District of Massachusetts

BOSTON – A former Senior Vice President at Bank of America and her husband were sentenced in federal court in Boston for embezzling more than $2.7 million from the bank using fraudulent donations to non-profit organizations. 

Palestine Ace, a/k/a Pam Ace, 45, a former Senior Vice President of Bank of America’s Global Wealth & Investment Management Division, was sentenced on Nov. 14, 2018, by U.S. District Court Judge Allison D. Burroughs to one year and one day in prison, two years of supervised release and ordered to pay restitution of $2,778,000.  Her husband, Jonathan R. Ace, 46, was sentenced yesterday by Judge Burroughs to two years in prison, two years of supervised release and ordered to pay restitution of $1,855,000. In February 2018, Palestine Ace pleaded guilty to one count of conspiracy to commit bank fraud, five counts of wire fraud, and 12 counts of bank fraud; Jonathan Ace pleaded guilty to one count of conspiracy to commit bank fraud, three counts of wire fraud, and one count of engaging in an unlawful monetary transaction.

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

Palestine and Jonathan Ace used a portion of the funds they embezzled from Bank of America to support their lifestyle and pay for personal expenses, including lavish birthday parties and the purchase of a $17,000 Kawasaki motorcycle. 

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

BOSTON – A Salvadoran national was charged in federal court in Boston in connection with a law enforcement seizure of 15 kilos of fentanyl discarded on the side of a road in Sturbridge.

Nelson Garcia Martinez, 37, a Salvadoran national residing in Stockton, Calif., was charged with one count of distribution of 400 grams or more of fentanyl. Garcia Martinez is in custody pending a detention and probable cause hearing.

According to the charging document, Garcia Martinez was arrested on Nov. 13, 2018, after federal agents conducting surveillance at a rest stop in Sturbridge allegedly observed Garcia Martinez meet with two unidentified individuals outside of Garcia Martinez’s tractor trailer. When the two unidentified individuals left the area, law enforcement attempted to stop their vehicle, but they fled. When they did finally pull to the side of the road, the passenger exited the car and discarded a vacuum sealed garment bag and then fled into the surrounding woods, while the driver of the car left the scene at high speed. The garment bag burst open on the ground, and agents recovered 15 kilograms of a substance that tested positive for fentanyl. Garcia Martinez consented to a search of his tractor trailer, where vacuum sealed bags matching the one discarded on the side of the road were recovered.

Law enforcement were led to Garcia Martinez after discovering a phone number, allegedly later determined to be associated with Garcia Martinez, that was believed to be used by a drug transporter related to an October 2018 seizure of 32 kilos of fentanyl in Methuen.

Garcia Martinez faces a mandatory minimum sentence of 10 years and up to life in prison, at least five years and up to a lifetime of supervised release, and a fine of up to $10 million. He will also be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Andrew E. Lelling 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 Massachusetts State Police and the Somerville, Medford, Boston, Ipswich, and Arlington Police Departments. Assistant U.S. Attorney Katherine Ferguson 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 federal grand jury has indicted a Mexican national in connection with a murder aboard a fishing vessel off the coast of Massachusetts.

Franklin Freddy Meave Vazquez, 27, was indicted today on one count of murder in the second degree, one count of attempted murder, and one count of assault with a dangerous weapon. Meave Vazquez was arrested and charged by complaint on Sept. 24, 2018, and has been detained since.

On Sept. 23, 2018, the fishing vessel, Captain Billy Haver, was sailing approximately 55 miles off the coast of Massachusetts with seven crew members aboard, including Meave Vazquez. It is alleged that at some point in the afternoon, Meave Vazquez assaulted a crew member on board with a hammer in one hand and a knife in the other. The victim then saw that another crew member was lying on the deck bleeding. Meave Vazquez then struck a third crew member with the hammer. It is further alleged that Meave Vazquez then climbed up the mast of the ship as the others onboard tried to capture him.

The captain of the ship placed a call on the distress channel, to which a German cruise ship, the Mein Schiff 6, responded. Two of the wounded were taken aboard the cruise ship, where one victim was pronounced dead by the ship’s doctor.

According to court documents, Meave Vazquez is illegally present in the United States. On March 9, 2018, he was arrested in Newport News, Va., for abduction by force, intimidation, or deception, and released on bond.

The charge of second degree murder provides for a sentence of up to life in prison, five years of supervised release, and a fine of $250,000. The charge of attempted murder 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 assault with a dangerous weapon provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Vazquez will be subject to deportation proceedings upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Richard D. Cox, Special Agent in Charge of the U.S Coast Guard Investigative Services Northeast Region; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorneys Christine Wichers and Laura J. Kaplan of Lelling’s Criminal Division are prosecuting the case.

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

BOSTON – The leader of MS-13’s Eastside Loco Salvatrucha (ESLS) clique was sentenced today in federal court in Boston for RICO conspiracy.   

Edwin Guzman, a/k/a “Playa,” 32, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 16 years in prison and three years of supervised release. In February 2018, Guzman and two other MS-13 members, Herzzon Sandoval, a/k/a “Casper,” 36, and Erick Argueta Larios, a/k/a “Lobo,” 33, 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. A fourth MS-13 member, Cesar Martinez, a/k/a “Cheche,” 37, was convicted at the same trial of conspiracy to possess with intent to distribute 500 grams or more of cocaine.

According to court documents, MS-13 was identified as a violent transnational criminal organization whose branches, or “cliques,” operate throughout the United States, including in Massachusetts. MS-13 members are required to commit acts of violence, specifically against rival gang members, to gain membership in and be promoted within the gang. Guzman and Sandoval were the leaders, also known as the “first word,” and “second word,” of the ESLS clique in Massachusetts.

On Sept. 20, 2015, Joel Martinez, a/k/a “Animal,” murdered a 15-year-old boy in East Boston. On Jan. 8, 2016, as a reward for the 2015 murder, Joel Martinez was promoted by the gang to “homeboy” status with a 13-second beat-in by other MS-13 members at an ESLS meeting that Guzman, Sandoval, Martinez and Argueta Larios attended. 

In May 2018, Joel Martinez was sentenced to 40 years in prison and two years of supervised release after pleading guilty to RICO conspiracy involving murder. In October 2018, Sandoval was sentenced to 20 years in prison and two years of supervised release. Argueta Larios and Martinez are scheduled to be sentenced on Nov. 19, 2018, and Nov. 28, 2018, respectively.

Guzman 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 Joel Martinez, 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 dual citizen of Iran and Canada was sentenced yesterday in federal court in Boston for international money laundering.

Omid Mashinchi, 35, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to two years in prison, one year of supervised release, ordered to pay a $20,000 fine, and a personal money judgment of approximately $7,616. In July 2018, Mashinchi pleaded guilty to five counts of international money laundering. He was charged in a sealed indictment in January 2018 and arrested in April 2018, when he flew to the United States; he has been in federal custody since.

On five occasions in 2017, Mashinchi transferred funds from a bank in Vancouver, British Columbia, Canada, to a bank in Boston knowing that the money was derived from drug trafficking. On Jan. 28, Mashinchi transferred $37,794; on July 28 he made two transfers, one for $49,915 and another for $49,445; and on Aug. 3, he made two more transfers, one for $49,930 and another in the amount of $49,645.

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

BOSTON – An Uxbridge doctor and her former employee were arrested today and charged in federal court in Boston in connection with a federal drug conspiracy involving the amphetamine Adderall.

Leslie Caraceni M.D., 56, of Uxbridge, was indicted on one count of conspiracy to distribute and to possess with intent to distribute Adderall and three counts of distributing and dispensing Adderall. Rene Ruliera, 51, of Southborough, was indicted on one count of conspiracy to distribute and to possess with intent to distribute Adderall, and four counts of distributing and possessing with intent to distribute Adderall. Caraceni and Ruliera were arrested today and will appear in federal court in Boston this afternoon.

According to the indictment unsealed today, between March 2016 and February 2018, Caraceni and Ruliera conspired with one another and others to distribute Adderall, an amphetamine, for reasons other than for a legitimate medical purpose and not in the usual course of medical practice.

Each charge provides a sentence of no greater than 20 years in prison, at least three years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based 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; Uxbridge Police Chief Marc Montminy; and Southborough Police Chief Kenneth Paulhus made the announcement. Assistant U.S. Attorney Craig Estes 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 former senior managing director of State Street Corporation was sentenced today in federal court in Boston in connection with engaging in a scheme to defraud at least six of the bank’s clients through secret commissions applied to billions of dollars of securities trades. 

Edward Pennings, 47, of Surrey, England, a former senior managing director of State Street and the head of its Portfolio Solutions Group for Europe, the Middle East and Africa, was sentenced by U.S. District Court Judge Leo T. Sorokin to six months in prison. In June 2017, Pennings pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud.

In October 2018, co-defendant Ross McLellan, 47, of Hingham, was sentenced to 18 months in prison and two years of supervised release after being convicted by a federal jury of one count of conspiring to commit securities fraud and wire fraud, two counts of securities fraud and two counts of wire fraud. Richard Boomgaardt, 44, of Sevenoaks, England, a former managing director of State Street, who was charged separately for his involvement in the scheme, pleaded guilty in July 2017 to one count of conspiracy to commit securities fraud and wire fraud was sentenced in July 2018 to one year of probation.

Between February 2010 and September 2011, Pennings, McLellan, and Boomgaardt conspired to add secret commissions to fixed income and equity trades performed for six clients of the bank’s “transition management” business, which helps institutional clients move their investments between and among asset managers or liquidate large investment portfolios. The commissions were charged on top of fees that the clients had agreed to pay to the bank, and despite written instructions to the bank’s traders that generally reflected that the clients were not to be charged trading commissions. Pennings, McLellan, and Boomgaardt took steps to hide the commissions from the clients and others within the bank, including by directing that the commissions not be broken out in post-trade reports. 

In June 2011, when one of the affected clients inquired about whether it had, in fact, been charged commissions in breach of its agreement with the bank, Pennings initially denied that any commissions had been charged. Later, at McLellan’s direction, Pennings acknowledged only that “inadvertent commissions” had been applied to securities traded in the United States, but did not disclose that they had, in fact, been intentionally charged in both the United States and in Europe. Pennings and McLellan sought to mislead the bank’s compliance staff into believing that the commissions had been charged in error and that the amount of the overcharges was limited to the commissions applied on U.S. securities.

United States Attorney Andrew E. Lelling; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Valuable assistance was provided by the Securities & Exchange Commission and the Justice Department’s Office of International Affairs. Assistant U.S. Attorney Stephen E. Frank, Chief of Lelling’s Securities and Financial Fraud Unit, and Trial Attorney William Johnston of the Criminal Division’s Fraud Section prosecuted the case.

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

Patrick Lee, 45, formerly of Canton and Easton, pleaded guilty to wire fraud and making an unlawful monetary transaction. Chief U.S. District Judge Patti B. Saris scheduled sentencing for Feb. 28, 2019. Lee was extradited from Ireland to the United States last year to face the charges. It was Ireland’s first extradition to the United States since 2012.

Between July 2005 and May 2007, Lee engaged with others in a mortgage fraud scheme. Specifically, Lee or a relative bought five multi-family buildings in Dorchester and South Boston, financed those purchases with fraudulently obtained mortgage loans, and quickly converted the buildings to condominiums which facilitated the resale of individual units in the buildings to straw buyers. The straw buyers were recruited for this purpose and their purchases were financed with fraudulently obtained mortgage loans. The straw buyers were assured that they would not have to put any money down or pay the mortgages, and that they would get a fee at closing and/or a share of the profits when the properties were sold. The loans were funded with interstate wire transfers from the mortgage lenders to the closing attorneys’ conveyancing accounts, and the proceeds were then distributed to Lee and/or a family member, the recruiters, and others involved in the scheme. According to the government, mortgage lenders suffered losses of more than $1.5 million.

The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of unlawful monetary transactions 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 amount of criminally derived property. 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; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office, made the announcement today. Assistant U.S. Attorneys Sandra S. Bower and Christine Wichers of Lelling’s Criminal Division are prosecuting the case.

BOSTON – A Dominican national pleaded guilty and was sentenced today in federal court in Boston for illegally reentering the United States after being deported.

Rafael Alcantara, 45, a Dominican national residing in Dorchester, pleaded guilty to one count of illegal reentry of a deported alien before U.S. District Court Senior Judge Rya W. Zobel, who sentenced Alcantara to time served (approximately three and a half months) and one year of supervised release. Alcantara will be subject to deportation proceedings.

On July 26, 2018, law enforcement encountered Alcantara and determined him to be illegally present in the United States. Alcantara was previously deported on June 5, 2010.

United States Attorney Andrew E. Lelling and Todd M. Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Patrick Callahan of Lelling’s Criminal Division prosecuted the case.

BOSTON – A Dominican national was indicted today in federal court in Boston for distribution of fentanyl. 

Santo Eulgio Baez-Calbojal, 47, was indicted on one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl. Baez-Calbojal was arrested and charged by complaint in October 2018 during a federal law enforcement sweep in and around the City of Lawrence. He has been in custody since.

On Aug. 24, 2017, Baez-Calbojal is alleged to have sold 50 grams of fentanyl to an undercover officer working in Haverhill.     

The charge of distribution of and possession with intent to distribute 40 grams or more of fentanyl 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. 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 Haverhill Police Chief Alan DeNaro made the announcement. Assistance was provided by the Methuen Police Department. 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 defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A North Brookfield man was charged today in federal court in Worcester with unlawfully possessing firearms and ammunition.

Seth Decoteau, 36, was indicted on one count of possession of a firearm by a convicted felon and one count of possession of an unregistered firearm.

The indictment alleges that on June 8, 2018, Decoteau possessed a 20 gauge bolt action shotgun, a 12 gauge shotgun, a .22 caliber bolt action rifle, a short-barreled rifle, a silencer, and approximately 1,225 rounds ammunition. Decoteau is prohibited from possessing a firearm due to a prior felony conviction. 

The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, a minimum of one year and no greater than three years of supervised release, and a fine of up to $250,000. The charge of possession of an unregistered firearm provides for a sentence of no greater than 10 years in prison, a minimum of one year and no greater than three years of supervised release, and a fine of up to $10,000.  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; Lawrence J. Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and North Brookfield Police Chief of Police Mark Smith made the announcement. Assistant U.S. Attorneys Elysa Q. Wan, of Lelling’s Criminal Division, and Greg A. Friedholm, Chief of Lelling’s Worcester Branch Office, are prosecuting the case.

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

BOSTON – A Haverhill man was sentenced to probation today in federal court in Boston for robbing a branch of Santander Bank in Boston. At the time of his arrest, the defendant was on probation for a prior bank robbery conviction in federal court. The Government sought a sentence of more than 12 ½ years in prison.

Gregory Carter, 61, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to five years of probation and ordered to pay $6,129 in restitution. The Government had recommended a sentence of 151 months in prison. In August 2017, Carter pleaded guilty to one count of unarmed bank robbery. Carter was arrested and charged in May 2017. Since 1974, Carter has been sentenced to prison 10 times.

On March 25, 2017, an individual, later determined to be Carter, dressed in a black hat, ski mask, sunglasses, and wearing blue latex gloves entered a branch of the Santander Bank on Commonwealth Avenue in Boston. Once inside the bank, Carter passed a note to a teller indicating that he had a gun and demanded the bank’s money. The teller handed Carter $6,127, and Carter fled the bank.

Law enforcement collected the bank’s various surveillance camera footage and determined that Carter was the individual involved in the robbery. Carter, who, at the time of the robbery was on federal supervised release stemming from a 2003 bank robbery conviction, for which he received a 151 month federal prison sentence, has multiple prior criminal convictions and has been sentenced to prison 10 times since 1974.   

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Somerville Police Chief David Fallon; Haverhill Police Chief Alan DeNaro; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.

BOSTON - A Guatemalan national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.  

Julio Cantoral Monterroso, 39, a Guatemalan national previously residing in Great Falls, R.I., was sentenced by U.S. District Court Judge F. Dennis Saylor IV to seven months in prison. Monterroso will be subject to deportation upon completion of his sentence. In August 2018, Monterroso pleaded guilty today to one count of illegal reentry of a deported alien.

On May 17, 2018, law enforcement officers in Dedham encountered Monterroso and determined him to be illegally present in the United States. Monterroso was previously deported on Aug. 21, 2002, and again on May 12, 2011.

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

BOSTON – An employee of a Cambridge-based biopharmaceutical company was sentenced today in federal court in Boston for engaging in an insider trading scheme.

Songjiang Wang, 54, of Westford, the Director of Statistical Programming at a Cambridge-based biopharmaceutical company, was sentenced by U.S. District Court Judge Indira Talwani to six months in prison and one year of supervised release. Judge Talwani also ordered Wang to pay a $50,000 fine and scheduled a forfeiture and restitution hearing in the matter for Nov. 30, 2018. In July 2018, a federal jury convicted Wang of one count of conspiracy to commit securities fraud and two count of securities fraud. Co-defendant Schultz “Jason” Chan, 54, of Newton, the Director of Biostatistics at a different biopharmaceutical company, was convicted of one count of conspiracy to commit securities fraud and three counts of securities fraud. On Nov. 5, 2018, he was sentenced to three years in prison and one year of supervised release.

From August 2013 to September 2015, Wang and Chan, who were friends, conspired to commit securities fraud by trading insider information regarding successful clinical drug trials at their respective companies. Specifically, Wang traded on inside information Chan provided regarding a clinical study conducted by Chan’s employer. In addition, over a period of several months, Wang tipped Chan of clinical trial results for a drug being developed by his employer. Furthermore, Wang gave Chan cash, which Chan used to purchase stock shares of Wang’s employer. Chan subsequently sold those shares and paid back Wang.

United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities and Exchange Commission. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities and Financial Fraud Unit, and Assistant United States Attorney Kriss Basil, also of the Securities and Financial Fraud Unit, prosecuted the case.

A Dominican national illegally residing in the United States using false identities was sentenced today in federal court in Boston for passport fraud.

Alejandro Valera, 40, a Dominican national formerly residing in Mattapan, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to nine months in prison. Valera will be subject to deportation upon completion of his sentence. In August 2018, Valera pleaded guilty to knowingly making false statements in applying for a U.S. Passport.

 On Nov. 10, 2011, Valera, using the name, date of birth and Social Security number of a U.S. citizen from Puerto Rico, submitted a fraudulent application in which he also falsely stated that he had never used any other names or had ever previously applied for a passport. Valera had previously unsuccessfully applied for a passport in 2002 using the same false identity. According to court records, over the last 20 years, Valera has been convicted of numerous crimes in state court in Massachusetts under various false identities.

United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Theodore Merritt of Lelling’s Major Crimes Unit prosecuted the case.

BOSTON – A Salvadoran national pleaded guilty yesterday in federal court in Boston to illegal possession of a firearm and ammunition.

Juan Martinez Sola, 22, pleaded guilty to one count of being an illegal alien in possession of a firearm and ammunition. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 20, 2018. Martinez Sola was indicted in December 2017.

On Nov. 1, 2017, Martinez Sola, who unlawfully entered the United States in 2012, was arrested in possession of a loaded firearm in East Boston.

The charge of being an alien in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Martinez Sola will also face deportation proceedings upon completion of his sentence. 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; 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 Natick man was arrested today and charged in federal court in Boston in connection with possessing child pornography.

Joshua Bemis, 28, was charged with one count of possession of child pornography. He appeared in federal court in Boston today and was ordered detained pending a detention hearing.

According to court documents, federal authorities received information from law enforcement in the United Kingdom about an individual whose IP address was traced to Bemis’ Natick residence, who had posted child pornography on a photo sharing website. Law enforcement subsequently executed a search warrant where they seized a laptop computer and separate hard drive, both of which contained hundreds of videos of children, including some that depict the rape of children as young as seven-years-old.

Bemis faces a sentence of no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release, and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Natick Police Chief James G. Hicks made the announcement today. Assistant U.S. Attorney David G. Tobin is prosecuting the case.

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

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

BOSTON – A Chelsea woman was arrested yesterday and charged in connection with using her position as an airline gate agent to convert low cost flights to more expensive flights and destinations for friends, family and acquaintances. 

Tiffany Jenkins, 30, was charged in a criminal complaint unsealed yesterday with wire fraud. She was released on conditions following an initial appearance in federal court in Boston. 

The complaint alleges that as a gate agent, Jenkins had access to the airline company’s computer reservation database and had the ability to use a special code, referred to as an involuntary exchange or “INVOL,” to change flights for customers at no additional cost. This code enables agents to change flights for customers who miss their flights or experience a death in the family. 

During a 15-month period, from approximately July 1, 2016, through Sept. 27, 2017, Jenkins allegedly conducted approximately 505 involuntary ticket exchanges for more than 100 different passengers. Many of those exchanges occurred after the passenger was first booked on domestic flights at one of the airline company’s lowest available fares—often, roundtrip flights between Las Vegas, Nev., and Long Beach, Calif. A short time later, Jenkins exchanged those tickets for a completely different city pair, generally involving much more expensive international locations, for friends, family and acquaintances.

The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross loss or gain, 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; 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 Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit is prosecuting the case. 

BOSTON – A Dominican national was charged yesterday in federal court in Boston in connection with making false statements, stealing public money, and aggravated identity theft.  

Daniel Polonia Morillo, 57, a Dominican national residing in Lawrence, was indicted on one count of false statement on an application for Social Security benefits, one count of false statement in an application and use of a passport, two counts of theft of public money, and one count of aggravated identity theft. Polonia Morillo was arrested and charged by criminal complaint during an October 2018 federal law enforcement sweep in and around the City of Lawrence.

According to the charging documents, Polonia Morillo used the name, Social Security number, and date of birth of another individual to apply for Social Security benefits in December 2016. At the time he applied, Polonia Morillo produced a United States passport in the other person’s name as proof of his identity. In addition, Polonia Morillo is charged with stealing over $40,000 in Medicaid benefits from March 2012 through October 2018, and over $4,000 in Food Stamps from April 2015 through October 2018. 

Aggravated identity theft carries a mandatory sentence of two-years in prison that must run consecutively to any other sentence imposed, one year of supervised release, and a fine of $250,000. The charge of theft of public money 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, whichever is greater. The charge of false statement for Social Security benefits provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. The charge of false statement in an application of a passport provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $25,000. Polonia Morillo will be subject to deportation proceedings. 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; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Massachusetts State Auditor Suzanne M. Bump made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.

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

BOSTON – A Colombian national has been charged in federal court in Boston with illegally reentering the United States after deportation and immigration document fraud.

Guillermo Pineda Suarez, 56, was indicted on one count of illegal reentry of a deported alien, one count of possession and use of a false immigration document, and one count of false statements in an immigration document. Pineda Suarez is currently in state custody on unrelated charges.  

According to the indictment, on May 22, 2014, Pineda Suarez made a false statement under oath in a United States Citizenship and Immigration Services Form I-9 Employment Eligibility Verification Form and used a counterfeit U.S. Permanent Resident Card. It is further alleged that on March 15, 2018, Pineda Suarez was encountered by law enforcement in Boston and determined to be unlawfully present in the United States. Pineda Suarez was previously deported on Nov. 9, 2001. 

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

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

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

BOSTON – Two Dominican nationals pleaded guilty today to their roles in a conspiracy to distribute fentanyl. 

Angel Milciades Santana Polanco, 31, and Julio Cesar Baez, 49, pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute more than 400 grams or more of fentanyl. Baez also pleaded guilty to one count of possession with intent to distribute and distribution of more than 400 grams of fentanyl. U.S. District Court Judge F. Dennis Saylor IV scheduled Baez’s sentencing for Jan. 29, 2019, and Santana Polanco’s for Feb. 1, 2019. 

 According to court records, as part of an ongoing drug trafficking investigation, law enforcement agents intercepted telephones used by Wareng Jhonny Villar-Ortiz, 30, and Saul Martinez Escarfuller, 31, both of whom are also Dominican nationals, and determined that Villar-Ortiz was a mid-level drug distributor and that Martinez Escarfuller delivered a kilogram of drugs to Villar-Ortiz in late January 2018. In February 2018, Villar-Ortiz was dissatisfied with the quality of the drugs and made arrangements for Martinez Escarfuller to take them back. On Feb. 14, 2018, agents observed Martinez Escarfuller exit Villar-Ortiz’s apartment building, get into his car, and drive off. A short while later, Martinez Escarfuller stopped his car, and Baez exited the vehicle and entered a second vehicle. Law enforcement then stopped the second vehicle and seized approximately 789 grams of fentanyl from Baez.

In addition, the investigation revealed that Santana Polanco was typically a distributor for Villar-Ortiz, and that he also tested the quality of drugs received by Villar-Ortiz. 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. Agents subsequently obtained a search warrant for Villar-Ortiz’s residence and seized 978.6 grams of fentanyl from a hiding spot in the bathroom wall. 

Martinez Escarfuller and Villar-Ortiz have pleaded not guilty and are awaiting trial.

The charges of participating in a conspiracy to possess with intent to distribute at least 400 grams of fentanyl and to possess with intent to distribute at least 400 grams of fentanyl both provide for a sentence of at least 10 years and up to life in prison, up to a lifetime of supervised release, and a fine of up to $10 million. Santana Polanco and Baez will also face deportation proceedings upon completion of their sentences. 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 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.

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

BOSTON - A New York man, formerly residing in Massachusetts, pleaded guilty yesterday in federal court in Boston to failing to register as a sex offender.

Angel Luis Morales, 30, pleaded guilty to one count of failing to register as a sex offender before U.S. District Court Judge Indira Talwani, who scheduled sentencing for Feb. 7, 2019.

Between 2013 and 2014, Morales was convicted in Massachusetts of multiple sex offenses including open and gross lewdness and indecent assault and battery. These offenses involved multiple victims, and as a result, Morales was designated a Level III sex offender and required, among other things, to register for life with the Sex Offender Registry Board in any state in which he resided, worked, or attended school.

In 2017, Morales registered with the Sex Offender Registry Board in Massachusetts listing a Roxbury address. In March 2018, law enforcement in New York discovered that Morales had relocated to Rochester and had not updated his registration in New York or notified officials in Massachusetts of his relocation.

On May 18, 2018, Morales was arrested in Rochester and charged in the Western District of New York with failing to register as a sex offender. Morales was ordered detained without bail. He then requested that his case be transferred back to Massachusetts.

Morales faces a sentence of no greater than 10 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. 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; United States Attorney for the Western District of New York James P. Kennedy Jr.; John Gibbons, U.S. Marshal for the District of Massachusetts; and Rochester (N.Y.) Police Chief Mark Simmons made the announcement. Assistant U.S. Attorney Kenneth G. Shine is prosecuting the case.

BOSTON – A Roslindale man was sentenced yesterday in federal court in Boston for his role in a cocaine distribution operation on the South Shore.

Roberto Fonseca-Rivera, 43, was sentenced by U.S. District Court Judge Denise J. Casper to one year and one day in prison and three years of supervised release. On Sept. 11, 2017, Fonseca-Rivera pleaded guilty to conspiracy to possess with intent to distribute and to distribute cocaine

From January 2015 through July 18, 2016, Fonseca-Rivera and four co-defendants, Angel Morales, of Stoughton; Pablo Santiago-Cruz, of Roslindale; Carlos Reyes, of Framingham; and Jorge Montalvo, of Roxbury, received in the mail more than 30 suspicious packages believed to be cocaine. The packages were sent from Puerto Rico to various addresses in Canton, Stoughton, Quincy, and Framingham, where Fonseca-Rivera and Montalvo retrieved the packages for Morales and Montalvo, and Reyes retrieved the packages for Santiago-Cruz. 

On July 18, 2018, a law enforcement officer stopped a vehicle driven by Reyes and seized a kilogram of cocaine that was hidden inside a toy oven that was in the trunk of Reyes’ vehicle. The next day, agents executed a search warrant at Santiago-Cruz’s apartment in Roslindale. Upon hearing the agents knock and announce their presence, Santiago-Cruz attempted to flush approximately 93 grams of cocaine down the toilet. When agents attempted to subdue Santiago-Cruz, he physically resisted and struck several of the officers.

Agents also executed a search warrant at Morales’ apartment in Stoughton and seized approximately $11,000 in cash, more than 100 grams of cocaine, a firearm with an obliterated serial number, and two magazines containing 15 rounds of ammunition each, a box containing an additional 10 rounds of ammunition, and various drug trafficking paraphernalia.

All five defendants have been convicted as part of the investigation. Morales was sentenced on Sept. 17, 2017, to eight years in prison. Montalvo pleaded guilty on Oct. 26, 2018, and is scheduled to be sentenced on Jan. 24, 2019. Pablo Santiago-Cruz, pleaded guilty on Sept. 25, 2018, and is scheduled to be sentenced on Feb. 14, 2019. Carlos Reyes, was convicted by a federal jury on Oc. 2, 2018, and is scheduled to be sentenced on Feb. 8, 2019.

United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Norfolk County District Attorney Michael W. Morrissey; and Stoughton Police Chief Donna McNamara made the announcement today. Assistant U.S. Attorneys James E. Arnold and Craig E. Estes of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.

BOSTON - A Dominican national pleaded guilty today in federal court in Boston to illegally reentering the United States after being deported.  

Yerinaldo Arias Guzman, 31, pleaded guilty to one count of illegal reentry of a deported alien. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Feb. 6, 2019.

Law enforcement officers encountered Guzman on March 16, 2018, and determined him to be illegally present in the United States. Guzman was previously deported on June 20, 2017.

Guzman faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Todd M. Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.

BOSTON – An Orange, Mass., woman was arrested today and charged in federal court in Springfield in connection with stealing more than $65,000 in Social Security benefits.

Marie Coleman, 49, was charged in an indictment unsealed today with one count of concealing events affecting the right to payment of Social Security benefits. She will appear in federal court in Springfield this afternoon.

According to the indictment, Coleman served as the representative payee for an individual who was receiving Social Security benefits. Coleman failed to disclose that the individual stopped living with her in November 2008, and she continued to receive benefits on the individual’s behalf through January 2017. Coleman allegedly received more than $69,000 worth of Social Security benefits after the individual stopped living in her home.

The charge of concealing events affecting the right to payment of Social Security benefits provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Christopher Morgan of Lelling’s Springfield Branch Office is prosecuting the case.

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

BOSTON – An MS-13 member was sentenced today in federal court in Boston on charges of racketeering conspiracy involving murder. 

Jose Andrade a/k/a “Inocente,” 27, a Salvadoran national, was sentenced by U.S. District Court Judge F. Denis Saylor IV to 268 months in prison and three years of supervised release. Andrade will also be subject to deportation proceedings upon completion of his sentence. In March 2018, Andrade pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO, and conspiracy to distribute marijuana.

Andrade was a member of the Everett Locos Salvatrucha, or ELS clique, of MS-13. As part of his plea, Andrade admitted that his racketeering activity, on behalf of MS-13, including his involvement in the murder of a teenager who was associated with MS-13 and wrongly suspected by the gang of cooperating with law enforcement. On July 5, 2015, the victim was murdered in Lawrence by Josue de Paz, a/k/a “Gato,” and another MS-13 member. Evidence showed that Andrade was involved in planning the murder and shared the intent to have the victim killed. The evidence also showed that Andrade was part of the original plan to kill the victim, but was unable to participate in the murder because he was arrested in June 2015. The gang then recruited de Paz to commit the murder.    

Andrade was also charged with conspiracy to distribute marijuana after evidence revealed that he and other MS-13 members distributed marijuana on behalf of the gang. 

On July 8, 2015, de Paz was arrested in Somerville in a raid that resulted in the recovery of a firearm, several large knives, photographs of MS-13 members flashing gang signs, and a large volume of MS-13 paraphernalia, including blue and white hats, bandanas and rosary beads. De Paz pleaded guilty to RICO conspiracy involving murder and is awaiting sentencing.

Andrade 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 de Paz, 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 former Captain with the Bristol County Sheriff’s Office was sentenced today in connection with helping Carlos Rafael, known as the Codfather in the fishing industry, and the owner of one of the largest commercial fishing businesses in the U.S., smuggle the profits of his illegal overfishing scheme to Portugal.

Jamie Melo, 46, of North Dartmouth, Mass., was sentenced by U.S. District Court Judge Denise J. Casper to one year of probation, with the first eight months to be served in home confinement. In June 2018, Melo was convicted by a federal jury of one count of conspiracy to commit offenses against the United States and one count of structuring the export of monetary instruments. The jury acquitted Melo of one count of bulk cash smuggling.

During the trial, evidence showed that while at Logan International Airport Melo asked his friends and travel companions to carry envelopes of cash for Rafael on a flight to the Azores in Portugal. At the time, Melo was an Administrative Captain with the Bristol County Sheriff’s Office and was traveling to the Azores with Rafael for a charity event sponsored by the Bristol County Sheriff’s Office. Prior to the flight, Melo asked three of his travel companions to follow him into the men’s bathroom at Logan Airport before going through the TSA Security Checkpoint. In the bathroom, Melo distributed four envelopes of cash to his companions, taking one for himself. Two days after arriving in Portugal, bank records demonstrate that Rafael deposited $76,000 in U.S. currency into his Portuguese bank account.

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Mark Tasky, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Office of Investigations, Philadelphia Field Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Neil Gallagher and Justin O’Connell of Lelling’s Securities and Financial Fraud Unit prosecuted the case.

BOSTON – An employee of a Cambridge-based biopharmaceutical company was sentenced today in federal court in Boston for engaging in an insider trading scheme. 

Schultz “Jason” Chan, 54, of Newton, the Director of Biostatistics at a Cambridge-based biopharmaceutical company, was sentenced by U.S. District Court Judge Indira Talwani to three years in prison and one year of supervised release. Judge Talwani also ordered the defendant to either pay a fine or forfeiture of $65,000 and restitution to be determined at a later date. In July 2018, Chan was convicted by a federal jury of one count of conspiracy to commit securities fraud and three counts of securities fraud. Co-defendant Songjiang Wang, 54, of Westford, the Director of Statistical Programming at a different biopharmaceutical company, was convicted during the same trial of one count of conspiracy to commit securities fraud and two count of securities fraud. Wang is scheduled to be sentenced on Nov. 13, 2018.

From August 2013 to September 2015, Wang and Chan, who were friends, conspired to commit securities fraud by trading insider information regarding successful clinical drug trials at their respective companies. Specifically, Wang traded on inside information Chan provided regarding a clinical study conducted by Chan’s employer. In addition, over a period of several months, Wang tipped Chan of clinical trial results of a Phase 3 clinical trial being conducted by his employer. Furthermore, Wang gave Chan cash, which Chan used to purchase stock shares of Wang’s employer. Chan subsequently sold those shares and paid back Wang.

United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities and Exchange Commission. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities and Financial Fraud Unit, and Assistant United States Attorney Kriss Basil, also of the Securities and Financial Fraud Unit, are prosecuting the case.

BOSTON – A West Boylston man was sentenced today in federal court in Worcester for his role in a methamphetamine conspiracy.

Brian Zukowski, 36, was sentenced today to 28 months in prison, three years of supervised release, and ordered to pay forfeiture of $4,850. In January 2018, Zukowski pleaded guilty to conspiring to distribute methamphetamine and to possess methamphetamine with intent to distribute.

In 2016 and 2017, Zukowski purchased methamphetamine from various suppliers for his own use and for resale to others, including individuals in Massachusetts and Florida, where Zukowski spent a significant amount of time. Zukowski also conspired with a Worcester man to obtain methamphetamine in Texas to be shipped back to New England and Florida, and he conspired with a Worcester man regarding the shipment of methamphetamine from Las Vegas to Massachusetts.

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office prosecuted the case.

BOSTON – The owner of a charter bus company operating in Massachusetts was arrested yesterday on charges of bribing a federal safety investigator in order to influence the safety review of the passenger buses. The safety manager of the company was previously arrested on the same charges.

Le Wen Wu, 49, and Yat Kuen Chan, aka “Andy,” 41, both of Quincy, were charged in an indictment unsealed yesterday with one count conspiracy to pay an unlawful gratuity and to bribe a public official, one count of unlawful gratuities to a public official, and three counts of bribery of a public official. Wu, the owner of the company, was released on conditions following an initial appearance yesterday before U.S. Magistrate Judge M. Page Kelly. Chan, the safety manager of the company, was arrested on a criminal complaint on Sept. 19, 2018, and has been released on conditions since that time. He is scheduled to be arraigned on Nov. 7, 2018. 

As alleged in charging documents, L&W Travel Inc. was a passenger bus charter company purportedly located on Cambridge Street in Boston. Wu was the owner, president, treasurer, secretary, vice president and director of L&W, and Chan acted as the safety manager. In January 2018, L&W applied to register as a charter bus company with the Federal Motor Carrier Safety Administration (FMCSA). The FMCSA, which is part of the U.S. Department of Transportation, establishes and enforces safe operating requirements for motor carriers, including mandatory safety audits within the first year of operation. Between January and July 2018, the FMCSA made several unsuccessful attempts to contact L&W to complete its registration process, including scheduling a safety inspection. In July 2018, having received no response from L&W, FMCSA sent them an Order revoking their registration and requiring L&W to cease all interstate transportation. Thereafter, a representative of L&W contacted FMCSA and scheduled a safety audit and compliance review on July 26, 2018. 

The charging documents allege that on multiple occasions in July and August 2018, Wu and Chan gave a total of $2,800 in cash to an FMCSA safety investigator to influence the investigator’s compliance review and safety audit of L&W. For example, on Aug. 1, 2018 Chan allegedly gave the investigator $600 so that the investigator would not place an L&W bus immediately out of service based on two significant safety violations – inadequate brakes and a defective emergency exit door – but rather, would allow L&W to fix the brakes in Massachusetts and drive the bus to New Jersey for repair of the door. 

The charge of conspiracy to pay unlawful gratuity and to bribe a public official provides for a sentence of no greater than five years in prison, one year of supervised release and a fine of $250,000. The charge of unlawful gratuities to a public official provides for a sentence of no greater than two years in prison, one year of supervised release and a fine of $250,000. The charge of bribery of public officials provides for a sentence of no greater than 15 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; Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General; 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 Kristina Barclay of Lelling’s Public Corruption and Special Prosecutions Unit is prosecuting the case.

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

BOSTON – A federal grand jury indicted a Lynn man on Wednesday, Oct. 31, 2018, in connection with taking and attempting to sell two Warhol paintings on eBay.

Brian R. Walshe, 43, was indicted on one count each of wire fraud, interstate transportation for a scheme to defraud, possession of converted goods, and unlawful monetary transaction. In May 2018, Walshe was arrested and charged in a criminal complaint.

According to court documents, in early November 2016, a buyer found two Andy Warhol paintings for sale on eBay. The paintings were two of Warhol’s “Shadows,” a series of untitled, abstract canvas paintings from 1978. The original listing price for the paintings was $100,000. In the advertisement, the eBay seller included a picture of an invoice for the two Warhol Shadow paintings with Warhol Foundation numbers and a purchase price of $240,000. 

It is alleged that the buyer believed the paintings were authentic and between Nov. 3 and 5, 2016, arranged with Walshe – the seller – to purchase the artwork outside of eBay for $80,000. Walshe and the buyer signed a contract which specified that the buyer had three days to terminate the contract and get a full refund if the buyer did not accept the artwork. On Nov. 7, 2016, the buyer’s assistant flew to Boston and met Walshe to retrieve the paintings, providing him with a cashier’s check for $80,000. According to bank records, the cashier’s check was deposited that day into an account that Walshe controlled, and $33,400 was subsequently withdrawn in the following 14 days. On Nov. 8, 2016, the buyer removed the paintings’ frames and found no Warhol Foundation authentication stamps and also noticed that the canvasses and staples looked new. When he compared the paintings to the photographs from the eBay listing, they did not look identical. The buyer concluded that the paintings he purchased from Walshe were not authentic. The buyer then repeatedly attempted to contact Walshe, who initially did not respond, and then made excuses for the delay in refunding the buyer’s money.

According to court documents, Walshe initially gained access to the paintings through a friend (the victim). Walshe was present when the victim first purchased a Warhol painting. Sometime after this purchase, the victim purchased the two Shadow paintings. Thereafter, while visiting the victim in South Korea, Walshe told the victim that he could sell some of the art for a good price. The victim agreed and let Walshe take the two Shadow paintings and other fine art pieces.

After Walshe took the items, the victim did not hear from Walshe and was unable to contact him. Eventually, the victim contacted a mutual friend, who met with Walshe and retrieved some of the art. On May 3, 2011, Walshe allegedly attempted to consign the Warhol paintings to a gallery in New York City, at which time he also had other art belonging to the victim. The gallery declined to accept the paintings because Walshe did not have a bill of sale.

The indictment alleges that Walshe converted the art from the victim and falsely offered the authentic Warhol paintings for sale on eBay, but delivered fake paintings to the buyer.

The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of interstate transportation for a scheme to defraud provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of possession of converted goods provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of unlawful monetary transaction provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. The Lynn Police Department provided assistance with the investigation. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.

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

BOSTON – A Dominican national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.

Orlando Genoa-Maldonado, 55, a Dominican national formerly residing in Boston, was sentenced by U.S. District Court Judge F. Dennis Saylor to 46 months in prison with 18 of those months to be served consecutive to a state sentence that Genoa-Maldonado is currently serving. Upon completion of this sentence, Genoa-Maldonado will be subject to deportation. In June 2018, Genoa-Maldonado pleaded guilty to one count of illegally reentering the United States after deportation.

In February 2000, Genoa-Maldonado was convicted in federal court in Pennsylvania of distributing heroin. Upon completion of his sentence, Genoa-Maldonado was placed into removal proceedings, and on March 10, 2004, he was deported to the Dominican Republic. In May 2016, federal officials encountered Genoa-Maldonado at MCI Cedar Junction. Earlier that year, Genoa-Maldonado had been sentenced to nine-to-10 years for heroin trafficking.

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

BOSTON – Additional charges were filed on Tuesday, Oct. 30, 2018, against a Chinese national in connection with violating export laws by conspiring with, among others, employees of an entity affiliated with the People’s Liberation Army (PLA) in China to illegally export U.S. origin goods to China.

Shuren Qin, a Chinese national residing in Wellesley, was charged in a superseding indictment yesterday with conspiracy to defraud the United States, smuggling, money laundering and making false statements to government officials. These charges are in addition to previous charges filed, including conspiracy to commit export violations, visa fraud, and conspiracy to defraud the United States. Qin was released on conditions pending trial.

According to court documents, Qin was born in the People’s Republic of China and became a lawful permanent resident of the United States in 2014. Qin operates several companies in China, including a company called LinkOcean Technologies, which imports goods and technology with underwater and marine applications to China from the United States, Canada and Europe. The indictment alleges that Qin communicated with and received taskings from entities affiliated with the PLA, including Northwestern Polytechnical University (NWPU), a Chinese military research institute, to obtain items used for anti-submarine warfare. In 2001, the Department of Commerce designated NWPU on its Entity List because of the national security risks NWPU poses to the United States. As described in the indictment, NWPU has worked closely with the PLA on the advancement of its military capabilities.  

Between approximately July 2015 and December 2016, it is alleged that Qin exported at least 60 hydrophones (devices used to detect and monitor sound underwater) from the United States to NWPU without obtaining the required export licenses from the Department of Commerce.  Qin and his company, LinkOcean, did so by concealing from the U.S. manufacturer of the hydrophones that NWPU was the true end-user and by causing false end-user information to be filed with the U.S. Government. In addition, on four separate occasions in connection with the export of hydrophones to NWPU, Qin allegedly engaged in money laundering by transferring or causing the transfer of more than $100,000 from Chinese bank accounts to bank accounts located in the United States with the intent to promote and facilitate his unlawful export scheme.

In 2014, it is alleged that Qin engaged in visa fraud in connection with his application to become a lawful permanent U.S. resident by falsely certifying that he was not seeking to “engage in export control violations or other unlawful activity” when, in fact, he engaged in numerous violations of U.S. export laws between 2012 and 2018 both in China and in the United States. Qin has also been charged with making false statements to government agents on two occasions regarding LinkOcean’s customers and its export activities. Specifically, the indictment alleges that during an interview with Customs and Boarder Protection (CBP) Officers in November 2017, Qin stated that he only exported instruments that attach to a buoy. However, Qin allegedly exported remotely-operated side scan sonar systems, unmanned underwater vehicles, unmanned surface vehicles, robotic boats, and hydrophones. The items that Qin failed to disclose to, and concealed from, CBP during this interview have military applications, and several of these items were delivered to military end-users in China. For instance, Qin exported a U.S.-manufactured remotely-operated side scan sonar system to a PLA Troop in November 2015. Qin also lied to investigators during an interview on or about June 21, 2018, when he stated that he did not have any customers on the Department of Commerce’s Entity List. In fact, the indictment alleges that Qin and LinkOcean had at least two such customers.

The charge of conspiring to violate U.S. export laws provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $1 million. The charge of visa fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiring to defraud the United States provides for a sentence of no greater than five years in prison, three years of supervised release, and a $250,000 fine. The charge of making false statements provides for a sentence of no greater five years in prison, three years of supervised release, and a $250,000 fine.  The charge or money laundering provides for a sentence of no greater than 20 years in prison, five years of supervised release, and a $500,000 fine. The charge of smuggling provides for a sentence of no greater than 10 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; Peter C. Fitzhugh, Special Agent in Charge of the Homeland Security Investigation, Boston Field Office; Leigh Alistair-Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; William Higgins, Acting Special Agent in Charge of the Department of Commerce, Office of Export Enforcement, Boston Field Office; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Leo Lamont, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office made the announcement today. Assistant U.S. Attorney B. Stephanie Siegmann, Chief of Lelling’s National Security Unit, and Assistant U.S. Attorney Jason Casey, also of National Security Unit, are prosecuting the case.

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

BOSTON – A Brockton man was arrested today and charged in federal court in Boston with illegally possessing a firearm and ammunition.

Dwayne Leaston-Brown, 28, was indicted on one count of being a felon in possession of a firearm and ammunition. He appeared before U.S. District Court Magistrate Judge Donald L. Cabell today and was ordered detained pending a detention hearing.

According to the indictment unsealed today, on Sept. 8, 2018, Leaston-Brown, who was previously convicted of a felony, possessed a Kahr Arms CM9 9mm semi-automatic pistol and six Luger 9mm cartridge while in Boston. 

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

United States Attorney Andrew E. Lelling; Lawrence Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; and Boston Police Commissioner William Gross made the announcement today.

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

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 Boston man was indicted yesterday in federal court in Boston in connection with escaping from a residential re-entry center where he was finishing the remainder of a 100 month sentence.

James Jones, 44, was indicted on one count of escape and was originally charged by criminal complaint in October 2018.

According to court documents, in April 2012, Jones was sentenced in federal court in Boston to 100 months in prison for drug convictions. On March 7, 2018, Jones was transferred from a correctional institution to a residential re-entry center to serve the remainder of his sentence. On July 10, 2018, Jones signed out of the re-entry center on an approved overnight work pass and was scheduled to return on July 11, 2018, but he failed to return.

The charging statute provides for a mandatory minimum sentence of five years in prison, up to three years of supervised release and a $250,000 fine. 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 and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.

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

BOSTON – Two Rhode Island men appeared in federal court in Boston yesterday to face charges in connection with two bank robberies, one in Brockton and one in Abington, that resulted in high-speed chases.

Dong Lee, 48, and Charles Lamont Wheeler, 46, were each charged with two counts of bank robbery.  Both defendants are currently in custody on related state charges.

According to court documents, on Sept. 14, 2018, two individuals stole $3,890 from a branch of the Abington Savings Bank in Avon and $3,621 from a branch of the Crescent Credit Union in Brockton by means of a demand note and threatening to possess a gun. The two individuals were observed exiting both areas in a white sedan.

Tellers at both institutions described one of the robbers as an Asian male and the other as a tall black male. Bank surveillance cameras at both institutions captured images of the robbers, wearing distinctive clothing, entering the banks, robbing the tellers, and then exiting the banks.

A few minutes after the robbery of Crescent Credit Union in Brockton, local law enforcement were dispatched to a hit-and-run accident involving a white sedan, whose driver was described as a black male. The white sedan’s license plate number was taken, and a Be-On-The-Lookout (“BOLO”) was issued for the vehicle, which, law enforcement subsequently learned was stolen.

 The white sedan was observed on Route 1 in Foxboro by a Massachusetts State Trooper, who pursued the vehicle, but the driver did not pull over. A lengthy high-speed pursuit ensued and eventually ended when the driver lost control of the vehicle and crashed into the wood line. The driver and the passenger then fled the vehicle and ran into the woods. The passenger, later identified as Lee, was captured a short time later in the woods, wearing clothing consistent with that worn by the robber, and in possession of thousands of dollars and a demand note.

The driver, later identified as Wheeler, initially eluded law enforcement, and then stole a vehicle from a nearby gas station. A BOLO was issued for that vehicle, and, after another high-speed chase, the driver eventually stopped after being boxed in by law enforcement on Route 1. Wheeler was wearing clothing consistent with the clothing worn by the robber in the two robberies and law enforcement recovered thousands of dollars from him.

Lee and Wheeler each face a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based 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 Office; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police Department; Avon Police Chief Jeffrey Bukunt; Brockton Police Chief John Crowley, Attleboro Police Chief Kyle P. Heagney; and North Attleboro Police Chief John J. Reilly made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.

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

BOSTON – Ten individuals, most of whom are from Brockton, were charged today in federal court in Boston in a wide-ranging fentanyl and cocaine conspiracy.

Seven individuals were arrested today, two are currently in state custody, and one is at-large. The following 10 individuals were charged by criminal complaint with one count of conspiracy to distribute and possess with intent to distribute fentanyl and cocaine:

1. Djuna Goncalves, 32, of Brockton, currently in state custody;
2. Cody Goncalves, 26, of Brockton, currently in state custody;
3. Anthony Goncalves, 20, of Brockton, currently at-large;
4. Angelo Pina, 27, of Brockton;
5. Calvin Mendes, 40, of Brockton;
6. Carlos Antunes, 33, of Brockton;
7. Jermaine Gonsalves, 32, of Brockton;
8. Ozair Pereira, 30, of Brockton;
9. Joseph Greene, 21, of Taunton; and
10. Brian Donahue, 38, of Truro

“This morning’s arrests should remind all gang members and drug traffickers that they cannot operate freely in this state,” said United States Attorney Andrew E. Lelling. “Over the past year, in conjunction with our federal, state, and local law enforcement partners, we have removed dozens of violent criminals from our communities, and we will continue to do so.”

“Today’s operation illustrates Homeland Security Investigations’ commitment to public safety and highlights our unrelenting pursuit of justice,” said Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston. “Through successful partnerships with the Massachusetts State Police, Drug Enforcement Administration and Brockton Police Department, we have dealt a severe blow to a violent drug trafficking organization here in the commonwealth.”

“DEA is committed to investigating and dismantling violent poly drug trafficking organizations like this one operating in the Brockton area,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “As we all know, drug trafficking, along with the gun and physical violence that often accompanies it, is a serious threat to our families and our communities. This investigation demonstrates the strength of collaborative local, state and federal law enforcement efforts in Massachusetts to bring to justice anyone who engages in these crimes.”

“We are proud to work with our federal and local law enforcement partners to help dismantle this significant drug trafficking organization,” said Colonel Kerry A. Gilpin, Superintendent, Massachusetts State Police. “I would like to especially note the work in this investigation of our regional narcotics task force, which was established last year as part of our new State Police Division of Homeland Security. We remain committed to disrupting drug trafficking in Plymouth County and across the state and quelling the street violence associated with the narcotics trade.”

“Operation Red Heat dismantled a large scale Fentanyl distribution ring making its home base on Addison Avenue, but with a trafficking reach far outside of Brockton’s borders,” said Plymouth County District Attorney Timothy J. Cruz. “I commend the work of Massachusetts State Police CINRET, Detectives in the Plymouth County District Attorney’s Office, Homeland Security, DEA and Brockton Police to take five guns and a half kilo of Fentanyl off the street. Their diligent police work quieted the drug activity in a Brockton neighborhood and made much of Plymouth County safer today.”

“This is another example of the ongoing efforts of the Brockton Police Department and the administration of Brockton Mayor Bill Carpenter to partner with federal, state and local law enforcement partners to take the most violent repeat offenders off the streets and make Brockton a safer City,” said Brockton Police Chief John Crowley.

According to the charging document, in 2018, federal, state, and local law enforcement began investigating Djuna Goncalves and other alleged members of A Block, a violent Brockton Street gang whose members typically come from Addison Avenue or the surrounding neighborhood, which have for years been plagued by shootings, including two murders, and other crimes of violence.

It is alleged that during the investigation, Djuna Goncalves and his brothers Cody and Anthony Goncalves distributed large quantities of fentanyl, cocaine, and other drugs from an apartment on Addison Avenue to A Block members and other drug traffickers in Brockton and southeastern Massachusetts. Djuna and Cody Goncalves and Calvin Mendes distributed drugs while on pre-trial release for pending state drug trafficking and gun possession charges. Djuna Goncalves and Angelo Pina were previously convicted of drug trafficking offenses in federal court in Boston, and Pina is still on supervised release from his prior federal conviction.

 On Oct. 21, 2018, Djuna Goncalves survived an assassination attempt after an unidentified assailant fired multiple shots into his basement apartment. It is alleged that when law enforcement officers executed a search warrant at Goncalves’ home, they recovered an AK-47 assault rifle, a Glock .45 caliber pistol, a large number of ammunition clips to various types of firearms and accompanying ammunition, fentanyl, cocaine, crack cocaine, marijuana, suboxone strips, a hydraulic press, packaging materials, digital scales, and approximately $12,000 in cash. Djuna and Cody Goncalves were subsequently arrested on state charges as a result of the evidence seized during the execution of the search warrant.

The charge of conspiracy to distribute and possess with intent to distribute fentanyl and cocaine provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of up to $1 million.  Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Lelling; HSI SAC Fitzhugh; DEA SAC Boyle; Colonel Gilpin; DA Cruz; and Chief Crowley made the announcement today. The United States Marshals Service provided valuable assistance with the investigation. Assistant U.S. Attorney Christopher Pohl of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.

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

BOSTON – An MS-13 member was sentenced today in federal court in Boston for RICO conspiracy and unlawful possession of a firearm and ammunition by an illegal alien.

Manuel Landaverde, a/k/a “Scooby,” 26, a Salvadoran national, was sentenced by U.S. District Court Judge William G. Young to 21 months in prison and three years of supervised release. Landaverde will face deportation proceedings upon completion of his sentence. In July 2018, Landaverde pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO or racketeering conspiracy, and being an alien in possession of a firearm and ammunition.

The investigation revealed that Landaverde was a member of MS-13 and conspired with other MS-13 members to commit acts of violence, including murder and attempted murder, in Massachusetts. Landaverde, who is unlawfully present in the United States, also possessed and sold a firearm and ammunition knowing it would be used in connection with the racketeering conspiracy.     

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 Dominican national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.

Miguel Guillen Percel, 43, a Dominican national formerly residing in Boston and New York, was sentenced by U.S. District Court Judge William G. Young to 21 months in prison and three years of supervised release. Percel will be subject to deportation proceedings upon completion of his sentence. In March 2018, Percel pleaded guilty to one count of unlawful reentry of a deported alien.

In 2002, Percel was convicted in federal court in Rhode Island of cocaine distribution and sentenced to 121 months in prison. After completing his sentence, Percel was deported to the Dominican Republic in October 2009.

In July 2017, Percel was arrested in Massachusetts for various motor vehicle infractions.  Percel posted bail and was later released.

In November 2017, Percel was arrested in New York City and charged in state court with drug distribution. While in New York City, he was subsequently arrested on a federal arrest warrant having been charged in federal court in Boston with illegal reentry of a deported alien.

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

BOSTON – United States Attorney Andrew E. Lelling announced today that Assistant United States Attorney (AUSA) Eugenia M. Carris will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming Nov. 6, 2018, general election. AUSA Carris has been appointed to serve as the District Election Officer (DEO) for the District of Massachusetts, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department in Washington.

U.S. Attorney Lelling said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).

Voting is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on Nov. 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Lelling stated that AUSA/DEOC Carris will be available while the polls are open. She can be reached at the U.S. Attorney’s Office in Boston at (617) 748-3100.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The Boston FBI Field Office can be reached by the public at (857) 386-2000.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

U.S. Attorney Lelling said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to authorities.”

BOSTON – Two Springfield Police Officers – one current and one former - were arrested today and charged in federal court in Springfield, Mass., in connection with using unreasonable force against two Latino juveniles during an arrest in 2016.  One of the officers is also charged with threatening two juveniles during an interrogation and falsifying subsequent reports regarding the incident.

Gregg A. Bigda, 48, of Wilbraham, was charged in an indictment unsealed today with one count of deprivation of rights under color of law – excessive force, two counts of deprivation of rights under color of law – abusive interrogation, and one count of obstructing justice by writing a false report.

Steven M. Vigneault, 48, of East Longmeadow, was charged in the same indictment with one count of deprivation of rights under color of law – excessive force. Bigda and Vigneault will appear in federal court in Springfield later today.  

“Even in the face of adversity, law enforcement officers are expected to conduct themselves professionally, respectfully, and with integrity,” said U.S. Attorney Andrew E. Lelling. “They are ambassadors for the rule of law, and when they themselves break those laws, they violate not just the rights of their victims, but compromise the public’s trust in law enforcement. My office is committed to holding our public servants accountable under the law and prosecuting those who abuse their positions of power.”

“Most law enforcement officers are dedicated, honest, and fully committed to building trust within their communities, but those who break the law stain the reputation of the law enforcement profession,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Badges and guns do not come with the authority to ignore the Constitution or the rights of others, and those who violate it will be held accountable.”

It is alleged that on Feb. 27, 2016, Bigda used unreasonable force against a juvenile, spat on him, and said, “Welcome to the white man’s world,” and that Vigneault used unreasonable force against a second juvenile. According to the indictment, both officers’ use of unreasonable force involved a dangerous weapon, resulting in bodily injury.

After the arrests, Bigda allegedly interrogated two juveniles without their parents present, without reading them their Miranda rights, and by issuing various threats. For example, Bigda made the following threats against one juvenile: to “crush [the juvenile’s] skull and “fu----- get away with it;” “fu----- bring the dog back [and] let him go after” the juvenile; “fu----- kill [the juvenile] in the parking lot;” “charge [the juvenile] with killing Kennedy and fu----- make it stick;” “stick a fu----- kilo of coke in [the juvenile’s] pocket and put [the juvenile] away for fu----- 15 years;” and “kick [the juvenile] right in the fu----- face as soon as [they] cross the Springfield line.” Bigda made the following threats against a second juvenile: to “beat the fu-- out of [the juvenile]..;” “tune [the juvenile] the fu—up;” and “bloody [the juvenile’s] body.”

The indictment further alleges that Bigda subsequently attempted to obstruct the investigation into the assaults of the juveniles by falsifying his reports to the Springfield Police Department Internal Investigations Unit, writing that he did not kick anyone or see any officer kick anyone during the course of the arrests of the juveniles. Bigda filed a second report in which he denied spitting on anyone or yelling “welcome to the white man’s world” during the arrest of the juveniles. 

The charges of deprivation of civil rights under color of law resulting in injury or using or threatening to use a dangerous weapon provide 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 deprivation of civil rights under color of law provides for a sentence of no greater than one year in prison, one year of supervised release, and a fine of up to $100,000. 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.

United States Attorney Andrew E. Lelling; Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorneys Deepika Bains Shukla and Katharine Wagner of Lelling’s Springfield Branch Office and Trial Attorney Christopher J. Perras of the Department of Justice’s Civil Rights Division are prosecuting the case.

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

UPDATE: Gregg Bigda was acquitted by a federal jury in December 2022.

BOSTON – One Romanian national was sentenced and two Romanian nationals pleaded guilty yesterday in federal court in Boston in connection with an ATM skimming scheme operating throughout Massachusetts and other states including Connecticut, New York and South Carolina. 

Nicusor Bonculescu, 24, was sentenced by U.S. District Court Judge William G. Young to three years in prison and three years of supervised release. Judge Young also ordered Bonculescu to pay restitution of $72,922. In March 2018, Bonculescu pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, conspiracy to use counterfeit access devices and aggravated identity theft.

During separate hearings, Suedin Chiciu, 28, and Florinel Vaduv, 22, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity and conspiracy to use counterfeit access devices. Vaduva also pleaded guilty to aggravated identity theft. Judge Young scheduled sentencing hearings for Jan. 19, 2019. In May 2017, Bonculescu, Vaduva, and twelve others were indicted in connection with the ATM skimming scheme. In August 2018, Chiciu was added to the case by superseding indictment.

The defendants, except for one, were members of the Hornea Crew (“the Crew”), led by Constantin Denis Hornea and Ludemis Hornea, and engaged in ATM skimming – obtaining debit card numbers and PINs from unsuspecting bank customers, creating counterfeit cards, and making unauthorized withdrawals from the victims’ bank accounts.

Over a period of 18 months, the Crew installed skimming devices and made unauthorized withdrawals in seven states, including Massachusetts. In particular, members of the Crew installed skimming devices in the following locations: Amherst, Bellingham, Billerica, Braintree, Chicopee, Quincy, Southwick, Waltham, Weymouth, and Whately, Mass.; Enfield, Conn.; Columbia, Greenville, Greenwood, Mauldin, and Saluda, S.C.; Savannah, Ga.; and Yadkinville, N.C.  The Crew made unauthorized withdrawals at ATMs in approximately 29 Massachusetts towns; seven Connecticut towns; six New York towns; Salem, N.H.; and Sumter, S.C.

Members of the Crew transferred money throughout the United States and to Romania and the People’s Republic of China. Some of those transfers were for the purchase of skimming devices and related components from abroad.

In May 2018, the leaders of the conspiracies, Constantin Denis Hornea, 23, and his brother Ludemis Hornea, 21, were sentenced by Judge Young. Constantin Hornea was sentenced to 65 months in prison, three years of supervised release and ordered to pay $242,141 in restitution and a money judgment of $54,260. Ludemis Hornea was sentenced to 42 months in prison, three years of supervised release and ordered to pay $57,422 in restitution and a money judgment of $11,124. Of the 15 defendants charged in the case, seven have been convicted and sentenced, three have pleaded guilty and are awaiting sentencing, three are awaiting trial and two have not been arrested.

The charge of conspiracy to conduct enterprise affairs through a pattern of racketeering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release and fine of $250,000. The charge of conspiracy to use counterfeit access devices provides for a sentence of no greater than five years in prison, three years of supervised release and fine of $250,000. The charge of aggravated identity theft provides for a mandatory, consecutive sentence of two years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigations in Boston; U.S. Secret Service; U.S. Postal Service; Massachusetts Department of Correction; U.S. Customs and Border Protection; the Amherst, Billerica, Braintree, Boston, Quincy, Southwick, Waltham, Whately, and Westwood Police Departments; Connecticut State Police; Greenwich Police Department; the New York City Police Department; Houston Police Department; South Carolina Law Enforcement Division; Richland County (South Carolina) Sheriff’s Department; Florence and Saluda (South Carolina) Police Departments; and the Solicitor’s Offices of Greenville and Saluda Counties. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.

BOSTON – A businessman was charged in a superseding indictment filed yesterday in federal court in Boston for conspiring to bribe senior officials of the Republic of Haiti, and to launder funds for that purpose, in connection with a planned $84 million port development project in that country.

Roger Richard Boncy, 74, a dual U.S. and Haitian citizen who resides in Madrid, Spain, was charged in a superseding indictment with one count each of conspiracy to violate the Travel Act and the Foreign Corrupt Practices Act, one count of violating the Travel Act, and one count of money laundering conspiracy. In October 2017, Boncy’s co-conspirator, Dr. Joseph Baptiste of Fulton, Md., was originally charged by indictment in this case, and is scheduled to stand trial on Dec. 3, 2018, in federal court in Boston.  

According to the indictment, Boncy and Baptiste solicited bribes from undercover agents in Boston who posed as potential investors in infrastructure projects in Haiti, in connection with a proposed project to develop a port in the Mole-Saint-Nicolas area of Haiti. The proposed project was expected to cost approximately $84 million and was to involve the construction of multiple cement factories, a shipping-vessel recycling station, an international transshipment station with numerous slips for shipping vessels, a power plant, a petroleum depot and tourist facilities. During a recorded meeting at a Boston-area hotel, Boncy and Baptiste allegedly told the agents that they would funnel the payments to Haitian officials through a non-profit entity that Baptiste controls – which is based in Maryland and purports to help impoverished residents of Haiti – in order to secure government approval of the project.

The charges of conspiracy to violate the Travel Act and the Foreign Corrupt Practices Act provide for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. The charges of violating the Travel Act and the Foreign Corrupt Practices Act provide for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. 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 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 of the District of Massachusetts; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, and Assistant Director Christopher Hacker of the FBI’s Criminal Investigative Division made the announcement. Assistant U.S. Attorney Kriss Basil of Lelling’s Securities and Financial Fraud Unit and Trial Attorney Elina A. Rubin-Smith of the Criminal Division’s Fraud Section are prosecuting the case.   

The charges contained in the charging document are accusations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

UPDATE: Criminal charges against the defendants, Joseph Baptiste and Roger Boncy, were dismissed in June 2022.

BOSTON – A Wakefield man pleaded guilty today in federal court in Boston in connection with a decade-long mortgage fraud scheme involving at least two dozen fraudulent loan transactions and $4.3 million in losses to lenders.

Joseph Bates III, 38, of Wakefield, pleaded guilty before U.S. Senior District Court Judge Douglas P. Woodlock to an Information charging him with one count of conspiracy, three counts of wire fraud affecting a financial institution, and two counts of bank fraud. A sentencing date has not yet been scheduled. One of Bates’ alleged co-conspirators, George Kritopoulos, 46, of Salem, was indicted on related charges in September 2018, and another participant, David Plunkett, 52, of Lynn, was charged by Information.         

According to the charging documents, from 2006 through 2015, Bates and others engaged in a scheme to defraud banks and other financial institutions by causing false information to be submitted to those institutions on behalf of borrowers – people recruited to purchase properties – located primarily in Salem. The properties were usually multi-family buildings with two-to-four units, which the co-conspirators then converted into condominiums. The co-conspirators recruited other borrowers to purchase the individual condominium units, which were also financed by fraudulent mortgage loans.

The false information submitted to lenders included, among other things, representations concerning the borrowers’ employment, income, assets, and intent to occupy the property. Specifically, the false employment information included representations that borrowers were employed by entities that were, in fact, shell companies used to advance the fraudulent scheme. The employment information included false representations about the income that the borrowers received from the entities, when, in fact, the borrowers received little or no income from them.  Furthermore, the income asserted on the borrowers’ loan applications substantially overstated their true income. The false information also included representations that the recruited borrowers intended to live in the properties that they were purchasing, when the borrowers, in fact, did not intend to do so. Plunkett allegedly assisted the scheme by preparing tax returns for some of the borrowers that contained false and inflated income. Some of those tax returns were submitted to lenders in support of the fraudulent loan applications. 

Because the borrowers did not have the financial ability to repay the loans, in many instances, they defaulted on their loan payments, resulting in foreclosures and losses to the financial institutions of more than $4.3 million.

The charges of bank fraud and wire fraud affecting a financial institution each provide for sentences of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million. The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today.  Assistant U.S. Attorneys Mark J. Balthazard and Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.

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

BOSTON – Two men were charged today in federal court in Springfield with distributing heroin in Northampton.

Quincy Wilmington, 58, and Eugene Bond, 64, were each charged in separate indictments with distribution and possession with intent to distribute heroin.

According to one indictment, Wilmington distributed heroin on May 21 and June 13, 2018. The second indictment alleges that Bond distributed heroin on May 15, May 30, and Aug. 2, 2018.

The charge provides for a sentence of no greater than 20 years in prison, up to a lifetime of supervised release and a fine of up to $2 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Sean Smith, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Northeast Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.

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

BOSTON – Three men were charged yesterday in federal court in Boston with illegally reentering the United States after being deported. 

Octaviano Boche, 48, a Guatemalan national, was charged with one count of illegal reentry of a deported alien. On Sept. 7, 2018, Boche was encountered by law enforcement in Billerica and determined to be unlawfully present in the United States. Boche was previously deported on April 27, 2016. He is currently in state custody awaiting trial on unrelated charges.

Daniel Brandes-Muniz, 35, a Brazilian national previously residing in Lowell, was charged with one count of illegal reentry of a deported alien. On April 28, 2018, Brandes-Muniz was encountered by law enforcement in Billerica and determined to be unlawfully present in the United States. Brandes-Muniz was previously deported on March 22, 2004. He is currently in state custody serving a sentence on unrelated charges.

Jose Urena Vasquez, 42, a Dominican national previously residing in Lawrence, was charged with one count of illegal reentry of a deported alien. On Sept. 13, 2018, law enforcement in Middleton encountered Urena Vasquez and determined him to be illegally present in the United States. Urena Vasquez was previously deported on March 25, 2009. He is currently in state custody awaiting trial on unrelated charges.

Boche faces a sentence of up to two years in prison, one year of supervised release, and a fine of $250,000. Brandes-Muniz faces a sentence of up to 10 years in prison, three years of supervised release, and a fine of up to $250,000. Urena Vasquez faces a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $250,000. All three defendants will be subject to deportation upon completion of any sentences imposed. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.   

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

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

BOSTON - A Lynn man was arrested today on tax fraud charges in connection with a “ten-percenting” scheme, in which he purchased millions of dollars’ worth of winning Massachusetts state lottery tickets at a discount in order to help the ticket holders avoid taxes on the winnings. In addition, two store owners have pleaded guilty in connection with the scheme.

Clarance Jones, 80, was arrested and charged in a criminal complaint unsealed today with conspiring to commit tax fraud and filing false tax returns. He was released on conditions following an initial appearance today in federal court in Boston.

Two conspirators previously charged by information have pleaded guilty. George Kinslieh, 68, was charged with one count of filing false tax returns. Kinslieh pleaded guilty on Oct. 10, 2018, before U.S. District Court Judge Leo T. Sorokin, who scheduled sentencing for Feb. 4, 2019. Bhavna Patel, 44, was charged with one count of conspiring to defraud the Internal Revenue Service. Patel pleaded guilty on Oct. 16, 2018, before U.S. Senior District Court Judge Douglas P. Woodlock, who scheduled sentencing for Feb. 7, 2019.

The charging documents allege that from at least 2013 through 2015, Kinslieh and Patel, who were store owners, and others, purchased winning lottery tickets from the ticket holders for cash, at a discount to the value of the tickets, thereby allowing the ticket holders to avoid reporting the winnings on their tax returns – a scheme known as “ten-percenting.” Kinslieh and Patel gave the winning tickets to Jones, who presented them to the Massachusetts State Lottery Commission as his own, and collected the full winnings. Jones reported the winnings on his tax returns, but offset them with purported gambling losses. Jones and the store owners then shared the excess winnings.

It is alleged that for the tax years 2011 through 2017, Jones paid less than $16,000 in federal tax on a total of approximately $52,000 of reported income. During this period, Jones claimed that he was a professional gambler and that all of his winnings were offset by alleged gambling losses. Patel and Kinslieh did not report to the Internal Revenue Service or pay taxes on the income that they received from the ticket scheme.

The charge of conspiracy to commit tax fraud provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross loss or gain, whichever is greater. The charge of filing a false tax return provides for a sentence of no greater than three years in prison, one year of supervised release, a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Andrew E. Lelling; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. The Massachusetts State Lottery Commission provided assistance with the investigation. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit is prosecuting the cases. 

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

BOSTON – A California securities attorney was sentenced today for his role in schemes to manipulate the stock of two publicly traded companies, Greenway Technology and Crown Marketing. 

Jehu Hand, 62, was sentenced by U.S. District Court Judge William G. Young to 66 months in prison and three years of supervised release. Restitution will be determined at a later date. In May 2018, Hand was convicted following a 13-day trial of conspiracy, securities fraud and wire fraud. Following the verdict, Hand was remanded to the custody of the U.S. Marshals.

In the scheme involving the stock of Greenway Technology, Hand and his co-conspirators used front companies to conceal their control over the vast majority of Greenway’s stock, which then became available for sale to the public after Hand authored and sent several false opinion letters to the transfer agent and brokerage firms. With millions of shares at their disposal, the conspirators proceeded to hire stock promoters to send blast e-mails to potential investors touting Greenway as a company on the verge of acquiring hotels which would cater to gay and lesbian travelers, when in fact the company lacked the requisite funds to acquire any such properties. As a result of the hype created by the false and misleading promotional campaign, Hand and his co-conspirators were able to sell millions of shares of Greenway stock to ordinary investors at artificially high prices.

The scheme involving Crown Marketing stock followed a similar pattern. Hand and his co-conspirators once again used front companies to hide their control over most of Crown’s stock, which could be sold to the public as a result of a false filing that Hand had made with the U.S. Securities and Exchange Commission. The conspirators then put out misleading press releases about the company and hired stock promoters to send blast e-mails touting Crown’s stock. In this case, Crown was billed as having revolutionary drug-delivery technology, when in actuality there was no real commercial interest in Crown’s product. As with Greenway, once Crown’s stock price and trading volume spiked, Hand and his co-conspirators dumped their stock in the market at inflated prices.

In total, between the Greenway and Crown schemes, Hand and his co-conspirators caused losses of more than $1.5 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.  The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission and the Financial Industry Regulatory Authority during the investigation of this matter. Assistant U.S. Attorney James Herbert and Special Assistant U.S. Attorney Andrew Palid prosecuted the case.

BOSTON – A federal grand jury indicted a Norwell man today for sexually exploiting children.

Derek Sheehan, 48, was indicted on three counts of sexual exploitation of children. Sheehan was previously charged by criminal complaint with one count of the same offense. He is currently in state custody on related charges pending in the Hingham District Court. According to court documents, Sheehan is also charged - in connection with another victim - in a separate docket in Hingham District Court.

According to the charging documents, on Aug. 17, 2018, law enforcement executed a search warrant at Sheehan’s home and seized several electronic devices that allegedly revealed evidence of child pornography, including video of Sheehan abusing children in his home. Given the number of devices seized, the high storage capacity of many of the devices, and the fact that some devices appear to be encrypted, the investigation and forensic review is ongoing.

Members of the public who have questions, concerns, or information about this case should contact the U.S. Attorney’s Office at 617-748-3274. Anyone with questions about how to talk to their child about sexual abuse should visit the Plymouth County Child Advocacy Center website at https://cac.plymouthda.com/.

The charge of sexual exploitation of children provides for a mandatory minimum sentence of 15 years and up to 30 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Plymouth County District Attorney Timothy Cruz; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Norwell Police Chief Theodore Ross made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood coordinator and a member of Lelling’s Major Crimes Unit, is prosecuting the case.

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

The details contained in the 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 MS-13 member pleaded guilty today in federal court in Boston to illegal possession of firearms and ammunition.

Elmer Alfaro Hercules, 20, a Salvadoran national, pleaded guilty to one count of being an illegal alien in possession of firearms and ammunition. Hercules was indicted in June 2018. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Jan. 17, 2019.

On May 22, 2018, Hercules was arrested in possession of a loaded firearm in an East Boston park, a location where numerous MS-13 gang members have been observed and where gang-on-gang violence frequently occurs. Hercules unlawfully entered the United States in 2014 as an unaccompanied minor. In April 2015, an immigration judge ordered him deported in absentia.

The charge of being an alien in possession of a firearm and ammunition provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Hercules will also face deportation proceedings upon completion of his sentence. 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; 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.