District of Massachusetts

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

Herminio Polanco-Huma, 26, a Dominican national formerly residing in Lawrence, was sentenced by U.S. District Court Judge Nathaniel Gorton to six months in prison and one year of supervised release, to be served consecutive to a three year and one day state sentence he is currently serving for fentanyl distribution. In June 2018, Polanco-Huma pleaded guilty to one count of illegal reentry of a deported alien. Upon completion of his sentences, he will be subject to deportation.

In February 2017, federal law enforcement encountered Polanco-Huma in Florida and determined that he was illegally present in the United States. Polanco-Huma was placed into removal proceedings, and on Feb. 21, 2017, he was deported to the Dominican Republic.

In November 2017, Polanco-Huma was encountered while awaiting trial at the Essex County House of Corrections. Polanco-Huma’s prints were obtained and found to be a positive match to prints contained in his Alien File. In May 2018, Polanco-Huma was convicted in Essex Superior Court of distribution of fentanyl and sentenced to three years and one day in prison.  

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 prosecuted the case.

BOSTON – Two Dominican nationals were arrested yesterday and charged in federal court in Boston with fentanyl trafficking in connection with the seizure of approximately 32 kilos of fentanyl with an alleged street value of $28.8 million. A firearm and $20,000 were also recovered.  

Angel Javier Morell-Oneill, 33, a Dominican national residing in Methuen, was charged with one count of possession with intent to distribute 400 grams or more of fentanyl, and Jose A. Rodriguez, 41, was charged with one count of conspiracy to possess with intent to distribute and to distribute fentanyl.

According to the charging documents, law enforcement began investigating Morell-Oneill in June 2018. The investigation culminated with a traffic stop on Pleasant Valley Street in Methuen on Oct. 22, 2018, during which officers seized two kilos of fentanyl from the front passenger seat of the vehicle Morell-Oneill was driving.  

After seizing the drugs, law enforcement executed a search warrant at Morell-Oneill’s residence in Methuen where they allegedly seized approximately 30 kilos of fentanyl, drug distribution paraphernalia, and a loaded firearm.

Rodriguez was arrested when he arrived at Morell-Oneill’s residence to deliver $20,000, which was to be used to pay for half of the transportation costs of a narcotics shipment recently delivered to Morell-Oneill. The money was seized from a hidden compartment in a car driven by Rodriguez.

Rodriguez faces a sentence of no greater than 20 years in prison, a mandatory minimum of three years and up to a lifetime of supervised release and a fine of up to $1 million. Morell-Oneill faces a mandatory minimum of 10 years and up to life in prison, a mandatory minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Valuable assistance was provided by 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 defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Springfield man was sentenced today in federal court in Springfield for being a felon in possession of firearms and ammunition.

Hector Navarro, 29, was sentenced by U.S. District Court Judge Mark G. Mastroianni to eight years in prison and three years of supervised release. In June 2018, Navarro pleaded guilty to two counts of being a felon in possession of a firearm and ammunition.

In September 2016, Navarro possessed a Mossberg, model 500, 12 gauge shotgun. In October 2016, he possessed a Stoeger, model Cougar 8000, 9mm pistol; an Irwindale Arms Inc., model Automag III, .30 caliber pistol; a Coast to Coast, model CC660, 12 gauge shotgun; 12 rounds of 9mm ammunition; one round of .380 ammunition; and three rounds of .30 caliber ammunition.

Due to a prior conviction of a crime punishable by imprisonment for more than one year, Navarro is prohibited from possessing firearms.

United States Attorney Andrew E. Lelling; Lawrence Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner John Barbieri made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office prosecuted the case.

BOSTON – The founder and operator of a Swiss asset management firm has been indicted by a federal grand jury on charges of engaging in a massive global securities fraud scheme that netted trading proceeds of approximately $164 million.   

Roger Knox, 47, a citizen of the United Kingdom who resides in Switzerland, was indicted on one count of securities fraud and one count of conspiracy to commit securities fraud.  On Oct. 3, 2018, Knox was arrested and charged by criminal complaint.

Knox, together with others, operated a purported asset management firm based in Switzerland called Silverton, and later renamed Wintercap.  Knox allegedly helped facilitate pump-and-dump, and other market manipulation schemes, by selling massive quantities of microcap securities on behalf of “control groups” who secretly owned the stock through nominee shareholders and who simultaneously orchestrated promotional campaigns and other efforts to artificially inflate the price and trading volume of those shares.

It is further alleged that Knox then funneled the proceeds of the securities fraud—totaling an estimated $164 million over the last three years—to co-conspirators in the United States and elsewhere through a complex money transfer system that disguised the source and nature of the funds. 

The charge of securities fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $5 million. The charge of conspiracy to commit securities 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 gain or gross loss. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

U.S. 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 Securities and Exchange Commission’s Boston Regional Office provided assistance with the investigation. Assistant U.S. Attorney Eric Rosen of Lelling’s Securities and Financial Fraud Unit is prosecuting the case. 

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

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

Casimiro Zapata-Martinez, 50, was sentenced to three months in prison and two years of supervised release. Zapata-Martinez will be subject to deportation proceedings upon completion of his sentence. In 2018, Zapata-Martinez pleaded guilty to one count of illegal reentry of a deported alien.

Zapata-Martinez was previously deported on April 8, 2002. Law enforcement officers encountered Zapata-Martinez on April 11, 2018, and determined him to be illegally present in the United States.

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 Nicholas Soivilien of Lelling’s Criminal Division prosecuted the case.

BOSTON – One suspended Massachusetts State Police Trooper and one retired Trooper have agreed to plead guilty today in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).

Eric Chin, 46, of Hanover, a suspended Trooper, and Paul Cesan, 50, of Southwick, a retired Trooper, were each charged in an Information with one count of embezzlement from an agency receiving federal funds. Both have agreed to plead guilty pursuant to a plea agreement, but dates have not yet been scheduled for the hearing. 

Chin and Cesan were MSP Troopers assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. In 2016, Chin earned $302,400, which included approximately $131,653 in overtime pay. In 2016, Cesan earned $163,533, which included approximately $50,866 in overtime pay.

According to the charging documents, Chin and Cesan were paid for overtime shifts that they did not work at all or from which they left early. Each is alleged to have concealed their scheme by submitting fraudulent citations designed to create the appearance that they had worked overtime hours that they had not, and, falsely claimed in MSP paperwork and payroll entries that they had worked the entirety of their overtime shifts. 

Chin has agreed to plead guilty to collecting $7,125 for overtime hours that he did not work, and Cesan has agreed to plead guilty to collecting $29,287 for overtime hours that he did not work.

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

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

Chin and Cesan are the fourth and fifth Troopers to plead guilty as a result of the ongoing investigation.  On Oct. 11, 2018, suspended Trooper Gary Herman, 45, of Chester, pleaded guilty; on July 2, 2018, former Trooper Gregory Raftery, 47, of Westwood pleaded guilty; and on Sept. 14, 2018, suspended Trooper Kevin Sweeney, 40, of Braintree pleaded guilty. On June 27, 2018, former Lieutenant David Wilson, 57, of Charlton was arrested and charged with the same crime, and on July 25, 2018, retired Trooper Daren DeJong, 56, of Uxbridge, was also charged.   

Pursuant to the plea agreement with Chin, the government will recommend a sentence of between six and 12 months of incarceration. Pursuant to the plea agreement with Cesan, the government will recommend a sentence of between 10 and 16 months of incarceration. The charge of theft of government funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.    

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

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

BOSTON – Twin brothers from Hyannis were charged in federal court in Boston yesterday with additional gun and drug offenses.

Di’lon Smith, a/k/a Dilon Smith, and Denzel Smith, both 26, were each charged in a superseding indictment with one count of being a felon in possession of firearms and ammunition, one count of possession with intent to distribute 100 grams or more of a controlled substance analogue - cyclopropyl fentanyl, one count of possession with intent to distribute fentanyl, and two counts of possession of a firearm in furtherance of a drug trafficking crime. The Smiths were each initially indicted in April 2018 on one count of being a felon in possession of firearms and ammunition.

It is alleged that on Nov. 29, 2017, the brothers, each having previously been convicted of a felony, possessed a Smith & Wesson .22 caliber revolver, a Heckler & Koch .9 caliber pistol, six rounds of .22 caliber ammunition, and 18 rounds of .9 caliber ammunition. It is further alleged that the brothers also possessed fentanyl, as well as more than 100 grams of cyclopropyl fentanyl, with intent to distribute those substances.

The charging statute for being a felon 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. The charge of possession with intent to distribute 100 grams or more of a controlled substance analogue provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million. The charging statute for possession with intent to distribute fentanyl provides for sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a $1 million fine. The charging statute for possessing a firearm in furtherance of a drug trafficking crime provides for a sentence of at least five years and up to life in prison, up to five 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; Lawrence Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; and Barnstable Police Chief Paul MacDonald made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes 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 Mexican national illegally residing in Springfield pleaded guilty yesterday to firearms and immigration crimes.

Manreal Altamirano-Navarro, whose true age is unknown, pleaded guilty to one count of possession of a firearm by a person unlawfully in the United States and two counts of possession of fraudulent immigration documents. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 18, 2019.

On Dec. 20, 2017, Altamirano-Navarro possessed a firearm while he was unlawfully in the United States and possessed two fraudulent immigration documents. Specifically, Altamirano-Navarro possessed a Ruger .22 caliber pistol, and, while walking on Calhoun Street in Springfield, he fired the pistol into the air. A law enforcement officer observed Altamirano-Navarro as he fired his weapon and informed nearby officers who then arrested the defendant. After arresting Altamirano-Navarro, law enforcement seized from him a fraudulent permanent resident card and a fraudulent resident alien card, both of which displayed Altamirano-Navarro’s photo.

The charge of possession of a firearm by a person unlawfully in the United States provides for a sentence of no greater than 10 years in prison, a minimum of three years of supervised release, and a fine of between $20,000 and $200,000. The charges of possession of fraudulent immigration documents each provide 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; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner John Barbieri made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office is prosecuting the case. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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 federal grand jury indicted an East Bridgewater man yesterday on charges of producing, distributing and possessing child pornography.

Daniel O’Connor Jr., 56, was indicted on one count of sexual exploitation of children, one count of distribution of child pornography, and one count of possession of child pornography. In September 2018, O’Connor Jr. was arrested and charged by criminal complaint. He was released on conditions.  

According to the charging documents, on June 7, 2018, law enforcement executed a federal search warrant at the home of O’Connor Jr., where they located two iPhones belonging to the defendant. An onsite forensic review of one of the phones revealed images of child pornography.

It is alleged that further review of the phone revealed approximately 137 images and approximately 20 videos of child pornography. In addition, the phone contained multiple apps popular with minors, such as Kik Messenger. A review of O’Connor Jr.’s Kik app revealed chats between O’Connor Jr. and an 11-year-old girl during which he solicited and received a number of images and videos depicting child pornography.

The charge of production of child pornography/sexual exploitation of a child provides for a mandatory minimum sentence of 15 years and up to 30 years in prison. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of no greater than 20 years in prison. Each count provides for a mandatory 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 on the United States 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; and East Bridgewater Police Chief Scott Allen made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.

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

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

BOSTON – A Canadian national was sentenced today in federal court in Springfield for enticing children over the internet to produce child pornography and to send the sexually explicit content to him.

Justin Carl Wong, 35, of Ontario, Canada, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 15 years in prison and 10 years of supervised release. In July 2018, Wong pleaded guilty to 10 counts of sexual exploitation of a minor. Wong was indicted in August 2014 and has been in custody since his arraignment on Aug. 10, 2017, after being extradited from Canada.

In December 2012, Wong used a Voxer account to communicate with two girls, aged eight and 10, in Hampshire County. Wong first sent text and voice messages to the 10-year-old girl, knowing that she was a minor, offering to be her “pretend boyfriend” and to help her “get a boyfriend in” her “real life.” Wong asked the girl to send him sexually explicit pictures of herself, and, initially, the child refused. Wong used psychological pressure to persuade and then to bully the girl to send him sexually explicit pictures by threatening to never speak to her again and telling her she would live a “lonely life” and to “have a nice life being alone.” He repeatedly referred to her as a “bitch” and said she was a “loser” because she refused to send him the pictures.

On Dec. 19, 2012, the 10-year-old girl succumbed to Wong’s repeated demands and sent three sexually explicit pictures of herself, as well as two sexually explicit photographs with the eight-year-old girl. Later that day, Wong engaged in a series of online communications with the eight-year-old girl in which Wong demanded specific kinds of sexually explicit pictures. The girl responded by sending to Wong five such photographs.

United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; U.S. Marshal John Gibbons for the District of Massachusetts; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Granby Police Chief Alan Wishart made the announcement. Assistant U.S. Attorney Alex Grant of Lelling’s Springfield Branch Office prosecuted the case.

This 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 U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.

 

 

BOSTON – A Boston man was sentenced today in federal court in Boston for failure to register as a sex offender. 

Lance Pona, 27, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year and one day in prison and five years of supervised release. In June 2018, Pona pleaded guilty to one count of failure to register as a sex offender. Pona has been in custody since he was arrested and charged in April 2018.

Pona is required to register as a sex offender in Massachusetts based on a Colorado state court conviction for unlawful sexual contact in 2009. Following his imprisonment for that conviction, Pona left Colorado for Massachusetts. Despite living in the Boston area for approximately five years, Pona failed to report his presence to the authorities.    

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 Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, prosecuted the case.

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

BOSTON – An Abington man was sentenced today in federal court in Boston for robbing three Greater Boston-area banks.

John Soule, 53, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 42 months in prison, three years of supervised release, and ordered to pay approximately $58,551 in restitution. In July 2018, Soule pleaded guilty to three counts of bank robbery. Soule was arrested and charged in September 2017 and has been detained since.

On July 12, 2017, Soule entered a branch of the Eastern Bank in Cambridge, where he jumped over the teller’s counter, stated that he had a knife, and demanded the bank’s money. The tellers gave Soule money from their drawers, and Soule exited the bank with $12,940.

On Aug. 9, 2017, Soule entered a branch of the Webster Bank on Franklin Street in Boston and announced a robbery. He jumped over the tellers’ counter and demanded the bank’s money. The tellers gave Soule money from their drawers, and he exited the bank with $3,137.

One month later, on Sep. 8, 2017, Soule entered a branch of the Rockland Trust on Quincy Street in Quincy, where he approached a teller demanding money and then jumped over the counter and entered the bank’s vault. A post-robbery audit determined that Soule stole over $42,000 during the robbery.

Video surveillance cameras outside of all three banks captured images of Soule on a mountain bike moments before and immediately after the robberies.

Throughout the investigation, law enforcement received various tips and information that Soule was the person responsible. On Sept. 29, 2017, Soule was located and arrested with over $8,000 in his possession. Soule later admitted his involvement in the robberies.

United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.

BOSTON – A Worcester man was sentenced yesterday in federal court in Boston for being a felon in possession of a firearm and ammunition.

Franklin Safo-Agyare, a/k/a “Frankie So Smooth,” 25, was sentenced by U.S. District Court Judge Patti B. Saris to 30 months in prison and three years of supervised release, the first year of which he is prohibited from residing in or visiting the City of Worcester. In June, Safo-Agyare pleaded guilty to one count of being a felon in possession of a firearm and ammunition.

Following a two-year investigation, Safo-Agyare and eight others were charged in January 2018 in connection with illegal drug distribution and firearm possession within and near the Mildred C. Hailey Apartments in Jamaica Plain, formerly known as the Bromley Heath Housing Development.

On June 6, 2016, Safo-Agyare sold a firearm to a cooperating witness in the parking lot of a grocery store which is adjacent to the development. According to court documents, Safo-Agyare has multiple convictions for assault with a dangerous weapon, resisting arrest, carrying a firearm and ammunition, and possession of a Class A substance. Due to these convictions, Safo-Agyare was prohibited from possessing firearms during the time of the offense.

The investigation and arrests sought to reduce violence and improve the quality of life in and around the Mildred C. Hailey Apartments for residents by removing individuals who distributed drugs and/or were actively involved in violence and gang disputes.

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 Boston Police Commissioner William Gross made the announcement. Assistance was also provided by the Boston Housing Authority’s Department of Police and Public Safety.

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

BOSTON – A Leominster man pleaded guilty yesterday in federal court in Boston to passport fraud.

“John Doe,” whose true identity and age are presently unknown, and whose last known address was in Leominster, pleaded guilty to one count of making false statements in a passport application. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 17, 2019.

At the plea hearing, Doe admitted that in December 2011, he entered a Jamaica Plain post office and used the name, date of birth, and Social Security number of a United States citizen from Puerto Rico to apply for a United States passport.  

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

United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorneys Sandra S. Bower and Lauren A. Graber of Lelling’s Criminal Division are prosecuting this case.

BOSTON – An Everett man pleaded guilty yesterday in federal court in Boston in connection with a scheme to defraud the Massachusetts Department of Unemployment Assistance of more than $1.8 million.

Edison Delarosa, 53, pleaded guilty to one count of mail fraud and one count of wire fraud. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for Jan. 24, 2019. In February 2017, Delarosa was arrested and charged and subsequently released on conditions. 

From approximately January 5 through November 24, 2016, Delarosa engaged in a scheme to defraud the Commonwealth of Massachusetts by exploiting the Department of Unemployment Assistance’s (DUA) online system, which allows claimants to manage their unemployment insurance accounts over the internet. On multiple occasions, Delarosa, who did not actually owe DUA any money, submitted bogus “repayments” online, which triggered the release of “refund” checks payable to him in varying amounts. During the course of the scheme, Delarosa submitted a total of 136 fraudulent “repayments,” amounting to $1,813,170, for which DUA issued him 15 paper “refund” checks, totaling $1,251,283. DUA uncovered the scheme after six of those checks, totaling $27,227, were mailed to Delarosa and deposited into his account.   

The charges of wire fraud and mail fraud provide for 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 upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, New York Region; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The Commonwealth of Massachusetts’ Department of Unemployment Assistance cooperated with the investigation. Assistant U.S. Attorney Anne Paruti of Lelling’s Major Crimes Unit is prosecuting the case.

BOSTON – A Beverly man pleaded guilty today in connection with mailing threatening letters containing suspicious white powder to high-profile individuals, law enforcement officials and others.

Daniel Frisiello, 25, pleaded guilty to 13 counts of mailing a threat to injure the person of another and six counts of false information and hoaxes. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Jan. 16, 2019. Frisiello was arrested and charged on March 1, 2018, and has been in home detention since.

Frisiello mailed five high-profile individuals around the country an envelope that contained suspicious white powder and a note indicating that the powder was dangerous and intended to cause harm. There were notable commonalities among the envelopes, including a Boston postmark. Further investigation revealed that one victim had also received a “glitter bomb,” that is, an envelope containing glitter sent to an unsuspecting individual that, when opened, spills out onto the recipient. Law enforcement traced financial records to Frisiello, who had ordered and paid for the glitter bomb to be delivered to the victim. Furthermore, trash recovered from Frisiello’s residence contained remnants of the cut-out computer-printed messages that Frisiello sent to some victims.

More specifically, in 2015, Frisiello sent two letters that threatened the manager of a Massachusetts company that had recently terminated one of Frisiello’s family members. During the 2016 presidential campaign, Frisiello sent a white-powder letter to family members of then-presidential candidate Donald Trump, which caused a significant hazardous material response by law enforcement. The letter promised that if Trump did not drop out of the race, the next letter would not be a fake. In 2016, Frisiello also sent letters to the heads of four law enforcement agencies in Connecticut and Rhode Island, warning them to drop an investigation into Nathan Carman, who allegedly killed his mother and grandfather, threatening that one police chief would join Carman’s mother “at the bottom of the sea” and that a state police colonel would not only drown, but also receive “a bullet in [his] brain.” In 2017, Frisiello sent a letter threatening to shoot the assistant district attorney who was prosecuting Michelle Carter for involuntary manslaughter and to also shoot the judge who was hearing the case. In 2018, Frisiello sent white powder letters to another member of the First Family, a United States Attorney, United States Senator Deborah Stabenow, a Stanford law professor, and a candidate for the United States House of Representatives.

Frisiello was tied to the threatening letters through fingerprints and further investigation.  

The charge of mailing a threat to injure the person of another provides for a sentence of no greater than five years in prison, or 10 years in prison for threats addressed to a federal official, three years of supervised release and a fine of $250,000. The charge of false information and hoaxes provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Stephen Marks, Special Agent in Charge of the U.S. Secret Service Boston Field Office; and Beverly Police Chief John G. LeLacheur made the announcement today. The investigation was led by the FBI Boston Division’s Joint Terrorism Task Force. Assistant U.S. Attorney Scott L. Garland, Deputy Chief of Lelling’s National Security Unit, is prosecuting the case.

BOSTON – A Boston-area hedge fund manager pleaded guilty today in federal court in Boston to running a multi-million dollar Ponzi scheme.

Raymond K. Montoya, 70, of Allston, pleaded guilty to three counts of wire fraud, five counts of mail fraud, and two counts of conducting an unlawful monetary transaction. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for Jan. 22, 2019. Montoya was charged by a criminal complaint and arrested in August 2017.

Between 2009 and June 2017, Montoya ran a pooled investment hedge fund in Boston called RMA Strategic Opportunity Fund, LLC. Montoya falsely told his investors—including his family, friends, and acquaintances who resided in Massachusetts, Ohio, and California—that the fund was earning substantial returns, when in fact, by 2014, the RMA Fund was sustaining substantial losses. The investors transferred millions of dollars of their personal savings and 401(k) retirement plans to Montoya and the RMA Fund. Montoya told the investors that he would invest their money in stocks and bonds, but he actually invested only a portion of their money, while diverting the rest—totaling millions of dollars—to business and personal bank accounts. Montoya used the diverted money for personal expenses such as luxury vehicles and the mortgage on his son’s residence. 

Montoya was previously charged with securities fraud in a civil complaint by the Massachusetts Securities Division.

The charges of mail fraud and wire fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or gross loss from the offense, restitution and forfeiture. The charge of conducting 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 value of the 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; 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. The Massachusetts Securities Division provided valuable assistance. Assistant U.S. Attorney Neil J. Gallagher Jr. of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.

BOSTON – A Dorchester man pleaded guilty today in federal court in Boston to kidnapping, loansharking and illegal gambling.

Kim Nguyen, 25, pleaded guilty to kidnapping, conspiracy to collect extensions of credit by extortionate means, and operating an illegal gambling business. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 10, 2019. In August 2017, Nguyen was indicted along with co-defendants Vinh Huynh, 35; Quang PT Le, 27; and Ban Tran, a/k/a “Bo,” 26, all of Dorchester.

On Nov. 14, 2016, Nguyen, Le, who was armed with a knife, and their co-conspirators kidnapped a victim from the front of the victim’s residence, drove the victim to Dorchester, and beat the victim in an attempt to collect a gambling debt of $40,000. Nguyen, Le, and their co-conspirators released the victim and demanded a payment of $10,000 the next day. That day, the victim went to law enforcement and, under the direction of law enforcement officers, made a series of controlled, recorded payments to Le. Over the course of eight months, the victim made payments totaling $22,350. In August 2017, Nguyen, Le, and others were arrested before the last payment was due.

In May 2018, Le was sentenced to six years in prison and three years of supervised release. Huynh pleaded guilty in December 2017 and is awaiting sentencing. The remaining defendant, Tran, was charged only with operating an illegal gambling business, and is scheduled to plead guilty on Oct. 31, 2018.

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; and Quincy Police Chief Paul Keenan made the announcement today. The Internal Revenue Service’s Criminal Investigations in Boston and the Massachusetts Department of Correction assisted with the investigation. Assistant U.S. Attorney Timothy E.  Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.

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

 

BOSTON – A former executive vice president 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. 

Ross McLellan, 47, of Hingham, was sentenced by U.S. District Court Judge Leo T. Sorokin to 18 months in prison and two years of supervised release. In June 2018, McLellan was 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.

In April 2016, McLellan, a former executive vice president of State Street who served as global head of its Portfolio Solutions Group and president of its U.S. broker-dealer unit, and 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, were indicted. In June 2017, Pennings pleaded guilty and is scheduled to be sentenced on Nov. 6, 2018. Also in June 2017, Richard Boomgaardt, 44, of Sevenoaks, England, a former managing director of State Street, was charged separately and pleaded guilty in July 2017 to one count of conspiracy to commit securities fraud and wire fraud. Boomgaardt was sentenced in July 2018 to one year of probation.

Between February 2010 and September 2011, McLellan, Pennings, and Boomgaardt conspired to add secret commissions to fixed income and equity trades performed for at least 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. McLellan, Pennings, 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. 

For example,

• In a telephone call in March 2010, Pennings instructed Boomgaardt not to talk about the plans to charge hidden commissions on one transaction “with anyone . . . because it’s not going to help our story. Don’t even share it with the rest of the team, to be honest.”
• In June 2010, McLellan and Boomgaardt requested that the bank’s traders provide them with the reported daily high and low prices of securities that the bank had traded for the client so that they could determine the amount of the commissions to be applied to each security without attracting the client’s attention. 
• In March 2011, McLellan instructed a U.S. fixed income trader to charge a commission of one basis point (0.01%) of yield to each trade conducted for another client – notwithstanding that the written trading instructions for the transaction said to charge zero commissions – and subsequently instructed the trader to delete any reference to the commissions from the trading results he sent to the transition manager assigned to the project.

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. McLellan and Pennings 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 – The owner of a Hyde Park auto body shop pleaded guilty yesterday in federal court in Boston in connection with preparing false tax returns for his company, Automotive Specialties Inc. 

Richard Poillucci, 62, of Easton, pleaded guilty to three counts of aiding the preparation of false tax returns. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for Jan. 22, 2019. In July 2018, Poillucci was charged by an Information.

Poillucci was the owner of Automotive Specialties Inc. (ASI), an auto body shop specializing in repairing high-end vehicles. Between Sept. 30, 2012 and Sept. 30, 2015, Poillucci cashed millions of dollars of checks from the business at check cashing establishments in Massachusetts and Rhode Island and willfully failed to report that income, or expenses that he paid for in cash with the proceeds from those checks, on ASI’s tax returns. As a result, Poillucci failed to report approximately $569,367 to the IRS, thereby avoiding the payment of approximately $215,552 in federal income taxes. 

Each of the counts of aiding the preparation of false tax returns provides for a sentence of no greater than three years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Economic Crimes Unit is prosecuting the case.

BOSTON – The owner of a well-known Salem restaurant, King’s Roast Beef Inc., was sentenced today for failing to report or pay taxes on nearly $1.5 million in income from the business.    

John Kalantzis, 52, of Lynn, was sentenced by U.S. District Court Judge William G. Young to one year and one day in prison, one year of supervised release, and ordered to pay a fine of $25,000. Prior to the sentencing hearing, Kalantzis paid restitution of $383,238 to the IRS. In July 2018, Kalantzis pleaded guilty to two counts of aiding and assisting in filing a false tax return.

During tax years 2011 through 2015, Kalantzis underreported the gross receipts and expenses of King’s Roast Beef in order to improperly reduce the federal income taxes owed by the restaurant. Kalantzis did so by diverting some of the restaurant’s cash receipts to himself, paying for some of the restaurant supplies with cash, and paying a portion of his employees’ wages in cash. Kalantzis then failed to report this conduct to his tax preparer. As such, during each of the tax years 2011 through 2015, Kalantzis failed to report cash receipts of about $300,000 and cash expenses of approximately $120,000 on King’s Roast Beef’s tax returns. As a result, Kalantzis failed to report a total of $855,000 in business income to the IRS during those years, thereby avoiding paying corporate and personal taxes of $383,000.

United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Securities and Financial Fraud Unit prosecuted the case. 

BOSTON – Three Florida men were sentenced in federal court in Boston for their roles in an opioid trafficking conspiracy across Massachusetts and Florida.

Craig Drummond, 27, of Sunny Isles Beach, Fla., was sentenced today by U.S. District Court Judge Denise J. Casper to 10 months in prison and two years of supervised release. In March 2018, Drummond pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone and one count of conspiracy to launder monetary instruments.

Darren Infante, 27, of Miami, Fla., was sentenced today by Judge Casper to time served and two years of supervised release, including seven months of home detention. In August 2017, Infante pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone.

Jenssi Astacio, 32, of Sunny Isles Beach, Fla., was sentenced yesterday by Judge Casper to 70 months in prison and three years of supervised release. In April 2018, Astacio pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone and one count of conspiracy to launder monetary instruments. 

In March 2017, Astacio, Drummond, Infante, and seven others were arrested and charged. The arrests were the result of a three-year investigation that began in 2014. The defendants conspired to transport sizeable quantities of oxycodone from Miami, Fla., to Massachusetts, where it was distributed in the greater Boston area. Proceeds from the sales were then transported and/or transferred back to Florida and laundered in various ways.

Astacio shipped - and directed other co-conspirators to ship - large quantities of oxycodone pills from Florida to Massachusetts, negotiated with other co-conspirators the sale of oxycodone pills for redistribution, and directed co-conspirators to use bank accounts to launder the cash proceeds of their illicit sale of drugs. Drummond shipped sizeable quantities of oxycodone from Miami to Massachusetts, where it was distributed in the greater Boston area, and Infante shipped eight packages containing oxycodone from Miami to various addresses in Massachusetts for distribution.

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; John Gibbons, U.S. Marshal for the District of Massachusetts; and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Biddeford (Maine), Framingham, Haverhill, Lawrence, Manchester (N.H.), Methuen, Millis, Natick, Stoughton and Waltham Police Departments. Assistant U.S. Attorneys Nadine Pellegrini and Craig Estes of Lelling’s Narcotics and Money Laundering Unit are prosecuting the cases.

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

Cesar Humberto Perez-Diaz, 48, pleaded guilty to one count of illegal reentry of a deported alien before U.S. District Court Judge Leo T. Sorokin, who sentenced Perez-Diaz to six months in prison and one year of supervised release. Perez-Diaz will be subject to deportation proceedings upon completion his sentence.

On July 31, 2018, the Lynn Police Department arrested Perez-Diaz and charged him with enticement of a child under 16 years old. Perez-Diaz was arraigned in the Lynn District court and ordered detained without bail. Immigration officials encountered Perez-Diaz at the Essex House of Corrections and determined that he was illegally present in the United States having been deported on two previous occasions.

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 – A Dominican national, who is illegally in the United States, was sentenced today in federal court in Boston in connection with identity theft.

Kelny Andujar, a/k/a Kelny Alberto Andujar Pinales, 36, a Dominican national residing in Lawrence, was sentenced by U.S. District Court Judge Allison D. Burroughs to 27 months in prison and two years of supervised release. In June 2018, Andujar pleaded guilty to one count of passport fraud, one count of misusing a Social Security number, and two counts of aggravated identity theft. Andujar has been in custody since his arrest in March 2018.

In March 2016, Andujar went to a post office in Lawrence and applied for a U.S. passport in the name of a U.S. citizen who lives in Puerto Rico and listed that citizen’s date of birth, place of birth and Social Security number. Andujar supported his application with a certified copy of the victim’s birth certificate, a Social Security card bearing the victim’s name and Social Security number, and a Massachusetts ID card bearing Andujar’s photo but the victim’s name. The passport application was denied.

In November 2016, Andujar went to the Registry of Motor Vehicles in Wilmington and applied for a duplicate Massachusetts ID card in the victim’s name. Andujar represented that the victim’s name, date of birth, and Social Security number were his own. The application was granted, and Andujar was issued a replacement ID card bearing his photo with the victim’s name.

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

BOSTON - A Chicopee man pleaded guilty today in federal court in Springfield to distributing heroin.

Steven Brown, 27, pleaded guilty to one count of distribution and possession with intent to distribute heroin. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 15, 2019.

On June 30, 2016, Brown sold 300 bags of heroin to a cooperating witness. Brown has previously been convicted in state court of drug distribution offenses six times between 2008 and 2013 and he was facing state drug charges at the time of this offense.

The charge provides for a sentence of no greater than 30 years in prison, a minimum of three years of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; 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; Springfield Police Commissioner John Barbieri; and Holyoke Police Chief James M. Neiswanger made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.

BOSTON – A Brockton man was charged yesterday in connection with the August 2018 computer intrusion of a Massachusetts company.

Colby Anderson, 25, of Brockton, was charged in a criminal complaint with one count of intentionally causing damage to a protected computer without authorization. Anderson was arrested yesterday and released on conditions following an initial appearance in federal court in Boston.

According to court documents, in July 2018, Anderson was terminated from his position as a Network Operations Center Technician at Blueport Wireless, a high speed internet access provider. Following his termination, Anderson subsequently used his former colleagues’ account login information to delete approximately 100-120 customer configuration profiles, causing widespread internet service issues at customer facilities.

The charging statute provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000 or twice the gross gain or loss.  Sentences are imposed by a federal district court judge based 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 Division made the announcement today. Assistant U.S. Attorneys Mackenzie Queenin and David D’Addio of Lelling’s Cybercrime Unit are prosecuting the case.

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

BOSTON – A Revere man was arrested today and charged in federal court in Boston with distributing fentanyl.

Jassiel Ramirez, 23, was charged with one count of distribution of 40 grams or more of fentanyl. Ramirez will appear in federal court today at 4:00 p.m.

According to court documents, Ramirez distributed fentanyl in and around the Princeton Crossing apartment complex in Salem on Sept. 18 and 21, 2018.

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

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

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

 

BOSTON – A New York man pleaded guilty today in federal court in Springfield to failure to register as a sex offender.

Jose Dones, 43, of Schenectady, N.Y., pleaded guilty to one count of failure to register as a sex offender. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 22, 2019. Dones was charged in February 2018 in federal court, and has been in custody since Jan. 10, 2018, when he was arrested for violating his conditions of supervised release stemming from a 2016 conviction for failing to register as a sex offender.

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

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

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

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

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

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

Gary Herman, 45, of Chester, pleaded guilty to one count of embezzlement from an agency receiving federal funds. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Jan. 17, 2018.  Pursuant to the plea agreement, the government will recommend a sentence of between six and 12 months in prison.  Herman was arrested on June 27, 2019, and subsequently released on conditions.

Herman was an MSP Trooper assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. In 2016, Herman earned $227,826, which included approximately $63,053 in overtime pay. 

Herman was paid for overtime shifts that he did not work at all or from which he left early. Herman concealed his abuse by submitting fraudulent citations designed to create the appearance that he had worked overtime hours that he had not, and falsely claimed in MSP paperwork and payroll entries that he had worked the entirety of his overtime shifts. On multiple occasions Herman fabricated bogus citations, copying the driver information from citations that he had issued months earlier, in order to be paid for overtime that he did not work at all. In total, Herman collected $12,468 for overtime that he did not work.                     

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

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

Herman is the third Trooper to plead guilty as a result of the ongoing investigation. On July 2, 2018, former Trooper Gregory Raftery, 47, of Westwood, pleaded guilty, and on Sept. 14, 2018, suspended Trooper Kevin Sweeney, 40, of Braintree, pleaded guilty. Three other Troopers have been charged: on June 27, 2018, former Lieutenant David Wilson, 57, of Charlton; and former Trooper Paul Cesan, 50, of Southwick, were arrested and charged with the same crime. On July 25, 2018, retired Trooper Daren DeJong, 56, of Uxbridge, was charged.    

Pursuant to the plea agreement, the government will recommend a sentence of between six and 12 months in prison. The charge of theft of government funds provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.    

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

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

BOSTON – The former office manager of a Boston-based dental practice was charged in an indictment unsealed today in connection with embezzling funds from her former employer.

Yuliya Vaysglus, a/k/a Julia Vaysglus, 35, of Cary, N.C., was charged with eight counts of bank fraud, one count of aggravated identity theft and three counts of filing false tax returns. Vaysglus will appear today in federal court in Boston.

The indictment alleges that from 2009 until she was terminated in February 2015, Vaysglus was the office manager of a Boston-area dental practice. Her responsibilities involved tracking client invoices, depositing insurance payments into the practice’s bank account, and recording those deposits for accounting purposes. Between 2009 and December 2014, it is alleged that Vaysglus misappropriated more than $348,000 from the dental practice by diverting to herself at least 276 checks from various insurance companies for services rendered to patients. As part of the scheme, Vaysglus made the checks payable to herself, forged the owner’s signature on the checks, and deposited them into her bank account. In order to conceal the scheme, Vaysglus did not record the insurance payments in the bookkeeping system. The indictment further alleges that Vaysglus failed to report the embezzled funds on her federal tax returns.

The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million. The charge of filing a false tax return  provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. Aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence, one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service in Boston; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Victor A. Wild of Lelling’s Economic Crimes Unit is prosecuting the case.

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

BOSTON – Jasiel F. Correia II, the Mayor of Fall River, was arrested this morning and charged with wire and tax fraud in connection with a multi-year investment fraud scheme.

Correia, 26, was indicted on nine counts of wire fraud and four counts of filing false tax returns. Correia was arrested this morning and will appear in federal court in Boston this afternoon.

As alleged in the indictment, in 2012, Correia founded SnoOwl, an app designed to connect local businesses with their target consumer market. In approximately January 2013, Correia began seeking investors who were willing to provide investment money for SnoOwl in return for equity in the company. In order to incentivize potential investors, Correia falsely represented that he was a successful tech entrepreneur who previously sold another app for a large profit, that investment funds would be used to develop the app, and that he would not take a salary or otherwise draw compensation from SnoOwl.

According to the indictment, seven individuals invested a total of $363,690 in SnoOwl. However, rather than using the investment funds to develop the app as Corria certified in signed agreements with investors, it is alleged that Correia used at least $231,447 – approximately 64% of the money invested – to fund his own lavish lifestyle, burgeoning political career and other business ventures. Specifically, the indictment alleges that Correia used the investment funds to purchase tens of thousands of dollars of luxury items, including a Mercedes, jewelry and designer clothing; to pay for personal travel and entertainment, including tens of thousands of dollars on airfare, hotels, restaurants, casinos, and adult entertainment; to pay down personal student loan debt; to fund his political campaign; and to make charitable donations in his own name.

As alleged in the indictment, Correia concealed the theft of funds from investors by providing false positive updates on SnoOwl’s status and refusing to provide the company’s financial records, which would have revealed his fraud. In addition, Correia concealed his ill-gotten gains from the IRS when filing his 2013 and 2014 individual tax returns.

In the spring/summer of 2015, Correia announced his candidacy for mayor of Fall River. Notwithstanding the facts that he had fraudulently taken hundreds of thousands of dollars of investor money and that SnoOwl was floundering, Correia touted his stewardship of SnoOwl to Fall River voters as one of his primary qualifications for mayor.

By May 2017, Correia was aware that SnoOwl was the subject of a federal investigation, and instructed an accountant to file amended 2013 and 2014 personal tax returns. Because the accountant relied on false information from Correia, the amended returns classified SnowOwl as a sole proprietorship, instead of a partnership, a critical distinction for tax purposes. As a result, Correia was not assessed any tax liability for any of the investor money that he took for himself, and he actually received a refund from the IRS in June 2017.

The charge of wire fraud provides for a sentence of no greater than 20 years in prison, up to three years of supervised release, a fine of up to twice the loss involved and restitution. The charge of filing false tax returns provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Glenn A. Cunha, Massachusetts Inspector General, made the announcement. Assistant U.S. Attorneys Zachary Hafer, Chief of Lelling’s Criminal Division, and David Tobin, of Lelling’s Major Crimes Unit, are 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 Stoughton man was indicted today in federal court in Boston for distributing fentanyl and crack cocaine.

Matthew Pizarro, 30, was indicted on one count of distribution of fentanyl, one count of distribution of 40 grams or more of fentanyl, and one count of possession with intent to distribute 28 grams or more of crack cocaine. Pizarro was arrested in August 2018 on a criminal complaint and has been in custody since.

According to court documents, on July 30, 2018, Pizarro sold an undercover agent approximately 20 grams of fentanyl in exchange for $940. A few days later, Pizarro followed up with the undercover agent about purchasing more drugs. On Aug. 7, 2018, Pizarro sold the undercover agent 70 grams of fentanyl for $2,500. After the exchange, law enforcement arrested Pizarro.

The charges of distribution of 40 grams or more of fentanyl and possession with intent to distribute 28 grams or more of crack cocaine provide for a mandatory minimum sentence of five years and up to 40 years in prison, a mandatory minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. According to court documents, Pizarro has a prior drug conviction; therefore, he faces a mandatory minimum sentence of 10 years and up to life in prison, at least eight years and up to a lifetime of supervised release, and a fine of up to $8 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; Sean Smith, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. 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 Boston woman was sentenced yesterday in federal court in Boston for embezzling over $229,000 from a small business that employed her.

Kelly A. Lynch, 40, was sentenced by U.S. District Court Judge Indira Talwani to 18 months in prison, five years of supervised released and ordered to pay $229,088 in restitution. In July 2018, Lynch pleaded guilty to one count of bank fraud. In February 2018, Lynch was arrested and charged by criminal complaint and subsequently released on conditions.

Lynch was hired in April 2017 as the controller of a small company in a Boston suburb. Her duties included managing incoming invoices, paying bills by check and wire transfer, bookkeeping and financial account maintenance. As a result, Lynch had access to the company’s checkbook, bookkeeping/accounting software (QuickBooks), and online bank accounts.

From April 2017 until her termination in January 2018, Lynch stole funds from the business for her personal use. Specifically, Lynch wrote unauthorized checks to herself using the company checkbook. Some of the checks were pre-signed, blank checks that one of the founders had signed with the intention that Lynch would later use them for business purposes. After she used those checks, Lynch began signing the company checks herself, forging the founder’s signature. At times, Lynch also added an entry to the memo line to indicate that the funds were for “Consulting Fees,” but as a salaried employee, Lynch was not entitled to consulting fees. Lynch then endorsed the checks she wrote to herself and – without authorization and for no business purpose – deposited them in her personal bank account. In total, Lynch stole approximately $141,845 from the company’s bank account in this manner.

During approximately the same time period, Lynch repeatedly logged onto the company’s online bank account and directed that payments be made via transfer to her personal credit cards. As a result, Lynch stole another $87,243 from the company’s bank account. 

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. Assistant U.S. Attorney Amy Harman Burkart, Chief of Lelling’s Cybercrimes Unit, prosecuted the case.

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

Juan Confesor Lara Carmona, 29, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to six months in prison and one year of supervised release. Lara Carmona will be subject to deportation proceedings upon completion his sentence. In May 2018, Lara Carmona pleaded guilty to one count of illegal reentry of a deported alien. Lara Carmona is currently in state custody and awaiting trial in Essex Superior Court on drug distribution charges.

On Oct. 20, 2017, law enforcement in Lawrence arrested Lara Carmona and charged him with distribution of cocaine and fentanyl. At the time of his arrest, Lara Carmona’s fingerprints were obtained, and he was determined to be illegally present in the United States having been previously deported on Jan. 16, 2016.

United States Attorney Andrew E. Lelling and Todd 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 – The co-owners of a Boston-area home healthcare company were charged in federal court in Boston today for underreporting income to the IRS resulting in over $1 million in losses.

Hannah Holland, 51, of Quincy, and Sheila O’Connell, 33, of North Weymouth, were charged in an Information with one count of conspiracy to defraud the United States and three counts of aiding and assisting in the preparation of false tax returns.

According to court documents, Holland and O’Connell co-owned and operated Erin’s Own Home Healthcare Inc. (“Erin’s Own”), a home healthcare business. Between 2010 and 2014, Holland and O’Connell cashed over $3.5 million of Erin’s Own business checks through nominee bank accounts controlled by an unnamed individual. During this time period, Holland also personally cashed over $77,000 of Erin’s Own business receipts. None of these funds were ever reported to the IRS or accounted for in the company’s tax filings. Instead, Holland and O’Connell provided their tax preparer with a limited set of the financial records that did not cover the substantial amounts of business funds Holland and O’Connell diverted. As a result of the underreporting, Erin’s Own caused a loss of $1,126,112 to the IRS.

The conspiracy charge provides for a sentence of no greater than five years in prison, three years supervised release, and a fine $250,000. The charge of aiding and assisting in the preparation of false tax returns provides for a sentence of no greater than three years in prison, one year 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 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 Jordi de Llano, Deputy Chief of Lelling’s Economic Crimes Unit, and Trial Attorney Brittney Campbell of the Department of Justice’s Tax Division are prosecuting the case.

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

BOSTON – A man with alleged ties to the Latin Gangsta’ Disciples street gang pleaded guilty today in federal court in Boston  in connection with the sale of numerous firearms in and around Lawrence.

Jose Ilarraza, a/k/a “Kae-Kae,” 26, of Newburyport, pleaded guilty to dealing firearms without a license and conspiracy to deal firearms without a license. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Jan. 23, 2019. In February 2018, Ilarraza was charged along with Bryan Torres-Almanzar, a/k/a “Flex,” 19, and Eric Valentin, a/k/a “Jefe,” 22,   both of whom previously pleaded guilty.

In September 2017, an individual who was working as a cooperating witness for federal investigators was approached by Ilarraza after Ilarraza heard that the cooperating witness was interested in obtaining firearms to send to the Dominican Republic. Ilarraza, who was incarcerated at the time on state charges of breaking and entering and resisting arrest, instructed the cooperating witness to contact Torres-Almanzar, who, according to Ilarraza, was heavily involved in firearms trafficking.

On six occasions between Sept. 12, 2017, and Oct. 19, 2017, another cooperating witness used Ilarraza’s tip to purchase firearms from Torres-Almanzar and Valentin. The cooperating witness was directed to put the proceeds of the first such sale into Ilarraza’s canteen account at the Middleton House of Corrections.

The charges of dealing in firearms without a license and conspiracy each provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Lawrence Police Chief Roy P. Vasque; Essex County Sheriff Kevin F. Coppinger; Essex County District Attorney Jonathan W. Blodgett; Lowell Superintendent of Police Kelly Richardson; and Nashua (N.H.) Police Chief Andrew J. Lavoie made the announcement today. 

BOSTON – A Methuen physician was convicted today by a federal jury of insider trading in the shares of Ariad Pharmaceuticals based on information gleaned from his spouse, who worked at the company.

Harold Altvater, 57, was convicted following a one-week jury trial of three counts of securities fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 16, 2019.

The charges related to three occasions in late 2013 when Dr. Altvater misappropriated nonpublic information from his spouse about the safety of Ariad’s only marketed product, the leukemia drug Iclusig, as well as about the company’s negotiations with the U.S. Food and Drug Administration (FDA) concerning whether the drug would be permitted to remain on the market in the wake of serious adverse events that occurred during the drug’s clinical trials. At the time, Altvater’s spouse was the director of drug safety for Ariad. Without his spouse’s knowledge, Altvater then traded in Ariad shares in his personal accounts ahead of several critical announcements, avoiding losses and notching gains totaling approximately $115,000. In 2017, Ariad was acquired by Takeda Pharmaceutical Co., Ltd.

Today’s verdict marks the second time in three months that a Boston jury has convicted defendants of insider trading in the shares of local pharmaceutical companies. In July, two defendants, Schultz “Jason” Chan, 54, of Newton, and Songjiang Wang, 54, of Westford, were convicted of securities fraud and conspiracy to commit securities fraud in connection with a scheme to trade on inside information concerning their employers, Akebia Pharmaceuticals and Merrimack Pharmaceuticals, respectively. Chan and Wang are scheduled to be sentenced on Oct. 22 and Nov. 5, 2018.

In June 2018, a fourth pharmaceutical executive, Robert Gadimian, of California-based Puma Technology, Ltd., was sentenced to 27 months in prison after pleading guilty to seven counts of securities fraud in connection with trading on inside information in that company, earning profits of nearly $1 million.

The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors. 

United States Attorney Andrew E. Lelling and Harold Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Economic Crimes Unit and Special Assistant U.S. Attorney Michael Joseph Vito are prosecuting the case.

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

Herzzon Sandoval, a/k/a “Casper,” 36, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 20 years in prison and two years of supervised release. In February 2018, Sandoval and two other MS-13 members, Edwin Guzman, a/k/a “Playa,” 32, and Erick Argueta Larios, a/k/a “Lobo,” 33, both Salvadoran nationals residing in the U.S. illegally, 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, also a Salvadoran national illegally residing in the U.S., 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. Sandoval and Guzman 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 Sandoval, Guzman, 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. Cesar Martinez, Guzman, and Argueta Larios are scheduled to be sentenced on Nov. 6, Nov. 15, and Nov. 19, 2018, respectively.

Sandoval 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 Worcester man pleaded guilty today in federal court in Worcester for his role in a methamphetamine conspiracy.

Adam Germano, 37, pleaded guilty to conspiring to distribute and to distributing methamphetamine from Las Vegas to Worcester. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Jan. 4, 2019. Germano was arrested in March 2017, and has been in custody since that time. 

Germano admitted to shipping large quantities of methamphetamine into Massachusetts, New Hampshire, and Florida, and to distributing methamphetamine to dealers and others in Massachusetts and New Hampshire in exchange for cash. In January 2017, Germano arranged for a package to be shipped via U.S. mail from Las Vegas to Worcester. The package was intercepted and found to contain more than two kilograms of approximately 97% pure methamphetamine. In March 2017, during a traffic stop in Concord, N.H., police located methamphetamine and a handgun hidden in the engine of the car that Germano was driving.

Germano faces a sentence of between 10 years and life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.         

United States Attorney Andrew 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.  Valuable assistance was provided by the Police Departments in Merrimack and Concord, N.H.  Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.

BOSTON – A Sturbridge woman was indicted by a federal grand jury in Worcester yesterday in connection with receiving government funds for a disabled child who was no longer in her custody.

Tanya Chobot, 32, was indicted on one count of government theft and one count of making a false statement to the Social Security Administration. She was charged by criminal complaint and arrested on Sept. 7, 2018, and has been detained since that time.

According to the charging documents, Chobot accepted more than $23,000 in Social Security disability payments on behalf of her biological child, but did not have custody or provide care to the child. On multiple occasions between 2011 and 2017, Chobot made materially false and fraudulent statements to Social Security to facilitate her continued receipt of the funds. For example, in October 2013, Chobot submitted a report to Social Security that falsely indicated that the child lived with her and that she had used money from Social Security for the support of the child. Chobot did not, in fact, use the Social Security payments made on behalf of the child for that child’s benefit.

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

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

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

BOSTON – A Connecticut man was indicted yesterday in federal court in Springfield on a federal firearms charge.

Jermane Merlyn Samuel, 35, of Enfield, Conn., was indicted on one count of possessing and receiving a firearm with an obliterated serial number. Samuel was charged by complaint and arrested in September 2018; he has been in custody since.

According to court documents, on Sept. 20, 2018, Samuel received and possessed a Model 27 .40 caliber Glock pistol and a Model 17 9mm Glock pistol in a hotel parking lot in West Springfield. The serial numbers of both pistols had been obliterated.

The offense of receiving and possessing a firearm with an obliterated serial number carries a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement. Assistant U.S. Attorney Katharine A. Wagner of Lelling=s Springfield Office is prosecuting the case.

The details contained in an 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 Charlestown man was arrested today for distributing fentanyl out of an apartment in Chelsea. 

Cruz Villar, 31, was charged with one count of distribution and possession with intent to distribute fentanyl - aiding and abetting; and one count of possession with intent to distribute 40 grams or more of fentanyl - aiding and abetting.

The first charge provides for a sentence of up to 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. The second charge provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement today. Assistant U.S. Attorney Brian A. Pérez‑Daple of Lelling’s Criminal Division 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 a court of law.

BOSTON – Dozens of individuals were arrested today on federal drug, firearms, and immigration offenses, as well as state warrants. In addition, 11 criminal aliens were arrested and will be processed administratively. Today’s sweep, netting more than 35 criminals in and around the City of Lawrence, is part of the Department of Justice’s Project Safe Neighborhood Initiative (PSN), which aims to bring together all levels of law enforcement to reduce violent crime.

As part of today’s sweep, approximately 35 defendants were charged with federal and state offenses, and nine are still at large. Eleven criminal aliens were arrested by ICE and will be processed administratively for removal from the United States, and 13 are currently at large.

The arrests are the culmination of a number of federal investigations dubbed Operation Law and Order, which targeted impact players and repeat offenders in and around the City of Lawrence, all of whom have prior convictions for acts of violence, firearm offenses and/or drug trafficking, and those with criminal records who are in the United States illegally.

Today’s operation involved over 200 federal law enforcement agents from all over New England, including the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; Homeland Security Investigations; the Federal Bureau of Investigation; the U.S. Marshals Service; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

During the investigations, law enforcement officers bought or seized approximately 10 kilos of fentanyl.

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Todd M. Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; United States Marshal John Gibbons of the District of Massachusetts; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Essex County District Attorney Jonathan Blodgett made the announcement today. 

The federal cases are being prosecuted by Assistant U.S. Attorneys in Lelling’s Organized Crime and Gang Unit, Narcotics and Money Laundering Unit, and the Major Crimes Unit. The state cases are being prosecuted by the Essex County District Attorney’s Office.  Administrative arrests made by ICE will be handled in Immigration Court. 

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

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Oct. 3, 2018, marked one year since Attorney General Jeff Sessions reinvigorated PSN as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

The following defendants were charged in federal court:

1. Johan Abreau, 23, a Dominical national, of Lawrence, charged with various drug offenses, including conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl;
2. Sabrina Aixa Ramos, 27, of Lawrence, charged with one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl, one count of possession with intent to distribute and distribution of fentanyl, two counts of possession with intent to distribute and distribution of fentanyl and heroin – aiding and abetting;
3. Carolina Alonzo, 36, of Lawrence, charged with one count of conspiracy to launder monetary instruments;
4. Oscar Antigua, 37, of Lawrence, charge with distribution of 40 or more grams of fentanyl;
5. Jose Aquino Camilo, a/k/a “Keko,” a/k/a “Kiko,” 39, of Lawrence, charged with one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one kilogram or more of heroin;
6. Santo Eulogio Baez-Calbojal, a/k/a “Jamaican Freddy,” 47, of Haverhill, charged with distribution of and possession with intent to distribute 40 grams or more of fentanyl;
7. Juan Brito, a/k/a “Juan Bota,” a/k/a “Manual Lugo,” a/k/a “One Eye,” a/k/a “Bolivar Cruz,” a/k/a “Roberto Quinonez-Pomale,” 36, a Dominican national residing in Lawrence, currently in state custody, charged with one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one kilogram or more of heroin and one count of unlawful reentry of a deported alien;
8. Edilberto Calle-Alvarez, 23, of Lowell, charged with various drug offenses, including conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl;
9. Antonio Camillo, 21, of Lawrence, charged with distribution of and possession with intent to distribute fentanyl;
10. Rafael Cintron, 25, a Dominican national residing in Lawrence, charged with conspiracy to distribute and possess with intent to distribute fentanyl;
11. Carlos Cosme Cuevas, 34, of Lawrence, charged with one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one kilogram or more of heroin;
12. Caonabo Cruz, 52, a Dominican national residing in Lawrence, charged with possession with intent to distribute 400 grams or more of fentanyl;
13. Yunior De La Cruz-Zapata, 20, a Dominican national residing in Lawrence, currently in state custody, charged with conspiracy to distribute and possess with intent to distribute fentanyl;
14. Jesus Figueroa , a/k/a “Chuy,” a/k/a “Chuito,” 28, of Lawrence, charged with one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one kilogram or more of heroin;
15. Cesar Franco Lara, 34, Dominican national residing in Lawrence, charged with one count of misuse of Social Security number and aggravated identity theft;
16. Identity unknown, of Lawrence, charged with one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one kilogram or more of heroin and one count of conspiracy to launder monetary instruments;
17. Jose Hernandez, a/k/a “Fatty Mexicano,” 40, of Lawrence, charged with various drug offenses, including conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl;
18. Elvi Lajara, 23, of Lawrence, currently in state custody, charged with various drug offenses, including conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl;
19. Franklyn Laras, 21, of Lawrence, currently in state custody, charged with felon in possession of a firearm and ammunition;
20. Sergio Manuel Lara-Suarez, a/k/a “Sergio Manuel Lara-Juarez,” 42, of Lawrence, currently in state custody, was charged with charged with heroin and fentanyl distribution offenses;
21. Alan Christopher Pascual Sanchez, 30, a Dominican national formerly residing in Lawrence, currently in ICE custody, charged with one count of illegal reentry;
22. Juan Algenis Perez Bernabel, 36, a Dominican national residing in Lawrence, charged with drug offenses, including heroin, fentanyl, and cocaine;
23. Kadeem Pimentel, 23, of Haverhill, currently in state custody, charged with being a felon in possession of a firearm and ammunition and possession of an unregistered sawed-off shotgun;
24. Jonathan Platon, 31, of Lawrence, charged with various drug offenses, including conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl;
25. Daniel De Jesus Polonia Morillo, 57, a Dominican national residing in Lawrence, charged with one count of false statement on an application for Social Security benefits and aggravated identity theft;
26. Manuel Rivera, 35, of Lawrence/Lynn, for federal probation violation resulting from a felon in possession of a firearm convictions;
27. Wilmer Rogue, 22, of Lawrence, currently in state custody, charged with being a felon in possession of a firearm;
28. Leonardo Santos, 47, a Dominican national residing in Lawrence, charged with a drug offense, specifically cocaine; and
29. Isua Torres-Pineda, a/k/a “Edwin Carmona,” 26, of Salem, charged with possession with intent to distribute 40 grams or more of fentanyl.

The following defendants were arrested on state charges:

1. Nick Castillo, 29, a Canadian national, charged with fentanyl conspiracy;
2. Celestino Escalera, 24, of Lawrence, for assault to murder – firearm;
3. Luis Enrique Herrera, 26, a Dominican national residing in Lawrence, charged with possession with intent to distribute fentanyl;
4. Roberto Estrada-Alfaro, 54, of Haverhill, for failure to register as a sex offender;
5. Paul Lapointe, 55, of Lawrence, for failure to register as a sex offender; and
6. Jose Mulero-Nieves, a/k/a “Flaco,” 37, of Methuen, charged with drug offenses.

        

In addition, approximately 11 criminal aliens, all of whom have prior convictions for offenses ranging from drug distribution to assault and battery, were arrested by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and will be processed administratively.

 

 

BOSTON – A Boston gang member pleaded guilty today in federal court in Boston to distributing crack cocaine in a Jamaica Plain housing development.

Dominique Finch, aka “Heff,” 27, pleaded guilty to conspiracy to distribute cocaine base and distribution of cocaine base within 1,000 feet of a public housing facility. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Jan. 9, 2019.

Following a two-year investigation, Finch and eight co-defendants were charged in January 2018 in connection with illegal drug distribution and firearm possession within and near the Mildred C. Hailey Apartments in Jamaica Plain, formerly known as the Bromley Heath Housing Development. On July 6, 2016, Finch, a member of the Heath Street Gang, conspired with his brother to distribute crack cocaine inside the development. According to court records, Finch has a lengthy criminal record that includes convictions for assault with a dangerous weapon, armed robbery, witness intimidation, assault and battery, and assault and battery with a dangerous weapon. Finch was on pretrial release in Suffolk Superior Court at the time he and his brother made the drug sale.

The investigation and arrests sought to reduce violence and improve the quality of life for residents of the Mildred C. Hailey Apartments by removing individuals who trafficked drugs and who were involved in gang activity in and around the development.

The charge of conspiracy to distribute cocaine base and distribution of cocaine base within 1000 feet of a public housing facility provides for mandatory minimum sentence of one year and no greater than 40 years in prison, a minimum of six years and up to life of supervised release and a fine of $2 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; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Gross made the announcement today. Assistance was also provided by the Boston Housing Authority’s Department of Police and Public Safety.

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 – The Department of Justice announced today that six Massachusetts jurisdictions will receive over $3 million in grant funding to bolster school security, educate and train students and faculty and support law enforcement officers and first responders who arrive on the scene of a school violence incident.

“President Trump and his administration will ensure the safety of every American school,” Attorney General Jeff Sessions said. “Earlier this year he signed into law the STOP School Violence Act, which provides grant funding to develop anonymous school threat reporting systems, to implement school building security measures, and to train students, school personnel, and law enforcement on how to prevent school violence.  Today I am announcing $70 million in these grants to hundreds of cities and states across America.  These grants will go a long way toward giving young people and their families both safety and peace of mind.”

“There is no greater priority than preventing violence in schools and keeping students safe,” said United States Attorney Andrew E. Lelling. “Schools should be a safe haven for young people, but as recent events across the country have demonstrated, schools are increasingly becoming targets. These awards will provide new technology for reporting systems and other threat deterrent measures, and create school safety training and education programs for school administrators, staff, students and first responders.”

The Justice Department is awarding more than 220 grants, through three funding sources, to jurisdictions across the country to help make schools more secure:

• STOP School Violence Threat Assessment and Technology Reporting Program: The Massachusetts Executive Office of Public Safety and Security (EOPSS) will receive $750,000 to establish regional threat assessment teams, which will involve collaboration among the Commonwealth’s public safety, public health and public education disciplines. The City of Fitchburg, through its police department, will receive $57,364 to solicit professional development training opportunities related to threat assessment team training; to host monthly debriefings regarding concerning issues and behaviors at the schools; and to evaluate the security measures of each school, which will include a detailed assessment of each campus and recommendations for improvements. They will also receive $13,300 to implement anonymous tip reporting software throughout the Fitchburg Public School District over a two year period.

• STOP School Violence Prevention and Mental Health Training Program: The Massachusetts Attorney General’s Office (MAGO) will receive $1 million to provide school violence and suicide prevention trainings to school districts across the state. The MAGO will partner with Sandy Hook Promise (SHP) to train and educate students and educators in the three Know the Signs violence prevention programs; to re-train students, educators, and schools to provide ongoing support; to create a school and parents’ resource guide of available mental health services in Massachusetts for young people and information on the warning signs of mental illness; and to collect data on all training and education sessions. With grant funding, the MAGO and SHP will be able to train participants in at least 50 school districts, encompassing over 260 schools and almost 140,000 students in grades 6-12. 

• COPS Office School Violence Prevention Program (SVPP): The cities of Fitchburg, Lowell, Revere and Westfield will receive grants to fund school safety measures including coordination with law enforcement, training for law enforcement to prevent student violence, and technology for expedited notification of law enforcement during an emergency.

The grants are authorized by the STOP School Violence Act, which is intended to improve school security by helping students and teachers reduce exposure to risks, prevent acts of violence, and quickly recognize and respond to violent attacks.

Addition information on the grant announcements is available here: STOP School Violence Threat Assessment and Technology Reporting Program, STOP School Violence Prevention and Mental Health Training Program, and COPS Office School Violence Prevention Program.

BOSTON – A Randolph man was sentenced today in federal court in Boston for being a previously convicted felon in possession of a firearm.

Dararong James Heang, 28, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 21 months in prison and two years of supervised release. In June 2018, Heang pleaded guilty to being a convicted felon in possession of a firearm and ammunition.

Shortly after midnight on June 16, 2017, law enforcement officers stopped Heang and two other individuals in the area of Shirley Avenue in Revere, which had been the scene of recent gang violence. During a subsequent search, Heang was found to be in possession of a semi-automatic firearm and seven rounds of ammunition. At the time, Heang was on state probation and had previously been convicted of multiple felonies in state court, including assault and battery and a drug offense.

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Suffolk County District Attorney John P. Pappas; and Revere Police Chief James R. Guido made the announcement today.

BOSTON - A Newton man was sentenced today in federal court in Boston for conducting an extensive cyberstalking campaign against his former housemate, her family members, co-workers, friends, and other unrelated individuals. The defendant hacked into his former housemate’s online accounts, posted fraudulent sexual solicitations in the victims’ names, sent unsolicited images of child pornography, and made over 120 hoax bomb threats.  

Ryan S. Lin, 25, was sentenced by U.S. District Court Judge William G. Young to 210 months in prison and five years of supervised release, after pleading guilty in April 2018 to seven counts of cyberstalking, five counts of distribution of child pornography, nine counts of making hoax bomb threats, three counts of computer fraud and abuse and one count of aggravated identity theft. Lin was arrested in October 2017, and has been in custody since.

From approximately May 2016 through Oct. 5, 2017, Lin engaged in a cyberstalking campaign against his housemate, a 25-year-old female victim. Lin hacked into the victim’s online accounts and devices and stole the victim’s private photographs, personally identifiable information, and private diary entries, which contained sensitive details about her medical, psychological and sexual history, and distributed the material to hundreds of people associated with her.

Lin also created and posted fraudulent online profiles in the victim’s name and solicited rape fantasies, including a “gang bang,” and other sexual activities, which in turn caused men to show up at the victim’s home. He also engaged in a number of other activities targeting the victim, including relentless anonymous text messaging and hoaxes.

In addition to his former housemate, Lin engaged in cyberstalking activity aimed at six other individuals. Some were associated with the primary victim, and others were unrelated. The additional victims include two women who were Lin’s housemates in Newton at the time of his arrest. On multiple occasions, Lin sent unsolicited sexually explicit images of prepubescent children to the primary victim’s mother, the victim’s co-worker and housemate, a friend of the victim who resided in New Jersey, and two of Lin’s former classmates in New York.

Furthermore, Lin falsely and repeatedly reported to law enforcement that there were bombs at the primary victim’s Waltham residence. Lin also created a false social media profile in the name of the primary victim’s housemate in Waltham and posted that he was going to “shoot up” a school in Waltham, stating that there would be “blood and corpses everywhere.” These threats became part of a prolonged pattern of threats in Waltham, and eventually in surrounding towns, including schools, homes, businesses and other institutions.  

United States Attorney Andrew E. Lelling; 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 Waltham Police Chief Keith MacPherson made the announcement today. The U.S. Attorney’s Office would also like to acknowledge the assistance of the Middlesex County District Attorney’s Office and the Watertown, Newton and Wellesley Police Departments. Assistant U.S. Attorney Amy Harman Burkart, Chief of Lelling’s Cybercrime Unit, and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case. 

BOSTON – The founder and operator of a Swiss asset management firm was arrested today on charges of engaging in a massive global securities fraud scheme that netted trading proceeds of approximately $164 million.   

Roger Knox, 47, a resident of the United Kingdom, was charged by criminal complaint with securities fraud and conspiracy to commit securities fraud. Knox was detained following an initial appearance today before U.S. Magistrate Judge M. Page Kelley.  

The complaint alleges that from June 2015 until the present, Knox and co-conspirators operated a purported asset management firm based in Switzerland called Silverton, and later renamed Wintercap. Through this business, Knox allegedly helped facilitate pump-and-dump and other market manipulation schemes by selling massive quantities of microcap securities on behalf of “control groups” who secretly owned the stock through nominee shareholders, and who simultaneously orchestrated promotional campaigns and other efforts to artificially inflate the price and trading volume of those shares. The complaint alleges that Knox then funneled the proceeds of the securities fraud—totaling an estimated $164 million—to coconspirators in the United States and elsewhere through a complex money transfer system that disguised the source and nature of the funds. 

In a parallel action, the Securities and Exchange Commission (SEC) in Boston announced civil charges against Knox today. 

The charge of securities fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $5 million. The charge of conspiracy to commit securities 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 gain or gross loss. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The SEC provided assistance with the investigation. Assistant U.S. Attorney Eric Rosen of Lelling’s Economic Crimes Unit is prosecuting the case. 

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

BOSTON – The Department of Justice is awarding over $8.4 million to 12 Massachusetts programs that are working to combat the opioid crisis through prevention, treatment and enforcement.

On the first day of National Substance Abuse Prevention Month, Attorney General Jeff Sessions announced that the Department of Justice is awarding nearly $320 million in federal funding to help those most impacted by the deadliest drug crisis in American history. Of that, the Justice Department’s Office of Justice Programs (OJP) is awarding $8.4 million to 12 Massachusetts programs.

“In 2017, over 2,000 Massachusetts residents died from drug overdoses,” said United States Attorney Andrew E. Lelling. “The opioid crisis is an unprecedented public health crisis in the United States, but we are committed to the President’s plan to end the epidemic through prevention, treatment and enforcement. With over $8 million in federal grant funding, programs in Massachusetts can expand to serve larger populations, increase services, and support those who are most impacted by this deadly epidemic. I applaud the grant recipients for their commitment to serve their communities in this way.”

Among the recipients is Plymouth County Outreach (PCO), which was awarded $496,650. PCO is an opioid prevention and recovery coalition made up of 27 municipal police departments in Plymouth County, along with the Bridgewater State University Police, District Attorney Timothy Cruz and Sheriff Joseph McDonald. PCO partners with healthcare, treatment and recovery agencies, local coalitions, faith-based organizations and hospitals to connect at-risk persons with treatment and recovery options in advance of an overdose. PCO will be honored for their work by the International Association of Chiefs of Police’s (IACP) Leadership in Community Policing Award on Oct. 9th in Orlando, Fla.

In addition, Wayside Youth and Family Support Network was awarded $481,428. Wayside’s Trauma Intervention Services will use the funding to provide counseling and advocacy to children and families who have suffered due the opioid crisis in Worcester, Norfolk and Middlesex counties.

Other recipients of federal grant funding in Massachusetts include:

• The Middle District Attorney’s Office awarded one grant of $360,000 and one of $500,000;
• Boston  Police Department awarded $305,362;
• City of Holyoke Police Department awarded $448,025;
• Massachusetts Administrative Office of the Trial Court awarded $1.5 million;
• Advocates for Human Potential awarded $1.55 million;
• City of Worcester awarded $$744,668;
• Plymouth County District Attorney’s Office awarded $541,300;
• Franklin County Sheriff’s Office awarded $1,000,999; and
• LUK Crisis Center awarded $500,000.

The complete list of grant funding is available here.

October marks two important anti-drug events: Red Ribbon Week and National Prescription Drug Takeback Day. Red Ribbon Week takes place every year between October 23-31 and encourages students, parents, schools, and communities to promote drug-free lifestyles. The Drug Enforcement Administration’s (DEA) National Prescription Drug Take Back Day on October 27 provides a safe, convenient and responsible means of disposing of prescription drugs, while also preventing drug addiction and overdose deaths. DOJ expanded on DEA’s Drug Takeback Days and collected more than 2.7 million pounds of expired or unused prescription drugs since April 2017.

BOSTON – A Worcester man pleaded guilty yesterday in federal court in Worcester to possessing child pornography.

James M. Stoddard, 38, pleaded guilty to one count of possession of child pornography. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Jan. 3, 2019. Stoddard was arrested and charged in federal court in June 2018.

In February 2018, the National Center for Missing and Exploited Children received a CyberTip reporting that a file depicting apparent child pornography was uploaded from, what was later determined to be, an IP address associated with Stoddard. Further investigation led authorities to execute a state search warrant at Stoddard’s residence in Worcester, which revealed numerous videos and images of child pornography, including videos of girls as young as nine-years-old engaged in sex acts with adult men. Investigators also found a homemade child-like sex doll and several pairs of female, child-sized undergarments.    

During the search, Stoddard was not present, but had contacted his first-floor tenant for a law enforcement phone number that he could contact. Stoddard then called an officer and informed him that he was in Natick, suicidal, and had climbed a tree. Multiple law enforcement agencies responded to Stoddard’s location and, after lengthy negotiations, Stoddard climbed down from the tree. He was subsequently arrested, charged in state court, and has been in state custody since.

Court documents also indicate that Stoddard is a Level 1 sex offender and failed to register his current address with the Massachusetts Sex Offender Registry Board as he is required to do given a prior conviction for a child pornography offense.

Due to a prior conviction, Stoddard faces a mandatory minimum sentence of 10 years and up to 20 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation; and Worcester Police Chief Steven M. Sargent made the announcement. The Worcester County District Attorney’s Office and the Natick Police Department provided valuable assistance. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office is prosecuting the case.

This 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 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/.