District of Massachusetts

BOSTON – A Boston woman was charged today in federal court in Boston with bank fraud in connection with the embezzlement of over $229,000 from a small business that employed her.

Kelly A. Lynch, 40, was charged by Information with one count of bank fraud. In February 2018, Lynch was arrested and charged by criminal complaint and was released on conditions.

According to court documents, Lynch was hired in April 2017 as the controller of a small company in a Boston suburb. Lynch’s 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 from the company’s bank account. 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 had used those checks, Lynch began signing the company checks herself, forging the 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 ACH transfer to her personal credit cards. As a result, Lynch stole another $87,243 from the company’s bank account. 

The charge of bank fraud provides for a sentence of no greater than 30 years in prison, three years of supervised release, a fine of up to $1 million, restitution and forfeiture. 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 Amy Harman Burkart, Chief of Lelling’s Cybercrimes Unit, is prosecuting the case.

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

BOSTON – A Brazilian national pleaded guilty today in federal court in Boston to unlawful reentry of a deported alien.  

Willian Lacerda, 32, a Brazilian national formerly residing in Framingham, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for July 12, 2018.

On Feb. 20, 2018, Lacerda was encountered by law enforcement and determined to be illegally present in the United States. Lacerda was previously deported on Dec. 16, 2009.

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

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

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

Anthony Durrant, 51, a Jamaican national residing in Dorchester, pleaded guilty to one count of illegal reentry of a deported alien. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Sept. 13, 2018.

On Nov. 28, 2017, law enforcement officers in Boston encountered Durrant and determined him to be illegally present in the United States. Durrant was previously deported on July 26, 2012.

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

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

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

Carlos Altunar-Rueda, 25, pleaded guilty to one count of illegal reentry of a deported alien. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Sept. 4, 2018.

On Feb. 8, 2017, law enforcement officers in Boston encountered Altunar-Rueda and determined him to be illegally present in the United States. Altunar-Rueda was previously deported on Feb. 23, 2013.

Altunar-Rueda faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

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

BOSTON – A Florida man, who now resides in Melrose, pleaded guilty today in federal court in Boston to making fraudulent charges using stolen credit card information for purchases at fictitious restaurants that he and his co-conspirators created, all in an effort to defraud the credit card processing companies who paid the fraudulent charges. 

Charles J. Pedoto, 67, formerly of Naples, Fla.,  pleaded guilty to one count of conspiracy to commit access device fraud, two counts of access device fraud and one count of aggravated identity theft. U.S. District Court Judge Indira Talwani scheduled sentencing for Sept. 6 2018.

From April 9, 2014 to May 14, 2014, Pedoto and his coconspirators created fictitious restaurants, including Marshalls Steakhouse, Carroll Steak, Richards Steakhouse, MJ Fox Pub, and Robertson Steak, and opened bank accounts in the names of these fictitious restaurants. Pedoto and his coconspirators obtained stolen credit and debit card account numbers and information and then created counterfeit access devices (i.e. debit and credit cards) by re-encoding the magnetic strips from the cards. They then charged purchases at their fictitious restaurants and submitted the fraudulent transactions to credit card processing companies. After the fraudulent transactions were processed and the funds were transmitted to the restaurants’ accounts, Pedoto and his coconspirators withdrew the funds and mailed the proceeds for later pick-up by Pedoto under a fraudulent Massachusetts identification card in the name of Francis P. Rosen.

On May 9, 2014, law enforcement conducted a trash pull at Pedoto’s Naples, Fla., residence, which revealed multiple receipts indicating numerous credit card charges made at the fictitious Robertson Steak. The trash pull also revealed a white plastic card that had two credit card numbers encoded on the magnetic strip, one of which had a fraudulent charge to Carroll Steak and the other a fraudulent charge to Robertson Steak. Two credit card processing companies suffered losses totaling $160,395.

The charge of conspiracy to commit access device fraud provides for a sentence of no greater than five years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of access device fraud provides for a sentence of no greater than 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, one year of supervised release, and a fine of $250,000. 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; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Jeff Kelly, Resident Agent in Charge of the U.S. Secret Service, Fort Myers Resident Office made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Major Crimes Unit is prosecuting the case.

BOSTON – A Dominican national was indicted yesterday in federal court in Boston with identity theft, aggravated identity theft, theft of public money, and illegally reentering the United States after being deported.  

Isidro Viscaino-Soto, a/k/a Ysidro Vizcaino, 58, a Dominican national residing in Boston, was indicted on one count each of identity theft, aggravated identity theft, theft of public money and illegal reentry of a deported alien. Viscaino-Soto was arrested and charged by complaint on April 17, 2018, and has been in custody since.

According to court documents, law enforcement officers in Boston discovered Viscaino-Soto on April 12, 2018, and determined him to be illegally present in the United States.  Viscaino-Soto was previously deported on July 31, 2000, following a conviction for drug offenses. Court documents further allege that Viscaino-Soto used the Social Security number of a U.S. citizen from Puerto Rico in order to receive unemployment insurance, and in so doing, stole approximately $9,000 in federally-funded MassHealth benefits.

Aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, one year of supervised release, and a fine of $250,000. The identity theft charge provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of theft of public 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, whichever is greater. The charge of illegal reentry provides for a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000. Viscaino-Soto will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; and, Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts, made the announcement.  Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.

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

BOSTON – A Brazilian national, who entered the United States illegally in 2002, pleaded guilty and was sentenced to time served yesterday in federal court in Boston for possessing firearms and ammunition.

Acemar Damaceno, 38, who formerly resided in Weymouth, pleaded guilty to one count of being an alien in possession of a firearm and ammunition, before U.S. District Court Judge Denise Casper, who sentenced Damaceno to time-served (approximately 13 months in prison).  

Law enforcement authorities received information that a man known as “Marcus” was offering to sell firearms to a confidential informant (CI). On March 11, 2017, the CI visited Marcus’ home in Weymouth where Marcus stated that he would kill anybody for a fee. Marcus proceeded to show the CI a .45 caliber handgun, a shotgun, and a bag containing various amounts of ammunition that Marcus hid in the basement of his home. Marcus also offered to sell the .45 caliber handgun to the CI for $1500. The CI cooperated with law enforcement officers and identified Marcus as Acemar Damaceno. 

On April 7, 2017, law enforcement officers stopped Damaceno in his vehicle as he left his home, at which time Damaceno admitted that he was not a citizen and that he was illegally present in the United States. Damaceno was administratively arrested. During a search of his residence, a .45 caliber Kimber Ultra Ten II pistol loaded with ten .45 caliber rounds of ammunition and an Iver Johnson Champion shotgun were recovered. A trace of the Kimber pistol determined that it was reported stolen in Connecticut in October 2011.

United States Attorney Andrew E. Lelling and Peter C. Fitzhugh Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Major Crimes Unit prosecuted the case.

BOSTON – A Wilmington man was sentenced today in federal court in Boston for armed bank robbery.

Russell Dinovo, 52, was sentenced by U.S. District Court Judge Richard G. Stearns to 57 months in prison and five years of supervised release. In December 2017, Dinovo pleaded guilty to one count of armed bank robbery.

On Oct. 9, 2015, two individuals, wearing hooded sweatshirts with portions of their faces visible, entered a branch of the Hingham Institute for Savings in Boston. One of the robbers, later identified as Dinovo, vaulted the teller counter, forced open two cash drawers, grabbed money, and put it into a duffel bag. Dinovo then demanded that a bank employee open the vault; the employee did, and Dinovo then removed money from the vault. The other individual, later identified as Anthony Pantone, remained in front of the counter throughout the entire robbery holding what appeared to be a handgun.

After stealing $16,320 from the bank, the two individuals fled on foot, but were captured a short time later in a cab with the duffel bag containing $16,320 and an airsoft gun. 

Pantone pleaded guilty and was sentenced in August 2016 to 78 months in prison.

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 Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.

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

Jose Menjivar-Mancia, 39, pleaded guilty to one count of unlawful reentry of a deported alien before U.S. Senior District Court Judge Douglas P. Woodlock, who immediately sentenced Menjivar-Mancia to time served and one year of supervised release. Menjivar-Mancia will be subject to deportation proceedings.

On March 2, 2018, Menjivar-Mancia was encountered by law enforcement and determined to be illegally present in the United States; he has been in the custody of Immigration and Customs Enforcement since. Menjivar-Mancia was previously deported on May 31, 2007.

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

BOSTON – The U.S. Attorney’s Office announced today that pharmaceutical company Pfizer Inc. has agreed to pay $23.85 million to resolve allegations that it violated the False Claims Act by paying kickbacks to Medicare patients through a purportedly independent charitable foundation. 

When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.   

As part of today’s settlement, the government alleged that Pfizer used a foundation, which claims 501(c)(3) status for tax purposes, as a conduit to pay the co-pay obligations of Medicare patients taking three Pfizer drugs, Sutent and Inlyta, which both treat renal cell carcinoma, and Tikosyn, which treats arrhythmia in patients with atrial fibrillation or atrial flutter. The government alleged that, in order to generate revenue and instead of giving Sutent and Inlyta to Medicare patients who met the financial qualifications of Pfizer’s existing free drug program, Pfizer worked with a third-party specialty pharmacy to transition some portion of those patients to the foundation, which covered the patients’ Medicare copays and caused Medicare claims to result from the filling of the patients’ Sutent and Inlyta prescriptions. In connection with this initiative, according to the government’s allegations, Pfizer made donations to the foundation and thereafter received data from the foundation, via the specialty pharmacy, confirming that the foundation funded the Medicare copays of Sutent and Inlyta patients. With respect to Tikosyn, Pfizer raised the wholesale acquisition cost of a package of forty .125 mg capsules of the drug by 44 percent during the last three months of 2015.  Knowing the price increase would increase Medicare beneficiaries’ copay obligations for Tikosyn, which could result in more Medicare patients needing financial assistance to fill their Tikosyn prescriptions, Pfizer allegedly worked with the foundation to create and finance a fund for Medicare patients being treated for arrhythmia with atrial fibrillation or atrial flutter.  According to the allegations in the settlement agreement, Pfizer coordinated the timing of the opening of the fund for these patients with the implementation of a Tikosyn price increase, and Pfizer then began referring to the foundation any Medicare patients who needed financial assistance to meet their newly-increased copays for the drug. For the next nine months, Tikosyn patients accounted for virtually all of the beneficiaries of the fund.  

“Pfizer used a third party to saddle Medicare with extra costs,” said United States Attorney Andrew E. Lelling.  “According to the allegations in today’s settlement agreement, Pfizer knew that the third-party foundation was using Pfizer’s money to cover the co-pays of patients taking Pfizer drugs, thus generating more revenue for Pfizer and masking the effect of Pfizer’s price increases. The Anti-Kickback Statute exists to protect Medicare, and the taxpayers who fund it, from schemes like these. At the same time, we commend Pfizer for stepping forward to resolve these issues in a responsible manner.”

“Kickbacks undermine the independence of physician and patient decision-making, and raise healthcare costs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.  “As today’s settlement makes clear, the Department will hold accountable drug companies that pay illegal kickbacks—whether directly or indirectly—to undermine taxpayer funded healthcare programs, including Medicare.”

“Today’s settlement demonstrates the FBI’s commitment to making sure patients receive, and the government pays for, health care that is not compromised by kickbacks,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “What Pfizer is accused of doing in this case—masking charitable contributions to increase company profits-- violates the basic trust patients extend to the healthcare system and threatens the financial integrity of the Medicare program.”

 Pfizer also has entered into a corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The five-year CIA requires, among other things, that Pfizer implement measures designed to ensure that arrangements and interactions with third-party patient assistance programs are compliant with the law. In addition, the CIA requires reviews by an independent review organization, compliance-related certifications from company executives and Board members, and the implementation of a risk assessment and mitigation process.

“Our corporate integrity agreement promotes independence between Pfizer and any patient assistance programs to which it may donate,” said Gregory E. Demske, Chief Counsel to the Inspector General for the United States Department of Health and human Services. “Without true independence, as we have seen in this case, drug companies may use patient assistance programs as conduits for improper payments that harm Medicare.”  

U.S. Attorney Lelling, Acting Assistant Attorney General Readler, HHS-OIG Chief Counsel Demske, and FBI SAC Shaw made the announcement today.  This matter was investigated by HHS-OIG, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the United States Department of Veterans Affairs Office of Inspector General. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro, Abraham George, and Deana El-Mallawany of Lelling’s Office, and by Trial Attorneys Augustine Ripa and Sarah Arni of the Justice Department’s Civil Division.

BOSTON – The owner of George H. Richard & Son Roofing in Milton, Mass., pleaded guilty today in federal court in Boston to filing a false tax return which failed to disclose substantial business receipts.    

Harry S. Richard, 68, pleaded guilty to one count of filing a false individual tax return.  U.S. District Judge Nathaniel M. Gorton scheduled sentencing for Sept. 11, 2018.

Richard owned and operated Richard Roofing, a business established by his great-grandfather in 1865. From 2010 through 2013, Richard deposited the bulk of the payments he received for roofing services into his personal bank accounts and failed to disclose those receipts to his tax return preparer or on his tax returns. Many of the checks he received from his customers were made payable to Richard personally, at his direction. Over the course of four years, Richard failed to report more than $2.1 million in business receipts on his tax returns, and thereby avoided paying taxes totaling about $353,246. 

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 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. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Economic Crimes Unit is prosecuting the case. 

BOSTON – A mortgage loan officer was sentenced yesterday in federal court in Boston in connection with a sweeping conspiracy to defraud banks and mortgage companies by engaging in sham “short” sales of residential properties in Merrimack Valley.

Vanessa Ricci, 41, of Methuen, a mortgage loan officer, was sentenced to six months in prison, three years of supervised release and ordered to pay restitution of $963,730. In March 2018, Ricci pleaded guilty to one count of conspiracy to commit bank fraud. 

Co-defendants Jasmin Polanco, 37, a real estate closing attorney, previously pleaded guilty to one count of conspiracy to commit bank fraud and is scheduled to be sentenced on June 21, 2018; Greisy Jimenez, 50, pleaded guilty to two counts of bank fraud and one count of conspiracy to commit bank fraud and is scheduled to be sentenced on June 6, 2018; Hyacinth Bellerose, 51, a real estate closing attorney, was sentenced in March 2017 to time served and one year of supervised release to be served in home detention after pleading guilty to conspiracy to commit bank fraud.  

The charges arose out of a scheme to defraud various banks via bogus short sales of homes in Haverhill, Lawrence and Methuen in which the purported sellers remained in their homes, with their debt substantially reduced. A short sale is a sale of real estate for less than the value of any existing mortgage debt on the property. Short sales are an alternative to foreclosure that typically occur only with the consent of the mortgage lender. Generally, the lender absorbs a loss on the loan and releases the borrower from the unpaid balance. By their very nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated, and in which the sellers cede their control of the subject properties in exchange for the short-selling bank’s agreement to release them from their unpaid debt.

The conspiracy began in approximately August 2007 and continued through June 2010, a period that included the height of the financial crisis and its aftermath. Home values in Massachusetts and across the nation declined precipitously, and many homeowners found themselves suddenly “underwater” with homes worth less than the mortgage debt they owed. As part of the scheme, Jimenez, Polanco, Ricci, Bellerose and others submitted materially false and misleading documents to numerous banks in an effort to induce them to permit the short-sales, thereby releasing the purported sellers from their unpaid mortgage debts, while simultaneously inducing the purported buyers’ banks to provide financing for the deals. In fact, the purported sellers simply stayed in their homes, with their debt substantially reduced.

The conspirators falsely led banks to believe that the sales were arms-length transactions between unrelated parties; in fact, the buyers and sellers were frequently related, and the sellers retained control of (and frequently continued to live in) the properties after the sale. The conspirators also submitted phony earnings statements in support of loan applications that were submitted to banks in order to obtain new financing for the purported sales. In addition, the defendants submitted phony “HUD-1 Settlement Statements” to banks that did not accurately reflect the disbursement of funds in the transactions. (HUD-1 Settlement Statements are standard forms that are used to document the flow of funds in real estate transactions. They are required for all transactions involving federally related mortgage loans, including all mortgages insured by the Federal Housing Administration.)

United States Attorney Andrew E. Lelling; Christina Scaringi, Special Agent in Charge of the Department of Housing and Urban Development, Office of Inspector General, New York Field Office; and Christy Goldsmith Romero, Special Inspector General of the Troubled Asset Relief Program, made the announcement.  Assistant U.S. Attorney Stephen E. Frank, Chief of Lelling’s Economic Crimes Unit, and Assistant U.S. Attorneys Sara Miron Bloom and Victor A. Wild, also of the Economic Crimes Unit, prosecuted the cases.

Pharmaceutical company Pfizer, Inc. (Pfizer), based in New York, NY, has agreed to pay $23.85 million to resolve claims that it used a foundation as a conduit to pay the copays of Medicare patients taking three Pfizer drugs, in violation of the False Claims Act, the Justice Department announced today.  

When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or deductible (collectively copays).  Congress included copay requirements in the Medicare program, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs.  Under the Anti-Kickback Statute, a pharmaceutical company is prohibited from offering, directly or indirectly, any remuneration—which includes paying patients’ copay obligations—to induce Medicare patients to purchase the company’s drugs.    

As part of today’s settlement, the government alleged that Pfizer used a foundation as a conduit to pay the copay obligations of Medicare patients taking three Pfizer drugs:  Sutent and Inlyta, which both treat renal cell carcinoma, and Tikosyn, which treats arrhythmia in patients with atrial fibrillation or atrial flutter.  The government alleged that, in order to generate revenue, and instead of giving Sutent and Inlyta to Medicare patients who met the financial qualifications of Pfizer’s existing free drug program, Pfizer used a third-party specialty pharmacy to transition certain patients to the foundation, which covered the patients’ Medicare copays.  Pfizer allegedly made donations to the foundation to enable it to cover the copays of these patients and received confirmation from the foundation, via the specialty pharmacy, that the foundation funded the copays.  

With respect to Tikosyn, Pfizer raised the wholesale acquisition cost of a package of forty .125 mg capsules of the drug by over 40 percent in the last three months of 2015.  Pfizer allegedly knew that the price increase would also increase Medicare beneficiaries’ copay obligations for Tikosyn, and potentially prevent some patients from being able to afford the drug.  Pfizer allegedly worked with the foundation to create and finance a fund for Medicare patients suffering from the condition treated by Tikosyn, coordinated the opening of the fund with the implementation of its price increase for the drug, and referred patients to the fund.  For the next nine months, Tikosyn patients accounted for virtually all of the beneficiaries whose copayments were paid by the fund.

“Kickbacks undermine the independence of physician and patient decision-making, and raise healthcare costs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.  “As today’s settlement makes clear, the Department will hold accountable drug companies that pay illegal kickbacks—whether directly or indirectly—to undermine taxpayer funded healthcare programs, including Medicare.”

“Pfizer used a third party to saddle Medicare with extra costs,” said United States Attorney Andrew E. Lelling.  “According to the allegations in today’s settlement agreement, Pfizer knew that the third-party foundation was using Pfizer’s money to cover the co-pays of patients taking Pfizer drugs, thus generating more revenue for Pfizer and masking the effect of Pfizer’s price increases.  The Anti-Kickback Statute exists to protect Medicare, and the taxpayers who fund it, from schemes like these.  At the same time, we commend Pfizer for stepping forward to resolve these issues in a responsible manner.”  

“Today’s settlement demonstrates the FBI’s commitment to making sure patients receive, and the government pays for, health care that is not compromised by kickbacks,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division.  “What Pfizer is accused of doing in this case—masking charitable contributions to increase company profits—violates the basic trust patients extend to the healthcare system and threatens the financial integrity of the Medicare program.”

Pfizer has also entered into a corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG).  The five-year CIA requires, among other things, that Pfizer implement measures designed to ensure that arrangements and interactions with third-party patient assistance programs are compliant with the law.  In addition, the CIA requires reviews by an independent review organization, compliance-related certifications from company executives and Board members, and the implementation of a risk assessment and mitigation process.

“Our corporate integrity agreement promotes independence between Pfizer and any patient assistance programs to which it may donate,” said Gregory E. Demske, Chief Counsel to the Inspector General for the United States Department of Health and human Services.  “Without true independence, as we have seen in this case, drug companies may use patient assistance programs as conduits for improper payments that harm Medicare.”

The government’s resolution of this matter illustrates the government’s emphasis on combating healthcare fraud.  One of the most powerful tools in this effort is the False Claims Act.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The investigation was conducted by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Massachusetts, in conjunction with the Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation: the Department of Veterans Affairs, Office of Inspector General; and the United States Postal Inspection Service.  

The claims resolved by the settlement are allegations only; there has been no determination of liability.  

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

Juan Confesor Lara Carmona, 29, pleaded guilty to one count of illegal reentry of a deported alien. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Sept. 6, 2018.

On Oct. 20, 2017, law enforcement in Lawrence encountered Lara Carmona and determined him to be illegally present in the United States. Lara Carmona was previously deported on Jan. 19, 2016.

Lara Carmona faces a sentence of no greater than two years in prison and one year of supervised release, and will be subject to deportation proceedings upon completion of his sentence.

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

BOSTON – A Boylston man was sentenced today in federal court in Worcester for possessing and distributing child pornography.

Randy Alan Chaplis, 33, was sentenced by U.S. District Court Judge Timothy S. Hillman to seven years in prison and five years of supervised release. In December 2017, Chaplis pleaded guilty to one count of distributing child pornography and one count of possessing child pornography involving a prepubescent minor and a minor who had not attained 12 years of age. Chaplis was arrested and charged by criminal complaint on March 16, 2017, and has been detained since his arrest. 

On Feb. 9, 2017, Chaplis sent two emails to an undercover law enforcement officer that included dozens of images of child pornography, including prepubescent girls engaged in sex acts with adult men. In other email communications with the undercover officer, Chaplis stated that he likes three-to-10 year olds, and that he has “fun” with his girlfriend’s five-year-old daughter when her mother is not home. Chaplis emailed graphic descriptions of the sexual acts he purportedly performed on his girlfriend’s child starting when the child was two-years-old. He asked whether the undercover officer intended to have sexual intercourse with the undercover officer’s infant daughter once she turned three or four. 

A search of Chaplis’ residence on March 15, 2017, resulted in the seizure of an external hard drive and a desktop computer that included multiple images of child pornography.

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Peter Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Bill Abely of Lelling’s Worcester Branch Office prosecuted the case.

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

BOSTON – A Worcester man was sentenced today in federal court in Boston for offering to pay a witness who was testifying in a federal lawsuit.

Jerome Smith, 40, was sentenced by U.S. District Court Chief Judge Patti B. Saris to six months in prison to be served consecutively to an 11-13 year state sentence he is currently serving. In February 2018, Smith pleaded guilty to one count of witness bribery.

Smith was the plaintiff in a federal lawsuit seeking monetary damages against the City of Worcester and others in connection with an alleged incident involving the Worcester Police Department. Smith offered to pay two witnesses in connection with their testimony in the federal court proceedings. The two witnesses each testified falsely during depositions conducted in connection with the federal lawsuit. For example, one witness stated that she saw a police officer hitting Smith with a fire extinguisher and kicking Smith, though the witness later admitted that she did not see any police officer hit Smith with a fire extinguisher or kick Smith. Smith’s lawyer attempted to introduce the deposition testimony of this witness at trial, despite the witness having told the lawyer about Smith’s offer to pay her.

United States Attorney Andrew 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 Bill Abely of Lelling’s Worcester Branch Office prosecuted the case.

BOSTON – Two Heath Street gang members pleaded guilty yesterday in federal court in Boston to distributing drugs in and around the Mildred C. Hailey Apartments in Jamaica Plain.

Kevin Smith, a/k/a “Works,” 27, and Javonte Robinson, a/k/a “Biggie,” and “Big Dog,” 21, pleaded guilty to conspiracy to distribute cocaine base and to distributing cocaine base within 1000 feet of a public housing facility. U.S. District Court Judge William G. Young scheduled sentencing for July 27, 2018.

Following a two-year investigation, Smith, Robinson and seven co-defendants were charged in January 2018 in connection with illegal drug distribution and firearm possession within and near the Mildred C. Hailey Apartments, formerly known as the Bromley Heath Housing Development.

On March 25, 2017, Smith arranged a drug sale for Robinson, who sold crack cocaine to a cooperating witness near the Mildred C. Hailey Apartments. In sum, Smith and Robinson also accepted responsibility for five additional sales that were not charged in the indictment. All of the sales took place either inside or within a 1000 feet of the Mildred C. Hailey Apartments.

According to court documents, Smith served 18 months in jail after he was convicted of carrying a firearm and resisting arrest. Although Smith was on Boston Housing Authority’s No Trespass List at one time, records show that he was arrested in the hallways and courtyards of the housing development at least seven times.

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

The charges provide for a mandatory minimum sentence of one year and no greater than 40 years in prison, a minimum of six years and up to a lifetime 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 Evans 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 – A New Hampshire man was sentenced yesterday in federal court in Boston for his role in a widespread heroin and fentanyl trafficking conspiracy operating in Lawrence.

Melvin Weatherspoon, 58, of Rochester, N.H., was sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to time served and three years of supervised release. In October 2017, Weatherspoon pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, cocaine and fentanyl.

On May 30, 2017, after a year-long investigation aimed at attacking the fentanyl and heroin crisis in Lawrence and surrounding areas, federal, state and local law enforcement officers executed a federal drug sweep to dismantle a Lawrence-based drug trafficking organization allegedly run by Juan Anibal Patrone. Weatherspoon was arrested and charged along with Patrone and dozens of co-conspirators.  

Weatherspoon obtained heroin and fentanyl from Patrone and redistributed it to his own customers in New Hampshire.

Patrone has pleaded not guilty and is awaiting trial.

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Peter Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Essex County District Attorney Jonathan W. Blodgett; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Lawrence Police Chief Roy P. Vasque made the announcement. The DEA Cross Border Initiative, comprised of the DEA and the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments, conducted the investigation jointly with the Massachusetts State Police. Assistant U.S. Attorney Susan Winkler of Lelling’s Narcotics and Money Laundering Unit is prosecuting the cases.

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

BOSTON – A Methuen man and a Dominican national were indicted today in federal court in Boston in connection with a fentanyl trafficking conspiracy. 

Carlos Torres, 26, of Methuen, was charged with one count of conspiracy to distribute 400 grams or more of fentanyl and one count of possession of a firearm in furtherance of a drug trafficking crime. Carlos Rodriguez, 19, a Dominican national, residing in Lawrence, was charged with one count of conspiracy to distribute 40 grams or more of fentanyl. Both men were arrested on April 19, 2018, and charged in a criminal complaint.

According to court documents, on April 19, 2018, investigators received information that Rodriguez would be delivering fentanyl in the Lawrence area. After stopping Rodriguez, investigators seized approximately 150 grams of fentanyl from him. Pursuant to a search warrant at Torres’ residence, investigators seized approximately 700 grams of fentanyl, a firearm and ammunition.

The charge of conspiracy to distribute 40 grams or more of fentanyl provides for 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. The charge of conspiracy to distribute 400 grams or more of fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release, and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Andover Police Chief Patrick Keefe; Lawrence Police Chief Roy Vasque; and Methuen Police Chief Joe Solomon made the announcement. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.

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

BOSTON – A former member of the Orchard Park Trailblazers was sentenced yesterday in federal court in Boston for selling crack cocaine in and around Roxbury’s Orchard Gardens Housing Development.

Keon Smith, 38, of Boston, was sentenced by U.S. District Court Judge Denise J. Casper to four years in prison and six years of supervised release, during which time Smith will be precluded from entering the Orchard Gardens Housing Development and from being in contact or associating with approximately 20 individuals from the same area. In December 2017, Smith pleaded guilty to one count of distribution of cocaine base within 1,000 feet of a school.

On Sept. 13, 2016, Smith sold crack cocaine to a cooperating witness near a school in Roxbury while on state court probation for another drug offense. According to court documents, Smith was convicted in 2001 of voluntary manslaughter and firearms possession and, since being released from state prison has been convicted of possessing an illegal substance with intent to distribute.

Smith is one of 12 defendants arrested and charged in June 2017 following a nearly two-year investigation into the high concentration of crime in and around the Orchard Gardens Development, the largest publically funded housing development in Roxbury, which is also adjacent to area schools and Dudley Square. According to court documents, the crime stems, in part, from the illegal activities of the members and associates of the Orchard Park Trailblazers, who allegedly have active feuds with rival gangs throughout the city. Smith is the 11th defendant to be sentenced in this case.

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; and Boston Police Commissioner William Evans made the announcement today.

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

Edward Withrow III, 53, of Malibu, Calif., pleaded guilty to one count of making false statements. In October 2015, Withrow and Marco Babini, 57, who is believed to reside in Vancouver, Canada, were charged in an indictment.  Babini remains at large as a fugitive and is charged with one count of conspiracy, one count of securities fraud and two counts of wire fraud.

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

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

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

BOSTON – A California-licensed securities attorney was convicted yesterday by a federal jury in Boston in connection with his role in schemes to manipulate the stock of two publicly traded microcap companies, Greenway Technology and Crown Marketing. 

Jehu Hand, 61, was convicted following a 13-day trial of conspiracy, securities fraud and wire fraud.  Following the verdict, Hand was remanded to the custody of the U.S. Marshals. U.S. District Court Judge William G. Young has not yet scheduled the sentencing hearing.

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

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

In total, between the Greenway and Crown schemes, Hand and his co-conspirators caused losses of more than $1.5 million.     

The charge of conspiracy provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000, or twice the gross loss to the victim.  The charges of securities fraud and wire fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss.  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.  The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission and Financial Industry Regulatory Authority during the investigation of this matter. Assistant U.S. Attorney James Herbert and SEC Attorney Andrew Palid, who was appointed as a Special Assistant U.S. Attorney, are prosecuting the case.

BOSTON – The U.S. Attorney’s Office reached a $50,000 civil settlement today with Nantucket Cottage Hospital (NCH) in connection with the improper recordkeeping of Schedule II controlled substances by its pharmacy and the failure to maintain effective controls against diversion.

“Under the law, hospitals like NCH have a special responsibility to ensure that controlled substances are used for patient care and are not diverted for non-medical uses,” said United States Attorney Andrew E. Lelling. “Diversion of these drugs feeds addiction and fuels the opioid epidemic that has had devastating effects throughout Massachusetts, including in island communities like Nantucket.”

“DEA registrants are responsible to handle controlled substances and ensure that complete and accurate records are being properly kept and accounted for in compliance with the Controlled Substance Act,” said DEA Acting Special Agent in Charge Albert Angelucci.  “Failure to do so increases the potential for diversion and jeopardizes public health and public safety. DEA pledges to work with our law enforcement and regulatory partners to ensure these rules and regulations are followed.”

NCH is a member of Partners HealthCare and an affiliate of Massachusetts General Hospital. According to the settlement, the government’s investigation revealed that NCH failed to account for several controlled substances, improperly placed prescription drugs in an unlocked pharmacy refrigerator, and stored keys for the expired-medications cabinet in an unlocked pharmacy drawer. NCH also failed to maintain invoices and other records required by law, and failed to report the loss of controlled substances in a timely manner.     

NCH and Partners cooperated with the DEA’s investigation and implemented new recordkeeping and security measures. NCH and Partners also agreed to permit the DEA to perform inspections of the pharmacy without a warrant, and to register NCH as a drug collection site that will handle the disposal of drugs for NCH patients and Nantucket residents.

United States Attorney Lelling and DEA Acting SAC Angelucci made the announcement today. Assistant U.S. Attorney Jason C. Weida of Lelling’s Civil Division handled the matter.

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

Erasmo Aguirre Gomez, 28, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to time-served and one year of supervised release. Gomez will be subject to deportation proceedings. On May 15, 2018, Aguirre Gomez pleaded guilty to one count of illegal reentry of a deported alien.

On Jan. 11, 2017, law enforcement in Boston encountered Aguirre Gomez and determined him to be illegally present in the United States. Aguirre Gomez had previously been deported to Mexico on Dec. 20, 2010.

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

BOSTON – An MS-13 member was sentenced yesterday in federal court in Boston for racketeering conspiracy involving the murder of a 15-year-old boy in East Boston.

Joel Martinez, a/k/a “Animal,” 23, a Salvadoran national formerly residing in East Boston, was sentenced to 40 years in prison and two years of supervised release. Martinez will be subject to deportation upon completion of his sentence. In December 2017, Martinez pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.

Martinez admitted that on Sept. 20, 2015, he murdered a 15-year-old boy on Trenton Street in East Boston. During recorded conversations between Martinez and a cooperating witness, Martinez acknowledged being a member of MS-13 and admitted that he stabbed the victim to death. Specifically, Martinez said, “I stabbed the culero three times,” and stated, “He stared at me and he asked me if I was going to, if I was going to stab him. I told him, ‘Yes, the Mara rules you.’” After the murder, Martinez was “jumped in” and made a “homeboy,” or full member of MS-13’s Eastside Loco Salvatrucha (ESLS) clique during a ceremony that was surreptitiously recorded by agents. When a prospective member is “jumped in,” members of the MS-13 clique beat the new member with their hands and feet while one of the leaders of the clique counts aloud slowly to thirteen.

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter 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 Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; 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.

BOSTON – An MS-13 member pleaded guilty today in federal court in Boston to racketeering conspiracy involving the murder of a 16-year-old boy in East Boston.  

Jairo Perez, a/k/a “Seco,” 27, a Salvadoran national, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO or racketeering conspiracy. Perez admitted that his racketeering activity involved the Jan. 10, 2016, murder of a 16-year-old boy in East Boston. 

Under the terms of the proposed plea agreement, Perez will be sentenced to 35 years in prison.  At today’s hearing, the Court accepted the defendant’s guilty plea but deferred acceptance of the plea agreement until the sentencing hearing.  Perez will be subject to deportation proceedings upon completion of his sentence.  U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Sept. 11, 2018.

The investigation revealed that Perez was a member of MS-13’s Trece Loco Salvatrucha (TLS) clique. Evidence showed that on Jan. 10, 2016, Perez and other MS-13 members murdered a 16-year-old boy whom they believed to be a member of the rival 18th Street gang. The victim was stabbed and shot multiple times.  A few days after the murder, Perez was caught on tape admitting to stabbing the victim multiple times, and he was arrested soon thereafter. Perez was also recorded burying the knives used to murder the victim in a park on Deer Island in Winthrop.

After a multi-year investigation, Perez was one of dozens of alleged leaders, members, and associates of MS-13 named in a superseding indictment unsealed in January 2016 that targeted MS-13’s criminal activities in Massachusetts. Perez is the 48th defendant to be convicted as part of that ongoing prosecution by the U.S. Attorney’s Office in Massachusetts.  To date, all eight defendants who have gone to trial have been convicted, and 40 other defendants have pleaded guilty.

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter 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 Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; 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.

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

BOSTON –The chief executive officer of PixarBio Corp., a Boston-based biotech company, and an associate, were indicted today on securities fraud charges in connection with a scheme to defraud investors and engage in trade manipulation of the company’s shares. 

Frank Reynolds, 55, of Newton, and M. Jay Herod, 51, of Cambridge, were indicted on two counts each of securities fraud and manipulative trading. They were previously charged by criminal complaint and arrested on April 24, 2018.

As alleged in the charging document, beginning in approximately August 2013, Reynolds and Herod engaged in a scheme to defraud PixarBio investors by making false and misleading statements about the company - its prospects, its financing, and the background and track record of Reynolds - and by engaging in manipulative trading of its shares.  

For example, the indictment alleges that in a December 2015 email and memorandum to potential investors, Reynolds promised investors “a HUGE return on investment (ROI) for any investors in PixarBio’s NeuroRelease.” He told investors: “The value of our portfolio on Wall Street is soaring with excitement around our sales partnership. At only $1,000,000,000 right now, as we prepare to replace morphine in the clinic in late 2017 or early 2018, and we expect our valuation to long-term trend UP.” In reality, the government alleges, PixarBio did not have a market value of $1 billion, or a product to end “thousands of years of morphine and opiate addiction.” Rather, the indictment alleges, the prospective drug, carbamazepine, is not a treatment for opiate addiction at all, but an existing drug for which PixarBio purported to have developed an additional means of delivery, via injection, in a time-release form. 

The indictment further alleges that, beginning in or about December 2016, Herod engaged in manipulative trades in PixarBio stock that simulated market interest in the stock and artificially pushed up the trading price. These trades included overlapping orders to buy and sell PixarBio stock at the same price per share (a manipulative technique known as “matched trading”), small purchases to boost the trading price submitted shortly before trading closed at 4:00 p.m. (a technique known as “marking the close”), and orders to buy at a price much higher than the price of the preceding market transaction. Herod allegedly shared the proceeds of his trading with Reynolds and PixarBio itself.

The charges 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. 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 Carl W. Hoecker, Inspector General of the U.S. Securities and Exchange Commission Office of Inspector General, made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Economic Crimes Unit is prosecuting the case.

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

Alexander Ciccolo, aka, Ali Al Amriki, 25, of Adams, Massachusetts, pleaded guilty today in connection with a plot to engage in terrorist activity inspired by and in the name of the Islamic State of Iraq and al-Sham (ISIS or ISIL), a designated foreign terrorist organization.  Ciccolo pleaded guilty to one count of attempting to provide material support to ISIS, one count of attempting to use weapons of mass destruction, one count of being a convicted person in possession of firearms, and one count of assaulting a nurse during a jail intake process by use of a deadly weapon causing bodily injury.

Assistant Attorney General for National Security John C. Demers, U.S. Attorney Andrew E. Lelling for the District of Massachusetts, and Special Agent in Charge Harold H. Shaw of the FBI’s Boston Field Division announced the plea.  U.S. District Court Judge Mark G. Mastroianni accepted the plea and scheduled sentencing for Sept. 5.

“Homegrown violent extremists pose a serious danger to innocent Americans,” said Assistant Attorney General Demers.  “Not only did Ciccolo admit to supporting ISIS, but he also collected weapons and explosives in order to further its goal: the murder of Americans.  Thanks to the hard work and collaboration of all involved, his plans were thwarted.  Today’s successful outcome is proof that we will not waver in our commitment to hold accountable those who break our laws and put American lives at risk.”

“Even though he was born and raised in Massachusetts, Alexander Ciccolo swore allegiance to ISIS and planned to kill innocent civilians in the United States on ISIS’s behalf,” said U.S. Attorney Lelling.  “Fortunately, someone who knew Ciccolo alerted law enforcement, and the Western Massachusetts Joint Terrorism Task Force was able to stop Ciccolo before he tried to kill anyone.  There are a few lessons here:  the threat of “homegrown” radicalization and terror continues, and we are safest when we work together to spot and contain these threats.  I applaud the outstanding work of the Joint Terrorism Task Force and other law enforcement agencies that investigated and ultimately stopped Ciccolo, and the prosecutors who brought this case to conviction.”

“Mr. Ciccolo is finally accepting responsibility for concocting an elaborate and frightening plot to engage in terrorism on behalf of ISIS,” said Special Agent in Charge Shaw.  “Any material support of a terrorist organization threatens our national security, and had Mr. Ciccolo's efforts to advance his agenda not been thwarted by the FBI's Joint Terrorism Task Force, countless lives could have been lost in a lethal terrorist attack.  This case is a testament to the tireless efforts of the FBI's Joint Terrorism Task Force which remains committed to detecting, thwarting, and bringing to justice individuals like Mr. Ciccolo who seek to provide material support to and fight on behalf of designated foreign terrorist organizations.“

On July 4, 2015, Ciccolo received four firearms which he had ordered from a person who was cooperating with law enforcement, and who had been communicating with Ciccolo about his plans to engage in a terrorist act.  Ciccolo was arrested immediately after receiving the firearms, which included a Colt AR-15 .223 caliber rifle, a SigArms Model SG550-1 556 rifle, a Glock 17-9 mm pistol, and a Glock 20-10 mm pistol.  Ciccolo had previously been convicted of a crime punishable by more than a year in jail and therefore was prohibited from possessing firearms.

Ciccolo, a supporter of ISIS, had spoken with a cooperating witness in recorded conversations about his plans to commit acts of terrorism inspired by ISIS, including setting off improvised explosive devices, such as pressure cookers filled with black powder, nails, ball bearings and glass, in places where large numbers of people congregate, like college cafeterias.  Prior to his arrest, agents had observed Ciccolo purchase a pressure cooker similar to that used in the Boston Marathon bombings.

During a search of Ciccolo’s apartment after he was arrested, agents found several partially constructed “Molotov cocktails.”  These incendiary devices contained what appeared to be shredded Styrofoam soaking in motor oil.  Ciccolo had previously stated that this mixture would cause the fire from the exploded devices to stick to people’s skin and make it harder to put the fire out.

Shortly after his arrest, while he was being processed at the Franklin County Correctional Center in Massachusetts, Ciccolo stabbed a nurse with a pen more than 10 times, leaving a bloody gash on the top of the nurse’s head.

Ciccolo has been detained since his arrest in July 2015.

The charge of attempted provision of material support to a foreign terrorist organization carries a maximum sentenced of 20 years in prison, a lifetime of supervised release, and a fine of $250,000.  The charge of attempted use of a weapon of mass destruction carries a maximum sentence of life in prison, a lifetime of supervised release, and a fine of $250,000.  The charge of being a prohibited person in possession of firearms carries a maximum sentence of 10 years in prison, three years of supervised release, and a fine of $250,000.  The charge of assault with a dangerous weapon causing bodily injury carries a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the assigned judge.

Ciccolo and the United States have agreed to a sentence of 20 years in prison to be followed by a lifetime of supervised release.

This investigation was conducted by the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Springfield, Ludlow, Holyoke, West Springfield, Easthampton, and Pittsfield Police Departments in Massachusetts; the Massachusetts State Police, and Homeland Security Investigations, with critical assistance from the Adams Police Department and the Massachusetts State Regional Hazardous Materials Response Team. 

Assistant U.S. Attorneys Deepika Bains Shukla and Kevin O’Regan of the District of Massachusetts, and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section are in charge of the prosecution.

BOSTON – An Adams man pleaded guilty today in federal court in Springfield in connection with a plot to engage in terrorist activity inspired by, and in the name of, ISIS. 

Alexander Ciccolo, a/k/a Ali Al Amriki, 25, pleaded guilty to one count of attempting to provide material support to a foreign terrorist organization, one count of attempting to use weapons of mass destruction, one count of being a convicted person in possession of firearms, and one count of assaulting a nurse during a jail intake process by use of a deadly weapon causing bodily injury. U.S. District Court Judge Mark G. Mastroianni accepted the plea and scheduled sentencing for Sept. 5, 2018. Ciccolo has been detained since his arrest in July 2015.

“Even though he was born and raised in Massachusetts, Alexander Ciccolo swore allegiance to ISIS and planned to kill innocent civilians in the United States on ISIS’s behalf,” said United States Attorney Andrew E. Lelling. “Fortunately, someone who knew Ciccolo alerted law enforcement, and we were able to stop Ciccolo before he tried to kill anyone. There are a few lessons here: the threat of “homegrown” radicalization and terror continues, and we are safest when we work together to spot and contain these threats. I applaud the outstanding work of the Joint Terrorism Task Force and other law enforcement agencies that investigated and ultimately stopped Ciccolo, and the prosecutors who brought this case to conviction.”

“Homegrown violent extremists pose a serious danger to innocent Americans,” said Assistant Attorney General for National Security John C. Demers. “Not only did Ciccolo admit to supporting ISIS, but he also collected weapons and explosives in order to further its goal: the murder of Americans. Thanks to the hard work and collaboration of all involved, his plans were thwarted. Today’s successful outcome is proof that we will not waver in our commitment to hold accountable those who break our laws and put American lives at risk.”

“Mr. Ciccolo is finally accepting responsibility for concocting an elaborate and frightening plot to engage in terrorism on behalf of ISIS,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office.” Any material support of a terrorist organization threatens our national security, and had Mr. Ciccolo's efforts to advance his agenda not been thwarted by the FBI's Joint Terrorism Task Force, countless lives could have been lost in a lethal terrorist attack. This case is a testament to the tireless efforts of the FBI's Joint Terrorism Task Force which remains committed to detecting, thwarting, and bringing to justice individuals like Mr. Ciccolo who seek to provide material support to and fight on behalf of designated foreign terrorist organizations.”

On July 4, 2015, Ciccolo received four firearms which he had ordered from a person who was cooperating with law enforcement, and who had been communicating with Ciccolo about his plans to engage in a terrorist act. Ciccolo was arrested immediately after receiving the firearms, which included a Colt AR-15 .223 caliber rifle, a SigArms Model SG550-1 556 rifle, a Glock 17-9 mm pistol, and a Glock 20-10 mm pistol. Ciccolo had previously been convicted of a crime punishable by more than a year in jail and therefore was prohibited from possessing firearms.

Ciccolo, a supporter of the Islamic State of Iraq and the Levant (ISIL or ISIS), a designated foreign terrorist organization, had spoken with a cooperating witness in recorded conversations about his plans to commit acts of terrorism inspired by ISIS, including setting off improvised explosive devices, such as pressure cookers filled with black powder, nails, ball bearings and glass, in places where large numbers of people congregate, like college cafeterias. Prior to his arrest, agents had observed Ciccolo purchase a pressure cooker similar to that used in the Boston Marathon bombings.

During a search of Ciccolo’s apartment after he was arrested, several partially constructed “Molotov cocktails” were recovered. These incendiary devices contained what appeared to be shredded Styrofoam soaking in motor oil. Ciccolo had previously stated that this mixture would cause the fire from the exploded devices to stick to people’s skin and make it harder to put the fire out.

Shortly after his arrest, while he was being processed at the Franklin County Correctional Center, Ciccolo stabbed a nurse with a pen more than 10 times, leaving a bloody gash on the top of the nurse’s head.

The charge of attempted provision of material support to a foreign terrorist organization provides for a sentence of no greater than 20 years in prison, up to a lifetime of supervised release and a fine of $250,000. The charge of attempted use of a weapon of mass destruction provides for a sentence of up to life in prison, up to a lifetime of supervised release, and a fine of $250,000. The charge of being a prohibited person in possession of firearms provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000.  The charge of assault with a dangerous weapon causing bodily injury provides 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.

Ciccolo and the United States have agreed to a sentence of 20 year in prison followed by a lifetime of supervised release. 

U.S. Attorney Lelling; Assistant Attorney General Demers; and FBI SAC Shaw made the announcement today. The investigation was conducted by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Springfield, Ludlow, Holyoke, West Springfield, Easthampton, and Pittsfield Police Departments; the Massachusetts State Police, and Homeland Security Investigations, with critical assistance from the Adams Police Department and the Massachusetts State Regional Hazardous Materials Response Team. 

Assistant U.S. Attorneys Deepika Bains Shukla and Kevin O’Regan of Lelling’s Springfield Branch Office and Trial Attorney Andrew Sigler of the Justice Department’s National Security Division’s Counterterrorism Section are prosecuting the case.

BOSTON – The ex-wife of a man who was a fugitive for 20 years until his arrest in April 2017, was sentenced today to probation for lying about the whereabouts of her former spouse.   

Cecily Sturge, 70, of Delray Beach, Fla., was sentenced by U.S. District Court Chief Judge Patti B. Saris to one year of probation during which time she must complete four hours per week of community service and pay a fine of $1,000. In January 2018, Sturge pleaded guilty to making a materially false statement to a federal agent about the whereabouts of her ex-husband, Scott J. Wolas, who was a fugitive for 20 years in connection with a New York investment scheme until his arrest in April 2017. Wolas, who is charged with operating a fraudulent $1.7 million real estate investment scheme in Quincy, remains in custody while his case is pending.

According to court documents, a federal investigation into Wolas began in early September 2016 when Wolas fled Massachusetts after defrauding at least 19 investors of about $1.7 million in connection with his purported efforts to develop two Quincy properties, including the site of the former Beachcomber Bar. Sturge was interviewed by law enforcement on Nov. 17, 2016, at which time she stated that she had not been in contact with her ex-husband for approximately 15 years. Sturge continued to say that this was so, despite evidence of contact between her cell phone and one known to belong to Wolas that demonstrated more recent communication between the two.

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

Sturge was divorced from Wolas in 2001 by default judgment in Palm Beach County, Fla. In February 2017, Sturge filed a petition to modify the judgment in order to obtain the contents of Wolas’ retirement account, which had a balance of approximately $647,000, from the New York law firm where he worked prior to being indicted in 1997 by New York authorities. In pleadings filed in February and March 2017 in that matter, Sturge swore that Wolas’ whereabouts were unknown to her, despite telephone records showing frequent contact between the two. Bank surveillance photos also showed the two of them together at a Florida bank where some of the pleadings were notarized. In addition, copies or drafts of documents filed in the Florida proceeding were found in the room and on a USB drive taken from the room where Wolas was arrested. The United States has obtained a court order freezing the retirement account until the resolution of the criminal proceedings.

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; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Criminal Division is prosecuting the case.

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

BOSTON – An Israeli national was sentenced yesterday in federal court in Boston for conspiring to transfer $2.5 million worth of cocaine from Colombia to Israel via Boston and to money laundering charges. 

Jalal Altarabeen, a/k/a Glal El Tarbin, a/k/a Jalal Salamah, a/k/a Abu Rasheed, 34, was sentenced by U.S. District Court Judge Indira Talwani to four years in prison and three years of supervised release. The government previously administratively forfeited from Altarabeen nearly $1 million. In February 2018, Altarabeen pleaded guilty to one count of conspiring to possess with intent to distribute and to distribute more than five kilograms of cocaine and six counts of international money laundering. In February 2017, Altarabeen was extradited from Poland after being indicted with a co-conspirator. Altarabeen and the co-conspirator were previously charged in a federal criminal complaint in March 2016.

From October 2015 to April 20, 2016, Altarabeen and his co-conspirator conspired in Boston, Colombia, Poland, and elsewhere to distribute 50 kilograms of cocaine and to launder money internationally. They also negotiated to buy 50 kilograms of cocaine from an undercover officer posing as a drug trafficker. The undercover officer’s relationship with the co-conspirator began in 2008 and included a meeting in Nicosia, Cyprus.

Altarabeen and the co-conspirator agreed to pay the undercover officer $50,000 per kilogram to have the cocaine delivered in Israel. The undercover officer told the conspirators that the cocaine would be transported from Colombia to Boston and from Boston to Beersheba, Israel. Altarabeen agreed to make an advance payment of nearly $1 million to cover transportation costs, and he sent six wire transfers from Turkey totaling $999,972 to an undercover bank account in Boston. The undercover officer and Altarabeen agreed that Altarabeen would pay the $1.5 million balance after the receipt and sale of the 50 kilograms of cocaine.

Over several months, the undercover officer spoke with Altarabeen and the co-conspirator by telephone, WhatsApp, video Skype and in person.  They contacted the undercover officer using telephone numbers from Cyprus, Jordan, Israel, Palestine and Colombia, and discussed the drug transaction while in Bogota, Colombia, on Oct. 14, 2015, and Feb. 9, 2016. 

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; John Gibbons, United States Marshal for the District of Massachusetts; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Linda M. Ricci of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.

BOSTON – An MS-13 member pleaded guilty yesterday in federal court in Boston to racketeering conspiracy.

Modesto Ramirez, a/k/a “Snoopy,” 29, a Honduran national, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO or racketeering conspiracy. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Aug. 21, 2018.

After a multi-year investigation, Ramirez was one of dozens of alleged leaders, members, and associates of MS-13 named in a superseding indictment unsealed in January 2016 that targeted MS-13’s criminal activities in Massachusetts. Ramirez is the 47th defendant to be convicted as part of that ongoing prosecution.

Ramirez was a member of the Trece Locos Salvatrucha or TLS clique of MS-13. The evidence against Ramirez included a secretly-taped recording made by a cooperating witness in which Ramirez discussed his intention to kill a gang rival. 

At today’s hearing, the Court accepted Ramirez’s guilty plea but deferred acceptance of the plea agreement until the sentencing hearing. Under the terms of the proposed plea agreement, Ramirez will be sentenced to 97 months in prison.  Ramirez will also be subject to deportation upon the completion of his sentence. 

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter 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 Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; 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.

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

BOSTON - A Holyoke man was sentenced yesterday in federal court in Springfield for distributing heroin.

Angel Baez, 28, was sentenced by U.S. District Court Judge Mark G. Mastroianni to four years in prison and three years of supervised release. In November 2017, Baez pleaded guilty to one count of distribution and possession with intent to distribute heroin.

Baez was arrested and charged following a five-month federal law enforcement investigation into drug trafficking in Springfield and Holyoke. Baez possessed and distributed heroin in Holyoke on April 20 and April 26, 2016. 

According to court documents, Baez has three prior state court felony drug convictions, all including heroin: a 2014 conviction for possession with intent to distribute heroin and cocaine; a June 2011 conviction for distributing heroin; and a July 2011 conviction for possession with intent to distribute heroin and cocaine.

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; 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 prosecuted the case.

BOSTON – Dominican woman pleaded guilty today in federal court in Boston for her role in a widespread heroin and fentanyl trafficking conspiracy operating in Lawrence.

Diosmary Burgos, 39, a Dominican national, pleaded guilty to three counts of conspiracy to possess with intent to distribute heroin, cocaine, and 40 grams or greater of fentanyl. U.S. District Court Judge Denise J. Casper scheduled sentencing for August 6, 2018.

On May 30, 2017, a large scale law enforcement operation was conducted in an effort to dismantle two Lawrence-based drug trafficking organizations, one allegedly run by Juan Anibal Patrone, and another allegedly led by Ramon Gonzalez-Nival, who was also a source of supply for Patrone. Burgos was arrested and charged along with Patrone, Gonzalez-Nival, and approximately 30 co-conspirators. 

Ms. Burgos bought her drugs, and specifically fentanyl, from Gonzalez-Nival then distributed it. During the investigation, she was intercepted on multiple occasions ordering several fingers (10 gram units) of drugs from Gonzalez-Nival. When a search warrant was executed at her home on May 30, 2017, approximately 90 grams of fentanyl was located in a closet, which she admitted belonged to her.

Patrone and Gonzalez-Nival have pleaded not guilty and are awaiting trial.

The charge of conspiracy to distribute 40 grams or greater of heroin, cocaine, and fentanyl provides for a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Peter Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Essex County District Attorney Jonathan W. Blodgett; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Lawrence Police Chief Roy P. Vasque made the announcement today. Assistant U.S. Attorney Susan Winkler 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 Brockton man was sentenced today in federal court in Boston on drug trafficking charges.

Luis Rivera, a/k/a “Fat Louie,” 35, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 10 years in prison, five years of supervised release and ordered to pay a $5,000 fine.  In November 2017, Rivera pleaded guilty to one count of conspiracy to distribute cocaine and cocaine base, also known as crack cocaine.  

During an investigation into a network of street gangs trafficking illegal firearms and drugs, investigators identified Rivera as a Brockton-based source of supply for cocaine and cocaine base for numerous street-level drug dealers in Brockton and other communities.  

From January to April 2016, a cooperating witness purchased significant amounts of both cocaine and crack cocaine from Rivera.  Rivera operated his robust drug trafficking business from various residential and business locations in Brockton, including a residence at 103 Green Street, and conspired with numerous other individuals, including members/associates of the Boylston Street Gang, to distribute drugs.

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

United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Peter Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal for the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Evans; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley made the announcement today.  The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments.

BOSTON – An MS-13 member pleaded guilty today in federal court in Boston to racketeering conspiracy.

Jose Vasquez, a/k/a “Little Crazy,” 24, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO or racketeering conspiracy. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Aug. 30, 2018.

Vasquez was a member and local leader of the Trece Locos Salvatrucha or TLS clique of MS-13. Vasquez personally participated in racketeering activity on behalf of MS-13. Among other things, on Sept. 8, 2014, Vasquez and another MS-13 member, Angel Pineda a/k/a “Bravo,” were involved in an attempted murder of a suspected gang rival in which the victim was stabbed multiple times.

Separately, Vasquez assisted other MS-13 members in burying evidence relating to a murder in East Boston in January 2016.  On Jan. 10, 2016, Edwin Diaz, a/k/a “Demente,” Rigoberto Mejia, a/k/a “Ninja,” and other MS-13 members murdered a 16-year-old boy who MS-13 members believed to belong to the rival 18th Street gang. The victim was shot and stabbed multiple times. A few days after the murder, Vasquez—who did not personally commit the murder—helped another MS-13 member hide evidence related to the murder.  Specifically, Vasquez helped bury the knife and machete used in the murder, as well as bloody clothes worn by those who committed the crime. This evidence was later recovered by law enforcement.  

After a multi-year investigation, Vasquez was one of dozens of alleged leaders, members, and associates of MS-13 named in a superseding indictment unsealed in January 2016 that targeted MS-13’s criminal activities in Massachusetts. Vasquez is the 46th defendant to be convicted as part of that ongoing prosecution.

Pineda previously pleaded guilty and was sentenced to 93 months in prison. Diaz and Mejia previously pleaded guilty to racketeering conspiracy involving murder and are awaiting sentencing.

At today’s hearing, the Court accepted Vasquez’s guilty plea but deferred acceptance of the proposed plea agreement until the sentencing hearing. Under the terms of the proposed plea agreement, Vasquez will be sentenced to between 15 and 18 years in prison. 

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter 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 Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; 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.

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

BOSTON – A Lawrence man pleaded guilty today in federal court in Boston to a federal drug charge.

Hector Gomez, 38, was sentenced by U.S. District Court Judge Richard G. Stearns to time served and three years of supervised release. In November 2017, Gomez pleaded guilty to one count of attempting to possess with intent to distribute cocaine. In December 2016, Gomez was arrested and charged along with five co-defendants: Juan Ulfany Mateo Soto; Angel Torres Leon; Maximo Rodriguez; Angel Figueras; and Wallington Garcia.

On Oct. 27, 2016, officers observed a cocaine transaction between Mateo Soto and Torres Leon. The officers followed the car in which Mateo Soto was transporting the cocaine after the transaction, stopped him, and towed the car because Mateo Soto did not have a valid driver’s license. The officers then found and seized six kilograms of cocaine from a backpack in the car.

Each of the defendants, including Gomez, attempted to retrieve the cocaine that the officers seized. Specifically, Gomez conducted surveillance on the tow truck to identify law enforcement vehicles that might be in the vicinity and reported back to Mateo Soto. Gomez and another defendant then went to the tow yard in an attempt to retrieve the car and the drugs contained in a backpack to return to Mateo Soto. 

Maximo Rodriguez was scheduled for jury trial on Feb. 20, 2018, but failed to appear. He is currently a fugitive. Angel Torres Leon and Angel Figueras were sentenced in December 2017 to 40 months in prison and time-served, respectively. Mateo-Soto was sentenced in March 2018 to six years in prison; and Wallington Garcia’s case was dismissed.

United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Peter Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Susan Winkler of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.

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

BOSTON – A Dominican national pleaded guilty today in federal court in Boston in connection with failing to appear in court for a sentencing hearing in 1997.

Luis Alberto Solano-Pimentel, 51, pleaded guilty to one count of failure to appear. U.S. District Court Judge Mark Wolf scheduled sentencing for Aug. 8, 2018. Solano- Pimentel was arrested on March 6, 2018, in Rhode Island after eluding law enforcement for 20 years. He has been detained since his arrest.  

In 1997, Solano- Pimentel pleaded guilty to passport fraud in federal court in Boston, but failed to appear on his scheduled sentencing date. Solano- Pimentel remained a fugitive until he was arrested in Warwick, R.I.

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

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

BOSTON – A Beckley, W.Va., man was sentenced today in federal court in Boston in connection with a scheme in which he purported to sell paintings stolen from the Isabella Stewart Gardner Museum in 1990, on Craigslist.  

Todd Andrew Desper, a/k/a “Mordokwan,” 48, was sentenced by U.S. District Court Judge Rya W. Zobel to time served and three years of supervised release, three months of which is to be served in home confinement. In February 2018, Desper pleaded guilty to four counts of wire fraud and attempted wire fraud. In May 2017, Desper was arrested in West Virginia and charged in a criminal complaint. 

Desper, acting under the pseudonym “Mordokwan,” solicited foreign buyers on Craigslist for both the Rembrandt’s Storm on the Sea of Galilee and Vermeer’s The Concert, two paintings that were stolen from the Isabella Steward Gardner Museum in 1990. Desper directed interested buyers to create an encrypted email account to communicate with him. Authorities were notified of the foreign Craigslist notices by individuals seeking to assist in the recovery of the artwork, as well as those seeking the multi-million dollar reward offered by the Museum.  

At the direction of federal authorities, the security director for the Gardner Museum engaged in encrypted communications with Desper in an attempt to determine whether Desper had access to the stolen masterpieces. Desper instructed the security director to send a cashier’s check for $5 million to a location in West Virginia and that the Storm on the Sea of Galilee would then be sent in return, concealed behind another painting. The investigation ultimately revealed that Desper had no access to, nor information about, the stolen paintings, but was instead engaged in a multi-million dollar fraud scheme targeting foreign art buyers.  

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. Assistance was provided the Isabella Stewart Gardner Museum, the U.S. Attorney’s Office for the Southern District of West Virginia, the FBI Pittsburgh Field Division and the Beckley Police Department. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Criminal Division prosecuted the case.

BOSTON – Today marks the 55th anniversary of Peace Officer’s Memorial Day. It is the one day of the year when we are called upon to recognize those who preserve law and order, particularly those who have been injured in the line of duty or who have made the ultimate sacrifice to keep our communities safe. In truth, we should be keeping our peace officers – federal agents, state troopers, police officers, probation officers, corrections officers and others – in our daily thoughts and prayers. 

Being a peace officer is neither easy nor without risk. The number of firearms-related law enforcement officer fatalities is up 56% in comparison to this time last year. This is a trend that we must stop, through aggressive enforcement and by encouraging respect for the law.     

Our peace officers are also at a higher risk than ever of exposure to traumatic events, resulting in a steady increase in post-traumatic stress and suicidal behavior among those who keep us safe. I cannot over-emphasize the need for improved support, training and equipment for these brave men and women. The least we can do is give them the resources they need to do their jobs. While the federal government will do its part in this area, state and local government must also prioritize the safety and well-being of their officers. Local law enforcement agencies cannot bear this responsibility alone.

To the peace officers in this Commonwealth – today and every day – you have my deepest regard and admiration. The U.S. Attorney’s Office supports you, respects you and has the greatest appreciation for what you do. To the families and loved ones of those who have died or been injured in the line of duty, we remember, and we will not forget the sacrifices that have been made on our behalf.

BOSTON – A Worcester business owner was sentenced today in federal court in Worcester for distributing fentanyl and using the proceeds of drug sales to purchase and renovate nine properties and two restaurants in Worcester County. 

Kevin A. Perry, 44, of Worcester, was sentenced by U.S. District Court Judge Timothy S. Hillman to 14 years in prison and five years of supervised release. Perry was also ordered to forfeit nine properties, the business assets of two restaurants, over $510,000 in cash and precious metals seized to date, an illegal pill press, and two vehicles. The sentence also includes a money judgment of $1,180,943 against Perry should additional assets be located. In October 2017, Perry pleaded guilty to nine counts of money laundering, three counts of aggravated cash structuring, one count of making a false statement on a loan application, and one count of distribution of fentanyl. 

Perry was previously convicted in federal court in Massachusetts of conspiracy to manufacture and distribute MDMA, commonly referred to as Ecstasy. Despite filing an affidavit claiming he possessed nothing of monetary value to satisfy the court’s forfeiture order, Perry boasted to an individual that he successfully concealed from the government “millions of dollars” in profits from drug sales. Following his release from prison in 2008, Perry returned to the manufacturing and distribution of controlled substances, including fentanyl, the deadly synthetic opioid linked to thousands of fatal drug overdoses. On Feb. 23, 2017, Perry distributed 2,000 pills containing fentanyl to an individual cooperating with law enforcement. 

Additionally, from April 2012 to October 2016, Perry used over $1 million in proceeds from drug sales to purchase and renovate nine properties in Worcester County. Those purchases included two restaurants in the city of Worcester: The Usual Restaurant located at 166 Shrewsbury Street and The Blackstone Tap located at 81 Water Street. Perry also used the proceeds from his drug sales to purchase more than 230 money orders totaling over $150,000 from the United States Postal Service and Western Union to make structured cash payments on real estate loans and to finance his wedding in August 2015. The only employment that Perry reported during that time was as a fitness trainer. He also collected unemployment benefits from June 2015 through January 2016.

United States Attorney Andrew E. Lelling; Albert Angelucci, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Delany De Leon-Colon, Acting Inspector in Charge of the United States Postal Inspection Service; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Lelling’s Worcester Branch Office prosecuted the case. 

BOSTON – Three Romanian nationals were sentenced today in federal court in Boston in connection with an ATM skimming scheme operating throughout Massachusetts and other states including Connecticut, New Hampshire, New York and South Carolina. 

Constantin Denis Hornea, 23, his wife Maria Lazar, 19, and his brother Ludemis Hornea, 21, were sentenced by U.S. District Court Judge William G. Young. Judge Young sentenced Constantin Hornea to 65 months in prison, three years of supervised release and ordered him to pay $242,141 in restitution and a money judgment of $54,260; Lazar was sentenced to 27 months in prison, three years of supervised release and ordered to pay $95,902 in restitution and a money judgment of $28,170; and Ludemis Hornea was sentenced to 42 months in prison, which includes credit for 15 months served on a state sentence, three years of supervised release and ordered him to pay $57,422 in restitution and a money judgment of $11,124.

In December 2017, the Hornea brothers and Lazar pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly known as RICO conspiracy, conspiracy to use counterfeit access devices, money laundering conspiracy and aggravated identity theft. The Hornea brothers also pleaded guilty to possession of device making equipment. In May 2017, the Hornea brothers, Lazar and 11 co-conspirators were indicted in connection with the scheme. In March 2018, co-conspirators Denisa Bonculescu, Anamaria Margel and Ion Trifu were sentenced. Claudio Cosmin Florea and Nicusor Bonculescu are pending sentencing; Ion Bonculescu is in extradition proceedings in Germany; Ion Vaduva is in extradition proceedings in Hungary; and Florinel Vaduva and Florin Hornea are pending trial scheduled for Nov. 5, 2018. The whereabouts of Dragush Nelo Hornea and Nemanja Milosavljevic remain unknown.

The defendants, except for Trifu, were members of the Hornea Crew (“Crew”), led by Constantin Denis Hornea and Ludemis Hornea, and engaged in ATM skimming – obtaining debit card numbers and PINs from unsuspecting bank customers, creating counterfeit cards, and making unauthorized withdrawals from the victims’ bank accounts. Over a period of 18 months, the Crew installed skimming devices and made unauthorized withdrawals from ATMs in various town in seven states: Massachusetts, New Hampshire, Connecticut, New York, South Carolina, North Carolina and Georgia.

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

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

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

Two associates of the Genovese La Cosa Nostra (LCN) crime family were sentenced today in federal court in Worcester, Massachusetts on extortion-related charges.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Andrew E. Lelling for the District of Massachusetts; Special Agent in Charge Harold H. Shaw of the FBI’s Boston Field Division; Hampden County District Attorney Anthony Gulluni; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement.

Richard Valentini, 53, of East Longmeadow, Massachusetts, was sentenced by U.S. District Court Judge Timothy S. Hillman to serve 20 months in prison followed by two years of supervised release. On Dec. 18, 2017, Valentini was convicted by a federal jury of one count of conspiracy to interfere with commerce by threats or violence and one count of aiding in the interference with commerce by threats or violence – aiding.

Francesco Depergola, 61, of West Springfield, Massachusetts, was sentenced by Judge Hillman to serve 38 months in prison followed by two years of supervised release. In December 2017, Depergola pleaded guilty to one count of conspiracy to interfere with commerce by threats or violence and one count of aiding in the interference with commerce by threats or violence – aiding, which were charged by indictment in the District of Massachusetts, and one count of racketeering conspiracy, which was charged by indictment in the Southern District of New York.

In August 2016, Valentini and Depergola were arrested with three of their associates from the New York-based Genovese LCN crime family: Gerald Daniele, Giovanni Calabrese, and Ralph Santaniello.

Based on Depergola’s plea documents and evidence elicited at Valentini’s trial, Valentini, Depergola, and their co-defendants, engaged in various criminal activities in Springfield, Massachusetts, including loansharking and extortion from legitimate and illegitimate businesses, such as illegal gambling businesses and the collection of unlawful debts. The defendants used violence, exploited their relationship with LCN, and implied threats of murder and physical violence to instill fear in their victims.

Further, in 2013, Santaniello, Calabrese, Depergola and Valentini attempted to extort money from a Springfield businessman. Santaniello not only assaulted the businessman, but he and Calabrese threatened to cut off the businessman’s head and bury his body if he did not comply. Over a period of two months, in order to protect himself and his business, the businessman paid $20,000 to Santaniello, Calabrese, Depergola and Valentini.

In addition, based on Depergola’s plea documents, around August 2014, Santaniello and Depergola financed a $30,000 loan that New York-based LCN member Eugene O’Nofrio extended to another individual. O’Nofrio later threatened the individual if he did not make payments on the loans. O’Nofrio was charged in the Southern District of New York, has pleaded guilty, and is awaiting sentencing.

In March 2018, Daniele was sentenced to two years in prison; and in April 2018, Calabrese and Santaniello were sentenced to three years and five years in prison, respectively.

Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kevin O’Regan, Chief of Lelling’s Springfield Branch Office and Katharine Wagner of Lelling’s Springfield Branch Office prosecuted the cases.

BOSTON – Two associates of the Genovese La Cosa Nostra (LCN) crime family were sentenced today in federal court in Worcester on extortion-related charges.

Richard Valentini, 53, of East Longmeadow, was sentenced by U.S. District Court Judge Timothy S. Hillman to 20 months in prison and two years of supervised release. On Dec. 18, 2017, Valentini was convicted by a federal jury of one count of conspiracy to interfere with commerce by threats or violence and one count of aiding in the interference with commerce by threats or violence.

Francesco Depergola, 61, of West Springfield, was sentenced by Judge Hillman to 38 months in prison and two years of supervised release. In December 2017, Depergola pleaded guilty to one count of conspiracy to interfere with commerce by threats or violence and one count of aiding in the interference with commerce by threats or violence, which were charged by indictment in the District of Massachusetts, and one count of racketeering conspiracy, which was charged by indictment in the Southern District of New York.

In August 2016, Valentini and Depergola were arrested with three of their associates from the New York-based Genovese LCN crime family: Gerald Daniele, Giovanni Calabrese, and Ralph Santaniello.

Valentini, Depergola, and their co-defendants, engaged in various criminal activities in Springfield, Mass., including loansharking and extortion from legitimate and illegitimate businesses, such as illegal gambling businesses, and the collection of unlawful debts. The defendants used violence, exploited their relationship with LCN, and implied threats of murder and physical violence to instill fear in their victims.

In 2013, Santaniello, Calabrese, Depergola and Valentini attempted to extort money from a Springfield businessman. Santaniello not only assaulted the businessman, but he and Calabrese threatened to cut off the business man’s head and bury his body if he did not comply. Over a period of two months, in order to protect himself and his business, the businessman paid $20,000 to Santaniello, Calabrese, Depergola and Valentini.

In addition, around August 2014, Santaniello and Depergola financed a $30,000 loan that New York-based LCN member Eugene O’Nofrio extended to another individual. O’Nofrio later threatened the individual if he did not make payments on the loans. O’Nofrio was charged in the Southern District of New York, has pleaded guilty, and is awaiting sentencing.

In March 2018, Daniele was sentenced to two years in prison; and in April 2018, Calabrese and Santaniello were sentenced to three years and five years in prison, respectively.

United States Attorney Andrew E. Lelling; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Hampden County District Attorney Anthony Gulluni; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Kevin O’Regan, Chief of Lelling’s Springfield Branch Office; Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section; and Assistant U.S. Attorney Katharine Wagner of Lelling’s Springfield Branch Office prosecuted the cases.

BOSTON – A Sharon woman was arrested today and charged in federal court in Boston with stealing Social Security benefits intended for her children.   

Stacey Orlando, 59, was indicted on two counts of theft of public funds. She is scheduled to appear before U.S. District Court Magistrate Judge Jennifer C. Boal today at 2:15PM. 

According to the indictment that was unsealed today, from May 2011 through October 2013, Orlando stole approximately $35,716 in Social Security benefits that were paid to her on behalf of her two children. 

The charge of theft of public 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, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

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

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

BOSTON – A Salvadoran national was charged yesterday in federal court in Boston with illegally reentering the United States after being deported.  

Manuel Erazo-Posada, 37, was indicted on one count of unlawful reentry of a deported alien.

Law enforcement in Boston encountered Erazo-Posada on April 30, 2018, and determined him to be illegally present in the United States. Erazo-Posada was previously deported on June 28, 2010.

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

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

BOSTON - A Pittsfield man was charged in federal court in Springfield yesterday with distributing marijuana, illegally possessing 10 guns and money laundering.

Matthew Murray, 40, was indicted on one count of possession with intent to distribute and distribution of marijuana, one count of possession of firearms in furtherance of a drug trafficking crime, and one count of money laundering.

As alleged in the indictment, Murray  possessed and distributed more than 100 kilograms of marijuana, possessed 10 firearms in furtherance of the drug trafficking, and concealed the proceeds of his drug trafficking.

The drug charge provides for a sentence of no greater than 40 years in prison, a lifetime of supervised release and a $5 million fine. The firearms charge provides for a sentence of at least five years and up to life in prison, up to five years of supervised release, and a $250,000 fine. The charge of money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000, or twice the value of the property involved in the money laundering transaction. The United States will also seek to forfeit Murray’s interest in his residence on Southbrook Lane in Pittsfield, at least $799,259 in drug proceeds, an Audi A6, a Ducati Motorcycle and the firearms and ammunition used in furtherance of the crimes.

United States Attorney Andrew E. Lelling; Albert Angelucci, Acting 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; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.

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

BOSTON – A New Bedford man was sentenced yesterday in federal court in Boston for his role in a heroin and fentanyl trafficking organization that operated in Taunton and Boston.

David Tejeda, 35, was sentenced by U.S. District Court Judge Indira Talwani to six years in prison and three years of supervised release. In October 2017, Tejeda pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin and fentanyl. In February 2017, Tejeda and 22 co-defendants were arrested in connection with the conspiracy.

From mid-2016 through February 2017, federal law enforcement investigated a heroin and fentanyl trafficking organization led by Jose Antonio Lugo-Guerrero. Lugo-Guerrero allegedly operated his organization in Fall River and Boston and sold to numerous customers, including Tejeda. On Feb. 14, 2017, agents arrested Tejeda and seized from his New Bedford residence 119 grams of a mixture containing fentanyl and heroin and 117 grams of a mixture containing fentanyl and cocaine.

Lugo-Guerrero has pleaded not guilty and is awaiting trial.

United States Attorney Andrew E. Lelling; Albert Angelucci, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Fall River Police Chief Daniel S. Racine; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William B. Evans; and Bristol Country District Attorney Thomas M. Quinn made the announcement. Assistant U.S. Attorney Ted Heinrich of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.

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

BOSTON – A Holyoke man was sentenced yesterday in federal court in Springfield for receiving child pornography.

Edward F. Dupont, 75, was sentenced by U.S. District Court Judge Mark G. Mastroianni to eight years in prison and seven years of supervised release. In January 2018, Dupont pleaded guilty to one count of receipt of child pornography. Dupont was arrested in August 2015 and has been detained since.

On June 23, 2015, federal law enforcement agents executed a search warrant at Dupont’s residence where they seized a computer containing over 16,000 images and 35 videos of child pornography. Four of the videos depicted the rapes of girls as young as five-years-old.

Dupont also possessed a 170-page manual entitled, “How to Practice Child Love.” The manual is a professionally designed document that presents itself as “an education and a step-by-step guide for adults to engage and practice sexual relationships with children.” The manual states: “You do not even need to leave your own house or lot to meet new children and child love candidates. If you are bound to stay at your house, and preferably living alone, you can actually get the kids all the way to your front door – and even inside. This might even be a very safe option too – since as soon as you get the kids inside, no one can watch your activities from outside.”

During the search, Dupont waived his Miranda rights and stated that he has a sexual interest in young children; he has used his computer to access child pornography sites and to download child pornography images and videos; and he possessed child pornography on his home computer. 

Though Dupont denied ever having sexual contact with children, he admitted that neighborhood children came over to play in his backyard and in his basement. He had also given copies of his house keys to the neighbors so that their children could come over any time they wanted, and he maintained a cupboard with games for the children to play.

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

BOSTON – A Dorchester man was sentenced on Wednesday, May 9th, in federal court in Boston for kidnapping, loansharking and illegal gambling. 

Quang PT Le, 27, was sentenced by U.S. District Court Judge Leo T. Sorokin to six years in prison and three years of supervised release. Le was also ordered to pay $6,300 in restitution. In February 2018, Le pleaded guilty to kidnapping, conspiracy to collect extensions of credit by extortionate means, and operating an illegal gambling business. In August 2017, Le was indicted along with co-defendants Ban Tran, a/k/a “Bo,” 26; Vinh Huynh, 35, and Kim Nguyen, 25, all of Dorchester.

On Nov. 14, 2016, Le, who was armed with a knife, and his 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. Le and his 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 to Le. In August 2017, Le and others were arrested before the last payment was due.

Huynh pleaded guilty in December 2017 and is awaiting sentencing. The remaining defendants have pleaded not guilty and are pending trial.

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 B. Evans; 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 defendants charged in this case are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.