District of Massachusetts

BOSTON – A Fitchburg man was sentenced yesterday in federal court in Worcester for his role in a wide-ranging fentanyl, heroin, crack, and cocaine trafficking conspiracy.

Ivan Torres, 32, of Fitchburg, was sentenced by U.S. Senior District Court Judge Timothy S. Hillman to 37 months in prison, followed by three years of supervised release. On March 10, 2023, Torres pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. 

According to court documents, following a fatal fentanyl overdose in September 2018, an investigation began into a drug trafficking organization in the Fitchburg area. Beginning in July 2019, court authorized interceptions of wire and electronic communications to and from telephones used by members and suppliers of the drug trafficking organization revealed that Torres was a cocaine dealer who supplied cocaine to the drug trafficking organization. 

Over the course of the investigation, over 1.8 kilograms of a heroin/fentanyl mixture, over 3.6 kilograms of cocaine, over 50 grams of crack cocaine, a stolen, loaded handgun, drug manufacturing equipment and over $376,000 in U.S. currency were seized.  
    
Torres is the 12th defendant to be sentenced in this case.  All 18 defendants have been convicted – either by guilty plea or jury conviction following trial.  The remaining convicted defendants are scheduled to be sentenced in September and October 2023.

Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police, made the announcement today. The Fitchburg and Lunenburg Police Departments, U.S. Postal Inspection Service and Massachusetts State Police provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division 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 Tennessee man was sentenced today in federal court in Boston for trafficking at least 30 firearms in the Boston area. 

John Pierre, 27, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to two years in prison and three years of supervised release. On Feb. 17, 2022, Pierre pleaded guilty to an Indictment. 

In March 2022, Pierre was arrested at South Station in Boston carrying a bag containing 11 firearms, large capacity magazines and numerous rounds of ammunition. A subsequent investigation revealed that Pierre had moved from Massachusetts to Tennessee where he legally purchase firearms. Additionally, Pierre travelled back and forth from Tennessee to Massachusetts on numerous occasions with at least 30 firearms that he illegally sold in the Boston area as part of his gun trafficking operation.

Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives; and Boston Police Commissioner Michael Cox made the announcement today. Assistant U.S. Attorney John T. Dawley Jr. of the Organized Crime & Gang Unit prosecuted 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 Miami woman was sentenced today in federal court in Boston for fraudulently obtaining over $1 million in pandemic-related loans using the stolen identities of more than 10 individuals and then using those funds for personal expenses, including chartering a private jet and renting a luxury apartment.

Danielle Miller, 32, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to five years in prison and three years of supervised release. Miller was also ordered to pay restitution in an amount that will be determined at a later date. In March 2023, Miller pleaded guilty to three counts of wire fraud and two counts of aggravated identity theft.

“Ms. Miller isn’t an influencer, she is a convicted felon. She stole the identities of innocent people to steal over $1.2 million in pandemic-relief loans that should have gone to people in need. In a quest for fleeting social media stardom, Ms. Miller relied on fraud to fund a lavish lifestyle of private jets, luxury apartments and other accoutrements of wealth. Today's sentencing should make it crystal clear that curating a high-society social media presence on the backs of hardworking taxpayers is a path to prison, not fleeting fame,” said Acting United States Attorney Joshua S. Levy.

“Danielle Miller stole critical financial support from the hands of people who needed it during one of the most turbulent economic periods in recent history. While other Americans worried about how to keep food on the table, Miller spent her ill-gotten gains on hotels and luxury goods, heartlessly flaunting this fraudulent lifestyle on social media. Today’s sentence is the result of a collaborative team of investigators committed to uncovering fraud and ensuring taxpayer dollars are going where they should and not into the hands of scammers like Miller,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England.

“Danielle Miller engaged in a scheme targeted at the Massachusetts Department of Unemployment Assistance, as well as five other state workforce agencies, to fraudulently obtain pandemic-related unemployment benefits in the names of identity theft victims. Miller also utilized stolen identities to fraudulently apply for Economic Injury Disaster Loans. Miller’s schemes sought to secure more than $1 million in stolen benefits set aside by the federal government to assist Americans struggling with the economic effects of the COVID-19 pandemic. We will continue to work with our law enforcement partners to safeguard these critical benefit programs for those who need it,” said Jonathan Mellone, Special Agent-in-Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General.

From in or around July 2020 through May 2021, Miller devised and executed a scheme to fraudulently obtain pandemic-related relief loans funded by the federal government – including Economic Injury Disaster Loan funds through the U.S. Small Business Administration (SBA) as well as Pandemic Unemployment Assistance and related unemployment benefits. To execute the scheme, Miller used the personal identifying information of more than 10 individuals and used fake business names to apply for and receive more than $1 million in government benefits. 

Additionally, Miller possessed counterfeit driver’s licenses in the victims’ names but bearing Miller’s photograph. In August 2020, Miller used a counterfeit driver’s license in the name of a Massachusetts victim to arrange a Gulfstream private jet charter flight from Florida to California, where she stayed at a luxury hotel under the same victim’s name. In a separate instance, Miller used the identity of another victim to rent a luxury apartment in Florida. 

Miller maintained an active social media presence via her Instagram account, which had more than 34,000 followers. There, Miller posted her extravagant use of the fraud proceeds and stolen identities, publicizing her purchasing of luxury goods and renting of luxury accommodations. Posts to this account included a post showing Miller at luxury hotels in California where transactions were made using the bank account in one of the victim’s names. 

Acting U.S. Attorney Levy; HSI SAC Krol; DOL-OIG SAC Mellone; Amaleka McCall-Brathwaite, Special Agent in Charge of the Small Business Administration Office of Inspector General (SBA-OIG), Eastern Region; and Abington (Mass.) Police Chief David DelPapa made the announcement today. Valuable assistance was provided by Homeland Security Investigations in Miami and the Massachusetts State Police. Assistant U.S. Attorneys William F. Abely, Chief of the Criminal Division and Benjamin A. Saltzman of the Securities Financial & Cyber Fraud Unit prosecuted the case.

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

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 Russian businessman was sentenced today in federal court in Boston for his involvement in an elaborate hack-to-trade scheme that netted approximately $93 million through securities trades based on confidential corporate information stolen from U.S. computer networks.

Vladislav Klyushin, a/k/a “Vladislav Kliushin,” 42, of Moscow, Russia, was sentenced by U.S. District Court Judge Patti B. Saris to nine years in prison. Klyushin was also ordered to forfeit $34,065,419 and pay restitution in an amount that will be determined at a later date. In February 2023, Klyushin was convicted by a federal jury of securities fraud, wire fraud, gaining unauthorized access to computers, and conspiracy to commit those crimes. Klyushin was arrested in Sion, Switzerland in March 2021 and extradited to the United States in December 2021. 

Klyushin was charged along with two Russian co-conspirators: Ivan Ermakov and Nikolai Rumiantcev. Two others, Mikhail Vladimirovich Irzak and Igor Sergeevich Sladkov, were charged in a separate indictment. All four co-conspirators remain at large. In July 2018, a federal grand jury in Washington, D.C. indicted Ermakov in connection with his alleged role in a scheme to interfere with the 2016 United States elections by way of computer hacking. In October 2018, Ermakov was also charged by a  federal grand jury in Pittsburgh in connection with his alleged role in hacking and related disinformation operations targeting international anti-doping agencies, sporting federations and anti-doping officials.

“Mr. Klyushin hacked into American computer networks to obtain confidential corporate information that he used to make money illegally in the American stock market,” said Acting United States Attorney Joshua S. Levy. “He thought he could get away with his crimes by perpetrating them from a foreign base, hidden behind layers of fake domain names, virtual private networks, and computer servers rented under pseudonyms and paid for with cryptocurrency. He found out otherwise, and will now spend nearly a decade of his life in a U.S. prison. This case should send a message to criminals around the world that their location does not provide anonymity and the reach of American law enforcement is long. Anyone who defrauds American companies, markets or investors, will be found and prosecuted, regardless of where they hide, or how long it takes.”. 

“Russian businessman Vladislav Klyushin is a sophisticated hacker who engineered a global get-rich-quick scheme that defrauded unsuspecting American businesses of approximately $93 million. He hacked into U.S. computer networks, stole non-public information, and illegally traded on it,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “This case demonstrates how cybercrime knows no boundaries and justice will not stop at international borders. The FBI will not stand idly by and allow criminals like him to launch intrusive cyber-attacks to meddle in our financial markets. We are committed to working with our public and private sector partners to stop computer intrusions and prevent further harm.”

Klyushin, Ermakov and Rumiantcev worked at M-13, a Moscow-based information technology company that Klyushin owned. M-13 offered penetration testing and “Advanced Persistent Threat (APT) emulation,” – both services that seek exploitable vulnerabilities in a computer system via hacking techniques, purportedly for defensive purposes. M-13’s website indicated that the company’s “IT solutions” were used by “the Administration of the President of the Russian Federation, the Government of the Russian Federation, federal ministries and departments, regional state executive bodies, commercial companies and public organizations.” In addition to these services, Klyushin invested the money of several investors in his hack-to-trade scheme, and took a cut of up to 60 percent of their profits.

Trial evidence showed that, between at least in or about January 2018 and September 2020, Klyushin, and allegedly Ermakov, Irzak, Sladkov and Rumiantcev, conspired to use stolen earnings information to trade in the securities of companies that are publicly traded on U.S. national securities exchanges, including the NASDAQ and the NYSE, in advance of public earnings announcements. Using the same malicious hacking techniques M-13 advertised to customers, Klyushin and, allegedly his co-conspirators, obtained inside information by hacking into the computer networks of two U.S.-based filing agents that publicly-traded companies used to make quarterly and annual filings through the U.S. Securities and Exchange Commission (SEC). Specifically, Klyushin, and allegedly his co-conspirators, deployed malicious infrastructure capable of harvesting and stealing employees’ login information and used proxy (or intermediary) computer networks outside of Russia to conceal the origins of their activities. With this access, Klyushin, and allegedly his co-conspirators, viewed and downloaded material non-public information, such as quarterly and annual earnings reports that had not yet been filed with the SEC or disclosed to the general public, for hundreds of companies – including Capstead Mortgage Corp., Tesla, Inc., SS&C Technologies, Roku and Snap, Inc. Many of the illegally obtained earnings reports were downloaded through a computer server located in downtown Boston.

Armed with this information before it was disclosed to the public, Klyushin, and allegedly his co-conspirators, knew ahead of time, among other things, whether a company’s financial performance would meet, exceed or fall short of market expectations – and thus whether its share price would likely rise or fall following the public earnings announcement. Klyushin then traded based on that stolen information in brokerage accounts held in his own name and in the names of others. Klyushin, and allegedly his co-conspirators, also distributed their trading across accounts they opened at banks and brokerages in several countries, including Cyprus, Denmark, Portugal, Russia and the United States, and misled brokerage firms about the nature of their trading activities. 

Evidence presented at trial demonstrated that the times in which the filing agents were hacked corresponded with the times in which Klyushin, and allegedly his co-conspirators, made profitable trades. Additionally, of the more than 2,000 earnings events around which Klyushin and allegedly his co-conspirators traded between January 2018 and September 2020, more than 97 percent were filed with the SEC by the victim filing agents. Testimony at trial indicated that the odds of this trading pattern occurring in the absence of a relationship between the trading and the identity of the filing agent was less than one in a trillion.  

In total, Klyushin and allegedly his co-conspirators earned close to $100 million in earnings trading from roughly $9 million in investments using inside information, even as they lost close to $10 million in non-earnings trading – representing a return of more than 900 percent during a period in which the broader stock market returned just over 25 percent. 

Of that amount, Klyushin individually netted more than $34 million, including nearly $22.5 million on his personal trading and trading for his company, in addition to more than $11.5 million on the money he invested for others. Further, Klyushin’s sophisticated cyber attack cost its two victims more than $8 million dollars.

Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. The SEC, the Swiss Federal Office of Justice, the Valais and Zurich Cantonal Police authorities and the victim filing agents provided valuable assistance to the investigation. The Justice Department’s Office of International Affairs provided significant assistance in securing Klyushin’s arrest and extradition from Switzerland. Stephen E. Frank and Seth B. Kosto, Chief and Deputy Chief, respectively, of the Securities, Financial & Cyber Fraud Unit prosecuted the case.  

BOSTON – A Quincy man was arrested and charged today in connection with a bank fraud scheme involving approximately 114 counterfeit checks – totaling more than $1 million. 

Hui Zhang, 41, was charged with one count of bank fraud. Zhang was arrested this morning and will appear in federal court in Worcester at 3 p.m. today.

From in or around June 2020 through at least May 2022, Zhang allegedly opened fraudulent bank accounts under false identities, deposited over $1 million worth of approximately 114 counterfeit checks and then subsequently withdrew hundreds of thousands of dollars in cash from these accounts via ATMs. Zhang was allegedly identified in part by a tattoo on his left hand that was visible in surveillance footage of the ATM withdrawals. Zhang allegedly used the same IP address that was used to open one of the fraudulent bank accounts and to deposit counterfeit 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 up to $1 million, or twice the gross proceeds. 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 William F. Abely, Chief of the Criminal Division is prosecuting the case.

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

BOSTON – A Lowell man pleaded guilty today in federal court in Boston to methamphetamine charges and possessing of a firearm with an obliterated serial number.  

Ravouth Chhoy, 34, pleaded guilty to one count of possession with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine and one count of possession of a firearm with an obliterated serial number. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Dec. 7, 2023. Chhoy was indicted by a federal grand jury in August 2022. 

Chhoy agreed to distribute more than 5,000 counterfeit Adderall pills containing methamphetamine to a confidential source. Before Chhoy could complete this transaction, law enforcement intercepted Chhoy and recovered more than 6,000 pills – weighing approximately 1.85 kilograms. Additionally, a search of Chhoy’s residence resulted in the recovery of a firearm with an obliterated serial number.

The charge of possession with intent to distribute 500 grams or more of a mixture or substances containing a detectible amount of methamphetamine provides for a mandatory minimum sentence of 10 years and up to life years in prison, at least five years of supervised release and a fine of $5 million. The charge of possession of a firearm with an obliterated serial number provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000. 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 Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. The Boston Police Department provided critical assistance in the investigation of this case. Assistant U.S. Attorney Evan Panich of the Narcotics & Money Laundering Unit is prosecuting the case.

BOSTON – A Dominican woman pleaded guilty yesterday to possessing seven kilograms of fentanyl and one kilogram of fentanyl and fentanyl analogue intended for distribution.

Ana Checo, 42, 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. U.S. District Court Judge Indira Talwani scheduled sentencing for Dec. 7, 2023. Checo was arrested and charged in May 2021.

In 2019, Checo delivered $58,510 in drug proceeds to an undercover officer for laundering. In July 2019, a search warrant at Checo’s residence resulted in the recovery of eight kilograms of fentanyl, one of which also contained valeryl fentanyl, a fentanyl analogue. Four kilograms of tramadol, one kilogram of “2C-B,” a schedule I controlled substance and $18,325 were also seized. In addition, Checo possessed approximately 55 kilograms of suspected fentanyl and several thousand dollars at the time of her arrest.

The charge of possession with intent to distribute 400 grams or more of fentanyl and 100 grams or more of fentanyl analogue provides for a sentence of at least 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 money laundering conspiracy carries a sentence of up to 20 years in prison, up to three years of supervised release, and a fine of up to $500,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. Assistant U.S. Attorney Katherine Ferguson of the Narcotics & Money Laundering Unit is prosecuting the case.

BOSTON – A California man pleaded guilty today in connection with a conspiracy to smuggle tianeptine, a drug that claims to enhance mood and cognitive functioning, into the United States from China.

Ryan M. Stabile, 36, pleaded guilty to one count of conspiracy and two counts of introduction of misbranded drugs with intent to defraud and mislead. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 10, 2024. Stabile was indicted by a federal grand jury in October 2019. 

Stabile smuggled tianeptine, a misbranded drug, from China into the United States and then resold the tianeptine to American consumers on the internet through his company, Supplements for Work. Stabile falsely represented that he was selling tianeptine for research purposes only, even though he sold tianeptine to individuals for personal use. Stabile, through his company, marketed tianeptine as a mood enhancer and claimed that it improved cognitive functioning. 

The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. The charge of introduction of misbranded drugs provides for a sentence of up to three 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 other statutory factors.

Acting United States Attorney Joshua S. Levy and Fernando McMillan, Special Agent in Charge of the United States Food and Drug Administration’s Office of Criminal Investigation made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla, Chief of the Springfield Branch Office is prosecuting the case.

BOSTON – A Bridgewater man pleaded guilty today in federal court in Boston for defrauding investors out of more than half a million dollars.

Jose Rocha, 37, pleaded guilty to one count of securities fraud before U.S. District Court Judge Leo T. Sorokin, who scheduled sentencing for Dec. 1, 2023. Rocha was charged in August 2023. 

Between 2020 and 2022, Rocha solicited investments from individuals in Massachusetts, falsely portraying himself as a successful investor in securities and promising that he would invest their money in stocks and stock options in exchange for a share of the returns. In total, Rocha obtained over $1 million from his victims, the majority of which he used to pay purported investment returns to other investors or for himself, including to pay for vacations and gambling at casinos. 

The Securities and Exchange Commission filed a civil complaint against Rocha in August 2023 alleging violations of the securities laws.

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division made the announcement. The Securities and Exchange Commission provided valuable assistance with the investigation. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit is prosecuting the case. 

BOSTON – A Stoughton man was sentenced today in federal court in Boston in connection with a fraudulent scheme to obtain COVID-19-related small business loans from several financial institutions.

Yves Montima, 55, was sentenced by U.S. District Court Judge Denise J. Casper to three years of supervised release, with the first 10 months to be served in home confinement. Montima was also ordered to pay $239,595 in restitution. In November 2021, Montima pleaded guilty to one count of conspiracy to commit bank fraud. 

Montima participated in a scheme that obtained over $220,000 in proceeds through fraudulent PPP loan applications submitted between April 2020 and April 2021. Montima and his co-conspirator submitted 12 fraudulent PPP loan applications, both in their own names and in the names of others, at several financial institutions. Montima and his co-conspirator also received kickback payments from individuals on whose behalf they submitted fraudulent PPP loan applications.  

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary loan program directed at small businesses called the Paycheck Protection Program (PPP). Independent contractors were eligible to apply for PPP loans, which were processed by private financial institutions and fully guaranteed by the U.S. Small Business Administration. If an independent contractor used the loan funds for approved purposes, such as payroll, the loan could be forgiven by the financial institution and paid for by the U.S. Small Business Administration. 

Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement. Valuable assistance in the investigation was provided by the U.S. Postal Service, Massachusetts State Police and the Boston Police Department. Assistant U.S. Attorneys Christopher J. Markham and Philip C. Cheng of the Criminal Division prosecuted the case. 

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, 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.

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 local man has been charged in federal court in Boston in connection with the March 20, 2023 armed robbery of the JP Wireless store in Jamaica Plain, Mass.

Royal Benjamin, 63, was charged with one count of Hobbs Act robbery. Benjamin currently is in state custody on related charges and will appear in federal court in Boston at a later date.

According to charging documents, on the evening of March 20, 2023, a Black male approximately six feet in height, wearing a black ski mask, grey hooded sweatshirt, light blue jeans and black-and-white sneakers entered the JP Wireless Store in Jamaica Plain brandishing a black revolver. The suspect allegedly removed the cash register drawer with his bare hands, but dropped the drawer on the floor before fleeing the scene. It is alleged that Benjamin was identified as a positive match for fingerprints retrieved from the cash register drawer.  

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

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Massachusetts Bay Transit Authority Police Department; the Suffolk County District Attorney’s Office; and the Boston and Cambridge Police Departments. Assistant U.S. Attorney Meghan C. Cleary 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 Lynn man pleaded guilty today to submitting false federal loan applications and using a stolen identity to rent an apartment, for which he made no rent payments.  

Steeve Jean, 36, pleaded guilty to wire fraud, aggravated identity theft and unauthorized use of a Social Security number. U.S. District Court Judge Denise J. Casper scheduled sentencing for Nov. 29, 2023. Jean was arrested and charged in April 2023.  

From September 2021 through June 2022, Jean rented an apartment in Lynn under an assumed name. Jean paid no rent for the apartment and left when the apartment complex began steps to evict him. In April 2021, Jean submitted two fraudulent federal Paycheck Protection Program loan applications claiming business losses for a business that did not exist. Jean was serving a state prison sentence during the period he claimed to be running a business.

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 up to $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, three years of supervised release and a fine of up to $250,000. The charge of unauthorized use of a Social Security number provides for a sentence of up to five years in prison, three 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 Benjamin A. Tolkoff of the Criminal Division is prosecuting the case.

BOSTON – A Colombian man was sentenced today in federal court in Boston for his role in a drug trafficking conspiracy connected to organized crime in the Republic of Colombia.

Mario Zapata Velez, 41, of Medellín, was sentenced by U.S. District Court Judge Leo T. Sorokin to five years in prison and three years of supervised release. In April 2023, Zapata pleaded guilty to one count of money laundering conspiracy, one count of extortion conspiracy, two counts of interstate and foreign travel or transportation in aid of racketeering, one count of use of extortionate means to collect and attempt to collect an extension of credit and one count of conspiracy to possess with intent to distribute cocaine. Zapata Velez was indicted by a federal grand jury in May 2020 along with co-conspirators Fabio de Jesus Yepes Sanchez, Miguel Colindres and Juan Pablo Ariasgil. 

Zapata Velez and Yepes Sanchez were members of La Oficina de Envigado (La Oficina), a criminal organization based in Medellín, Colombia. La Oficina originated in the 1980s when its members provided enforcement and collection services for the Medellín Cartel, including deceased Medellín Cartel leader Pablo Escobar. Today, La Oficina is involved in international narcotics trafficking, drug debt collection, money laundering, extortion and murder for hire. 

Zapata Velez and Yepes Sanchez conspired to use threats to extort approximately $750,000 in drug debt from two cocaine traffickers based in Massachusetts. Zapata Velez and Yepes Sanchez also conspired with Colindres and Pablo Ariasgil to obtain five kilograms of cocaine from the Massachusetts traffickers, sell those kilograms, and then repatriate the drug proceeds to Colombia, in partial satisfaction of the outstanding drug debt.

In May 2022, Ariasgil was sentenced to four years in prison and four years of supervised release after previously pleading guilty to his role in the cocaine conspiracy. On April 24, 2023, Colindres was sentenced to 51 months in prison and three years of supervised release after previously pleading guilty to his role in the cocaine conspiracy. On June 27, 2023, Yepes Sanchez pleaded guilty to his role in the cocaine conspiracy, and is scheduled to be sentenced on Oct. 5, 2023.

Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance in the investigation was provided by the Criminal Division’s Office of International Affairs of the Justice Department; the Internal Revenue Service’s Criminal Investigations in Boston; and the Government of Colombia. Assistant U.S. Attorneys Lauren A. Graber and Jared C. Dolan of the Criminal Division 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 former U.S. Postal Service (USPS) employee pleaded guilty today in federal court in Boston in connection with two schemes to convert USPS funds.

Zeon Johnson, 28, of Saugus, pleaded guilty to one count of conversion of government money. U.S. District Court Judge Patti B. Saris scheduled sentencing for Dec. 1, 2023. In May 2022, Johnson was indicted by a federal grand jury.

Beginning in approximately August 2018, Johnson worked as a Sales and Service Distribution Associate for USPS at the Marblehead Post Office. As part of his job, Johnson sold stamps and processed money order transactions for USPS customers. From approximately July 2019 through June 2020, Johnson converted over $18,000 in USPS funds for personal use by stealing cash funds paid by customers for stamps and issuing USPS money orders payable to himself. 

The charge of conversion of government money provides for a sentence of up to 10 years in prison, up to 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 Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of the Public Corruption & Special Prosecutions Unit and Assistant U.S. Attorney Elysa Wan of the Criminal Division are prosecuting the case.

BOSTON – The former Head of School for New Mission School in Hyde Park, an autonomous pilot school within the Boston Public Schools system, pleaded guilty today to engaging in a scheme to defraud Boston Public Schools of approximately $38,806 by misusing school funds for her own personal use.

Naia Wilson, 60, of Mattapan, pleaded guilty to one count of wire fraud. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Jan. 9, 2024. Wilson was charged on Aug. 1, 2023.

Wilson was employed as Head of School for New Mission School from 2006 until about June of 2019. Pilot schools like New Mission are granted maximum autonomy over their budget and spending. New Mission School receives a lump sum per pupil budget from Boston Public Schools and school administrators decide how to spend that money based on the needs of the school. 

Pilot school budgets are managed by an external fiscal agent that contracts with Boston Public Schools. The school funds managed by the external fiscal agent were held in a bank account. In order to spend school funds managed by the external fiscal agent, Wilson, in her role as Head of School for New Mission School, would be required to make a formal check request to the external fiscal agent for a check to be issued from the bank account holding the school’s funds.

Beginning in or about September of 2016 and continuing until at least May of 2019, Wilson requested checks from the external fiscal agent school account to be issued in the name of other individuals, fraudulently endorsed those checks to herself and then deposited them into her own bank account without the nominee ever knowing or authorizing her to do so.

Additionally, Wilson requested checks from the external fiscal agent that were used to pay for two all-inclusive personal vacations to Barbados for herself and her friends in 2016 and 2018. For both the 2016 and 2018 Barbados trips, Wilson requested that the external fiscal agent issue checks payable to other people who went on the trips and then converted that money to pay for the all-inclusive hotel and airfare. Wilson also fraudulently endorsed the checks used to pay for the 2018 trip.

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, 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; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement today. The Boston Public Schools were cooperative in the investigation. Assistant U.S. Attorneys Eugenia M. Carris and Charles Dell’Anno of the Criminal Division are prosecuting the case.

BOSTON – A Correctional Counselor for the Federal Bureau of Prisons (BOP) assigned to Federal Medical Center Devens (FMC Devens) in Massachusetts pleaded guilty today to accepting payments from an inmate under his care, in violation of his duties as a public official. The defendant also pleaded guilty to lying to a bank about a loan he received from the inmate’s business associate and forging the associate’s signature to support this false claim. 

William S. Tidwell, 49, of Keene, N.H., pleaded guilty to receipt of payments by a public official in violation of his official duties, making false statements to a bank and identity theft. U.S. Senior District Court Judge William G. Young scheduled sentencing for Dec. 7, 2023. Tidwell was charged on July 24, 2023. 

Tidwell has been employed by the BOP since 2000 and has been working at FMC Devens since 2008. According to BOP’s rules and policies that govern the duties and conduct of its employees, employees may not receive any payments, gifts, or personal favors from inmates, give preferential treatment to any inmate in the performance of their duties, or engage in outside employment that conflicts with their duties.  

In approximately 2014, Tidwell began working as a Correctional Counselor at FMC Devens, a position that give him significant levels of contact with, and authority over, inmates. Among other things, Tidwell was responsible for monitoring inmate work assignments, assigning inmate housing assignments, arranging inmate legal calls and coordinating prison visits for inmates. One of the inmates for whom Tidwell served as a Correctional Counselor was Individual 1 – an ultra-high net worth individual who had been convicted on federal charges in another jurisdiction. Starting in approximately 2018, Individual 1 caused a stream of benefits to be paid to Tidwell.  

In November 2018, Tidwell supervised Individual 1, who directed a close friend and business associate (Individual 2) to wire $25,000 to Tidwell’s close family member. Thereafter, starting in 2019, Tidwell and Individual 1 entered into an agreement pursuant to which Tidwell received thousands of dollars as part of a property management agreement.  Individual 2, the inmate’s close associate, made the payments to Tidwell. In total, between 2019 and 2020, Tidwell received over $65,000 in benefits as part of this property management agreement with Individuals 1 and 2. Tidwell’s receipt of payments and his employment relationship with an inmate or a close associate of an inmate violated his official duties as a BOP employee.

Separately, in 2020, Tidwell sought to purchase a home. In connection with seeking financing for the home purchase, Tidwell received a $50,000 loan from Individual 2. Tidwell made multiple false statements to the bank in connection with his loan application, falsely telling the bank that the $50,000 was a gift from his employer. When the bank asked for written proof of this purported gift, Tidwell forged documents to support his earlier claim, including by unlawfully using Individual 2’s name and address, and forging Individual 2’s signature. 

The charge of receiving payments in violation of official duties provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of making false statements to a bank provides for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of up to $1 million. The charge of identity theft provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; Jodi Cohen Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Ryan T. Geach, Special Agent in Charge of the Department of Justice Office of the Inspector General New York Field Office made the announcement today. Valuable assistance in the investigation was provided by the Federal Bureau of Prisons. Assistant U.S. Attorneys Kunal Pasricha and Mark Grady of the Criminal Division are prosecuting the case.

BOSTON – A Quincy man was arrested yesterday for allegedly distributing fentanyl to obtain four firearms while a convicted felon.

Caesar Ross, 39, was charged with one count of being a felon in possession of firearms and one count of distribution and possession with intent to distribute fentanyl. Ross was arrested yesterday and, following an initial appearance in federal court in Boston this afternoon, was detained pending a hearing set for Sept. 8, 2023 at 2 p.m.

“This case allegedly involves the deadly cocktail of fentanyl and firearms. Our office is committed to do everything in our power to reduce the number of illegal guns on the streets and the amount of fentanyl that is sold in our communities,” said Acting United States Attorney Joshua S. Levy.

“This case illustrates the collaborative efforts by ATF, DEA and QPD to stop firearm trafficking and combat flow of fentanyl into our communities. This alleged illegal activity will not be tolerated and ATF will continue to aggressively partner with local, state and federal law enforcement agencies to target traffickers,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division.

According to court documents, in 2022, an investigation began into Ross, and others, for allegedly engaging in firearms trafficking and other violations of federal firearms and drug laws. It is alleged that Ross met with a cooperating witness yesterday in Quincy to whom he allegedly provided 60 grams of fentanyl in exchange for four firearms, each of which has no visible serial number: a Beretta 92F, 9 parabellum, pistol; a Beretta 96 Brigadier elite IA, .40S&W pistol; a Glock 22, .40S&W pistol; and a FN Herstal 5.7, 5.7x28 pistol. Ross was immediately taken into custody.

Ross is prohibited from possessing a firearm or ammunition due to a prior felony conviction.

The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of up to $250,000. The charge of distribution and possession with intent to distribute controlled substances 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 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 U.S. Attorney Levy and ATF SAC Ferguson made the announcement today. Valuable assistance was provided by the Drug Enforcement Administration, New England Division and the Quincy Police Department. 

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.

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

BOSTON – A Boston man was sentenced today in federal court in Boston for robbing a TD Bank branch in Boston.

Coleman Nee, 42, was sentenced by U.S. District Court Judge Indira Talwani to 63 months in prison and three years of supervised release. In November 2022, Nee pleaded guilty to one count of bank robbery.

At approximately 4:15 pm on the afternoon of April 26, 2021 – one day after being released from Suffolk County House of Correction in an unrelated matter – Nee entered a TD Bank branch in Boston, showed a teller what appeared to be a firearm and threatened to kill a teller and a bank customer before robbing the bank of $990. Within 21 minutes of the robbery, Nee was apprehended by law enforcement inside a department store in Downtown Crossing. All but $10 of the stolen money was recovered from the defendant when he was apprehended. During booking, items were recovered from the defendant including a MBTA Charlie Card with a date/time stamp of April 26, 2021, at 4:23pm that reflected $10.00 in cash was used to purchase the Charlie Card.

According to court records, Nee’s prior criminal conduct includes a prior federal conviction for bank robbery, as well as state court convictions for, among other crimes, Armed Robbery, Assault Dangerous Weapon Possession of Firearm with no FID card, Possession of Ammunition with no FID card, Possession of a Firearm in the Commission of a Felony and Knowingly Receiving Stolen Property.

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

BOSTON – A Beverly Farms man pleaded guilty today in connection with a payroll scheme involving underreporting of overtime hours for his union employees and failing to collect and pay payroll taxes.

Frank Loconte, 62, pleaded guilty to one count of mail fraud and one count of failing to pay taxes. U.S. District Court Judge Denise J. Casper scheduled sentencing for Nov. 29, 2023. Loconte was indicted by a federal grand jury in October 2022.  

From 2009 to 2022, Loconte was the president of NER Construction Management Corporation, a Wilmington-based construction company that employed union workers. Loconte was also the president of the company’s employment management company, NER Management LLC. Loconte was responsible for collective bargaining with multiple unions, including the Bricklayers and Allied Craftsmen Local Union No. 3 and various local unions affiliated with the Massachusetts and Northern New England Laborers’ District Council of the Laborers International Union of North America. On behalf of NER, Loconte was bound by collective bargaining agreements with the unions which governed the transfer of worker benefit contributions to employee welfare and pension benefit plans, each of which was subject to ERISA provisions. As a result, NER was required to make periodic contributions to the benefit funds each hour worked by covered employees at rates prescribed and to deduct dues from the pay of each union worker which was also to be forwarded to the benefit funds.

From approximately January 2014 and May 2022, Loconte engaged in a scheme to defraud the union benefit funds and the IRS by paying certain of its union workers for overtime hours worked without reporting these hours to the union benefit funds and without making the required payroll tax withholdings and payments. At times, some NER employees were paid entirely in cash for overtime hours worked and, at other times, the employees were paid by check without the required withholdings. Loconte also caused NER to file false and fraudulent remittance reports with the benefit funds and the unions which underreported the overtime hours worked by these employees thereby depriving the benefit funds and unions of contributions owed to their members. Loconte also caused NER to file false and fraudulent IRS payroll taxes that underreported the amount of wages paid. 

Instead of paying employment taxes, Loconte used NER business accounts to pay for personal expenses, including vehicles, personal property taxes, household improvements, and golf memberships, and failed to report these benefits to the IRS. As a result, Loconte defrauded union workers of more than $l million dollars for overtime work covered by the collective bargaining agreements and defrauded the IRS of more than $3 million by not making the required payroll tax and union dues withholdings and payments.

The charge of mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of willful failure to collect and pay over taxes provide for a sentence of up to five years in prison, two 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; Carol S. Hamilton, Regional Director, U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Jonathan Russo, District Director, U.S. Department of Labor, Office of Labor-Management Standards; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations; and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of the Criminal Division is prosecuting the case.

BOSTON – A Kentucky man pleaded guilty today in federal court in Boston to advertising child sexual abuse material (CSAM) on the dark web.

Scott Allison, 58, of Glasgow, Ky., pleaded guilty to one count of advertisement of child pornography. U.S. District Court Judge Indira Talwani scheduled sentencing for Jan. 11, 2024. Allison was initially charged by criminal complaint in November 2021 in the Western District of Kentucky, and subsequently indicted by a federal grand jury in Boston in December 2021.  

In April 2021, Allison was identified advertising and posting links to CSAM, including images of boys as young as approximately two years old, via a website on the dark web for which he served as a moderator. Allison used at least two different usernames on various websites on the dark web. During a search of Allison’s home in November 2021, an external hard drive was located plugged into Allison’s computer in his bedroom and found to contain approximately 130,000 images and videos of CSAM. Allison also had the content or text of approximately 108,000 posts to child pornography websites saved on his computer. Additionally, a box containing boy’s underwear, diapers and condoms as well as a silicone mold of a boy’s buttocks with partial genitalia were also found during the search. 

The charge of advertisement of child pornography provides for a sentence of at least 15 years and up to 30 years 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.

Acting United States Attorney Joshua S. Levy; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; Michael A. Bennett, United States Attorney for the Western District of Kentucky; and Rana Saoud, Special Agent in Charge of Homeland Security Investigations in Nashville made the announcement today. Assistant U.S. Attorneys J. Mackenzie Duane and Luke A. Goldworm of the Major Crimes Unit 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 Malden man pleaded guilty yesterday in federal court in Boston to trafficking fentanyl disguised as oxycodone and Xanax, as well as methamphetamine disguised as Adderall in and around the Malden area. 

Igor Desouza, 27, pleaded guilty to one count of possession with intent to distribute 500 grams or more of methamphetamine, 40 grams or more of fentanyl, and other controlled substances. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 1, 2023. Desouza was indicted by a federal grand jury in December 2021 along with co-defendant Matthew Ramos. Under the terms of Desouza’s plea agreement, he faces a sentence of 120 months in prison.
    
According to the charging documents, a search of the defendant’s residence in May 2021 resulted in the recovery of over 10,000 pills, which included over 2 kilograms of methamphetamine pills pressed to resemble Adderall or Xanax (some containing MDMA) and over 40 grams of fentanyl pills (some mixed with xylazine) pressed to resemble oxycodone. The search also resulted in the recovery of a firearm, loaded and unloaded magazines, hundreds of rounds of ammunition, LSD strips, oxycodone pills, MDMA pills, and oxycodone pills. A search warrant executed on Desouza’s phone yielded videos of him holding a firearm and pointing it at orange and blue pills, similar to the methamphetamine and fentanyl pills recovered during the search warrant at his home.

The charge of possession with intent to distribute 500 grams or more of methamphetamine provides for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charge of possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to life in prison, at least four and up to a lifetime of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

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 today. The investigation was led by DEA’s New England Field Division’s Boston Tactical Diversion Squad. Special assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; the Malden Police Department; and the Middlesex District Attorney’s Office. Assistant U.S. Attorney Lindsey E. Weinstein of the Narcotics and Money Laundering 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 former United States Marine has been indicted by a federal grand jury in Springfield, Mass. for allegedly stealing benefit payments from the Department of Veterans Affairs and submitting a false Purple Heart application to the United States Marine Corps through his local Congressman. 

Paul John Herbert, 52, of Shelburne Falls, Mass., was indicted on one count of theft of government money and one count of making false statements. Herbert was arrested this morning and was released on conditions following an initial appearance today in federal court in Springfield, Mass.

“Mr. Herbert’s alleged conduct is an affront to every veteran who has sacrificed to earn the honor of a Purple Heart and who is deserving of disability benefits. According to the indictment, he not only stole tens of thousands of dollars in disability benefits that are supposed to be used to help veterans in need, but he also falsely claimed to have suffered a traumatic brain injury during his deployment in an effort to receive a Purple Heart he didn’t deserve,” said United States Attorney Joshua S. Levy. “Every day, thousands of brave members of the military selflessly risk their lives to protect our country. Stealing from our country’s veterans or claiming valor where there is none is an insult to the honorable service members who sacrifice for our safety.” 

“The VA Office of Inspector General remains committed to ensuring that VA benefits are administered to deserving recipients based on legitimate accounts of their military service,” said Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General (VA OIG) Northeast Field Office. “The VA OIG thanks our partners at the Defense Criminal Investigative Service and the U.S. Attorney’s Office for their efforts in this joint investigation.”

“Individuals who steal veterans disability benefits and falsely represent themselves as decorated veterans of the U.S. Armed Forces degrade the service of the men and women who selflessly serve our country,” said Patrick J. Hegarty, Special Agent in Charge of the U.S. Department of Defense, Defense Criminal Investigative Service (DCIS), Northeast Field Office, the law enforcement component of the Department of Defense Office of Inspector General. “Today's charges demonstrate our commitment to work with the U.S. Department of Veterans Affairs Office of Inspector General and the Department of Justice to investigate allegations of stolen military benefits.”

According to the indictment, from Jan. 1, 2010 to March 11, 2023, Herbert stole more than $344,000 in veterans disability benefits. In addition, on Oct. 24, 2018, Herbert allegedly submitted an application for a Purple Heart award to the United States Marine Corps through his local Congressman, in which Herbert falsely stated that he had suffered injuries, including traumatic brain injury, from a roadside explosion while deployed to Northern Iraq. 

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

Acting U.S. Attorney Levy, VA-OIG SAC Algieri and DCIS SAC Hegarty made the announcement today. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office is prosecuting the case.

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

BOSTON – A Boston man pleaded guilty yesterday to his involvement in a sophisticated international money laundering and drug trafficking organization.

Mariano Santana, 57, pleaded guilty to conspiracy to commit money laundering. U.S. District Judge Angel Kelley scheduled sentencing for Nov. 30, 2023.

In May 2023, Santana was among 12 individuals from Massachusetts, Rhode Island, New York and California charged in a superseding indictment for their alleged involvement in a sophisticated international money laundering and drug trafficking organization allegedly led by Jin Hua Zhang.

According to the charging documents, Zhang allegedly laundered bulk cash for drug dealers and laundered profits from other illegal businesses for a fee. It is alleged that, during the investigation, Zhang directed his co-defendant couriers, and others, to deliver to undercover agents hundreds of thousands of dollars in cash and millions of dollars in wire transfers and bank deposits. In total, Zhang and his organization allegedly laundered at least $25 million worth of drug proceeds and funds from other illegal businesses traced to Hong Kong and elsewhere in China, India, Cambodia, and Brazil, among other locations. 

Santana was a courier who dropped off drug money to be laundered by the Zhang organization. On two separate occasions in June 2022, Santana delivered bulk cash deliveries of illicit proceeds to a cooperating witness in a Quincy parking lot. Specifically, on June 2, 2022, Santana provided the individual with a bag containing $30,000 in cash. On June 7, 2022, Santana delivered $29,800 in cash,  

The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. 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 Christopher Pohl, Brian A. Fogerty and Meghan C. Cleary 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 Worcester man has been indicted by a federal grand jury in Worcester for unlawfully possessing a firearm and ammunition as a convicted felon. 

Ryan Davidson, 38, was indicted on one count of being a felon in possession of a firearm and ammunition. 

According to the charging documents, on or about May 9, 2023 in Worcester, Davidson possessed a Taurus 9-millimeter pistol and 26 rounds of 9mm ammunition. Davidson is prohibited from possessing firearms and ammunition due to prior felony convictions.
   
The charge of being a felon in possession of a firearm and ammunition provides a sentence of up to 15 years, 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 & Explosives, Boston Field Division; and Worcester Police Chief Steven Sargent made the announcement today. Assistant U.S. Attorney Kaitlin J. Brown of the Worcester Branch Office is prosecuting the case.

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

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 Norfolk, Mass. man has been charged and has agreed to plead guilty to conspiring to price gouge hospitals for scarce N95 filtering facepiece respirators (N95 masks) at the start of the COVID-19 pandemic. 

Jason Colantuoni, 35, was charged by an Information with one count of conspiracy to commit price gouging in violation of the Defense Production Act. A plea hearing has not yet been scheduled by the Court. 

According to the charging documents, on March 11, 2020, a longtime friend of Colantuoni (Individual 1) formed a company in Florida in response to the COVID-19 pandemic. It is alleged that from in or about March 2020 through April 2020, Colantuoni, Individual 1 and the company’s head of sales (Individual 2) conspired to use the company to exploit and profit off of the critical need of hospitals and healthcare workers for scarce N95 masks during the COVID-19 pandemic. 

Specifically, Colantuoni, Individual 1 and Individual 2 allegedly accumulated N95 masks from various sources and then sold the N95 masks through the company to desperate hospitals in Massachusetts and elsewhere at prices in excess of the prevailing market price. 

Prior to the COVID-19 pandemic, the hospitals to which the company sold N95 masks typically paid approximately $0.44 to $0.70 per respirator. Through the company, Colantuoni, Individual 1 and Individual 2 allegedly offered to sell N95 masks to hospitals for as much as $11.95 per mask.

Through the company, it is alleged that Colantuoni, Individual 1 and Individual 2 sold a total of approximately 1,000 boxes of N95 masks to various hospitals, with each box containing 20 or 30 masks. The weighted average price for the company’s purchases of N95 masks was approximately $4.48 per mask, while the weighted average price for the company’s sales of N95 masks to hospitals was approximately $9.91 per mask.  

The charge of conspiracy to commit price gouging in violation of the Defense Production Act provides for a sentence of up to one year in prison, up to one year of supervised release and a fine of up to $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Assistant U.S. Attorneys Bill Brady and Howard Locker of the Health Care Fraud Unit are prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud. 
    
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.

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 Mexican man residing in Lawrence was sentenced yesterday for possessing one kilogram of fentanyl intended for distribution and to illegally re-entering the United States after deportation.

Jesus Gracielo Garcia-Vega a/k/a Jonathan Ivan Badillo-Hernandez, 35, was sentenced by Chief U.S. District Court Judge F. Dennis Saylor to 75 months in prison followed by three years of supervised release. On March 20, 2023, Garcia-Vega pleaded guilty to one count of possession with intent to distribute fentanyl and one count of unlawful re-entry of a deported alien. 

On March 23, 2022, Garcia-Vega gave a sample of fentanyl to a confidential source working with law enforcement. During that transaction, Garcia-Vega agreed to sell fentanyl the next day to the confidential source. On March 24, 2022, Garcia-Vega drove to the Premium Outlets in Wrentham with a kilogram of fentanyl inside a laundry bag, intending to sell it to the confidential source. Garcia-Vega was later stopped by police on I-495 in Westford and arrested.  A Subsequent investigation determined that Garcia-Vega had been deported on several occasions from the United States, including most recently on March 23, 2016, after which he unlawfully re-entered the country.

“Fentanyl is an incredibly serious threat to public safety as it can have fatal consequences even in very small amounts. Mr. Garcia-Vega tried to pump a kilogram of this poison into our communities. It’s particularly disturbing that he engaged in this criminal behavior after entering this country unlawfully following several deportations,” said Acting United States Attorney Joshua S. Levy. “This office and our law enforcement partners will continue to relentlessly pursue fentanyl distributors and ensure the safety and well-being of Massachusetts residents.

“Fentanyl distribution is destroying people’s lives and wreaking havoc in our communities,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “DEA and our law enforcement partners will aggressively pursue and bring to justice individuals like Mr. Garcia-Vega who distribute this deadly drug. This sentence not only holds Mr. Garcia-Vega accountable for his crimes but serves as a warning that we will do everything in our power to keep this poison off the streets of Massachusetts.”

Acting U.S. Attorney Levy and DEA SAC Boyle made the announcement today. Valuable assistance in the investigation was provided by the Massachusetts State Police. Assistant U.S. Attorney Samuel R. Feldman of the Narcotics & Money Laundering Unit prosecuted the case.

BOSTON – A former Sergeant with the Massachusetts Bay Transportation Authority (MBTA) Transit Police Department (Transit Police) was arrested today in connection with the alleged filing of false reports regarding another Transit Police Officer’s assault on a man at the Ashmont MBTA Station.

David S. Finnerty, 47, of Rutland, was indicted on two counts of false reports. Finnerty was arrested this morning and will appear in federal court in Boston later today.

“Our office holds the men and women who wear police uniforms and serve our communities in the highest regard. Instances of police misconduct are rare, but they need to be investigated and prosecuted when they do happen, especially when supervisors are involved as alleged here. For the good of the community and all the honorable officers and supervisors in the police ranks, misconduct of this nature cannot be tolerated. I commend the leadership of the MBTA Transit Police for their sustained cooperation in this investigation,” said Acting United States Attorney Joshua S. Levy. 

“Today, the FBI arrested former Transit Police Sgt. David Finnerty for violating his oath by filing false reports to try and obstruct an investigation into another officer’s assault on a man at the MBTA’s Ashmont station. We believe Sgt. Finnerty not only failed to lead by example, but betrayed the trust placed in him by his fellow officers, and the public,” said Jodi Cohen Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Make no mistake, the FBI will do everything we can to help our law enforcement partners bring to justice anyone who violates their oath by trying to cover up civil rights violations, overshadowing the majority of officers who are dedicated, honest, and fully committed to enforcing our laws and building trust within their communities.”

According to the indictment, Finnerty was the Transit Police Officer in Charge and the supervisor of Transit Police Officer D.B. It is alleged that at or around 1:47 a.m. on July 27, 2018 at the Ashmont MBTA station, Officer D.B., while acting in his role as an officer, physically assaulted a man without legal justification. It is alleged that Finnerty falsified an arrest report and a Duty Supervisor/OIC Command Staff shift briefing regarding the incident involving Officer D.B. – specifically, by including false and misleading statements and by omitting material information.

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

Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Assistant U.S. Attorneys Kristina E. Barclay and Assistant U.S. Attorney Julien Mundele are prosecuting the case.

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

BOSTON – A Lynnfield man pleaded guilty today in federal court in Boston to fraudulently obtaining multiple Coronavirus Aid, Relief, and Economic Security (CARES) Act loans, including funds from the Payroll Protection Program (PPP), and unemployment benefits to which he was not entitled for his boxing gym.

Daniel Olivar, 44, pleaded guilty to four counts of wire fraud. U.S. District Court Judge Indira Talwani scheduled sentencing for Dec. 6, 2023. Olivar was arrested and charged in December 2022.  

Olivar was the owner of Sonny’s Boxing and Fitness, Inc., a boxing club and fitness center in in Middleton. Since at least 2019, Olivar engaged in a scheme to defraud and obtain CARES Act business loans, by filing false and fraudulent applications with the United States Small Business administration (SBA). This included an Economic Injury Disaster Loan  from the SBA and a PPP loan. In addition, Olivar filed a claim for unemployment benefits with the State of Massachusetts, falsely claiming that he was laid off from Gold’s Gym. As a result, from January 2020 until at least May 2021, Olivar received unemployment benefits from the state of Massachusetts. 

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 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 Laura J. Kaplan of the Criminal Division is prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, 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 Methuen man was sentenced today in federal court in Boston for using stolen identities to fraudulently obtain Economic Injury Disaster Loan funds from the Small Business Administration (SBA) and laundering the funds. 
 
Ramon Joseph Cruz, Jr., 27, was sentenced by U.S. District Court Judge Richard G. Stearns to two years and one day in prison and three years of supervised release. Cruz was also ordered to pay restitution in an amount that will be determined at a future hearing. On May 18, 2023, Cruz pleaded guilty to one count of conspiracy to commit wire fraud and four counts of wire fraud and aiding and abetting. 

Between approximately April and December 2020, Cruz and co-defendant Darwyn Joseph conspired to use stolen identity information of United States citizens to apply for SBA Economic Injury Disaster Loans. Specifically, Cruz and Joseph used stolen identity information of U.S. citizens to open fraudulent bank accounts which were then linked to other fraudulent bank accounts set up to receive the SBA funds. Cruz and Joseph also received some of the debit cards associated with fraudulent bank accounts into which SBA funds were deposited, and then laundered those funds by using them to purchase large numbers of iPhones for re-sale. Cruz and Joseph also wired a portion of the funds to the Dominican Republic in furtherance of the scheme.
 
Over $452,000 in SBA funds were fraudulently obtained in connection with this scheme. Approximately $250,000 of this money was used to purchase iPhones in Massachusetts and New Hampshire.
 
Joseph pleaded guilty to his role in the conspiracy on July 12, 2023 and is scheduled to be sentenced on Oct. 19, 2023.

Acting United States Attorney Joshua S. Levy and Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England made the announcement. Assistant U.S. Attorneys Elianna J. Nuzum and Adam W. Deitch of the Criminal Division prosecuted the case. 

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud. 
 
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. 

BOSTON – A federal grand jury in Boston indicted a former Middlesex County Sheriff’s deputy today for allegedly threatening to burn down the Plymouth County Courthouse, to kill court security officers and “to get” current Middlesex County sheriff’s officers.

Joshua P. Ford, 42, of Kingston, Mass., was indicted on three counts of interstate transmission of a threatening communication. Ford is currently in state custody and will appear in U.S. District Court in Boston at a later date.

According to the indictment, Ford served as a deputy for the Middlesex County Sheriff’s Office between about 2009 and 2017. It is alleged that on March 13, 2023, Ford sent 12 emails to a total of about 140 people, almost all Massachusetts law enforcement officers. Each email allegedly contained the same text: stating “[there] is no more justice system anymore just WAR” and “I am calling on all able bodied officers my brothers in blue to suit up for a fight.” Ford then allegedly asked those law enforcement officers to arm themselves with firearms and armored vehicles and declared, “Tomorrow we burn down the Plymouth County Court house to the ground.”  

It is further alleged that the emails included a link to a video Ford posted on YouTube and British video hosting service BitChute. According to the indictment, the video, titled, “War Has Been Declared F***’em All,” is an 11-minute recording of Ford in a kitchen, where he speaks directly to the camera. In the video, it is alleged that Ford’s principal assertion is that the justice system is corrupt, and makes various statements about police officers, correctional officers, court officers, a judge, a prosecutor, defense attorneys and others. Ford allegedly expressed particular contempt for Middlesex Sheriff’s officers, about whom he says, “And guess what? I’m f****** coming. I’m f****** coming, and hell’s f****** coming with me. I’m going to f****** get every last one of you mother*****s. I know where you work. And I am coming to get you.” Ford also allegedly threatened to “break the arms and legs of every court officer” and to “kill” court security officers working in the Plymouth County Courthouse. Ford also allegedly exhorted other law enforcement officers to assist him by bringing guns, gasoline, C-4, armored personnel carriers and SWAT teams to his confrontation, which he scheduled for 8:30 a.m. on March 14, 2023. Instead, local law enforcement arrested Ford on March 13, 2023 after the emails were sent. 

The charges of interstate transmission of a threatening communication each provide for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Kingston Police Department and the Marshfield Police Department provided valuable assistance in the investigation. Assistant U.S. Attorney Amanda Beck of the National Security 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 former North Shore resident was sentenced today in connection with filing fraudulent applications for more than $660,000 in Paycheck Protection Program (PPP) loan funds and using those funds for personal expenses, including the purchase of an alpaca farm in Vermont.

Dana L. McIntyre, 59, of Grafton, Vt. and previously of Beverly and Essex, Mass., was sentenced by U.S. District Court Judge Denise J. Casper to two years in prison and three years of supervised release. McIntyre was also ordered to pay $679,156 in restitution and forfeiture. On April 13, 2023, McIntyre pleaded guilty to four counts of wire fraud and three counts of money laundering. 

“Make no mistake about it, this was no momentary lapse in the fog of the pandemic. Mr. McIntyre submitted multiple bogus applications for pandemic money was supposed to provide a lifeline to small businesses and their employees during a national emergency. He stole from the American taxpayers and the many small businesses which truly needed those loans to survive,” said Acting United States Attorney Joshua S. Levy. “Just last month our office expanded the resources dedicated to investigating and prosecuting COVID fraud. Whether someone used stolen money to buy luxury goods or fancy cars or exotic farm animals, we intend to find them and hold them accountable.  

“Dana McIntyre capitalized on a national catastrophe and stole hundreds of thousands of dollars from a limited pool of money set aside to help struggling businesses, to buy a farm, stock it with alpacas, and make a fresh start for himself in Vermont,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s sentence holds him accountable for his selfish criminal conduct. The FBI will continue to aggressively pursue others like him who are using the money from this economic relief program to pad their own pockets. If you know of similar instances of fraud, please contact us at 1-800-CALL-FBI.”

“The funds made available through the Paycheck Protection Program were intended to help businesses and their employees get through the financial hardships caused by the COVID-19 pandemic. Instead, Mr. McIntyre’s greed betrayed the good intentions of the American taxpayer,” said Special Agent in Charge Christina Scaringi with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG). “The sentencing today should serve as a reminder that if you defraud pandemic-related government assistance programs, you will be held accountable. HUD OIG will continue to work with its law enforcement partners and the U.S. Attorney’s Office to bring these matters to a just conclusion.”

McIntyre is the former owner of Rasta Pasta Pizzeria in Beverly. In March 2020, McIntyre used the names of his adult children to submit two fraudulent applications to the U.S. Small Business Administration (SBA) for Economic Injury Disaster Loans (EIDL) for businesses that did not exist. Beginning in April 2020, McIntyre submitted an application and weekly certifications in order to receive Pandemic Unemployment Assistance (PUA) benefits. In these filings, McIntyre falsely claimed that he was not working or receiving income as a result of the pandemic, while McIntyre in fact was still operating the restaurant and paying himself income from the business. By September 2020, when McIntyre sold the restaurant, he had received over $17,000 in PUA and related benefits that he was not entitled to receive.  

In April 2020, McIntyre submitted a fraudulent application for a PPP loan of over $660,000 through an SBA-approved lender. In the application, McIntyre inflated information about the pizzeria’s employees and payroll expenses and falsified an official tax form in an effort to qualify the business for a larger loan amount. After receiving a PPP loan of over $660,000, McIntyre sold the pizzeria and used nearly all the funds to purchase a farm in Vermont, as well as eight alpacas, and other personal expenses, including two vehicles and airtime for his crypto-currency themed radio show.  

Acting U.S. Attorney Levy, FBI SAC Cohen, HUG-OIG SAC Scaringi and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys David M. Holcomb and Mackenzie A. Queenin of the Securities, Financial & Cyber Fraud Unit and Carol Head, Chief of the Asset Recovery Unit, prosecuted the case.

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

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

BOSTON – A member of the Boston street gang “D Street” pleaded guilty today to illegally possessing multiple firearms and ammunition while a convicted felon and while he was under house arrest for a state firearm charge.

Freily Cabral, 25, of Boston and Quincy, pleaded guilty today to two counts of being a felon in possession of a firearm and ammunition and one count of possession with intent to distribute marijuana. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Dec. 14, 2023. 

In August 2021, Cabral was identified as the owner of a Snapchat account posting images and of himself in possession of five firearms: a black colored Glock semiautomatic handgun with a flashlight attachment; a black Walther semi-automatic firearm; a silver Taurus revolver; a black semi-automatic firearm; and a brown and silver revolver. In one of the videos, Cabral held three separate firearms to his face as if he were using the firearms to make a phone call.  

A search of Cabral’s Quincy residence in September 2021 resulted in the seizure of a Taurus .38 caliber revolver, a Hopkins and Allen .32 caliber revolver, .38 caliber and .32 caliber ammunition, hundreds of grams of marijuana packaged for sale and $23,000 in cash. 

At the time of the offense, Cabral was on house arrest with electronic monitoring following a November 2020 arrest for his second unlawful possession of a firearm charge. Cabral was previously convicted in 2016 for unlawful possession of a firearm in Boston Municipal Court. In 2017, Cabral was convicted of assault and battery with a dangerous weapon in Boston Municipal Court and was sentenced to one year in prison. 

The charge of being a felon in possession of a firearm and ammunition provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute marijuana provides for a sentence of up to 5 years in prison, at least two 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.

The operation was conducted 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. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.

Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Special assistance in the investigation was provided by the Boston, Quincy and Lynn Police Departments. Assistant U.S. Attorney Christopher Pohl of the Narcotics & Money Laundering Unit is prosecuting the case.

BOSTON – A Mexican man was sentenced today for conspiring to distribute nine kilograms of fentanyl bound for Massachusetts from California. 

Ricardo Peinado Rivera, 31, was sentenced by U.S. District Court Judge Denise J. Casper to 26 months in prison. On May 24, 2023, Peinado Rivera pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl. 

In September 2021, law enforcement received information about a person living in the Dominican Republic trafficking fentanyl within the United States. Undercover law enforcement contacted the individual, who offered to sell nine kilograms of fentanyl that would be delivered in California and then driven to Boston. On Nov. 9, 2021, Peinado Rivera was observed delivering the fentanyl to a cooperating source in Ontario, Calif. 
        
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Special assistance was provided by the Drug Enforcement Administration, Los Angeles Field Division. Assistant U.S. Attorney Samuel R. Feldman of the Narcotics & Money Laundering Unit is prosecuting the case.

BOSTON – A Hyannis man has been indicted by a federal grand jury in Boston for unlawfully possessing ammunition as a convicted felon. 

Timothy Lee Galvin, 31, was indicted on one count of being a felon in possession of ammunition. 

According to the charging documents, on or about June 2, 2023 in Barnstable, Galvin possessed three rounds of 9mm ammunition; 11 rounds of .45 caliber ammunition; and 47 rounds of 9mm ammunition.

Galvin is prohibited from possessing firearms and ammunition due to three prior drug distribution convictions.

The charge of being a felon in possession of ammunition provides to a mandatory minimum sentence of 15 years and up to life in prison, five 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 M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Cape & Islands District Attorney Robert Galibois made the announcement today. Assistant U.S. Attorney Benjamin A. Tolkoff 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.

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 California man has pleaded guilty in federal court in Boston to his involvement as the principal stock trader in a sophisticated securities fraud scheme that generated tens of millions of dollars in illicit profits.

Joseph A. Padilla, 54, of Carlsbad, Calif. and Cabo San Lucas, Mexico, pleaded guilty on Aug. 17, 2023 to one count of conspiracy to commit securities fraud, two counts of securities fraud and one count of attempting to cause the production of an identification document without lawful authority. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Nov. 15, 2023. Padilla was charged in March 2023 along with an alleged co-conspirator. 

Padilla is a former stockbroker who was barred from the securities industry in 2012 by the U.S. Securities and Exchange Commission (SEC).  Between 2020 and 2022, Padilla allegedly conspired with others to commit securities fraud by facilitating and participating in market manipulation schemes involving the concealed-control of the shares of penny-stock companies.
    
Specifically, between October 2020 and July 2022, Padilla participated in a market manipulation scheme involving the shares of Oncology Pharma, Inc., a thinly traded company that traded on the over-the-counter securities market under the ticker symbol ONPH. As part of the scheme, a co-conspirator allegedly caused nearly all of ONPH’s free-trading shares to be transferred to multiple brokerage accounts for the benefit of Padilla’s clients at the Cayman Islands broker Valor Capital, with which Padilla had a close, unofficial association. Padilla then engaged in manipulative trading in ONPH designed, at least in part, to artificially drive up the company’s stock price, after which Padilla began dumping the ONPH shares—which were under common control—to unsuspecting investors in Massachusetts and throughout the United States during a promotional campaign, generating illicit proceeds alleged to be in the tens of millions of dollars.
    
Additionally, between January 2020 and April 2021, Padilla participated in a similar scheme involving the shares of Charlestowne Premium Beverages Inc., a thinly traded company that traded on the over-the-counter market under the ticker symbol FPWM. As part of the scheme, Padilla orchestrated an effort designed, at least in part, to artificially increase Charlestowne’s stock price. He then facilitated the sale of millions of Charlestowne’s shares during a promotional campaign to unsuspecting investors in Massachusetts and throughout the United States, generating illicit proceeds alleged to be in the millions of dollars.
    
Padilla was arrested on a criminal complaint in August 2022 and released on pre-trial conditions, which included surrendering his passport and not obtaining another passport. While on pre-trial release, Padilla attempted to acquire a fraudulent Ukrainian passport so that he could flee prosecution. Padilla was arrested in January 2023 for violating his terms of release and his pre-trial release was revoked. 

The charge of securities fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $5 million. The charge of conspiracy to commit securities fraud provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000. The charge of attempt to cause the production of an identification document without lawful authority 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 today. Assistant United States Attorneys James R. Drabick and Ian J. Stearns of the Securities, Financial & Cyber Fraud Unit are prosecuting the case.

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

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

Stephen Skeirik, 39, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to seven years in prison followed by three years of supervised release. In May 2023, Skeirik pleaded guilty to being a felon in possession of a firearm and ammunition. 

On Feb. 27, 2020, Skeirik and another individual were observed engaging in a suspected drug transaction. When law enforcement approached Skeirik, he ran and threw a loaded Ruger .380 caliber pistol into a neighbor’s yard. During a search of his home, a stolen Ruger 9mm pistol loaded with seven rounds of ammunition was recovered along with tools for drug distribution, cutting agents and drugs. 

Due to a previous conviction for felony drug distribution, Skeirik is prohibited from possessing firearms and ammunition. 

Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement. Valuable assistance was provided by the Massachusetts Parole Board, Lawrence Police Department and the Essex County District Attorney’s Office. Assistant U.S. Attorney Philip C. Cheng of the Organized Crime & Gang Unit prosecuted 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 Hyde Park woman pleaded guilty in federal court in Boston to her role in a wide-ranging fentanyl trafficking conspiracy.

Erika Prado, 32 pleaded guilty on Aug. 17, 2023 to one count of conspiracy to distribute and to possess with intent to distribute fentanyl. U.S. District Court Judge Angel Kelley scheduled sentencing for Nov. 28, 2023. In December 2022, Prado was indicted along with three other co-conspirators. Prado pleaded guilty to a Superseding Information.

According to the charging documents, beginning in or around September 2022, Prado began to work for co-defendant Quenty Ogando –initially cleaning Ogando’s Mattapan apartment and allegedly later counting and packaging fentanyl pills that had been made at the apartment using a pill press. It is alleged that the pills, which Prado packaged for shipment, were often picked up at the apartment by other individuals.  
    
On or about Nov. 22, 2022, a search of Ogando’s Mattapan apartment allegedly revealed over 20 kilograms of fentanyl pills in various colors, over 20 kilograms of loose fentanyl powder, numerous packages and mailing labels, three industrial grade pill presses as well as heroin and cocaine. 

Prado’s co-defendants have pleaded not guilty and are pending trial.
    
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Acting Special Agent in Charge for Homeland Security Investigations, in New England; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today. The Boston Police Department, the U.S. Postal Inspection Service, the Massachusetts State Police and United States Customs and Border Protection provided valuable assistance. Assistant U.S. Attorneys Jennifer Zacks and J. Mackenzie Duane of the Narcotics & Money Laundering Unit is prosecuting the case.  

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

BOSTON – Two New Bedford men have been indicted by a federal grand jury in Boston in connection with a conspiracy to distribute and possess with intent to distribute fentanyl. One defendant was also charged with misuse of a Social Security number and aggravated identity theft. 

Yohenry Contreras-Lara, 29, and Vinicio DeJesus Marrero Arias, 39, were indicted on one count each of conspiracy to distribute and possess with intent to distribute more than 400 grams of fentanyl. Contreras-Lara was also indicted on one count of misuse of a social security number and one count of aggravated identity theft.

“Fentanyl is devastating communities across Massachusetts. We will continue partner with local police departments like the New Bedford Police Department and the Bristol County DA’s office to combat the distribution of this deadly drug on our streets,” said Acting United States Attorney Joshua S. Levy.

“Fentanyl is causing great damage to our communities,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office. “Those who distribute this drug are endangering the safety of the citizens of Massachusetts. Fentanyl continues to cause deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison.  This investigation demonstrates the strength of collaborative local, county and state law enforcement efforts in Massachusetts and our strong partnership with the U.S. Attorney’s Office.”

“We will continue to pursue those who misuse the Social Security number of others. This individual allegedly misused the identity of another, remaining in this country unlawfully for two decades. This type of behavior harms innocent lives and damages the integrity of the SSN,” said Sharon MacDermott, Special Agent in Charge of the Social Security Administration Office of the Inspector General, Boston- New York Field Division. “I thank our law enforcement partners for working with us and the U.S. Attorney’s Office for their efforts in this case.”

According to court filings, after Contreras-Lara entered the United States in 2002 on a tourist visa, he allegedly purchased the identity of a United States citizen and posed as that citizen for several years including applying for two Massachusetts drivers’ licenses under an identity that was not his in 2022. 

It is further alleged that, following an investigation into fentanyl trafficking in and around the Lord Phillips Apartments in New Bedford, Contreras-Lara and Arias were identified as fentanyl distributors in the area. A search of Contreras Lara and Arias’ residences, as well as an apartment that was being used as a stash location and two storage units, allegedly resulted in the recovery of more than 800 grams of fentanyl and $1.2 million in cash in suspected drug proceeds.

The charge of conspiracy to distribute and possess with intent to distribute more than 400 grams of fentanyl provides for a sentence of up to life years in prison, at least five years of supervised release and a fine of up to $10 million. The charge of misuse of a social security number provides for a sentence of up to five years in prison, three years of supervised release, and a fine of up to $250,000. The charge of aggravated identity theft carries a sentence of two years to be served consecutively with any other sentence, up to 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 U.S. Attorney Levy, DEA SAC Boyle and SSA-OIG SAC MacDermott made the announcement today. Valuable assistance was provided by the Bristol District Attorney’s Office and the New Bedford Police Department. Assistant U.S. Attorney Evan Panich of the Narcotics & Money Laundering Unit is prosecuting the case.

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

BOSTON – A Chelsea man has been indicted by a federal grand jury in Boston with illegally selling machinegun conversion devices.

Michael Williams, 49, was indicted on two counts of transferring or possessing a machinegun and one count of being a felon in possession of ammunition. Williams was previously arrested and charged by criminal complaint on July 28, 2023.

According to the charging documents, in January 2023, Williams agreed to sell several machinegun conversion devices and other firearm accessories to an undercover federal agent. It is alleged that, following a series of communications, Williams met the undercover agent twice at a pre-arranged location. It is further alleged that on Jan. 12, 2023, Williams sold the first machinegun conversion device, along with numerous rounds of ammunition, to the undercover agent. On the following day Williams allegedly sold two additional machinegun conversion devices to the undercover agent. Williams is prohibited from possessing a firearm or ammunition due to a prior felony conviction.

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. 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; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Chelsea Police Chief Keith Houghton 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 defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – The United States Attorney’s Office filed a civil forfeiture action to recover cryptocurrency alleged to be proceeds of a business email compromise (BEC) scheme targeting a Massachusetts resident. The government seeks to forfeit 18.836 bitcoin (BTC) seized from an account located at Binance.US, a cryptocurrency exchange and custodian. 18.836 BTC has a current estimated value of approximately $500,000.

In June 2022, an investigation began into a BEC fraud scheme targeting a Massachusetts resident. In a BEC fraud, individuals obtain unauthorized access to email accounts that a business uses to send information about commercial, real estate, and other financial transactions. Targets impersonate individuals expecting to receive money from these transactions and send requests that payments be directed to a network of bank accounts that they control. Perpetrators behind BEC fraud schemes are often located overseas.  

As alleged in court documents, a Massachusetts resident was tricked into wiring $400,000 into a bank account located in California, and some of those funds were subsequently transferred to Binance.US where they were used to purchase 18.836 BTC. Investigators traced the funds to a Binance account, and the BTC was seized in July 2023.  

It is a violation of federal law to use wire communications as part of a scheme to defraud or to obtain money or property by means of false or fraudulent pretenses. The complaint alleges that the seized cryptocurrency was traceable to proceeds of the wire fraud. A civil forfeiture action allows third parties to assert claims to property, which must be resolved before the property can be forfeited to the United States and returned to victims.

This is the fifth civil forfeiture action the U.S. Attorney’s Office has filed seeking to forfeit cryptocurrency traced to fraud schemes targeting Massachusetts victims. 

Members of the public who believe they are victims of a cybercrime – including cryptocurrency scams, romance scams, investment scams and BEC fraud scams – should contact USAMA.CyberTip@usdoj.gov. 

Acting United States Attorney Joshua S. Levy and Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office made the announcement today. The civil forfeiture action is being prosecuted by Assistant U.S. Attorney Carol E. Head, Chief of the Asset Recovery Unit. 

The details contained in the civil forfeiture complaint are allegations. The United States Attorney’s Office has not filed a corresponding criminal action on the matter.

BOSTON – A Taunton woman has been sentenced in federal court in Boston for possessing cocaine intended for distribution.

Kiyanna Ambers, 42, was sentenced on Aug. 22, 2023 by U.S. District Court Judge Richard G. Stearns to 18 months in prison and three years of supervised release. In August 2020, Ambers pleaded guilty to one count of possession with intent to distribute cocaine base and cocaine. Ambers participated in the Court-run RISE program (Repair, Invest, Succeed, Emerge), which she successfully completed. 

In June 2020, following a multi-week investigation into Ambers and her associates, a search warrant was executed at Ambers’ residence. During the search, multiple baggies of white powder containing a total of over 340 grams of cocaine and cocaine base, as well as approximately $11,462 were recovered in Ambers’ home. 

Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Lauren A. Graber of the Criminal Division 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 Dorchester man was sentenced today in federal court in Boston for his role in online romance scams targeting individuals in the United States.

Mike Oziegbe Amiegbe, 45, was sentenced by U.S. District Court Judge Indira Talwani to six months in prison, three months of home confinement, and three years of supervised release. Amiegbe was also ordered to pay $828,325 in forfeiture and restitution to victims. In February 2022, Amiegbe pleaded guilty to one count of conspiracy to commit mail fraud.

From 2017 through 2020, Amiegbe opened bank accounts using fake passports in others’ names to receive the proceeds from online scams, including romance scams. The romance scammers used fake identities to communicate with victims through online social networks and gained the victims’ affection and trust. The scammers then tricked the victims into sending money to Amiegbe. After Amiegbe received the victims’ money, he withdrew the fraud proceeds in cash or with a cashier’s check and sent the money to his co-conspirators overseas. 

Acting United States Attorney Joshua S. Levy; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Jonathan Davidson, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and William Kalb, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration, Office of Investigations, New York Field Office made the announcement today. Assistant U.S. Attorneys Christopher Markham and Kristen Kearney of the Securities, Financial & Cyber Fraud Unit prosecuted the case.  

BOSTON – A Belchertown man was convicted today by a federal jury of fraudulently receiving Social Security disability benefits.   

Kenneth Pontz, 59, was convicted following a three-day jury trial of one count of theft of public funds. Pontz was arrested and charged in June 2022. He is scheduled to be sentenced on Jan. 4, 2024. 

Over a period of more than six years, Pontz stole approximately $49,929 in Social Security disability benefits.

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; 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 – An Antigua man has been arrested more than a decade after being charged in connection with his participation in a large-scale illegal gambling business which utilized an Antiguan Internet site but operated in the continental United States. 

Richard Sullivan, 73, of St. John’s, Antigua, was indicted by a federal grand jury in Boston in August 2010 with racketeering (RICO), operating an illegal gambling business, transmission of wagering information, money laundering and interstate travel in aid of racketeering. Sullivan was arrested on Aug. 20, 2023 at John F. Kennedy International Airport in New York while proceeding through customs upon his return to the United States from Antigua. Sullivan was arraigned in the Eastern District of New York on Aug. 21, 2023 and will appear in federal court in Boston at a later date. 

This prosecution marked one of the first times that individuals were charged with violating the Unlawful Internet Gambling Enforcement Act (UIGEA), and the first in Massachusetts. The UIGEA statute was enacted in 2006 to deter the use of the U.S. banking system to pay Internet gambling debts incurred by U.S. citizens. Sullivan and his co-defendants are charged with over 75 counts of engaging in U.S. banking transactions involving U.S.-based gamblers to pay gambling debts owed to Sports Offshore.

According to the indictment, Sullivan and his three co-conspirators – Todd Lyons, Robert Eremian and Daniel Eremian – operated Sports Offshore, an online gambling site licensed in Antigua that was actually operating in the United States, conducting an illegal gambling business that stretched from Massachusetts to Florida. It is alleged that Sports Offshore used an Internet site and toll-free telephone line registered in Antigua to service United States customers. The ring also allegedly employed approximately 50 gambling agents in the United States, who solicited hundreds of customers and collected gambling debts, forwarding the illegal gambling proceeds to Antigua.

To conceal the conspiracy, Sullivan and his co-conspirators allegedly created numerous fictitious entities with no legitimate business purpose to launder the proceeds of their illegal gambling business so that authorities could not detect U.S.-based financial transactions involving Sports Offshore. 

Sullivan allegedly managed the daily activities of Sports Offshore at its gambling office in St. John’s, Antigua. In that capacity, Sullivan allegedly supervised approximately 30-50 employees who accepted wagers from customers in the United States that were placed over the telephone and the Internet. It is alleged that Sullivan directed collection activities regarding customers and agents located in the United States who owed money to Sports Offshore. Sullivan also allegedly served as an agent for Sports Offshore, in that he was responsible for a group of Massachusetts customers who gambled with Sports Offshore and he earned commissions on gambling losses incurred by those customers. It is further alleged that Sullivan utilized individuals who resided in Massachusetts to collect money from his Massachusetts customers which he had shipped directly to Antigua via the mail.  

In total, Sullivan and his co-conspirators allegedly collected over $22 million for Sports Offshore through the illegal gambling operation and laundered more than $10 million in checks and wire transfers.

In December 2011, Lyons and Daniel Eremian were convicted following a five-week jury for their roles in the conspiracy. Lyons was sentenced to four years in prison, one year of supervised release and was ordered to forfeit $24.6 million. Daniel Eremian was sentenced to three years in prison, one year of supervised release and was ordered to forfeit $7.7 million. 

The charge of racketeering 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. The charge of operating an illegal gambling business provides for a sentence of up to five years in prison, and up to two years of supervised release and a fine of up to $250,000. The charge of transmission of wagering information provides for a sentence of up to two years in prison, and up to one year of supervised release and a fine of up to $250,000. The charge of 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. The charge of interstate travel in aid of racketeering provides for a sentence of up to five years in prison, and up to two 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; Harry Chavis, Jr., Special Agent in Charge of Internal Revenue Service, Criminal Investigation, Boston Field Office; Brian Kyes, United States Marshal for the District of Massachusetts; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the United States Attorney’s Office for the Eastern District of New York and the Essex County District Attorney’s Office. Assistant U.S. Attorney Dustin Chao, Chief of the Public Corruption & Special Prosecutions Unit is prosecuting the case.

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

BOSTON – The United States Attorney’s Office filed a civil forfeiture action to recover cryptocurrency alleged to be proceeds of an investment fraud scheme targeting a Massachusetts resident. The government seeks to forfeit 87,637 Tether (USDT) seized from an account located at Binance, a cryptocurrency exchange and custodian. 

In November 2022, an investigation began into a cryptocurrency investment fraud scheme targeting a Massachusetts resident. As alleged in court documents, the individual was tricked, through fraudulent text and WhatsApp messages, into transferring a total of $975,900 from his bank account first into two cryptocurrency exchanges and then from there into a fraudulent cryptocurrency exchange. 

From that transfer, the funds, in the form of cryptocurrency, were allegedly transferred through a series of intermediary cryptocurrency addresses. Ultimately, investigators were able to trace some of the funds to an account located at Binance, the contents of which were seized in May 2023.  

It is a violation of federal law to use wire communications as part of a scheme to defraud or to obtain money or property by means of false or fraudulent pretenses. The complaint alleges that the seized currency was proceeds of the wire fraud. A civil forfeiture action allows third parties to assert claims to property, which must be resolved before the property can be forfeited to the United States and returned to victims.

This is the fourth civil forfeiture action the U.S. Attorney’s Office has filed seeking to forfeit cryptocurrency traced to fraud schemes targeting Massachusetts victims. 

Members of the public who believe they are victims of a cybercrime – including cryptocurrency scams, romance scams, investment scams and business email compromise (BEC) fraud scams – should contact USAMA.CyberTip@usdoj.gov. 

Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement today. The civil forfeiture action is being prosecuted by Assistant U.S. Attorney Matthew M. Lyons of the Asset Recovery Unit. 

The details contained in the civil forfeiture complaint are allegations. The United States Attorney’s Office has not filed a corresponding criminal action on the matter.

BOSTON – A Braintree man has pleaded guilty in federal court in Boston to child pornography charges.

Michael Martin, 44, pleaded guilty on Aug. 14, 2023 to one count of possession of child pornography and one count of distribution of child pornography. U.S. District Judge Richard G. Stearns scheduled sentencing for Nov. 15, 2023. Martin was initially charged by criminal complaint in May 2022 and subsequently indicted by a federal grand jury in June 2022. 

On March 9, 2021, social media platform Tumblr reported to the National Center for Missing and Exploited Children that a Tumblr user – later identified as Martin – had suspected child pornography on their account. A subsequent search of Martin’s Braintree residence resulted in the seizure of various electronic devices storing child pornography. Additionally, a search of Martin’s Tumblr account determined that Martin has posted and received child pornography over the social media site. The child pornography included images of children believed to be between four and eight years old. 

The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years of supervised release and a fine of up to $250,000. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, at least 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; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; and Braintree Police Chief Tim Cohoon made the announcement today. Assistant U.S. Attorney David G. Tobin of the 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.

BOSTON – A Taunton woman pleaded guilty today to bribing a road test examiner at the Registry of Motor Vehicles (RMV) in Brockton to issue driver’s licenses to individuals who did not take road tests.

Neta Centio, 56, pleaded guilty before U.S. District Court Judge Leo T. Sorokin to one count of conspiracy to commit honest services mail fraud. Judge Sorokin scheduled sentencing for Nov. 20, 2023. Centio was charged on June 26, 2023. 

Centio paid a road test examiner at the Brockton RMV service center to misrepresent to the RMV that certain driver’s license applicants had passed their road test when, in fact, they had not even showed up for the test. As a result of the fraud, the RMV mailed driver’s licenses to unqualified applicants. Centio used CashApp to pay the road examiner in exchange for fraudulent passing scores on road tests. After Centio’s fraud was discovered, she told the road test examiner, “Don’t say nothing about the CashApp. . . . Break the phone.”

The charge of conspiracy to commit honest services mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a $250,000 fine. The charging document also seeks a $20,215 forfeiture money judgment based on the amount of the bribes. 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; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; and Christopher A. Scharf, Special Agent in Charge, U.S. Department of Transportation Office of Inspector General, Northeast Region made the announcement today. Assistant U.S. Attorneys Christine Wichers and Adam Deitch of the Public Corruption & Special Prosecutions Unit are prosecuting the case.

BOSTON – The owner of International Guatemala Musical and Fashion Accessories in New Bedford has pleaded guilty to producing and selling fraudulent government identification documents.  

Tomas Xirum, 48, pleaded guilty on Aug. 17, 2023 to three counts of unlawful transfer of document or authentication feature and three counts of unlawful production of document or authentication feature. U.S. District Judge Patti B. Saris Sentencing is scheduled for Jan. 11, 2024. Xirum was initially charged by criminal complaint in August 2022 and subsequently indicted by a federal grand jury in September 2022. 

On three separate occasions – May 10, 2021, June 23, 2021 and Aug. 11, 2022 – Xirum sold fraudulent Permanent Resident Cards (commonly referred to as “green cards”) and Social Security cards to undercover federal agents from his store. 

The charges of unlawful transfer of document or authentication feature and unlawful production of document or authentication feature each provide for a sentence of up to 15 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; and New Bedford Police Chief Paul Oliveira made the announcement today. Assistant U.S. Attorney David G. Tobin of the Major Crimes Unit is prosecuting the case. 

BOSTON – A Boston man has been charged for allegedly robbing three Boston businesses.  

Akeem Lahens, 33, was charged by criminal complaint with one count of affecting commerce by armed robbery. Lahens is currently in state custody on related charges and will appear in federal court in Boston at a later date. 

According to the charging documents, a series of commercial armed robberies occurred in Boston in late April and early May 2023: the armed robbery of Boost Mobile in Jamaica Plain on April 26, 2023; the armed robbery of Cricket Wireless in Jamaica Plain on April 27, 2023; and the armed robbery of Dunkin Donuts in Dorchester on May 4, 2023. Law enforcement believed that the robberies were connected and the perpetrator was likely the same person, as the suspect’s appearance in surveillance footage and witnesses descriptions was the same. Additionally, in each of the robberies, the suspect allegedly brandished two large knives, made a verbal demand for money, forcibly took money from the store and forced or attempted to force the victims into a rear room or bathroom of the store. 

On May 5, 2023 Lahens was arrested on state charges related to the armed robberies. It is alleged that during a search of Lahens’ residence in Dorchester on May 6, 2023 two knives and sandals allegedly worn by the robber in the April 26, 2023 robbery were recovered.  

According to court records, at the time of the armed robberies, Lahens was on federal supervised release after pleading guilty on April 26, 2021 in the Southern District of New York to five counts of robbery. Lahens was sentenced to 30 months of in prison, followed by three years of supervised release.  

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

Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Boston Police Commissioner Michael Cox; and Michael A. Davis, Vice President Campus Safety and Chief of Police at Northeastern University made the announcement today. Assistant U.S. Attorney David G. Tobin of the Major Crimes Unit is prosecuting the case. 

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

BOSTON – An Amesbury man has pleaded guilty in federal court in Boston to child pornography charges. 

Thomas Cross, 30, pleaded guilty on Aug. 18, 2023 to one count each of distribution of child pornography, receipt of child pornography and possession of child pornography. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Nov. 15, 2023. Cross was charged by complaint in November 2018 and subsequently indicted by a federal grand jury in December 2018.

Cross’ charges stem from the November 2018 search of his home that resulted in the seizure of several electronic devices which contained files depicting child pornography and chats between Cross and a person subsequently identified as Desiree Daigle, in which they exchanged various child pornography files. Some of the images depicted an infant known to Daigle, taken in Daigle’s home. In the chat, the two discussed plans for Cross to meet the child in person so that he and Daigle could sexually abuse the child together. Both Cross and Daigle admitted to exchanging child pornography with each other. 

Daigle was arrested and charged separately with the sexual exploitation of children. In October 2022, she was sentenced to 17 years in prison and five years of supervised release. 

Cross was detained following his arrest in November 2018. He subsequently appealed the order of pretrial detention to the District Court, who released Cross in July 2019 on conditions which, among other things, prohibited him from accessing the internet, possessing pornographic material and possessing internet-accessible devices. However, in June 2020, Cross was re-arrested after a CyberTip identified he was using social media to exchange child pornography and he was found to be in possession of multiple cell phones and an internet-connected gaming console – in violation of his conditions of release. Cross has remained in federal custody since. 

The charges of distribution and receipt of child pornography each provide for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 20 years in prison. All the charges provide for a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Joshua S. Levy and Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistance was provided by the Amesbury Police Department. Assistant U.S. Attorney Anne Paruti, the Project Safe Childhood Coordinator and Chief of the 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.