District of Massachusetts

BOSTON – A Boston man pleaded guilty on Tuesday, May 18, 2021 in federal court in Boston in connection with his illegal possession of ammunition.

Syrus Hampton, 30, pleaded guilty to one count of being a felon in possession of ammunition. U.S. District Court Judge Indira Talwani scheduled sentencing for May 18, 2022. Hampton was charged federally in May 2019.

On Jan. 25, 2019, Hampton was arrested after police officers recovered a 9mm semiautomatic pistol with no serial number, which contained 21 rounds of 9mm caliber ammunition, after Hampton fled from a traffic stop.

Hampton was prohibited from possessing ammunition due to a prior felony conviction punishable by more than one year in prison.

The charge of being a felon in possession of ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Hampton is enrolled in the Court-run RISE (Repair, Invest, Succeed, Emerge) program, designed to aid in the rehabilitation of applicable defendants who have pleaded guilty and are under pretrial supervision prior to sentencing. Their sentence is dependent upon their completion of the program and is determined at a later time. 

Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement today.

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. PSN is 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 – Two New Bedford men were indicted by a federal grand jury last week on fentanyl and firearm offenses. 

David Acosta, 25, and Marquise Thompson, 34, were indicted on one count each of possession with intent to distribute 40 grams or more of fentanyl. Acosta was also charged with one count of carrying a firearm during and in relation to, and possession of a firearm in furtherance of, a drug trafficking crime. Following an initial appearance on Friday, May 14, 2021, Acosta and Thompson were detained pending a detention hearing scheduled for May 19, 2021.

According to the indictment, on Oct. 22, 2020, Acosta and Thompson possessed more than 40 grams of fentanyl, intending to sell those narcotics. Additionally, Acosta was allegedly in possession of a loaded Glock .45 caliber pistol during and in relation to his fentanyl possession.

The charge of possession with intent to distribute more than 40 grams of fentanyl provides for a mandatory minimum sentence of five years and up to 40 years in prison, up to a lifetime of supervised release and a fine of up to $4 million. The charge of possession of a firearm in relation to or in furtherance of drug trafficking provides for a mandatory minimum sentence five years and up to life in prison, five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Evan Gotlob of Mendell’s Major Crimes Unit is prosecuting the case. 

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

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

BOSTON – A New Bedford man was indicted last week by a federal grand jury on charges of illegally possessing a firearm and selling cocaine.   

Khyron Thompson, 32, was indicted on one count of being a felon in possession of firearm and ammunition and one count of distribution of and possession with intent to distribute cocaine.

According to the indictment, on Feb. 13, 2020, Thompson allegedly possessed a loaded .32 caliber Hi-Point pistol firearm. It is further alleged that Thompson sold a quantity of cocaine on that same date. Federal law prohibits Thompson from possessing a firearm or ammunition due to a prior felony conviction.

The charge of being a felon in possession of 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 distribution of and possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, up to a lifetime of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Evan Gotlob of Mendell’s Major Crimes Unit is prosecuting the case. 

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

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 Georgia man was sentenced on May 13, 2021 in federal court in Boston for illegal possession of a semi-automatic pistol.

Herbert Palmer, 39, of Decatur, Ga., was sentenced by U.S. District Court Judge Denise J. Casper to 32 months in prison and three years of supervised release. On Jan. 15, 2021, Palmer pleaded guilty to one count of being a felon in possession of a firearm and ammunition.

On Aug. 12, 2020, police were dispatched to an apartment in New Bedford following a report of a disturbance where a man had a gun and was pointing it to a woman’s head. After police arrived, the man, later identified as Palmer, exited the apartment and told police that he had a knife on his person. A search of Palmer revealed he had a folding knife and firearm magazine loaded with four rounds of .380 caliber ammunition, which Palmer claimed to be carrying because it did not fit his BB gun, although he denied having a gun.

A witness informed police that Palmer had pointed a small black gun at individuals while inside the apartment that evening and that when Palmer manipulated the firearm, the magazine dropped out of the firearm and fell to the floor. Palmer picked up the magazine and then proceeded to the second floor to change his clothing.

Police searched the apartment and located a Lorcin, Model 380. .380 caliber semi-automatic pistol in a second floor bedroom. Authorities confirmed the ammunition recovered from Palmer’s person was the same caliber as the firearm.

Palmer was convicted in 2010 of assault and battery with a dangerous weapon and is therefore prohibited from possessing firearms and ammunition.

Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Mendell’s Major Crimes 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 – A Florida man pleaded guilty last week in federal court in Springfield to tax offenses. 

Cory Kizer, 39, pleaded guilty to one count of conspiracy to commit wire fraud and eight counts of theft of public money. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Oct. 6, 2021. 

Kizer admitted to obtaining personal identifying information for the purpose of filing false federal tax returns and obtaining unwarranted tax refunds. The tax returns contained false addresses, wages and salaries, employers, dependents, business and loss information. The false returns generated a total of over $550,000 of unwarranted tax refunds.

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. The charge of theft of public money 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 other statutory factors.

Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorneys Alex J. Grant and Catherine Curley of Mendell’s Springfield Branch Office are prosecuting the case. 

BOSTON – A Dominican national, formerly residing in Lynn, was sentenced today in federal court in Boston for theft of government money and making a false statement on an application for Social Security benefits.

Rafael Bautista Abreu, 63, was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to 18 months in prison and two years of supervised release. Bautista Abreu was also ordered to pay restitution of $15,840 to MassHealth and of $12,222 to the Massachusetts Department of Transitional Assistance. Bautista Abreu will face deportation proceedings upon completion of his sentence.

In February 2021, Bautista Abreu pleaded guilty to two counts of theft of government money and one count of making a false statement on an application for Social Security benefits.

Bautista Abreu unlawfully used the identity of a U.S. citizen for at least 12 years, during which time he fraudulently received public assistance benefits to which he was not entitled. He stole approximately $15,840 in MassHealth benefits from October 2008 to July 2016, and $12,222 in Supplemental Nutrition Assistance Program (SNAP) benefits (previously known as Food Stamps) from September 2009 to July 2016. Additionally, in July 2019, Bautista Abreu used the stolen identity when he applied for benefits with the Social Security Administration. 

Acting United States Attorney Nathaniel R. Mendell; Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit prosecuted the case.

BOSTON – A Worcester man was arrested on Thursday, May 13, 2021 in connection with fraudulently depositing a United States Treasury check of more than $1 million dollars.

Leonardo Nascimento, 34, was charged with bank fraud and aggravated identity theft. Nascimento will make an initial appearance in federal court in Boston at a later date.

According to charging documents, on Oct. 30, 2020, Nascimento visited a branch of Santander Bank, opened a business bank account and then deposited a United States Treasury check in the amount of $1,064,613 in someone else’s name into the account. Nascimento allegedly provided Santander with a form claiming the payee gave Nascimento permission to cash a check in his name. That form also contained the payee’s purported signature. Investigators then spoke with the payee who confirmed that the Treasury Check was his 2019 personal tax return refund. It is alleged that Nascimento did not know the payee and that the signature on the check was not the payee’s actual signature.

The charge of bank fraud provides for a sentence of up to 30 years in prison, up to three years of supervised release and a fine of $1 million. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Valuable assistance was provided by the Worcester Police Department. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Worcester Branch Office is prosecuting the case.

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

BOSTON – A Texas man was sentenced on Friday, May 14, 2021 in connection with kidnapping and stalking his then wife, and his subsequent efforts to prevent her testimony in federal court.

Sunil K. Akula, 32, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 56 months in prison and three years of supervised release. Akula will be subject to deportation to India upon completion of his sentence. In November 2020, Akula pleaded guilty to kidnapping, stalking, obstruction of justice and witness tampering.

On Aug. 6, 2019, Akula traveled from his home in Texas to Agawam, Mass. to confront his then wife, from whom he was living apart. Akular subsequently assaulted his wife and forced her to leave her apartment and get into a car with him, stating that he was taking her back to Texas.

Akula then drove his wife through multiple states, during which time he again assaulted her, forced her to send a resignation e-mail to her employer, and smashed her laptop and threw it on the side of the highway. Akula stopped at a Knox County, Tenn. hotel, where he again beat his wife. Akula later opened the door to leave the hotel room and was arrested by local law enforcement officers.

While Akula was held in custody, he made phone calls to family in India instructing them to contact his wife’s father to convince her to withdraw her statements to law enforcement. 

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Chicopee Interim Police Chief Lonny Dakin; Agawam Police Chief Eric Gillis; Knox County Sheriff Tom Spangler; and Plano (Texas) Police Chief Ed Drain made the announcement. Assistant U.S. Attorneys Deepika Bains Shukla, Chief of Mendell’s Springfield Branch Office, and Catherine G. Curley of Mendell’s Springfield Branch Office prosecuted the case.

BOSTON – A Sandisfield man was indicted by a federal grand jury last week in connection with receiving and possessing an unregistered firearm.

Brian Hohman, 57, was indicted on one count of receiving and possessing an unregistered firearm. Hohman was detained following an initial appearance in federal court in Springfield today. A detention hearing has not yet been scheduled.

According to the indictment, on Sept. 23, 2020, Hohman was in possession of a Harrington & Richardson Arms shotgun which had a barrel length of less than 18 inches and was not registered to Hohman in the National Firearms Registration and Transfer Record.

The charge of receipt and possession of an unregistered firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000.  

Acting United States Attorney Nathaniel R. Mendell and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement. The Massachusetts State Police also assisted in the investigation.  Assistant U.S. Attorney Catherine G. Curley of Mendell’s Springfield Branch Office is prosecuting the case. 

This prosecution 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.

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 – Jasiel F. Correia II, the former Mayor of Fall River, Mass., was convicted by a federal jury today in connection with a scheme to defraud investors and extorting marijuana vendors for thousands of dollars.

Correia, 29, was convicted of nine counts of wire fraud, four counts of filing false tax returns, four counts of extortion conspiracy and four counts of extortion. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Sept. 20, 2021.

Correia was first indicted on wire fraud and filing false tax returns in October 2018. He was subsequently charged in a superseding indictment in September 2019 with, among other crimes, extortion conspiracy and extortion.

“Jasiel Correia made many promises in business and politics, but today’s verdict speaks the truth: Correia defrauded people who trusted him, he lied on his taxes, and he extorted hundreds of thousands of dollars in bribes as the mayor of Fall River,” said Acting United States Attorney Nathaniel R. Mendell. “With this prosecution, the U.S. Attorney’s Office has again fulfilled its role to find, investigate and prosecute public corruption in Massachusetts. We do not campaign, we do not run for office. We prosecute public corruption without fear or favor. The people of Massachusetts deserve a U.S. Attorney’s office that works that way, we are proud to do this work, and we’re not stopping.”

“Today’s verdict makes it crystal clear that you can’t trade on your office, embrace a corrupt pay-to-play culture and get away with it. Jasiel Correia was only a two-term mayor, but he has done lasting damage to the trust bestowed upon him by the citizens of Fall River,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “In lying to investors and extorting hundreds of thousands of dollars in bribes to support his lavish lifestyle, he put his own selfish interests above those he was elected to serve. We thank the jurors for their service and thoughtful deliberations and remind the public that cases like this only fuel the FBI’s commitment to tackling public corruption at all levels of government.”

“Elected officials are rightly held to a higher standard and should set the example of honesty and adherence to the rule of law. As a business owner and as a mayor, Mr. Correia, betrayed the trust of both his clients and the voters who put him in office. The jury's decision today will now hold him accountable for his actions,” said Assistant Special Agent in Charge David Toy of the Internal Revenue Service-Criminal Investigation. “Today’s verdict proves that government employees, including elected officials, will be held accountable when they violate the public's trust, particularly in the performance of their official duties.”

“Today’s verdict proves that government employees, including elected officials, will be held accountable when they violate the public's trust, particularly in the performance of their official duties,” said Massachusetts Inspector General Glenn A. Cunha.

In 2012, Correia founded SnoOwl, an app designed to connect local businesses with their target consumer market. Seven individuals invested a total of approximately $360,000 in SnoOwl. Correia used approximately $230,000 – 64% of the money invested – to fund his own lavish lifestyle, burgeoning political career and other business ventures. Specifically, Correia used the investment funds to purchase tens of thousands of dollars of luxury items, including a Mercedes, jewelry and designer clothing; to pay for personal travel and entertainment, including tens of thousands of dollars on airfare, hotels, restaurants, casinos and adult entertainment; to pay down personal student loan debt; to fund his political campaign; and to make charitable donations in his own name.

To conceal his theft of funds from investors, Correia refused to provide the company’s financial records and gave false positive updates on SnoOwl’s status. Additionally, in May 2017, Correia instructed an accountant to file amended 2013 and 2014 personal tax returns in an effort to conceal his fraudulent activity from the IRS.

After taking office as Fall River Mayor in January 2016, Correia agreed to issue non-opposition letters to marijuana vendors in return for cash bribes and other payments. Under Massachusetts law, non-opposition letters from the head of local government are required in order to obtain a license to operate a marijuana business. Correia, as Mayor, was solely responsible for approving all non-opposition letters in Fall River. In addition, applicants seeking marijuana licenses are required to enter into host community agreements, between the marijuana company and the local government, stating that the company will give up to 3% of its gross sales to the local government.

Four marijuana vendors agreed to pay bribes ranging from over $75,000 up to $250,000 in cash, campaign contributions and mortgage discharges to Correia and his co-conspirators in return for non-opposition letters and host community agreements.

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

Acting U.S. Attorney Mendell; FBI Boston SAC Bonavolonta; IRS-CI Assistant SAC Toy; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Massachusetts Inspector General Cunha made the announcement. Assistant U.S. Attorneys Zachary Hafer, Chief of Mendell’s Criminal Division, and David Tobin, of Mendell’s Major Crimes Unit, are prosecuting the case.

BOSTON – A Connecticut man pleaded guilty yesterday in federal court in Springfield to a variety of charges in connection with stealing 17 firearms from a West Springfield gun shop and making false statements to federal agents. 

Christian Castro, 31, of New Britain, Conn., pleaded guilty to one count each of theft of firearm from a Federal Firearms Licensee; being a felon in possession of firearm; interstate transportation of a stolen firearm; receipt, possession, concealment, storage, barter, sale, or disposition of a stolen firearm in interstate commerce; and making false statements to a federal official. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept. 23, 2021

In September 2020, Castro was charged by criminal complaint with co-defendant Fernando Rivera, who pleaded guilty on May 5, 2021 and is pending sentencing.

Castro was a felon on state probation for two prior convictions in Connecticut for larceny and possessing narcotics with intent to distribute. Shortly after midnight on or about Aug. 29, 2020, Castro and Rivera engaged in a crime spree in Vermont, New Hampshire and Massachusetts that included seven ATM thefts or attempted thefts and culminated in the theft of 17 firearms from a federal firearms licensee in West Springfield, Mass.

On Sept. 18, 2020, federal agents arrested Rivera and Castro at their homes in Connecticut. During interviews with investigators Castro admitted that he drove to and from several ATM robberies and the gun store robbery, but falsely stated he never received, kept or even touched any of the stolen guns. 

During a search of Rivera’s phone investigators identified several photographs and videos depicting Rivera (and Castro in one instance) with many of the stolen firearms. A forensic extraction of the defendants’ phones allegedly revealed communications indicating that on Sept. 4, 2020, Rivera discovered that he was a suspect in the thefts and then traveled with Castro to New York to sell at least three of the firearms.

The firearms charges each provide for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. The charge of making false statements provides for a sentence of up to five 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 other statutory factors.

Acting United States Attorney Nathaniel R. Mendell and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division made the announcement. Special assistance was provided by the Massachusetts State Police; Springfield, Hadley, West Springfield, New Britain (Conn.) and Middletown (Conn.) Police Departments; Connecticut State Police; Connecticut Department of Correction; and Connecticut Judicial Branch Adult Probation. Assistant U.S. Attorney Steven H. Breslow of Mendell’s Springfield Branch Office is prosecuting the case. 

BOSTON – A Tewksbury real estate developer pleaded guilty yesterday in federal court in Boston to defrauding the government of more than $480,000 by engaging in a multi-year tax evasion scheme.    

Arnold Martel, 61, pleaded guilty to one count of tax evasion. U.S. District Court Judge George A. O’Toole Jr. scheduled sentencing for Sept. 22, 2021. Martel was charged on April 9, 2021.

For tax years 2014 through 2017, Martel personally received more than $1.2 million in payments for upgrades to condominiums his company sold. Martel deposited the payments into his personal accounts or cashed them, but did not report this income on this tax returns.   

The charge of tax evasion provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Martel is also required to pay restitution to the IRS. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorneys Sara Miron Bloom and David Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.

BOSTON – A Westford man has agreed to plead guilty to conspiring to commit bank fraud and possessing an unregistered firearm.

Bin Lu, 49, has agreed to plead guilty to one count of conspiracy to commit bank fraud and one count of possession of an unregistered firearm. Lu was arrested and charged in January 2021 with conspiracy to violate provisions of the National Firearms Act (NFA).

According to the charging documents, Lu and a co-conspirator sought to build a large indoor shooting range, which would service both regional and international customers, as well as offer shooting clinics and other services. Lu and his co-conspirators brought in a Chinese investor, who contributed several million dollars to the project. However, in applying for loans from federally insured financial institutions, Lu and his co-conspirators hid the true source of their initial funding from the banks and filed false documents in connection with their loan applications.

Lu also knowingly possessed a firearm that had been modified by the addition of a folding stock, resulting in its classification as a short-barreled rifle (SBR) under the NFA. The SBR was not registered to Lu in the National Firearms Registration and Transfer Record as required by the NFA.

The charge of conspiracy to commit bank fraud provides for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of $1 million, or twice the gross gain or loss, whichever is greater. The charge of possession of an unregistered firearm provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Jonathan Davidson, Special Agent in Charge of U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service in Boston; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The Westford Police Department provided special assistance in this case. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, is prosecuting the case.

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

BOSTON – Massachusetts-based global financial services company State Street Corporation entered into a deferred prosecution agreement and agreed to pay a $115 million criminal penalty to resolve charges that it engaged in a scheme to defraud a number of the bank’s clients by secretly overcharging for expenses related to the bank’s custody of client assets.

“State Street defrauded its own clients of hundreds of millions of dollars over decades in a most pedestrian way:  they tacked on hidden markups to routine charges for out-of-pocket expenses,” said the Acting United States Attorney Nathaniel R. Mendell. “The resolution requires State Street to take responsibility for the damage it caused and is a signal from us that financial giants will be held accountable for fraudulent conduct.”

“With today’s settlement, State Street Corporation is finally acknowledging that it has defrauded its clients out of more than $290 million, through a deceitful scheme that was in practice for 17 years,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The consequences for companies who cheat the marketplace and American consumers are significant and clear. The FBI will aggressively investigate those who engage in illegal business practices while ensuring their activity is brought to a halt.”

According to State Street’s admissions, between 1998 and 2015, bank executives conspired to add secret markups to “out-of-pocket” (OOP) expenses charged to the bank’s clients while letting clients believe that State Street was billing OOP expenses as pass-through charges on which the bank was not earning a profit. These markups were charged on top of fees that the clients had agreed to pay the bank, and despite written agreements that caused clients to believe the expenses would be passed through to them without a mark-up. State Street executives also took steps to conceal the mark-ups from clients, including by not disclosing the details underlying OOP expenses on invoices and by misleading clients when they inquired about what they were being charged for OOP-related activities. Through this scheme, State Street defrauded its clients out of more than $290 million.  

State Street entered into a deferred prosecution agreement in connection with a criminal information charging the company with one count of conspiracy to commit wire fraud. Pursuant to the agreement, State Street agreed to pay a criminal penalty of $115 million. State Street also agreed to continue to cooperate with the U.S. Attorney’s Office in any ongoing investigations and prosecutions relating to the conduct, to enhance its compliance program, and to retain an independent corporate compliance monitor for a period of two years.

This resolution is based on a number of factors, including that State Street voluntarily disclosed the misconduct, fully cooperated with the investigation, and agreed to fully reimburse the victims of the misconduct for amounts they were overcharged.

Acting U.S. Attorney Mendell and FBI Boston SAC Bonavolonta made the announcement today. Valuable assistance was provided by the U.S. Securities and Exchange Commission. Assistant U.S. Attorneys Justin D. O’Connell, of Mendell’s Securities, Financial & Cyber Fraud Unit, and Abraham George, of Mendell’s Affirmative Civil Enforcement Unit, are prosecuting the case.

BOSTON – A Newton man pleaded guilty today in connection with defrauding the General Services Administration.

Benedetto Valente, 60, pleaded guilty to one count of wire fraud. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 8, 2021. Valente was charged on April 22, 2021.

Valente engaged in a scheme to defraud the U.S. General Services Administration (GSA), as well as the company he worked for, by causing expenses to be billed that neither GSA nor the company actually incurred. Valente did so by inflating payroll expenses and charging items he used in his personal business and then creating fake documents to make it appear that those items were intended for GSA. Valente arranged to award contracts for scaffolding and masonry repair to a family member, including by submitting fake bids so his family member could obtain the contracts, and by diverting a subcontract awarded to another contractor to his family member at an inflated price.

The charging statute provides 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, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell and Joseph Dattoria, Special Agent in Charge of the General Services Administration, Office of Inspector General, Boston Field Investigations Office made the announcement. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case. 

BOSTON – A Malden man pleaded guilty today to identity fraud charges in connection with submitting fraudulent applications for Pandemic Unemployment Assistance (PUA). The federal PUA program provides unemployment-related benefits to individuals who have been impacted by COVID-19.

Wagner Sozi, 33, pleaded guilty to two counts of wire fraud, one count of aggravated identity theft and one count of making a false claim. U.S. District Judge George A. O’Toole Jr. scheduled sentencing for Sept. 22, 2021. Sozi was indicted by a federal grand jury in July 2020.

Sozi engaged in a scheme to use stolen identity information to open accounts, make purchases, rent cars and apply for PUA benefits. Sozi obtained this stolen identity information from various sources, including from a Cambridge realty company that collected the personal identifying information of people who sought to rent local apartments. Sozi lived with an individual who worked for this realty company, and various files belonging to the company were found in the apartment. Numerous identity theft victims tied to Sozi had been clients of this realty company, including at least one person in whose name a fraudulent PUA claim was filed.

Sozi, along with a female accomplice, opened credit accounts at an office supply retailer under various fake identities and then used these accounts to purchase Visa gift cards. Sozi used another stolen identity to purchase a Rolex for more than $15,000. He also possessed a Maine driver’s license, bearing his photograph and the name of an identity theft victim, which was used to open a bank account and to make large purchases at an Apple Store.

Following his arrest on June 25, 2020, documents were recovered from Sozi’s apartment, including a PUA debit card in another individual’s name. Further investigation revealed that the PUA claim associated with the seized debit card listed Sozi’s address as the mailing address and that another fraudulent PUA claim had been submitted under Sozi’s own name but with another Social Security number.

The charges of 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. 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 up to $250,000. The false claim charge provides for a sentence of up to three 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 other statutory factors.  

Acting United States Attorney Nathaniel R. Mendell; Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Nick Splagounias, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations made the announcement today. The Commonwealth of Massachusetts, Department of Unemployment Assistance, Program Integrity Unit, the Massachusetts State Police and the Malden, Medford and Braintree Police Departments provided valuable assistance with the investigation. Assistant U.S. Attorney Bill Abely, Chief of Mendell’s Major Crimes Unit, is prosecuting the case.

BOSTON – Former Boston Police Sergeant George Finch has been charged and has agreed to plead guilty in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s evidence warehouse. 

Finch, 59, of Franklin, has been charged with one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. Finch will make an appearance via videoconference in federal court in Boston at a date to be set by the Court.

According to charging documents, members of Boston Police Department’s Evidence Control Unit (ECU), 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 March 2015, members of the ECU 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 such shift, called “purge” overtime, was focused on reducing the inventory of the evidence warehouse. The shift was supposed to be performed from 4-8 p.m. on weekdays. According to charging documents, on days during which Finch and other members of the ECU claimed to have worked until 8:00 p.m., the warehouse was closed, locked and alarmed well before 8:00 p.m., and often at 6:00 p.m. or earlier. Despite this, Finch and, allegedly, other members of the ECU routinely submitted false and fraudulent overtime slips, claiming to have actually worked until 8:00 p.m. It is alleged that supervisors such as Finch, who also left early from this shift, submitted their own false and fraudulent slips and knowingly endorsed the fraudulent overtime slips of their subordinates. 

Another shift, called “kiosk” overtime, occurred once a month on Saturdays and involved collecting materials from kiosks located in each of the city’s police districts and transporting it to an incinerator in Saugus. It is alleged that Finch and other officers performing this overtime shift routinely submitted overtime slips claiming to work eight-and-one-half hours. However, officers frequently completed the necessary work early, often within four hours, and falsely and fraudulently claimed to actually work eight-and-one-half hours.

According to charging document, between March 2015 and September 2016, Finch personally collected approximately $11,310 for overtime hours he did not work. In sum, the loss to BPD as a result of the criminal conspiracy is alleged to be in excess of $150,000.

From 2015 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. 

Finch is the 11th officer to be charged as a result of the investigation of overtime at the evidence warehouse. Three, including Finch, have now pleaded guilty or have agreed to do so. 

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 other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; 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. Assistance was provided by the Boston Police Department. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.

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

BOSTON – A Boston Police officer has agreed to plead guilty in connection with committing over $16,000 in overtime fraud while assigned to the Boston Police Department’s evidence warehouse.

Michael Murphy, 61, of Hyde Park, agreed to plead guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. A plea hearing has not yet been scheduled.

In September 2020, Murphy and eight other Boston Police officers were arrested and charged for their roles in an overtime fraud scheme that is alleged to have collectively embezzled over $250,000 between May 2016 and February 2019.  

Between September 2016 and February 2019, Murphy submitted false and fraudulent overtime slips for overtime hours that he did not work for two overtime shifts at the evidence warehouse. The first, called “purge” overtime, was a 4-8 p.m. weekday shift intended to dispose of old, unneeded evidence. The second shift, called “kiosk” overtime, involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned. 

For the “purge” shift, Murphy claimed to have worked from 4-8 p.m., but he routinely left at 6:00 p.m., or before. For the kiosk shift, Murphy submitted overtime slips claiming to have worked eight-and-one-half hours, but he only worked three-to-four hours of those shifts.

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.

As part of the ongoing investigation, two additional officers from the evidence warehouse have recently been charged. Former Boston Police Captain Richard Evans was indicted in April 2021, and former Sergeant George Finch was charged today and has agreed to plead guilty.   

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 other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office made the announcement today. Assistance was provided by the Boston Police Department. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.

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

BOSTON – A Boston man was sentenced today in connection with surreptitiously filming boys in the restrooms at Boston Latin School (BLS).

Eric Tran Thai, 39, was sentenced by U.S. District Judge William G. Young to 12 years in prison and five years of supervised release. On Jan. 12, 2021, Thai pleaded guilty to two counts of possession of child pornography.

On Feb. 6 and Feb. 27, 2018, two separate Boston College students reported to the police that they had been videotaped without their knowledge or consent while were using the men’s restrooms on the Boston College campus. Following the Feb. 27, 2018, report, police located and spoke with Thai on campus. Thai was placed under arrest on state charges related to his surreptitious recording of the students and his bag was subsequently searched; in it, police found several covert camera devices, including faux smoke detectors, a water bottle containing a small cube recording device and a pair of sunglasses outfitted with a built-in camera. The state charges related to those offenses are currently pending in Middlesex County Superior Court.

Following Thai’s arrest, a search of his home was executed where dozens of devices including computer hard drives, thumb drives, covert and regular cameras, computers, iPads, cell phones and multiple SD and Sim cards were recovered. Investigators found several electronic folders labeled BU, MIT, Harvard, Northeastern, Bunker Hill, Boston Latin High School, and several different malls, airports and foreign country locations. Thai was charged federally for the child pornography located in the Boston Latin folders, which contained approximately 45 surreptitiously-recorded videos of male students in various states of dress using the urinals and stalls in the boys’ bathroom. The videos appear to have been created on approximately 10 separate dates between February and December 2017, all after school hours. 

In general, the videos show Thai sitting in a bathroom stall at Boston Latin High School recording individuals in adjacent stalls or at the urinals through various secret recording methods. In some videos, Thai holds a camera over the top of the partition between the bathroom stalls and videotaping from overhead. In other instances, he hides a small camera inside his backpack, places the backpack on the bathroom floor and videotapes individuals in the adjacent bathroom stall from under the stall’s partition. While recording, Thai simultaneously viewed what the camera was recording on a cellphone or a tablet device in his possession.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Middlesex District Attorney Marian T. Ryan; Boston Police Acting Commissioner Gregory Long; and Boston College Police Chief William B. Evans made the announcement. Assistant U.S. Attorney Anne Paruti, Mendell’s Project Safe Childhood Coordinator and Deputy Chief of the Major Crimes Unit, prosecuted the case.

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

BOSTON – A Boston man pleaded guilty today in federal court in Boston to being a felon in possession of a firearm and ammunition.

Elvis R. Abinader, 21, pleaded guilty to one count of being a felon in possession of a firearm and ammunition before U.S. Senior District Court Judge Mark L. Wolf who scheduled sentencing for Aug. 5, 2021. Abinader was indicted in October 2019.

Abinader possessed a Ruger .380 caliber pistol with an obliterated serial number and three rounds of ammunition on June 24, 2019, at the Mt. Pleasant Play Area, a playground in Boston. Federal law prohibits Abinader from possessing a firearm or ammunition due to a prior felony conviction for a narcotics distribution offense.

The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Suffolk County District Attorney Rachael Rollins; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorney James R. Drabick of Mendell’s Criminal Division is prosecuting 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 – A Swampscott financial advisor pleaded guilty yesterday in federal court in Boston to defrauding an elderly victim and her bank by stealing the victim’s retirement assets.

Felix Gorovodsky, 29, pleaded guilty to one count of bank fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Sept. 14, 2021.

Gorovodsky served as a financial advisor for the victim. In or about July 2019, the victim terminated that advisor relationship and revoked the power of attorney she had previously granted him. Approximately nine months later, Gorovodsky accessed and liquidated the victim’s bank account, transferring more than $250,000 into his own bank account. Gorovodsky then used the victim’s stolen retirement funds for personal expenses, including paying off more than $100,000 in federal student loans. As part of the scheme, Gorovodsky forged the victim’s signature on a purported “gift letter,” which he sent to the bank in an attempt to legitimize the fraudulent transfer.

Pursuant to the terms of the plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of 33 months in prison, two years of supervised release and restitution of at least $318,000.

The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. The Department of Education, Office of Inspector General provided valuable assistance with the investigation. Assistant U.S. Attorney Ian Stearns of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.

BOSTON – A U.S. Postal Service (USPS) employee pleaded guilty yesterday in federal court in Boston in connection with stealing mail and making over $16,000 in fraudulent purchases and ATM withdrawals.

Angela Gomez, 40, of Lynn, pleaded guilty to one count of theft of mail by an employee. U.S. District Court Judge Denise J. Casper deferred acceptance of the plea until sentencing, which is scheduled for Sept. 2, 2021. In November 2020, Gomez was arrested and charged by criminal complaint.

Postal inspectors received information that customers in Lynn reported missing mail. For example, one USPS customer reported that an expected Lilly Pulitzer gift card never arrived in the mail. Further investigation revealed that USPS City Carrier Assistant Angela Gomez handled that particular customer’s route. Records indicated that the expected gift card was used in January 2020 for purchases delivered to Gomez’s then-home address and that the corresponding email address belonged to Gomez. Subsequent surveillance of Gomez during the performance of her duties revealed that she rifled through and stole mail on 21 separate occasions.

Agents were then contacted by an Eastern Bank fraud investigator, who was investigating multiple unauthorized Automatic Teller Machine (ATM) withdrawals and debit card purchases made using three separate Eastern Bank accounts. The Eastern Bank accounts were owned by individuals who all resided on the carrier route Gomez was assigned to prior to when the unauthorized transactions began. Eastern Bank records confirmed three compromised accounts. Security camera video footage related to several of the unauthorized debit card purchases (including at Walmart and Target shopping centers) showed Gomez making unauthorized purchases using debit cards associated with the three compromised Eastern Bank accounts. ATM and bank security camera videos from Eastern Bank showed Gomez making unauthorized cash withdrawals from the three Eastern Bank accounts. The total loss amounts of unauthorized debit card purchases and ATM withdrawals incurred to the three Eastern Bank accounts is $16,587.

Gomez also stole four separate U.S. Treasury Economic Impact Payment (EIP) checks, more commonly known as stimulus checks, totaling $4,800, which were intended for delivery to USPS customers who lived on Gomez’s carrier route. 

In total, Gomez stole $21,387 in fraudulent debit card purchases, ATM withdrawals and stimulus checks.

As part of the plea agreement, Gomez has agreed to pay restitution to the victims.        

The charging statute provides for a sentence of up to five years in prison, three years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office; and William Kalb, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration Office of Investigations, New York Field Office made the announcement. Assistant U.S. Attorney Eugenia M Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, is prosecuting the case.

BOSTON – The owner of a commercial and residential painting business on Nantucket was sentenced yesterday in connection with an income diversion and payroll tax scheme resulting in a tax loss that exceeded $2 million.

Durvan C. Lewis, 51, of Nantucket, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to two years in prison, two years of supervised release and a fine of $10,000. Lewis was also ordered to pay $2,084,852 in restitution to the IRS. On Feb. 10, 2021, Lewis pleaded guilty to one count of tax evasion and one count of failure to pay over taxes.

Lewis owned and operated a painting business known as DCL Painting. From 2014 through 2017, Lewis diverted over $1.5 million of DCL Painting’s gross receipts to his personal bank account and failed to report the diverted receipts to his tax preparer. In addition, during the tax quarters ending March 31, 2012 through Sept. 30, 2019, Lewis paid over $5 million in wages to DCL Painting’s employees in cash “under the table.” As a result of his conduct, Lewis underreported his personal income tax obligations, as well as failed to report and pay over to the IRS the employment taxes owed on the cash wages. In total, Lewis caused a loss to the IRS of $2,084,852.

Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Boston Field Office made the announcement. Assistant U.S. Attorney James R. Drabick of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.

BOSTON – A Lawrence man pleaded guilty and was sentenced today in federal court in Boston in connection with drug trafficking activities involving fentanyl.

Ronyel Pena, 20, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl, two counts of distribution of and possession with intent to distribute fentanyl, one count of distribution of 40 grams or more of fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Richard G. Sterns then sentenced Pena to one year and one day in prison and four years of supervised release.

According to court documents, beginning in the spring of 2019, federal agents began an investigation into a drug trafficking organization (DTO) in the Lawrence area. Between April and June 2019, federal agents made five controlled purchases of fentanyl from the DTO. Pena delivered the fentanyl for four of the five controlled purchases. 

Pena was charged as part of a coordinated enforcement operation in the Merrimack Valley dubbed “Operation Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. The Massachusetts State Police and the Lawrence Police Department assisted in this investigation. Assistant U.S. Attorney Alathea Porter of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.

BOSTON – A Dominican national was sentenced today in federal court in Boston for heroin and fentanyl possession and distribution charges.

Juan Santos Roque, 43, was sentenced by U.S. District Court Judge Richard G. Stearns to 63 months in prison and two years of supervised release. In October 2020, Santos Roque pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl and one count of possession with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl.

In 2019, Santos Roque’s co-defendant, James De La Cruz, arranged for the sale of 10 kilograms of fentanyl and six kilograms of heroin to a confidential informant at a hotel in Peabody. On Oct. 21, 2019, Santos Roque and De La Cruz drove from New York and arrived separately at the meeting location. Santos Roque had stored 16 kilograms of heroin and fentanyl in a hidden compartment in his vehicle. When Santos Roque arrived at the hotel parking lot, he met with the confidential informant and handed over the 16 separate drug packages. Agents then took both men into custody.

De La Cruz pleaded guilty on May 7, 2021 and is scheduled to be sentenced on Oct. 6, 2021.

Acting United States Attorney Nathaniel R. Mendell and William S. Walker, Acting Special Agent in Charge, Homeland Security Investigations in Boston made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Peabody Police Department. Assistant U.S. Attorney Stephen W. Hassink of Mendell’s Narcotics and Money Laundering Unit prosecuted the case. 

BOSTON – A Dominican national previously residing in Lawrence was sentenced today in federal court in Boston for fentanyl conspiracy charges.

Nieves Guzman, 34, was sentenced by U.S. District Court Judge Denise J. Casper to time served (approximately 18 months in prison). Guzman will be subject to deportation upon completion of his sentence. In January 2021, Guzman pleaded guilty to conspiracy to distribute and possession with intent to distribute 400 grams or more fentanyl.

On Nov. 2, 2019, investigators executed a search warrant at a suspected stash house in Lawrence associated with a drug organization and encountered Guzman, who had a kilogram brick of fentanyl in her purse. At the stash house, investigators also located various drug distribution paraphernalia, including a mixing bowl containing suspected fentanyl, sifters and blenders.

Two of Guzman’s co-defendants, Francis Jimenez Minyetty and Enmanuel Brioso Fabal, have pleaded guilty and are awaiting sentencing.

Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Lauren Graber of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.

BOSTON – A Dominican national previously residing in Methuen was sentenced yesterday in federal court in Boston to distributing fentanyl.

Milton Elias Lara, 42, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to time served (22 months in prison) and three years of supervised release. Lara will be deported to the Dominican Republic. In June 2020, Lara pleaded guilty to distribution of and possession with intent to distribute 40 grams or more of fentanyl.

During the course of an investigation, Lara was identified as a fentanyl distributor operating in the Merrimack Valley. A search of Lara’s apartment resulted in the seizures of approximately 289 grams of fentanyl, 24 grams of cocaine and drug packaging tools and materials.

Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Tewksbury Police Chief Timothy Sheehan made the announcement. Valuable assistance was provided by Homeland Security Investigations and the Andover, Billerica, Lawrence, Lowell, Methuen and North Andover Police Departments. Assistant U.S. Attorney Philip C. Cheng of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.

BOSTON – A former senior executive at TPG Capital, a global private equity firm, was sentenced today in connection with his involvement in the college admissions case. 

William E. McGlashan, Jr., 57, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to three months in prison, two years of supervised release, a fine of $250,000 and 250 hours of community service. On Feb. 10, 2021, McGlashan agreed to plead guilty to one count of wire fraud and honest services wire fraud.

In 2017, McGlashan, the former managing partner of TPG Growth and co-founder of The Rise Fund, agreed to pay co-conspirator William “Rick” Singer to bribe Igor Dvorskiy, a corrupt test administrator, to allow Mark Riddell, a corrupt test “proctor,” to secretly correct McGlashan’s son’s ACT exam answers to obtain a fraudulently inflated score. As a result, McGlashan’s son received a fraudulent ACT score of 34. McGlashan made a purported donation of $50,000 from his personal charitable donation fund to Singer’s sham charity. In turn, Singer paid Dvorskiy and Riddell.

Singer, Dvorskiy, and Riddell have pleaded guilty for their respective roles in the scheme.

Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Karin M. Bell and Stephen E. Frank of Mendell’s Criminal Division prosecuted the case.

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

BOSTON – A Worcester man pleaded guilty today to being a felon in possession of a firearm and ammunition.

Nicholas Briggs, 22, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Aug. 30, 2021. Briggs was indicted by a federal grand jury in November 2020.

On July 4, 2020, Briggs was arrested by police for carrying a loaded Glock pistol. Briggs is prohibited from possessing a firearm due to prior convictions punishable by more than one year in prison.

The charging statute 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 other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Danial E. Bennett of Mendell’s Worcester Branch Office is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is 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 – A Miami woman was arrested today in connection with allegedly filing and obtaining fraudulent pandemic-related loans and using those funds for personal expenses.

Danielle Miller, 31, of Miami, Fla., was arrested and charged today in a criminal complaint with one count of wire fraud. Miller will appear in U.S. District Court in Miami tomorrow and will make an initial appearance in U.S. District Court in Boston at a later date.

According to the complaint, Miller allegedly accessed the online Registry of Motor Vehicles (RMV) account associated with a Massachusetts resident and then used that victim’s personal identifying information to open a bank account and to apply for a federally-funded Economic Injury Disaster loan (EIDL) through the U.S. Small Business Administration (SBA). In August 2020, more than $102,000 in SBA loan proceeds were deposited into that account. 

After receipt of these fraudulent loan proceeds, Miller allegedly used the bank account in the victim’s name to book a private flight from Florida to California, using a counterfeit Massachusetts driver’s license in the victim’s name but bearing Miller’s photograph, and conducted ATM transactions using the bank account in the victim’s name. 

As alleged in court documents, Miller maintains an active social media presence via her Instagram account, which has more than 34,000 followers. Posts to this account include a post showing Miller at various luxury hotels in California where transactions were made using the bank account in the victim’s name. For example, the luxury hotel Petit Ermitage allegedly posted a $5,500 charge to this bank account in September 2020, a few days after Miller’s Instagram account posted a photo of Miller that was geotagged to the Petit Ermitage.

It is alleged that the same IP address used to apply for the fraudulent SBA loan was also used to access the online RMV accounts of other individuals and to apply for more than $900,000 in SBA loans under those other identities.

The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. 

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

Acting United States Attorney Nathaniel R. Mendell and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Bill Abely, Chief of Mendell’s Major Crimes Unit, is prosecuting the case.

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

BOSTON – A Lowell woman was sentenced yesterday in connection with embezzling approximately $182,000 from a veterinary hospital that employed her.

Sasha A. Saulnier, 33, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year and one day in prison, two years of supervised release and restitution in the amount of $182,827.68. In January 2020, Saulnier pleaded guilty to six counts of wire fraud

Saulnier was employed by a full-service animal hospital as a client relations specialist from October 2011 until September 2018. During that time, she had various client responsibilities, including selling retail products to customers at the hospital. Saulnier also served in a temporary supervisory role, which gave her access to management software and the ability to manipulate account transactions and accounting data.

From March 2014 through August 2018, Saulnier entered false refund transactions into the company’s management software, and then credited her own personal debit cards, which linked directly to her personal checking account. Specifically, Saulnier occasionally entered a fictitious refund for merchandise that was legitimately purchased by a customer, but never returned, and then credited the bogus refund to her own debit card. Saulnier also fabricated refunds for wholly fictitious retail purchases that were never actually made, and then credited that amount to her own debit card. In an effort to conceal her fraud, Saulnier used dormant accounts of inactive hospital clients, such as those with deceased pets and so-called “test accounts,” set up solely for training purposes. In addition, Saulnier fabricated discounts which she applied to purchases of retail products.

Over the course of the scheme, Saulnier used her position to falsify approximately 482 transactions resulting in refunds and credits totaling more than $182,800 to her own bank account. Saulnier used this money for personal expenses and travel, including trips to Las Vegas, New York City and the Bahamas.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorneys Lindsey E. Weinstein and Mackenzie Duane of Mendell’s Criminal Division prosecuted the case.

BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston in connection with drug trafficking activities that resulted in seizures of over a half-kilogram of fentanyl.

Hilario Yogey Mota-Bernabel, 29, a Dominican national residing in New Bedford, pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute  fentanyl and six counts of possession with intent to distribute and distribution of 40 grams or more of fentanyl. U.S. District Court Judge William G. Young scheduled sentencing for Sept. 8, 2021.

In May 2018, Yogey Monta-Bernabel was charged by complaint and arrested with his co-defendant brother, Miki Michael Mota-Bernabel. In September 2020, Miki Michael Mota-Bernabel was sentenced to five years in prison and two years of supervised release after pleading guilty.

Co-defendant Steven Marshall was arrested by federal authorities in June 2018. Marshall has since pleaded guilty and is awaiting sentencing.

In January and February 2018, investigators conducted surveillance of Marshall as he traveled to New Bedford to purchase fentanyl from his source of supply, Hilario Yogey Mota-Bernabel. After a fentanyl pick up on March 1, 2018, investigators stopped Marshall, searched his vehicle, and seized approximately 125 grams of fentanyl. 

Agents conducted four controlled purchases, of approximately 100 grams of fentanyl each, from Hilario Yogey Mota-Bernabel in March and April 2018. For one of the controlled purchases, Miki Michael Mota-Bernabel served as the courier, delivering over 100 grams of fentanyl to an undercover agent. Hilario Yogey Mota-Bernabel personally delivered the fentanyl on another occasion. 

A search of Hilario Yogey Mota-Bernabel’s residence and stash house in May 2018 resulted in the seizure of over 200 grams of suspected fentanyl, $12,395 and other drug-related paraphernalia. Court documents also indicate the Mota-Bernabels entered the United States illegally. 

The charge of conspiracy provides for a sentence of up to 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of up to $1 million. The charges of possession with intent to distribute and distribution of 40 grams or more of fentanyl provides for a minimum of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release and a fine of up to $5 million. The Mota-Bernabels will be subject to deportation upon completion of their sentences. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Barnstable Police Chief Matthew Sonnabend made the announcement. Assistant U.S. Attorney Lauren A. Graber of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case. 

BOSTON – A Cambridge man was sentenced yesterday in federal court in Boston for child pornography offenses.

Robert Wharton, 31, was sentenced by U.S. District Court Chief Judge Dennis Saylor IV to five years in prison and five years of supervised release. In December 2020, Wharton pleaded guilty to one count of receiving child pornography and one count of possessing child pornography.

Federal investigators developed evidence that a user of the Kik messaging application had electronically transmitted funds to another individual in exchange for access to internet links containing child pornography. The investigation revealed that those funds originated from Wharton and that Wharton resided in an apartment in Cambridge. During a search of Wharton’s apartment, Kik messages that Wharton had exchanged with the person to whom he had sent funds were discovered. In addition, various images and videos depicting naked children were found on Wharton’s phone, including a pornographic video that Wharton had received via the Telegram messaging application; this video depicts a young child performing oral sex on an adult.

Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division made the announcement. Valuable assistance was provided by the Cambridge, Arlington, Newton and Revere Police Departments and the Massachusetts Department of Correction. Assistant U.S. Attorney Bill Abely, Chief of Mendell’s 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 www.projectsafechildhood.gov.

BOSTON – A Worcester man was indicted by a federal grand jury yesterday on a firearm and ammunition offense.

Ahmed Sullay, 25, was indicted on one count of being a felon in possession of a firearm and ammunition.

According to charging documents, on Nov. 18, 2020, Sullay was arrested by police for possessing a loaded Jimenez Arms pistol. Sullay is prohibited from possessing a firearm due to prior convictions.

The charging statute provides for a sentence of up to ten 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 other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement. Assistant U.S. Attorney Danial E. Bennett of Mendell’s Worcester Branch Office is prosecuting the case.

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

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 – Two Dominican nationals were sentenced yesterday on drug and aggravated identity theft charges in connection with their roles in a fentanyl conspiracy.

Gregorio Andres Gonsalez Sepulveda, 47, a Dominican national previously residing in Revere, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to seven years in prison and four years of supervised release. In January 2020, Gonsalez Sepulveda pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl, three counts of distribution of and possession with intent to distribute 40 grams or more of fentanyl, five counts of distribution of and possession with intent to distribute fentanyl, one count of false representation of a Social Security number and one count of aggravated identity theft.

Sandy Alejandro Reynoso Cruz, 48, a Dominican national residing in Waterbury, Conn., was sentenced by Judge Wolf to seven years in prison and four years of supervised release. In December 2020, Reynoso Cruz pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl, one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl, one count of false representation of a Social Security number and one count of aggravated identity theft.

Gonsalez Sepulveda made six sales of fentanyl to a cooperating witness in Revere. Cruz was Gonsalez Sepulveda’s supplier. In addition, both defendants used stolen identities and Social Security numbers when applying for Massachusetts driver’s licenses in 2017.

Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Theodore Heinrich of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.

BOSTON – Nineteen Brazilian nationals were charged today with engaging in a nationwide conspiracy to set up fraudulent driver accounts with multiple rideshare and delivery service companies using stolen identities, and to rent or sell those accounts to drivers who might not otherwise qualify to drive for those services.

The alleged scheme also involved using the fraudulent accounts to exploit the company’s referral bonus programs, and using automated “bots” and GPS spoofing technology to increase the income earned from the fraudulent driver accounts. The government estimates that more than 2,000 victims’ identities were stolen and used as part of the scheme. 

“The scheme alleged in today’s charges was extensive, violated customers’ privacy, and enabled unqualified drivers to work for rideshare and food delivery services,” said Acting U.S. Attorney Nathaniel R. Mendell. “Millions of us rely on these services every day for transportation and to have meals and groceries delivered to our homes. They are an important part of the economy, especially now. We allege that the conspirators took advantage of that by stealing customers’ identities while making deliveries and using those stolen identities to set up fraudulent accounts. That means accounts for unqualified drivers who could not meet minimum qualifications, were not eligible to work in the United States, or could not pass a background check. That’s illegal. I encourage individuals who believe they may be a victim of this fraud to contact my Office.”

“These individuals are accused of executing a nationwide con in which they dragged thousands of innocent people into their scheme by stealing their identities. They thought it would be an easy way to generate some quick money, but in doing so they potentially compromised public safety by putting people behind the wheel who couldn’t get jobs with these companies on their own,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This massive fraud ring would have been more difficult to detect without the assistance of the victim companies in this case who are making a good faith effort to root out fraud and enhance their customers’ safety.”

The complaint alleges that beginning by at least January 2019, and continuing through at least April 2021, the defendants conspired with each other and with additional conspirators to defraud at least five different rideshare and delivery companies. The scheme involved obtaining images of victims’ driver’s licenses and Social Security numbers, creating fraudulent driver accounts using these identifiers, and renting or selling those accounts. Generally the accounts were rented or sold to individuals who did not otherwise qualify to drive for the rideshare and delivery services because they did not meet minimum qualifications, were not eligible to work in the United States, or could not pass a background check. 

The conspirators allegedly coordinated with each other on the prices they charged drivers to use the fraudulent accounts, and shared tips with each other on how to circumvent the companies’ fraud detection systems. The conspirators are also alleged to have fraudulently obtained referral bonuses from the companies by creating fraudulent driver accounts for the sole purpose of referring other fraudulent driver accounts. The conspirators allegedly used “bots” and GPS spoofing technology to exploit the rideshare and delivery companies’ systems. A “bot” is a software application that runs automated tasks over the Internet. GPS spoofing technology allows a user to fake the user’s location. 

As a result of the scheme, Internal Revenue Service Forms 1099 were generated in victims’ names for income the conspirators earned from the rideshare and delivery companies.

The following defendants were arrested and charged by criminal complaint with one count of conspiracy to commit wire fraud:

• Wemerson Dutra Aguiar, 25, a Brazilian national formerly residing in Lynn and Woburn, Mass.;
• Priscila Barbosa, 35, a Brazilian national residing in Saugus, Mass.;
• Edvaldo Rocha Cabral, 41, a Brazilian national residing in Lowell, Mass.;
• Clovis Kardekis Placido, 37, a Brazilian national residing in Citrus Heights, Cali.;
• Guilherme Da Silveira, 28, a Brazilian national residing in Revere, Mass.;
• Flavio Candido Da Silva, 35, a Brazilian national residing in Revere, Mass.;
• Altacyr Dias Guimaraes Neto, 34, a Brazilian national residing in Kissimmee, Fla.;
• Bruno Proencio Abreu, 28, a Brazilian national residing in Saugus, Mass.;
•  Jordano Augusto Lima Guimaraes, 34, a Brazilian national residing in Salem, Mass.;
• Alessandro Felix Da Fonseca, 25, a Brazilian national residing in Revere, Mass.;

Nine defendants remain at large.

If you believe that you may be a victim of the allegations in this case, please visit https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/us-v-wemerson-dutra-aguiar-and-us-v-priscila-barbosa-et-al 

The charges of conspiracy to commit wire fraud provide 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 offense, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting U.S. Attorney Mendell and FBI Boston SAC Bonavolonta made the announcement today. Significant assistance was provided by the Massachusetts State Police, Concord Police Department, Lexington Police Department, Plymouth Police Department, Wilmington Police Department, Marlborough Police Department, Village of Rye Brook (N.Y.) Police Department, U.S. Customs and Border Protection, U.S. Postal Inspection Service and the National Crime Insurance Bureau. Assistant U.S. Attorneys Kristen A. Kearney and David M. Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.

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

BOSTON – A New York man pleaded guilty today in federal court in Boston to heroin and fentanyl possession and distribution charges.

James De La Cruz, 30, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl and one count of possession with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl. U.S. District Judge Richard G. Stearns scheduled sentencing for Oct. 6, 2021.

In September and October 2019, De La Cruz spoke with a cooperating witness several times and met with the cooperating witness to arrange a large drug shipment from New York to the Boston area. On Oct. 21, 2019, De La Cruz and his co-defendant Juan Santos Roque drove from New York to Peabody, Mass. with approximately 10 kilograms of fentanyl and six kilograms of heroin in a hidden compartment in Santos Roque’s vehicle. After meeting with the cooperating witness, law enforcement agents arrested both men.

Santos Roque pleaded guilty in October 2020 and is scheduled to be sentenced on May 12, 2021.

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

Acting United States Attorney Nathaniel R. Mendell and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Peabody Police Department. Assistant U.S. Attorney Stephen W. Hassink of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.

BOSTON – A former client relationship manager at Bank of America was sentenced today in connection with embezzling $1.5 million from a client company and using a portion of those funds to purchase luxury items.

Waqas Ali, 31, of Abington, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to one year and one day in prison and two years of supervised release, one year of which is to be served on home confinement. Ali was also ordered to pay $600,000 in restitution and forfeiture. In October 2020, Ali pleaded guilty to wire fraud and unlawful monetary transactions.

Ali was the client relationship manager for the victim company, which was a Bank of America client. Ali opened a checking account in the name of the victim company without its knowledge or authorization, and between September 2016 and July 2017, fraudulently transferred over $1.5 million from the victim company’s accounts to a fraudulent account.

Ali used approximately $600,000 of the funds he fraudulently obtained to fund his lifestyle and pay for luxury items, including a Porsche SUV and retail items at Neiman Marcus, Bloomingdales, Christian Louboutin and Tag Heuer.

Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.

BOSTON – A former attorney was sentenced today in connection with a long-running scheme to embezzle funds from trusts for which he served as trustee.

Kevin M. Brill, 61, of Newton, was sentenced by U.S. Senior District Judge Mark L. Wolf to two years in prison, three years of supervised release and a fine of $15,000. Brill was also ordered to pay restitution of $381,662 to the victims and $169,000 to the IRS. On Jan. 11, 2021, Brill pleaded guilty to six counts of wire fraud and four counts of filing false tax returns.

From 2012 to July 2017, Brill served as a trustee for three family trusts with fiduciary responsibilities to protect and preserve the trust funds and make expenditures for the benefit of the beneficiary. Instead, Brill embezzled and misappropriated more than $600,000 from the trusts and used the proceeds for personal expenses including the purchase of a vehicle, a vacation home in Vermont, major renovations to the vacation home, and his personal credit card bills.

In addition, Brill failed to report his illegal income to the IRS, thereby avoiding payment of more than $169,000 that he owed in federal income taxes.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney Victor A. Wild of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.

BOSTON – A member of Primeiro Comando da Massachusetts (“PCM”), a gang with Brazilian origins, was sentenced yesterday in connection with committing armed robberies.

Alvaro Dos Santos Melo, 22, a Brazilian national illegally residing in Everett, was sentenced by U.S. District Court Judge Patti B. Saris to four years in prison. The defendant will face deportation proceedings upon completion of his sentence. On Jan. 25, 2021, Melo pleaded guilty to conspiracy to commit robbery and racketeering conspiracy.

According to court documents, in September 2018, law enforcement began investigating members and associates of PCM, which first appeared in Massachusetts in 2017. It is alleged that members and associates of PCM were actively involved in violent crimes including the illegal sale of firearms, drug trafficking, robberies, kidnappings and armed assaults in numerous communities in Massachusetts, including Boston, Malden, Everett, Somerville, Framingham and Peabody, among others.

Melo participated in the armed robbery of a car in Marlborough and a conspiracy to commit armed robbery of a drug courier. Melo is also wanted in Brazil.

All eight of the defendants in the case pleaded guilty to racketeering conspiracy and other charges.  In February 2021, Judge Saris sentenced co-defendant Breno Henrique DaSilva to 108 months in prison.  In April 2021, Judge Saris sentenced co-defendant Matheus Marley Machado to 27 months in prison.

Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. The Chelsea, Lowell, Malden, Marlborough, Somerville and Weymouth Police Departments and the Middlesex Sheriff’s Office provided assistance with the investigation. Assistant U.S. Attorney Timothy Moran, Deputy Chief of Mendell’s Organized Crime and Gang Unit, and Assistant U.S. Attorney Michael Crowley prosecuted the case.

BOSTON – A Quincy man was arrested on May 3, 2021 and charged with receipt of child pornography. 

Andre Tilahun, 27, was charged in a criminal complaint with one count of receipt of child pornography. Following an initial appearance yesterday, Tilahun was detained pending a detention hearing scheduled for May 7, 2021.

According to the charging documents, in April 2021, investigators executed a search warrant at Tilahun’s home and seized a laptop belonging to Tilahun. A forensic examination of the laptop revealed that Tilahun received images depicting child pornography on the Kik Messenger platform. It is also alleged that Tilahun participated in a Kik chatroom where participants shared child pornography.

The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Valuable assistance was provided by the Quincy Police Department and Weymouth Police Department. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit is prosecuting the case.

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

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

BOSTON – A Bronx, N.Y. man pleaded guilty on May 4, 2021 in connection with his role in a conspiracy to distribute a controlled substance in 2019.

Jason Jimenez, 27, pleaded guilty to one count of unlawful use of a communications facility. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Sept. 9, 2021.

On July 10, 2019, Jimenez was arrested after making admissions to investigators in connection with a drug transaction. He was indicted in August 2019 as part of a coordinated enforcement operation in the Merrimack Valley dubbed “Operation Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.

The charge of unlawful use of a communications facility provides for a sentence of up to four years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Valuable assistance was provided by the Lawrence Police Department and North Andover Police Department. Assistant U.S. Attorney Evan Panich of Mendell’s Office is prosecuting the case.

BOSTON – A member of the MS-13 gang pleaded guilty yesterday in federal court in Boston to racketeering charges and admitted to participating in a 2018 murder in Lynn.   

Jonathan Tercero Yanes, a/k/a “Desalmado,” 24, a national of El Salvador, pleaded guilty to racketeering conspiracy. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Sept. 15, 2021.

MS-13 is a transnational street gang operating in Massachusetts and numerous other states, as well as countries such as El Salvador, Honduras and Guatemala. MS-13 members follow certain core rules and principles, including that members attack and attempt to kill members of rival gangs, and members do not act as informants or cooperate with law enforcement.

MS-13 is organized in Massachusetts and elsewhere in the form of so-called “cliques” or smaller groups that operate under the larger mantle of MS-13. Tercero Yanes was a member of the Sykos Locos Salvatrucha clique of MS-13. Achieving promotion in MS-13 generally requires the commission of a significant act of violence.

Tercero Yanes was indicted in 2018 following an investigation into the murder of a teenage boy whose body was found in a park in Lynn on Aug. 2, 2018. The injuries to the victim’s body indicated that the victim had been stabbed dozens of times.  As part of his plea, Tercero Yanes admitted that on or about July 30, 2018, he participated in that murder while a member of the MS-13 gang. 

Tercero Yanes is the 4th defendant in this case to plead guilty and accept responsibility for his participation in murder. The remaining defendants in this case are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Based upon his conviction for RICO conspiracy involving murder, Tercero Yanes faces a sentence of up to life in prison, up to three years of supervised release and a fine of up to $250,000. Tercero Yanes will also be subject to deportation upon the completion of his sentence.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Essex County District Attorney Jonathan Blodgett; Suffolk County District Attorney Rachel Rollins; Acting Boston Police Commissioner Gregory Long; and Lynn Police Chief Michael Mageary made the announcement.

BOSTON – A former employee of the IRS Service Center in Andover was sentenced today for aiding and assisting in the preparation and filing of over 400 false tax returns for herself and other individuals.

Jennifer Beth True, 44, of Lawrence, was sentenced by U.S. District Court Judge Leo T. Sorokin to twelve months and one day in prison, three years of supervised release and a fine of $1,000. True was also ordered to pay $689 in restitution to victims who were charged interest and penalties based on the false returns she prepared for them, and $1,056,781 in restitution to the IRS. In September 2020, True pleaded guilty to four counts of aiding and assisting the filing of a false tax return and four counts of filing a fraudulent tax return by an employee of the United States.

True was employed by the Internal Revenue Service for over 22 years. In her position as a Lead Contact Representative, she assisted team members in responding to difficult and complex taxpayer inquiries. Throughout her employment, True was trained in tax law, ethics, information protection and disclosure, privacy, identity theft and identity protection.

True electronically filed over 500 tax returns for herself and other taxpayers between 2012 and 2018, in violation of IRS rules prohibiting employees from “[e]ngaging in the preparation of tax returns for compensation, gift, or favor.” True admitted that between approximately February 2012 and April 2018, she prepared or assisted in preparing and filing of at least 70 IRS Forms 1040 – U.S. Individual Income Tax Returns – for herself and other taxpayers that True knew contained false items such as false individual retirement account deductions, false medical expenses, false and inflated unreimbursed business expenses and/or false tax preparation fees. Some returns also included false child and dependent care credits. As a result of the false deductions claimed on the returns, the tax obligations of True and those individuals whose false returns she prepared was reduced.

Acting United States Attorney Nathaniel R. Mendell; William Kalb, Special Agent in Charge of the Treasury Inspector General for Tax Administration, New York Field Office; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Mendell’s Public Corruption & Special Prosecutions Unit prosecuted the case.

BOSTON – A Connecticut man pleaded guilty yesterday in federal court in Springfield to a variety of charges in connection with stealing 17 firearms from a West Springfield gun shop and making false statements to federal agents. 

Fernando Rivera, 24, of New Britain, Conn., pleaded guilty to one count each of theft of firearm from a Federal Firearms Licensee; being a felon in possession of a firearm; interstate transportation of a stolen firearm; receipt, possession, concealment, storage, barter, sale, or disposition of a stolen firearm in interstate commerce; and making false statements to a federal official. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept. 15, 2021.

In September 2020, Rivera was charged by criminal complaint with co-defendant Christian Castro, who agreed to plead guilty yesterday.

Rivera was a felon on state probation for a prior narcotic charge in Connecticut. Shortly after midnight on or about Aug. 29, 2020, Rivera and Castro engaged in a crime spree in Vermont, New Hampshire and Massachusetts that included seven ATM thefts and culminated in the theft of 17 firearms from a Federal Firearms Licensee in West Springfield, Mass.

On Sept. 18, 2020, federal agents arrested the two men at their homes in Connecticut.

The firearms charges each provide for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. The charge of making false statements provides for a sentence of up to five 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 other statutory factors.

Acting United States Attorney Nathaniel R. Mendell and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division made the announcement. Special assistance was provided by the Massachusetts State Police; Springfield, Hadley, West Springfield, New Britain (Conn.) and Middletown (Conn.) Police Departments; Connecticut State Police; Connecticut Department of Correction; and Connecticut Judicial Branch Adult Probation. Assistant U.S. Attorney Steven H. Breslow of Mendell’s Springfield Branch Office is prosecuting the case.

BOSTON – A Springfield man was sentenced yesterday for his role in a large-scale drug conspiracy that trafficked dozens of kilos of heroin and fentanyl into Springfield from New York City and the Dominican Republic.

Julian Declet, 37, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 22 months in prison and three years of supervised release. In October 2019, Declet pleaded guilty to one count of conspiring to distribute and possess with intent to distribute heroin.

Declet worked at AJ Buy and Sell, a pawn shop in Springfield owned by co-defendant Alberto Marte. Declet admitted to brokering several sales of heroin on behalf of Marte. The deals frequently involved at least $50,000 worth of heroin. The Marte Drug Trafficking Organization (DTO) had direct contact with heroin supply sources in the Dominican Republic. On a monthly basis, members of the DTO transported between eight and 20 kilograms of heroin into the Springfield area.

Marte and 11 co-conspirators have pleaded guilty and one was convicted by a federal jury. In March 2020, Marte was sentenced to 15 years in prison.

Acting United States Attorney Nathaniel R. Mendell; Hampden County District Attorney Anthony D. Gulluni; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Springfield Police Commissioner Cheryl Claprood; Chicopee Police Chief William Jebb; Holyoke Police Chief Manny Febo; and West Springfield Police Chief Paul Connor made the announcement. Assistant U.S. Attorneys Neil Desroches, David G. Lazarus and Stephen W. Hassink of Mendell’s Springfield Branch Office prosecuted the case.

BOSTON – The former Chief Financial Officer of Alden Shoe Co. pleaded guilty today to embezzling approximately $30 million from the company as part of a long-running scheme. 

Richard Hajjar, 64, of Duxbury, pleaded guilty to one count each of wire fraud, unlawful monetary transactions and filing a false tax return. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Sept. 15, 2021 at 3 p.m.

From at least 2011 through October 2019, when he was terminated by Alden Shoe Co., Hajjar embezzled money by writing checks to himself from company bank accounts and transferring funds from company accounts to his personal accounts and to another individual. In total, Hajjar embezzled approximately $30 million which he used to enrich himself and to buy gifts and luxury travel for others close to him, including private flights to the Caribbean and diamond jewelry.

In addition, between approximately 2014 and 2019, Hajjar failed to report the proceeds of his embezzlement as income on his tax returns, thereby failing to pay approximately $5,112,822 in taxes to the Internal Revenue Service.

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

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations made the announcement today. Assistant U.S. Attorneys Mackenzie A. Queenin of Mendell’s Securities, Financial & Cyber Fraud Unit and Carol E. Head of Mendell’s Asset Recovery Unit are prosecuting the case.

BOSTON – A Chicago area rap artist was charged in federal court in Springfield, Mass. with allegedly making a false statement to a federal agent.  

Herbert Wright, 25, a/k/a “G Herbo,” was charged with one count of making a false statement to a federal official. Wright and five co-defendants, including Antonio Strong, a rap promoter, were previously indicted for conspiracy to commit wire fraud and aggravated identity theft. 

According to the previous indictment, beginning in approximately March 2016, the defendants allegedly conspired to defraud numerous businesses and individuals throughout the United States by using unauthorized and stolen payment card account information to obtain valuable goods and services, such as private jet and yacht charters, exotic car rentals, luxury hotel and vacation rental accommodations, private chef and security guard services, designer puppies, limousine and chauffer services, commercial airline flights, consumer goods and meals. 

Yesterday, Wright was charged with allegedly making false statements to a federal agent on Nov. 24, 2018. Specifically, it is alleged that Wright falsely told the federal agent that he never worked with or was assisted by Antonio Strong; he never provided Strong any money; he never received anything of value from Strong; and he had no direct relationship with Strong. In fact, since at least 2016, it is alleged that: (1) Strong worked with and assisted Wright; (2) Wright provided Strong money; (3) Wright received valuable goods from Strong, including private jet charters, luxury accommodations, and exotic car rentals; and (4) Wright had frequent direct contact with Strong, including phone conversations, text messages and Instagram messages.

The charge of false statements provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.  

Acting United States Attorney Nathaniel R. Mendell and Frederick Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement. Assistant U.S. Attorney Steven H. Breslow of Mendell’s Springfield Branch Office and Trial Attorney Andrew Tyler of the Justice Department’s Criminal Division’s Fraud Section.

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 Milton woman pleaded guilty today to her role in a marijuana delivery service.

Deana Martin, 53, of Milton, pleaded guilty to one count of tax evasion, one count of conspiracy to distribute marijuana, one count of possession with intent to distribute marijuana and three counts of money laundering. U.S. District Judge Timothy S. Hillman scheduled sentencing for Sept. 1, 2021. 

Martin and co-defendant Tatiana Fridkes were indicted in May 2019 in connection with their management of Northern Herb, a marijuana delivery service that operated in Massachusetts from 2015 to 2018. In September 2020, Fridkes pleaded guilty to conspiracy to distribute marijuana and is scheduled to be sentenced on June 3, 2021.

Martin owned and managed Northern Herb, which operated a website offering marijuana products for sale including raw marijuana, pre-rolled marijuana cigarettes and marijuana edibles. While Northern Herb purported to provide medical marijuana, it did not require a customer to provide proof of a medical marijuana card. Furthermore, Northern Herb delivered marijuana to unattended locations (such as a front door or hallway) where unknown third parties could have accessed it. Northern Herb used locations in Canton, Milton, Foxborough and Hyde Park to store and distribute marijuana, and employed at least 25 workers.

From May 2016 through July 2018, Northern Herb’s revenue exceeded $14 million. Northern Herb did not withhold or pay taxes on its millions of dollars in marijuana sales and did not pay taxes on its profits. Much of the cash collected by Northern Herb from customers was used to pay its suppliers and its workers. In paying cash wages, Northern Herb did not withhold, remit, or pay any payroll or income taxes. Northern Herb did not report worker wages to the IRS via Form 941, nor did it issue W-2s or 1099s to its workers.

On the drug counts, Martin faces a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of money laundering provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000 or twice the value of the money laundered. The charge of tax evasion provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $100,000. Martin also faces restitution and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The United States Postal Inspection Service also provided valuable assistance with this investigation. Assistant U.S. Attorneys Bill Abely and John Mulcahy of Lelling’s Criminal Division and Assistant Chief Kathleen Barry of the Justice Department’s Tax Division are prosecuting the case.

BOSTON – A former North Shore resident was arrested today in connection with allegedly filing a fraudulent loan application in order to obtain over $660,000 in Paycheck Protection Program (PPP) loan funds and using those funds for personal expenses, including an alpaca farm in Vermont.

Dana L. McIntyre, 57, of Grafton, Vt. and previously of Beverly and Essex, Mass., was charged in a criminal complaint with one count of wire fraud and one count of money laundering. McIntyre will make a virtual initial appearance in federal court in Boston this afternoon.

McIntyre is the former owner of Rasta Pasta Pizzeria in Beverly. As alleged in the complaint, in April 2020, McIntyre submitted a fraudulent application for a PPP loan of over $660,000 through a Small Business Administration (SBA) approved lender. In the application, McIntyre allegedly inflated information about the pizzeria’s employees and payroll expenses and falsified an official tax form in an effort to qualify the business for a larger loan amount. McIntyre allegedly reported that the pizzeria employed nearly 50 individuals; however, records indicate that the business paid fewer than 10 employees at any time before or after McIntyre submitted the loan application.

The complaint further alleges that, after receiving a PPP loan of over $660,000, McIntyre sold the pizzeria and used nearly all the funds for personal expenses, including to purchase and upgrade a farm in Vermont as well as to buy several alpacas, at least two vehicles and weekly airtime for a cryptocurrency-themed radio show among other expenses.

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP.

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. The charge of money laundering 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 value of the criminally derived property. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office made the announcement today. Assistant U.S. Attorneys David M. Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit and Carol Head of Mendell’s Asset Recovery Unit are prosecuting the case.

Information about allegations of attempted fraud involving COVID-19 can be reported by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) hotline by phone (1-866-720-5721) or via an online reporting form available at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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