District of Massachusetts

BOSTON – A Jamaica Plain man was sentenced on Jan. 5, 2024 in federal court in Boston for a May 2022 robbery of a TD Bank in Cambridge.

Jalonni Shabazz, a/k/a “Jalonni Tucker,” 42, was sentenced by U.S. District Court Judge Indira Talwani to 63 months in prison and three years of supervised release. In August 2023, Shabazz pleaded guilty to one count of bank robbery.

On May 2, 2022, at approximately 12:49 p.m., a suspect wearing a royal blue baseball hat, gray short-sleeved T-shirt, a camouflage pattern garment around his neck and medical mask entered the TD Bank on Massachusetts Ave. in Cambridge. The suspect handed the teller a note that read, “All of the Money - No Dye packs - or alarms,” and then told the teller, “This is a robbery honey.” The teller complied with the suspect’s demands and gave cash to the suspect.  The man then fled on foot after taking $2,200 cash from the teller. 

During a search of the area surrounding the bank, a royal blue baseball hat, consistent with that worn by the suspect in the robbery, was located. DNA obtained from the hat belonged to Shabazz. In addition, analysis of the bank’s surveillance footage and the defendant’s Facebook account identified Shabazz’s features – including his tattoo, hair and an article of clothing – to be consistent with that of the robbery suspect.

At the time of the robbery, Shabazz was on supervised release following a 2017 federal conviction for two bank robberies for which he was sentenced to 54 months in prison.

Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Massachusetts State Police Interim Colonel John E. Mawn, Jr.; Boston Police Commissioner Michael Cox; and MBTA Transit Police Chief Kenneth Green made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of the Major Crimes Unit is prosecuting the case. 

BOSTON – A Boston man was sentenced on Jan. 5, 2024 for attempting to prevent a victim from testifying against him in a federal proceeding. Defendant was on federal supervised release for sex trafficking when he exposed himself to the victim.   

Mark Pinnock, 32, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 33 months followed by three years supervised release. In October 2023, Pinnock pleaded guilty to one count of witness intimidation. 

In 2014, Pinnock was sentenced to eight years in prison for a sex trafficking offense. In July 2022, after his release from prison, Pinnock was working as an Amazon driver while under federal supervision. A victim reported to law enforcement that Pinnock exposed his penis to her while delivering a package to the condominium complex where the victim worked as a custodian. As a result, the U.S. Probation Office sought to revoke Pinnock’s term of supervised release and the Court scheduled a hearing to adjudicate Pinnock’s alleged offense.  

One week before the hearing, Pinnock directed a co-conspirator to go to the condominium complex on his behalf at a time when he knew that the victim would be working. The co-conspirator falsely claimed that he worked for the state and told the victim not to go to Court while standing with his hand in his pocket in a threatening manner as if he had something in it. Pinnock also used an encrypted messaging application to send an anonymous message to the security officer at the complex to “let the cleaning lady know” she would be arrested by immigration officials if she were to go to court. Finally, Pinnock placed three separate phone calls to immigration officials in an attempt to have the victim detained for being unlawfully present in the United States. In the calls to immigration officials, Pinnock falsely claimed that he had heard the victim was gang-affiliated, among other things.

Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England made the announcement today.  The Brockton Police provided valuable assistance in the investigation. Assistant U.S. Attorney Mackenzie A. Queenin of the Criminal Division prosecuted the case.  

BOSTON – A Belchertown man was sentenced yesterday in federal court in Springfield for fraudulently receiving Social Security disability benefits.   

Kenneth Pontz, 59, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 10 months in prison and three years of supervised release.  Restitution and forfeiture will be determined at a hearing on March 5, 2024.  In August 2023, Pontz was convicted by a federal jury of one count of theft of public funds after a four-day trial. 

Over a span of 16 years, Pontz repeatedly made false statements to the Social Security Administration to obtain over $114,000 in disability benefits to which he was not entitled by concealing that he lived with his wife, whose income would have been used in calculating his monthly benefit payment for the needs-based program. Pontz further concealed his living arrangements by reporting that he lived at a vacant lot, rather than the residence he shared with his wife. Additionally, Pontz provided a fraudulent rent receipt that overstated his actual rent by $575 per month.

Also during this time frame, Pontz embezzled approximately $46,000 from his trailer park association in his capacity as treasurer.

Acting United States Attorney Joshua S. Levy; Sharon MacDermott, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Belchertown Police Chief Kevin Pacunas made the announcement today. Special Assistant U.S. Attorney James J. Nagelberg and Assistant U.S. Attorney Neil L. Desroches of the Criminal Division prosecuted the case.
 

BOSTON – A Maine man was sentenced today in federal court in Boston in connection with a fentanyl trafficking operation that spanned across northern New England. 

Douglas Morris, 33, of Bangor, Maine, was sentenced by U.S. District Court Judge Indira Talwani to 12.5 years in prison and five years of supervised release.  In August 2023, Morris pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of p-Fluorofentanyl, a fentanyl analogue. Morris was indicted by a federal grand jury along with five co-defendants in March 2022.

According to court documents, in June 2021, Morris picked up nearly two kilograms of p-Fluorofentanyl – a dangerous fentanyl analogue – intended for distribution in Maine, allegedly from co-defendant Ivan Rodriguez Osorio in a hotel parking lot in Amesbury, Mass. Morris’ vehicle was subsequently stopped by law enforcement and the narcotics were seized. 

The fentanyl analogue was packaged in 161 10-gram cylinders commonly called “fingers.” These fingers are a common form of drug packaging for resale to other distributors. Morris had allegedly made three prior drug purchases from Rodriguez Osorio, buying approximately 500 grams of fentanyl each time.

Less than two weeks later, in July 2021, Morris picked up nearly two kilograms of fentanyl, allegedly from Rodriguez Osorio, in the same hotel parking lot in Amesbury, Mass. Morris’ vehicle was again stopped by law enforcement and the narcotics were seized.  

According to court documents, Morris has multiple prior convictions for drug trafficking offenses. In July 2009 Morris was arrested federally and charged with conspiracy to distribute and possession with intent to distribute oxycodone. While on federal pretrial release, he was again arrested and charged by state authorities with trafficking oxycodone. Morris was eventually convicted of both offenses and sentenced to 88 months in prison in the federal case and two years (served concurrently) in the state case. However, upon his release, Morris violated the terms of his supervised release numerous times and was revoked twice. His supervised release ended in 2019.

Morris is the second defendant to be sentenced in the case.

Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Special assistance was provided by the New Hampshire State Police. Assistant U.S. Attorneys Stephen W. Hassink and Lauren A. Graber of the Narcotics & Money Laundering Unit prosecuted 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

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

BOSTON – A former detective sergeant for the Stoneham Police Department was sentenced today for concealing his history of evictions and using a family member’s credit report to obtain an apartment lease and then defrauding his landlord by intentionally withholding rent payments.

Robert Kennedy, 54, of Stoneham, was sentenced by U.S. District Court Judge Denise J. Casper to two years of probation, with the first 90 days to be served under home confinement with electronic monitoring.  Kennedy was also ordered to pay restitution of $14,275. In September 2023, Kennedy pleaded guilty to two counts of wire fraud. 

“Today's sentence should send a clear message: no one is above the law. We remain steadfast in our commitment to hold accountable those who exploit their positions and engage in fraudulent activities that compromise the very principles they are sworn to uphold,” said Acting United States Attorney Joshua S. Levy.

“Former Stoneham Police Department Detective Robert Kennedy broke laws he was sworn to enforce, and in doing so, failed his department, and betrayed the trust of three landlords whom he lied to and defrauded. In no uncertain terms, today’s sentence demonstrates that no one is above the law,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “This case also highlights the FBI’s ongoing commitment to root out and bring to justice anyone who deliberately compromises the integrity of their position for personal gain.”

From February 2020 through June 2023, Kennedy lied to and defrauded three separate landlords to obtain apartments that he had no intention of paying for. After moving in, Kennedy would intentionally withhold rent payments, despite making $141,000 - $187,000 a year from the Stoneham Police Department. As a result, Kennedy lived in the apartments rent-free by taking advantage of the slow eviction process.  

Specifically, Kennedy defrauded his most recent landlord by submitting materially false and fraudulent information during the rental application process. The landlord required Kennedy to submit to a tenant screening service, which included a credit check and eviction history check. Instead of providing his own date of birth and social security number to the tenant screening service – which would likely have shown Kennedy’s history of collections, delinquent payments, defaults and evictions – Kennedy provided the date of birth and Social Security number of a relative who shared his first and last name. The landlord relied on the information from the fraudulently obtained tenant screening report to approve Kennedy’s rental application and give Kennedy a lease for the apartment. Additionally, Kennedy immediately and intentionally violated the terms of the lease by giving the landlord bad checks for his rent and security deposit and failing to make subsequent rent payments. Kennedy lived in the apartment for approximately four months without making rent payments and currently owes the landlord approximately $14,000 in overdue rent.  

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made announcement today. Valuable assistance was provided by the Stoneham Police Department. Assistant U.S. Attorneys Elysa Q. Wan and Dustin Chao of the Public Corruption & Special Prosecutions Unit prosecuted the case.

BOSTON – An East Longmeadow man was sentenced today in federal court in Springfield for marijuana trafficking.

John Americo Pereira, 38, was sentenced by U.S. District Court Judge Mark G. Mastroianni to six months in prison and three years of supervised release. In June 2023, Pereira pleaded guilty to one count of possession with intent to distribute more than 100 kilograms of marijuana. 

In January 2018, an investigation began into Pereira, and others, for trafficking marijuana. During a search of Pereira’s home in February 2019, approximately $688,000 in drug proceeds and more than 269 pounds (122 kilograms) of marijuana packaged in one-pound bags were found. Also found at Pereia’s residence were several smaller or partially filled packages and containers of marijuana, marijuana cigarettes and a large amount of marijuana edibles, including 876 chocolate bars. 

Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Office and the Criminal Division’s Organized Crime and Gang Section of the Department of Justice prosecuted the case.  
 

BOSTON – A Vermont man pleaded guilty today in federal court in Springfield in connection with illegally possessing a firearm and ammunition and possessing with intent to distribute methamphetamine.

Jeffrey Baird, 43, pleaded guilty to one count of being a felon in possession of a firearm and ammunition and one count of possessing with the intent to distribute methamphetamine.  U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for April 4, 2024. Baird was indicted by a federal grand jury in March 2022. 

In December 2021, law enforcement stopped Baird’s vehicle travelling north on Route 91 in Northampton. Baird had a fake paper license plate taped to his back window and had been driving without any valid driver’s license. Baird was taken into custody. During a subsequent search of Baird’s vehicle, a revolver and five rounds of ammunition were found along with 207 grams of methamphetamine in a Ziplock bag – which carried a street value of between $6,000 and $10,000. Additionally, three more rounds of ammunition were found on Baird’s person inside his Hell’s Angels vest. 

Baird is prohibited from possessing firearms and ammunition due to prior convictions for firearms offenses. 

The charge of being a felon in possession of a firearm and ammunition provides 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. The charge of possession with the intent to distribute methamphetamine provides for a sentence up to 20 years in prison, up to three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and 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 & Explosives, Boston Field Division; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla, Chief of the Springfield Branch Office, is prosecuting the case.

BOSTON – Two New York men have been arrested on charges related to visa fraud.

Rambhai Patel, 36, and Balwinder Singh, 39, were charged with one count each of conspiracy to commit visa fraud. Patel was arrested in Seattle on Dec. 13, 2023 and, following an initial appearance in the Western District of Washington, was ordered detained pending trial. Singh was arrested in Queens, N.Y. on Dec. 13, 2023 and had his initial appearance in the Eastern District of New York. Singh appeared in federal court in Boston yesterday afternoon. Patel is expected to appear in federal court in Boston at a later date.

According to the charging documents, starting in March 2023, Patel and his co-conspirators, including at times Singh, set up and carried out staged armed robberies of at least eight convenience/liquor stores and fast food restaurants across the United States, including at least four in Massachusetts. It is alleged that the purpose of the staged robberies was to allow the clerks present to claim that they were victims of a violent crime on an application for U nonimmigration status (U Visa). A U Visa is available to victims of certain crimes who have suffered mental or physical abuse and who have been helpful to law enforcement in the investigation or prosecution of criminal activity.  

In the course of the alleged staged robberies, the “robber” would threaten store clerks and/or owners with an apparent firearm before taking cash from the register and fleeing, while the interaction was captured on store surveillance video. The clerks and/or owners would then wait five or more minutes until the “robber” had escaped before calling police to report the “crime.”  The “victims” are alleged to have each paid Patel to participate in the scheme. In turn, Patel allegedly paid the store owners for the use of their stores for the staged robbery.

The charge of conspiracy to commit visa fraud 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.

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 in the investigation was provided by the U.S. Attorney’s Offices for the Eastern District of New York and the Western District of Washington; FBI’s New York and Seattle Field Offices; U.S. Citizenship and Immigration Services; Massachusetts State Police; Worcester County District Attorney’s Office; and the Hingham, Marshfield, Randolph, Weymouth, Worcester, Upper Darby, (Pa.), West Pittston (Pa.), Louisville, (Ky.) and Bean Station (Tenn.) Police Departments. Assistant U.S. Attorneys Elianna J. Nuzum and Jessica L. Soto of the Major Crimes Unit are prosecuting the case. 

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

BOSTON – A New York man was sentenced yesterday for distributing approximately three kilograms of fentanyl and 592 grams of fentanyl analogue in Woburn. 

Ruben Davila Cardenas, 45, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to four years in prison and three years of supervised release. On Sept. 25, 2023, Cardenas pleaded guilty to distribution and possession with intent to distribute fentanyl. 

In October 2021, Cardenas travelled from New York City to Boston and distributed approximately three kilograms of fentanyl and over 500 grams of fentanyl analogue to a cooperating source in Woburn.

Early in the day on Oct. 19, 2021, Cardenas picked up approximately three kilograms of fentanyl and over 500 grams of fentanyl analogue from an individual in New York City. Cardenas then travelled with the narcotics to Boston on a bus and to Woburn via a ride-share vehicle. There, Cardenas distributed the fentanyl and fentanyl analogue in a backpack to a cooperating source. Cardenas was immediately apprehended. The backpack was found to contain three kilograms of fentanyl and several thousand pills of fentanyl analogue.

Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Colonel Mark B. Hall, Director of the New Hampshire State Police made the announcement. Assistant U.S. Attorney John T. Mulcahy of the Narcotics & Money Laundering Unit prosecuted the case.

BOSTON – A West Bridgewater man was arrested yesterday for allegedly receiving child pornography from an online communication application. 

Juan Levano, 23, was charged by criminal complaint with one count of receipt of child pornography. Levano was arrested yesterday morning and, following an initial appearance in federal court in Boston, remains in federal custody.

According to the charging documents, an investigation into an internet-based communications application used for the trafficking of child pornography identified Levano as a likely user of the platform who participated in at least two groups where child pornography was disseminated. 

Search warrants were executed yesterday at the residence where Levano resides and seized various electronic devices. According to the charging documents, Levano rented a room at the residence, which is registered as a residential daycare. Both Levano and the owner of the residence denied that Levano worked at the residential daycare and denied that Levano had any contact with the children who attend it.

It is alleged that Levano admitted to being a member of several groups on the chat application and obtaining child pornography from those groups – estimating that his collection included imagery of children ranging from infancy to 13 years old. A preliminary review of Levano’s phone allegedly revealed that Levano was a member of several active groups on the platform that included the exchange of child pornography. It is further alleged that more than 100 video and image files were identified, most of which appear to depict child pornography, and stored in a photo application on Levano’s phone. Forensic analysis of the seized devices is ongoing.

The charge of receipt of child pornography provides for a sentence of at least five years and up to 20years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $ 250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.

Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was provided by the West Bridgewater Police Department. Assistant U.S. Attorney Jessica L. Soto of the Office’s Major Crimes Unit is prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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 https://www.justice.gov/psc.

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 – Pharmaceutical company Ultragenyx Pharmaceutical, Inc. (Ultragenyx) has agreed to pay $6 million to resolve allegations that it caused the submission of false claims to Medicare and Medicaid. The settlement concerns Ultragenyx paying for free genetic tests for patients and buying test result information to induce prescriptions of Crysvita. 

Ultragenyx is a pharmaceutical manufacturer headquartered in California that manufactures Crysvita. Crysvita is an FDA-approved drug to treat X-linked hypophosphatemia (XLH) in adult and pediatric patients six months of age and older. XLH is a rare inherited disorder characterized by low levels of phosphate in the blood, which can lead to weak bones and, in many instances, may require a genetic test to definitively diagnose.  
    
As part of the settlement, Ultragenyx admitted and accepted responsibility for certain facts providing the basis of the settlement. Ultragenyx understood that, in some cases, an insurer (including Medicare or Medicaid) would require a positive genetic test for a genetic mutation consistent with XLH to pay for a patient’s prescription for Crysvita, or a health care provider (HCP) would require a positive genetic test to make a definitive diagnosis of XLH and prescribe Crysvita. Thus, Ultragenyx entered into an arrangement with a genetic testing laboratory (Laboratory), whereby Ultragenyx paid the Laboratory to conduct genetic tests—at no cost to HCPs or patients—and provide the results to the HCP. Ultragenyx referred to this program as its “sponsored” XLH testing program. Ultragenyx sales personnel discussed the XLH testing program with HCPs and delivered order forms for the tests to HCP’s offices.

Ultragenyx separately paid the Laboratory to provide the test results to Ultragenyx, including the name of the HCP who ordered the test, a de-identified patient ID number, the date the test was ordered, and—once ready—the test result itself ( “Results Reports”).  Ultragenyx used the Results Reports, in part, for marketing purposes to find potential Crysvita patients and their HCPs. Until April 2022, Ultragenyx received Results Reports and disseminated this information to its sales force with instructions to make sales calls for Crysvita to HCPs who ordered a test or who had a patient with a positive test result. Ultragenyx’s sales force followed up with HCPs regarding test results. 

The United States contends that, as a result of these actions, Ultragenyx caused the submission of false claims to Medicare and Medicaid by paying kickbacks to beneficiaries in the form of free genetic tests to induce their purchase of Medicare- or Medicaid-reimbursed Crysvita and to the Laboratory for the Results Reports to induce the Laboratory’s to refer to Ultragenyx the names of HCPs to whom Ultragenyx could market Crysvita.   

“Kickbacks, in whatever form, have no business in our federal healthcare system. We are always on the lookout for financial kickbacks that can improperly influence medical decisions, undermine patient care, and cause waste to federal healthcare programs,” said Acting United States Attorney Joshua S. Levy. “As medical practices evolve, our office is committed to ferreting out improper financial kickbacks of any permutation.”

“The department is committed to protecting the integrity of federal health care programs and the medical care received by their beneficiaries,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “A primary focus of this effort is the pursuit of kickback schemes that can allow third parties, such as pharmaceutical manufactures, to insert themselves into the doctor-patient relationship and potentially undermine the objectivity of treatment decisions by physicians and patients.”

 “Kickback arrangements designed to improperly influence medical decisions will always be an investigative priority for our agency,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General. “The goals of our continued enforcement in this area are to protect the integrity of taxpayer-funded health care programs such as Medicare and Medicaid, and to curb schemes that can inappropriately manipulate the health care choices of patients and their doctors.”

“Today’s settlement makes it crystal clear that pharmaceutical companies like Ultragenyx will not be allowed to exploit patient data to target patients for treatments in order to boost their bottom line at the expense of taxpayer-funded health care programs,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Let this case be a warning to others that the FBI and our law enforcement partners are hard at work investigating allegations of health care fraud, and anyone engaging in similar conduct will face similar consequences.”

The allegations resolved by the settlement agreement were, in part, originally brought in a case filed under the whistleblower, or qui tam, provision of the False Claims Act. The case is captioned U.S. ex rel. Ruggiero v. Ultragenyx Pharmaceutical, Inc. (D. Mass.) (No. 1:21-cv-11176-ADB). The False Claims Act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government did, in part, in this case. Of the total $6 million recovery, approximately $5.8 million constitutes a recovery for Medicare and the federal share of Medicaid and approximately $200,000 constitutes a recovery for state Medicaid programs. The whistleblower will receive approximately $1.07 million from the federal portion of the recovery.  

Acting U.S. Attorney Levy; AAG Boynton; HHS-OIG SAC Coviello; and FBI SAC Cohen made the announcement today. Assistant U.S. Attorneys Brian LaMacchia and Diane Seol and Senior Counsel for Health Care Fraud Augustine Ripa handled the matter. 

Pharmaceutical company Ultragenyx Pharmaceutical Inc. (Ultragenyx) has agreed to pay $6 million to resolve allegations that it caused the submission of false claims to Medicare and Medicaid, in violation of the False Claims Act, by paying for free genetic tests, plus a separate fee to receive test result information for marketing purposes, to collectively induce prescriptions of its drug Crysvita and referrals of health care providers (HCPs) to Ultragenyx for the furnishing or arranging for the furnishing of Crysvita.

Ultragenyx is a pharmaceutical manufacturer with a principal place of business in California that manufactures Crysvita. Crysvita is an FDA-approved drug to treat X-linked hypophosphatemia (XLH) in adult and pediatric patients six months of age and older. XLH is a rare inherited disorder characterized by low levels of phosphate in the blood, which can lead to weak bones and, in many instances, may require a genetic test to definitively diagnose.

Ultragenyx understood that, in some cases, a positive genetic test for a genetic mutation consistent with XLH would be required for an insurer (including Medicare or Medicaid) to pay for a patient’s prescription for Crysvita, or for a healthcare provider (HCP) to make a definitive diagnosis of XLH and prescribe Crysvita. Thus, Ultragenyx entered into an arrangement with a genetic testing laboratory (Laboratory), whereby Ultragenyx paid the Laboratory to conduct genetic tests — at no cost to HCPs or patients — and provide the results to the HCP. Ultragenyx referred to this program as its “sponsored” XLH testing program and Ultragenyx sales personnel discussed the XLH testing program with HCPs and delivered order forms for the tests to HCP offices.

Ultragenyx separately paid the Laboratory to provide the test results to Ultragenyx, including the name of the HCP who ordered the test, a de-identified patient ID number, the date the test was ordered and — once ready — the test result itself (collectively, Results Reports). Ultragenyx used the Results Reports, in part, for marketing purposes to find potential Crysvita patients and their HCPs. Until April 2022, Ultragenyx received Results Reports and disseminated this information to its sales force with instructions to make sales calls for Crysvita to HCPs who ordered a test or, in particular, who had a patient with a positive test result. Ultragenyx’s sales force followed up with HCPs regarding test results. The United States contends that, as a result of these actions, Ultragenyx caused the submission of false claims to Medicare and Medicaid by paying kickbacks 1) to beneficiaries in the form of free genetic tests to induce their purchase of Medicare or Medicaid-reimbursed Crysvita and 2) to the Laboratory for the Results Reports to induce the referral to Ultragenyx of HCPs to whom Ultragenyx could market Crysvita.

As part of the settlement, Ultragenyx admitted and accepted responsibility for certain facts providing the basis of the settlement.

“The department is committed to protecting the integrity of federal health care programs and the medical care received by their beneficiaries,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “A primary focus of this effort is the pursuit of kickback schemes that can allow third parties, such as pharmaceutical manufactures, to insert themselves into the doctor-patient relationship and potentially undermine the objectivity of treatment decisions by physicians and patients.

“Kickbacks, in whatever form, have no business in our federal healthcare system” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “We are always on the lookout for financial kickbacks that can improperly influence medical decisions, undermine patient care and cause waste to federal healthcare programs. As medical practices evolve, our office is committed to ferreting out improper financial kickbacks of any permutation.”

“Kickback arrangements designed to improperly influence medical decisions will always be an investigative priority for our agency,” said Special Agent in Charge Roberto Coviello of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “The goals of our continued enforcement in this area are to protect the integrity of taxpayer-funded health care programs such as Medicare and Medicaid, and to curb schemes that can inappropriately manipulate the health care choices of patients and their doctors.”

“The FBI and its partners will not stand by when a pharmaceutical company illegally takes advantage of our health care system,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response and Services Branch. “Those who engage in activity that violates the False Claims Act must face the consequences of their actions. As we strive to protect the American people, we will not stop working to combat healthcare fraud.”

The allegations resolved by the settlement agreement were, in part, originally brought in a case filed under the whistleblower, or qui tam, provision of the False Claims Act. The case is captioned United States ex rel. Ruggiero v. Ultragenyx Pharmaceutical, Inc. (D. Mass.) (No. 1:21-cv-11176-ADB). The False Claims Act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government did, in part, in this case. Of the total $6 million recovery, approximately $5.8 million constitutes a recovery for Medicare and the federal share of Medicaid and approximately $200,000 constitutes a recovery for State Medicaid programs. The whistleblower will receive approximately $1.07 million from the federal portion of the recovery.

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

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts, with investigative support from HHS-OIG and the FBI’s Boston Field Office.

This matter was handled by Senior Counsel for Health Care Fraud Augustine Ripa and Assistant U.S. Attorneys Brian LaMacchia and Diane Seol for the District of Massachusetts.

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

BOSTON – A New Hampshire man has pleaded guilty to his role in a conspiracy to harass and intimidate two journalists employed by New Hampshire Public Radio (NHPR). The harassment and intimidation of the victims included the vandalism – on five separate occasions – of the victims’ homes and the home of one of the victims’ parents with bricks, large rocks and red spray paint.

Tucker Cockerline, 32, of Salem, N.H., pleaded guilty in federal court in Boston to conspiracy to commit stalking through interstate travel and the use of a facility of interstate commerce. U.S. District Court Judge Indira Talwani scheduled sentencing for March 19, 2024. Cockerline was initially arrested and charged by criminal complaint in June 2023 along with alleged co-conspirators Michael Waselchuck and Keenan Saniatan. The defendants were subsequently indicted by a federal grand jury along with Eric Labarge in September 2023.

According to the charging documents, after a year-long investigation, an NHPR journalist (Victim 1) published an article in March 2022 detailing allegations of sexual and other misconduct by a former New Hampshire businessperson, identified in the charging document as Subject 1. Another NHPR journalist (Victim 2) also contributed to the article, which appeared on NHPR’s website during and after March 2022. In response to this reporting, Labarge – who is alleged to be a close personal associate of Subject 1 – Saniatan, Cockerline and Waselchuck allegedly agreed to harass and intimidate Victims 1 and 2 and their immediate family members. Among other things, the indictment alleges that:

• On or about April 22, 2022, Labarge solicited Cockerline to vandalize Victim 1’s former residence in Hanover, N.H., using a brick and red spray paint. Thereafter, on the evening of April 24, 2022, Cockerline spraypainted the word “C*NT” in large red letters on the front door and allegedly threw a brick through an exterior window of the home;
• On or about April 22, 2022, Saniatan allegedly agreed to vandalize Victim 2’s home in Concord, N.H., and Victim 1’s parents’ home in Hampstead, N.H., using large rocks and red spray paint. Thereafter, on the evening of April 24, 2022, Saniatan allegedly spraypainted the word “C*NT” in large red letters on the front door and threw a large rock at the exterior of Victim 2’s home; and he allegedly threw a softball-sized rock through a front exterior window and spraypainted the word “C*NT” in large red letters on one of the garage doors of Victim 1’s parents’ home;
• On or about May 18, 2022, Labarge allegedly solicited Cockerline to vandalize Victim 1’s parents’ home in Hampstead, N.H., and Victim 1’s home in Melrose, Mass., using bricks and red spray paint. Cockerline, in turn, allegedly recruited Waselchuck to vandalize Victim 1’s residence; and
• On the evening of May 20, 2022, Cockerline spraypainted the word “C*NT” in large red letters on one of the garage doors of Victim 1’s parents’ home, and left a brick on the ground near the front door. Several hours later, Waselchuck allegedly threw a brick through an exterior window of Victim 1’s home and painted the phrase “JUST THE BEGINNING” in large red letters on the front of the house.

Each charge in the indictment carries a maximum sentence of up to five years in prison, three years of supervised release, a $250,000 fine and restitution. 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 Field Division made the announcement today.  Valuable assistance was provided by the Concord, Hampstead and Hanover, New Hampshire Police Departments, the Melrose, Massachusetts Police Department and the United States Attorney’s Office for the District of New Hampshire. Assistant U.S. Attorneys Jason A. Casey and Torey B. Cummings of the Criminal Division are prosecuting the case.

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

BOSTON – A Connecticut man who held positions involving facility maintenance at three collegiate institutions was sentenced yesterday for receiving $919,066 of bribes in exchange for directing contracts to favored contractors. 

Floyd Young, 53, of Shelton, Conn., was sentenced by U.S. District Court Judge Mark G. Mastroianni to eight months in prison. Young was also ordered to pay restitution of $919,066 to the collegiate institutions and forfeiture of $919,066. In August 2020, Young pleaded guilty to one count of conspiracy and three counts of bribery concerning programs receiving federal funds. 

Young held positions involving facility maintenance at three collegiate institutions, including American International College, located in Springfield. Young steered contracts for construction, repair, maintenance, and other work for the collegiate institutions to favored contractors who paid him bribes, typically in the amount of 15% of the contract. The contractors inflated the amount of the invoices submitted to the collegiate institutions in order to be repaid the cost of the bribe payment made to Young. In addition, as contractors received payments for work done at the collegiate institutions, they paid Young bribes on a periodic basis. On occasion, Young and the contractors arranged for no-work invoices to be submitted to the collegiate institutions and then split the payment. 

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 Steven H. Breslow of the Springfield Branch Office prosecuted the case.

BOSTON – A Mexican man residing in Westford was sentenced yesterday in federal court in Boston for unlawfully reentering the United States after deportation.

Pedro Romo-Gonzalez, 42, was sentenced today by U.S. District Court Judge Richard G. Stearns to time served (approximately six months in prison). On Oct. 19, 2023, Romo-Gonzalez pleaded guilty to unlawful reentry of a deported alien.

On at least eight separate occasions between April 1998 and July 2010, Romo-Gonzalez was removed from the United States or voluntarily returned to Mexico. After each removal, he illegally re-entered the United States without obtaining the appropriate permission to reenter. He was first encountered by federal authorities in April 1998 after he entered the United States via California without being admitted by an immigration officer. In December 2009, Romo-Gonzalez was convicted in Arizona state court of solicitation to commit smuggling. Most recently, on June 13, 2023, federal immigration authorities were notified of Romo-Gonzalez’s presence in Massachusetts after he was arrested on unrelated state charges. 

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 Westford Police Chief Mark Chambers made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of the Major Crimes Unit prosecuted the case. 

BOSTON – A Watertown man pleaded guilty yesterday in federal court in Boston to defrauding investors who believed they were financing lucrative short-term sports ventures in Africa.

Adrian Kawuba, 33, pleaded guilty to four counts of wire fraud. United States District Court Judge William G. Young scheduled sentencing for March 14, 2024. Kawuba was arrested and charged in November 2022.

Kawuba told his victims that he would invest their money in short-term financing of sports ventures in Africa and elsewhere overseas and that he would personally guarantee their investments. Kawuba did not invest any of the victims’ funds. Instead, Kawuba used the money to pay for luxury goods and to pay purported returns to his investors – in some instances paying back a victim’s earlier investment with money that victims had just sent Kawuba for a new investment. The scheme involved at least 26 fraudulent deals, involving more than $2.3 million in victim funds.

The charges of wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of $250,000 or twice the monetary loss or gain, whichever is greater, restitution 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.

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. The Watertown Police Department provided valuable assistance. Assistant U.S. Attorney Kriss Basil of Securities, Financial & Cyber Fraud Unit is prosecuting the case.

BOSTON – A Vancouver man pleaded guilty today in federal court in Boston to participating in a conspiracy to defraud investors in the Boston-based biomedical company Endeavor Power Corp.

Marco G. Babini, 62, pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud. U.S. District Court Judge Patti B. Saris scheduled sentencing for March 14, 2024. Babini was indicted by a federal grand jury in Boston in September 2015. He was arrested in Canada on April 21, 2020, at the request of the United States, and was extradited to the United States in July 2023.

Between approximately July 2012 and March 2013, Babini agreed to participate in a securities fraud scheme involving the planned sale of stock under concealed control during a promotional campaign, a course of conduct commonly known as a “pump-and-dump.” Babini had trading authority over brokerage accounts in Switzerland in the names of nominee entities that held a significant portion of the purportedly unrestricted shares of Endeavor. To raise money to fund a promotional campaign to generate investor demand for the shares, Babini agreed to execute pre-arranged trades with an undercover federal agent. The undercover agent was posing as an individual who had a corrupt network of stockbrokers willing to purchase and hold shares on behalf of their clients in exchange for monetary kickbacks. Babini agreed to execute pre-arranged trades with the goal of raising at least $200,000, and, in December 2012, Babini attempted to execute an initial test trade valued at $20,000.

Babini’s co-conspirators Edward Withrow III and Samuel Brown were previously charged with and convicted of federal offenses. In May 2018, Withrow pleaded guilty to one count of making false statements to the U.S. Securities & Exchange Commission (SEC). Brown separately pleaded guilty in July 2015 to one count of conspiracy to commit securities fraud and wire fraud and one count of making false statements to the SEC. Withrow and Brown were sentenced in December 2018 and January 2019, respectively.

The charge of conspiracy provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000, or twice the amount involved, 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 Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The U.S. Justice Department’s Office of International Affairs and the Department of Justice Canada’s International Assistance Group provided valuable assistance in securing the extradition of Babini. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.

A Massachusetts man pleaded guilty today engaging in sexual acts with three minors in Laos.

According to court documents, Michael Sebastian, 56, of Lynn, taught English to impoverished children in Laos. While teaching children there, Sebastian allowed certain students to live with him in his apartment, and they had to pay “dues.” Students who were unable to pay their dues performed “chores” around the house to earn credit towards their dues payments. One of the “chores” was giving Sebastian a massage while he was naked. Between May 2018 and September 2019, in the course of these massages, Sebastian engaged and attempted to engage in sexual acts with three minors who lived with him.

Sebastian pleaded guilty to three counts of engaging in illicit sexual conduct in a foreign place. He is scheduled to be sentenced on March 28, 2024, and faces a maximum penalty of 90 years in prison and lifetime supervised release. Additionally, he will be required to pay restitution to his victims and to register as a sex offender under the Sex Offender Registration and Notification Act. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Joshua S. Levy for the District of Massachusetts, Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division, and Special Agent in Charge Jodi Cohen of the FBI Boston Field Office made the announcement.

The FBI investigated the case, with assistance from the Department of State’s Diplomatic Security Service.

Trial Attorneys Nadia Prinz and Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Anne Paruti for the District of Massachusetts are prosecuting the case.

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

BOSTON – A Lynn man pleaded guilty today to sexually exploiting minors to whom he taught English in Laos.

Michael Sebastian, 56, pleaded guilty to three counts of engaging in illicit sexual conduct in foreign places. U.S. District Court Judge Denise J. Casper scheduled sentencing for March 28, 2024. Sebastian was arrested and charged in July 2020 following his return to the United States and subsequently indicted by a federal grand jury in August 2020.

According to the charging documents, Sebastian taught English to impoverished children in Laos. While teaching children there, Sebastian allowed certain students to live with him in his apartment. Students who were unable to pay for their living expenses performed “chores” around the house to earn credit towards their rent payments. One of the “chores” eligible for rent credit was to give Sebastian massages, during which Sebastian would be naked. As part of these massages, Sebastian required some students to touch his genitals and masturbate him in lieu of rent payment.

Between May 2018 and March 2020, Sebastian sexually abused three minor children who lived with him.

“Mr. Sebastian ingratiated himself into a position of trust and then manipulated his relationships to exploit vulnerable minors who sought refuge and education. His horrific conduct is a parent’s worst nightmare,” said Acting United States Attorney Joshua S. Levy. “Ensuring the safety of our children from an array of threats is an absolute top priority for this office. This case should send a resounding message to Americans in Massachusetts and beyond: predators will be identified, prosecuted and held accountable.”

“Teachers like Michael Sebastian who use their access to children for their own sexual gratification are both a danger and a disgrace. Today, Mr. Sebastian finally admitted to exploiting impoverished children in a foreign country and betraying their trust,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This case illustrates how the FBI will pursue justice beyond American borders to safeguard vulnerable victims from predators.”

The charge of engaging in illicit sexual conduct in foreign places provides for a sentence of up to 30 years in prison, five 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 that govern the determination of a sentence in a criminal case.

Acting U.S. Attorney Levy; Nicole M. Argentieri, Acting Assistant Attorney General for the Justice Department’s Criminal Division; and FBI SAC Cohen made the announcement. This case was primarily investigated by the FBI's Legal Attache office in Bangkok, along with valuable assistance provided by the FBI's Child Exploitation Operational Unit and the Boston FBI’s Child Exploitation Human Trafficking Task Force. Assistant U.S. Attorney Anne Paruti, Project Safe Childhood Coordinator and Chief of the Office’s Major Crimes Unit, and Trial Attorneys Nadia Prinz and Eduardo Palomo of the Justice Department’s Child Exploitation and Obscenity Section are prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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 https://www.justice.gov/psc.

BOSTON – A Braintree man pleaded guilty today in connection with an elaborate money laundering conspiracy.

Chengzou Liu, 36, pleaded guilty to conspiracy to commit money laundering as well as possession with intent to distribute marijuana. U.S. District Court Judge Indira Talwani scheduled sentencing for April 24, 2024.

In July 2022, Liu was charged along with seven others in connection with elaborate money laundering and money transmitting conspiracies allegedly led by two of Liu’s co-conspirators Qiu Mei Zeng and Shi Rong Zhang.

According to the charging documents, Zeng and Zhang co-owned China Gourmet, a restaurant in Boston’s Chinatown neighborhood. Zhang was also a registered owner of Wonderful Electronics, an electronics and restaurant supply business based in Hanover. It is alleged that the defendants used these businesses to run a large-scale money laundering and money transmitting operation that involved the laundering of drug proceeds and proceeds from stolen and/or fraudulent gift cards.

Liu was a large-scale marijuana trafficker who laundered his drug proceeds through China Gourmet. On at least three occasions, Liu was observed delivering bags of cash that contained tens of thousands of dollars in drug proceeds to the restaurant, which then wired to accounts in the U.S. and China. Specifically, it is alleged that Liu delivered the bags of cash to Zeng, who then sent electronic transfers of these funds to various accounts in China provided by Liu. 

The charge of conspiracy to commit money laundering 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 value of the property involved, whichever is greater. The charge of possession with intent to distribute marijuana provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; 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 in Boston; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; Boston Police Commissioner Michael Cox; Braintree Police Chief Tim Cohoon; and Quincy Police Chief Paul Keenan made the announcement today. Valuable assistance in the investigation was provided by the United States Postal Inspection Service. Assistant U.S. Attorneys Lauren A. Graber and Charles Dell’Anno of the Criminal Division are prosecuting the case.  

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

PROVIDENCE, RI – A Revere, MA, man was sentenced yesterday for defrauding rideshare companies using fraudulent driver accounts that he created using stolen identities.

Thiago De Souza Prado, 39, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 70 months in prison, followed by three years of supervised release. Judge Wolf also imposed a $50,000 fine. Prado was charged in May 2021 along with 17 others. In September 2023, Prado was convicted by a federal jury of one count of conspiracy to commit wire fraud, three counts of wire fraud, and three counts of aggravated identity theft.

“What Thiago De Souza Prado and this crew did is truly egregious. They stole the identities of unsuspecting consumers, violated customers’ privacy, and potentially compromised public safety by putting unqualified drivers behind the wheel of these rideshare and food delivery services which millions of people rely on,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “We are very grateful to Uber’s Global Security and Investigations team for their diligent efforts in rooting out this massive fraud ring, for quickly bringing it to the FBI’s attention, and for working with us to ensure the defendants in this case were brought to justice and held accountable for the crimes they committed.” 

According to the government’s evidence presented at trial, starting in 2019, Prado obtained stolen Massachusetts driver’s licenses and bought social security numbers on the darknet. He and his co-conspirators then used the stolen identities to pass the criminal background checks, the sex offender registry check, and the driving record check required by the rideshare companies and by the Massachusetts Department of Public Utilities.

Prado and his co-conspirators also used the stolen social security numbers for tax reporting on their fraudulent accounts. Once the driving accounts were active, Prado either used the accounts himself or rented them out to others, who also could not pass the background checks, often because they did not have social security numbers and were in the United States illegally.

Prado also used his fake driver accounts to get bonuses from rideshare companies by referring his other fake driver accounts as new drivers. In addition, Prado and his co-conspirators used an app, which they called “the drone,” to spoof rides and ride lengths, so that they were paid by the rideshare companies for “ghost rides” or for rides that were longer and more expensive than those actually provided. Prado received payments via bank accounts that he opened in the names of identity theft victims.

United States Attorney Zachary Cunha of the District of Rhode Island 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 Social Security Administration, the Massachusetts Department of Public Utilities and the Massachusetts Registry of Motor Vehicles. Assistant U.S. Attorneys David Holcomb and Kriss Basil of the Securities, Financial & Cyber Fraud Unit of the U.S. Attorney’s Office for the District of Massachusetts are prosecuting the case.

Mr. Cunha was assigned to oversee this matter by the Department of Justice upon recusal of the U.S. Attorney for the District of Massachusetts.

###

BOSTON – A Manchester, N.H. man was sentenced today in federal court in Boston to his role in a multi-state methamphetamine trafficking conspiracy.

Anthony Elwell, 49, was sentenced by U.S. District Judge Denise J. Casper to 78 months in prison and five years of supervised release. In July 2023, Elwell pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute methamphetamine and one count of distribution and possession with intent to distribute methamphetamine. 

Elwell was indicted in May 2021 along with three other individuals, Andrew Lunn, Mark Daileanes and William Velez. On four occasions between June and September 2020, Lunn sold pure methamphetamine to a cooperating witness in amounts ranging from 100 to almost 280 grams. Velez supplied Lunn with the methamphetamine for each of those deals. For one of the deals, in July 2020, Elwell provided Daileanes with money to purchase 280 grams of methamphetamine from Lunn. All of Elwell’s co-defendants have pleaded guilty. The final defendant is scheduled to be sentenced on Dec. 20, 2023.

Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England made the announcement today. The New Hampshire State Police and the Everett, Nashua (N.H), Merrimack (N.H.), Litchfield (N.H), and Manchester (N.H.) Police Departments provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division prosecuted the case.

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

Michael Nguyen, a/k/a “Asian,” 23, pleaded guilty to one count of conspiracy to interfere with commerce by threats or violence and one count of conspiracy to participate in a racketeering enterprise, more commonly referred to as RICO or racketeering conspiracy. U.S. Senior District Court Judge William G. Young scheduled sentencing for March 20, 2024.

According to court documents, Cameron Street is a violent gang based largely in the Dorchester section of Boston that used violence and threats of violence to preserve, protect, and expand its territory, promote a climate of fear and enhance its reputation. Cameron Street members possess, carry and use firearms to murder and assault gang rivals as well as protect narcotics and drug proceeds. 

Cooperating witnesses identified Nguyen as a valued a member of Cameron Street who, among other duties, often infiltrated rival gang territory to conduct surveillance for other members. In July 2018, Nguyen and two alleged co-defendants broke into the home of two victims – entering through the back door while wearing masks and dark hoodies and carrying firearms. One victim ran out of the front door of the house and called 911. A second victim was brought into the living room, punched in the head, had a gun put to their head and a pillow put in front of their face as Nguyen and others ransacked the house, demanding, “where’s the stuff, where’s the money, where’s your boyfriend?” Nguyen and his two alleged co-conspirators later fled the house in a silver pickup trick after stealing $2,000 in cash and a safe.

Nguyen and others were later observed driving away from the house. Officers pursued the truck until it abruptly stopped in Stoughton – colliding with the police cruiser. Nguyen and an alleged co-conspirator then exited the truck and fled the area. The alleged co-conspirator was quickly apprehended and a firearm was recovered from the scene. 

The charges of RICO conspiracy and conspiracy to interference with commerce by threats or violence each provide for sentences 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 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 S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; 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 J. Pohl and Charles Dell’Anno of the Criminal Division are prosecuting the case.

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

BOSTON – A Brockton man pleaded guilty today in federal court in Boston in connection with a scheme to submit false applications to obtain Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) funds through the Small Business Administration (SBA) that were made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Joao Mendes, 60, pleaded guilty to one count of wire fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for April 9, 2024. Mendes was charged in July 2022.

Beginning in or around June 2020 and continuing until at least in or around September 2020, Mendes submitted or caused to be submitted multiple fraudulent PPP and EIDL loan applications on behalf of various entities. The fraudulent PPP loan applications misrepresented the number of employees and the average monthly payroll expenses of Mendes’s various businesses. Mendes also submitted false tax records in support of his loan applications. In his EIDL applications, Mendes misrepresented the number of employees, gross revenues and costs of goods sold for each business. Based on the fraudulent applications, Mendes and others received more than $1.5 million in PPP and EIDL funds. Once Mendes received the funds, he either spent them for his own personal benefit—including for the purchase of cryptocurrency—or transferred the funds into other accounts he controlled or to other individuals.   

The United States seized cryptocurrency and fiat currency from over 20 accounts, resulting in the recovery of $1.545 million in cryptocurrency and more than $206,000 in U.S. currency, which will be criminally forfeited.

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP. Another is the EIDL, through which the SBA offers loans that can only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred. The American Rescue Plan Act established the RRF to provide funding to help restaurants and other eligible businesses keep their doors open through forgivable loans for eligible uses.

The charge of 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 or twice the gross gain or loss from the offense. 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; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Robert Manchak, Special Agent in Charge of the Federal Housing Finance Agency Office of Inspector General, Northeast Region; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Donald Alway, Assistant Director in Charge for the FBI’s Los Angeles Field Office; Weston King, Special Agent in Charge of the Small Business Administration Office of Inspector General, Western Region; Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General, New York Regional Office; Tyler Hatcher, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Los Angeles Field Office; William A. Kalb, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration, Northeast Field Division; and Brian Tucker, Special Agent in Charge, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, Eastern Region, made the announcement today. Assistant U.S. Attorneys Mackenzie A. Queenin and Carol E. Head of the Criminal Division and Trial Attorney Jennifer Bilinkas of the Criminal Division’s Fraud Section are prosecuting the case. Attorney Advisor Scott J. Campbell of the Criminal Division’s Money Laundering and Asset Recovery Section provided significant assistance.

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, among other methods, 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 https://www.justice.gov/coronavirus.

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 at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

BOSTON – A Boston man pleaded guilty today to unlawfully possessing a firearm and ammunition. 

Victor Florentino, 27, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Patti B. Saris scheduled sentencing for April 11, 2024. Florentino was indicted by a federal grand jury in August 2022.  

In April 2022, during a motor vehicle stop in Quincy, Florentino was found in possession of a Glock 9mm pistol and 15 rounds of ammunition. Florentino is prohibited from possessing a firearm or ammunition due to a prior felony conviction in 2016 for firearms trafficking. 

The felon in possession charge 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; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney John Dawley of the Organized Crime & Gang Unit is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, 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.

BOSTON – A Boston man has been indicted by a federal grand jury for unlawfully possessing a firearm and ammunition and distributing cocaine.

Herbert Small, 22, was indicted with one count of being a felon in possession of a firearm and ammunition and two counts of distribution and possession with intent to distribute controlled substances. He was arraigned in federal court in Boston today. Small was previously charged by complaint on Oct. 24, 2023 and has remained in custody since his arrest on Nov. 7, 2023.

According to the charging documents, on Aug. 17, 2023, Small sold 25 grams of cocaine and two firearms – a .22 caliber revolver and a .40 caliber pistol with a magazine containing 11 rounds of ammunition – to a cooperating witness in Dorchester. On Oct. 16, 2023, Small again sold approximately 70 grams of cocaine base (commonly known as crack cocaine) to the same cooperating witness.

Small prohibited from possessing firearms and ammunition due to a previous federal drug conviction in 2017.  

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 $250,000. The charge of conspiracy to distribute and possess with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years of supervised release up to life 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 and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Office. Valuable assistance was provided by the Boston Police Department. Assistant U.S. Attorneys Philip C. Cheng and Lucy Sun of the Office’s Organized Crime & Gang Unit are prosecuting the case. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, 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.

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

BOSTON – The U.S. Attorney’s Office has filed a complaint under the False Claims Act against Steward St. Elizabeth’s Medical Center of Boston, Inc. (SEMC); Steward Medical Group, Inc. (SMG); and Steward Health Care System, LLC (Steward) alleging that they violated the Physician Self-Referral Law (commonly referred to as the “Stark Law”) and submitted and caused the submission of false claims and statements to the Medicare program. Steward – the owner of SMG and SEMC – is an integrated healthcare system and one of the largest, private, for-profit health care networks in the nation. 

Congress enacted the Stark Law to protect against physicians’ financial relationships from impacting their medical decision-making for Medicare patients. Relevant to this case, the Stark Law prohibits a hospital from billing Medicare for services referred by a physician with whom the hospital has an improper compensation relationship. The Stark Law protects patients and the Medicare program from physicians’ financial relationships leading to unnecessary overutilization of services or increased costs.  

In 2012, SMG recruited Dr. Agnihotri, a cardiac surgeon, to serve as the Chief of Cardiac Surgery at SEMC. The government alleges that the defendants recruited Dr. Agnihotri because they wanted to increase the number of cardiovascular surgeries at SEMC in Boston, as a means to grow their profits via reimbursement from Medicare and other insurers. The government’s complaint alleges that, from January 2013 through March 2022, SMG paid Dr. Agnihotri compensation that exceeded fair market value as well as incentive compensation that varied based on, and took into account, the volume or value of his referrals to SEMC. Specifically, the amount of incentive compensation that SMG allegedly paid to Dr. Agnihotri varied based on the number of surgeries that Dr. Agnihotri referred to SEMC. It is alleged that SMG paid Dr. Agnihotri approximately $4,868,500 in incentive compensation that it calculated by including as a variable the number of cases Dr. Agnihotri referred to SEMC. The complaint alleges that Dr. Agnihotri made referrals to SEMC in violation of the Stark Law and SEMC submitted over 1,000 claims to Medicare knowing that the claims for those referred services were not eligible for payment. As a result, Medicare mistakenly paid tens of millions of dollars to SEMC for false claims.

“The government’s complaint today alleges that in its drive to increase cardiac surgeries at SEMC, the defendants entered into improper compensation arrangements with a cardiac surgeon, and knowingly submitted false claims to Medicare,” said Acting United States Attorney Joshua S. Levy. “We are committed to enforcing the Stark Law, and protecting patients and the Medicare program from financial relationships that can corrupt clinical decision making.”

“Improper financial arrangements between hospitals and physicians can compromise medical judgement and threaten the integrity of the Medicare program,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Working alongside our law enforcement partners, HHS-OIG will continue to thoroughly pursue allegations of Stark Law violations.”

“Health care providers need to ensure that compensation agreements with physicians are appropriate, and the claims they submit to Medicare are based on the clinical needs of patients, not financial ones,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Working with our law enforcement partners, we will continue to investigate deals that we believe could undermine impartial medical judgement, drive up health care costs, and erode the public’s trust in our health care system.”

The government’s investigation was prompted by False Claims Act allegations brought in a lawsuit filed by a whistleblower, under the qui tam provisions of the False Claims Act. 

Acting U.S. Attorney Levy, HHS-OIG SAC Coviello and FBI SAC Cohen made the announcement today. The Department of Defense, Office of the Inspector General also assisted in the investigation. Assistant U.S. Attorneys Jessica J. Weber and Andrew A. Caffrey, III of the Affirmative Civil Enforcement Unit are handling the matter.  

The claims in which the United States has intervened are allegations only. There has been no determination of liability.

“Our office made it clear when we announced charges of a commercial sex ring case on Nov. 8, 2023, that the investigation was ongoing and that there would be accountability for the buyers who fuel the commercial sex industry. Today, a Homeland Security Investigations Task Force Officer with the Cambridge Police Department submitted applications for complaints against 28 sex buyers with the Cambridge District Court. Until probable cause has been found, no names will be released. If probable cause is established and criminal charges are issued by the Court, referrals will then be made to the Middlesex District Attorney’s Office.
 
In addition, we are working closely with Virginia state authorities to begin the referral process of sex buyers from the Virginia locations in this case. 
 
The referral processes will remain ongoing.” 

BOSTON – A New Jersey man was sentenced today in connection with his scheme to defraud a friend of more than $1.5 million.  

Edwin Tavarez, 48, of Garfield, N.J., was sentenced by U.S. District Judge Leo T. Sorokin to 18 months in prison and two years of supervised release. Tavarez was also ordered to forfeit $1,515,836. On May 31, 2023, Tavarez pleaded guilty to one count of wire fraud.  

Between March 2015 and February 2020, Tavarez executed a scheme in which he conned a decades-long friend into “investing” more than $1.5 million into a purported development deal for an industrial property in the Dorchester neighborhood of Boston. In fact, Tavarez pocketed the money and used it to fund a restaurant he owned in the Bronx, N.Y., for personal expenses, and at casinos. Tavarez hid his scheme by sending text messages to the victim with fake updates on the purported property development and blaming project delays on the permitting process.    

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office made the announcement today. Assistant U.S. Attorneys Kristen A. Kearney and Leslie A. Wright of the Securities, Financial & Cyber Fraud Unit prosecuted the case.

BOSTON – A Framingham man pleaded guilty today in federal court in Boston to unlawfully possessing a firearm and ammunition as a convicted felon.

Edwin Alago, 42, pleaded guilty to one count of possessing a firearm in furtherance of a drug trafficking crime. U.S. District Judge Denise J. Casper scheduled sentencing for March 12, 2024. Alago was indicted by a federal grand jury in June 2023 after being previously arrested on related state charges.

In May 2021, Alago possessed a SCCY .9mm CPX-2 semi-automatic pistol bearing a defaced serial number and seven rounds of .9mm ammunition. Due to previous felony convictions for drug distribution and possession and assault with a dangerous weapon, Alago is prohibited from possessing firearms.

The charge of possessing a firearm in furtherance of a drug trafficking crime provides for a sentence of up to life in prison and no less than five years in prison, up to five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based 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 Middlesex County District Attorney’s Office and the Framingham Police Department. Assistant United States Attorneys Meghan C. Cleary and Brian Sullivan of the Major Crimes Unit are prosecuting the case. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, 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.

BOSTON – A former Boston woman, who was sentenced to federal prison in 2021, pleaded guilty today to failing to surrender to serve her sentence.

Yris Sanchez, 54, pleaded guilty to failing to appear to serve a federal sentence. U.S. District Court Judge Denise J. Casper scheduled sentencing for April 11, 2024. Sanchez was indicted by a federal grand jury in April 2022 and arrested in Laredo, Texas in March 2023. 

In May 2020, Sanchez was convicted of misusing a passport and was sentenced to 15 months in prison. Because of the COVID-19 pandemic, Sanchez requested release on conditions and to self-report to serve her sentence. The Court granted this request and released Sanchez on an appearance bond. Following several extensions of her self-report date, Sanchez failed to surrender to the Bureau of Prisons in June 2021 to serve her sentence. In July 2021, the Court forfeited Sanchez’s secured appearance bond and entered a further default judgment of $47,500 against Sanchez.

The charge of failure to surrender 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. Any sentence on this charge will be served consecutively to the sentence imposed on her prior case. 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; Matthew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Brian Kyes, U.S. Marshal for the District of Massachusetts made the announcement today. Assistant U.S. Attorney William F. Abely, Chief of the Criminal Division is prosecuting the case.

BOSTON – A Cambridge man was sentenced today for purchasing child sexual abuse material (CSAM) with digital currency from the dark web. 

David H. Chang, 29, was sentenced by U.S. District Court Judge Leo T. Sorokin to five years in prison and five years of supervised release. Restitution to victims will be determined at a later date. On Sept. 15, 2023, Chang pleaded guilty to one count of receipt of child pornography. 

In April 2021, Chang was identified as the owner of a cryptocurrency account being used to purchased CSAM from a site on the dark web. During a search of Chang’s apartment in January 2022, approximately 1,700 images and 360 videos depicting CSAM were found of Chang’s electronic devices. The files showed the abuse of minors ranging from approximately two years old to approximately 10 to 12 years old, with some videos up to 50 minutes in length. 

Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Homeland Security Investigations in New Haven (Conn.) provided valuable assistance. Assistant U.S. Attorneys Jessica L. Soto and Benjamin Tolkoff of the Criminal Division prosecuted the case.

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

BOSTON – A Boston man pleaded guilty today to illegally selling a dozen machinegun conversion devices.

Elijah Navarro, 24, pleaded guilty to one count of engaging in the business as a manufacturer or dealer in firearms and two counts of transferring or possessing a machinegun. U.S. District Court Judge Denise J. Casper scheduled sentencing for March 13, 2024. Navarro was initially arrested and charged along with co-defendant Michael Wilkerson in February 2023. The defendants were subsequently indicted by a federal grand jury in March 2023. 

In January 2023, Navarro agreed to sell 12 machinegun conversion devices to an individual in exchange for $1,700. Following a series of communications, Navarro met the individual twice at a pre-arranged location. On Jan. 19, 2023, Navarro sold the first two machinegun conversion devices to the individual for $400 and later, on Jan. 25, 2023, sold the remaining 10 devices for an additional $1,300. 

Navarro does not possess a license to import, manufacture, deal or possess firearms.  

The charge of engaging in the business as a manufacturer or dealer in firearms provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $10,000. The charge of unlawful transferring or possession of a machinegun provides 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. 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 Field Division; and Boston Police Commissioner Michael A. Cox made the announcement today. Assistant U.S. Attorney John T. Dawley of the Organized Crime & Gang 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 Boston man pleaded guilty on Dec. 15, 2023 in federal court in Worcester to his role in a nationwide large-scale cocaine trafficking conspiracy and for distribution of large quantities of fentanyl. 

Francis Jose Perez-Baez, 41, pleaded guilty to conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine, distribution and possession with intent to distribute 400 grams or more of fentanyl and distribution and possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Margaret R. Guzman scheduled sentencing hearing for April 25, 2024. Perez-Baez was charged in November 2021 along with Javier Robledo Perez, Vicente Castro and Carlos Longoria.

Perez-Baez was a Boston-based drug distributor who distributed large quantities of cocaine and fentanyl. Perez-Baez received multiple kilograms of cocaine from a Mexico-based drug trafficking organization that utilized commercial semi-trucks to transport dozens of kilograms of cocaine throughout the United States, including to Massachusetts. 

Over the course of the investigation, Perez-Baez paid the drug trafficking organization nearly $280,000 in drug proceeds for multiple kilograms of cocaine that the organization had previously supplied to him on credit. Additionally, Perez-Baez sold fentanyl to a cooperating witness on multiple occasions – over 500 grams of fentanyl in August 2020 and 200 grams of fentanyl in April 2021.

On March 31, 2023, Longoria was sentenced by U.S. District Court Judge Mark G. Mastroianni to 34 months in prison and two years of supervised release after previously pleading guilty. 

The charge of conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine and the charge of distribution and possession with intent to distribute 400 grams or more of fentanyl both carry a minimum mandatory sentence of 10 years and up to life in prison, at least five years of supervised release, and a fine of up to $10 million. The charge of distribution and possession with intent to distribute 40 grams or more of fentanyl carries a mandatory minimum sentence of five years in prison and up to life, 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; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. The Drug Enforcement Administration’s Laredo and Dallas Divisions provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division is 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.

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 former bookkeeper for a Lexington interior design firm pleaded guilty today to bank fraud charges in connection with her embezzling more than $180,000 from her former employer. 

Christina Iannelli, 51, of Sudbury, pleaded guilty to seven counts of bank fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for March 14, 2024. Iannelli was arrested and charged in March 2022. 

Iannelli was an independent contractor for an interior design firm based in Lexington. Beginning in or about October 2018, Iannelli prepared dozens of fraudulent invoices with inflated totals derived from inaccurate math, and then issued herself checks for the inflated amounts due from the firm’s checking account. Additionally, beginning in or about July 2019, Iannelli issued herself dozens of additional unauthorized checks. In both instances, Iannelli used a signature stamp in the name of the firm’s owner to issue the fraudulent checks.

To conceal the fraudulent payments, Iannelli made false entries in the firm’s accounting records. In total, Iannelli embezzled more than $30,000 through inflated compensation checks and more than $150,000 through additional unauthorized checks.

The charge of bank fraud provides for a sentence of up to 30 years in prison, five 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; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Lexington Police Chief Michael McLean made the announcement today. Valuable assistance was provided by the Sudbury Police Department. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.

BOSTON – A Providence man pleaded guilty yesterday in federal court in Boston to leading a drug trafficking organization (DTO) operating in Southeastern Massachusetts and Rhode Island. 

Estarlin Ortiz-Alcantara, 37, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one count of possession with intent to distribute 400 grams or more of fentanyl. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for March 7, 2024. Ortiz-Alcantara was charged in July 2022 and subsequently indicted by a federal grand jury in August 2022.

Between approximately February 2021 and July 2022, Ortiz-Alcantara managed a DTO that distributed fentanyl across in Southeastern Massachusetts and Rhode Island. As part of his DTO’s operations, Ortiz-Alcantara controlled a stash house in Fall River to store, process and distribute fentanyl and employed numerous individuals who assisted with mixing, packaging and distributing fentanyl. During a search of Ortiz-Alcantara’s stash house in July 2022, more than 12 kilograms of fentanyl, as well as items consistent with running a fentanyl business, including blenders, a hydraulic press and baggies were seized.

Each of the charges provide for a sentence of at least 10 years and up to life in prison, at least five years and up to life of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; New Bedford Police Chief Paul Oliveira; and Fairhaven Police Chief Michael J. Myers made the announcement today. Special assistance was provided by the Massachusetts State Police; Homeland Security Investigations; Bristol County Sherriff’s Office; and the Fall River, Taunton, Attleboro, Scituate, Yarmouth, Providence (R.I.) and West Warwick (R.I.) Police Departments. Assistant U.S. Attorney John T. Mulcahy 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. 

BOSTON – A Guatemalan man has pleaded guilty in federal court in Boston to unlawfully reentering the United States after deportation.

Romeo Waldemar Gabriel Lopez, 32, pleaded guilty on Dec. 12, 2023 to one count of unlawful reentry of a deported alien before U.S. District Court Judge Myong J. Joun, who scheduled sentencing for Feb. 13, 2024. 

Gabriel Lopez was deported in April 2016, October 2016, April 2017, and March 2020.  Sometime after his March 2020 removal, Gabriel Lopez unlawfully reentered the United States. On Sept. 8, 2023, he was arrested by immigration authorities who learned of his arrest in an unrelated state case.  

The charge of unlawful reentry of a deported alien provides for a sentence of up to two years in prison, one year 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. Assistant U.S. Attorney John J. Reynolds III of the Major Crimes Unit is prosecuting the case.

BOSTON – The former owner of a beachfront restaurant and bar in Plymouth was sentenced today for concealing business income from the Internal Revenue Service (IRS) and paying restaurant employees under the table. 

Rudolph Ferrucci, 66, of Plymouth, was sentenced by U.S. District Court Judge Angel Kelley to two years’ probation, with the first six months to be served on home confinement, 400 hours of community service and a fine of $5,500. On Aug. 23, 2023, Ferrucci pleaded guilty to one count of tax evasion and one count of failure to collect and pay over employee taxes. 

Ferrucci owned and operated Sandy’s, a seasonal, cash-only restaurant and bar. From 2016 through 2020, Ferrucci diverted a portion of Sandy’s sales receipts for cash payments to suppliers and employees and to personal income for himself and his spouse. Ferrucci kept separate sets of financial records for Sandy’s, including one omitting diverted sales receipts, which Ferrucci’s tax return preparer used to report Sandy’s income to the IRS. As a result, Ferrucci underreported his and his spouse’s personal income tax obligations by $1.2 million over those four years, causing a loss to the IRS of over $250,000.

Additionally, Ferrucci paid Sandy’s employees more than $315,000 in cash wages, memorialized in a handwritten “second set of books” and not recorded in Sandy’s payroll records or tax returns. By not reporting these cash wages to the IRS, Ferrucci caused Sandy’s to fail to pay $75,000 in employment taxes owed to the IRS.

Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit prosecuted the case. 

BOSTON – A Dominican woman has been sentenced for possessing seven kilograms of fentanyl as well as one kilogram of fentanyl and fentanyl analogue intended for distribution.

Ana Checo, 42, was sentenced by U.S. District Court Judge Indira Talwani on Dec. 7, 2023 to 135 months in prison and five years of supervised release. On Sept. 6, 2023, Checo pleaded guilty to one count of possession with intent to distribute 400 grams or more of fentanyl and 100 grams or more of valeryl fentanyl and one count of money laundering conspiracy.

“The devastating impact fentanyl continues to have on our communities cannot be overstated,” said Acting United States Attorney Joshua S. Levy. “This sentence underscores our unwavering determination to identify and bring to justice those responsible for putting deadly fentanyl on our streets. Our office will continue to use every resource at our disposal to dismantle criminal enterprises that seek to profit off of addiction and misery.” 

“Fentanyl is causing tremendous damage to the state of Massachusetts,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division. “Let this sentence be a warning to those traffickers who are distributing this poison in order to profit and destroy people’s lives. DEA’s top priority is combatting the opioid epidemic by working with our local, county, state and federal partners to bring to justice anyone who distributes this deadly drug.”

In June 2019, Checo was identified as a member of a large-scale drug trafficking and money laundering organization working with drug suppliers based in Sinaloa, Mexico. Specifically, Checo was responsible for receiving narcotics – namely fentanyl – from the drug suppliers for distribution in Massachusetts, as well as delivering drug proceeds in bulk cash to money launderers who laundered the proceeds back to the suppliers in Mexico.

In June 2019, Checo delivered $58,510 in drug proceeds to an undercover officer for laundering. In July 2019, a search of Checo’s residence resulted in the recovery of over 12 kilograms of narcotics – including approximately seven kilograms of fentanyl, four kilograms of tramadol, one kilogram of a fentanyl and fentanyl analogue mixture and one kilogram of a hallucinogen. The drugs were found stored in bags inside Checo’s bedroom closet as well as her daughter’s bedroom closet. Also seized was $18,325 in cash as well as several notebooks that detailed drug transactions dating back to 2017.  
 
In April 2020, Checo arranged to deliver $250,000 in bulk cash to an undercover agent posing as a money launderer who had accepted a contract to launder the money from a money broker. Similarly, in April and May 2021, Checo arranged to deliver $100,000 to undercover agents posing as money launderers who had accepted contracts to launder the money from money brokers.

In April 2020, nearly $250,000 in bundled cash was seized from Checo as she was traveling to deliver the money to an undercover officer for laundering. Similarly, over two separate occasions in April and May 2021, Checo delivered a total of $200,000 to undercover agents for laundering. On May 26, 2021, in Peabody, Mass., Checo met with a tractor trailer driver and received a suitcase that contained 55 kilograms of fentanyl – worth over $1 million. The fentanyl was ultimately seized later that day.   

Acting U.S. Attorney Levy and DEA SAC Boyle made the announcement. Assistant U.S. Attorney Katherine Ferguson of the Narcotics & Money Laundering Unit prosecuted 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 Canton orthopedic surgeon has been convicted by a federal jury in Boston for his role in a health care fraud scheme.  

Dr. Olarewaju James Oladipo, 60, of Canton, was convicted on Dec. 12, 2023 of 10 counts of health care fraud. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for March 12, 2024 at 1 pm. Oladipo was arrested and charged in March 2022. 

“In the midst of an opioid epidemic that is claiming thousands of lives, Dr. Oladipo deliberately exploited the medical system for financial gain, becoming one of the state’s most prolific prescribers of opioids,” said Amanda Strachan, Chief of the U.S. Attorney’s Office’s Criminal Division. “Our office remains steadfast in its commitment to aggressively pursue those who compromise the sanctity of our health care system – especially those who use opioids to fuel their schemes.”

“Dr. Oladipo is no longer just one of the top prescribers of highly addictive opioids in Massachusetts—he is now a convicted felon—for cheating federally funded health care programs, taxpayers, and patients, for work he did not do,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The unscrupulous tactics used in this scheme are what drive our investigators on a daily basis to combat healthcare fraud.”

“By submitting fraudulent medical claims and falsifying patient records, Dr. Oladipo put greed and personal gain above his professional responsibilities,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “This conviction underscores the commitment of HHS-OIG and our law enforcement partners to protecting the integrity of taxpayer-funded federal health care programs and holding criminals accountable for their actions.”

“The U.S. Postal Service Office of Inspector General is dedicated to protecting the public’s safety and the U.S. Postal Service. The special agents of the USPS OIG will tirelessly investigate those who choose to defraud federal benefit programs and put profits above the safety of their patients. This verdict is a clear message that the USPS OIG is dedicated to rooting out corruption and bringing those responsible for these crimes to justice. The USPS OIG is thankful for the great longstanding relationships we have developed with our law enforcement partners and the U.S. Attorney’s Office to combat healthcare frauds,” said Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General (USPS-OIG), Northeast Area Field Office.

From approximately January 2016 through December 2019, Oladipo devised and executed a scheme to defraud health care benefit programs by falsely billing for patient visits. Specifically, Oladipo used billing codes for more complex—and thus more expensive—services that were not provided (a practice that is sometimes referred to as “upcoding”). Oladipo falsified medical records of patient visits to reflect examinations and services that were not performed. During the four-year period, Oladipo frequently billed for more than 60 patients per day and sometimes more than 90 patients per day. The result was that many, if not most, of Oladipo’s patient visits on such days could have only lasted five minutes or less. However, Oladipo used billing codes that typically corresponded to visits of 15, 25, 30, or even 45 minutes. Additionally, Oladipo ensured this high flow of patients to his practice by prescribing powerful, highly addictive opioids at a rate that made him one of the top prescribers of such drugs in Massachusetts.

The charges of health care fraud and conspiracy to commit health care fraud each provide for a sentence of up to 10 years in prison, one year 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.

The U.S. Attorney’s Office for the District of Massachusetts, FBI SAC Cohen, HHS-OIG SAC Coviello and USPS-OIG SAC Modafferi made the announcement. Valuable assistance was provided by the Massachusetts Attorney General’s Office; the National Insurance Crime Bureau; and the Drug Enforcement Administration. Assistant U.S. Attorneys Evan D. Panich and William B. Brady are prosecuting the case.   

BOSTON – A former employee of a Bristol County industrial company was arrested and charged today in connection with a scheme to embezzle more than $280,000 from her employer.  

Jasmyne Botelho, 41, was charged with one count of wire fraud. Botelho was arrested this morning and, following an initial appearance in federal court in Boston today, was released on conditions.

According to the charging documents, between September 2017 and April 2020, Botelho stole at least $280,000 from her employer. Botelho allegedly directed payments purportedly intended for the company’s vendors to bank accounts she controlled and used company funds to make payments on personal credit cards and auto loans. To hide her scheme, Botelho allegedly falsified her employer’s books and records to make it appear as though the payments had in fact been sent to legitimate vendors rather than to Botelho.  

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. 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 Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.

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

BOSTON – A Texas man pleaded guilty today in federal court in Boston to threatening a Boston doctor who provided care for members of the transgender community.

Matthew Jordan Lindner, 39, of Comfort, Texas, pleaded guilty to one count of interstate transmission of threatening communication. Senior U.S.  District Judge William G. Young scheduled sentencing for Feb. 6, 2024. Lindner was arrested in Texas and charged on Dec. 2, 2022. He was subsequently indicted by a federal grand jury in Boston on Dec. 15, 2022. 

In August 2022, inaccurate information spread online regarding procedures doctors at Boston Children’s Hospital were performing for gender nonconforming children. On Aug. 31, 2022, in the midst of social media vitriol directed at health care providers who serve transgender patients, Lindner called the Boston-based National LGBTQIA+ Health Education Center and left a threatening voicemail targeting one of the Center’s affiliated doctors. In that voicemail, Lindner said: “You sick motherf*****s, you’re all gonna burn. There’s a group of people on their way to handle [victim]. You signed your own warrant, lady. Castrating our children. You’ve woken up enough people. And upset enough of us. And you signed your own ticket. Sleep well, you f****** c***.”

“Doctors who serve pediatric patients, including the victim in this case and staff at Boston Children’s Hospital, have dedicated their professional lives to treating children. They should be celebrated for their contributions to so many in their time of need. Instead, this defendant threatened a doctor with violence just for doing her job. This conduct is deplorable and sends a chill through the medical community,” said Acting United States Attorney Joshua S. Levy. “Hate and bigotry have no place in Massachusetts. Our office will stop at no end to protect the safety of all members of our community. We will continue to do all that we can to ensure individuals who engage in such behavior are identified, prosecuted and held accountable.”

“There is no way to undo the damage Matthew Lindner did to this physician, with his hateful, repulsive, and threatening behavior,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “No one should have to live in fear of violence because of who they are, what kind of work they do, or what they believe. This case, sadly, is just one example of the FBI’s ongoing commitment to bring to justice anyone who violates federal law, including those who threaten violence.”

After leaving the threatening voicemail, Lindner continued to try to contact the victim. To that end, he called the victim’s former medical practice and a university where the victim was a faculty member. 

The charge of interstate transmission of threatening communication 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. 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. Attorneys Brian A. Fogerty and K. Nathaniel Yeager of the Criminal Division are prosecuting the case.

BOSTON – An Ayer man pleaded guilty today in federal court in Boston to committing a cyberattack against the computer network of his former employer, an Essex County public high school.

Conor LaHiff, 30, pleaded guilty to one count of unauthorized damage to protected computers. U.S. Chief District Court Judge F. Dennis Saylor IV scheduled sentencing for March 20, 2024. Among other conditions of release, Judge Saylor required that LaHiff notify prospective employers of his guilty plea, after learning that LaHiff had obtained a similar position at another public high school after being terminated for the charged conduct. LaHiff was charged on Nov. 29, 2023.

LaHiff was employed as a desktop and network manager at an Essex County public high school until he was terminated in June 2023. After he was fired, LaHiff used his administrative privileges to deactivate and delete thousands of Apple IDs from the school’s Apple School Manager account – software used to manage student, faculty and staff information technology resources. LaHiff also deactivated more than 1,400 other Apple accounts and other IT administrative accounts and disabled the school’s private branch phone system, which left the school’s phone service unavailable for approximately 24 hours.

The charge of unauthorized damage to protected computers provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and 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 investigative assistance was provided by the Massachusetts State Police and the Haverhill Police Department. Assistant U.S. Attorney Mackenzie A. Queenin of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.

BOSTON – The former operator of two municipal golf courses in Western Massachusetts has been convicted by a federal jury in Springfield of conspiring to defraud the United States and making a false statement. 

Kevin M. Kennedy, 45, of East Longmeadow was convicted on Dec. 11, 2023 of conspiracy to defraud the United States and making a false Statement to a federally insured financial institution. The defendant was acquitted of embezzlement from a local government receiving federal benefits, wire fraud, money laundering and unlawful monetary transactions. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for March 1, 2024. 

“This guilty verdict underscores the serious consequences for those who conspire to defraud the United States. No one is above the law, and we will vigorously pursue those who engage in illicit schemes to line their own pockets,” said Acting United States Attorney Joshua S. Levy. 

“The jury found that Kevin Kennedy defrauded the United States for the sole purpose of enriching himself. This type of fraud has consequences for every American taxpayer,” said Harry Chavis Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston. “As a result of this verdict, Kennedy now stands as a convicted felon, and will be sentenced for his actions.”

Kennedy owned and operated Kennedy Golf Management Inc., through which he managed the City of Springfield’s two public golf courses, Franconia Golf Course and Veterans Memorial Golf Course. According to court documents and evidence presented at trial, Kennedy conspired with two individuals to evade taxes he owed on money received from his company. Kennedy paid for, mostly in cash, the construction of two custom homes in East Longmeadow and on Cape Cod. To induce the bank to provide him a mortgage for part of the East Longmeadow home, Kennedy submitted a home purchase contract to the bank that falsely reflected a total purchase price reduced by the $160,000 cash downpayment he had made.

Just prior to trial, Kennedy pleaded guilty to four counts of filing a false individual income tax return for 2011 through 2014, during which he also admitted to filing a false return in 2009 and 2010. For each of those years, Kennedy did not report to his return preparer all of the cash and checks his management company received from his operation of the golf courses.

The charge of conspiracy to defraud the United States provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of making a false statement provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million. The tax fraud charges each provide for a sentence of up to three years in prison, three years of supervised release, and a fine of $100,000. 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; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and IRS SAC Chavis made the announcement today. Assistant U.S. Attorney Steven H. Breslow and Neil L. Desroches of the Springfield Branch Office and Trial Attorney Eric B. Powers of the Justice Department’s Tax Division are prosecuting the case.

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

BOSTON – Former Massachusetts State Police (MSP) Lieutenant Daniel J. Griffin and former MSP Sergeant William W. Robertson were convicted by a federal jury in Worcester yesterday of conspiracy, federal programs fraud and wire fraud in connection with an overtime scheme dating back to 2015. Just prior to trial, on Nov. 27, 2023, Griffin pleaded guilty to four additional counts of wire fraud and 11 counts of filing false tax returns.

Griffin, 60, of Belmont and Robertson, 61, of Westborough, were each convicted of one count of conspiracy, one count of theft concerning a federal program and four counts of wire fraud. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for March 20, 2024. The defendants were indicted by a federal grand jury in December 2020. 

From 2015 through 2018, Griffin, Robertson and other troopers in the Traffic Programs Section at State Police Headquarters in Framingham, conspired to steal thousands of dollars in federally funded overtime by regularly arriving late to, and leaving early from, overtime shifts funded by grants intended to improve traffic safety. During the course of the conspiracy, Griffin made and approved false entries on forms and other documentation to conceal and perpetuate the fraud. 

When the MSP overtime misconduct came to light in 2017 and 2018, Griffin, Robertson and their co-conspirators took steps to avoid detection by shredding and burning records and forms. After an internal inquiry regarding missing forms, Griffin submitted a memo to his superiors that was designed to mislead them by claiming that missing forms were “inadvertently discarded or misplaced” during office moves.  

Additionally, Griffin spent significant time running his security business, Knight Protection Services, during hours that he was collecting regular MSP pay and overtime pay. From 2012 to 2019, Griffin collected almost $2 million in KnightPro revenue. Of that total, Griffin hid over $700,000 in revenue from the IRS and used hundreds of thousands of dollars in KnightPro income to fund personal expenses, such as golf club expenses, car payments, private school tuition and expenses related to his second home on Cape Cod.   

Prior to yesterday's jury conviction, Griffin pleaded guilty on Nov. 27, 2023 to defrauding a private school attended by two of his children from at least 2016 to 2019 by concealing his KnightPro income and filing materially misleading financial aid applications, which understated his income and assets by hundreds of thousands of dollars. Despite Griffin’s lucrative MSP salary and KnightPro business, Griffin obtained over $175,000 in financial aid from the private school over the course of several years.

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of federal program fraud 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 conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000.  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.

The U.S. Attorney’s Office for the District of Massachusetts; Christopher A. Scharf, Special Agent in Charge, U.S. Department of Transportation Office of Inspector General, Northeast Region; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Dustin Chao and Adam Deitch of the Public Corruption Unit are prosecuting the case.

BOSTON – A Fall River man has been arrested on charges related to passport fraud and other offenses.

Hector Eduardo Arias Mejia, 43, was charged with misuse of a Social Security number, aggravated identity theft and making a false statement in an application for a United States passport. Arias Mejia will remain in custody pending a detention hearing scheduled for Dec. 20, 2023.

According to court documents, Arias Mejia, a citizen of the Dominican Republic, applied for a United States passport and a Massachusetts Registry of Motor Vehicles Real ID using the name and other biographical information of a resident of Puerto Rico. Arias Mejia allegedly used the stolen identity when he was previously arrested, charged and convicted on numerous state court cases.

The charge of misuse of a Social Security number provides for a sentence of up to five years of in prison, three years of supervised release and a fine of $250,000. The charge of making a false statement in an application for a United States passport 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 aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.

Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement. Valuable assistance in the investigation was provided by Homeland Security Investigations in Santo Domingo; Puerto Rico Department of Public Safety; U.S. Department of State’s Diplomatic Security Service; Social Security Administration, Office of Inspector General; U.S. Department of Health & Human Services, Office of Inspector General; U.S. Postal Inspection Service; and Massachusetts State Police. Assistant U.S. Attorney David G. Tobin 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 Virginia man was sentenced today in federal court in Boston for participating in a pump-and-dump securities fraud scheme involving the Massachusetts-based company Cannabiz Mobile, Inc.

Anthony Jay Pignatello, 53, of Winchester, Va., was sentenced by U.S. Senior District Court Judge George A. OToole, Jr. to five months probation, with the first six weeks to be served on home detention. He was also ordered to pay $41,547 in forfeiture.  In March 2021, Pignatello pleaded guilty to one count of conspiracy to commit securities fraud.

Between 2012 and 2015, Pignatello and co-conspirator Christopher R. Esposito worked together to conceal their control over Cannabiz Mobile and to use backdated promissory notes and other false and misleading documents to fraudulently obtain free-trading shares in the company. Among other steps taken in furtherance of the scheme, Esposito caused another individual to be installed as the company’s chairman, president and CEO, and Pignatello then drafted numerous backdated and false documents for the executive to sign. In reality, the executive reported to Esposito. Pignatello and Esposito then arranged for a promotional campaign in October 2014 to artificially inflate the value and trading volume of Cannabiz Mobile, Inc’s stock so that they could secretly sell their shares. In total, Pignatello personally sold over 800,000 shares fraudulently obtained as part of the scheme.

On Nov. 14, 2023, Esposito was sentenced by U.S. District Court Judge Patti B. Saris to five years of probation, with three months to be served at a halfway house. Esposito was also ordered to pay $20,294 in forfeiture in connection with the pump-and-dump of Cannabiz Mobile. Additionally, he was ordered to pay $61,693.50 in restitution to investors who lost money in a separate purported business venture that Esposito pitched involving the company Code2Action, Inc. Between August 2019 and February 2020, Esposito represented to investors that he would take Code2Action, Inc. public via a reverse merger and he solicited investments in the company for that purpose. The reverse merger, however, never took place. 

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 James R. Drabick of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
 

BOSTON – A Stoughton man was sentenced today in federal court in Boston for using the identifying information of another person to apply for a driver’s license and United States passport. 

Wilfrido Baez Villar, 49, was sentenced by U.S. Senior District Court Judge William G. Young to 18 months’ probation, with the first six months to be served in home confinement. On May 8, 2023, Baez Villar pleaded guilty to one count of false representation of a Social Security number and one count of making a false statement in an application for a passport. 

Baez Villar first attempted to enter the United States in December 1994 using an altered passport from the Dominican Republic issued to another individual. The fraud was discovered when he arrived in New York City and Baez Villar thereafter voluntarily returned to the Dominican Republic. 

Sometime thereafter, Baez Villar unlawfully reentered the United States.  In April 1996, he used the identity of a second victim to fraudulently obtain a Massachusetts driver’s license.  In November 1998, he used the identity of a third victim to receive an ID card from the Massachusetts Registry of Motor Vehicles. 

In December 1998, Baez Villar applied for and received another Massachusetts driver’s license in the name of a fourth victim and, between August 1999 and January 2018, applied for and received a duplicate and/or renewed license in that individual’s name on eight other occasions.

In January 2019, Baez Villar applied for and received a replacement Real ID/Massachusetts driver’s license, again using the fourth victim’s identity. In December 2019, Baez Villar again used the fourth victim’s identity to apply for a United States passport. 

Acting United States Attorney Joshua S. Levy; Sharon B. MacDermott, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Roberto Coviello, Special Agent in Charge of U.S. Department of Health & Human Services, Office of the Inspector General, Office of Investigations, Boston Regional Office, made the announcement. Special Assistant U.S. Attorney James J. Nagelberg and Assistant U.S. Attorney Mackenzie A. Queenin of the Criminal Division prosecuted the case.

BOSTON – A Methuen woman pleaded guilty today in federal court in Boston to stealing Social Security benefits intended for her child.   

Karen Silva-Brown, 57 pleaded guilty to one count of theft of public funds before U.S. District Court Judge Allison D. Burroughs, who scheduled sentencing for March 7, 2024. Silva-Brown was arrested and charged in November 2022.

In November 2014 through October 2018, Silva-Brown embezzled approximately $60,810 in Social Security benefits that were intended for her minor child. In March 2012, when Silva-Brown applied for and began receiving benefits on behalf of her child as a representative payee, the Social Security Administration (SSA) informed her of her obligation to notify SSA if her child left her custody. However, Silva-Brown did not notify SSA when she lost custody of her child in November 2014. Instead, Silva-Brown provided two fraudulent accountings to SSA in June and July 2016 where she claimed that her child still lived with her and that she spent all the Social Security benefits she received for her child’s care. In reality, Silva-Brown used the vast majority of the stolen funds to pay her own bills.

The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

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

BOSTON – A Colombian man pleaded guilty today in federal court in Boston to money laundering.
 
Luis Fernando Galindo-Ramos, 55, pleaded guilty to money laundering conspiracy, laundering of monetary instruments and engaging in monetary transactions in criminally derived property. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for March 6, 2024. Galindo-Ramos was indicted by a federal grand jury in August 2021 and arrested in Cali, Colombia in November 2021. He was extradited to the United States on June 8, 2023.

In or about August 2016, an investigation began into a sophisticated money laundering organization located primarily in Cali, Colombia that laundered approximately $1 million in drug proceeds through intermediary banks in the United States – including banks in Massachusetts – by use of the Colombian Black Market Peso Exchange (BMPE). 

Galindo-Ramos arranged the domestic transfer of substantial amounts of bulk cash within the United States. He maintained the security of those funds during the transfers through the exchange of passcodes. The funds were subsequently integrated into bank accounts located in the United States and held in the names of businesses and individuals in order to repay drug suppliers in Colombia. By using the BMPE, Galindo-Ramos conspired to conceal drug trafficking activity and proceeds from law enforcement. Approximately $550,000 in laundered bulk currency was seized during the investigation.

The charges of money laundering conspiracy and laundering of monetary instruments each provide 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 crime of engaging in monetary transactions in criminally derived property provides 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, or twice the amount involved. Sentences are imposed by a federal district court judge based upon the U.S. 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 Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Judicial Attaché’s office at the U.S. Embassy in Bogota provided critical assistance in securing the arrest and extradition of Galindo. Assistant U.S. Attorneys Jared C. Dolan and Alathea E. Porter 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.