Protection also assisted in the investigation. Assistant U.S. Attorneys George P. Varghese and Jason A. Casey of Lelling’s National Security 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.

BOSTON – An Idaho man was sentenced yesterday in federal court in Boston for participating in a market manipulation scheme involving the stock of Endeavor Power Corp., and then making false statements to the U.S. Securities and Exchange Commission (SEC) in connection with its investigation of the fraud scheme.

Samuel Brown, 38, of Bonners Ferry, Idaho, was sentenced by U.S. District Court Judge Indira Talwani to three years of probation – with the first five months to be served in home detention – and ordered to pay restitution in the amount of $22,237. In July 2015, Brown pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud, and one count of making false statements to the SEC. 

Between approximately July 2012 and March 2013, Brown conspired to manipulate the securities of Endeavor. In September 2013, Brown provided sworn testimony to the SEC relating to questions about trading in the stock. In pleading guilty, Brown admitted that he misled the SEC during the course of its examination.

In October 2015, Edward Withrow III and Marco Babini were charged in an indictment for conspiring with Brown. Withrow’s trial ended in a hung jury in December 2017, and he subsequently pleaded guilty to also making false statements to the SEC. Babini remains at large and is charged with one count of conspiracy, one count of securities fraud and two counts of wire fraud.

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. SEC Attorney Eric A. Forni, who was appointed as a Special Assistant U.S. Attorney, prosecuted the case.

The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – An Everett man was sentenced today in federal court in Boston in connection with a scheme to defraud the Massachusetts Department of Unemployment Assistance (DUA) of more than $1.7 million.

Edison Delarosa, 53, was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to two years in prison, three years of supervised release, and ordered to pay restitution in the amount of $27,227.  In October 2018, Delarosa pleaded guilty to three counts of mail fraud and three counts of wire fraud. In February 2017, Delarosa was arrested and charged and subsequently released on conditions. 

From approximately January 5 through November 24, 2016, Delarosa engaged in a scheme to defraud the Commonwealth of Massachusetts by exploiting DUA’s online system, which allows claimants to manage their unemployment insurance accounts over the internet. On multiple occasions, Delarosa, who did not actually owe DUA any money, submitted bogus “repayments” online, which triggered the release of “refund” checks payable to him in varying amounts. During the course of the scheme, Delarosa submitted a total of 136 fraudulent “repayments,” amounting to $1,763,418, for which DUA issued him 15 paper “refund” checks, totaling $1,251,283. DUA uncovered the scheme after six of those checks, totaling $27,227, were mailed to Delarosa and deposited into his account.   

United States Attorney Andrew E. Lelling; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, New York Region; 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, made the announcement today. The Commonwealth of Massachusetts’ Department of Unemployment Assistance provided valuable assistance to the investigation. Assistant U.S. Attorney Anne Paruti of Lelling’s Major Crimes Unit prosecuted the case.

BOSTON – A Dominican national, formerly residing in Lawrence, but presently serving a state prison term for fentanyl trafficking, pleaded guilty today in federal court in Boston to charges including identity theft.

Rafael Aguasviva Peralta, 32, pleaded guilty to one count of misuse of a Social Security number and one count of aggravated identity theft. U.S. District Court Judge Rya Zobel scheduled sentencing for May 2, 2019.

On Nov. 19, 2013, Aguasviva falsely represented that a Social Security number was his in an application for a learner’s permit, using the identity of a Puerto Rican man, at the Lawrence branch of the Registry of Motor Vehicles.

The charging statute for misuse 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, 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.

BOSTON – A Chelsea man pleaded guilty yesterday in federal court in Boston to RICO conspiracy involving attempted murder and drug trafficking.

Brandon Baez, aka “Big Baby,” pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity and one count of conspiracy to distribute cocaine base and cocaine. U.S. District Court Judge Richard G. Stearns scheduled sentencing for May 3, 2019.

During an investigation into a network of street gangs that had created alliances to traffic weapons and drugs throughout Massachusetts, Baez was identified as a member of the East Side Money Gang (ESMG), a Chelsea-based street gang, which used violence to further its criminal activities and enforce its internal rules. Specifically, ESMG uses violence to protect its members/associates, target rival gang members/associates and intimidate potential witnesses.

In intercepted calls on April 3, 2016, Baez informed Angel Mejia, a leader in the ESMG, that he had just shot two men in a black Cadillac at a gas station in Revere because he believed that they were members of a rival street gang. Baez told Mejia that he believed he had killed at least one of the intended victims. Two days before the shooting, Mejia and fellow ESMG member Josue Rodriguez had provided Baez with the .22 caliber revolver used in the shooting.  Following the shooting, Baez asked Mejia for assistance getting a larger caliber handgun as no one was killed during the Revere shooting. Baez was subsequently arrested in Chelsea by local law enforcement officers while armed with the .22 caliber revolver used in the Revere shooting.

In October 2017, Rodriguez was sentenced to over 10 years in prison. Mejia previously pleaded guilty and is pending sentencing.

Baez is one of 53 defendants indicted in June 2016 on federal firearms and drug charges following an investigation into a network of street gangs that created alliances to traffic weapons and drugs and to generate violence against rival gang members. According to court documents, the defendants, who are leaders, members, and associates of the 18th Street Gang, East Side Money Gang and the Boylston Street Gang, were responsible for fueling a gun and drug pipeline across a number of cities and towns in eastern Massachusetts.  During the course of the investigation, over 70 firearms were seized.

The charge of RICO conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to distribute cocaine and cocaine base provides for a maximum sentence of twenty years, a minimum of three years and up to life of supervised release and a fine of $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; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal for the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley made the announcement. The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments. Lelling’s Organized Crime and Gang Unit is prosecuting the case.

BOSTON – Two Lowell men were indicted today in federal court in Boston for heroin and fentanyl trafficking.

Joshua Ramos-Rios, 30, and Anderson Daniel Jorge Cruz, 20, were indicted for conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and fentanyl. Ramos-Rios and Jorge Cruz were arrested on Jan. 23, 2019, and charged by complaint. They have been in custody since.

According to the charging documents, on Jan. 23, 2019, federal, state, and local law enforcement seized over one kilogram of suspected heroin and fentanyl from Ramos-Rios and Jorge Cruz in an undercover operation. Ramos-Rios is currently on parole in Massachusetts for drug and firearm offenses, and Jorge Cruz has an outstanding warrant for homicide in Allentown, Pennsylvania.

The charge of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years of supervised release, and a fine of $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; Lowell Police Superintendent Raymond Kelly Richardson; 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 documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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

BOSTON – Two Dominican nationals were indicted today in federal court in Boston for heroin trafficking.

Angel Martinez-Peguero, 27, and his brother Alexander Martinez-Peguero, 38, both of whom resided in Lawrence, were charged with conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin. Angel Martinez-Peguero was additionally charged with possession of a firearm in furtherance of a drug trafficking crime. The brothers will be arraigned at a later date set by the court.

According to the charging documents, on Dec. 20, 2018, investigators seized nearly one kilogram of heroin from the Martinez-Peguero brothers during a law enforcement operation in Lawrence. Investigators also seized a loaded semi-automatic pistol from Angel Martinez-Peguero’s waistband upon his arrest.

The charge of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin carries a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of $5 million. The charge of possession of a firearm in furtherance of a drug trafficking crime provides for a mandatory minimum sentence of five years in prison to be served consecutive to any sentence imposed for the underlying drug trafficking crime. 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 documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON - A Rhode Island man was sentenced today in federal court in Boston for bank robbery.

Stephen A. Davidow, 55, of Pawtucket, R.I., was sentenced by U.S. District Court Chief Judge Patti B. Saris to seven years in prison, three years of supervised release, and ordered to pay restitution of $8,817. In September 2018, Davidow pleaded guilty to four counts of bank robbery.

Between Dec. 6 and Dec. 11, 2017, an individual, later identified as Davidow, robbed four banks in the Greater Boston area. Based on the physical location of the banks, surveillance footage, the bank tellers’ descriptions of the robber, and other similarities, law enforcement determined that the same individual was involved in each robbery. On Dec. 15, 2017, having distributed images of the alleged perpetrator to the local news, law enforcement received a tip that the suspect was Davidow. Photos of Davidow were shown to one of the tellers who positively identified Davidow as the man who robbed the bank.   

During the time of the robberies, Davidow was on supervised release for a 2007 bank robbery conviction in Rhode Island. Davidow was located and was arrested on Dec. 18, 2017, in Massachusetts on a Rhode Island federal warrant and has been in custody since his arrest.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; John Gibbons, U.S. Marshal for the District of Massachusetts; Boston Police Commissioner William Gross; and Boston University Police Chief Kelly A. Nee made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.

BOSTON – A Lynn man pleaded guilty yesterday in federal court in Boston to multiple drug charges associated with his distribution of heroin and fentanyl, which led to the 2017 overdose death of a Melrose resident.

Yeffry Reynoso, a/k/a Chris, 27, pleaded guilty to one count of conspiring to distribute at least 100 grams of heroin and at least 40 grams of fentanyl in 2016 and 2017. Reynoso also pleaded guilty to six counts of distributing heroin or fentanyl on various dates in 2017. U.S. District Judge Nathaniel M. Gorton scheduled sentencing for May 9, 2019.

According to court documents, Reynoso admitted that he sold and directed others to sell on his behalf small, retail quantities (typically approximately .25 to .30 grams in a plastic baggie) of heroin, heroin mixed with fentanyl, and/or fentanyl to numerous individuals in Lynn, Melrose, Saugus, Peabody, Malden, and the surrounding areas. Reynoso admitted that he sold the drugs to his customers on an almost daily basis and that he directed others who worked for him to deliver the drugs. Reynoso further admitted that he sold heroin and heroin mixed with fentanyl to a customer in Melrose after being told by her friend not to do so, and that the customer overdosed and died after using the drugs he provided.

Reynoso faces a mandatory minimum sentence of five years and up to 40 years in prison, supervised release for at least four years and up to life, and a fine of $5 million. Pursuant to the plea agreement, the parties will recommend to the Court a sentence of at least nine years but not more than 14 years in prison. Judge Gorton deferred acceptance of the plea agreement until the sentencing hearing.

United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today.  Assistant U.S. Attorney James E. Arnold of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case. 

BOSTON - A Lowell man pleaded guilty yesterday in federal court in Boston to a masked and armed bank robbery.

Jason M. Nobles, 37, pleaded guilty to one count of armed bank robbery. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 7, 2019. Nobles is currently in federal custody.

On Feb. 26, 2018, a masked individual, later identified as Nobles, entered a branch of the Santander Bank in Swansea, approached a teller’s station, brandished what appeared to be a black semi-automatic pistol, pointed the pistol at the bank’s tellers and demanded cash. Throughout the robbery, Nobles pointed the weapon at the tellers ordering them to hurry up and threatening to shoot them. The tellers handed Nobles cash from their drawers, and Nobles fled the bank. A post robbery audit determined that Nobles stole approximately $15,000.

Bank employees witnessed Nobles depart the bank, run to a neighboring parking lot, and leave the area in a gray Toyota SUV. The employees were able to provide law enforcement with a vehicle description and the physical description of the robber. Law enforcement across multiple towns worked together to locate the Toyota SUV, stop it, and detain the driver - Nobles - who matched the description of the robber given by the bank’s employees. Later, when law enforcement executed a search of the vehicle, they found a large sum of money and a black Sig Sauer semi-automatic pellet gun.

The charge provides for a sentence of no greater than 25 years in prison and five years of supervised release. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Bristol County District Attorney Thomas M. Quinn; Swansea Police Chief George Arruda; and Rehoboth Police Chief James J. Trombetta made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.

BOSTON – A Holland man pleaded guilty today in federal court in Worcester to drug and money laundering charges.

Peter Molle Jr., 36, pleaded guilty to two counts of manufacturing marijuana and possessing marijuana with intent to distribute and one count of money laundering. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for April 29, 2019. Molle was arrested in December 2017. 

In February 2017, federal agents executed a search warrant at Molle’s residence in Holland where they discovered a commercial-style marijuana grow operation with more than 100 marijuana plants. Even after the execution of the search warrant, Molle continued to engage in substantial black-market marijuana cultivation. In December 2017, agents executed another search warrant at Molle’s house and again located a significant commercial-style marijuana grow operation. The investigation also found that Molle used cash derived from the sale of marijuana to pay for expenses relating to his marijuana business, including to pay down the balance on a credit card that he used to purchase marijuana-related cultivation supplies.

Molle faces a minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million on the drug charges. The charge of money laundering provides for a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

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

BOSTON – A Dominican national was sentenced yesterday for his role in a conspiracy to distribute fentanyl. 

Julio Cesar Baez, 50, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 30 months in prison and three years of supervised release. In November 2018, Baez pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute more than 400 grams or more of fentanyl, and one count of possession with intent to distribute and distribution of more than 400 grams of fentanyl.

According to court records, as part of an ongoing drug trafficking investigation, law enforcement agents intercepted telephones used by Wareng Jhonny Villar-Ortiz and another member of the conspiracy, both of whom are also Dominican nationals, and determined that Villar-Ortiz was a mid-level drug distributor, who had received a kilogram of drugs in late January 2018. In February 2018, Villar-Ortiz was dissatisfied with the quality of the drugs and made arrangements to return the drugs. On Feb. 14, 2018, agents observed Villar-Ortiz’s supplier exit Villar-Ortiz’s apartment building, get into his car, and drive off. A short while later, agents observed Baez exit the vehicle and enter a second vehicle. Law enforcement officers then stopped the second vehicle and seized approximately 789 grams of fentanyl from Baez.

According to court records, Baez was as a runner responsible for delivering fentanyl from the supplier. Three other members of the conspiracy, including Villar-Ortiz, have been convicted in connection with the investigation, but have not yet been sentenced.

United States Attorney Andrew E. Lelling; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement.  Valuable assistance was provided by the Boston, Ipswich, and Arlington Police Departments.  Assistant U.S. Attorney James E. Arnold of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.

BOSTON – A retired Massachusetts State Police Trooper pleaded guilty yesterday in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP). 

Daren DeJong, 57, of Uxbridge, pleaded guilty to one count of embezzlement from an agency receiving federal funds. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for May 1, 2019. DeJong was arrested on July 25, 2018, and indicted on Sept. 6, 2018. 

DeJong, who is currently retired, was a Trooper assigned to Troop E, which is responsible for enforcing criminal law and traffic regulations along the Massachusetts Turnpike, Interstate I-90. DeJong received overtime pay for hours that he either did not actually work at all, or shifts in which he departed one to seven hours early.   

The conduct involves overtime pay for selective enforcement initiatives, including the Accident and Injury Reduction Effort program (AIRE) and the “X-Team” initiative. Both initiatives are intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers and targeting vehicles traveling at excessive speeds. DeJong was required to work the entire duration of the shifts – either four or eight hours – and truthfully report the date, time and sector of deployment on the citations issued during the shift. DeJong concealed the fraud by submitting citations that were issued outside the overtime shift, altered the citations to create the appearance that citations were issued during the overtime shift, and/or submitted citations that were never issued and never took place. 

Trooper DeJong earned $200,416 in 2016, which included approximately $68,394 in overtime, of which more than $14,000 was attributable to AIRE and X-Team shifts that DeJong either left early or did not show up for.

In 2015 and 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants. 

Thus far, eight MSP troopers have been charged in the ongoing investigation, seven of whom have pleaded guilty or have agreed to do so.

The charge of theft of government funds 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 gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit are prosecuting the case.

BOSTON – A Lynnfield woman was sentenced today in federal court in Boston for filing false tax returns, on which she claimed, among other things, more than $370,000 in mortgage interest deductions, even though the loan was in default and the property had gone into foreclosure.

Karyn M. Ingram, 51, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to three years of probation with the first six months be served in community confinement, and ordered to pay $177,852 in restitution. In August 2018, Ingram pleaded guilty to three counts of filing false tax returns for tax years 2011, 2012 and 2013.

Ingram filed tax returns in which she reported false and inflated Schedule A deductions and in one year, a Schedule C business loss, in order to reduce her overall tax liability. For example, for tax years 2010 and 2011, Ingram filed returns claiming mortgage interest deductions of $45,072 and $371,427, but she had not made any mortgage payments since 2008; in fact, the loan had defaulted, and the property had gone into foreclosure. She also claimed real estate tax deductions in those same tax years, when, in reality, the real estate taxes had been paid by the mortgage lender and not by Ingram. By falsifying the deductions and losses, Ingram fraudulently reduced her tax liability by more than $126,000.

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 Sandra S. Bower of Lelling’s Criminal Division prosecuted the case.

BOSTON – A Lowell man agreed to plead guilty yesterday in federal court in Boston to distributing fentanyl.

Edilberto Calle-Alvarez, 24, pleaded guilty to conspiracy to distribute and possess with intent to distribute fentanyl and distribution and possession with intent to distribute fentanyl. U.S. District Court Judge Leo T. Sorokin deferred acceptance of the plea until sentencing, which is scheduled for April 22, 2019.

Calle-Alvarez was arrested on Oct. 4, 2018, along with dozens of others as part of a federal drug, firearms, and immigration sweep in and around the City of Lawrence. On Aug. 2, 2018, Calle-Alvarez sold approximately 20 grams of fentanyl to an undercover police officer as part of the investigation. The arrests were part of the Department of Justice’s Project Safe Neighborhood Initiative (PSN), which aims to bring together all levels of law enforcement to reduce violent crime.

The charges of conspiracy to distribute and possess with intent to distribute fentanyl and distribution and possession with intent to distribute fentanyl each carry a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon 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, New England Division; and Lowell Police Superintendent Raymond Kelly Richardson made the announcement today. Assistant U.S. Attorney Philip Cheng of Lelling’s Criminal Division is prosecuting the case.

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

BOSTON – A retired Massachusetts State Police Lieutenant pleaded guilty today in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).

Former Lieutenant David Wilson, 58, of Charlton, pleaded guilty to one count of embezzlement from an agency receiving federal funds. U.S. District Court Judge Richard G. Stearns scheduled sentencing for May 2, 2019. In June 2018, Wilson was arrested and charged by criminal complaint.

Wilson, who served as the Officer-in-Charge of several overtime shifts, received overtime pay for shifts from which he left early or did not work at all.   

The conduct involves overtime pay for selective enforcement initiatives, specifically the Accident and Injury Reduction Effort program (AIRE), which is intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers and targeting vehicles traveling at excessive speeds. Wilson was required to work the entire duration of the four hour shift and truthfully report the date, time and sector of deployment on the citations issued during the shift. During the plea, Wilson admitted that he had been paid for hours he did not work, and for overtime shifts he did not work at all. Wilson concealed his fraud by submitting false paperwork and citations that were issued outside the overtime shifts that had been altered to create the appearance that they were issued during overtime shifts. 

In 2016, Lt. Wilson earned approximately $259,475, which included approximately $102,062 in overtime pay, a portion of which included pay for AIRE shifts. During that year, the investigation revealed that Lt. Wilson earned approximately $12,450 in overtime pay for 124.5 AIRE overtime hours that he did not work.

In 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants. 

The charge of theft of government funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. Pursuant to the plea agreement, the government has agreed to recommend a sentence of not more than 12 and not less than six months in prison.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General, made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit are prosecuting the case.

BOSTON – A former Quincy man, who had been a fugitive for more than 20 years prior to his arrest in April 2017, was sentenced today in federal court in Boston in connection with a $1.9 million real estate investment fraud scheme in Quincy. 

Scott J. Wolas, 69, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 81 months in prison, three years of supervised release and ordered to pay $1,949,813 in restitution to the victims of his fraud scheme. Judge Saylor also ordered Wolas to pay restitution of $69,768 to Social Security and Medicare and $318,266 to the IRS. In June 2018, Wolas pleaded guilty to seven counts of wire fraud, one count of aggravated identity theft, misuse of a Social Security number and tax evasion.

From at least 2009 through 2016, Wolas, using the name Eugene Grathwohl, operated a real estate business known as Increasing Fortune Inc. and worked as a licensed real estate agent for Century 21 in Quincy. From 2014 through 2016, he solicited investments for the development of the Beachcomber Bar property on Quincy Shore Drive and for the construction of a single-family home on the adjacent property. He collected more than $1.9 million from at least 24 investors and promised each of them a significant return on their investments. He further promised to pay out at least 125% of the profits related to the single-family home construction.  However, Wolas used the money mostly for personal expenses unrelated to development of the real estate projects.

Wolas was scheduled to close on the Beachcomber property on Sept. 15, 2016. A week before, however, he left Quincy and ceased all contact with his then-girlfriend, his co-workers, and his investors. Law enforcement then discovered that Grathwohl was actually Wolas, a former lawyer who had been a fugitive since 1997 after being charged with fraud and grand larceny in New York. The real Eugene Grathwohl resided in Florida and was known to Wolas.

On Nov. 17, 2016, law enforcement officers interviewed Wolas’ ex-wife, Cecily Sturge, of Delray Beach, Fla., who stated that she had not been in contact with her ex-husband for approximately 15 years. Sturge continued to say that this was so, despite evidence of contact between her cell phone and one known to belong to Wolas that demonstrated more recent communication between the two.

After further investigation, Wolas was arrested on April 7, 2017, at a condominium he was renting in Delray Beach, Fla. Investigators learned that Wolas had first rented a room in the condo from Nov. 12 through Nov. 21, 2016, through an online rental website in the name of Cecily Sturge. Messages exchanged between the condo owner and Sturge depicted a photo of Sturge and messages claiming that Wolas (using the name Cameron Sturge) was Sturge’s brother and a retired paleontologist in need of a place to stay. The owner of the condo told authorities that Sturge and Wolas arrived at the condo together in the same car on Nov. 12, 2016, five days before Sturge’s interview with law enforcement.  

Sturge was divorced from Wolas in 2001 by default judgment in Palm Beach County, Fla. In February 2017, Sturge filed a petition to modify the judgment in order to obtain the contents of Wolas’ retirement account, which had a balance of approximately $647,000, from the New York law firm where he worked prior to being indicted in 1997 by New York authorities. In pleadings filed in February and March 2017 regarding that matter, Sturge swore that Wolas’ whereabouts were unknown to her, despite telephone records showing frequent contact between the two. In addition, copies or drafts of documents filed in the Florida proceeding, along with a thumb drive, were found in the room where Wolas was arrested. Wolas later admitted that he drafted the pleadings that Sturge filed. The United States previously obtained a court order freezing the retirement account pending the resolution of the criminal proceedings.

Sturge previously pleaded guilty to making a materially false statement to a federal agent and was sentenced in May 2018 to one year of probation.

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; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorneys Sandra S. Bower of Lelling’s Criminal Division and David G. Lazarus of Lelling’s Civil Division prosecuted the case.

BOSTON – Two Dominican nationals were arrested yesterday and charged with heroin trafficking.

Angel Martinez-Peguero, 27, and his brother Alexander Martinez-Peguero, 38, both of whom resided in Lawrence, were arrested and charged by criminal complaint with conspiracy to distribute and to possess with intent to distribute controlled substances. Angel Martinez-Peguero was additionally charged with possession of a firearm in furtherance of a drug trafficking crime. They will appear in federal court in Boston this afternoon.

According to charging documents, on Dec. 20, 2018, investigators seized approximately one kilogram of suspected heroin from the Martinez-Peguero brothers during a law enforcement operation in Lawrence. Investigators also seized a loaded semi-automatic pistol from Angel Martinez-Peguero’s waistband upon his arrest.

The charge of conspiracy to distribute and to possess with intent to distribute controlled substances a sentence of no greater than 20 years in prison, a fine of $1 million, and at least three years of supervised release. The charge of possession of a firearm in furtherance of a drug trafficking crime provides for a minimum mandatory sentence of five years in prison to be served consecutive to any sentence imposed for the underlying drug trafficking crime. 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 Massachusetts State Police Superintendent Colonel Kerry Gilpin 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 documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON - Eight members of a drug trafficking organization operating between Springfield, Mass., and Barre, Vt., were indicted in federal court in Springfield in connection with a drug conspiracy involving money laundering and illegal firearms trafficking. A Hampden County Superior Court employee was also charged in the indictment.

The following eight individuals were charged in a 24 count superseding indictment unsealed today in connection with a heroin trafficking conspiracy. Each of the defendants were charged with conspiracy to distribute heroin, cocaine, and crack cocaine. Six of the defendants are alleged to have engaged in money laundering offenses, two of the defendants allegedly conspired to engage in the unlicensed dealing of firearms, and a Hampden County Superior Court employee is alleged to have made false statements to federal agents in connection with the investigation. Four of the defendants are already in federal custody having been originally charged and arrested on Jan. 12, 2018; three defendants were arrested today and one is a fugitive.

1. Nia Moore-Bush, also known as “Nia Dinzey,” 28, of Springfield, currently in federal custody;
2. Dinelson Dinzey, 35, of Springfield, currently in federal custody;
3. Jamieson Gallas, 37, of Barre, currently in federal custody;
4. Tracy Parsons, 46, of Barre, currently released on conditions pending trial;
5. Daphne Moore, 55, of Springfield, was arrested today;
6. Oscar Rosario, 33, of Springfield, was arrested today;
7. Luis Niko Santos, 24, of Springfield; is a fugitive; and
8. Amanda Atkins, 35, of Barre, was arrested today.

According to court documents, the organization was trafficking heroin and cocaine base from Springfield to central Vermont. It is alleged that Moore-Bush and Dinzey obtained narcotics in the Springfield area and transported the narcotics to Vermont themselves or via couriers and distributed the drugs in the Barre area, where drug prices are much higher than in Springfield. 

It is further alleged that Moore-Bush, Dinzey, Parsons, Gallas, Moore, and Atkins laundered the proceeds of the drug conspiracy through bank accounts held by Moore in trust for Moore-Bush. The organization allegedly made cash deposits in Vermont, and Moore-Bush and Moore facilitated the withdrawal of those funds from the accounts in Massachusetts. It is further alleged that Moore-Bush and Dinzey conspired to launder drug proceeds through the purchase of an Audi vehicle. 

The superseding indictment also alleges that Moore-Bush and Dinzey conspired to engage in the unlicensed dealing of firearms. Moore-Bush allegedly sold two firearms on Feb. 16, 2017, and four firearms on May 5, 2017. Dinzey is charged with the conspiracy and assisting in the May 5, 2017, firearms sale. According to court documents, federal law enforcement traced all six firearms involved in these two sales to individuals connected to Vermont or New Hampshire. Both Moore-Bush and Dinzey are also charged with being felons in possession of the firearms they sold on May 5, 2017, or aiding and abetting that offense. Court records indicate that Dinzey has at least two prior felony drug convictions.

Finally, the superseding indictment charges Moore with making three false statements to federal agents on Jan. 12, 2018. Court records reveal that Moore is Moore-Bush’s mother and an assistant clerk magistrate at Hampden Superior Court in Springfield. Moore-Bush and Dinzey were residing with Moore at the time of their arrest on Jan. 12, 2018. Moore allegedly falsely stated that she did not know where Moore-Bush conducted her banking when, in fact, she knew that Moore-Bush used accounts held in Moore’s name in trust for Moore-Bush. She also falsely stated that she did not know that individuals from Vermont had been at her house and the whereabouts of a black Audi when, in fact, Moore had met and interacted with individuals from Vermont at her home and knew that Moore-Bush had sold the black Audi.

Conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base provides for a mandatory minimum 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. Dinzey and Gallas, who each have at least one prior felony drug conviction, face mandatory minimum sentences of 20 years and up to life in prison, a minimum of 10 years of supervised release, and a fine of up to $20 million. The charge of conspiring to distribute and possess with intent to distribute 28 grams or more of cocaine base provides for a mandatory minimum sentence of five years and no greater than 40 years in prison, at least four years of supervised release, and a fine of up to $5 million.  For Santos, who has at least one prior felony drug conviction, the narcotics counts against him provide for a sentence of no greater than 30 years in prison, at least six years of supervised release, and a fine of up to $2 million. The narcotics charges against Rosario and Moore provide for sentences of no greater than 20 years in prison, at least three years of supervised release, and a fine of up to $1 million. Each money laundering charge carries a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. The charges of conspiring to engage in the unlicensed dealing of firearms and engaging in the unlicensed dealing of firearms each carry a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of up to $250,000. The charge of making false statements to a federal agent provides for a sentence of up to five years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Kristina O'Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Valuable assistance was provided by the Massachusetts State Police, the Vermont State Police, and the Montpelier (VT) and Barre (VT) Police Departments. Assistant U.S. Attorney Katharine A. Wagner of Lelling’s Springfield Branch Office is prosecuting the cases.

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

BOSTON – A nurse at the Department of Correction’s Massachusetts Alcohol and Substance Abuse Center (MASAC) in Plymouth, was arrested yesterday and charged with distribution of Suboxone strips to inmates in that facility.

Julie Inglis-Somers, 39, of Kingston, Mass., was arrested yesterday in Jacksonville, Fla. after fleeing the District of Massachusetts last week. She is charged by criminal complaint with one count of distribution of a controlled substance. She will appear for a detention hearing this afternoon in the Middle District of Florida.

According to charging documents, on or about Nov. 18, 2018, and Dec. 4, 2018, Inglis-Somers provided Suboxone to two inmates at MASAC. Suboxone, a Class III controlled substance used to treat heroin addiction, is sometimes misused to get high. Suboxone is a coveted contraband in prisons across the nation and is particularly popular in New England. 

MASAC is one of five facilities in Massachusetts where, under Massachusetts General Laws, a state court judge can send a person who the judge has determined to be a danger to self or others due to substance abuse. MASAC is the only such facility overseen by the Massachusetts Department of Corrections. 

The charge of distribution of a controlled substance provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $500,000. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Thomas A. Turco III of the Massachusetts Department of Correction made the announcement today. The FBI Jacksonville (FL) Field Division and the Suwannee County (FL) Sheriff’s Office provided assistance with the arrest. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption and Special Prosecutions Unit is prosecuting the case.

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

BOSTON – A New Jersey firefighter and a Puerto Rican man were convicted by a federal jury in Worcester yesterday in connection with a heroin conspiracy.

Ivan Cruz-Rivera, 50, of Dorado, P.R., and Carlos Jimenez, 52, of Englishtown, N.J., were each convicted after a 12-day trial of one count of possession with intent to distribute heroin and distribution of more than 100 grams of heroin, and one count of conspiracy to possess with intent to distribute heroin and to distribute heroin; Cruz-Rivera was found responsible for more than 100 grams of heroin with regards to the conspiracy charge. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Cruz-Rivera and Jimenez for March 20, 2019, and April 24, 2019, respectively.

On Oct. 4, 2013, federal agents were surveilling garages on Union Street in Leominster where they believed drugs were being sold. The agents observed two men in a Lexus with New Jersey plates entering the property and leaving over 90 minutes later. After the Lexus left, an individual at the garage sold heroin to a cooperating source for $7,500. 

A law enforcement officer subsequently followed the Lexus and stopped the vehicle in Sturbridge after the driver committed a traffic violation. The trooper observed that the driver and passenger were visibly nervous – the driver’s hands were trembling and the passenger was avoiding eye contact and fidgeting. The driver provided the trooper with a New Jersey license and conspicuously displayed his firefighter badge, which identified him as Carlos Jimenez, and the passenger, Cruz-Rivera, presented a Puerto Rican identification card. When questioned about the purpose of the trip to Massachusetts, Jimenez gave conflicting answers and said that they had just come from Lawrence. Jimenez denied having weapons or drugs in the car, but indicated that his passenger had some cash in the car. When Cruz-Rivera was questioned about transporting large sums of cash in the car, he gave evasive answers before finally stating that there was $1,000 in the car. After Jimenez consented to a vehicle search, the trooper found $44,000 in a black bag in the back seat of the Lexus. 

The cash was seized, but Jimenez and Cruz-Rivera were released. Subsequently, a cooperating witness provided law enforcement with information regarding Jimenez and Cruz-Rivera’s drug trafficking activity. In approximately 2012, the cooperating witness began purchasing heroin from Cruz-Rivera. On Oct. 4, 2013, Jimenez told the cooperator that he drove for the drug delivery because it was less likely that he would get in trouble if they were pulled over because he was a firefighter.

Both defendants face a mandatory minimum sentence of five years and no greater than 40 years in prison, four years of supervised release, and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; 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; Worcester Police Chief Steven M. Sargent; Fitchburg Police Chief Ernest Martineau; Leominster Interim Police Chief Michael Goldman; and Lunenburg Police Chief James P. Marino made the announcement today. Assistant U.S. Attorneys Michelle L. Dineen Jerrett and William F. Abely of Lelling’s Worcester Branch Office are prosecuting the case.

BOSTON – A former Boston Police Officer was sentenced today in federal court in Boston with illegally purchasing two firearms on behalf of acquaintances. 

Adarbaad Karani, 38, of West Roxbury, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to three months in prison and one year of supervised release. In September 2018, Karani was convicted following a five-day jury trial of two counts of making a false statement during the purchase of firearms and two counts of making a false statement in a record.

On two different occasions, in November 2014 and September 2015, Karani acted as the “straw purchaser” of two firearms, a Glock, model 27, .40 caliber pistol and a Glock, model 30S, .45 caliber pistol, which he purchased for two acquaintances. Karani purchased the firearms, which cannot be acquired by civilians, using his police identification and falsely certified that the firearms were for his official police use. During one purchase, Karani also indicated that the firearm was not for resale. One of the firearms that Karani purchased was subsequently stolen from the person on whose behalf Karani bought the gun. The firearm was recovered by law enforcement during the arrest of Desmond Crawford, an alleged member of the Columbia Point Dawgs.

Straw purchases interfere with firearm regulation and recordkeeping, and federal law prohibits making false statements to a firearms dealer in connection with the sale of a firearm.

United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit prosecuted the case.

BOSTON – An Abington man was sentenced yesterday in federal court in Boston for fentanyl distribution. 

Edrick Firmin, 21, was sentenced by U.S. District Court Judge William G. Young to 15 months in prison and three years of supervised release. In October 2018, Firmin pleaded guilty to distributing fentanyl. In August 2018, Firmin was arrested and charged with 28 others as part of Operation Landshark.

On June 15, 2018 and June 19, 2018, Firmin distributed less than four grams, in total, of fentanyl to a cooperating witness in Brockton. The government also alleged that Firmin was an associate of the Cubs gang in Brockton.

Operation Landshark was a federal investigation that targeted impact players and repeat offenders in Brockton and Boston, who have prior convictions for acts of violence. It is alleged that many of the defendants charged in Operation Landshark were in the top 30 criminal offenders responsible for violent acts and firearms in Brockton.

Of the 29 defendants arrested, 23 were charged federally and six were charged with state drug and firearm offenses. 

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; Suffolk County District Attorney John D. Pappas; Boston Police Commissioner William Gross; and Brockton Police Chief John Crowley made the announcement today. The investigation was conducted by the FBI’s North Shore Gang Task Force and Southeastern Massachusetts Gang Task Force. Valuable assistance was provided by the Suffolk County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth and Essex County Sheriff’s Offices; Massachusetts Department of Corrections; U.S. Parole Commission; U.S. Postal Inspection Service; and the U.S. Secret Service. The state cases are being prosecuted by the Plymouth County District Attorney’s Office and Suffolk County District Attorney’s Office.

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

BOSTON – A Spencer man was arrested today and charged in federal court in Worcester with cocaine distribution.

Melvin Burgos, 33, was charged by criminal complaint with possessing approximately one kilogram of cocaine with intent to distribute. He will appear in federal court in Worcester later today.

According to the charging documents, in late October 2018, Burgos made arrangements to obtain cocaine, sell it, and then transport the proceeds to New York. On Nov. 1, 2018, law enforcement stopped the vehicle Burgos was driving and seized approximately one kilogram of cocaine. 

It is alleged that Burgos also asked another individual to obtain a sample of pills containing fentanyl, which Burgos planned to provide to one of his partners. Burgos allegedly stated that if the pills were of good quality, his partner would buy 1,000. According to the charging documents, Burgos contemplated being able to earn up to $10,000 a month selling these pills, but predicted that it was also possible to go to jail without bail.

Burgos faces a mandatory minimum sentence of five years and up to 40 years in prison, minimum of four years and up to a lifetime of supervised release, and a fine of $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. The Massachusetts Attorney General’s Office and the Massachusetts State Police provided valuable assistance to the investigation. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.

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

BOSTON – A Revere man was charged today in federal court in Boston with distributing 40 grams or more of fentanyl.

Jassiel Ramirez, 24, was indicted on three counts of possession with intent to distribute and distribution of 40 grams or more of fentanyl. Ramirez was arrested in October and charged by criminal complaint; he has been in custody since his arrest on Oct. 11, 2018. 

It is alleged that from at least Sept. 13, 2018, through Oct. 11, 2018, Ramirez distributed fentanyl in Salem. 

The charge of distribution of 40 grams or more of fentanyl carries a minimum mandatory sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Assistance was provided by the Salem Police Department. Assistant U.S. Attorney Alathea E. Porter of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.

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

BOSTON – A Salvadoran national was sentenced yesterday in federal court in Boston for unlawfully possessing a firearm and illegal reentry the United States after being deported.

Oscar Ramos, 30, a Salvadoran national who previously resided in Maryland, was sentenced by U.S. District Court Judge Indira Talwani to one year and one day in prison and three years of supervised release. Following the completion of his sentence, Ramos will be placed into removal proceedings and deported to El Salvador. In October 2018, Ramos pleaded guilty to being an illegal alien in possession of a firearm and illegal reentry after deportation.

Ramos was previously ordered deported from the United States in 2009. However, sometime after his removal, he reentered the United States, and in December 2013, he was arrested in Chelsea for possessing a loaded Smith and Wesson .38 caliber revolver and a knife. Upon his arrest, Ramos admitted to being a member of MS-13. Ramos was charged in Chelsea District Court with carrying the loaded firearm and released on $1,000 bail. Ramos then failed to appear for a court date in January 2014 and was a fugitive until he was arrested on March 2, 2018, in Baltimore, Md., on the outstanding warrant. Ramos has been detained in federal custody since that arrest. 

United States Attorney Andrew E. Lelling; Harold H. Shaw, 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; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney John P. Pappas; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Gross; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement today. The U.S. Marshals Service has provided crucial assistance with the case.

BOSTON – A Lawrence man was charged today in federal court in Boston with distributing 100 grams or more of heroin.

Orlando Breton Mercado, 43, was indicted by a federal grand jury for distribution of and possession with intent to distribute 100 grams or more of heroin. Mercado was originally arrested and charged by criminal complaint on Nov. 20, 2018, and has been in custody since.

According to the charging documents, in July 2018, federal agents began investigating Mercado for drug trafficking, and on Nov. 20, 2018, they conducted an undercover controlled purchase from Mercado of nearly one kilogram of heroin. Mercado was subsequently arrested.

The charge of distribution of 100 grams or more of heroin carries a minimum mandatory sentence of five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistance was provided by the Salem Police Department. Assistant U.S. Attorney Alathea E. Porter of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.

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

BOSTON – A U.S. Postal Service (USPS) employee was charged yesterday in federal court in Boston with embezzling over $18,000.

Rashayna Seney, 25, of Randolph, was charged in an Information with one count of embezzlement and theft of public money, property or records.

According to the charging document, Seney began working for USPS around 2016, most recently as a Sales & Service Distribution Associate at the Waban Post Office. In this role, Seney had the ability to issue foreign and domestic postal money orders. Seney engaged in a scheme in which she issued money orders to friends and then voided the transactions so that her friends could deposit the orders without ever paying for them. Additionally, Seney used counterfeit bills in exchange for some money orders that her associates then cashed. It is alleged that Seney’s scheme cost the USPS over $18,000.

The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, and a $250,000 fine 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; Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office; Joseph W. Cronin, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions 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 member of MS-13’s Eastside Locos Salvatrucha (ESLS) clique was sentenced yesterday in federal court in Boson for his role in a 2014 murder.

Luis Solis Vasquez, a/k/a “Brujo,” 27, a Salvadoran national, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 35 years in prison and five years of supervised release. In April 2018, Solis Vasquez and co-defendants Noe Salvador Perez Vasquez, a/k/a “Crazy,” 27, a Salvadoran national, and Hector Enamorado, a/k/a “Vida Loca,” 39, a Honduran national, were convicted by a federal jury of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy, and of committing or knowingly participating in murder as part of the racketeering conspiracy. Perez Vasquez was also found guilty of conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine and conspiracy to possess with intent to distribute and to distribute marijuana. Perez Vasquez and Enamorado were both previously sentenced to life in prison.

On Dec. 14, 2014, Solis Vasquez, Perez Vasquez and Enamorado conspired to murder a 29-year-old man in Chelsea, Mass. Enamorado and the victim had engaged in a gang-related fight the night before the murder, and when Enamorado encountered the victim again the following night, Enamorado called Perez Vasquez and asked him for a gun. Perez Vasquez delivered the murder weapon, a .380 caliber pistol, to Enamorado in Chelsea. Solis Vasquez also armed himself with a gun and went with Enamorado into the victim’s apartment to provide backup and necessary support for the attack. Enamorado used Perez Vasquez’s gun to fatally shoot the victim three times. Enamorado also shot and wounded a second victim who was inside the apartment at the time of the murder.

Solis Vasquez was one of 49 defendants convicted as part of this case. All nine defendants who went to trial were convicted and 40 others pleaded guilty. In all, 16 defendants, including Solis Vasquez, were found to have committed or knowingly participated in murders.

United States Attorney Andrew E. Lelling; Harold H. Shaw, 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; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney John P. Pappas; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Gross; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement today. The U.S. Marshals Service has provided crucial assistance with the case.

BOSTON – A Leominster woman was sentenced on Friday, Dec. 14, 2018, in federal court in Worcester for stealing Social Security and Veterans Affairs benefits.   

Joyce Progin, 71, was sentenced by U.S. District Court Judge Timothy S. Hillman to time served, three years of supervised release, and ordered to pay restitution of approximately $325,245. In August 2018, Progin pleaded guilty to two counts of theft of public funds. She was arrested and charged in January 2018.

In November 2009, Progin’s former father-in-law passed away. At the time of his death, the father-in-law was receiving monthly retirement benefits from Social Security and monthly benefits from the Department of Veterans Affairs. Neither agency was advised of his death and continued to deposit his benefit payments into a bank account he held jointly with Progin, who was his caregiver. Although she admitted knowing that she was not entitled to the money, from November 2009 through March 2017, Progin received approximately $55,267 in Social Security benefits, and from November 2009 through November 2017, she received approximately $269,978 in benefits from the Department of Veterans Affairs, in total, stealing over $300,000 in public funds.

United States Attorney Andrew E. Lelling; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Sean Smith, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.

BOSTON - A Westfield man was charged in federal court in Springfield today in connection with a scheme to obtain bank loans and money for projects in Saudi Arabia.

Hanibal Tayeh, 58, was charged in a superseding indictment with two counts of bank fraud, 10 counts of wire fraud, four counts of money laundering, and one count of making a false bankruptcy declaration. Tayeh was originally charged and arrested in July 2018 and released on personal recognizance.

According to the charging documents, Tayeh is alleged to have used fake documents, misrepresentations, and a number of corporate entities to obtain a $9.1 million loan package, and later a $400,000 extension of credit, from a bank. A number of the fake documents and misrepresentations pertained to a business venture Tayeh was pursuing in Saudi Arabia. It is further alleged that Tayeh financially defrauded three individuals by providing them with fake documents and by making misrepresentations about construction projects he was pursuing in Saudi Arabia. Tayeh is accused of laundering the proceeds of his fraud schemes through payments made to third parties for his personal obligations. Finally, Tayeh was charged with making a false statement during a bankruptcy proceeding when he allegedly denied knowledge of a fake letter of credit that he created.

The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a $1 million fine. The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a $250,000 fine. The charge of money laundering provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a $250,000 fine. The charge of false bankruptcy declaration provides for a sentence of no greater than five years in prison, three years of supervised release, and a $250,000 fine. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Harold H. Shaw, 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 Investigation in Boston, 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 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 owner and four former employees of New England Compounding Center (NECC) were convicted today by a federal jury for their roles at NECC, the company that caused the 2012 nationwide fungal meningitis outbreak. The outbreak was the largest public health crisis ever caused by a pharmaceutical drug. With today’s convictions, 11 former owners, executives, and employees of NECC have been convicted of federal criminal charges. 

“These defendants were professionals who acted recklessly to the extreme detriment of public health,” said United States Attorney Andrew Lelling. “Over the course of years, the defendants callously disregarded patient health by cutting corners and prioritizing profits over safety. And they got away with it by defrauding federal and state regulators. The result was contaminated, deficient, deadly drugs that never should have been made or distributed. Ultimately, the jury found the defendants’ fraudulent conduct wrong and deserving of punishment. I applaud the prosecutors and the investigative team on their dogged determination to bring us another step closer to justice for the victims and their families.”

“A key aspect of the FDA’s mission is to ensure that drugs are made under high quality conditions to prevent patient harm due to poorly compounded products,” said FDA Commissioner Scott Gottlieb, M.D. “This episode was a tragic reminder of why compounding and compounded drugs can present serious risks to patients. We’ve taken significant new steps to ensure the quality of compounded drugs and improve patient safety, in order to prevent another calamity like the episode involving NECC. However, we continue to see significant risk associated with some compounded drugs, and firms that produce and ship drugs in bulk without any regard for product quality and patient safety. We’re increasing our oversight in this space to crack down on activity that puts patients at risk. At the same time, we’re continuing to advance new policies to help responsible firms that are seeking to stay in compliance with quality standards find efficient ways to meet those requirements.”

“These defendants callously ignored their professional responsibilities to protect patient safety,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division. “Their failure to safeguard the public played a significant role in the distribution of medicines that were harmful. The FBI will continue to work with our law enforcement partners to combat fraud and abuse in the health care system, so that we can do everything we possibly can to protect the American public from harm.”

Following an 8-week trial, the following defendants were found guilty by a federal jury:

Gene Svirskiy, 37, of Ashland, Mass., a former NECC clean room pharmacist, who supervised NECC’s production of high-risk heart medications, was convicted of racketeering, racketeering conspiracy, 10 counts of mail fraud, and two counts of introduction of adulterated drugs into interstate commerce with intent to defraud or mislead. Judge Richard G. Stearns scheduled Svirskiy’s sentencing for March 11, 2018. Svirskiy faces a sentence of no greater than 20 years in prison.

Christopher Leary, 34, of Shrewsbury, Mass., an NECC clean room pharmacist, was convicted of three counts of mail fraud, one count of introduction of adulterated drugs into interstate commerce with intent to defraud or mislead, and two counts of introduction of misbranded drugs into interstate commerce. Leary’s sentencing is scheduled for March 14, 2018. Leary faces a sentence of no greater than 20 years in prison.

Sharon Carter, 54, of Hopkinton, Mass., NECC’s former director of operations, was convicted of conspiracy to defraud the United States.  Carter’s sentencing is scheduled for March 21, 2018. She faces a sentence of no greater than five years in prison.

Alla Stepanets, 38, of Framingham, Mass., one of NECC’s verification pharmacists, was convicted of six counts of introduction of misbranded drugs into interstate commerce. Sentencing is scheduled for March 26, 2018. She faces a sentence of no greater than one year in prison.

Greg Conigliaro, 53, of Southborough, Mass., a former owner of NECC, was convicted of conspiracy to defraud the United States. Judge Stearns scheduled Conigliaro’s sentencing for March 28, 2018. He faces a sentence of no greater than five years in prison.

Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Joseph Evanosky, 46, of Westford, Mass., a former clean room pharmacist, was acquitted.

In 2012, 753 patients in 20 states were diagnosed with a fungal infection after receiving injections of preservative-free methylprednisolone acetate (MPA) manufactured by NECC. Of those 753 patients, the U.S. Centers for Disease Control and Prevention (CDC) reported that 64 patients in nine states died. The government has since identified a total of 793 patients throughout the country harmed by NECC’s contaminated MPA. More than 100 patients have now died.

The criminal investigation revealed that in addition to the contaminated MPA, NECC’s other pharmacists, including Svirskiy and Leary, knowingly made and sold numerous drugs in a similar unsafe manner and in insanitary conditions. The unsafe manner included, among other things, the pharmacists’ failure to properly sterilize NECC’s drugs, failure to properly test NECC’s drugs for sterility, and failure to wait for test results before sending the drugs to customers. They also approved the use of expired drug ingredients, and the mislabeling of those drugs in order to deceive customers. The insanitary conditions included, among other things, NECC’s lack of proper cleaning and NECC’s failure to take any action when its own environmental monitoring repeatedly detected mold and bacteria within NECC’s clean rooms throughout 2012. 

NECC repeatedly took steps to shield its operations from regulatory oversight by the FDA by claiming to be a pharmacy dispensing drugs pursuant to valid, patient-specific prescriptions. In fact, NECC routinely dispensed drugs in bulk without valid prescriptions. Despite this practice, Conigliaro, an owner of NECC, repeatedly misrepresented to the FDA and the Massachusetts Board of Pharmacy that NECC was only dispensing drugs pursuant to patient-specific prescriptions. Carter, NECC’s director of operations, directed employees to engage in a number of fraudulent prescription schemes to deceive regulators by creating the appearance that NECC had prescriptions for the drugs it was selling. To that end, defendant Stepanets, one of NECC’s verification pharmacists, was convicted of approving shipments of drugs for patients with names such as Wonder Woman, Fat Albert, Bud Weiser, Samuel Adams, Hindsight Man, Betty Ford, Jimmy Carter, Bill Clinton, Donald Trump, Calvin Klein and Jennifer Lopez. 

“Today’s verdicts demonstrate the ongoing commitment of the Defense Criminal Investigative Service (DCIS) to ensure the integrity of TRICARE, the U.S. Defense Department’s health care program,” stated Special Agent-in-Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. “DCIS will continue to work with its law enforcement partners and the U.S. Attorney's Office to identify individuals and companies who disregard laws and regulations involving pharmaceuticals and, in so doing, endanger the health and safety of U.S. military members and their families.”

“It is appalling that NECC staff engaged in this blatant fraudulent activity with such reckless disregard for patient safety,” said Sean Smith, Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division. “This verdict should send a clear message to individuals and businesses that VA OIG and its law enforcement partners will vigorously investigate healthcare fraud that puts the public and veterans at risk.”

“Today’s verdicts demonstrate the commitment of the U.S Postal Inspection Service to bring justice to those who put our customers, the American public, at risk,” said U.S. Postal Inspection Service’s Inspector in Charge, Joseph W. Cronin of the Boston Division. “The cooperation and hard work of our fellow law enforcement agencies and the Department of Justice illustrates the common mission of protecting our citizens.”

In June 2017, Barry Cadden, the former owner and head pharmacist for NECC, was sentenced to nine years in prison and three years of supervised release after being convicted of racketeering, racketeering conspiracy, mail fraud and introduction of misbranded drugs into interstate commerce with the intent to defraud and mislead. In January 2018, Glenn Chin, NECC’s former supervisory pharmacist, was sentenced to eight years in prison and two years of supervised release after being convicted of 77 counts.

Two remaining defendants, Kathy Chin, and Michelle Thomas, of Cumberland, R.I., both of whom were former verification pharmacists, are scheduled to stand trial on March 25, 2019.

U.S. Attorney Lelling, FDA Commissioner Gottlieb, M.D., FBI SAC Shaw, DCIS SAC Barzey, VA OIG SAC Smith, and Inspector Cronin made the announcement today.  Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of Lelling’s Criminal Division prosecuted the case.

BOSTON – A Canadian national who worked as an accountant for a Massachusetts company was sentenced today in federal court in Boston for stealing nearly $600,000 from her employer.

Thanh Tam Tao Huynh, a/k/a Tiffany Huynh, 30, most recently of Quincy, Mass., was sentenced by U.S. District Court Judge Denise J. Casper to 30 months in prison and ordered to pay restitution of $588,278. Huynh will be deported upon completion of her sentence. In June 2018, Huynh pleaded guilty to two counts of wire fraud.

Huynh was employed as the accountant/bookkeeper by her employer from approximately March 2016 through December 2017. Huynh used her position and access to the company’s bank accounts to wire about $425,000 from a company account held by the Royal Bank of Canada to accounts in the United States that Huynh and her associates controlled. She also used a company credit card to make unauthorized purchases for herself and her friends. To conceal her actions, Huynh provided her employer with false balance information for the Canadian account and withheld the personal charge information from the credit card statements she submitted for review. In total, Huynh defrauded her employer of approximately $588,278.

United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Securities and Financial Fraud Unit prosecuted the case.

BOSTON – A Pennsylvania man pleaded guilty yesterday in federal court in Boston in connection with a scam in which he and co-conspirators defrauded victims by pretending to be employees of the Securities and Exchange Commission (SEC). 

Frank Gregory Cedeno, 27, of Mahanoy City, Penn., pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering. U.S. District Court Senior Judge George A. O’Toole, Jr. scheduled sentencing for March 21, 2019.  In January 2018, Cedeno was charged and arrested.

From at least November 2015 through November 2017, Cedeno conspired with others to defraud victims by pretending to be employees of the SEC, demanding money from victims and directing them to send it to members of the conspiracy, including Cedeno, who was then living in Ocoee, Fla. The conspirators who received the money generally withdrew it from bank accounts quickly, then forwarded much of it to individuals in the Dominican Republic. In one common version of the scam, victims received e-mails that used official-seeming documentation and the SEC seal to induce the victim to pay a fee in order to receive a portion of a legal settlement. In another version, victims received e-mails and official-seeming documents labeling the victim a defendant in a civil lawsuit, in which the victim owed tens of thousands of dollars in supposed disgorgement, penalties and fees. The documents gave the victim a choice of either appearing in court to contest the lawsuit or paying a smaller fee.

In August 2018, co-conspirator Leonel Alexis Valerio Santana, 28, of Boston, was sentenced to 63 months in prison, three years of supervised release, and ordered to pay restitution of $105,869 after pleading guilty to his role in the scheme.

The charge of conspiracy to commit wire fraud provides for a sentence no greater than 20 years in prison, three years of supervised release, a fine of up to $250,000, or twice the gross gain or loss in the offense, and restitution. The charge of money laundering conspiracy 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 funds involved in the money laundering, whichever is greater. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Carl W. Hoecker, Inspector General of the U.S. Securities and Exchange Commission’s Office of Inspector General; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Brian A. Pérez-Daple of Lelling’s Criminal Division is prosecuting the case.

BOSTON – A Milford woman was sentenced today in federal court in Boston for stealing approximately $2.6 million from her employer and using the money to purchase luxury items at Boston-area boutiques.

Debra Mulloy, a/k/a Debra Depaul, 58, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 69 months in prison, three years of supervised release and ordered to pay restitution in the amount of $2,654,346.  In July 2018, Mulloy pleaded guilty to two counts of wire fraud and one count of aggravated identity theft.

From 2004 through 2016, Mulloy was responsible for most of the financial and organizational duties at the company for which she was employed. On multiple occasions from April 2012 to December 2016, Mulloy used the company’s credit card account in the name of another employee to make hundreds of unauthorized charges totaling nearly $2.4 million. Most of those unauthorized purchases were for clothing, furs, and jewelry at boutique stores in the Boston area. Mulloy then sold many of the luxury items at consignment shops. As part of her scheme, Mulloy also caused company checks to be issued for her personal benefit, primarily to pay her personal credit card bills. In total, Mulloy defrauded her employer of approximately $2.6 million.  

United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Securities and Financial Fraud Unit prosecuted the case.

BOSTON – A suspended Massachusetts State Police Trooper pleaded guilty today in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).

Eric Chin, 46, of Hanover, pleaded guilty to one count of embezzlement from an agency receiving federal funds. U.S. District Court Judge Richard G. Stearns scheduled sentencing for March, 20, 2018. In October 2018, Chin was charged by Information and agreed to plead guilty pursuant to a plea agreement.

Chin was an MSP Trooper assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. In 2016, Chin earned $302,400, which included approximately $131,653 in overtime pay. 

Chin was paid for overtime shifts that he did not work at all or from which he left early. Chin concealed his fraud by submitting fraudulent citations designed to create the appearance that he had worked overtime hours that he had not, and falsely claimed in MSP paperwork and payroll entries that he had worked the entirety of his overtime shifts.

Chin admitted collecting $7,125 for overtime hours that he did not work. 

The overtime in question involved the Accident and Injury Reduction Effort program (AIRE), which was intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers who were to target vehicles traveling at excessive speeds. 

In 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants.

Chin is the fifth Trooper to plead guilty as a result of the ongoing investigation. On July 2, 2018, former Trooper Gregory Raftery, 47, of Westwood pleaded guilty; on Sep. 14, 2018, suspended Trooper Kevin Sweeney, 40, of Braintree pleaded guilty; on Oct. 11, 2018, suspended Trooper Gary Herman, 45, of Chester, pleaded guilty; and, on Nov. 28, 2019, former Trooper Paul Cesan pleaded guilty.

The U.S. Attorney’s Office announced earlier today that David Wilson and Daren DeJong, who were each previously charged on June 27, 2018, and July 25, 2018, respectively, have agreed to plead guilty. Dates for those plea hearings have not yet been set.          

Pursuant to Chin’s plea agreement, the government will recommend a sentence of between six and 12 months of incarceration. The charge of theft of government funds 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 gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.    

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit are prosecuting the case.

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

BOSTON – The former chairman of a Boston-based biomedical company, previously called Endeavor Power Corp., was sentenced today for making false statements to the U.S. Securities and Exchange Commission (SEC) in connection with the SEC’s investigation into a scheme to defraud the market for Endeavor’s publicly traded stock.  

Edward Withrow III, 53, of Malibu, Calif., was sentenced by U.S. District Court Chief Judge Patti B. Saris to five months of home detention, five years of probation and ordered to pay a fine of $10,000. In May 2018, he pleaded guilty to one count of making false statements. In October 2015, Withrow and Marco Babini, 57, who is believed to reside in Vancouver, Canada, were charged in an indictment. Babini remains at large and is charged with one count of conspiracy, one count of securities fraud and two counts of wire fraud.

By March 2013, the SEC had suspended trading in the securities of Endeavor, but they continued to investigate through at least August 2013. Withrow provided sworn testimony to the SEC relating to questions about who owned approximately 40 million unrestricted shares of Endeavor’s stock (i.e., shares that can be freely bought and sold in the securities market), and whether Withrow ever tried to determine who owned those shares. Withrow admitted that he misled the SEC about his knowledge of these Endeavor shares—most of which had been stashed in Switzerland—and Babini’s association with those shares.

United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. SEC Attorney Eric A. Forni, who was appointed as a Special Assistant U.S. Attorney, is prosecuting the case.

The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Massachusetts State Police Trooper was arrested and charged today, and two previously charged retired State Troopers agreed to plead guilty in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).

Heath McAuliffe, 40, of Hopkinton, was arrested this morning and charged in a criminal complaint with embezzlement from an agency receiving federal funds. McAuliffe will appear in federal court in Boston later today.

As alleged in court documents, McAuliffe was an MSP Trooper assigned to Troop E, which is responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. McAuliffe allegedly received overtime pay for hours that he either did not actually work at all, or shifts in which he departed one to four hours early.   

The alleged conduct involves overtime pay for selective enforcement initiatives, including the Accident and Injury Reduction Effort program (AIRE). That initiative was intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers and targeting vehicles traveling at excessive speeds. McAuliffe was required to work the entire duration of the four hour shift and truthfully report the date, time and sector of deployment on the citations issued during the shift. As alleged, McAuliffe concealed his fraud by submitting citations that were issued prior to the overtime shift, altered the citations to create the appearance that citations were issued during the overtime shift, and/or submitted citations that were never issued to drivers. 

Trooper McAuliffe earned $164,680 in 2016, including approximately $60,908 in overtime, and earned $180,215 in 2015, including approximately $83,496 in overtime.  According to court documents, between Aug. 1, 2015, and Aug. 31, 2016, McAuliffe was paid $9,825 for AIRE overtime hours that he did not work. 

In addition, retired Troopers David Wilson, 58, of Charlton, and Daren DeJong, 57, of Uxbridge, both agreed to plead guilty pursuant to plea agreements filed today. Wilson and DeJong were arrested and charged on June 27, 2018, and July 25, 2018, respectively, with embezzlement from an agency receiving federal funds. A date for the plea hearings has not yet been scheduled. 

In 2016, Wilson, a lieutenant, earned approximately $259,475, which included approximately $102,062 in overtime pay. Wilson has agreed to plead guilty to having been paid $12,450 for overtime hours that he did not work. Pursuant to the plea agreement, the government will recommend a sentence of between six months and 12 months of incarceration. 

In 2016, DeJong earned $200,416, which included approximately $68,394 in overtime pay. DeJong has agreed to plead guilty to having been paid $14,062.50 for overtime hours that he did not work. Pursuant to a plea agreement, the government will recommend a sentence of between six months and 12 months of incarceration. 

In 2015 and 2016, MSP received annual benefits from the U.S. Department of Transportation in excess of $10,000, which were funded pursuant to numerous federal grants. 

McAuliffe is the eighth MSP trooper charged in the ongoing investigation. Seven troopers have pleaded guilty or have agreed to do so. On July 2, 2018, former Trooper Gregory Raftery, 47, of Westwood pleaded guilty; on Sept. 14, 2018, suspended Trooper Kevin Sweeney, 40, of Braintree pleaded guilty; on Oct.11, 2018, suspended Trooper Gary Herman, 45, of Chester, pleaded guilty; on Nov. 28, 2019, former Trooper Paul Cesan pleaded guilty; and suspended Trooper Eric Chin, 46, of Hanover, is scheduled to plead guilty today.

The charge of theft of government funds 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 gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit are prosecuting the case.

BOSTON - A Dominican national was sentenced yesterday in federal court in Boston for illegally possessing a firearm and ammunition.            

Carmito Martinez, 26, a Dominican national formerly residing in Roslindale, was sentenced by U.S. District Judge George A. O’Toole to 16 months in prison and two years of supervised release. Martinez will face deportation proceedings upon completion of his sentence. In October 2018, Martinez pleaded guilty to possession of a firearm and ammunition by an alien unlawfully present in the United States.

On Aug. 31, 2017, deportation officers went to Martinez’s last known address in Roslindale to take Martinez into custody for deportation purposes. When Martinez exited the house, law enforcement ordered him to stop and show his hands. Martinez removed a dark colored object from his waistband, threw the object behind a fence, and took off running. After Martinez was apprehended, the object he had thrown was located and determined to be a Smith and Wesson Model 422 .22 caliber long riffle. The weapon had one round in the chamber and seven rounds in the magazine, and the safety was not engaged. Further investigation revealed that the recovered weapon had been stolen. It is a violation of federal law for an alien in the country without legal authority to possess a firearm or ammunition.   

United States Attorney Andrew E. Lelling and Peter C. Fitzhugh made the announcement. Valuable assistance was provided by the Boston Police Department. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.

BOSTON - A Burlington man pleaded guilty yesterday in federal court in Boston to illegally possessing 30 pieces of ammunition.

Brendan Sheils, 32, pleaded guilty to one count of being a felon in possession of ammunition. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for March 18, 2019.   

On Feb. 22, 2018, police received information that Sheils was in possession of an Uzi bump stock weapon and that he desired to attack the Burlington Police Department. On Feb. 23, 2018, police executed a search warrant at Sheils’ residence, where they recovered a total of 30 pieces of ammunition, as well as an AR-15 type rifle that was determined to be a “ghost gun,” which is made when an individual buys component parts and then assembles the pieces together.  The rifle was loaded with 28 of the pieces of ammunition.

The firearms 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 United States Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, Woburn Police Chief Robert J. Ferullo Jr.; and Burlington Police Chief Michael Kent made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.