District of Massachusetts

BOSTON – A Haverhill woman was sentenced on Feb. 3, 2023 for her role in a scheme to use stolen identities to fraudulently apply for and utilize bank accounts and credit cards. 

Neida Lopez, 45, was sentenced by U.S. Senior District Court Judge Timothy Hillman to 28 months in prison and three years of supervised release. Lopez was also required to pay restitution of $20,000. In May 2022, Lopez pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft.

Lopez and multiple co-conspirators were charged by criminal complaint in September 2020. She was subsequently indicted by a federal grand jury later that month. 

In furtherance of the scheme, in February 2020, Lopez appeared in person at a bank branch in South Portland, Maine and provided personal identifying information of a U.S. citizen on an application to open a checking account. She later used that same stolen identity to apply for and obtain a credit card which she and her co-conspirators maxed out the $20,000 limit.

At sentencing, Lopez was also held responsible for her role in a related conspiracy that used other stolen identities to apply for Economic Injury Disaster Loans, made available under the Small Business Administration (SBA). The co-conspirators used stolen identities to open fraudulent bank accounts, which were then linked to other fraudulent bank accounts set up to receive the SBA funds. Approximately $250,000 of the fraudulently obtained funds were then laundered through the purchasing of iPhones in Massachusetts and New Hampshire, which were then re-sold for cash. A portion of the funds was also wired to others in the Dominican Republic. In total, over $452,000 in SBA funds were fraudulently obtained in connection with the scheme. One of Lopez’s co-conspirators, Edwin Acevedo, pleaded guilty to his role in in the conspiracy on Jan. 5, 2023. He is scheduled to be sentenced on May 16, 2023.

United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Acting Special Agent in Charge of Homeland Security Investigations in New England; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Brockton Police Chief Brenda Perez made the announcement today. Assistance was provided by the Lowell, Lawrence, Methuen, Haverhill, Woburn and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna Nuzum and Adam Deitch of Rollins’ Criminal Division are prosecuting the case. The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.

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

BOSTON – A Boston man has been arrested and charged with a drug distribution offense involving fentanyl. 

Csean Skerritt, a/k/a “Shizz Grimmy,” a/k/a “Black,” 34, was arrested yesterday and charged with one count of distribution of 40 grams or more of fentanyl. Following an appearance in federal court in Boston this afternoon, Skerritt was detained pending a hearing scheduled for Feb. 14, 2023 at 2:30 p.m. 

According to the charging documents, on Feb. 1, 2023, Skerritt agreed to sell 50 grams of fentanyl to an individual in exchange for $1,500. It is alleged that, following a series of communications, Skerritt met the individual at a pre-arranged location. There, Skerritt allegedly entered the individual’s car and provided approximately 55 grams of fentanyl in exchange for the agreed-upon amount.

The charge of distribution of 40 grams or more of fentanyl provides for a sentence of at least 5 years and up to 40 years in prison, at least 4 years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Boston Police Commissioner Michael Cox; and Suffolk County District Attorney Kevin Hayden made the announcement today. Assistant U.S. Attorney John T. Dawley of Rollins’ 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.

“The Mashpee Wampanoags put their trust in Mr. Cromwell when they elected him to represent them. Mr. Cromwell violated and exploited that trust, lining his own pockets through a fraudulent business arrangement with Mr. DeQuattro. Their bribery scheme corrupted and stalled the most significant economic development project in the Tribe’s history. Last spring, a federal jury saw through the lies and found the defendants guilty of their shameful conduct. They were later held accountable at sentencing in November, with Mr. Cromwell receiving a three-year sentence.

Now, thanks to the Mashpee Wampanoag’s current leadership and tenacious legal counsel’s zealous advocacy, our office sought and secured restitution of $209,687.54 from Mr. Cromwell payable directly to the Tribe. This restitution judgment rightly addresses the immense harm these men inflicted upon the Mashpee Wampanoag Nation – harm to its reputation through Mr. Cromwell’s corruption; to its economic development through massive project delays and lost resources; and harm to its financial resources through the significant legal fees and expenses generated in their steadfast support and compliance with our investigation. It is my hope that this judgement closes the door on a dark chapter Mr. Cromwell wrote in the Wampanoag’s rich, extraordinary and profound history. With this corrupt member gone, I am hopeful the Tribe will thrive and flourish.”

BOSTON – A Middleboro financial adviser pleaded guilty today in federal court in Boston for defrauding his elderly and otherwise vulnerable clients and stealing the victims’ retirement assets.

Paul R. McGonigle, 67, pleaded guilty to one count of investment adviser fraud, two counts of money laundering, three counts of wire fraud, one count of mail fraud and one count of aggravated identity theft.  U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for June 22, 2023. McGonigle was initially charged in June 2021 and later charged in a superseding indictment in February 2022.

McGonigle served as a financial adviser for the victims, many of whom were elderly, one of whom had dementia, and another who suffered a traumatic brain injury. Beginning no later than February 2015, McGonigle caused unauthorized withdrawals from victims’ annuities and induced victims to give him money to invest on their behalf, which he then used for personal and business expenses. To carry out his scheme, McGonigle posed as clients on calls with their annuity companies and signed their names on forms requesting withdrawals from their annuities.  

The charge of investment adviser fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charges of money laundering provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charges of mail and wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charge of aggravated identity theft provides for a mandatory consecutive sentence of two years in prison, up to one year of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense, 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

United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Massachusetts Insurance Fraud Bureau provided valuable assistance with the investigation. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.

BOSTON – Two Brookline physicians were charged in a superseding indictment today with tax evasion and a conspiracy to defraud the Internal Revenue Service.  
 
Dr. Pankaj Merchia, 49, of Brookline and Boca Raton, Fla., and Dr. Shona Pendse, 50, of Brookline, were indicted on two counts of tax evasion each and one count of a conspiracy to defraud the IRS. Merchia was previously indicted on one count of health care fraud and three counts of money laundering in December 2022.
 
According to the charging documents, Merchia and Pendse conspired to use a sham $30 million transaction as a basis to take fraudulent tax deductions and then made false statements about the transaction to criminal investigators and in civil depositions. Specifically, Pendse allegedly provided her employer with a W-4 that claimed her to be tax exempt, thus ensuring her employer would vastly underwithhold federal income tax. It is further alleged that Merchia earned substantial income from third party business entities in 2017 and 2019, and Pendse earned substantial income from her employer in 2019 and 2020, but each willfully avoided paying taxes on that income.

According to court documents, Merchia allegedly perpetrated two distinct health care fraud schemes. Specifically, Merchia allegedly billed former patients’ insurance companies for monthly rentals of Continuous Positive Airway Pressure (CPAP) and Bilevel Positive Airway Pressure (BiPap) machines years after the former patients had discontinued their use of the machines and/or returned the machines to Merchia’s office. It is further alleged that Merchia used the proceeds of this fraud to purchase an expensive home in Brookline. 

Additionally, Merchia allegedly billed the insurance company of a family member over $400,000 for a monthly rental of a CPAP machine, despite knowing that the insurance carrier would not pay for treatment rendered by a family member. It is alleged that Merchia used the proceeds of this fraud to fund a wire transfer of $250,000 and to purchase at least $140,000 in securities.  
 
The charges of money laundering and health care fraud 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 charges of tax evasion and conspiracy to defraud the IRS 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.

United States Attorney Rachael S. Rollins; Joleen Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony M. DiPaolo, Executive Director of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorneys Lauren A. Graber of Rollins’ Health Care Fraud Unit and Evan D. Panich of Rollins’ Narcotics & Money Laundering Unit are prosecuting the case.   

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

BOSTON – A supervisor for the U.S. Postal Service was sentenced today in federal court in Worcester for stealing packages containing cocaine on at least eight occasions.

Kevin Dombroski, 43, of Worcester, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 13 months in prison and three years of supervised release. In August 2022, Dombroski pleaded guilty to one count of theft of mail by an employee of the U.S. Postal Service.

Dombroski was employed as Postal Service Supervisor at the Worcester Main Post Office. On eight to 10 occasions, Dombroski stole packages that had been mailed from Puerto Rico to addresses in Worcester he believed would contain cocaine. Specifically, Dombroski removed said packages from the main processing area of the Post Office and took them into a private office where he would open the parcel and remove the narcotics before returning the package back to the floor for delivery. Dombroski then sold the contents to an acquaintance, who paid him $7,500 for each package.  

United States Attorney Rachael S. Rollins; Matthew Modafferi, Special Agent in Charge of the Northeast Area Field Office of the U.S. Postal Service, Office of Inspector General; and Matthew Millhollin, Special Agent in Charge for Homeland Security Investigations in New England made the announcement. Assistant U.S. Attorney Kristen Noto of Rollins’ Worcester Branch Office prosecuted the case.

BOSTON – The leader of a Brockton-based drug-trafficking organization (DTO) agreed to plead guilty yesterday to gun and drug offenses.  

Kevin Cardoso, 26, of Brockton, pleaded guilty to one count of being a felon in possession of a firearm and ammunition; one count of possession with intent to distribute over 500 grams of cocaine, over 400 grams of fentanyl and over 500 grams of methamphetamine; and one count of conspiracy to distribute and possess with intent to distribute over 500 grams of cocaine, over 400 grams of fentanyl and over 500 grams of methamphetamine. The Court deferred acceptance of the proposed plea agreement until sentencing, which U.S. District Court Judge Richard G. Stearns scheduled sentencing for June 1, 2023. Cardoso was initially arrested and charged by criminal complaint in December 2021. He was subsequently charged by an Information on Jan. 17, 2023.  

According to court documents, Cardoso oversaw a DTO that distributed wholesale quantities of controlled substances, including cocaine, fentanyl and methamphetamine in and around the Brockton area. Multiple locations at which DTO members allegedly stored, prepared, or distributed narcotics were located during the investigation – some of which were identified based on the electronic location monitoring data from the ankle bracelet Cardoso’s was wearing at the time while on pretrial release for two pending state gun charges, as well as drug-trafficking related communications and images he was transmitting via his identified Snapchat account.

During an October 2021 search of a stash location Cardoso allegedly operated and managed in Dedham, at least 2,000 grams of cocaine, at least 3,000 grams of fentanyl, at least 5,000 grams of methamphetamine, drug packaging materials, blender parts, multiple respirators, press equipment (including a hydraulic press, press plates and various symbols, logos and emblems for drug-labeling purposes) and approximately $72,000 cash were recovered. 

Additionally in October 2021, during a search of Cardoso’s apartment, a firearm and ammunition, at least 20 cellphones, over $26,000, an Audemars Piguet watch and a diamond pendant with the number “39” were recovered. A number of the seized phones contained drug-trafficking communications allegedly between Cardoso and others regarding the supply and/or distribution needs of the DTO’s members and its customer base. At the time of Cardoso’s arrest, law enforcement recovered over $6,000 from his person and vehicle, as well as three additional cellphones.

The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000.  The charge of possession with intent to distribute 500 grams and more of cocaine, 400 grams and more of fentanyl, and 500 grams and more of methamphetamine provides for a sentence of at least 10 years 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 conspiracy to distribute and possess with intent to distribute 500 grams and more of cocaine, 400 grams and more of fentanyl, and 500 grams and more of methamphetamine provides for a sentence of at least 10 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Rachael S. Rollins; Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Boston Police Commissioner Michael Cox; Brockton Police Chief Brenda Perez; Bridgewater Police Chief Christopher D. Delmonte; East Bridgewater Police Chief Paul O’Brien; Westport Police Chief Keith A. Pelletier; Dedham Police Chief Michael D'Entremont; Plymouth Police Chief Michael E. Botieri; Newton Police Chief John F Carmichael Jr.; Suffolk County Sheriff Steven W. Tompkins; Bristol County Sheriff Thomas Hodgson; and Plymouth County Sheriff Joseph D. McDonald made the announcement today. Assistant U.S. Attorney Kaitlin R. O’Donnell of the Organized Crime & Gang Unit is prosecuting the case.

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

The details contained in the 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 Milton man has been indicted by a federal grand jury in Boston on drug trafficking charges. 

Brandy Soto-Lara, 25, was indicted on one count of possession with intent to distribute cocaine and 40 grams or more of fentanyl. Soto-Lara was previously arrested on Jan. 11, 2023 and has remained in custody since.

According to the charging documents, during a search of Soto-Lara’s apartment in November 2018, over 400 grams of cocaine and over 40 grams of fentanyl was seized. Additionally, $6,000, a loaded firearm with an obliterated serial number, firearm parts and ammunition were recovered also from Soto-Lara’s apartment. 

The charging statute provides for a mandatory minimum sentence of five years in prison up to 40 years in prison, at least four years and up to a lifetime supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Suffolk County District Attorney’s Office. Assistant U.S. Attorneys Philip C. Cheng and Lucy Sun of Rollins’ Organized Crime & Gang Unit are prosecuting the case.

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

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

The details contained in the 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 Maine man was sentenced today in federal court in Boston for travelling to have sex with a minor and possessing child sexual abuse material (CSAM).

Patrick Plummer, 31, of Parsonsfield, Maine, was sentenced by U.S. District Court Judge Casper to 13 years in prison and five years of supervised release. In September 2022, Plummer pleaded guilty to one count of attempted enticement of a minor, one count of intent to engage in illicit sexual conduct with a person under 18 years of age and one count of transportation of child pornography. He has remained in custody since his arrest on related state charges in September 2020. 

“This case is another terrifying reminder of the real-life dangers of the internet and the predators that lurk online with the sole intent of targeting, exploiting and sexualizing our children. Mr. Plummer, a grown man, admitted that he was also targeting 10 other young girls. Extensive amounts of CSAM – including two-year-old’s being sexualized and tortured – was discovered on his electronic devices. This is every parent’s nightmare,” said United States Attorney Rachael S. Rollins. “Protecting the safety, innocence and wellbeing of our children is some of the most important work we do. Today’s sentence results in one less predator able to harm our children.”

“It is not uncommon for child predators like Patrick Plummer to cast a wide net online to see who responds and whom they can victimize. In this case, that’s how the FBI uncovered Mr. Plummer’s heinous conduct. Today’s sentence demonstrates our commitment to ensuring that sexual predators like him are held accountable for their crimes and removes a dangerous threat from our community,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “There are very few situations more urgent than when a child is physically at risk. Those who sexually exploit children do serious lasting harm and possessing and trading child sexual abuse material only perpetuates the abuse.”

In September 2020, Plummer sent a private message to an undercover officer posing as a 13-year-old girl in an online chatroom. Plummer indicated that he was 24 years old and lived in Maine. After confirming the purported minor was 13 years old, Plummer devised a plan to meet her in Georgetown, Mass. to have sex and discussed specific sexual conduct he wanted to engage in with her and directed the purported minor not to wear undergarments.

On Sept. 26, 2020, Plummer drove from Maine to a predetermined location in Georgetown. Plummer was arrested on scene, at which time four cell phones, a computer and a spring-release knife were found in his possession. Forensic analysis of the electronic evidence seized from Plummer’s car revealed over 7,000 images and approximately 74 videos of CSAM on at least three of the devices. The CSAM included multiple images of children as young as two years old being tortured. 

Plummer admitted that he had traveled from Maine to meet the purported 13-year-old girl; that he was talking to approximately 10 underaged girls; and that CSAM would be found on his devices. Plummer further admitted that he shared these images with other individuals through Kik Messenger. The investigation also revealed that, prior to this case, Plummer had posed as a 19-year-old female on Kik Messenger to solicit photos from underaged girls for distribution to other users – in some instances using graphic threats such as, “I’ll chop you up into a million pieces,” to compel minors to share images with him. 

U.S. Attorney Rollins, FBI SAC Bonavolonta and Georgetown Police Chief Donald C. Cudmore made the announcement. The Essex County District Attorney’s Office and the Salisbury and Newbury Police Departments provided assistance with the investigation. Assistant U.S. Attorneys Meghan C. Cleary and J. Mackenzie Duane of Rollins’ Major Crimes Unit prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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 Mexican man residing in Leominster was sentenced today in federal court in Worcester for illegally reentering the United States and forcibly interfering with an Immigration and Customs Enforcement (ICE) agent in an effort to evade arrest.

Eduardo Alvarez, 32, was sentenced by U.S. District Court Magistrate Judge Mark G. Mastroianni to one year in prison and one year of supervised release. In September 2022, Alvarez pleaded guilty to one count of illegal reentry after deportation and one count of forcibly assaulting, resisting, or impeding a federal officer engaged in the performance of official duties. 

On the morning of Feb. 16, 2022, ICE officers travelled to a residence in Leominster where Alvarez was reportedly located, and observed Alvarez driving away from in a white Audi. They followed the vehicle and attempted to pull Alvarez over by activating lights and sirens. Officers then attempted to stop Alvarez by positioning their vehicles in front and behind the Audi. Alvarez accelerated and struck the front vehicle, with the ICE officer still in the driver’s seat. Alvarez then drove off traveling through a red-light into oncoming traffic, forcing other vehicles including law enforcement onto the side of the road before stopping at his own residence, where he attempted to hide from officers for approximately 90 minutes before surrendering.

Alvarez was previously removed from the United States in 2009 and 2011. In 2010, he was convicted of illegal reentry into the United States.
 
United States Attorney Rachael S. Rollins; Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations in Boston; and Leominster Police Chief Aaron Kennedy made the announcement. Assistant U.S. Attorney Kristen Noto of Rollins’ Worcester Branch Office prosecuted the case. 

BOSTON – A Florida man was sentenced today in federal court in Springfield for sending threatening communications to the Department of Veterans Affairs.

Drummond Neil Smithson, 31, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 14 months in prison and three years of supervised release. In November 2022, Smithson pleaded guilty to one count of use of interstate communications to transmit a threat to injure.

On or about July 19, 2020, Smithson, an Army veteran, mailed a threatening communication from Ayer, Mass., to the Department of Veterans Affairs threatening to injure members of Moms Demand Action, a grassroots organization advocating for the end to gun violence. In the letter, Smithson threatened, among other things, “If you take my pension there is going to be retaliation,” and, “You take my pension and the second I get out of prison I will go to a Moms Demand Action meeting […] Try me.”

United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Department of Veterans Affairs’ Office of Inspector General; Federal Bureau of Investigations, Miami Field Office; and Federal Medical Center, Devens, Special Investigations Section. Assistant U.S. Attorney Kristen Noto of Rollins’ Worcester Branch Office prosecuted the case.

BOSTON – A Worcester man pleaded guilty today to drug and firearm offenses.

Rodney Hall, 38, pleaded guilty to possession with intent to distribute more than 500 grams of cocaine and being a felon in possession of a firearm. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for May 17, 2023.  Hall was originally indicted by a federal grand jury in January 2021 and charged in a superseding indictment in September 2022.

On Sept. 30, 2020, Hall’s apartment was searched, where approximately 634 grams of crack cocaine, a loaded .25 caliber Beretta handgun, plastic baggies, $7,000 in cash and a digital scale were found.  Hall is prohibited from possessing a firearm due to his criminal history, which includes previous convictions for possession of a large capacity weapon and trafficking cocaine.

For the drug charge, Hall faces a minimum sentence of  five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. The charge of being a felon in possession of a firearm 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.

United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorneys John T. Mulcahy and Evan D. Panich of Rollins’ Criminal Division are prosecuting the case.

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

BOSTON – The owner of a tax preparation business in Jamaica Plain pleaded guilty today in federal court in Boston to preparing false tax returns for his clients.

Joseph Rodriguez, 72, pleaded guilty to one count of aiding or assisting in filing a false tax return. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Sept. 12, 2023. Rodriguez was charged on Dec. 9, 2022. 

On numerous occasions between 2014 and 2017, Rodriguez prepared and filed federal income tax returns for clients that contained false, inflated and incorrect information. Rodriguez added false, inflated and ineligible expenses on his clients’ Schedules A for medical and dental expenses, charitable contributions and unreimbursed employee business expenses. By inflating Schedule A deductions, Rodriguez decreased his clients’ taxable income and effectively increased the clients’ tax refunds. As a result, Rodriguez caused more than $2 million in tax loss to the IRS.

The charge of aiding or assisting in filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.

BOSTON – Four Boston Police Officers have been charged in a superseding indictment in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s (BPD) evidence warehouse.  

Lieutenant Timothy Torigian, 57, of Walpole; Sergeant Robert Twitchell (retired), 61, of Norton; Officer Henry Doherty (retired), 64, of Dorchester; and Officer Kendra Conway, 52, of Boston, were charged in a superseding indictment with one additional count each of conspiracy to commit wire fraud. The original indictment returned in September 2020 charged the defendants and five others with one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. Four of the co-defendants charged in original September 2020 indictment have since pleaded guilty and are awaiting sentencing. Charges against the remaining co-defendant were dismissed. 
 
According to the charging documents, the defendants were assigned to BPD’s Evidence Control Unit (ECU), where they were responsible for, among other things, storing, cataloging and retrieving evidence at the warehouse. ECU officers were eligible to earn overtime pay of 1.5 times their regular hourly pay rate for overtime assignments. It is alleged that beginning in at least May 2016, the defendants routinely departed overtime shifts two or more hours early but submitted false and fraudulent overtime slips claiming to have worked the entirety of each shift.  

One overtime shift, called “purge” overtime, was focused on reducing the inventory of the evidence warehouse. The shift was supposed to be performed from 4:00 to 8:00 p.m. on weekdays. It is alleged that on days which the defendants claimed to have worked until 8:00 p.m., the warehouse was closed, locked and alarmed well before 8:00 p.m., and often by 6:00 p.m. or before. Despite this, it is alleged that the defendants routinely submitted false and fraudulent overtime slips claiming to have worked from 4:00 to 8:00 p.m. Supervisors, who also left early from this shift, allegedly submitted their own false and fraudulent slips and knowingly endorsed the fraudulent overtime slips of their subordinates.  

Another shift, called “kiosk” overtime, was available to two ECU officers one Saturday per month from 6:00 a.m. to 2:30 p.m. This shift involved collecting materials, such as unused prescription drugs, from kiosks in each police district in the city and then transporting the materials to an incinerator in Saugus. It is alleged that defendants who performed this overtime shift routinely submitted overtime slips claiming to have worked eight and a half hours when in fact the defendants frequently completed the work and left the shift early, often before 10:00 a.m.

Between May 2016 and February 2019 the defendants allegedly collectively embezzled over $200,000 in overtime pay. According to court documents, Torigian received over $42,000 for overtime hours he did not work; Twitchell and Doherty each received over $25,000 for overtime hours they did not work; and Conway received over $16,000 for overtime hours she did not work.  

From 2016 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.  

The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. The charge of embezzlement from an agency receiving federal 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. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. 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.

United States Attorney Rachael S. Rollins; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Mark Grady of Rollins’ Criminal Division is prosecuting the case.

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

BOSTON – A Tewksbury man pleaded guilty today in federal court in Boston to bank robbery.

Nicholas O’Neil, 39, pleaded guilty to one count of bank robbery before U.S. Senior District Court Judge Douglas P. Woodlock who scheduled sentencing for June 5, 2023. O’Neil was charged in October 2020. 

On Sept. 22, 2020, an individual – later identified as O’Neil – entered a Santander Bank branch in Tewksbury, handed the teller a demand note and a red cloth bag. After obtaining cash from the teller, O’Neill exited the bank and sped away in a white pickup truck which was reported to police by a banking customer who had observed the robbery and followed the vehicle. The pickup truck was located a short time later and O’Neil was arrested without incident. The red cloth bag containing the stolen cash and demand note was found inside the vehicle. 

The charge of bank 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.

United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Tewksbury Police Chief Ryan M. Columbus made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Rollins’ Major Crimes Unit is prosecuting the case.

BOSTON – A Taunton man was sentenced yesterday in connection with his involvement in the violent Boston-based street gang, NOB. 

Samael Mathieu, a/k/a “Hamma” or “Hamma Thang,” 26, was sentenced by U.S. District Court Judge Leo T. Sorokin to 114 months in prison and four years of supervised release. In April 2022, Mathieu pleaded guilty to RICO conspiracy and conspiracy to distribute and to possess with intent to distribute controlled substances.

Mathieu is one of 10 defendants indicted together in June 2020 as part of a broader federal sweep targeting numerous NOB street gang members and associates in which 31 total defendants were charged. All of Mathieu’s co-defendants have pleaded guilty to various charges and are scheduled to be sentenced in the upcoming months.

According to court documents, NOB – an abbreviation for the Norton/Olney/Barry streets in Dorchester – is a violent criminal enterprise whose members and associates are involved in numerous types of criminal activities, including murders, attempted murders, armed robberies, drug trafficking, sex trafficking and illegal firearms offenses. During the investigation, numerous contraband items were seized including 11 firearms, over one kilogram of fentanyl (including over 2,000 fentanyl pills manufactured to appear as commercial oxycodone pills), a commercial pill press, over 15 pounds of marijuana and approximately $36,000 in cash.

Mathieu was a significant fentanyl trafficker and active and violent member of the NOB gang who supplied drugs to and supported various crimes on behalf of the gang.  On Oct. 1, 2019, a search of a residence used by Mathieu resulted in the seizure of drugs including fentanyl, pills, and suboxone, drug trafficking paraphernalia, and two loaded handguns.

First Assistant United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Bryan Kyes, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; New Bedford Police Chief Paul Oliveira; Quincy Police Chief Paul Keenan; Randolph Police Chief Anthony Marag; Brockton Police Chief Brenda Perez; Stoughton Police Chief Donna McNamara; Suffolk County District Attorney Kevin Hayden; Suffolk County Sheriff Steven W. Tompkins; Plymouth County Sheriff Joseph D. McDonald, Jr.; Bristol County District Attorney Thomas M. Quinn III; and Norfolk County Sheriff Patrick W. McDermott made the announcement today. Assistant U.S. Attorneys Michael Crowley and Sarah Hoefle of the Organized Crime & Gang Unit prosecuted the case. 

BOSTON – A Chicopee man pleaded guilty today in Springfield to receiving and possessing child sexual abuse material (CSAM).

Thomas Stemmer, 60, pleaded guilty to one count each of receipt and possession of child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for May 15, 2023. Stemmer was indicted by a federal grand jury in September 2019.

In 2015, Stemmer received and possessed CSAM, including images and videos, which he downloaded using an encrypted network. The CSAM included prepubescent minors who had not attained 12 years of age. 

The charge of receipt 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. The charge of possession of child pornography involving an image of child pornography involving a prepubescent minor or a minor who had not attained 12 years of age 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. 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.

United States Attorney Rachael S. Rollins and Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement today. Assistant U.S. Attorney Catherine G. Curley of Rollins’ Springfield Branch Office is prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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 – U.S. Attorney Rachael S. Rollins recognizes Human Trafficking Prevention Month and reaffirms the office’s commitment to seeking justice for all trafficking victims and survivors. 

In August 2022, Rollins created a new standalone criminal Civil Rights and Human Trafficking Unit which has, to date, charged nearly a dozen new criminal cases and initiated several other ongoing investigations in the areas of sex trafficking, labor trafficking and human smuggling. Since its inception, the new unit has assisted 15 victims in eight different states who were victims of trafficking here in Massachusetts. On the prevention front, the office just kicked off an indicator training series this month – partnering with Homeland Security Investigations – aimed at a broad range of employers, including city and state inspectors, as well as hospitality and travel employees, just to name a few. 

“Human trafficking is modern day slavery. It is a civil rights violation of the highest order that impacts victims across races, genders, age, immigration status and socio-economic standing. Traffickers use threats, lies, grooming techniques, or violence to exploit vulnerabilities, manipulate and control their victims. Sadly, this crime often goes entirely unseen or ignored. That is why we launched our indicator training series with HSI – to educate the public about labor and sex trafficking and to expose how prevalent it is here in Massachusetts. We recently trained over 100 public employees in Boston, with additional trainings sessions forthcoming. My hope is that by providing people across all sectors the tools they need to spot signs of human trafficking and by sharing the lived experiences of those who have endured it, we can encourage and empower workers in all trades to take part in helping protect the welfare of our most vulnerable. Human trafficking is a real threat to human dignity, public safety and public health. We need urgent and meaningful solutions,” said United States Attorney Rachael S. Rollins.

As part of its outreach efforts, the U.S. Attorney’s Office has established strong community partnerships with several local and state agencies to increase and improve collaboration. This includes regular meetings with the Commonwealth Anti-Trafficking Task Force; the Governor’s Council to Address Sexual Assault and Domestic Violence’s Human Trafficking Subcommittee; the Western Massachusetts Human Trafficking Task Force; and the Plymouth County Human Trafficking Task Force. The office has also committed to continuing to meet with and learn from survivor-lead organizations across Massachusetts.

If you or someone you know may be impacted or experiencing human trafficking, please visit https://polarisproject.org/ for information and resources. 

BOSTON – The founder of “My Big Coin,” a purported cryptocurrency and virtual payment services company headquartered in Las Vegas, Nev., was sentenced today in federal court in Boston for marketing and selling fraudulent virtual currency and operating an unlicensed virtual currency exchange.

Randall Crater, 52, of Lake Mary, Fla., was sentenced by U.S. District Court Judge Denise J. Casper to 100 months in prison and three years of supervised release. Crater was also ordered to pay forfeiture of $7,668,317 and restitution in an amount that will be determined at a later date. In July 2022, Crater was convicted by a federal jury of four counts of wire fraud, three counts of unlawful monetary transactions and one count of operating an unlicensed money transmitting business. 

“For nearly four years, Mr. Crater perpetrated a brazen fraud scheme that preyed on investors and customers who put their faith in him and his fake business, resulting in victim losses of over $7.5 million. He saw the growing crypto marketplace as an opportunity to create the illusion of My Big Coin as a legitimate service from which investors would yield a profit. His lies and deception inflicted real trauma, pain and hardship on the lives of 55 individual victims and their families who funneled their money into bank accounts Mr. Crater controlled and used to finance his extravagant lifestyle,” said United States Attorney Rachael S. Rollins. “I hope today’s sentence sends a strong message that fraudsters – in any market – who seek to exploit others will be found and brought to justice.”

“Spreading outright lies, Randall Crater defrauded dozens of victims out of more than $7.5 million, convincing them their cryptocurrency investments were backed by gold when in reality their hard-earned money went to funding his lavish lifestyle,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The harm done here was significant—delayed retirement, tuition money lost, lives turned upside down—all because of one man’s greed. Today’s lengthy sentence doesn’t right those wrongs, but it does ensure Mr. Crater won’t be victimizing anyone else.”

“The excitement of being part of a new market in cryptocurrency can be very enticing to those who want to be in at the forefront; but in this case they found their investment was nothing more than an investment in Mr. Crater’s lavish lifestyle. Postal Inspectors remind consumers to thoroughly investigate all offers and don’t rely on what they’re told, even if they believe there is protection in their investments and deposits through the name recognition of an alleged renowned partner. In this case it was all lies, and now Mr. Crater will be held accountable for his illegal activities,” said Eric Shen, Inspector in Charge of the U.S. Postal Inspection Service’s Criminal Investigations Group.

Founded in 2013, My Big Coin claimed to offer virtual payment services through a fraudulent digital currency (or “Coins”), which Crater marketed to investors between 2014 and 2017 using misrepresentations. Crater, along with agents he paid to promote the scheme, claimed that the Coins were a fully functioning cryptocurrency backed by gold and that My Big Coin had a partnership with MasterCard. Crater also operated the My Big Coin Exchange, which was advertised as a fully functioning currency exchange where Coins could be transferred for government-backed fiat currency or other virtual currencies. Crater and others made these misrepresentations through social media, the internet, email and text messages.

In reality, the Coins were not backed by gold or other valuable assets, did not have a partnership with MasterCard and were not readily transferable on the My Big Coin Exchange. Over the course of the scheme, Crater obtained over $7.5 million from investors and customers, which he used to buy a house, cars, and over $1 million in antiques, artwork and jewelry. 

In January 2018, the Commodity Futures Trading Commission (CFTC) alleged that My Big Coin was a fraud. The CFTC also filed civil charges against Crater and several of his associates for their involvement in the scheme. The civil action was stayed on March 8, 2019, pending resolution of the criminal case. 

U.S. Attorney Rollins; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; FBI SAC Bonavolonta; and USPIS Inspector in Charge Shen made the announcement today. The CFTC, the Internal Revenue Service, and the U.S. Department of the Treasury Financial Crimes Enforcement Network also provided valuable assistance with the matter. Assistant U.S. Attorney Christopher J. Markham, of Rollins’ Securities, Financial & Cyber Fraud Unit, and Trial Attorney Babasijibomi Moore of the Criminal Division’s Fraud Section prosecuted the case. 

BOSTON – A Dominican man pleaded guilty today in federal court in Boston to illegally reentering the United States after deportation. 

Jonathan Alcequiez-Sanchez, 35, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. Senior District Court Judge Woodlock scheduled sentencing for June 1, 2023. Alcequiez-Sanchez was charged by criminal complaint on Nov. 25, 2022. 
Alcequiez-Sanchez was deported from the United States on Sept. 18, 2018, after being arrested in the Bronx, N.Y. for unlawful entry. Sometime after his September 2018 removal, Alcequiez-Sanchez illegally reentered the United States.

On or about Dec. 27, 2021, Alcequiez-Sanchez was convicted in Lawrence District Court of drug distribution and weapons charges for which he was sentenced to serve jail time at the Essex County House of Corrections. Alcequiez-Sanchez was taken into federal custody upon his release on Nov. 15, 2022.

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

United States Attorney Rachael S. Rollins and Todd M. Lyons, Field Office Director of the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations in Boston made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of Rollins’ Major Crimes Unit is prosecuting the case.

BOSTON – A Canton woman was sentenced today for her role in a fraud conspiracy involving romance scams and pandemic unemployment fraud.

Florence Mwende Musau, 38, was sentenced by U.S. District Court Allison D. Burroughs to 44 months in prison and 30 months of supervised release. Musau was also ordered to pay approximately $957,000 in restitution and to forfeit approximately $350,000 and a Lexus SUV.  In 2021, Musau was charged with, and pleaded guilty to, conspiracy to commit wire fraud and bank fraud. 

Musau participated in a conspiracy involving romance scams and other online frauds designed to deceive victims into sending money to bank accounts controlled by her and others. Criminals perpetrating romance scams create fictitious profiles on online dating or social media websites, gain the trust of potential victims and then direct those victims to transfer money under false pretenses.

To further the conspiracy, Musau used fake passports in the names of numerous aliases to open bank accounts in and around Boston to receive the proceeds of the romance scams. Musau then executed large cash withdrawals from those accounts, generally structured in amounts less than $10,000, in an effort to evade detection and currency transaction reporting requirements. Musau also received the proceeds of fraudulent state pandemic unemployment assistance benefits in the names of victims. As part of the scheme, Musau used at least three different aliases to open nearly ten fraudulent bank accounts and receive approximately $1 million in fraud proceeds.

United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today.  Special assistance was provided by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant U.S. Attorney Ian J. Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.  

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, 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 – The United States Attorney’s Office filed a civil forfeiture action to recover cryptocurrency alleged to be proceeds of an online investment fraud scheme targeting victims in Massachusetts and elsewhere. The government seeks to forfeit 81,547 USDT (Tether) and 87,321 BEL (Bella Protocol) traceable to the fraud, which has been seized by the government. Tether is a unit of cryptocurrency that is equivalent in value to one U.S. dollar. Bella Protocol is also a cryptocurrency with a value that fluctuates with the market.

In April 2022, a federal investigation began into an investment fraud scheme that targeted a Massachusetts victim. As detailed in court documents, the victim had been contacted in March 2022 through LinkedIn by an alleged scammer. After further communications in Chinese through another application, the victim was lulled into making what she believed was a legitimate cryptocurrency investment. The victim was induced to download an application that appeared to be a legitimate cryptocurrency platform but was allegedly fraudulent, and then invested money through that fraudulent site.

During the investigation, a second victim in California was identified, who was also allegedly lulled into investing in a fraudulent cryptocurrency scheme after an initial contact through LinkedIn.

A portion of the funds the victims invested to another cryptocurrency wallet was traced, resulting in the seizure of 81,547 USDT and 87,321 BEL. 

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. 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 second civil forfeiture action the U.S. Attorney’s Office has filed seeking to forfeit cryptocurrency traced to an online investment fraud scheme 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 

United States Attorney Rachael S. Rollins and Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Carol E. Head, Chief of Rollins’ Asset Recovery Unit, is prosecuting the civil forfeiture action.

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 former naval police officer at the Portsmouth Naval Shipyard in New Hampshire has agreed to plead guilty to three counts of making threatening communications to his ex-wife and her mother in Iowa.

Luis De Leon, 30, of Middleton, was charged and has agreed to plead guilty to three counts of making threats in interstate commerce. A plea hearing has not yet been scheduled by the Court. De Leon was previously arrested and charged by criminal complaint on Sept. 26, 2022.

According to the charging documents, on or about April 30, 2022, De Leon made a threatening phone call to his ex-wife in Iowa from a mobile telephone belonging to another individual. Specifically, during the call, De Leon allegedly made several threatening statements including, “You’re gonna f****** pay! Do you understand!? There will be death! There will be war in the street! You wanna to go war!? I’ll take you to f****** war!”

Between May and June 2022, De Leon allegedly sent two letters containing threats to his ex-wife’s mother in Iowa. In the letters, it is alleged that De Leon wrote, among other things, “I’ll be heading over there soon […] God help you and your dysfunctional family if you try and stop me. I won’t be alone either just so you know and that’s for your safety NOT MINE!!! […] If you don’t believe me just look where I’m sending this from. I don’t really have much else to lose, and do you know what men with nothing left to lose usually do?”

The charge of making threatening communications in interstate commerce provides 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.

United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Timothy H. Kistner of Rollins’ 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 Canton man pleaded guilty on Jan. 27, 2023 in federal court in Boston to wire fraud and bank fraud conspiracy involving romance scams targeting individuals in the United States.

Mark Arome Okuo, 43, pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for March 29, 2023. Okuo was arrested and charged by criminal complaint in March 2021 and subsequently indicted by a federal grand jury in October 2021. He has been detained since his arrest.

Okuo participated in a conspiracy involving romance scams and other online frauds designed to deceive victims into sending money to accounts he controlled. Criminals perpetrating romance scams create fictitious profiles on online dating or social media websites, gain the trust of potential victims and then direct those victims to transfer money under false pretenses. To further the conspiracy, Okuo used fake passports in the names of aliases to open bank accounts in and around Boston to receive the proceeds of the romance scams. Okuo then executed large cash withdrawals from those accounts, generally structured in amounts less than $10,000, in an effort to evade detection. As part of the scheme, Okuo used at least four different aliases to open more than a dozen fraudulent bank accounts and receive approximately $1 million in fraud proceeds.

The charge of conspiracy to commit wire fraud and 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 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.

United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England, made the announcement today.  Special assistance was provided by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant U.S. Attorney Ian J. Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.  

BOSTON – Three men have been convicted in federal court in Boston for their roles in a violent kidnapping tied to a drug trafficking organization (DTO) that distributed heroin throughout the Cape Cod and Pawtucket, R.I., regions.

Anthony Basilici, 39, of Pawtucket, R.I., was convicted yesterday following a five-day jury trial of conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin; possession and discharge of a firearm in connection with a drug trafficking crime; kidnapping conspiracy; witness intimidation; and witness retaliation conspiracy.

On Jan. 18, 2023, shortly before trial commenced, Basilici’s two co-defendants, Edwin Otero, 33, of Hyannis, and Justin Joseph, 35, of Pawtucket, R.I., each pleaded guilty to conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin; possession of a firearm in connection with a drug trafficking crime; kidnapping conspiracy; and witness retaliation conspiracy. Otero also pleaded guilty to being a felon in possession of a firearm and witness intimidation.

U.S. District Court Judge Allison D. Burroughs scheduled Basilici’s sentencing for April 26, 2023 and sentencing for both Otero and Joseph for April 27, 2023.

“For years, members of Edwin Otero’s drug crew plagued the Cape Cod and Pawtucket communities with their heroin operation and the serious, violent crimes it fueled. These defendants actively participated in a violent scheme to kidnap, beat and terrorize a victim who they incorrectly believed was working with law enforcement,” said United States Attorney Rachael S. Rollins. “This case is a prime example of how drug trafficking activities drive violence in our neighborhoods. Law-abiding residents in our Commonwealth have a right to live their lives without from fear or intimidation by violent gangs. Thanks to the exceptional work by our investigative partners and prosecution team, this violent criminal enterprise has been brought to its knees – bringing peace and safety back to the Cape Cod and Pawtucket neighborhoods it once terrorized.”

“DEA is committed to investigating and dismantling Drug Trafficking Organizations who are responsible for distributing lethal drugs like heroin,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “This conviction not only holds these three men accountable for their crimes but serves as a warning to those traffickers who are fueling the opioid epidemic with deadly drugs in order to profit and destroy people’s lives. DEA’s top priority is combatting the opioid epidemic and the violent acts that often accompany it by working with our local, county, state and federal partners to bring to justice anyone who distributes this poison.”

In 2018, law enforcement began investigating a Cape Cod-wide DTO led by Otero. The investigation revealed Otero, Joseph, Basilici and their other co-defendants distributed large quantities of heroin throughout Cape Cod, including in Hyannis, Mashpee, Centerville, Osterville and in Pawtucket, R.I. As part of the conspiracy, Otero, Joseph and Basilici committed a May 2019 shooting related to a drug debt owed by a drug customer. Additionally, in April 2019, Otero, Joseph, and Basilici lured a victim from Massachusetts to Rhode Island where they kidnapped and held him, stripped him naked, assaulted him and threatened to rape him. Otero, Joseph, Basilici and other co-conspirators discussed causing physical injury to the victim to retaliate against him because they believed he was cooperating with law enforcement. Otero and Basilici also further intimidated or attempted to intimidate other witnesses after the kidnapping.

Otero, Joseph and Basilici were initially charged along with eight others in May 2019 on the drug conspiracy charges. In connection with those arrests, heroin, packaging materials, scales, a finger press as well as three firearms and ammunition including a 9 millimeter assault-style weapon were seized from Otero’s grandmother’s residence. In March 2020, Otero, Joseph, Basilici and two others – Cameron Cartier and Albert Lee – were indicted in connection with the violent kidnapping and related charges. Cartier and Lee previously pleaded guilty and are scheduled to be sentenced on Feb. 14, 2023 and Feb. 16, 2023, respectively. 

The charge of conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin provides for a sentence of up to 40 years in prison, up to a lifetime of supervised release and a fine of up to $5 million. The charge of possession and discharge of a firearm in connection with a drug trafficking crime provides for a sentence of at least 10 years and up to life in prison on and after any other sentence, up to five years of supervised release and a fine of up to $250,000. The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of kidnapping conspiracy provides for a sentence of up to life in prison, up to five years of supervised release and a fine of up to $250,000. The charges of witness intimidation and witness retaliation conspiracy provide for a sentence of no greater than 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.

U.S. Attorney Rollins, DEA SAC Boyle, Barnstable Police Chief Matthew K. Sonnabend and Barnstable County Sheriff Donna D. Buckley, made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Rollins’ Criminal Division are prosecuting the case. 

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

BOSTON – A Boston man has been charged in connection with the September 2022 robbery of a bank in Brookline.

Jerome Lamont Turner, 47, was charged with one-count of bank robbery and will appear in federal court in Boston on Jan. 31, 2023.

According to the charging documents, on Sept. 26, 2022, an individual – later identified as Turner – entered a Brookline Bank branch in Brookline. Once inside the bank, Turner allegedly approached a teller and inquired about opening a new account. Turner was provided a bank pamphlet on the process, and he exited the bank. A few minutes later, it is alleged that Turner reentered the bank, approached the same teller and handed them the pamphlet with the words, “Let me have 17,000 in Large bills no dye pack,” written on it. As the teller was gathering money from the cash drawer, it is alleged that Turner repeatedly motioned for more money before exiting the bank. 

A subsequent investigation allegedly identified Turner on the bank’s video surveillance from a previous arrest less than a week earlier and identified his fingerprints on the pamphlet. 

It is further alleged that on Sept. 27, 2022, Turner was located wearing the same clothing worn in the Brookline robbery. Following a violent struggle, Turner was taken into custody and allegedly found in possession of over $2,500 in cash.

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

United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Brookline Acting Chief of Police Jennifer Paster made the announcement.  Assistant U.S. Attorney Kenneth G. Shine of Rollins’ 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 former Everett man was sentenced yesterday in connection with multiple schemes to fraudulently obtain an apartment as well as pandemic-related relief funds from the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program made available under the Coronavirus Aid, Relief, and Economic Security Act.

Tedje Menard, 28, was sentenced by U.S. District Court Judge Allison D. Burroughs to 28 months in prison and three years of supervised release. In September 2022, Menard pleaded guilty to two counts of wire fraud, one count of false representation of a Social Security number and one count of aggravated identity theft. 

In or around November 2020, Menard applied to rent an apartment in East Boston using the name and identity of another person. As part of the application and screening process, Menard falsely claimed to be the victim by providing the company overseeing the property with, among other things, the victim’s name, social security number, date of birth and a copy of a purported North Carolina driver’s license containing the victim’s information but depicting a photograph of Menard. Menard also submitted an EIDL application in the amount of $40,000 using the victim’s name and personal identifiable information in June 2021. 

Additionally, in April 2021, Menard used his own name to apply for a PPP loan in the amount of approximately $20,833. In the loan application, Menard falsely represented his business’ total gross income in 2019 and his criminal history.

United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Department of Labor and the U.S. Secret Service, Boston Field Office. Assistant U.S. Attorneys J. Mackenzie Duane and Meghan C. Cleary of Rollins’ Major Crimes 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, 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.

BOSTON – Seven individuals, including three from Massachusetts, have been arrested in connection with their alleged involvement in a multi-state scheme to obtain millions of dollars in Paycheck Protection Program (PPP) funds for themselves and others through the submission of dozens of fraudulent applications to PPP lenders.

The following individuals are charged with conspiracy to commit wire fraud and conspiracy to commit unlawful monetary transactions:

•    Wallace Ford, 38, of Buford, Ga.; •    Erin Brown, 40, of Buford, Ga.; •    Adiana Pierre, 39, of Lookout Mountain, Tenn.; •    Gardy Alexandre, 51, of West Palm Beach, Fla.; •    Bill Dessaps, 46, of South Easton, Mass;  •    Wens Herby Mathurin, 26, of Brockton, Mass.; and
•    Richardson Rhau, 49, of Brockton, Mass.

The defendants were released on conditions following initial appearances in federal court in the Northern District of Georgia, the Eastern District of Tennessee, the Southern District of Florida and the District of Massachusetts, respectively. 

According to the charging documents, Ford, Brown, Pierre and Alexandre conspired to submit fraudulent PPP applications on behalf of numerous actual or purported businesses and non-profit organizations – including businesses operated by Dessaps and Mathurin – and to collect kickback payments from the borrowers for securing loan amounts.

It is alleged that Ford, who at the time operated three purported businesses or non-profits in Florida, submitted applications for PPP loans for those entities to several lenders in April and May 2020, shortly after PPP funds first became available in April 2020. Ford allegedly inflated the employee and payroll information about these entities on the applications. As a result, Ford obtained $168,121 in PPP funds for these entities.

Beginning in June 2020, Ford allegedly began submitting PPP applications on behalf of others, including Pierre and Alexandre. It is alleged that these applications misrepresented the number of employees and monthly payroll expenses of the applicants, and that Ford submitted these applications with falsified supporting documents. Alexandre and Pierre allegedly received PPP loans of $300,000 and $20,833, respectively, from these applications.

According to the charging documents, between June and August 2020, Ford fraudulently secured PPP funds for at least 27 borrowers. Pierre, Alexandre and others allegedly identified potential applicants and provided those applicants’ information to Ford and Ford’s spouse, Brown. Ford then submitted applications for those borrowers online, fabricating employee numbers and monthly payroll expenses. Ford also allegedly submitted false wage and tax forms in support of the misrepresentations on the applications and as a result, obtained approximately $7 million in PPP funds. It is further alleged that the borrowers who received PPP funds based on these fraudulent applications paid kickbacks to Ford and Brown, Pierre, Alexandre and others, commonly in amounts equal to 10 or 20 percent of the loan amount they received. Collectively, Ford, Brown, Pierre and Alexandre allegedly received over $1 million in kickback payments from borrowers – over $500,000 of which went to Ford and Brown.

The charging documents also allege that, in June 2020, Rhau connected Alexandre with both Dessaps, who operated a used car dealership in Abington, Mass., and Mathurin, who purportedly operated a warehouse and cargo delivery business. It is alleged that Alexandre and Pierre then forwarded information about Dessaps’ and Mathurin’s businesses to Brown and Ford, who submitted PPP applications to Kabbage. The application for Dessaps’ dealership falsely stated that the dealership had 40 employees and average monthly payroll expenses of $334,720. The application for Mathurin’s business falsely stated that the business had 25 employees and average monthly payroll expenses of $125,541. Ford also allegedly submitted falsified wage and tax forms with this application. As a result of the applications, Kabbage disbursed a PPP loan of $836,800 to Dessaps and a PPP loan of $313,852 to Mathurin.  

After receiving these funds, both Dessaps and Mathurin allegedly made kickback payments to Alexandre, and Mathurin sent additional payments totaling $45,000 to Rhau. With the PPP funds he received, Dessaps allegedly issued sham payroll checks to himself and his relatives, purchased a new residence for himself in South Easton in his sister’s name, paid $32,000 to French Bulldog breeders and purchased a Rolls Royce. Mathurin allegedly made large payments to himself and two purported co-owners of his business.  

The charging documents also allege that Rhau fraudulently obtained $104,166 in PPP funds and $94,800 in other pandemic relief funds as a result of applications containing misrepresentations that he submitted to lenders between April 2020 and April 2021.

The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. The charge of conspiracy to commit unlawful monetary transactions 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 value of the criminally derived property. 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.

United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit and Assistant U.S. Attorney Alexandra W. Amrhein of Rollins’ Asset Recovery 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, 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 defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Boston man was sentenced yesterday in connection with his involvement in the violent Boston-based street gang, NOB. 

Michael Brandao, a/k/a “G Fredo,” and “Frizzblock Fredo,” 22, was sentenced by U.S. District Court Judge Leo T. Sorokin to nine years in prison and three years of supervised release. In April 2022, Brandao pleaded guilty to RICO conspiracy and conspiracy to distribute and to possess with intent to distribute controlled substances.

Brandao is one of 10 defendants indicted together in June 2020 as part of a broader federal sweep targeting numerous NOB street gang members and associates in which 31 total defendants were charged. All of Brandao’s co-defendants have pleaded guilty to various charges and are scheduled to be sentenced in the coming months.

According to court documents, NOB – an abbreviation for the Norton/Olney/Barry streets in Dorchester – is a violent criminal enterprise whose members and associates are involved in numerous types of criminal activities, including murders, attempted murders, armed robberies, drug trafficking, sex trafficking and illegal firearms offenses. During the investigation, numerous contraband items were seized including 11 firearms, over one kilogram of fentanyl (including over 2,000 fentanyl pills manufactured to appear as commercial oxycodone pills), a commercial pill press, over 15 pounds of marijuana and approximately $36,000 in cash.

Brandao was an active and violent member of the NOB gang who personally committed and supported multiple violent crimes on behalf of the gang.  The Court determined that Brandao was responsible for an attempted murder and took it into consideration at sentencing.  Specifically, in November 2018, an individual was shot multiple times with a .40 caliber pistol in broad daylight near their residence in New Bedford; this individual survived their injuries. Additionally, according to court documents, Brandao actively facilitated, promoted and furthered the criminal activities committed by the NOB gang in various ways, including. by publishing recordings and videos boasting about violence he and the NOB gang committed, bragging about his personal participation in gang violence, threatening rival gangs and intimidating witnesses. 

First Assistant United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Bryan Kyes, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; New Bedford Police Chief Joseph C. Cordeiro; Quincy Police Chief Paul Keenan; Randolph Police Chief Anthony Marag; Brockton Police Chief Brenda Perez; Stoughton Police Chief Donna McNamara; Suffolk County District Attorney Kevin Hayden; Suffolk County Sheriff Steven W. Tompkins; Plymouth County Sheriff Joseph D. McDonald, Jr.; Bristol County District Attorney Thomas M. Quinn III; and Norfolk County Sheriff Patrick W. McDermott made the announcement today. Assistant U.S. Attorneys Michael Crowley and Sarah Hoefle of the Organized Crime & Gang Unit prosecuted the case. 

BOSTON – A former Stoneham Police Officer and his brother, an owner of an electrical contracting company, were charged in a superseding indictment today with an alleged bribery and kickback scheme that netted them millions of dollars in Mass Save contracts.

Joseph Ponzo, 49, of Stoneham, and Christopher Ponzo, 48, of North Reading, were originally charged by a federal grand jury in April 2022 in a 13-count indictment with one count of wire fraud conspiracy and 12 counts of wire fraud stemming from a bribery-kickback scheme with a Mass Save vendor that dated from 2013 to 2017. The superseding indictment includes 12 additional wire fraud counts alleging that the Ponzos’ bribery scheme continued after 2017 through as recently as March of 2022, with the Ponzos paying thousands of dollars in cash bribes to another former employee of a Mass Save lead vendor company to obtain millions more in lucrative Mass Save contracts.

The superseding indictment also charges Joseph Ponzo with four counts of causing false tax returns to be filed with the IRS from 2016 to 2019. Joseph Ponzo and Christopher Ponzo were also each charged with one count of making false statements to government officials. A date for the defendants’ arraignment in federal court on the new charging document has not yet been scheduled.

Massachusetts law requires utility companies to collect an energy efficiency surcharge on all Massachusetts energy consumers. These funds, which amount to hundreds of millions of dollars each year, are to be disbursed by the utility companies to fund energy efficiency programs and initiatives in Massachusetts.  

Mass Save is a Massachusetts public-private partnership sponsored by various gas and electric utility companies that disburses these energy efficiency funds through funding energy conservation projects for consumers. Under the Mass Save program, the utility companies select lead vendors. to approve and select contractors to perform energy improvement work for residential customers. This contracting work – performed by contractors at no-cost or reduced cost to the customer – is then paid for by the lead vendor with Mass Save funds.

Joseph Ponzo, a former full-time Stoneham Police Officer, and his brother, Christopher Ponzo, the owner of an electrical contracting company, allegedly conspired to pay, and did pay, tens of thousands of dollars in cash bribes, kickbacks, and other in-kind benefits, including a John Deere tractor, a computer, home bathroom fixtures, and free electrical work, among other things, to Company A employees (Associates 1 and 2) in exchange for the Associates’ assistance in getting the defendants millions of dollars in Mass Save contracts.

It is alleged that on a weekly basis, from 2013 to 2017, Christopher Ponzo paid Associate 1 $1,000 in cash. At times, Christopher Ponzo paid Associate 1 $5,000 to $10,000 in cash, telling Associate 1 that the extra money was allegedly from Joseph Ponzo for his part in the bribery scheme. In return for these payments, Associate 1, among other things, allegedly helped Joseph Ponzo set up a shell company, Air Tight, to do insulation work and get approved as a Company A contractor under the Mass Save program. It is further alleged that Joseph Ponzo put his spouse’s name on Air Tight incorporation documents and contracting licenses in order to conceal his involvement. Despite having no professional experience in residential insulation work, Joseph Ponzo collected over $7 million under the Mass Save program.    

After Associate 1 left Company A in 2017, Christopher Ponzo and Joseph Ponzo allegedly recruited Associate 2 to the bribery-kickback scheme from approximately 2018 to 2022, paying Associate 2 thousands of dollars in cash and hiring a relative of Associate 2 as part of the ongoing scheme.

During the course of the bribery-kickback scheme, it is also alleged that Ponzo aided in the filing of false tax returns from 2016 to 2019 by claiming hundreds of thousands of dollars in false business deductions. To disguise personal expenses as business deductions, Ponzo used his company credit card to make hundreds of thousands of dollars in purchases at The Home Depot, Lowes, and Staples, claiming to his tax preparers that charges at those establishments were business-related.  It is alleged that in reality, Ponzo used the company credit card at those stores to purchase gift cards that he and his spouse then used to make thousands of dollars in personal expenditures.  

The superseding indictment also alleges that in April 2022, both Joseph and Christopher Ponzo falsely denied making bribe payments to any Company A employees when interviewed by federal agents.

The charges of wire fraud conspiracy and wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of false statements provide 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. The charges of aiding in filing false tax returns each provide for a sentence of up to three years in prison, up to three years of supervised release and a fine of up to $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Rachael S. Rollins; Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation in Boston; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Elysa Wan and Dustin Chao of Rollins’ Public Corruption & Special Prosecutions Unit are prosecuting the case.

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

BOSTON – A Wakefield man was sentenced today in federal court in Boston for a mortgage fraud scheme involving at least two dozen fraudulent loan transactions and $4.3 million in losses to lenders.

Joseph Bates III, 42, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 18 months in prison and three years of supervised release. In October 2018, Bates pleaded guilty to one count of conspiracy, three counts of wire fraud affecting a financial institution, and two counts of bank fraud. Bates was also ordered to pay restitution in the amount of $2,238,354 and forfeiture of $700,000.  

Bates was originally charged in September 2018 along with co-defendants George Kritopoulos and David Plunkett. In October 2022, Kritopoulos was sentenced to four years in prison and two years of supervised release after being convicted by a federal jury of one count of conspiracy, two counts of wire fraud, six counts of bank fraud, one count of aiding the preparation of a false income tax return and one count of obstruction of justice. In February 2019, Plunkett pleaded guilty to one count of bank fraud and one count of aiding in the submission of false tax returns and is scheduled to be sentenced on Feb. 9, 2023. 

From 2006 through 2015, Bates, Kritopoulos and others engaged in a scheme to defraud banks and other financial institutions by causing false information to be submitted to those institutions on behalf of borrowers – people recruited to purchase properties – located primarily in Salem, Mass. The properties were usually multi-family buildings with two-to-four units, which the co-conspirators then converted into condominiums. Kritopoulos recruited new borrowers to purchase the individual condominium units. Together, Kritopoulos and Bates created and provided false documents to defraud lenders for financing the purchases. Kritopoulos also recruited Plunkett to prepare false tax returns in support of the fraud scheme.

The false information submitted to lenders included, among other things, representations concerning the borrowers’ employment, income, assets and intent to occupy the property. Specifically, the false employment information included representations that borrowers were employed by entities that were, in fact, shell companies “owned” by Kritopoulos and were used to advance the fraudulent scheme. The employment information also included false representations about the income that the borrowers received from the entities, when the borrowers actually received little or no income from them. Furthermore, the income asserted on the borrowers’ loan applications substantially overstated their true income. The false information also included representations that the recruited borrowers intended to live in the properties that they were purchasing, when they did not intend to do so. Plunkett assisted the scheme by preparing tax returns for some of the borrowers that contained false and inflated income. Some of those tax returns were submitted to lenders in support of the fraudulent loan applications.  

Because the borrowers did not have the financial ability to repay the loans, in all but two instances among 21 properties, they defaulted on their loan payments, resulting in foreclosures and losses to the lenders.

United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Division, Boston Office; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeastern Regional Office made the announcement today. Valuable assistance was provided by the Salem Police Department. Assistant U.S. Attorneys Victor A. Wild, of Rollins’ Securities, Financial & Cyber Fraud Unit, and Brian M. LaMacchia, of Rollins’ Affirmative Civil Enforcement Unit prosecuted the case. Assistant U.S. Attorney Carol Head, Chief of Rollins’ Asset Recovery Unit, is handling the forfeiture and restitution aspects of the case.

BOSTON – A Lawrence woman was sentenced yesterday in federal court in Boston in connection with fraudulently using someone else’s Social Security number. 

Mariana Rosmely Aguasviva, 40, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to three years of supervised release with the first 18 months to include home confinement. In September 2022, Aguasviva pleaded guilty to one count of false representation of a Social Security number.

Aguasviva fraudulently used a Social Security number that was assigned to someone else in an application at the Massachusetts Registry of Motor Vehicles in Boston in 2016. Specifically, Aguasviva filled out an application to change information on her driver’s license, which was in the name of the person whose Social Security number was misappropriated. Aguasviva began misusing the victim’s Social Security number to assume the victim’s identity in 2010, when she first obtained a Massachusetts driver’s license in the victim’s name from the RMV. Investigators discovered the driver’s license in the victim’s name in Aguasviva’s purse at the time of her arrest.

United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division made the announcement. Valuable assistance was provided by the Massachusetts State Police; U.S. Department of State, Diplomatic Security Service; U.S. Department of Health and Human Services, Office of Inspector General; Billerica Police Department; and the Lawrence Police Department. Assistant U.S. Attorney Fred M. Wyshak, III of Rollins’ Criminal Division prosecuted the case. 

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

BOSTON – A Guatemalan man residing in Framingham pleaded guilty yesterday in federal court in Boston to illegally reentering the United States after deportation.

Carmen Jimenez-Cruz, 42, pleaded guilty to illegal reentry before U.S. District Court Judge Angel Kelley, who scheduled sentencing for May 11, 2023. Jimenez-Cruz was indicted by a federal grand jury in September 2022.

In May 2013, Jimenez-Cruz was encountered by federal immigration authorities after he illegally crossed the Mexican border into Texas without being admitted by an immigration officer. He was removed from the United States in June 2013. Sometime after his removal, Jimenez-Cruz illegally reentered the United States and one month later, in July 2013, Jimenez-Cruz was again encountered by federal immigration authorities in Texas after having entered the United States without inspection. He was removed from the United States for the second time shortly thereafter in July 2013. 

On an unknown date and place, Jimenez-Cruz illegally reentered the United States again. In April 2019, federal immigration authorities located Jimenez-Cruz at the Middlesex County House of Correction where he was being held pretrial on unrelated state charges. According to court records, in May 2022, Jimenez-Cruz was convicted of strangulation/suffocation and assault and battery on a family/household member and was sentenced to an 11-month split sentence followed by probation until May 2023. Upon completion of his sentence, Jimenez-Cruz was released from state prison without notification to federal immigration authorities. 

Jimenez-Cruz was later located in September 2022 upon him being identified as a passenger during a motor vehicle stop in Framingham. Jimenez-Cruz was taken into custody. Fingerprints obtained from Jimenez-Cruz during his booking process were confirmed as an identical match to a prior removal verification document. 
  
The charge provides for a maximum sentence of two years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Rachael S. Rollins; Todd Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and Framingham Police Chief Lester Baker made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit is prosecuting the case. 

BOSTON – A Brockton man has been indicted by a federal grand jury in Boston for allegedly coercing three minors to produce child sexual abuse material (CSAM). 

Zaire Aquil Lodge, 45, was indicted on three counts of sexual exploitation of children and one count of receipt of child pornography. Zaire was arrested on Jan. 23, 2023 and appeared in federal court in Boston today for a detention hearing before U.S. District Court Magistrate Judge Judith G. Dein, who has taken the matter under advisement. Lodge was remanded to federal custody until further notice.

According to the indictment, on various dates in 2021, Lodge employed, used, persuaded, induced and coerced three minors to engage in sexually explicit conduct for the purpose of producing CSAM. It is also alleged that Lodge knowingly received and attempted to receive CSAM between February and October 2021. 

The charges of sexual exploitation of children provide 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. The charge of receipt of child pornography provides for a sentence of at least five years and up to 20 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.

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

United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England and Brockton Police Chief Brenda Perez made the announcement today. Assistant U.S. Attorney David G. Tobin of Rollins’ Major Crimes Unit is prosecuting the case.

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

The details contained in the indictment 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 today to embezzling over $1.2 million from his employer and fraudulently obtaining government benefits in his employer’s name. 

Jack Massarsky, 65, pleaded guilty to one count of mail fraud and one count of wire fraud before U.S. District Court Chief Judge F. Dennis Saylor IV, who scheduled sentencing for May 15, 2023. Massarsky was charged on Dec. 13, 2022. 

Between 2015 and 2021, Massarsky worked as a dentist and bookkeeper for a general dentistry practice located in Hyannis. In 2015, Massarsky opened a secret bank account in the name of the dentistry practice. Massarsky then intercepted insurance reimbursement checks sent to the dentistry practice in the mail and deposited those checks in the secret bank account. Massarsky continued this practice for over five years and embezzled over $1.2 million. Massarsky used the stolen funds for personal and family expenses.

Additionally, Massarsky used the dentistry practice’s name to defraud the United States. In July 2020, Massarsky submitted a fraudulent application to the Health Resources and Services Administration Provider Relief Fund (HRSA PRF) in the name of the dentistry practice. The HRSA is an agency of the United States Department of Health and Human Services that provides health care to people who are geographically isolated or otherwise vulnerable. During the COVID-19 pandemic, the HRSA PRF provided economic assistance to qualifying healthcare providers, including certain dentistry practices. By submitting the fraudulent application to the HRSA PRF, Massarsky obtained over $52,000 in pandemic relief funds that were deposited in the secret bank account Massarsky had opened in the name of his employer.

The charges of mail fraud and wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, restitution and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance in the investigation was provided by the United States Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorney Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.

BOSTON – A Taunton man pleaded guilty today in federal court in Boston to sexual exploitation of children and distribution of child sexual abuse material (CSAM).

Cody Mercure, 25, pleaded guilty to one count of sexual exploitation of children and one count of distribution of child pornography. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for April 25, 2023. Mercure was indicted by a federal grand jury in September 2021. 

On Feb. 19, 2021, Mercure sexually abused a toddler in his care and video-recorded the abuse.  Mercure also distributed numerous files of CSAM over the internet using a messaging application. For example, on Jan. 16, 2021, Mercure distributed CSAM depicting the sexual abuse of a prepubescent child to another user of the messaging application. Over 100 images and videos depicting child pornography were stored on one of the phones seized at the time of Mercure’s arrest.

The charge of sexual exploitation of children provides 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. The charge of distribution of child pornography provides for a sentence of at least five years and up to 20 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.

United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was also provided by the Rhode Island State Police and the Taunton Police Department. Assistant U.S. Attorney Elianna J. Nuzum of Rollins’ 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 Lowell man was sentenced on Jan. 20, 2023 in federal court in Boston for his role in a conspiracy to distribute fentanyl.

Jonathan Bermudez, 25, was sentenced by U.S. District Court Judge Leo T. Sorokin to time served (approximately 22 months in prison) and eight years of supervised release. In September 2020, Bermudez pleaded guilty to conspiracy to distribute and to possess with intent to distribute fentanyl and distribution and possession with intent to distribute 40 grams or more of fentanyl. 

During the course of several months, using an undercover police officer, an investigation uncovered Bermudez’s fentanyl distribution operation. Although Bermudez was arrested on April 2, 2019, he connected the undercover police officer with his co-defendant so they could continue the fentanyl distribution operation.

United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Valuable assistance was provided by Homeland Security Investigations in New England; Massachusetts State Police; and the Andover, North Andover, Billerica, Chelmsford, Lowell and Lawrence Police Departments. Assistant U.S. Attorney Philip C. Cheng of Rollins’ 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

BOSTON – Four individuals have been indicted by a federal grand jury in Boston in connection with a conspiracy to distribute controlled substances and launder the proceeds in Massachusetts and Virginia.

Sathtra Em, 35, of Lowell; Kenneth Owen, a/k/a “Apple,” a/k/a “Carlos,” 22, of Charlotte Court House, Va.; and Michael Mao, a/k/a “Whitebodian,” a/k/a “Spook,” a/k/a “Leno,” 36, an inmate at the Buckingham Correctional Center in Dillwyn, Va., were indicted on charges of money laundering conspiracy and conspiracy to distribute and to possess with intent to distribute MDMA and Buprenorphine. Em was also indicted in a separate money laundering conspiracy with Sarath Yut, a/k/a “Black,” a/k/a “Khmao,” a/k/a “Asian Warrior,” 36, of Lowell. 

Em and Owen were arrested on Jan. 19, 2023 and were released on conditions following initial appearances in federal court in Boston and the Western District of Virginia, respectively. Mao is currently serving a prison sentence in Virginia for several state convictions for violent offenses, including attempted murder. Yut was previously charged in June 2021 for his alleged role leading a long-running and lucrative drug trafficking enterprise involving numerous gang members and associates of the Lowell-based criminal street gang, One Family Clique. Yut has remained in federal custody and is pending trial in that case.    

According to the indictment, from approximately December 2019 through May 2021, Mao, Em and Owen conspired to distribute and possess with intent to distribute MDMA and Buprenorphine in Lowell, the Western District of Virginia and elsewhere. It is alleged that Mao, Em and Owen also conspired to launder the drug proceeds to conceal their drug distribution activity. It is further alleged that Em also conspired to launder drug proceeds with Yut via cash deposits into bank accounts with Jeanne D’Arc Credit Union as well as via mortgage payments for a residence in Lowell.

The charge of conspiracy to distribute and to possess with intent to distribute MDMA and Buprenorphine provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000, or twice the amount of the property involved, whichever is greater. Both charges also include forfeiture of assets traceable to or involved in the distribution and laundering offenses. 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.

United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. The investigation was led by the FBI’s Merrimack Valley Transnational Organized Crime Task Force. Special assistance was provided by the Virginia Department of Corrections.  Assistant U.S. Attorney Fred M. Wyshak, III of Rollins’ Organized Crime & Gang Unit is prosecuting the case. Assistant U.S. Attorney Alexandra Amrhein of Rollins’ Asset Recovery Unit is handling the forfeiture aspects of the case.

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

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

BOSTON – A Brockton man was sentenced today in federal court in Boston for assaulting, resisting or impeding an officer while fleeing a motor vehicle stop.

Tykeam Jackson, 27, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 77 months in prison and three years of supervised release. In April 2022, Jackson pleaded guilty to one count of assaulting, resisting or impeding certain officers. 

On July 27, 2020, a deputized federal law enforcement officer stopped Jackson in Avon, Mass. for speeding and instructed him to exit his vehicle. Instead, Jackson accelerated the vehicle with such force that the officer was dragged for several feet and thrown to the ground. Jackson then sped away, drove in and out of a public parking lot where he swerved around pedestrians and other vehicles, ignored traffic signals and drove into oncoming traffic, eventually travelling at a speed of approximately 100 miles per hour in the breakdown lane of Route 24. After attempting to cross all three travel lanes, Jackson lost control of the vehicle and crashed head-on into the guardrail. He exited the vehicle, ran across Route 24 and was subsequently found running into and obstructing traffic on a nearby roadway.

At the time of the offense, Jackson was on state probation resulting from an armed robbery conviction in Suffolk County Superior Court. 

United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Norfolk County District Attorney Michael W. Morrissey made the announcement. Assistant U.S. Attorney Sarah B. Hoefle of Rollins’ 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 Boston man pleaded guilty today to concealing business income and filing multiple false tax returns. 

Albert Casiello, 56, pleaded guilty to three counts of filing false tax returns before U.S. District Court Judge Rya W. Zobel who scheduled sentencing for April 12, 2023. Casiello was charged on Jan. 11, 2023. 

Between 2013 and 2015, Casiello was the president, sole shareholder and primary operator of Cassco Development Group, Inc., a Massachusetts construction business. For each of the tax years 2013, 2014 and 2015, Casiello concealed his business income by depositing customer payments in bank accounts held in the names of other entities. Casiello then filed false tax returns for the years 2013, 2014 and 2015, resulting in a tax loss of $315,856.

The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release, a fine of up to $100,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.

BOSTON – Three men from the Washington, D.C., area have been indicted by a federal grand jury in Boston for stealing thousands of items from a high-end outlet store in Wrentham, Mass.

Linworth Hayes Crawford III, 28; Ronald Patterson, 32; and Nathaniel Owens, 32, were indicted on conspiracy and transporting more than $5,000 in stolen goods. They will appear in federal court in Boston at a later date. The defendants were previously charged by criminal complaint in December 2021. 

On the evening of Sept. 16, 2021, Crawford III, Patterson and Owens allegedly traveled from the Washington D.C. area to the Wrentham Village Premium Outlets in Massachusetts. It is alleged that, in the early morning hours of Sept. 17, 2021, the defendants and another unidentified individual smashed the front door of the Gucci outlet store, went inside and took approximately $32,000 in high-end merchandise. The defendants then left the store and drove back to the Washington D.C. area. 

According to court documents, phone records show the defendants travelling from the Washington D.C. area through Connecticut to Wrentham prior to the burglary and that they were identified on video surveillance seeking a replacement tire at a Town Fair Tire in Connecticut in the early morning hours of Sept. 16, 2021. Later that day, it is alleged that the defendants were identified on video surveillance at the Wrentham Outlets prior to the burglary in the same vehicle and in the same clothing as seen in the Town Fair Tire surveillance footage. According to court documents, police reports indicate that the vehicle was involved in a number of shopliftings in Virginia. 

Additionally, on Sept. 17, 2021, Patterson allegedly posted on his Instagram account that he had Gucci bags available for sale. Images of the bags appeared to be identical to the Gucci bags stolen during the burglary earlier that day. 

The charge of conspiracy provides for a sentence of up to five years in prison, at least three years of supervised release and a fine of up to $250,000. The charge of transporting more than $5,000 in stolen goods across state lines 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.

United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and the Wrentham Police Chief William R. McGrath made the announcement today. Assistant U.S. Attorney Evan Gotlob of Rollins’ Major Crimes Unit Unit is prosecuting the case.

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

BOSTON – A previously convicted felon residing in Newton has been charged with cocaine distribution and firearm offenses.

Shawn Craig, 37, of Newton, was charged with one count of possession with intent to distribute and distribution of cocaine and one count of possession of a firearm and ammunition as a convicted felon. He will appear in federal court in Boston on Jan. 23, 2023. 

According to the charging documents, Craig coordinated three drug deals with an undercover agent between September and October 2022. It is alleged that Craig met with the undercover agent near his Newton residence on three separate occasions – Sept. 12, Oct. 20 and Oct. 26, 2022 – to conduct the deals, during which Craig provided cocaine to the undercover agent in exchange for cash. Prior to the third meeting, on Oct. 26, 2022, Craig allegedly sent an image of a firearm to the undercover agent and indicated that he could sell it to the agent. During the subsequent meeting, it is alleged that Craig provided the undercover agent with a firearm, ammunition and a quantity of cocaine.

At the time of the alleged conduct, Craig was on federal supervised release for a 2014 federal conviction for possessing a stolen firearm and possessing a firearm with an obliterated serial number. Craig was sentenced to seven years in prison and three years of supervised release in that case. 

United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Middlesex District Attorney Marian Ryan; and Newton Police Chief John F Carmichael Jr. made the announcement today. Valuable assistance was provided by the U.S. Probation Office. Assistant U.S. Attorney Kaitlin R. O’Donnell of Rollins’ 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 leader of a Boston-area drug trafficking organization (DTO) was sentenced yesterday for his role in a cocaine trafficking conspiracy.
 
Matthew Drayton, 45, of Boston, was sentenced by U.S. District Court Judge Denise J. Casper to 50 months in prison and three years of supervised release. In August 2022, Drayton pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine.  

Drayton was charged with 23 others in June 2020 as part of Operation Snowfall, which  resulted in the charging of two different drug trafficking conspiracies during the overall period of November 2018 through June 2020. 

According to the charging documents, beginning in November 2018, law enforcement investigated a DTO for which Drayton was both a leader and a drug distributor. The DTO was comprised of Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the DTO assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs – most of which was cocaine or cocaine base, which the DTO supplied to customers, wholesalers and distributors. As a result, the DTO caused a blight of the development and reduced the quality of life for other residents.  As the investigation continued, law enforcement ultimately identified another DTO operating within the Boston area and targeted its large-scale drug suppliers and their associates.

Drayton was the leader of the Fidelis-Way related DTO whose members were allegedly responsible for the packaging, selling, storing and distribution of drugs to, or collection of proceeds from, drug customers, drug runners or other drug distributors and suppliers. It is estimated that Drayton distributed between 280 and 840 grams of cocaine base during the course of his participation in the Fidelis Way DTO which, when all drugs were calculated as powder, amounted to over 500 grams of cocaine. Drayton also participated in a number of controlled buys involving cocaine base during the investigation.

Drayton is the seventh defendant to be sentenced in the Fidelis-Way related drug conspiracy. 
 
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Bryan Kyes, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Commissioner Michael Cox made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit prosecuted the case.

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

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 – Johnson & Johnson, DePuy Synthes, Inc. and DePuy Synthes Sales, Inc. (collectively, DePuy) have agreed to pay approximately $9.75 million to resolve allegations that DePuy violated the Anti-Kickback Statute and the False Claims Act by providing free products to a Massachusetts-based surgeon (Surgeon) to induce the Surgeon to use DePuy products in his procedures.

DePuy manufactures and distributes medical devices, including spinal implants, and is headquartered in Raynham, Mass.

According to the settlement agreement, DePuy admits, acknowledges and accepts its responsibility for the facts underlying the government’s allegations. From at least July 2013 through February 2018, DePuy gave the Surgeon DePuy products, including implants and instruments, such as cages, rods, screws, plates and modular access and retraction systems. The Surgeon performed more than 20 surgeries over the course of multiple trips to six countries, specifically, Bahrain, Kingdom of Saudi Arabia, Kuwait, Lebanon, the United Arab Emirates and Qatar. In many of these surgeries, the Surgeon used DePuy products, worth thousands of dollars, that DePuy sales representatives had provided to him. The DePuy products that DePuy gave to the Surgeon were sometimes not available at the hospitals and/or with the third-party sales distributors in the countries where the Surgeon operated overseas. DePuy did not request or receive payment from the Surgeon, the hospitals, or the third-party sales distributors in the countries where the Surgeon operated overseas; nor did the Surgeon, the overseas hospitals, the third-party sales distributors, or anyone else, pay DePuy for the products that it gave to the Surgeon and the Surgeon used abroad.

The Anti-Kickback Statute (AKS) prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. The United States contends that DePuy knowingly and willfully provided free DePuy products, worth over $100,000, to the Surgeon for his overseas surgeries, to induce him to use DePuy’s products in spine surgeries he performed on Medicare and Medicaid patients in Massachusetts in violation of the AKS. 

“Today the United States resolves allegations that DePuy provided over $100,000 worth of free product to a surgeon in order to secure and reward that physician’s continued business,” said United States Attorney Rachael S. Rollins. “Unlawful kickbacks can severely distort medical judgment as well as the market for medical devices. The millions of patients that depend on our health care system deserve untainted medical decisions. This settlement reflects our commitment to stamping out illegal kickbacks.”

“Medical device manufacturers are prohibited from providing free items to induce a physician to use their devices,” said Principal Deputy Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “When medical devices are used in surgical procedures, patients deserve to know that their device was selected based on quality of care considerations and not on improper benefits from manufacturers.”

“The American people, as both taxpayers and consumers, expect medical device manufacturers like DePuy to abide by relevant laws and regulations. When such health care companies provide illegal kickbacks in order to boost profits, their actions erode public confidence in the health care system, can compromise the patient-physician relationship, and waste government health program funding,” said Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “In close cooperation with our law enforcement partners, we will continue to thoroughly investigate allegations of fraud to protect both federal health care programs and those served by them.”

“Today’s settlement makes it crystal clear that it is illegal for medical device companies to provide physicians with free medical products to win business and boost their bottom line through illegal kickback schemes,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division. “Every year, health care fraud costs taxpayers billions of dollars. It is not a victimless crime and this unscrupulous scheme orchestrated by DePuy is just one example of how the FBI and our partners are working hard every day to protect both patients and taxpayers.”

The allegations resolved by the settlement agreement were originally brought in a case filed under the whistleblower, or qui tam, provisions of the False Claims Act. The case is captioned United States et al. ex rel. John Doe v. Johnson & Johnson, et al., (D. Mass. 2017). The whistleblower will receive approximately $1,852,500 from the recovery. 

U.S. Attorney Rollins, HHS-OIG SAC Coyne and FBI SAC Bonavolonta made the announcement today. The VA OIG and FDA-OCI also provided assistance. Assistant U.S. Attorneys Jessica J. Weber, Andrew A. Caffrey, III and Abraham R. George of Rollins’s Affirmative Civil Enforcement Unit, and Senior Trial Counsel Benjamin C. Wei of the Department of Justice’s Civil Division handled this matter. The Commonwealth of Massachusetts was represented by Assistant Attorney General Kevin Lownds.

BOSTON – A Brockton man was sentenced today in federal court in Boston for possessing a firearm and ammunition as a convicted felon. 

Nicholas Mendes, 40, was sentenced by U.S. District Judge Patti B. Saris to 80 months in prison and three years of supervised release. On March 22, 2022, Mendes pleaded guilty to one count of being a felon in possession of a firearm and ammunition.

On the evening of May 21, 2020, local police responded to a report of possible gunshots in Brockton. At the scene, officers found a parked vehicle with three occupants inside, one of whom was Mendes sitting in the driver’s seat, and the passenger door open. A subsequent search of the vehicle revealed a FN Model 509, 9mm semi-automatic pistol with a partially obliterated serial number tucked directly under the driver seat where Mendes was sitting. The semi-automatic firearm was loaded with six rounds of 9mm ammunition – including one round in the chamber. At the time, Mendes was on state probation with electronic monitoring.

Mendes is prohibited from possessing a firearm and ammunition due to prior convictions that include intimidation, possession of a firearm, carrying a firearm without a license, narcotics offenses and assault and battery.

United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brockton Police Chief Brenda Perez; and Plymouth County District Attorney Timothy J. Cruz made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crime Unit prosecuted the case. 

This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. 

BOSTON – Three individuals, including a Federal Firearms Licensee, have been charged in connection with a scheme to illegally straw purchase firearms.

Cory Daigle, 29, of Revere; Gustavo Rodriguez, 20 of Boston; and Shakim Grant, 21, of Boston, were each charged with conspiracy to make false statements with respect to the acquisition of a firearm. Daigle was also charged with possession of a machinegun and Grant was charged with making false statements with respect to the acquisition of a firearm. Daigle and Rodriguez were arrested yesterday morning and, following an appearance in federal court in Boston, were detained pending a detention hearing scheduled for 3 p.m. today. Grant remains at large. 

According to the charging documents, the investigation arose following a November 2022 shooting in the Hyde Park neighborhood of Boston. It is alleged that during a search of Rodriguez’s residence in Hyde Park the following day, several firearms, assorted ammunition and firearm components and/or accessories were seized. While the search was underway, Grant allegedly arrived at the scene and advised law enforcement that the firearms seized belonged to him, not Rodriguez, and that he had been storing his firearms inside the residence. 

Subsequent interviews, cellphone forensics, financial records and firearm records allegedly revealed that Grant obtained three Glock firearms and ammunition for Rodriguez, who does not have a license to legally possess or carry firearms and is precluded from having firearms in Massachusetts based on his age. It is alleged that the Glock firearms were purchased from Daigle – a Federal Firearms Licensee and the proprietor of Steelworks Defense Solutions in Littleton. Grant and Rodriguez allegedly communicated via Snapchat approximately two hours prior to the search of Rodriguez’s residence, during which the two conspired to coordinate a story to provide law enforcement as to why firearms would be found at Rodriguez’s residence.

According to court documents, during a search of Daigle’s residence, a machine gun barrel and receiver; machine gun bolt with no serial number; two short-barrel rifles, one with a machine gun conversion device; machine gun conversion device with no serial number; and a semi-automatic rifle were seized. 

“The majority of gun violence, including shootings and murders, is committed with an illegal (e.g., unregistered, stolen, etc.) firearm. Usually, by a prohibited individual (e.g., unlicensed, underage, precluded due to criminal history, etc.). Straw purchases are serious crimes that result in deadly firearms getting into the hands of people the law strictly prohibits from having them. We need to prosecute straw purchasers with the same zeal we often have for end users.  If the straw purchase never happened, that firearm never makes it into the hands of a prohibited person seeking to use it unlawfully,” said United States Attorney Rachael S. Rollins.  “We allege that these defendants engaged in a straw purchasing conspiracy and made false statements in forms required by federal firearms laws in an attempt to cover their tracks. That one of these defendants holds an FFL and has been authorized to sell firearms should be an eye opener to many. People who circumvent regulations and requirements regarding firearms in our Commonwealth can and will face administrative, civil, or criminal consequences by state, local or federal prosecutors.”

“When you buy a gun for someone who is legally prohibited from possessing a firearm, you could be buying yourself time in federal prison,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, & Explosives, Boston Field Division. “The surge of gun violence in our cities is being fueled by individuals who circumvent the law and put firearms in the wrong hands. Our mission is clear and we will continue working with our partners to stop the flow of illegal firearm transfers that fuel the cycles of violence.”

“Boston and every other major city across the country is dealing with the unprecedented proliferation of guns. It is this type of partnership that makes it possible for us to have a substantive impact by bringing local, state and federal powers to bear on those who are allegedly helping to put guns on our streets. This is good police work by our Boston Police officers and the troopers and agents involved. It’s a true partnership with our state and federal counterparts and we look forward to working with U.S. Attorney Rollins as her office guides this case through the criminal justice system,” said Boston Police Commissioner Michael Cox.

The charges of possession of machineguns provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to a $250,000. The charge of false statements with respect to the acquisition of a firearm provides for a sentence of up to five years in prison, one year of supervised release and a fine of up to a $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.

U.S. Attorney Rollins, ATF Boston SAC Ferguson and Commissioner Cox made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of Rollins’ Major Crimes Unit is prosecuting the case.

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

BOSTON – A Swansea man was sentenced today in federal court in Boston for possessing child sexual abuse material (CSAM). 

Todd Miozza, 52, was sentenced by U.S. Senior District Judge William G. Young to 10 years in prison and five years of supervised release. In September 2022, Miozza pleaded guilty to one count of possession of child pornography. 

Miozza obtained and traded CSAM over the internet via a messaging platform. During a search of Miozza’ s residence in June 2022, his iPhone and laptop were seized and found to contain child sexual abuse material. In total, 411 videos and 331 images constituting CSAM were found across Miozza’s devices and electronic storage media, depicting children ranging from infants to approximately 12 years old.  

Miozza was previously convicted of possession of child pornography in the District of Massachusetts in 2002. 

United States Attorney Rachael S. Rollins and Matthew Millhollin, Special Agent in Charge for Homeland Security Investigations in New England made the announcement. The Swansea Police Department provided valuable assistance to the investigation. Assistant U.S. Attorney Elianna J. Nuzum of Rollins’ Major Crimes Unit prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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 Quincy man was sentenced yesterday in federal court in Boston for receiving and possessing child sexual abuse material (CSAM).  

Andre Tilahun, 29, was sentenced by U.S. District Court Judge Patti B. Saris to six years in prison and five years of supervised release. In October 2022, Tilahun pleaded guilty to one count of receipt and one count of possession of child pornography. 

Following a search of Tilahun’s residence in April 2021, approximately 350 images of CSAM were found on the Tilahun’s computer and approximately 230 images of CSAM on his phone. The investigation determined that Tilahun used the Kik Messenger platform to receive and engage in communications about CSAM with others. In all, Tilahun participated in six Kik chatrooms where participants shared CSAM.   

United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England made the announcement. Valuable assistance was provided by the Quincy Police Department and Weymouth Police Department. Assistant U.S. Attorney Benjamin A. Saltzman of Rollins’ Criminal Division prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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 Quincy man was sentenced today for fraudulently receiving Social Security disability benefits.    

Charles Reid, 68, was sentenced by U.S. Senior District Court Judge William G. Young to time served (approximately one day in prison) and three years of supervised release. Reid was also ordered to pay restitution in the amount of $38,601 to the Social Security Administration. Earlier in the hearing, Reid pleaded guilty to one count of theft of government money. Reid was indicted by a federal grand jury in October 2021. 

From approximately April 2013 through September 2017, Reid stole approximately $38,601 in Social Security disability benefits. 

United States Attorney Rachael S. Rollins and Sharon MacDermott, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today.  Assistant U.S. Attorney Benjamin A. Tolkoff and Special Assistant U.S. Attorney James J. Nagelberg of Rollins’ Major Crimes Unit prosecuted the case.

BOSTON – A Quincy man was sentenced yesterday in federal court in Boston for counterfeiting hundreds of thousands of dollars in U.S. currency.

Victor Cardona, 34, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 41 months in prison, two years of supervised release and a fine of $5,000. In October 2022, Cardona pleaded guilty to one count of counterfeiting U.S. currency, specifically, forged older-style $100 bills.

During a search of Cardona’s residence in October 2019, a counterfeit currency manufacturing facility was discovered, including equipment and materials used to create counterfeit bills, specifically, inkjet printers, a paper shredder containing counterfeit bills that had been discarded, a “counterfeit buster” detection pen and counterfeit bills, including one fake $100 bill in Cardona’s wallet. Several authentic $100 bills with serial numbers which were tied to counterfeit currency recovered from across the country were also found. Burned remains of counterfeit currency were also located in Cardona’s backyard.

According to court documents, Cardona admitted that he procured the materials to create the counterfeit currency and hosted one or more other individuals at his home on a weekly basis for the purpose of creating the fake bills. In total, Cardona produced, or participated in the production of, over 4,000 fake $100 bills that were identified as counterfeit and traced by serial number to the authentic bills found at Cardona’s residence. To date, the government has recovered over $467,000 in counterfeit $100 bills traced back to the authentic bills found at Cardona’s residence.

United States Attorney Rachael S. Rollins and Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement. Many local police departments, including the Quincy Police Department and Salem Police Department, provided valuable assistance with the investigation. Assistant U.S. Attorney Adam W. Deitch of Rollins’ Public Corruption & Special Prosecutions Unit prosecuted the case.