District of Massachusetts

BOSTON – A Stoughton man was sentenced yesterday in federal court in Boston for the armed robberies of United States Postal Service (USPS) letter carriers that took place on Nov. 29, 2022 in Mattapan and Dec. 16, 2022 in Hyde Park. In one instance, the defendant robbed the letter carrier at knifepoint.

Kenneth Demosthene, 24, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to three years in prison, to be followed by three years of supervised release. In July 2024, Demosthene pleaded guilty to two counts of robbery of any person having lawful charge, control, or custody of any mail matter or of any money or other property of the United States, aiding and abetting and two counts of assaulting, resisting, or impeding certain officers or employees, aiding and abetting. In May 2023, Demosthene was indicted by a federal grand jury along with his alleged co-conspirator Myesha Lewis.

USPS has seen a rise in the use of arrow keys to facilitate the theft of U.S. Mail. An arrow key is a specific key designed to open designated blue USPS collection boxes in a specific area. These arrow keys are the property of USPS and it is a federal offense for an unauthorized person to possess one. Since July 2022, there have been at least 23 assaults on USPS letter carriers while in the performance of their official duties in Boston and its surrounding communities. These incidents included the attempted or successful robbery of USPS arrow keys from letter carriers. Additionally, of these 23, 15 of the robberies were instances where the perpetrators were reportedly armed with a knife, firearm, or both.

On Nov. 29, 2022, in Mattapan, Demosthene and, allegedly, Lewis followed and forcibly robbed a USPS letter carrier of an arrow key. Demosthene approached the letter carrier and said, “I’m going to need your master key,” before reaching into the letter carrier’s mail satchel and grabbing the arrow key. The arrow key was secured around the letter carrier’s belt with a brass chain. It is alleged that the force used to physically break the brass chain caused the letter carrier to be pulled off the front steps. Demosthene and, allegedly, Lewis fled the scene in a rental vehicle.

On Dec. 16, 2022, in Hyde Park, Demosthene and, allegedly, Lewis robbed another USPS letter carrier of an arrow key at knife point. Demosthene approached the USPS letter carrier and said, “Give me your f****** arrow key.” The letter carrier put their hands in the air as the defendants attempted to remove the arrow key, at first by force pulling at the chain. Demosthene and, allegedly, Lewis then attempted to cut it with the knife – eventually breaking the arrow key loose, and fleeing the scene on foot.  

Lewis is expected to plead guilty on Oct. 30, 2024.

Acting United States Attorney Joshua S. Levy and Ketty Larco-Ward, Inspector in Charge of the United States Postal Inspection Service, Boston Division made the announcement today. Valuable assistance was provided by the U.S. Postal Service, Office of the Inspector General. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.

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

BOSTON – A New York doctor was charged today in federal court in Boston for allegedly receiving kickbacks in exchange for ordering medically unnecessary brain scans.

Dr. Kenneth Fishberger, 75, of East Setauket, N.Y. was charged and has agreed to plead guilty to one count of conspiracy to commit health care fraud. A plea hearing has not yet been scheduled by the Court.

According to the charging documents, Fishberger, an internist in Long Island, N.Y., was a licensed medical doctor in the State of New York for approximately 47 years. It is alleged that from approximately June 2013 through December 2019, Fishberger conspired with others, including a principal for a mobile medical diagnostics company that performed transcranial doppler (TCD) scans, and a salesperson for the company, to order hundreds of medically unnecessary TCD scans in exchange for kickbacks. TCD scans are brain scans that measure blood flow in parts of the brain – It is further alleged that Fishberger and his co-conspirators used false diagnoses to order the unnecessary brain scans, for which a co-conspirator would submit claims to Medicare and other insurance companies, including private insurance companies, on behalf of the medical diagnostic company for payment. In exchange, Fishberger was paid cash kickbacks of approximately $100 per test. According to the charging documents, the scheme resulted in fraudulent bills of approximately $891,978 to Medicare and private insurance companies.

The charge of conspiracy to commit health care fraud provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division, Boston Field Office; Carol S. Hamilton, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office. Assistant U.S. Attorneys Howard Locker and Mackenzie Queenin of the Health Care Fraud Unit are prosecuting the case.

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

BOSTON – A Colombian man was sentenced yesterday for illegally reentering the United States after deportation.

Fabian Lopez Mejia, 31, was sentenced by U.S. District Court Judge Denise J. Casper to six months in prison to be followed by one year of supervised release. In September 2024, Lopez Mejia pleaded guilty to one count of unlawful reentry of a deported alien. In June 2024, Lopez Mejia was indicted by a federal grand jury.

Lopez Mejia was previously removed from the United States in November 2019. Sometime after his removal, Lopez Mejia returned to the United States. Federal authorities became aware of Lopez Mejia’s return to the United States while he was serving a state prison sentence after he pleaded guilty in October 2023 in Suffolk Superior Court to one count of possession with intent to distribute a Class B substance and one count of forgery/misuse of an RMV document.  

Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney John J. Reynolds III of the Major Crimes Unit prosecuted the case.

BOSTON – A man was arrested and charged yesterday for allegedly masturbating and exposing himself within the view of two other passengers seated near him on board a flight from Abu Dhabi, United Arab Emirates to Boston, Mass. yesterday.

Krishna Kunapuli, 39, of India, was charged by criminal complaint with one count of lewd, indecent and obscene acts while in the special aircraft jurisdiction of the United States. Kunapuli was arrested yesterday and will appear in federal court in Boston later today.

According to the charging documents, Kunapuli allegedly made unwanted sexual advances toward a female passenger on board an Etihad Airlines flight, including touching her hair and taking pictures of her without her permission. After a crew member intervened, Kunapuli returned to his seat.

It is alleged that, later in the flight, two male passengers seated near Kunapuli noticed Kunapuli masturbating under a blanket and, at times, with his penis fully exposed. One of the passengers reported this conduct to a flight attendant who intervened and alerted law enforcement.

The charge of lewd, indecent and obscene acts while in the special aircraft jurisdiction of the United States provides for a sentence of up to 90 days in prison, up to one year of supervised release and a fine of up to $5,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Colonel Geoffrey D. Noble of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of the 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 Social Security Administration (SSA) employee was arrested today for attempting to persuade a Social Security beneficiary to cross state lines to engage in prostitution.

Dae Sung Kim, 35, of Auburn, Mass., was charged with one count of attempting to induce a person to travel in interstate commerce to engage in prostitution.

According to the criminal complaint, in March 2024, Kim handled an in-person visit at the Gardner SSA field office from an individual seeking Social Security benefits after losing her job. After redirecting the individual to another SSA field office near her residence in another state, Kim allegedly called the individual, using the phone number he obtained from SSA’s computer system. Kim allegedly indicated that he understood she was in a difficult situation and stated that maybe they could “work something out” that would benefit them both.  

During a call monitored by law enforcement later that month, Kim allegedly again stated to the individual that they could “help each other out” and proposed giving the individual money in exchange for sex. In several subsequent text messages, Kim allegedly suggested that the individual travel to Massachusetts to meet him, offering to pay $100 to have sex in a car at a hotel parking lot. When Kim traveled to the hotel parking lot to execute his plan in October 2024, he was confronted by law enforcement.

The charge of attempting to induce a person to travel in interstate commerce to engage in prostitution provides for a sentence of up to 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.

Acting United States Attorney Joshua S. Levy and Amy Connelly, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement. Valuable assistance was provided by Homeland Security Investigations and the Fitchburg and Gardner Police Departments. Assistant U.S. Attorney Brendan D. O’Shea of the Worcester Branch Office and Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit are prosecuting the case.

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

BOSTON – A Quincy woman was charged today in federal court in Boston with fraudulently receiving Social Security disability benefits.  

Crystal Gesumaria, 41, was charged with one count of theft of government money. She will appear in court at a later date.

According to the charging documents, July 2013 to August 2022, Gesumaria stole approximately $93,603 in Social Security disability benefits.

The misdemeanor charge of theft of government money provides for a sentence of up to one year in prison, one year of supervised release, five years of probation and a fine of $100,000 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 statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Amy Connelly, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division made the announcement today. Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit is prosecuting the case.

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

BOSTON – A Methuen man was sentenced on Oct. 18, 2024, for drug conspiracy charges involving distribution of fentanyl, fentanyl analog and cocaine.

Daniel Lopez-Gonzalez, 28, was sentenced by Chief District Judge F. Dennis Saylor IV to 135 months in prison, followed by five years of supervised release. In March 2024, Lopez-Gonzalez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute controlled substances, involving 400 grams or more of fentanyl and 100 grams or more of fentanyl analog. Lopez-Gonzalez was indicted in April 2023 along with Erickson Castro Perez and Gustavo Adolfo Reyes Gonzalez.

Between June 2022 and January 2023, Lopez-Gonzalez and his co-conspirators Castro Perez and Reyes Gonzalez sold fentanyl and fentanyl analog to undercover law enforcement on six separate occasions in Haverhill and Boxford. On January 23, 2023, a search of a Haverhill-based stash location used by the three men resulted in the seizure of additional quantities of fentanyl, fentanyl analog, cocaine and other narcotics. Additionally, an illegal firearm, ammunition, more than $35,000 in U.S. currency and two high-end watches were also seized from Lopez-Gonzalez’s home.

In total, approximately 2.5 kilograms of fentanyl or fentanyl analog was seized over the course of the investigation.

Castro Perez was sentenced in May 2024, to 51 months in prison and three years of supervised release. Reyes Gonzalez was sentenced in Sept 2024 to 21 months in prison to be followed by three years of supervised release.

Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance was provided by the Massachusetts State Police.  Assistant U.S. Attorney Samuel R. Feldman of the Narcotics & Money Laundering Unit prosecuted the case.
 

BOSTON – A Boston area man pleaded guilty today to his role in Cameron Street, a violent Boston gang.

Jose Afonseca, 32, pleaded guilty today to conspiracy to participate in a racketeering enterprise, conspiracy to distribute 500 grams or more of cocaine and dealing in firearms without a license. U.S. Senior District Court Judge William G. Young scheduled sentencing for Jan. 30, 2025.   

During the investigation, Afonseca was identified as member of the Cameron Street gang, who worked with other Cameron Street members to distribute hundreds of grams of cocaine and cocaine base, more commonly referred to as “crack” cocaine, from a stash house in Somerville. Afonseca was recorded discussing his ability to acquire illegal firearms and was recorded selling two firearms and over 30 rounds of ammunition to a cooperating witness. On Aril 15, 2022, agents executed a series of arrest and search warrants in this case. Three hundred ninety-eight grams of cocaine, along with packaging materials, two hydraulic presses, a digital scale, a cell phone, and $14,986 in U.S. currency were seized from the stash house.

According to court documents, Cameron Street, a violent gang based largely in the Dorchester section of Boston that uses violence and threats of violence to preserve, protect, and expand its territory, promote a climate of fear, and enhance its reputation.

The charge of RICO conspiracy and conspiracy to interfere with commerce by force or violence each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to distribute 500 grams or more of cocaine provides for a minimum sentence of five years and a maximum sentence of 40 years, a $5 million fine, and a minimum four years supervised release up to life. The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

Acting United States Attorney Joshua Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher Pohl and Charles Dell’Anno of the Criminal Division are prosecuting the case.

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

BOSTON – A Swampscott, Mass. man was convicted on Oct. 18, 2024, following a two-week jury trial in Boston, of a 25-year scheme to conceal his persecution of ethnic Serbs during the Bosnian War.  He was also convicted of making false claims to become a refugee to the United States and ultimately a United States citizen.

Kemal Mrndzic, 52, was convicted of engaging in a scheme to conceal his involvement in persecution of Serb prisoners at the notorious Celebici prison camp in Bosnia in 1992; making a false statement to Homeland Security agents about his role at the camp; possessing a fraudulently obtained naturalization certificate and Social Security card; and using a fraudulently obtained passport and certificate of naturalization. The jury acquitted him of two counts of making false statements to a Homeland Security Investigations special agents. In June 2023, Mrndzic was indicted by a federal grand jury.

“The heartbreaking testimony of the Celebici survivors reminded us that the physical pain and mental anguish inflicted by Kemal Mrndzic and his fellow guards at that notorious camp still haunts them 30 years later,” said Acting United States Attorney Joshua S. Levy. “Mrndzic concealed his crimes for decades, but gravely underestimated the bravery of these victims and law enforcement’s dedication to finding and prosecuting those who engage in wartime persecution. Investigating and prosecuting these historical transnational cases demands extraordinary commitment and we are deeply grateful for the exceptional work of our federal law enforcement partners and our partners in countries across the globe.”

“A jury found Mrndzic guilty of lying about his past to come to the U.S. under false pretenses, concealing his work as a guard at the notorious Celebici prison camp, a prison with well-documented cases of violence, abuse and even murder of prisoners during the Bosnian War,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations, New England. “HSI continues to use our international reach and regional expertise to uncover the past and bring to justice those who lie to undeservingly seek refuge in the U.S. We want to express our deep gratitude to the bravery of the survivors who came forward to testify during this trial.”

Mrndzic served as a supervisor of the guards at a notorious prison camp in Bosnia and Herzegovina during the sectarian war which fractured the country in the 1990s. Five camp survivors testified at trial, recounting the horrific conditions at the Celebici camp in 1992 when Mrndzic was a supervisor there. Survivors testified about their detention in a lightless, airless tunnel for months on end, their near suffocation after being sealed in manholes for hours at a time, and the daily and nightly beatings that were administered by the guards at the camp — with baseball bat, wooden poles and rifle buts. The survivors testified to murders, the burning of one detainee’s tongue with a heated knife blade, the wrapping of another detainee with a long fuse cord and then lighting it on fire, sexual abuse, and other harrowing acts committed over a period of many months. One survivor recounted the beating death of a 70-year-old detainee whom guards pinned a military badge to his forehead while he was still dying. Survivors also testified about being starved and deprived of the most basic needs, including sleeping on the concrete floor of a sheet metal hanger for months on end while being fed only a slice of bread a day.

A United Nations tribunal investigated the crimes committed at Celebici in the 1990s and convicted the two top commanders of the camp and one particularly sadistic guard on numerous crimes including murder and torture. While Mrndzic was interviewed by investigators in connection with that case in 1996, he was not charged by international authorities. Mrndzic subsequently concocted a scheme to leave Bosnia by crossing the border into Croatia and applying as a refugee to the United States using a fabricated story. In his refugee application and interview, he falsely claimed that he fled his home after he was captured, interrogated and abused by Serb forces, and could not return home for fear of future persecution. As the government argued at trial, Mrndzic used his own experience as a persecutor to press a false narrative that he had been persecuted. He was admitted to the U.S. as a refugee in 1999, and ultimately became a naturalized U.S. citizen in 2009.    

The charges of using a fraudulently obtained passport and fraudulently obtained naturalization certificate each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The three remaining charges each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting U.S. Attorney Levy; HSI SAC Krol; Amy Connelly, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; Matthew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Jennifer De La O, Director of Field Operations, U.S. Customs and Border Protection, Boston Field Office made the announcement. This matter was investigated with the assistance of the Justice Department’s Office of International Affairs, the United States Interagency Human Rights Violators & War Crimes Center and the United States Citizen and Immigration Service. Assistance was provided by the Criminal Division’s Human Rights and Special Prosecutions Section and the United States Embassies in Sarajevo, Belgrade and Helsinki. The Australian Federal Police, Bosnian and Herzegovinian Ministry of Justice, Serbian Ministry of Justice, law enforcement authorities in Finland and the Royal Canadian Mounted Police all provided valuable assistance. The Cook County (Ill.) Sheriff’s Office and Swampscott (Mass.) Police Department also provided valuable assistance. Assistant U.S. Attorneys John T. McNeil and Jason A. Casey of the National Security Unit are prosecuting the case.

BOSTON – A Boston man was sentenced on Oct. 18, 2024, for conspiring to illegally traffic and straw purchase firearms.

Shakim Grant, 23, was sentenced by U.S. District Court Judge Patti B. Saris to three years of probation. In May 2023, Grant pleaded guilty to one count of conspiracy to make false statements in records required to be kept by an FFL and one count of aiding and abetting making false statements in records required to be kept by an FFL. Grant was initially charged by complaint on Jan. 17, 2023 along with co-conspirators Cory Daigle and Gustavo Rodriguez. He was subsequently charged by an Information on March 16, 2023.

From in or about August 2022 through November 2022, Daigle and Rodriguez conspired to create false entries in records required to be maintained by Daigle, an FFL, in order to conceal the illegal sale of multiple firearms via Grant to Rodriguez, who could not lawfully purchase or possess firearms. Specifically, Grant and, allegedly, Daigle made and signed false representations on required forms to disguise Rodriguez’s identity as the true firearm purchaser. Rodriguez is prohibited from possessing a firearm. It is further alleged that the defendants attempted to coverup the illegal straw purchase by providing false information to law enforcement. One of the guns sold by Daigle was used two weeks later in a shooting outside of Rodriguez’s residence. According to court documents, the same gun, was subsequently recovered from a juvenile in New Bedford by police.

Daigle pleaded guilty in August 2024 and is currently pending sentencing. Rodriguez pleaded guilty in November 2023 and is awaiting sentencing.

Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, & Explosives, Boston Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance in the investigation was provided by the Revere Police Department. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
 

BOSTON –– A Connecticut man was sentenced on Oct. 16, 2024 for evading taxes on income he earned from commercial fishing in Massachusetts.

Brian Kobus, 49, of Durham, Conn., was sentenced by U.S. District Judge Nathaniel M. Gorton to one year and one day in prison, to be followed by one year of supervised release. Kobus was also ordered to pay restitution to the United States of $377,839. In July 2024, Kobus pleaded guilty to two counts of tax evasion.

Kobus worked as a commercial fisherman and deckhand for various fishing companies in Massachusetts for over 30 years, earning over $1.4 million in taxable income between 2011 and 2013 and between 2017 and 2021. The companies paid Kobus by check after each fishing trip and provided Kobus with IRS forms which detailed his earnings and made clear that no taxes had been withheld. Despite this, Kobus never filed a federal income tax return or paid the taxes he owed on this income. Kobus intentionally concealed his income by immediately cashing each paycheck and paying for all of his personal expenses in cash. In total, Kobus caused a tax loss to the IRS of approximately $377,839.90.

Acting United States Attorney Joshua S. Levy; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Victor Wild of the Securities, Financial & Cyber Fraud Unit and Trial Attorney Matthew L. Cofer of the Justice Department’s Tax Division prosecuted the case.
 

BOSTON – A member of the violent Boston gang Cameron Street was sentenced yesterday for committing an armed home invasion robbery with fellow gang members.

Brendon Amado, 27, of Randolph, was sentenced by U.S. Senior District Court Judge William G. Young to 70 months in prison to be followed by three years of supervised release. In February 2024, Amado pleaded guilty to conspiracy to interfere with commerce by threats or violence.

Amado was identified as an associate of Cameron Street, a violent gang based largely in the Dorchester section of Boston that uses violence, including murder and attempted murder, to preserve, protect and expand their territory.

In July 2018, Amado, along with Cameron Street members and co-defendants Deronde Bethea and Michael Nguyen, committed a home invasion robbery with firearms of two victims at the home of a rival drug dealer in Canton. Amado, Bethea and Nguyen broke into the home through the back door, wearing masks and dark hoodies and carrying firearms. One victim ran out of the front door of the house and called 911. The second victim was brought into the living room, punched in the head, had a gun put to her head. as the men ransacked the house demanding, “where’s the stuff, where’s the money, where’s your boyfriend?” Amado, Bethea and Nguyen later fled the house in a silver pickup truck after stealing $2,000 in cash and a safe. Among other evidence, Amado and Bethea were identified on convenience store surveillance footage shortly before the robbery took place.

In December 2023, Nguyen pleaded guilty and in March 2024 he was sentenced to 70 months in prison and three years of supervised release. Bethea pleaded guilty in February 2024 and in June 2024 was sentenced to 250 months in prison, followed by three years of supervised release.

Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, and Boston Police Commissioner Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher Pohl and Charles Dell’Anno of the Criminal Division are prosecuting the case.

This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

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

BOSTON – A Lowell man has been arrested for his involvement in a conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine.

Jorge Manuel “Manny” Huertas, 46, was charged with one count of conspiracy to distribute and possess with the intent to distribute more than 40 grams of fentanyl and more than 50 grams of methamphetamine. Huertas will make his initial appearance in federal court in Boston later today.

According to the charging document, Huertas distributed counterfeit oxycodone pills containing fentanyl and counterfeit Adderall pills containing methamphetamine to a confidential source. Search warrants were conducted this morning at Huertas’s residence and the residences of his associates.

The charge of conspiracy to distribute and possess with intent to distribute more than 40 grams of fentanyl and more than 50 grams of methamphetamine carries a minimum sentence of five years and a maximum sentence of 40 years, at least four years of supervised release, and a maximum fine of $5,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration; and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Lowell Police Department and the Middlesex County Sheriff’s Office. Assistant U.S. Attorney Evan Panich of the Narcotics & Money Laundering Unit is prosecuting the case.

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

BOSTON – The leader of a large-scale drug trafficking conspiracy that distributed fentanyl, fentanyl analogue and cocaine throughout Quincy and Weymouth was sentenced on Oct. 15, 2024 in federal court in Boston.

Aderito Patrick Amado, 34, of Brockton and Quincy, was sentenced by U.S. Senior District Court Judge William G. Young to 32 years in prison to be followed by 10 years supervised release. In June 2024, Amado was convicted by a federal jury of two counts of possession with intent to distribute 400 grams or more of fentanyl, 100 grams or more of a fentanyl analogue and 500 grams or more of cocaine – and conspiracy to do the same; one count of possession with intent to distribute cocaine, 40 grams or more of fentanyl and 100 grams or more of fentanyl analogue; one count of possession with intent to distribute cocaine and 40 grams or more of fentanyl; two counts of possessing firearms as a convicted felon; and one count of possessing a firearm in furtherance of a drug offense. The Court sentenced Amado to 27 years in prison on counts one through four and counts six through seven, to be followed by five consecutive years in prison on count five. At sentencing, the Court applied a stash house and leadership enhancement and found that Amado obstructed justice at trial through his testimony.  

In September 2022, Amado was indicted by a federal grand jury along with co-defendants Erica Vieira, Neylton Fontes and Chaasad Cyprien. The defendants were subsequently charged in a superseding indictment in December 2022 and, later, a second superseding indictment in October 2023. Amado was charged in a third superseding indictment in May 2024.

“Mr. Amado was the leader of an organization that pumped multiple kilograms of dangerous and deadly drugs into our communities, including fentanyl and fentanyl analogue. He will now have more than three decades in prison to contemplate his critical role in driving fentanyl addiction and contributing to overdose deaths through his wholesale and street-level distribution all in pursuit of the almighty buck,” said Acting United States Attorney Joshua S. Levy. “This case demonstrates that people like Aderito Patrick Amado, who terrorize communities with their guns, drugs, and manipulation of others, will pay a heavy price. This was an exceptionally skilled and dogged investigation by the prosecutors in our office, the FBI, the Quincy Police and other law enforcement partners. This lengthy sentence should send a strong message to others, do not engage in the toxic brew of illicit narcotics and guns or you will go to jail for a very long time.”

“Aderito Patrick Amado and his crew were a crime wave unto themselves. As the leader of this large-scale drug trafficking operation that brought in and sold multi-kilo quantities of fentanyl and cocaine, protected by high-capacity firearms, Mr. Amado could have cared less about this area’s raging opioid crisis,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation Boston Division. “The FBI’s Metro Boston Gang Task Force worked with our law enforcement partners on the South Shore to make this case that led to Amado being sent to prison for the next three decades, and we’re all gratified to see such a prolific criminal finally held accountable.”

“I would like to thank the Detectives assigned to the Quincy Police Drug Control Unit, our local, state and federal partners and particularly the prosecutors from the U.S. Attorney’s office for bringing this case forward. Taking this individual off the streets undoubtedly saved lives in our community,” said Quincy Police Chief Mark Kennedy.

Until at least January 2021, Amado helped lead a conspiracy to distribute fentanyl, fentanyl analogue and cocaine in and around the Quincy and Weymouth areas. The investigation determined that the drug distribution conspiracy operated primarily out of a stash house in Weymouth, with additional evidence located inside Amado’s apartment in Quincy and in his vehicle.

Specifically, a January 2021 search of Amado’s Quincy apartment resulted in over 40 grams of fentanyl, a quantity of cocaine, over $270,000 in cash, a money counter, a loaded Glock and ammunition being recovered. Amado’s vehicle contained over 40 grams of fentanyl and over 100 grams of fentanyl analogue, along with approximately $50,000 cash and multiple cellphones. Additionally, the Weymouth stash house was, in essence, a drug factory – housing two presses used to form controlled substances into kilogram-sized bricks and extensive drug paraphernalia, including blenders, digital scales, cutting agents, a money counter, and packaging equipment. The stash house also contained more than 10 kilograms of fentanyl, fentanyl analogue and cocaine as well as three firearms and ammunition, including two high-capacity magazines and a speed loader. One firearm was equipped with a laser beam and another firearm had a custom slide. Given Amado’s status as a felon, he is prohibited from possessing any firearms. At least one of Amado’s fingerprints were recovered on the ammunition tray located inside one of the boxes of ammunition in the stash house. His fingerprints were also recovered on one of the bags of cutting agents.

Information from a court-ordered GPS ankle monitor placed Amado at both his residence and the stash location nearly every day over a two-month period while on probation for a state drug conviction. Additionally, web history information from one of Amado’s devices showed that he conducted online reviews of various items ultimately recovered from the stash house, including the kilogram presses, firearms and cutting agents.

Vieira pleaded guilty in May 2024 and is scheduled to be sentenced on March 24, 2025. Fontes pleaded guilty in May 2024 and was sentenced in September 2024 to two years in prison and three years of supervised release. Cyprien pleaded guilty in April 2024 and in July 2024 was sentenced to two years in prison and three years of supervised release.

Acting U.S. Attorney Joshua S. Levy, FBI SAC Cohen and Quincy Chief Kennedy made the announcement. Valuable assistance in the investigation was provided by the Weymouth, Braintree, Randolph and Brockton Police Departments. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Philip A. Mallard of the Criminal Division are prosecuting the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
 

BOSTON – A Hyannis man was sentenced yesterday for being a felon in possession of a firearm. Specifically, the defendant possessed and sold a Chinese SKS .762 caliber rifle.    

Ryan Diefenbach, 33, was sentenced by U.S. Senior District Judge William G. Young to six years in prison to be followed by three years of supervised release. In July 2024, Diefenbach pleaded guilty to one count of being a felon in possession of a firearm. In November 2022, Diefenbach, along with co-defendant Donnell Pina, was indicted by a federal grand jury.

In September 2021, Diefenbach, and allegedly Pina, sold a Chinese SKS .762 caliber rifle to a confidential informant in Hyannis. Due to previous felony convictions, including prior convictions for carrying a firearm without a license, unlawfully possessing a firearm, possessing a firearm with a defaced serial number and assault with a dangerous weapon, Diefenbach was prohibited from possessing firearms.

At the time Diefenbach committed the offense, the charge of being a felon in possession provided for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000.

Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Assistant United States Attorney Elianna J. Nuzum of the Major Crimes Unit is prosecuting the case.  

Pina is scheduled to plead guilty on Nov. 21, 2024.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone.  On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.  For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

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

BOSTON – A previously convicted felon was sentenced today in federal court in Boston to unlawfully possessing a Glock pistol and 18 rounds of ammunition.

Michael Whitfield, 43, of Brockton, was sentenced by U.S. District Court Judge Allison D. Burroughs to time served (one day) to be followed by three years of supervised release. The government recommended a sentence of two years in prison to be followed by three years of supervised release. In June 2024, Whitfield pleaded guilty to one count of being a felon in possession of firearms and ammunition. In November 2023, Whitfield was indicted by a federal grand jury.

On March 6, 2023, upon arrival at a motor vehicle accident scene in Brockton, law enforcement observed Whitfield in a vehicle with significant damage, its airbag deployed and a broken passenger door window. There was a strong odor of alcohol coming from inside the vehicle and an empty tequila bottle was observed on the passenger seat floor. A Glock 19X .9mm pistol loaded with 18 rounds was found on the driver’s side floorboard between Whitfield’s legs.

Due to a prior felony conviction, Whitfield is prohibited from possessing firearms and ammunition.

Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Plymouth County District Attorney’s Office, Massachusetts State Police, Brockton Police Department and the Brockton Fire Department. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit prosecuted the case.
 

Raytheon Company (Raytheon) — a subsidiary of Arlington, Virginia-based defense contractor RTX (formerly known as Raytheon Technologies Corporation) — will pay over $950 million to resolve the Justice Department’s investigations into: (i) a major government fraud scheme involving defective pricing on certain government contracts and (ii) violations of the Foreign Corrupt Practices Act (FCPA) and the Arms Export Control Act (AECA) and its implementing regulations, the International Traffic in Arms Regulations (ITAR).

Raytheon will enter into a three-year deferred prosecution agreement (DPA) in connection with a criminal information filed today in the District of Massachusetts charging Raytheon with two counts of major fraud against the United States. As part of that resolution, Raytheon admitted to engaging in two separate schemes to defraud the Department of Defense (DOD) in connection with the provision of defense articles and services, including PATRIOT missile systems and a radar system.

Separately, Raytheon entered into a three-year DPA in connection with a criminal information unsealed today in the Eastern District of New York charging Raytheon with two counts: conspiracy to violate the anti-bribery provision of the FCPA for a scheme to bribe a government official in Qatar and conspiracy to violate the AECA for willfully failing to disclose the bribes in export licensing applications with the Department of State as required by part 130 of ITAR.

Both agreements require that Raytheon retain an independent compliance monitor for three years, enhance its internal compliance program, report evidence of additional misconduct to the Justice Department, and cooperate in any ongoing or future criminal investigations.

Raytheon also reached a separate False Claims Act settlement with the department relating to the defective pricing schemes. The Justice Department’s FCPA and ITAR resolution is coordinated with the Securities and Exchange Commission (SEC).

In addition, the Justice Department’s resolutions ensure that the appropriate federal agencies can proceed with determining whether Raytheon or any other individuals or entities associated with the company should be suspended or debarred as federal contractors. Pursuant to the Federal Acquisition Regulations (FAR), when more than one agency has an interest in an entity’s potential suspension or debarment, the FAR requires that the Interagency Suspension and Debarment Committee (ISDC) identify the lead agency for conducting governmentwide suspension or debarment proceedings. In connection with this resolution, the Justice Department has referred Raytheon’s factual admissions to the appropriate officials within the DOD to initiate the process with the ISDC to identify which federal agency will take the lead in such administrative proceedings, which occur independently of the Justice Department’s criminal and civil resolutions.

“Raytheon engaged in criminal schemes to defraud the U.S. government in connection with contracts for critical military systems and to win business through bribery in Qatar,” said Deputy Assistant Attorney General Kevin Driscoll of the Justice Department’s Criminal Division. “Such corrupt and fraudulent conduct, especially by a publicly traded U.S. defense contractor, erodes public trust and harms the DOD, businesses that play by the rules, and American taxpayers. Today’s resolutions, with criminal and civil recoveries totaling nearly $1 billion, reflect the Criminal Division’s ability to tackle the most significant and complex white-collar cases across multiple subject matters.”

“Government contractors have an obligation to be fully transparent about their cost and pricing data when they seek an award of a sole source contract,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable those contractors that knowingly misrepresent their cost and pricing data or otherwise violate their legal obligations when negotiating or performing contracts with the United States.”

“International corruption in military and defense sales is a violation of our national security laws as well as an anti-bribery offense,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Raytheon willfully failed to disclose bribes made in connection with contracts that required export licenses. Today’s resolution should serve as a stark warning to companies that violate the law when selling sensitive military technology overseas.”

“Over the course of several years, Raytheon employees bribed a high-level Qatari military official to obtain lucrative defense contracts and concealed the bribe payments by falsifying documents to the government, in violation of laws including those designed to protect our national security,” said U.S. Attorney Breon Peace for the Eastern District of New York. “We will continue to pursue justice against corruption, and as this agreement establishes, enforce meaningful consequences, reforms and monitorship to ensure this misconduct is not repeated.”

“Through deliberate and deceptive actions, Raytheon not only defrauded the U.S. government — it compromised the integrity of our defense procurement process,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “Our office is committed to holding accountable those who prioritize profits over national security and clear legal obligations. This case underscores our unwavering commitment to pursuing justice, particularly when taxpayer dollars and DOD operations are at stake. We will continue to work tirelessly with our law enforcement partners to ensure that this type of misconduct is fully exposed and addressed with serious consequences.”

“Investigating procurement fraud impacting DOD contracts is a top priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the DOD Office of Inspector General,” said Inspector General Robert Storch of DOD. “When DOD contractors fail to provide truthful pricing data and overcharge the government, they undermine the integrity of the DOD procurement process and harm critical DOD programs. The DCIS will continue to work with its law enforcement partners and the Justice Department to ensure DOD contractors that engage in defective pricing schemes are held accountable for their actions. The Defense Contract Audit Agency’s (DCAA’s) Operations Investigative Support Division provided valuable expertise during this investigation.”

“The Raytheon Company set out to intentionally defraud the U.S. government,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division (CID). “This agreement highlights the importance of integrity when it comes to government contracting. The FBI, with its law enforcement partners, will continue to investigate these types of crimes that waste taxpayer dollars and prosecute all those who are intent on cooking up these major fraud schemes.”

“Raytheon Corporation engaged in a systematic and deliberate conspiracy that knowingly and willfully violated U.S. fraud and export laws,” said Special Agent in Charge William S. Walker of Homeland Security Investigations (HSI) New York. “Raytheon’s bribery of government officials, specifically those involved in the procurement of U.S. military technology, posed a national security threat to both the United States and its allies. As this investigation reflects, national security continues to be a top priority for HSI New York. The global threats facing the United States have never been greater, and HSI New York is committed to working with our federal and international partners to ensure that sensitive U.S. technologies are not unlawfully and fraudulently acquired.”

The Defective Pricing Case

The Criminal Resolution

According to admissions and court documents filed in the District of Massachusetts, from 2012 through 2013 and again from 2017 through 2018, Raytheon employees provided false and fraudulent information to the DOD during contract negotiations concerning two contracts with the United States for the benefit of a foreign partner — one to purchase PATRIOT missile systems and the other to operate and maintain a radar system. In both instances, Raytheon employees provided false and fraudulent information to DOD in order to mislead DOD into awarding the two contracts at inflated prices. These schemes to defraud caused the DOD to pay Raytheon over $111 million more than Raytheon should have been paid on the contracts.

Under the terms of the DPA, Raytheon will pay a criminal monetary penalty of $146,787,972, pay $111,203,009 in victim compensation, and retain an independent compliance monitor for three years. The Justice Department has agreed to credit the victim compensation amount against restitution Raytheon pays to the Civil Division in its related, parallel False Claims Act proceeding.

Pursuant to the DPA, in addition to the independent compliance monitor, Raytheon and RTX have agreed to continue to implement a compliance and ethics program at Raytheon designed to prevent and detect fraudulent conduct throughout its operations. Raytheon and RTX have also agreed to continue to cooperate with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts in any ongoing or future criminal investigations.

The Justice Department reached this resolution with Raytheon based on a number of factors, including, among others, the nature and seriousness of the offense conduct, which involved two separate schemes to defraud the U.S. government. Raytheon received credit for its affirmative acceptance of responsibility and cooperation with the department’s investigation, which included (i) facilitating interviews with current and former employees; (ii) providing information obtained through its internal investigation, which allowed the department to preserve and obtain evidence as part of its own independent investigation; (iii) making detailed presentations to the department; (iv) proactively identifying key documents in the voluminous materials collected and produced; (v) engaging experts to conduct financial analyses; and (vi) demonstrating its willingness to disclose all relevant facts by analyzing whether the crime-fraud exception applied to certain potentially privileged documents and releasing the documents that it deemed fell within the exception. However, in the initial phases of the investigation prior to March 2022, Raytheon’s cooperation was limited by unreasonably slow document productions.

Raytheon also engaged in timely remedial measures, including (i) terminating certain employees who were responsible for the misconduct; (ii) establishing a broad defective pricing awareness campaign; (iii) developing and implementing policies, procedures, and controls relating to defective pricing compliance; and (iv) engaging additional resources with appropriate expertise to evaluate and test the new policies, procedures, and controls relating to defective pricing compliance.

In light of these considerations, as well as Raytheon’s prior history, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 25% reduction off the 10th percentile above the low end of the otherwise applicable guidelines fine range.

The False Claims Act Settlement

Raytheon also entered into a civil False Claims Act settlement to resolve allegations that it provided untruthful certified cost or pricing data when negotiating prices with the DOD for numerous government contracts and double billed on a weapons maintenance contract.

Under the False Claims Act settlement, which is the second largest government procurement fraud recovery under the Act, Raytheon will pay $428 million for knowingly failing to provide truthful certified cost and pricing data during negotiations on numerous government contracts between 2009 and 2020, in violation of the Truth in Negotiations Act (TINA). Congress enacted TINA in 1962 to help level the playing field in sole source contracts — where there is no price competition — by making sure that government negotiators have access to the cost or pricing data that the offeror used when developing its proposal. As part of the settlement, Raytheon admitted that it failed to disclose cost or pricing data, as required by TINA, regarding its labor and material costs to supply weapon systems to DOD.

Raytheon also admitted that by misrepresenting its costs during contract negotiations it overcharged the United States on these contracts and received profits in excess of the negotiated profit rates. Further, Raytheon admitted that it failed to disclose truthful cost or pricing data on a contract to staff a radar station. Raytheon also admitted that it billed the same costs twice on a DOD contract.

As part of the civil resolution, Raytheon received credit under the Justice Department’s guidelines for taking disclosure, cooperation, and remediation into account in False Claims Act cases for cooperation provided by RTX. That cooperation included conducting and disclosing the results of an internal investigation, disclosing relevant facts and material not known to the government but relevant to its investigation, providing the department with inculpatory evidence, conducting a damages analysis, identifying and separating individuals responsible for or involved in the misconduct, admitting liability and accepting responsibility for the misconduct, and improving its compliance programs.

“The Defense Department greatly appreciates the Justice Department’s outstanding efforts culminating in this significant recovery,” said Principal Director of Defense Pricing, Contracting, and Acquisition Policy John Tenaglia of DOD. “The price we pay for equipment and services absolutely matters. The more we pay, the less combat capability we can deliver for our nation’s warfighters. This Justice Department recovery both restores funding that will be used to acquire more capability while also serving as a strong deterrent to all companies that might seek to deny DOD contracting officers the factual information they require to negotiate contracts at fair and reasonable prices.”

The civil settlement includes the resolution of a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit was filed by Karen Atesoglu, a former Raytheon employee, and is captioned United States ex rel. Atesoglu v. Raytheon Technologies Corporation, 21-CV-10690-PBS (DMA). Ms. Atesoglu will receive $4.2 million as her share of the settlement.

The FCPA Case

According to admissions and court documents filed in the Eastern District of New York, between approximately 2012 and 2016, Raytheon, through certain of its employees and agents, engaged in a scheme to bribe a high-level official at the Qatar Emiri Air Force (QEAF), a branch of Qatar’s Armed Forces (QAF) that was primarily responsible for the conduct of air warfare, in order to assist Raytheon in obtaining and retaining business from the QEAF and QAF. Raytheon entered into and made payments on sham subcontracts for air defense operations-related studies in order to corruptly obtain the QEAF official’s assistance in securing certain air defense contracts. Raytheon also entered into a teaming agreement with a Qatari entity in order to corruptly obtain the QEAF official’s assistance in directly awarding a potential contract to Raytheon to build a joint operations center that would interface with Qatar’s several military branches.

Under the terms of the DPA, Raytheon will pay a criminal monetary penalty of $230.4 million, pay forfeiture of $36,696,068, and retain an independent compliance monitor for three years. In addition, as part of the resolution of the SEC’s parallel investigation, Raytheon will pay approximately $49.1 million in disgorgement and prejudgment interest and a civil penalty of $75 million ($22.5 million of which will be credited against the criminal monetary penalty). The Justice Department has agreed to credit approximately $7.4 million of the disgorgement Raytheon pays to the SEC against the criminal forfeiture.

As part of the DPA, Raytheon and RTX have agreed to continue to cooperate with the Criminal Division’s Fraud Section, the National Security Division’s Counterintelligence and Export Control Section, and the U.S. Attorney’s Office for the Eastern District of New York in any ongoing or future criminal investigations. In addition to the independent compliance monitor, Raytheon and RTX have agreed to continue to enhance Raytheon’s compliance program.

The Justice Department reached this resolution with Raytheon based on a number of factors, including, among others, the nature and seriousness of the offense. Raytheon received credit for its affirmative acceptance of responsibility and cooperation with the department’s investigation, which included (i) providing information obtained through its internal investigation, which allowed the government to preserve and obtain evidence as part of its own independent investigation; (ii) facilitating interviews with current and former employees; (iii) making detailed factual presentations to the government; (iv) proactively disclosing certain evidence of which the government was previously unaware and identifying key documents in materials it produced; and (v) engaging experts to conduct financial analyses. However, in the initial phases of the investigation, prior to in or around 2022, Raytheon was at times slow to respond to the government’s requests and failed to provide relevant information in its possession.

Raytheon also engaged in timely remedial measures, including (i) recalibrating third party review and approval processes to lower company risk tolerance; (ii) implementing enhanced controls over sales intermediary payments; (iii) hiring empowered subject matter experts to oversee its anti-corruption compliance program and third party management; (iv) implementing data analytics to improve third party monitoring; and (v) developing a multipronged communications strategy to enhance ethics and compliance training and communications.

In light of these considerations, as well as Raytheon’s prior history, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 20% reduction off the 20th percentile above the low end of the otherwise applicable guidelines fine range.

The ITAR Case

According to admissions and court documents filed in the Eastern District of New York, between approximately 2012 and 2016, Raytheon, through certain of its employees and agents, engaged in a scheme to willfully violate the AECA and ITAR Part 130 by failing to disclose to the State Department, Directorate of Defense Trade Controls, fees and commissions paid in connection with two Qatar-related contracts — specifically, the bribes Raytheon paid to the high-level QEAF official through sham subcontracts.

The Justice Department reached this resolution with Raytheon based on a number of factors, including, among others, the nature and seriousness of the offense. Raytheon received credit for its cooperation with the department’s investigation, which included (i) gathering evidence of interest to the government and proactively identifying key documents related to willful ITAR-related misconduct; (ii) making factual presentations concerning the ITAR-related misconduct; and (iii) facilitating witness interviews and expediting the government’s ability to meet with witnesses. Raytheon did not receive full credit for its cooperation because in the initial phase of the investigation, before the National Security Division joined the investigation, it failed to provide information relevant to the ITAR violations beyond what was requested in the FCPA investigation.

Raytheon also received credit for remediation, which included, in addition to the remediation described above in connection with the FCPA case, (i) hiring additional empowered subject matter experts in legal and compliance; (ii) developing a multipronged communications strategy to enhance ethics and compliance training and communications; and (iii) making enhancements to its ITAR-related compliance program.

In light of these considerations, the ITAR-related financial penalty of $21,904,850 includes a cooperation and remediation credit of 20% off the otherwise applicable penalty.

******

DCIS, Army Criminal Investigation Division, FBI, and Air Force Office of Special Investigations are investigating the criminal defective pricing case. Senior Auditor Glen Hughes from DCAA’s Office of Investigative Support Division assisted in the civil investigation of the False Claims Act Matter. HSI and the FBI’s International Corruption Unit are investigating the FCPA and ITAR case. The Justice Department’s Office of International Affairs assisted in the investigation for the FCPA and ITAR case.

Assistant Chief Kyle Hankey, Acting Assistant Chief Laura Connelly, and Trial Attorney Tamara Livshiz of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Brian LaMacchia and Benjamin Saltzman for the District of Massachusetts are prosecuting the criminal defective pricing case.

Attorneys Art J. Coulter, Patrick Klein, and Jared S. Wiesner of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Brian LaMacchia for the District of Massachusetts are prosecuting the False Claims Act matter.

Acting Assistant Chief Katherine Raut and Trial Attorney Elina A. Rubin-Smith of the Criminal Division’s Fraud Section, Trial Attorneys Christine Bonomo and Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section, and Assistant U.S. Attorneys David Pitluck, Hiral Mehta, and Jessica Weigel for the Eastern District of New York are prosecuting the FCPA and ITAR case.

The Justice Department also expresses its appreciation for the assistance provided by the State Department and the legal offices of the Army, Air Force, Defense Logistics Agency, Defense Contract Management Agency, and Department of Navy.

The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.

View the Executed Civil False Claims Act Settlement Agreement here.

BOSTON – Raytheon Company (Raytheon), a subsidiary of RTX (formerly Raytheon Technologies Corporation) in Arlington, Va., has agreed to pay over $950 million to resolve the government’s investigations into a major government fraud scheme involving defective pricing on certain government contracts and violations of the Foreign Corrupt Practices Act (FCPA) and the Arms Export Control Act (AECA) and its implementing regulations, the International Traffic in Arms Regulations (ITAR).

The U.S. Attorney’s Office in Massachusetts announced today that Raytheon will pay over $574 million to resolve criminal civil liability for overcharging government contracts. Raytheon has entered into a three-year deferred prosecution agreement (DPA) in connection with a criminal Information filed today in the District of Massachusetts charging Raytheon with two counts of major fraud against the United States. Raytheon has agreed to pay $147 million to resolve the criminal allegations. Today’s settlement with the District of Massachusetts also resolves civil allegations that Raytheon provided untruthful certified cost or pricing data when negotiating prices with the DOD for numerous government contracts and double billed DOD on a weapons maintenance contract. Raytheon has agreed to pay $428 million, the second largest government procurement fraud recovery under the False Claims Act, to resolve the civil allegations. Under both resolutions, Raytheon will pay a total of $574.7 million. Under the terms of the DPA, Raytheon will pay $146.7 million in a criminal monetary penalty, $111.2 million in victim compensation and retain an independent compliance monitor for three years.

Separately, Raytheon entered into a three-year DPA in connection with a criminal information unsealed today in the Eastern District of New York charging Raytheon with two counts: conspiracy to violate the anti-bribery provision of the FCPA for a scheme to bribe a government official in Qatar and conspiracy to violate the AECA for willfully failing to disclose the bribes in export licensing applications with the Department of State as required by Part 130 of ITAR.

The agreements in Boston the District of Massachusetts and the Eastern District of New York require that Raytheon retain an independent compliance monitor for three years, enhance its internal compliance program, report evidence of additional misconduct to the Justice Department, and cooperate in any ongoing or future criminal investigations.  

Raytheon also reached a separate False Claims Act settlement with the department relating to the defective pricing schemes. The Justice Department’s FCPA and ITAR resolution is coordinated with the Securities and Exchange Commission (SEC).

In addition, the Justice Department’s resolutions ensure that the appropriate federal agencies can proceed with determining whether Raytheon or any other individuals or entities associated with the company should be suspended or debarred as federal contractors. Pursuant to the Federal Acquisition Regulations (FAR), when more than one agency has an interest in an entity’s potential suspension or debarment, the FAR requires that the Interagency Suspension and Debarment Committee (ISDC) identify the lead agency for conducting governmentwide suspension or debarment proceedings. In connection with this resolution, the Justice Department has referred Raytheon’s factual admissions to the appropriate officials within the DOD to initiate the process with the ISDC to identify which federal agency will take the lead in such administrative proceedings, which occur independently of the Justice Department’s criminal and civil resolutions.

“Through deliberate and deceptive actions, Raytheon not only defrauded the U.S. government – it compromised the integrity of our defense procurement process,” said Acting United States Attorney Joshua S. Levy. “Our office is committed to holding accountable those who prioritize profits over national security and clear legal obligations. This case underscores our unwavering commitment to pursuing justice, particularly when taxpayer dollars and DOD operations are at stake. We will continue to work tirelessly with our law enforcement partners to ensure that this type of misconduct is fully exposed and addressed with serious consequences.”

“Raytheon engaged in criminal schemes to defraud the U.S. government in connection with contracts for critical military systems and to win business through bribery in Qatar,” said Deputy Assistant Attorney General Kevin Driscoll of the Justice Department’s Criminal Division. “Such corrupt and fraudulent conduct, especially by a publicly traded U.S. defense contractor, erodes public trust and harms the Department of Defense, businesses that play by the rules, and American taxpayers. Today’s resolutions, with criminal and civil penalties totaling nearly $1 billion, reflect the Criminal Division’s ability to tackle the most significant and complex white-collar cases across multiple subject matters.”

“Government contractors have an obligation to be fully transparent about their cost and pricing data when they seek an award of a sole source contract,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department will use all available tools to hold accountable contractors that knowingly provide inflated pricing information or otherwise violate their legal obligations when negotiating or performing contracts with the United States.”

“Investigating procurement fraud impacting DOD contracts is a top priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the DOD Office of Inspector General,” said Inspector General Robert Storch for the Department of Defense. “When DOD contractors fail to provide truthful pricing data and overcharge the government, they undermine the integrity of the DOD procurement process and harm critical DOD programs. The DCIS will continue to work with its law enforcement partners and the Department of Justice to ensure DOD contractors that engage in defective pricing schemes are held accountable for their actions. The Defense Contract Audit Agency's Operations Investigative Support Division provided valuable expertise during this investigation.”

“We rely on private contractors to help build our unparalleled defense technology, not to pull the wool over our eyes by convincing the government to shell out tens of millions more than what their technology is actually worth,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation (FBI) Boston Division. “Today’s settlement holds Raytheon both criminally and financially responsible for doing just that, using fraud and deceit to gouge American taxpayers to boost its company’s bottom line. The FBI and our partners will not hesitate to investigate any entity that sets out to undermine the principles of fair and free competition to defraud the federal government and waste precious tax dollars.”

“This recovery exemplifies the commitment of the Department of the Army Criminal Investigation Division to ensure that contracts supporting our warfighters are executed effectively and fairly, guaranteeing our armed forces remain unmatched in capability and lethality,” said Special Agent-in-Charge Keith K. Kelly, Department of the Army Criminal Investigation Division’s (CID) Fraud Field Office. “Army CID applauds the efforts of our partners in this investigation and recovery. We will continue to work tirelessly to defend our defense procurement enterprise against any party which would seek financial advantage to the detriment of our men and women in uniform.”

“Any attempt to defraud the government also degrades our military’s ability to invest in the capabilities needed to protect our nation,” said Special Agent Jason Hein of the Air Force Office of Special Investigations (AFOSI) Director of Procurement Fraud. “The AFOSI procurement fraud team is committed to working with our partners to protect the procurement process and the government funds entrusted to the Department of the Air Force.”

According to admissions and court documents filed in the District of Massachusetts, Raytheon employees provided false and misleading information to the DOD during contract negotiations concerning two contracts with the United States for the benefit of a foreign partner, one to purchase PATRIOT missile systems and the other to operate and maintain a radar station. In both instances, Raytheon employees provided false and deceptive information to DOD in order to mislead DOD into awarding the two contracts at inflated prices. These schemes to defraud caused the DOD to pay Raytheon $111.2 million more than Raytheon should have been paid on the contracts.

Raytheon cooperated with the investigation and engaged in remedial measures, including, terminating employees who remained at the company that were responsible for the misconduct; establishing a broad defective pricing awareness campaign; developing and implementing policies, procedures and controls relating to defective pricing compliance; and engaging additional resources with appropriate expertise to evaluate and test the new policies, procedures and controls relating to defective pricing compliance.  

Pursuant to the DPA, Raytheon has also agreed to retain an independent compliance monitor for a period of three years, and Raytheon and RTX have agreed to continue to implement a compliance and ethics program at Raytheon designed to prevent and detect fraudulent conduct throughout its operations. Raytheon and RTX also agreed to continue to cooperate with the Department of Justice in any ongoing or future criminal investigations by the Criminal Division’s Fraud Section or the U.S. Attorney’s Office for the District of Massachusetts.

Under the False Claims Act settlement Raytheon will pay $428 million for knowingly failing to provide truthful certified cost and pricing data during negotiations on numerous government contracts between 2009 and 2020, in violation of the Truth in Negotiations Act (TINA). Congress enacted TINA in 1962 to help level the playing field in sole source contracts, where there is no price competition, by making sure that government negotiators have access to the cost or pricing data that the offeror used when developing its proposal. As part of the settlement, Raytheon admitted that it failed to disclose cost or pricing data, as required by TINA, regarding its labor and material costs to supply weapons systems to DOD, and that it failed to disclose cost or pricing data, as required by TINA, regarding its labor costs to staff a radar station. As a result, Raytheon overcharged the United States and received profits in excess of the negotiated profit rates. Raytheon also admitted it billed the same costs twice on a maintenance contract for the DOD.

The DOD’s Principal Director of Defense Pricing, Contracting, and Acquisition Policy, Mr. John Tenaglia said, “The Defense Department greatly appreciates DOJ’s outstanding efforts culminating in this significant recovery. The price we pay for equipment and services absolutely matters. The more we pay, the less combat capability we can deliver for our nation’s warfighters. This DOJ recovery both restores funding that will be used to acquire more capability while also serving as a strong deterrent to all companies that might seek to deny DOD contracting officers with factual information they require to negotiate contracts at fair and reasonable prices.”

“During the course of a Truth in Negotiations audit, DCAA’s auditors found indicators of suspected irregular conduct and elevated these concerns to the Department of Defense Inspector General and the Department of Justice. DCAA’s Investigative Support team assisted on the case and provided valuable insight into the calculations of the damages to the Government.  Preventing fraud and ensuring a fair and reasonable price for products is everyone’s job and DCAA is a valuable member of the team required to investigate and prosecute those who seek to defraud the government,” said Terri L. Dilly, Director, Defense Contract Audit Agency (DCAA).

The civil settlement includes a resolution of a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the Government’s recovery.  The qui tam lawsuit was filed by a former Raytheon employee, and is captioned United States ex rel. Atesoglu v. v. Raytheon Technologies Corporation, 21-CV-10690-PBS (D. Mass.). The whistleblower will receive $4.2 million as her share of the settlement.

The criminal case is being prosecuted by Assistant U.S. Attorneys Brian LaMacchia and Benjamin Saltzman of the District of Massachusetts and Assistant Chief Kyle Hankey, Acting Assistant Chief Laura Connelly and Trial Attorney Tamara Livshiz of the Criminal Division’s Fraud Section. The case was investigated by DCIS, Army-CID, FBI and Air Force OSI.

The civil investigation was handled by Assistant U.S. Attorney Brian LaMacchia of the District of Massachusetts, along with Trial Attorneys Art J. Coulter, Patrick Klein and Jared S. Wiesner of the Civil Division’s Commercial Litigation Branch, Fraud Section. 

BOSTON – A member of a nationwide drug trafficking ring was sentenced yesterday in federal court in Boston for drug trafficking charges. During the investigation, over 160 pounds of pure methamphetamine, as well as an AK-47, a Glock with no serial number, two loaded Smith & Wesson handguns and over 4,200 rounds of ammunition were seized. An illegal marijuana grow operation with hundreds of marijuana plants was also dismantled.

Emil Dzabiev, 44, of Scarborough, Maine, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 121 months in prison followed by three years of supervised release. In June 2024, Dzabiev pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute methamphetamine. Dzabiev was arrested and charged along with seven others in July 2021 and was subsequently charged in a superseding indictment that added an additional three defendants in September 2021.

In late 2020, Reshat Alkayisi was identified as a large-scale methamphetamine trafficker, who distributed multi-pound quantities to customers throughout the New England area. Dzabiev was identified as one of Alkayisi’s regular customers who routinely purchased methamphetamine and redistributed it in Maine. In May 2021, Dzabiev was stopped after a meeting with Alkayisi and found in possession of approximately 455 grams of 100% pure methamphetamine in his vehicle.

Alkayisi pleaded guilty in April 2024 and in September 2024 sentenced to 23 years in prison to be followed by five years of supervised release. Dzabiev is the 8th defendant to be sentenced in the case. All remaining defendants have pleaded guilty and are awaiting sentencing.

Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Valuable assistance was provided by the Massachusetts Department of Correction; Norfolk County Sherriff’s Office; and the Concord, Hudson, Peabody, Reading, Watertown and Waltham Police Departments. Assistance was also provided by the Massachusetts, Rhode Island, New Hampshire and Maine State Police. Assistant U.S. Attorneys Alathea Porter and Katherine Ferguson of the Criminal Division are prosecuting the case.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
 

BOSTON – A Stoughton man, previously convicted of multiple counts of sex trafficking, pleaded guilty today in federal court in Boston to sex trafficking multiple adult women.

Marvin Pompilus, 39, pleaded guilty to four counts of conspiracy to commit sex trafficking by force, fraud, or coercion and one count of possession with intent to distribute fentanyl and cocaine. Pompilus was previously arrested and charged in in November 2023, and indicted by a federal grand jury in January 2024. U.S. District Court Judge William G. Young scheduled sentencing for Jan. 23, 2025.

In February 2018, Pompilus was convicted in Suffolk Superior Court of multiple counts of trafficking a person for sexual servitude and deriving support for prostitution. He was sentenced to six years in state prison and was released in October 2021.

“Marvin Pompilus targeted and brutalized his victims, and this was promptly after he was released from jail following his conviction on similar state charges,” said Acting United States Attorney Joshua S. Levy. “These crimes are a violation of human dignity and human rights. Our office, along with our federal, state and local partners, are dedicating substantial resources to both protecting victims of trafficking and holding defendants accountable by prosecuting them to the fullest extent of the law. This is especially true for repeat offenders like Mr. Pompilus.”

“This defendant callously picked up right where he left off when he was released from state prison, believing that he could profit by peddling drugs and misery to people suffering with substance abuse issues,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendant specifically targeted victims who were struggling with addiction to opioids and cocaine, coerced them into sex trafficking and cruelly exploited them because of their vulnerability. The Justice Department will continue to investigate and prosecute human traffickers who exploit for their own personal gain the most vulnerable members of society, such as those experiencing substance abuse disorders.”

“Marvin Pompilus admitted today that after being released from state prison for sex trafficking, he started doing it again, targeting and exploiting four vulnerable women using violence and threats to force them to engage in commercial sex. What he did is unconscionable, and the harm he’s inflicted on these women is immeasurable,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation Boston Division. “The FBI will do everything in its power to protect trafficking victims from further harm and see the predators who so viciously abuse them brought to justice.”

Following his release from state custody in October  2021, Pompilus conspired to exploit and recruit multiple women into the commercial sex trade, using a combination of physical violence, sexual violence, threats of violence, verbal abuse and withholding of controlled substances from drug dependent victims to coerce and/or force them to engage in commercial sex acts. He then collected all of the proceeds.  Pompilus required his victims to check in with him, forbade them from interacting with other men, and precluded them from obtaining drugs from anyone other than him. If one of the victims attempted to keep any of the proceeds from commercial sex or attempted to refuse to see a sex buyer, Pompilus would become physically violent, at times striking the victim in the face and kicking them. Pompilus would also engage in other forms of abuse as well such as using degrading names toward his victims, spitting on them, and throwing drinks on them, as well as isolating them from others.

If you or someone you know may be impacted or experiencing commercial sex trafficking, please contact USAMA.VictimAssistance@usdoj.gov.

The charge of conspiracy to sex traffic by force, fraud, or coercion provides for a sentence of up to life in prison, at least five years of supervised release and a fine of up to $250,000. Possession with intent to distribute fentanyl and cocaine provides for a sentence of up to 20 years in prison, at least two years of supervised release and a fine of up to $1,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting U.S. Attorney Levy; AAG Clarke; and FBI SAC Cohen made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Boston and Randolph Police Departments. Assistant U.S. Attorney Elizabeth Riley, Chief of the Human Trafficking & Civil Rights Unit and Assistant U.S. Attorney Meghan Tokash of the Justice Department’s Human Trafficking Protection Unit are prosecuting the case.
 

A Massachusetts man pleaded guilty today to four counts of conspiracy to commit sex trafficking by force, fraud or coercion and one count of possession with intent to distribute cocaine and fentanyl.

According to court documents, Marvin Pompilus, 39, of Stoughton, conspired to use force, threats of force, fraud and coercion to compel three adult victims to engage in commercial sex acts in the Randolph, Massachusetts, area between October 2021 and October 2022. He also conspired to compel another other adult victim to engage in commercial sex acts in September 2022. In addition, Pompilus pleaded guilty to possessing cocaine and fentanyl with the intent to distribute in September 2022. Pompilus was previously arrested and charged in November 2023. He has remained in federal custody.

According to court documents, Pompilus knew that the victims abused opioids and cocaine, and he specifically targeted the victims because of this vulnerability. For example, Pompilus promised the victims cocaine, heroin and fentanyl in exchange for engaging in commercial sex, with all the profits of the sex acts going directly to Pompilus. Pompilus also possessed distribution quantities of cocaine and fentanyl when Randolph Police Department conducted a car stop in September 2022 and found these drugs inside the crotch of his pants.

Court documents also demonstrate that Pompilus was previously convicted in Suffolk Superior Court in February 2018 of multiple counts of trafficking a person for sexual servitude and deriving support for prostitution. Pompilus was sentenced to six years in state prison and he was released in October 2021. Within days of his release, Pompilus began the sex trafficking conspiracy to which he pleaded guilty today.

“This defendant callously picked up right where he left off when he was released from state prison, believing that he could profit by peddling drugs and misery to people suffering with substance abuse issues,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendant specifically targeted victims who were struggling with addiction to opioids and cocaine, coerced them into sex trafficking and cruelly exploited them because of their vulnerability. The Justice Department will continue to investigate and prosecute human traffickers who exploit for their own personal gain the most vulnerable members of society, such as those experiencing substance abuse disorders.”

“Marvin Pompilus targeted and brutalized his victims, and this was promptly after he was released from jail following his conviction on similar state charges,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “These crimes are a violation of human dignity and human rights. Our office, along with our federal, state and local partners, are dedicating substantial resources to both protecting victims of trafficking and holding defendants accountable by prosecuting them to the fullest extent of the law. This is especially true for repeat offenders like Mr. Pompilus.”

“Marvin Pompilus admitted today that as soon as he got out of state prison for sex trafficking, he started doing it again, targeting and exploiting four vulnerable women using violence and threats to force them to engage in commercial sex,” said Special Agent in Charge Jodi Cohen of the FBI Boston Field Office. “What he did is unconscionable, and the harm he’s inflicted on these women is immeasurable. The FBI will do everything in its power to protect trafficking victims from further harm and see the predators who so viciously abuse them brought to justice.”

A sentencing hearing is scheduled for Jan. 23, 2025. According to the plea agreement, Pompilus faces a minimum penalty of 12 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Boston Field Office, Massachusetts State Police and Randolph Police Department investigated the case. Massachusetts State Police Troopers Ashleigh Moore and John Hagerty are especially commended for identifying Pompilus and detecting his trafficking scheme during a routine car stop in the summer of 2021.

Chief of the Civil Rights and Human Trafficking Unit Liz Riley-Cunniffe for the District of Massachusetts and Trial Attorney Meghan Tokash of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.

Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.

BOSTON- La Autoridad de Vivienda de Chicopee (CHA) y su ex Director Ejecutivo, han resuelto una demanda que alegaba que la CHA y su Director llevaban a cabo un modelo de prácticas de discriminación contra inquilinos de la CHA basadas en su raza, nacionalidad de origen o discapacidad.

La Orden de Consentimiento requiere que la CHA pague $435,000 para compensar a las personas perjudicadas por sus prácticas discriminatorias, y una multa civil de $25,000 a los Estados Unidos. El acuerdo también requiere que la CHA realice amplios cambios para proteger los derechos de los inquilinos con discapacidades, incluida la contratación de un Coordinador de Derechos por Incapacidad, la implementación de nuevas medidas para manejar las solicitudes de los inquilinos para alojamiento y mudanzas y la construcción de nueve nuevas unidades de vivienda para personas con discapacidades. La Orden de Consentimiento también prohíbe la discriminación en el futuro y requiere que la CHA implemente nuevos procedimientos para quejas por discriminación y la capacitación de los empleados.

De conformidad con el acuerdo, la Directora de la CHA, Monica Blazic, renunciará a su cargo en la CHA al final del 2024 y no tendrá ninguna vinculación adicional con la CHA. El asunto surgió de una investigación del Departamento de Vivienda y Desarrollo Urbano (HUD), que, en Marzo del 2021 halló que la CHA y Blazic violaron la Ley de Vivienda Justa al no permitir que una persona con enfermedad renal en etapa terminal se transfiriera a una unidad de un cuarto  en un primer piso o con acceso a un ascensor, para que pudiese recibir tratamiento diario de diálisis en su hogar. Los Estados Unidos inicialmente presentaron una demanda contra los acusados en Abril del 2021 por no proveer alojamiento razonable. En Diciembre del 2021, los Estados Unidos modificaro su demanda, de modo que incluyese reclamos adicionales de que los demandados discriminaban a inquilinos negros e hispanos, al realizar declaraciones discriminatorias a inquilinos negros e hispanos acerca de ellos, incluyendo insultos raciales y lenguaje despectivo.

“Es completamente inaceptable que los funcionarios de vivienda pública discriminen por motivos de raza y discapacidad. Este acuerdo compensará a los inquilinos que fueron perjudicados por las prácticas ilegales de la CHA y garantizará que la autoridad de vivienda avance con un nuevo liderazgo y nuevos sistemas para proteger a sus inquilinos de la discriminación en el futuro”, dijo el fiscal federal interino Joshua S. Levy. "Al crear nuevas unidades de vivienda accesibles, la CHA también podrá satisfacer mejor las necesidades de la comunidad".

"La discriminación racial y de origen nacional, y la discriminación contra personas que viven con discapacidades, son ilegales y no se permitirán en el mercado inmobiliario de nuestro país", dijo la subsecretaria adjunta principal Diane M. Shelley de la Oficina del Departamento de Vivienda y Desarrollo Urbano (HUD) de Vivienda Justa e Igualdad de Oportunidades. "La HUD aplaude al Departamento de Justicia por llegar a este acuerdo y continuará apoyando sus esfuerzos para responsabilizar a los proveedores de vivienda cuando no cumplan con sus obligaciones conforme a las leyes de vivienda del país".

Los inquilinos de CHA pueden ser elegibles para participar del presupuesto del acuerdo si previamente solicitaron transferir apartamentos para adaptarse a una discapacidad, y la CHA retrasó o negó indebidamente la transferencia. Se recomienda a esos inquilinos que se comuniquen con la Oficina del Fiscal Federal llamando al 617-275-8756 o enviando un correo electrónico a USAMA.CivilRights@usdoj.gov.

El fiscal federal interino Levy; La Fiscal General Adjunta Kristen Clarke; y la subsecretaria adjunta principal de la HUD, Shelley, hicieron el anuncio hoy. Los fiscales federales adjuntos Hillary Harnett, Anuj Khetarpal, Gregory Dorchak, Michelle Leung y Jennifer Serafyn de la Unidad de Derechos Civiles se encargaron del asunto. La resolución de este asunto fue el resultado de un esfuerzo coordinado entre la Fiscalía Federal para el Distrito de Massachusetts y el Departamento de Vivienda y Desarrollo Urbano de los Estados Unidos.

La Unidad de Derechos Civiles de la Fiscalía Federal se estableció en 2015 con la misión de mejorar la aplicación federal de los derechos civiles. Para obtener más información sobre los esfuerzos de derechos civiles de la Oficina, visite www.justice.gov/usao-ma/civil-rights.
 

BOSTON – A Haverhill man has been sentenced in federal court in Boston for his role in a North Shore-based drug trafficking organization (DTO) that allegedly distributed tens of thousands of counterfeit prescription pills containing fentanyl and methamphetamine.

David Delauri, 32, was sentenced by U.S. District Court Chief Judge Dennis F. Saylor IV to 102 months in prison to be followed by four years of supervised release. In July 2024 Delauri pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute controlled substances; aiding and abetting; one count of possession with intent to distribute more than 50 grams of a mixture or substance containing a detectable amount of methamphetamine; and aiding and abetting.

According to court documents, the DTO distributed counterfeit oxycodone pills containing fentanyl and counterfeit Adderall pills containing methamphetamine, among other things, to various individuals in the Lynn area.

On May 10, 2022, Delauri allegedly arranged to acquire nearly 600 counterfeit Adderall pills containing methamphetamine from co-defendant Lawrence Michael Nagle. Delauri immediately distributed the pills to co-defendant Savannah Bartone. Bartone was subsequently stopped by police, who seized the pills.

Bartone pleaded guilty in November 2023 and is pending sentencing. Lawrence Michael Nagle has pleaded not guilty and is scheduled for trial on Jan. 6, 2024.

Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Geoffrey Noble, Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Beverly, Everett, Peabody, Revere, Salem, Saugus and Swampscott Police Departments. Assistant U.S. Attorney Evan D. Panich of the Narcotics & Money Laundering Unit is prosecuting the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.

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

BOSTON – The former bookkeeper of a Falmouth flooring company pleaded guilty to embezzling more than $1.3 million from her employer.  

Susan Figuerido, 73, of Falmouth, pleaded guilty to wire fraud and filing a false tax return. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 15, 2025.

Between June 2015 and February 2023, Figuerido embezzled more than $1.3 million from her employer by writing checks to herself drawn on her employer’s bank account. To conceal her scheme, Figuerido did not record the checks that she wrote to herself in her employer’s accounting system. Figuerido did not report or include the funds that she embezzled on her federal income tax filings, resulting in a tax loss of approximately $353,000.  

The charge of wire fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting U.S. Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Harry T. Chavis Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The Falmouth Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
 

BOSTON – A Dominican man has been indicted by a federal grand jury in Boston for illegally reentering the United States after deportation.    

Jose De La Rosa Rosario, 50, was indicted on one count of unlawful reentry of a deported alien.  

De La Rosa was remanded into federal custody after previously being arrested by police on Sept. 3, 2024, and then detained by Immigration and Customs Enforcement on Sept. 16, 2024.  He will appear in federal court in Boston on a later date.

According to the indictment, De La Rosa was deported from the United States on July 3, 2018. It is alleged that sometime after his July 2018 removal, De La Rosa illegally reentered the United States without permission.

The charge of unlawful reentry of a deported alien provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Special Assistant U.S. Attorney James J. Nagelberg of the 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 – The Chicopee Housing Authority (CHA) and its former Executive Director, have resolved a lawsuit alleging that the CHA and its Director engaged in a pattern or practice of discrimination against CHA tenants based on race, national origin, or disability.

The Consent Order requires CHA to pay $435,000 to compensate individuals harmed by its discriminatory practices and a $25,000 civil penalty to the United States. The settlement also requires CHA to make broad changes to protect the rights of tenants with disabilities, including hiring a Disability Rights Coordinator, implementing new policies for handling tenant requests for reasonable accommodations and transfers and building nine new accessible housing units for persons with disabilities. The Consent Order also bars future discrimination and requires CHA to implement new discrimination complaint procedures and employee training.

Pursuant to the agreement, CHA Director, Monica Blazic will resign from her role at CHA by the end of 2024 and will not have further involvement with CHA.

The matter arose from an investigation by the U.S. Department of Housing and Urban Development (HUD), which, in March 2021, found that CHA and Blazic violated the Fair Housing Act by failing to allow a tenant with end stage renal disease to transfer to a first floor or elevator accessible one-bedroom unit needed for her to receive daily in-home dialysis. The United States initially filed suit against the defendants in April 2021 for failing to make reasonable accommodations. In December 2021, the United States amended its lawsuit to include additional claims that the defendants had engaged in a pattern of disability discrimination. Specifically, the amended complaint alleged that CHA, for years, had systematically postponed requests for reasonable accommodations made by tenants with disabilities who were seeking to transfer apartments for medical reasons. Additionally, the United States alleged that the defendants discriminated against Black and Hispanic tenants when Blazic made discriminatory statements about and to Black and Hispanic tenants, including using racial slurs and other derogatory language.

“It is completely unacceptable for public housing officials to discriminate based on race and disability. This settlement will compensate the tenants who were harmed by CHA’s illegal practices and ensure that the housing authority will move forward with new leadership and new systems in place to protect its tenants from discrimination in the future,” said Acting United States Attorney Joshua S. Levy. “By creating new accessible housing units, CHA will also be better able to meet the needs of the community.”

“Racial and national origin discrimination, and discrimination against persons living with disabilities, are unlawful and will not be allowed in our country’s housing market,” said Principal Deputy Assistant Secretary Diane M. Shelley of the Department of Housing and Urban Development’s (HUD) Office of Fair Housing and Equal Opportunity. “HUD applauds the Justice Department for reaching this settlement and will continue supporting its efforts to hold housing providers accountable when they fail to meet their obligations under the nation’s housing laws.”

CHA tenants may be eligible to participate in the settlement fund if they previously requested to transfer apartments to accommodate a disability, and the transfer was improperly delayed or denied by CHA. Those tenants are encouraged to contact the U.S. Attorney’s Office by calling 617-275-8756 or by emailing USAMA.CivilRights@usdoj.gov.

Acting U.S. Attorney Levy; Assistant Attorney General Kristen Clarke; and HUD Principal Deputy Assistant Secretary Shelley made the announcement today. Assistant U.S. Attorneys Hillary Harnett, Anuj Khetarpal, Gregory Dorchak, Michelle Leung and Jennifer Serafyn from the Civil Rights Unit handled the matter. The resolution of this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of Massachusetts and the U.S. Department of Housing and Urban Development.

The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.

BOSTON – A Haverhill man has pleaded guilty to unlawfully possessing a firearm and ammunition.

Rashad Diggs, a/k/a “Summers,” 37, pleaded guilty to one count of being a felon in possession of firearm and ammunition. U.S. District Court Judge Indira Talwani scheduled sentencing for Jan. 14, 2025.

In December 2022 in Revere, Diggs possessed a semiautomatic pistol with an obliterated serial number loaded with over 40 rounds of ammunition. Due to prior felony convictions, including for unlawful firearms possession, Diggs is prohibited from possessing firearms or ammunition.

The charge of being a felon in possession of firearms and ammunition provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Malden Police Chief Glenn Cronin made the announcement today. Assistant U.S. Attorney Sarah Hoefle of the Organized Crime & Gang Unit is prosecuting the case.
 

BOSTON – A Lawrence woman was sentenced in federal court in Boston for using stolen identities of taxpayers and businesspeople to defraud the Internal Revenue Service (IRS), a bank, and the Small Business Administration (SBA).

Luz Paulino, 42, was sentenced by U.S. District Court Judge Richard G. Stearns to 54 months in prison, four years of supervised release, and ordered to pay $37,056 in restitution to MetaBank and $456,300 to the Small Business Administration. In June 2024, Paulino pleaded guilty to one count of bank fraud conspiracy, one count of bank fraud, two counts of wire fraud and two counts of aggravated identity theft.

Paulino was arrested in December 2020 and indicted by a federal grand jury in January 2021. While on pretrial release, Paulino fled the United States and remained a fugitive for 19 months.  Panamanian authorities ultimately returned her to the United States, where she was arrested for a second time.

Paulino owned and operated Agape Financial Services, a Lowell-based company that provided tax preparation and notary services. In 2019 and early 2020, Paulino filed false and fraudulent federal tax returns using the stolen identities, names and Social Security numbers of individual victims. The fraudulent tax returns reported false information regarding wages, employers and dependents, among other things, to claim tax refunds. To conceal her involvement, Paulino falsely represented to the IRS that the returns had been prepared by two former employees of Agape. Paulino then used the fraudulent returns to obtain Refund Advance Loans from a bank in the names of her victims.  Paulino and others she recruited then cashed the loan checks using false identification documents and forged signatures.  

Paulino separately used stolen identities of businesspeople living in California, Michigan, Indiana and elsewhere to apply to the SBA for $2.1 million in COVID-19 Emergency Injury Disaster Loans. Between June 2020 and October 2021, Paulino’s false applications listed fictitious companies that purportedly lost revenue during the pandemic. She used the fraudulently obtained loan proceeds to wire more than $395,000 to the Dominican Republic and to buy a 2020 Cadillac for $86,000, among other purchases.
    
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation, Boston Field Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations; and Melix Bonilla, Acting Chief of the Lawrence Police Department made the announcement today. Assistant U.S. Attorney Victor A. Wild of the Securities, Financial & Cyber Fraud Unit prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department's response to the pandemic, please visit Justice.gov/Coronavirus and Justice.gov/Coronavirus/CombatingFraud.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice's National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.

BOSTON – A former anesthesiologist at Tufts Medical Center was convicted yesterday by a federal jury of attempted sex trafficking of a child.

Sadeq Ali Quraishi, 47, was convicted of one count of attempted sex trafficking of a child. U.S. District Court Judge Angel Kelley scheduled sentencing for Jan. 28, 2024. Quraishi was indicted by a federal grand jury in November 2022.

“The trafficking of women and minors for commercial sex is ever present in our communities and sex buyers from all walks of life drive this demand. As a practicing physician, Sadeq Quraishi was in a position of trust and expected to possess a strong ethical and moral compass. Instead, he engaged in extended negotiations with a purported trafficker and ultimately agreed to buy sex with a 14-year-old girl. Fortunately, this was a law enforcement operation and no real child was involved, but sadly that is not always the case.” said Acting United States Attorney Joshua S. Levy. “We are actively prosecuting the men and women who traffic adults and kids for profit, but in order to make a real dent in this pernicious conduct, we also must go after the demand part of the equation –the people who are trolling the internet and trying to purchase sex with little kids. I hope that every coward behind a keyboard who is thinking about engaging in the rape of the child under the auspices of a commercial transaction thinks twice – you may very well be talking to an undercover federal agent. Don’t do it. If you do, you are looking at a minimum of 10 years or more behind bars.”

“As a society, we put our trust in doctors and hold them to the highest ethical standards. Quraishi betrayed that trust by seeking out and attempting to pay to sexually abuse a child,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England. “HSI will never relent in our pursuit of bringing child predators to justice.”

In November 2022, Quraishi, then a practicing anesthesiologist at Tufts Medical Center in Boston, responded to an online advertisement offering commercial sex with two young girls. Through an ensuing text conversation with undercover agents posing as the seller of the two girls, Quraishi agreed to pay $250 for a sex act to be performed by a 14-year-old girl. Shortly thereafter, Quraishi obtained cash from an ATM, and drove from his Boston home to a Waltham hotel to meet with the purported seller. Once at the hotel, he met with an undercover agent, confirmed he had the money to pay for the commercial sex act, and accepted a keycard he believed would give him access to the room where the 14-year-old girl would be located. During that meeting, Quraishi was arrested and found to be in possession of exactly $250.

The charge of attempted sex trafficking of a child carries a mandatory minimum sentence of 10 years in prison and provides a maximum sentence of up to life in prison, a term of supervised release of at least five years and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

If you or someone you know may be impacted or experiencing commercial sex trafficking, please contact USAMA.VictimAssistance@usdoj.gov.

Acting U.S. Attorney Levy and HSI SAC Krol made the announcement today. Assistant U.S. Attorneys Brian A. Fogerty of the Office’s Civil Rights & Human Trafficking Unit and Lauren A. Graber of the Health Care Fraud Unit are prosecuting the case. 
 

BOSTON – Teva Pharmaceuticals USA, Inc. and Teva Neuroscience, Inc. (collectively Teva) have agreed to pay $425 million to resolve allegations that Teva paid kickbacks via two co-pay assistance foundations in violation of the Anti-Kickback Statute (AKS) and False Claims Act.

The government’s complaint, filed in 2020, alleged that from 2006 to 2017, Teva manipulated the co-pay foundation assistance system by conspiring with multiple third parties, including a specialty pharmacy and two allegedly independent co-pay assistance foundations, to direct its supposed charitable payments specifically to patients taking its own multiple sclerosis drug, Copaxone. At the same time, Teva steadily raised Copaxone’s price by thousands of dollars. The United States alleges that this conduct violated the AKS and caused the submission of false claims to Medicare. The settlement was reached after the government’s review of Teva’s financial disclosures concerning its financial condition.

This settlement is the latest in a string of enforcement actions against pharmaceutical companies that allegedly used third-party foundations as conduits to pay kickbacks. Since 2017, the United States Attorney’s Office in Massachusetts has collected over $1.4 billion from this enforcement initiative. The U.S. Attorney’s Office has also settled with four of the third-party foundations that participated in this conduct and a specialty pharmacy.  Today’s resolution with Teva is the largest co-pay assistance settlement to date.

When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary is often 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 AKS 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.

“For far too long, Teva gamed the charitable foundation process by paying kickbacks through two foundations, and with the aid of a specialty pharmacy. Those kickbacks undermined the purpose of the Medicare co-pay system and violated the Anti-Kickback Statute,” said Acting United States Attorney Joshua S. Levy. “This Office has taken the leading role in cracking down on these highly lucrative schemes that drive up the cost of essential drugs by bringing multiple enforcement actions that have returned more than $1 billion to the Medicare system. We will continue to pursue these actions to ensure that all pharmaceutical companies play by the rules and to protect the American taxpayers.

“Kickbacks designed to induce referrals or purchases of healthcare goods or services distort physician and patient decision-making, thwart competition and bypass controls put in place to protect federal health care programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing those who engage in kickback violations, including drug manufacturers, to ensure that federal health care programs continue to serve the interests of taxpayers and program beneficiaries.”

“Pharmaceutical companies that disguise kickbacks as charitable donations to subsidize co-pays for their own drugs undermine a critical safeguard against the excessive inflation of drug prices.  The costs of these schemes are ultimately passed on to consumers and taxpayers,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “Such conduct cannot be tolerated within our health care system, and we will continue to vigorously pursue such allegations.”

“Today’s record-breaking settlement with Teva Pharmaceuticals is a victory for the public and highlights the FBI’s commitment to safeguarding the financial integrity of the Medicare program,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Pharmaceutical companies that look to bolster their drug prices by paying illegal kickbacks – whether directly or indirectly – undermine taxpayer funded healthcare programs and compromise patient care. The FBI will continue to pursue these investigations until pharmaceutical companies stop engaging in this conduct.”

Acting U.S. Attorney Levy, Principal Deputy AAG Boynton, HHS-OIG SAC Coviello and FBI SAC Cohen made the announcement today. The matter was handled by Assistant U.S. Attorney Abraham R. George, Chief of the Civil Division; Assistant U.S. Attorneys Diane Seol and Evan Panich of the U.S. Attorney’s Office for the District of Massachusetts; and Trial Attorneys Douglas Rosenthal and Nelson Wagner of the Justice Department’s Civil Division.

The civil action in Massachusetts is captioned United States v. Teva Pharmaceuticals USA, Inc., et al., No. 20-cv-11548 (D. Mass.). 

BOSTON –Magellan Diagnostics, Inc., a medical device company headquartered in Billerica, Mass., was sentenced yesterday in federal court in Boston for criminal charges related to the concealment of a device malfunction that produced inaccurately low lead test results for tens of thousands of children and other patients.

Magellan has been ordered to pay a $21.8 million fine, $10.9 million in forfeiture and a minimum of $9.3 million to compensate patient victims. Magellan pleaded guilty to two counts of introducing a misbranded medical device into interstate commerce. Magellan was charged criminally on May 21, 2024

“Keeping the people of Massachusetts safe takes a variety of forms. In the case of Magellan Diagnostics, it means protecting children who may have been exposed to dangerous levels of lead that can lead to serious health consequences. This company has admitted that it left lead blood level monitoring devices in pediatricians’ offices that it knew were providing inaccurately low readings, putting thousands of kids at risk of not having their elevated lead levels accurately diagnosed. In addition to holding the company accountable, this criminal sentence requires the company to undertake an extensive effort to identify and compensate victims.”

“Medical device makers have an obligation to provide truthful information to protect patients. By deliberately concealing and consistently misleading consumers and the FDA about device malfunctions, Magellan acted with gross disregard for its responsibility to comply with FDA requirements and put patients at risk,” said Fernando McMillian, Special Agent in Charge, FDA Office of Criminal Investigations, New York Field Office. “We will continue to thoroughly investigate those whose actions undermine the integrity of the FDA regulatory process which exists to protect consumer health.”

“It’s absolutely appalling that Magellan Diagnostics was more concerned about its bottom line than it was about coming clean to their customers and the FDA about a serious malfunction in its lead testing devices that we believe unnecessarily endangered the health of incredibly vulnerable victims,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “When you’re not feeling well, and you’re trying to find out why, the last thing you should have to worry about is whether the diagnostic test you’re relying on lives up to its manufacturer’s claims. The FBI is grateful to see that the victims affected by Magellan’s actions in this case are one step closer to being compensated.”

“Magellan concealed a serious flaw in its lead testing devices while ignoring the well-being of patients and knowingly providing inaccurate results of lead levels in the blood,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “This type of egregious conduct, which only sought to benefit the corporate bottom line, can erode the public’s trust in our nation’s health care system. Today’s sentencing should send a clear message that any company engaging in such dangerous activity will be held accountable.”

Magellan’s LeadCare Ultra and LeadCare II devices detected lead levels and lead poisoning in the blood of children and adults using either venous (blood draws through the arm) or fingerstick samples. LeadCare II, which was predominantly used to test fingerstick samples, accounted for more than half of all blood lead tests conducted in the United States from 2013 through 2017. LeadCare Ultra was predominantly used to test venous samples.

According to court documents, Magellan failed to timely notify the FDA about a serious malfunction that caused the company’s LeadCare devices to produce inaccurate blood lead level results when used to test venous blood samples. Magellan also changed the user instructions for the LeadCare devices without prior FDA notice or approval.

Magellan first learned that a malfunction in its LeadCare Ultra device could cause inaccurate lead test results – specifically, lead test results that were falsely low – during the FDA clearance process in June 2013. Magellan, however, released LeadCare Ultra to the market in late 2013 without informing customers or the FDA of the malfunction. In August 2014, LeadCare Ultra customers independently discovered the malfunction and complained about inaccurate results. FDA regulations required the company to file a medical device report about the malfunction within 30 days, but Magellan did not do so.

In November 2014, Magellan sent a letter to its LeadCare Ultra customers advising them of the malfunction and recommending that they wait 24 hours before running their tests. This contradicted the instructions for use approved by the FDA. Magellan did not, however, report the malfunction to the FDA or advise the FDA of its change to the instructions until April 2015, nearly 21 months after Magellan discovered the malfunction and almost 8 months after customers discovered the malfunction on their own. In August 2015, Magellan changed the label instructions for the LeadCare Ultra device to require users to wait 24 hours before using the device to test blood samples, rather than testing the samples immediately. FDA regulations required the company to provide advance notice of the label change and file necessary reports of device correction, but Magellan did neither.  

Magellan’s testing in 2013 also indicated that the same malfunction affected the LeadCare II device when it was used to test venous samples. Magellan, however, did not notify the FDA about the LeadCare II malfunction until November 2016.

The FDA ultimately found that the LeadCare devices could not accurately test venous samples, leading to a recall of all LeadCare devices using venous samples and a warning to the public not to use LeadCare Ultra, LeadCare II or LeadCare Plus for testing venous blood samples because of the malfunction and a recommendation that doctors retest certain patients.

According to the Centers for Disease Control and Prevention, there is no safe level of lead in the blood. Lead exposure may cause irreversible lifelong physical and mental health problems. Young children and pregnant women are most vulnerable to lead exposure, especially those from low-income households and those who live in housing built before 1978 because those homes are more likely to contain lead-based paint and have fixtures containing lead.

As part of the criminal resolution, Magellan has agreed to compensate patients who were demonstrably harmed for the economic damages they suffered as a result of the malfunction in Magellan’s blood lead testing devices. If you or a family member believe you received an inaccurate blood lead test result from a LeadCare device between 2013–2017, please complete the questionnaire located on the FBI’s website at www.fbi.gov/MagellanCaseInquiry. Information about the status of the case is located on the U.S. Attorney’s Office website: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/magellan-diagnostics-inc.

Acting U.S. Attorney Levy; FDA SAC McMillan; FBI SAC Cohen; and HHS-OIG SAC Coviello made the announcement today. Assistant U.S. Attorneys James Herbert, Kelly Lawrence and Leslie Wright of the Health Care Fraud Unit prosecuted the case.

BOSTON – A Lynn man was arrested and charged for allegedly making threats to an elected official.

Justin David Gaglio, 50, was charged by criminal complaint with one count of transmitting interstate threats. Gaglio was arrested on Sept. 27, 2024 made an initial appearance in federal court in Boston later that day. The defendant remains in federal custody following a detention hearing held on Sept. 30, 2024, as the Court took the matter of detention under advisement.

According to the charging document, beginning in or around January 2023, Gaglio began contacting the victim via online submissions through the victim’s website. Between January 2023 and September 2024, Gaglio allegedly submitted over 80 separate messages to the victim via the website – sometimes sending multiple messages within minutes of each other.  

It is further alleged that, on or about Sept. 8, 2024, Gaglio submitted a contact request to the victim’s website in which he threatened to murder the victim and their family.

The charge of transmitting interstate threats carries a maximum penalty of five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was  provided by the United States Capital Police, the Massachusetts State Police and the Lynn and Salem Police Departments. Assistant U.S. Attorney Alathea E. Porter of the National Security Unit is prosecuting the case.

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

BOSTON – A Boston man was sentenced today in federal court in Boston for attempting to pay for sex with a 14-year-old girl.

Dimitri Shawn McKenzie, 29, was sentenced by U.S. Senior District Court Judge William G. Young to 126 months in prison, to be followed by five years of supervised release. In June 2024, McKenzie was convicted following a three-day jury trial of one count of attempted sex trafficking of a child.

“The sad reality is that children are being sold for sex in our communities because of people like Dimitri McKenzie. These men fuel that commercial sex industry and drive demand.  We are actively prosecuting the men and women who traffic adults and kids for profit, but in order to make a real dent in this pernicious conduct, we also have to go after demand – that is the people who are trolling the internet purchasing sex with little kids. I hope that every coward behind a keyboard who is thinking about engaging in the rape of the child under the auspices of a commercial transaction thinks twice – you may very well be talking to an undercover federal agent. Don’t do it. If you do, you are looking at a minimum of ten years behind bars,” said Acting United States Attorney Joshua S. Levy.

“It is deeply disturbing to know that people pay to sexually abuse children. McKenzie was ready and willing to pay to sexually assault a child. Thankfully, through our undercover operation, he instead found an HSI special agent and not a real child,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England. “This sentence reflects the seriousness of his crime and our commitment to protecting children from exploitation and abuse.”

In November 2022, McKenzie responded to an online post purportedly advertising two minor girls – ages 12 and 14 years old – available to perform sex acts in exchange for money in the Boston area. The post was a fictitious advertisement by undercover law enforcement. In subsequent text communications with undercover law enforcement, McKenzie agreed to pay $100 to have sex with the fictitious 14-year-old at a hotel. Upon arriving at the hotel, McKenzie met with undercover law enforcement posing as the purported seller in the hotel parking lot, provided cash in exchange for 20 minutes with the fictitious minor and accepted a hotel room key. McKenzie was immediately taken into custody.

If you or someone you know may be impacted or experiencing commercial sex trafficking, please contact USAMA.VictimAssistance@usdoj.gov.

Acting U.S. Attorney Levy and HSI SAC Krol made the announcement today. Valuable assistance was provided by the Lexington, Waltham, Barnstable, Quincy and Cambridge Police Departments as well as the Massachusetts State Police and the Massachusetts Attorney General’s Office. Assistant U.S. Attorney Torey B. Cummings of the Civil Rights & Human Trafficking Unit and Assistant U.S. Attorney David G. Tobin of the Major Crimes Unit prosecuted the case. 
 

BOSTON – A South Boston man has been arrested and charged in connection with a scheme that defrauded a 75-year-old man from Berkshire County, Mass., of approximately $420,000.

Urvishkumar Vipulkumar Patel, 21, was charged with conspiracy to commit wire fraud. Patel was arrested on Oct. 7, 2024 and subsequently released by the Court on conditions including GPS monitoring and orders that he remain in Massachusetts.

According to the charging documents, in or around June 2024, the victim received a pop-up message on his computer claiming that his computer was frozen. The message contained a phone number, which the victim believed to be associated with Microsoft, and directed the victim to call for assistance. The victim then called the phone number listed in the pop-up and allegedly spoke with an individual before being transferred to another individual who called himself, “Sam Wilson.”

It is alleged that Wilson claimed to be a federal agent with the U.S. Treasury Department and purported to confirm the victim’s name and address. When the victim stated that was not the correct address, Wilson provided additional addresses until the victim identified his correct address. Wilson then allegedly told the victim that the victim’s name and address were listed as being involved in a money laundering scheme and that the “Treasury” showed a number of houses had been purchased in the United States and Russia in the victim’s name. Wilson allegedly told the victim that he was going to help him get out of this trouble and would speak to a judge but that, in the meantime, the victim needed to safeguard his money from being further implicated in the supposed money laundering scheme. Specifically, Wilson allegedly told the victim he should withdraw cash from his bank and send it to the Treasury Department, where it would be kept in a lock box until the victim was cleared of the scheme. Wilson also allegedly cautioned that the bank would not let the victim withdraw all of his money at once – directing the victim to make the withdrawals in smaller amounts and send it to Wilson at the “Treasury” in installments.

On approximately five separate occasions over the course of three months, the victim withdrew and provided approximately $420,000 in cash to several individuals he believed to be associated with “Sam Wilson.” On each occasion, Wilson asked the victim how much he could withdraw from his bank account, directed the victim to place the cash in a taped box with the victim’s own name and address written on it. Wilson also allegedly told the victim a specific date and time at which he would send a courier for the cash. On each occasion, the courier would pull alongside the curb in front of the victim’s house, lower one of the passenger side windows and provide a prearranged “PIN” passcode to the victim. The victim would then place the box of cash into the courier’s vehicle who would then drive away.  

The victim’s sister reported this activity to law enforcement on Oct. 1, 2024. According to the charging documents, on Oct. 7, 2024, Patel served as the courier waiting outside of the victim’s home and was approached by an undercover officer posing as the victim. It is alleged that, after receiving the prearranged “PIN” passcode from Patel, the undercover officer placed the box into Patel’s vehicle and Patel quickly drove away. He was immediately apprehended.

At the time of his arrest, Patel was allegedly driving a rental car and was actively engaged in a WhatsApp call on his cell phone. Patel allegedly told law enforcement that he had been collecting packages for weeks at the direction of another individual in exchange for payment. Patel also allegedly told law enforcement that he would deliver each package to a prearranged location before receiving his payment.

The investigation remains ongoing. Members of the public who believe they are victims of a cybercrime – including elder fraud scams, cryptocurrency scams, romance scams, investment scams, and business email compromise fraud scams – should contact USAMA.CyberTip@usdoj.gov. To report elder fraud, please visit the FBI’s IC3 Elder Fraud Complaint Center or contact the dedicated National Elder Fraud Hotline at 833–FRAUD–11 or 833–372–8311 Monday - Friday, 10a.m.- 6p.m. EST.

The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the North Adams Police Department and the Hampden County Sheriff’s Office. Assistant U.S. Attorney Kaitlin Brown of the Worcester Branch Office is prosecuting the case.

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

BOSTON – A Salvadoran man living in Somerville was sentenced today in federal court in Boston for unlawfully reentering the United States after deportation.

Tony Joel Salvador Umanzor, 36, was sentenced by U.S. District Court Judge Richard G. Stearns to eight months in prison. In June 2024, Salvador Umanzor pleaded guilty to one count of unlawful reentry of deported alien.  In May 2024, Salvador Umanzor was indicted by a federal grand jury. He has been in federal custody since his initial appearance in federal court on May 9, 2024.

Salvador Umanzor was removed from the United States on Oct. 10, 2018 following a state conviction in 2013 for trafficking oxycodone, for which he was sentenced to five years and one day in prison. Sometime after his removal, Salvador Umanzor unlawfully reentered the United States, and was located in April 2024 following a state arrest for unrelated conduct.

Acting United States Attorney Joshua S. Levy; Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and Boston Police Commissioner Michael Cox made the announcement. Assistant U.S. Attorney Elianna J. Nuzum of the Major Crimes Unit prosecuted the case. 
 

BOSTON – A Hanson man pleaded guilty on Oct. 4, 2024 to a tax fraud scheme in which he willfully failed to pay employment taxes for his two businesses.

Kenneth Marston, 67, pleaded guilty to one count of failure to collect and pay over employment taxes. U.S. District Judge Indira Talwani scheduled sentencing for Jan. 3, 2025.

From 2015 through 2018, Marston owned and operated two businesses: Bowmar Steel Industries, Inc., which engaged in steel fabrication and Teleconstructors, Inc., which provided installation services on cellular phone towers. During that time, Marston falsely treated his employees as if they were independent contractors and, in turn, failed to withhold employment taxes on over $3.8 million in combined wages. As a result, Marston avoided reporting and paying $1 million in employment taxes owed to the Internal Revenue Service.

The charge of failure to pay over taxes provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.  

Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit and Trial Attorney Mark McDonald of the Justice Department’s Tax Division are prosecuting the case.
 

BOSTON – Eighteen individuals and entities have been charged for widespread fraud and manipulation in the cryptocurrency markets. Charges were unsealed in Boston against the leaders of four cryptocurrency companies, four cryptocurrency financial services firms (known as “market makers”) and employees at those firms.

Four defendants have pleaded guilty, another defendant has agreed to plead guilty, and authorities apprehended three other defendants in Texas, the United Kingdom and Portugal this week. More than $25 million in cryptocurrency has been seized and multiple trading bots responsible for millions of dollars’ worth of wash trades for approximately 60 different cryptocurrencies have been deactivated.

According to the charging documents, the defendants who created cryptocurrency companies made false statements about their cryptocurrencies (“tokens”) and executed sham trades in those tokens (“wash trades”) to create the appearance of trading activity that would make the tokens look like good investments. These deceptive tactics allegedly attracted new investors and purchasers, which resulted in an increase in the tokens’ trading prices. The defendants are then alleged to have sold their tokens at the artificially inflated prices, a fraud commonly known as a “pump and dump.” The largest of these cryptocurrency companies, Saitama, at one point had a multi-billion-dollar market value.

The cryptocurrency companies also allegedly hired financial services firms ( “market makers”) to wash trade their tokens in exchange for payment. As one market maker defendant, who has agreed to plead guilty, described the practice to a prospective client: the “objective on the secondary markets” is to find “other buyers from the community, people you don’t know about or don’t care about” because “we have to make [the other buyers] lose money in order to make profit.”

Three market makers—ZM Quant, CLS Global and MyTrade—along with their employees are charged with allegedly wash trading and/or conspiring to wash trade on behalf of NexFundAI, a cryptocurrency company and token created at the direction of law enforcement as part of the government’s investigation. A fourth market maker, Gotbit, its CEO, and two of its directors are also charged for perpetrating a similar scheme.

Specifics regarding the defendants and conduct are detailed in Attachment A below.

“This investigation, the first of its kind, identified numerous fraudsters in the cryptocurrency industry. Wash trading has long been outlawed in the financial markets, and cryptocurrency is no exception. These are cases where an innovative technology – cryptocurrency – met a century old scheme – the pump and dump. The message today is, if you make false statements to trick investors, that’s fraud. Period. Our Office will aggressively pursue fraud, including in the cryptocurrency industry,” said Acting United States Attorney Joshua Levy. “These charges are also a stark reminder of how vigilant online investors must be and that doing your homework before diving into the digital frontier is critical. People considering making investments in the cryptocurrency industry should understand how these scams work so that they can protect themselves.”

“What the FBI uncovered in this case is essentially a new twist to old-school financial crime. ‘Operation Token Mirrors’ targeted nefarious token developers, promoters, and market makers in the crypto space. What we uncovered has resulted in charges against the leadership of four cryptocurrency companies, and four crypto ‘market makers’ and their employees who are accused of spearheading a sophisticated trading scheme that allegedly bilked honest investors out of millions of dollars,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI took the unprecedented step of creating its very own cryptocurrency token and company to identify, disrupt, and bring these alleged fraudsters to justice.”

If you bought or sold any of the tokens referenced below, please fill out this form.

The Securities & Exchange Commission has filed civil complaints alleging violations of the securities laws in relation to the conduct at Gotbit, CLS, ZM Quant, Saitama and Robo Inu. Valuable assistance was provided by the Federal Bureau of Investigation’s Legal Attachés (Madrid and London), Portugal’s Policia Judiciaria European Network of Fugitive Active Search Team (ENFAST), the United Kingdom’s National Crime Agency’s National Extradition Unit, the Internal Revenue Service Criminal Investigation, Boston Field Office and the Criminal Division’s Computer Crime and Intellectual Property Section, National Cryptocurrency Enforcement Team.

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorneys Christopher J. Markham and David M. Holcomb of the Securities, Financial & Cyber Fraud Unit are prosecuting the cases.  

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

###
 

ATTACHMENT A

The following individuals and entities have been charged in U.S. District Court in Boston, Mass.:

Aleksei Andriunin, Fedor Kedrov, Qawi Jalili, Gotbit Consulting LLC (Gotbit) – According to court documents, Gotbit was a well-known “market maker” in the cryptocurrency industry. Aleksei Andriunin, 26, of Russia and Portugal, was Gotbit’s Chief Executive Officer and Founder. Andriunin was arrested on Oct. 8, 2024 in Portugal and awaits extradition. Fedor Kedrov, of Russia, was Gotbit’s Director of Market Making. Qawi Jalili, of Russia was Gotbit’s Director of Sales. Gotbit, Kedrov and Jalili are each charged with wire fraud and conspiracy to commit market manipulation and wire fraud. Andriunin is also charged in a separate criminal complaint with wire fraud, conspiracy to commit market manipulation and wire fraud and conspiracy to commit money laundering.

It is alleged that between 2018 and 2024, Gotbit provided market manipulation and wash trading services to several cryptocurrency companies, including companies located in the United States. Gotbit allegedly made wash trades worth millions of dollars on behalf of clients and received tens of millions of dollars in proceeds for these illicit services. In a 2019 interview published online, Andriunin allegedly described how he developed a code to wash trade and artificially inflate cryptocurrency trading volume. Andriunin allegedly kept track of Gotbit’s market manipulation, including with spreadsheets that compared “Created Volume” from wash trades with naturally occurring “Market Volume.” Gotbit’s employees, including Jalili and Kedrov, allegedly described these wash trading tactics to prospective clients and how to avoid detection. Jalili and Kedrov also allegedly provided these services to multiple cryptocurrencies, including the Saitama and Robo Inu cryptocurrencies.

Riqui Liu, Baijun Ou, ZM Quant Investment LTD (ZM Quant) – ZM Quant was a “market maker” in the cryptocurrency industry that allegedly advertised illicit market manipulation services to clients. Riqui Liu, 26, of the United Kingdom and Hong Kong, was an employee of ZM Quant. Baijun Ou, 32, of Hong Kong, was also an employee of ZM Quant. ZM Quant, Liu and Ou are each charged in a superseding indictment with wire fraud and conspiracy to commit market manipulation and wire fraud.

According to court documents, ZM Quant allegedly advertised a “trading bot” that could “create volume.” ZM Quant employees allegedly discussed these illicit services with clients through Telegram messages and during video teleconferences. For example, as alleged in the charging documents, during a video teleconference in March 2024, Liu and Ou described how ZM Quant would trade “maybe ten times per minute or twenty times a minute” to “increase the trading volume” and “pump the price.” Liu and Ou also described how ZM Quant allegedly used multiple trading wallets to avoid having the trading look “fake.” It is further alleged that ZM Quant provided market manipulation services for multiple cryptocurrency companies, including Saitama and NexFundAI.

Andrey Zhorzhes, CLS Global FZC, LLC (CLS) – CLS was a “market maker” in the cryptocurrency industry that allegedly advertised illicit market manipulation services to its clients. Andrey Zhorzhes, of the United Arab Emirates, was an employee of CLS. Both CLS and Zhorzhes are charged in an indictment with wire fraud and conspiracy to commit market manipulation and wire fraud.

It is alleged that Zhorzhes described to a prospective client how CLS’s algorithm generated trading volume on multiple cryptocurrency exchanges, as follows: 

• “We have an algorithm that . . . basically does self-trades, buying and selling.”
• “The idea of volume generation is . . . so the token looks organic and looks live and people get interested in trading it.”
• “It’s very hard to track. . ..We’ve been doing that for many clients.”
• “I know that it’s wash trading and I know people might not be happy about it.”

Zhorzhes and other CLS traders allegedly provided these market manipulation services for NexFundAI.

Liu Zhou, MyTrade MM – MyTrade MM was another “market maker” in the cryptocurrency industry that advertised illicit market manipulation services to its clients, including “pump and dump” consulting services and “wash trades” facilitated by “bots.” Liu Zhou, 39, of China and Canada, was the founder of MyTrade MM. Zhou is charged and has agreed to plead guilty to conspiracy to commit market manipulation and wire fraud.

MyTrade MM’s clients had access to a dashboard on MyTrade MM’s website through which clients specified the desired amount of daily wash trades on identified cryptocurrency exchanges. MyTrade MM’s dashboard described the service as “Volume Support” and allowed for millions in wash trades per day for each client cryptocurrency, for example:

In conversations with purported promoters of NexFundAI, Zhou allegedly described MyTrade MM as superior to “CLS” and “Gotbit” because those market makers “keep clients in the dark” and “control the pump and dump,” which means “they can do inside trading easily.” Zhou allegedly also described the various purposes for wash trading, including showing “continuous trading activity every hour”; generating large enough trading volumes for cryptocurrency exchanges to waive listing fees; and executing “pump and dumps.” According to court documents, Zhou further described that the “objective on the secondary markets” was to find “other buyers from the community, people you don’t know about or don’t care about” because “we have to make [the other buyers] lose money in order to make profit.”

Manpreet Kohli, Haroon Mohsini, Nam Tran, Max Hernandez, Russell Armand, Vy Pham, Saitama LLC (Saitama) – Saitama was a cryptocurrency company, originally incorporated in Massachusetts in August 2021.

Manpreet Kohli, 43, of the United Kingdom, was the CEO of Saitama. Kohli was arrested in the United Kingdom on Oct. 7, 2024 and is awaiting extradition. Haroon Mohsini, 37, of Texas, also worked at Saitama. Mohsini was arrested on Oct. 7, 2024 in the Southern District of Texas. Nam Tran, 32, of Vietnam, worked at Saitama and is currently in Vietnam. Kohli, Mohsini and Tran are each charged in a superseding indictment with wire fraud, market manipulation, and conspiracy to commit wire fraud, commit market manipulation and conduct an unlicensed money transmitting business. Max Hernandez, 36, of Massachusetts, and Russell Armand, 42, of Texas, also worked at Saitama and are charged separately and have both pleaded guilty to market manipulation and conspiracy to commit wire fraud and to operate an unlicensed money transmitting business. Vy Pham, 32, of California, is also charged for conduct at a different cryptocurrency company but, as part of that guilty plea, admitted to certain conduct involving Saitama.

Saitama allegedly purported to create a series of products that could be used with its token and, at its peak, boasted a market value of $7.5 billion. Saitama’s leadership allegedly made a variety of false public statements, including that Saitama’s business plan had been reviewed by regulators, that its leadership was not selling the Saitama tokens they owned and that the Saitama token was coded in a way that prevented market manipulation. According to charging documents, in reality Saitama’s leadership was actively manipulating the market for the Saitama token and secretly selling their Saitama tokens for tens of millions in profits.

Saitama’s market manipulation campaign allegedly began in or about July 2021, when leadership coordinated a series of small purchases spread across multiple cryptocurrency wallets. These trades were coordinated on Telegram, where Armand allegedly explained that the goal was to “create an illusion of massive buys and new holders” to “incite ppl [people] to buy  more...W[e] want list of small buys to look like it’s mor[e] buyers. That’s the idea.” Saitama’s leadership allegedly confirmed their purchases to one another, discussed how they were successfully getting others to purchase the Saitama cryptocurrency and exchanged “pump it” memes and GIFs:

Thereafter, the Saitama leadership allegedly paid several market makers to wash trade the Saitama cryptocurrency on cryptocurrency exchanges, including BitMart, LBank and XT.com. The market makers that Saitama paid allegedly included ZM Quant and Gotbit.

Robo Inu Finance (Robo Inu) – Robo Inu was a cryptocurrency company and token that Vy Pham created after she left Saitama in 2021. Pham has been charged and agreed to plead guilty to conspiracy to commit market manipulation, to commit wire fraud and to operate an unlicensed money transmitting business. Pham founded and promoted Robo Inu from the United States. Like Saitama, Robo Inu allegedly purported to create a series of products that could be used with its cryptocurrency. Beginning in or about 2022, Robo Inu allegedly paid Gotbit to artificially inflate the trading volume of the Robo Inu token through wash trades on cryptocurrency exchanges such as Bitmart.

Michael Thompson, VZZN – VZZN was a cryptocurrency company and token that Armand created after he left Saitama in 2023. Michael Thompson, 50, of Virginia, also worked at VZZN. As with Armand, Thompson is charged and pleaded guilty to conspiracy to commit market manipulation. VZZN allegedly purported to be a video streaming service that could be used with the VZZN token. While promoting that service, Armand and Thompson allegedly also made misleading public statements about VZZN and artificially inflated the trading volume of the VZZN token through wash trades.

Bradley Beatty, Lillian Finance LLC (Lillian Finance) - Lillian Finance was a cryptocurrency company and token founded by Bradley Beatty, 48, of Florida. Beatty is charged in an indictment with wire fraud. Lillian Finance allegedly purported to use blockchain technology in the healthcare industry and to use a portion of proceeds generated from token sales for charitable purposes. Beatty allegedly made a series of false statements about Lillian Finance to attract investors, for example, that he was a defense contractor and that he had addressed Congress on the topic of cryptocurrency. Thereafter, it is alleged that Beatty generated hundreds of thousands of dollars in proceeds from retail sales of the Lillian Finance token and misappropriated a portion of Lillian Finance’s profits that were supposed to be used for charity.

The charge of market manipulation provides for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to $5 million or twice the gross gain or loss from the offense and forfeiture. The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000 or twice the gross gain or loss from the offense, restitution and forfeiture. The charge of conspiracy to commit wire fraud, market manipulation and/or to conduct an unlicensed money transmitting business provides for a sentence of up to five years in prison, up to three years of supervised release, a fine of up to $250,000 to twice the gross gain or loss from the offense, restitution and forfeiture. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $500,000, or twice the value of the criminally derived property, whichever is greater, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

###

BOSTON – Acton man was convicted today following a 2-day trial in federal court in Boston of possession and receipt of child pornography and sexual exploitation of children.

Patrick Baxter, 44, was convicted of one count of possession of child pornography, one count of receipt of child pornography, one count of sexual exploitation of children. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Jan. 8, 2024. Baxter was previously arrested and charged in December 2022.

“It is difficult to find the words to capture how abhorrent the defendant’s conduct was, and today a jury agreed. This man exploited a 7-year old victim for his own perverted gratification and thought he could get away with it by hiding behind an encrypted device. Thanks to the excellent work of the investigators in this case, the encryption was cracked and this defendant was brought to justice,” said Acting United States Attorney Joshua S. Levy. “There is no higher priority in this office than protecting children from sexual exploitation, especially at the hands of trusted adults.  Mr. Baxter will have many years in prison to reflect on the harm he has inflicted and any other individual tempted to sexually exploit minors should take notice that you will be held accountable.”

“Today, Patrick Baxter was convicted of amassing hundreds of images of young children suffering horrific sexual abuse. These videos represent unimaginable pain forced upon utterly vulnerable victims, and we’re grateful for the jury’s swift verdict,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Know that the men and women on FBI Boston’s Child Exploitation – Human Trafficking Task Force will never stop looking for, and locking up, those involved in the sexual exploitation of children.”

Baxter downloaded child sexual abuse material (CSAM) from the internet on at least three occasions in June and July 2021. A computer hard drive seized during a search of Baxter’s residence was found to contain approximately 427 video files depicting CSAM featuring prepubescent and pubescent minors engaged in various types of sexual acts and the lascivious display of their genitals.

The charge of receipt of child pornography provides for a maximum sentence of 20 years in prison with a five-year mandatory minimum sentence, a $250,000 fine and a maximum of life with a mandatory minimum of five years of supervised release. The charge of possession of child pornography provides for a sentence of up to 10 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of sexual exploitation of children provides for a sentence of up to 30 years in prison, at least 15 years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Valuable assistance was provided by the Melrose Police Department and the Royal Canadian Mounted Police. Assistant U.S. Attorneys David G. Tobin and Jessica L. Soto of the Major Crimes Unit prosecuted the case.

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

BOSTON – Three Lawrence men have been arrested for conspiracy to distribute and possess with intent to distribute drugs.

Ronald Odelyn Tejeda, 38; Erick Pimentel-Cabrera, 27; and Carlos M. Rodriguez, 36, have been charged with conspiracy to distribute and to possess with intent to distribute controlled substances. Pimentel-Cabrera and Rodriguez had their initial appearances in federal court in Boston today; Tejeda will appear at a later date.

According to the charging documents, after investigators became aware that Tejeda was selling fentanyl pills in the Lawrence area, several controlled purchases were conducted in August 2024 and September 2024 that resulted in seizures totaling over 5,000 pills. In September 2027, Tejeda and Pimentel-Cabrera were observed engaging in suspected drug activity the home where both Pimentel-Cabrera and Rodriguez live. During an October 2024 search of the residence, approximately four pounds of suspected crystal methamphetamine, approximately 30,000 pressed pills suspected to contain fentanyl, approximately 5,000 pressed pills suspected to contain methamphetamine, various amounts of suspected powder fentanyl, pill presses, three firearms and United States currency were seized.

The charge of conspiracy to distribute and to possess with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, three years to life of supervised release and a fine of up to $1 million dollars. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Acting Special Agent in Charge Stephen P. Belleau, Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance was provided by Homeland Security Investigations and by the Lawrence Police Department. Assistant U.S. Attorney Annapurna Balakrishna of the Narcotics and Money Laundering Unit is prosecuting the case.

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

BOSTON – A former executive of a global pharmaceutical company pleaded guilty today in federal in Boston to earning more than $250,000 by trading on material non-public information.

Dishant Gupta, 40, of Hillsborough, N.J., pleaded guilty to one count of securities fraud. U.S. District Court Judge Julia E. Kobick scheduled sentencing for Jan. 9, 2025. Gupta was charged by Information in September 2024.

Gupta worked as the Director of Strategy and Operations in the Boston office of a global pharmaceutical company (Company A). In the spring of 2022, during the course of his employment at Company A, Gupta learned that Company A was negotiating to acquire certain assets of a smaller pharmaceutical company based in Boston (Company B), including its leading cancer drug, and that Company A later agreed to acquire Company B outright.

While in possession of this material non-public information, and in violation of his fiduciary duties to Company A, Gupta acquired shares of Company B in his own and his wife’s brokerage accounts – in an effort to profit from the eventual public announcement of the transaction. Gupta purchased more than 300,000 shares of Company B over approximately two and a half months. Gupta then sold all the shares he had acquired after Company A announced the acquisition of Company B, earning more than $250,000.

The charge of securities fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

The Securities and Exchange Commission filed a civil complaint against Gupta alleging violations of the securities laws.
    
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division made the announcement. Assistant U.S. Attorney Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
 

BOSTON – A Boston woman was sentenced on Oct. 4, 2024 for conspiring to defraud the federal credit union where she worked as a loan officer by obtaining loans in the names of inmates at a Massachusetts prison where a co-conspirator was incarcerated.

Nadaje Hendrix, 27, of Brighton, was sentenced by U.S. District Judge Julia E. Kobick to eight months in prison to be followed by three years’ supervised release. Hendrix was also ordered to pay restitution in the amount of $134,000. In July 2024, Hendrix pleaded guilty to one count of conspiracy to commit bank fraud. In January 2024, Hendrix was indicted by a federal grand jury along with alleged co-conspirator Glenroy Miller

Between December 2019 and August 2021, Hendrix and, allegedly, Miller agreed to defraud the credit union where Hendrix worked as a loan officer and assistant branch manager, by obtaining loans in the names of other individuals, including inmates at a Massachusetts prison where Miller was incarcerated. While in prison, Miller allegedly gave Hendrix information about fellow inmates for Hendrix to use in creating fraudulent loan applications, and then arranged to have other co-conspirators go into the credit union to pretend to be the inmates, sign loan forms and obtain loans from the credit union through Hendrix. The scheme also involved obtaining loans in the names of individuals whose identities were stolen. In total, Hendrix and, allegedly, Miller stole about $134,000 from the credit union in about two months in 2021.

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.

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

BOSTON – A mother and son were sentenced in federal court in Boston for participating in a North Shore-based drug trafficking organization (DTO) that allegedly distributed tens of thousands of counterfeit prescription pills containing fentanyl and methamphetamine.

Javier Bello, a/k/a “Javi,” 29, of Beverly, Mass. was sentenced by U.S. District Court Chief Judge Dennis F. Saylor IV to 180 months in prison followed by five years of supervised release. In May 2024 Bello pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute more than 400 grams of fentanyl and one count of possession with intent to distribute more than 40 grams of a mixture or substance containing a detectable amount of fentanyl.

Bello’s mother, Chevon Dorce, 45, of Lynn, Mass. was sentenced by U.S. District Court Chief Judge Dennis F. Saylor IV to 23 months in prison followed by three years of supervised release. In July 2024, Dorce pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute controlled substances.

According to court documents, the DTO distributed counterfeit oxycodone pills containing fentanyl and counterfeit Adderall pills containing methamphetamine, among other things, to various individuals in the Lynn area. Bello directed a number of individuals to acquire, distribute and store controlled substances on his behalf.

Based on intercepted communications and simultaneous surveillance, it was determined that Bello distributed approximately 1,000 fentanyl pills to Ortiz, which were seized. Subsequent forensic analysis determined that 1,008 counterfeit oxycodone pills contained fentanyl and that the seized pills weighed approximately 135.5 grams.

Bello used his mother’s residence as a stash location. On Oct. 25, 2022, during a search of Dorce’s residence,2.5 kilograms of fentanyl, 22 grams of cocaine, a firearm concealed in a piece of furniture and an inoperable pill press, were recovered.

Bello also used Isaac Clayton’s residence as a second stash location. On Oct. 25, 2022, during a search of Clayton’s residence, various quantities of marijuana, cocaine base and fentanyl, as well as three loaded firearms, additional rounds of ammunition, $2,640 in drug proceeds and materials used to package and distribute controlled substances were recovered. Kion Shepherd also stored controlled substances on Bello’s behalf. On Oct. 25, 2022, during a search of Kion Shepherd’s mother’s home, a backpack containing several hundred grams of fentanyl and cocaine as well as a handgun with an obliterated serial number were recovered. Additionally, Erick Solis Lopez stored and distributed drugs on Bello’s behalf. On Oct. 28, 2022, during a search of Solis’s home more than 2,300 fentanyl pills and more than 100 grams of powder fentanyl from a Subaru Outback registered to Solis and parked at Solis’s residence.

Bello and a co-conspirator, Melvin Nieves, were arrested at Logan Airport as they boarded a flight to California with the intent of purchasing marijuana. At the time of their arrests, Bello and Nieves were in possession of a combined total of $70,000 in United States currency.

Ortiz pleaded guilty in June 2024 and was sentenced to 28 months in prison and three years of supervised release in September 2024; Clayton pleaded guilty in February 2024 and was sentenced to two months in prison to be followed by three years of supervised release, with the first six months to be served in home confinement August 2024;Shepherd pleaded guilty in April 2024 and was sentenced to 70 months in prison in July 2024; Solis pleaded guilty in October 2023 and was sentenced to 62 months in prison in January 2024;Nieves pleaded guilty in October 2023 and was sentenced to 27 months in prison in January 2024.

Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Geoffrey Noble, Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Beverly, Everett, Peabody, Revere, Salem, Saugus and Swampscott Police Departments. Assistant U.S. Attorney Evan D. Panich of the Narcotics & Money Laundering Unit is prosecuting the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.

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

BOSTON – A real estate agent was sentenced today in federal court in Boston in connection with a multi-year scheme to defraud his clients by engaging in fraudulent short sales of government and bank-owned properties to straw buyers acting at the direction of the defendant and a co-conspirator.

Sheldon Haag, 34, of Glastonbury, Conn. was sentenced by U.S. District Court Judge Leo T. Sorokin to one year and one day in prison and two years of supervised release. Haag was also ordered to forfeit $277,331 and to pay restitution in an amount to be determined at a later date. In June2023, Haag pleaded guilty to one count of conspiracy to commit wire fraud.

Haag and another real estate agent, James Macchio, used straw buyers to acquire properties owned by the clients of a brokerage where they worked, which included banks, federal agencies, bankruptcy trustees and other mortgage holders. The straw buyers included a shell company set up by a co-conspirator as a purported construction company. Haag and his co-conspirators hid their involvement as the de facto buyers of short sale properties from their clients, the owners of the properties, and used their inside knowledge as the owner’s broker to minimize sale prices in order to maximize their gain from later “flipping” the properties.

While perpetrating the “flipping scheme,” Haag and his co-conspirators further defrauded clients by submitting fraudulent renovation bids from contractors to their own clients, including from the fake construction company they controlled through a co-conspirator. Once their clients accepted a fraudulent bid, Haag and his co-conspirators would hire different contractors at much lower cost and pocket the difference between the fraudulent bid and the actual cost of property repairs.

Macchio pleaded guilty in May 2024 and is scheduled to be sentenced on Nov. 19, 2024.

Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office made the announcement today. The United States Department of Housing and Urban Development provided valuable assistance. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit prosecuted the case.

BOSTON – A member of a large-scale criminal enterprise has been convicted after a four-day trial for distributing large amounts of cocaine throughout Eastern and Western Massachusetts.

Vicente Gonzalez, 51, of Chicopee, was convicted on Oct. 3, 2024 of one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine and one count of possession with intent to distribute 500 grams or more of cocaine. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 8, 2025. Gonzalez was indicted along with 12 co-defendants in December 2019.

As part of the cocaine-trafficking conspiracy, Vicente Gonzalez received multiple kilograms of cocaine through the U.S. mail from Puerto Rico. He received those cocaine packages at his home and from another address in West Springfield. Gonzalez agreed to distribute this cocaine to his co-conspirators based in both the Chicopee/Springfield area and New Bedford. On July 29, 2019, during a search of Gonzalez’s residence, two kilograms of cocaine worth approximately $60,000 were seized from the basement, directly underneath a laundry chute leading from Gonzalez’s laundry room.

The charge of conspiracy to possess with intent to distribute 500 grams or more of cocaine, as well as the charge of possession with intent to distribute 500 grams or more of cocaine, each provide for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; and New Bedford Police Chief Paul Oliveira made the announcement. Valuable assistance was provided by the Massachusetts State Police and the Chicopee and Holyoke Police Departments. Assistant U.S. Attorneys Stephen Hassink and Nathaniel Yeager of the Narcotics and Money Laundering Unit are prosecuting the case.  

The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.

BOSTON – The U.S. Attorney’s Office has issued a reminder to rest homes in Massachusetts about their obligations under the Americans with Disabilities Act (ADA) with respect to discrimination against persons with disabilities including opioid disorder and mobility restrictions.  

Rest homes are residential care facilities that provide 24-hour supervision and supportive services, such as meals, activities, housekeeping and administration of medications to residents. These facilities provide an option for older adults and persons with disabilities in Massachusetts to receive supportive care in a community setting. There are approximately 60 facilities licensed as rest homes in Massachusetts.  

Under the ADA, rest homes cannot refuse to admit persons with opioid use disorder (OUD) because they take medications to treat their OUD, such as buprenorphine (Suboxone) and methadone. To ensure compliance with the nondiscrimination provisions of the ADA, facilities must evaluate each applicant individually to determine suitability for admission, rather than enacting a blanket policy denying admissions to all persons treated with medications for OUD.  Also under the ADA, rest homes must not deny admission to people with disabilities who use mobility aids such as walkers, crutches and canes, or manual or power wheelchairs or scooters, unless a particular type of device cannot be accommodated because of a legitimate safety requirement.  

“It is against the law to deny someone admission to a facility based on the fact that they require mobility aids or are receiving treatment for opioid use disorder,” said Acting U.S. Attorney Levy. “These patients have the same rights as anyone else to seek out the appropriate residential setting to meet their needs. Nobody should be refused admission to a rest home simply because they are disabled.”

Since 2018, the Civil Rights Unit for the U.S. Attorney’s Office has entered into 10 settlement agreements with Massachusetts entities that operate skilled nursing facilities for refusing to admit individuals prescribed medications for OUD. The U.S. Attorney’s Office will continue to pursue similar enforcement actions against rest homes and other residential facilities in Massachusetts that fail to follow the law. Courts may impose civil penalties for ADA violations, which could be as high as $92,383 for a first violation, and potentially double that amount for subsequent violations.

The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights. 

BOSTON – A North Andover, Mass. man has been charged for allegedly possessing over 30 firearms and explosives as a convicted felon.

Daniel Medina, 64, was charged by criminal complaint with unlawful possession of a machine gun, unlawful possession of explosives, and as a felon in possession of firearms and ammunition. Medina is currently in state custody on related charges and will appear in federal court in Boston at a later date.

According to the charging documents, on July 1, 2024, law enforcement was dispatched to the area of Medina’s North Andover residence after receiving a report of an explosion. Upon arrival,  damage to two vehicles was observed as well as a piece of mail addressed to Medina beneath the damaged rear passenger door of one vehicle. It is alleged that the damages to the vehicles and materials left behind were consistent with common items used in manufacturing homemade explosive devices, specifically ball bearings or shrapnel. It is further alleged that witnesses observed Medina running from the damaged vehicles toward his residence following the explosion.

According to the charging documents, during a search of Medina’s residence the following day, law enforcement located and seized the following items:

• 32 firearms, including 12 rifles, 15 pistols, three shotguns and two antique firearms;
• 9,000 rounds of various calibers of modern ammunition manufactured outside of Massachusetts;
• 75 magazines for various caliber firearms;
• Various firearm parts;
• A Glock switch device;
• Books pertaining to the building of firearms and manufacturing of explosives and drugs;
• Shrapnel accessories such as BB’s and ball bearings;
• Multiple firework containers; and
• Various containers of powders produced and shipped in interstate commerce. 

It is alleged that the containers of powder were found to contain potassium chlorate and aluminum powder – the same flash powder found in the suspected explosive material used for the prior day’s explosion.

Medina is prohibited from possessing firearms, ammunition and explosive material due to a 2002 state conviction of assault and battery in Lawrence District Court, for which he was sentenced to two and a half years in jail. 

The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of up to $250,000. The charge of illegal possession of a machine gun provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of illegal possession of an explosive material provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the North Andover Police Department, Massachusetts State Police and the Essex County District Attorney’s Office. Assistant U.S. Attorney Luke A. Goldworm of the 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 New York man pleaded guilty yesterday to his involvement in a sophisticated international money laundering and drug trafficking organization.

Yanbing Chen, 30, of Brooklyn, N.Y., pleaded guilty to conspiracy to commit money laundering and conspiracy to distribute five kilograms or more of cocaine. U.S. District Judge Angel Kelley scheduled sentencing for Jan. 21, 2025.

In May 2023, a federal grand jury in Boston returned a superseding indictment charging 12 individuals from Massachusetts, Rhode Island, New York and California for their alleged involvement in a sophisticated international money laundering and drug trafficking organization. Jin Hua Zhang, based in Staten Island, was identified as the leader of the organization along with a number of his criminal associates. The investigation revealed that, for a fee, Zhang laundered bulk cash for drug dealers and laundered profits from other illegal businesses. In less than one year, Zhang and his organization laundered at least $25 million worth of drug proceeds and funds from other illegal businesses through undercover agents.

In July 2022, on Zhang’s behalf, Chen delivered $50,000 in drug funds to undercover agents to be laundered. Those funds were converted to Tether, a type of cryptocurrency, and transferred to Zhang, the organization’s leader, minus a fee. Funds were eventually traced from the Zhang organization to Hong Kong and elsewhere in China, India, Cambodia and Brazil, among other locations. Cash and cryptocurrency in accounts tied to Zhang were seized at the conclusion of the investigation.

In addition, in two separate meetings in August and September 2022, Zhang sent Chen to meet with cooperating witnesses near South Station in Boston. Chen was recorded by the undercover agents as he delivered a total of five kilograms of cocaine at Zhang’s direction.

Zhang pleaded guilty and is scheduled to be sentenced on Jan. 15, 2024.

The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. The charge of conspiracy to distribute five kilograms of cocaine calls for a sentence of up to life in prison, a minimum of five years of supervised release, and a $10 million fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was also provided by the Quincy Police Department. Assistant U.S. Attorneys Christopher Pohl, Brian A. Fogerty and Meghan C. Cleary of the Criminal Division are prosecuting the case.

The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty 
 

BOSTON – A Boston man pleaded guilty yesterday to his role in Cameron Street, a violent Boston gang.

Charod Taylor, a/k/a “Pachino,” 35, of Boston, pleaded guilty to conspiracy to participate in a racketeering enterprise (commonly referred to as RICO conspiracy) and conspiracy to distribute cocaine. U.S. Senior District Court Judge William G. Young scheduled sentencing for Jan. 15, 2025.

Taylor was identified as a member of Cameron Street, a violent gang based largely in the Dorchester section of Boston that uses violence and threats of violence to preserve, protect and expand its territory, promote a climate of fear and enhance its reputation. Cameron Street gang ran an open-air drug market in the parking lot of a business on in Dorchester in which Taylor and several other Cameron Street members participated in controlled purchases of cocaine and cocaine base (crack cocaine) to cooperating witnesses. From February 2021 to March 2022, Taylor worked with other Cameron Street members and associates to distribute crack and powder cocaine to cooperating witnesses seven times.

According to the charging documents, Cameron Street members possess, carry and use firearms to murder and assault gang rivals as well as protect narcotics and drug proceeds. Cameron Street members post videos or use social media applications to promote Cameron Street, celebrate murders and other violent crimes committed by the gang, and denigrate rivals, in particular NOB (for Norton, Onley, and Barry Streets), known more generally as Wendover. Cameron Street members also possess, carry, and use firearms to murder and assault gang rivals as well as protect narcotics and drug proceeds. Additionally, Cameron Street members distribute controlled substances and firearms, commit armed robberies, and engage in human trafficking in part to generate income for the Cameron Street enterprise.

The charge of RICO conspiracy and conspiracy to interfere with commerce by force or violence each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to distribute cocaine provide for a sentence of up to 20 years in prison, at least three years of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Feld Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; the United States Postal Inspection Service; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher J. Pohl and Charles Dell’Anno of the Criminal Division are prosecuting the case.

This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

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 Guatemalan man was sentenced yesterday in federal court in Boston to unlawful reentry.

Wilson Hernandez-Bautista, 34, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 21 months in prison. In June 2024, Hernandez-Bautista pleaded guilty to one count of unlawful reentry of a deported alien. Hernandez-Bautista was indicted by a federal grand jury December 2023.

Hernandez-Bautista was deported from the United States on Oct. 9, 2013. Sometime after his 2013 removal, Hernandez-Bautista unlawfully reentered the United States. In On Nov. 23, 2024, Hernandez-Bautista was convicted of rape of child with force in Essex County Superior Court. While serving a five-to-seven year sentence, immigration authorities became aware of Hernandez-Bautista’s unlawful presence in the United States.

Acting United States Attorney Joshua S. Levy and Todd Lyons, Field Office Director for U.S. Customs and Border Protection, Boston Field Office made the announcement today. Valuable assistance was provided by Massachusetts Department of Corrections. Assistant U.S. Attorney Brian J. Sullivan of the Major Crimes Unit prosecuted the case. 
 

BOSTON – A California man was arrested yesterday and charged with leaving a series of violent and threatening voicemails at companies in Massachusetts.  

Daniel Nguyen, 34, was charged by complaint with transmitting a threat in interstate commerce.  Nguyen will have an initial appearance today in federal court in San Francisco and will appear in Boston and a later date.   

According to the charging documents, from January through February 2024, Nguyen made a series of five phone calls to companies based in Massachusetts, and left voicemails in which he threatened to “shoot up” the offices with an AK-47. In the voicemails, Nguyen allegedly said the employees were “all going to be [expletive] dead. It’s going to be a [expletive] bloodbath.”    

The charging document also describes threatening emails that Nguyen allegedly sent to individuals in Nevada and California. Those emails allegedly contained race-based threats, stating “I will … shoot all you [expletive] [expletive]s dead and burn al[l] you [expletive] piece of [expletive] [expletive]s in the dump and ditches where all you [expletive]s belong,” and “the only good [expletive] is a dead [expletive] that is shot and killed.”   

The charge of transmitting a threat in interstate commerce provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Lauren Maynard of the 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.