District of Rhode Island

WASHINGTON – The Justice Department announced today that it has reached an agreement with Vincent Porcaro Inc. (VPI) resolving allegations that the company violated the anti-discrimination provision of the Immigration and Nationality Act (INA).  VPI is a Rhode Island company that provides warehousing, distribution, light assembly and packaging for regional, national and international companies.

The department’s investigation was initiated based on a referral from U.S. Citizenship and Immigration Services (USCIS).  The department’s investigation found that VPI, beginning in October 2012, required non-citizens to present specific U.S. Department of Homeland Security-issued documents to establish their identity and work authorization while not making similar requests of U.S. citizens. The INA’s anti-discrimination provision prohibits employers from discriminating against noncitizens in the employment eligibility verification process by demanding more or different documents than U.S. citizens are required to present.

Under the settlement agreement, VPI agreed to provide training to its human resources personnel on the INA’s anti-discrimination provision, pay $43,092 in civil penalties to the United States, create a $30,000 back pay fund to compensate individuals who suffered economic injuries as a result of VPI’s documentary practices, and be subject to monitoring by the department for a period of two years.
   
“Employers who create or change their employment eligibility verification policies and practices have an obligation to ensure that those changes are consistent with the anti-discrimination provision of the INA,” said Gregory Friel, Deputy Assistant Attorney General for the Civil Rights Division.  “The division is committed to identifying and addressing employer policies and practices that do not satisfy that obligation.”

The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA.  The case was handled by Trial Attorney Liza Zamd.  For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TTY for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TTY for hearing impaired), sign up for a no-cost webinar at http://www.justice.gov/crt/about/osc/webinars.php, email osccrt@usdoj.gov or visit the website at www.justice.gov/crt/about/osc.

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PROVIDENCE, R.I. –Cristian Jimenez, a/k/a Alacran, 32, of Providence, faces between ten years to life in federal prison at sentencing after a federal court jury on Monday convicted him of one count of conspiracy to possess and distribute heroin and three counts of possession and distribution of heroin, announced Unites States Attorney Peter F. Neronha, Richard DesLauriers, Special Agent in Charge of the FBI’s Boston Field Office; and John J. Arvanitis, Special Agent in Charge of the  Drug Enforcement Administration’s New England Field Division.

Jimenez was one of eleven individuals identified by law enforcement as being members of a Dominican organization that trafficked heroin into Rhode Island. The other 10 individuals charged and arrested in this matter previously pled guilty in U.S. District Court in Providence.
The jury acquitted Jimenez of one count of possession of a firearm in furtherance of drug trafficking crimes.

An investigation by the Federal Bureau of Investigation Safe Streets Gang Task Force, and the Drug Enforcement Administration Drug Task Force, Rhode Island State Police and local law enforcement officers assigned to the task forces resulted in the execution of federal search warrants and arrest warrants in May 2012 in Providence, Cranston, North Providence, Pawtucket, and West Warwick, R.I. More than three kilos of heroin, approximately 200 grams of cocaine, approximately $450,000 in cash, a substantial quantity of high-end jewelry, five firearms - four of them loaded, and twelve vehicles - several of which contained “hides” were seized by law enforcement.

According to the government’s evidence presented at trial, on numerous occasions Jimenez bought and sold significant quantities of heroin and directed the packaging and distribution of the drugs. The government’s evidence showed that Jimenez’s Providence residence was one of the primary locations used by the drug trafficking organization to package and distribute significant quantities of heroin.

Jimenez, who has been detained since his arrest on September 26, 2012, is scheduled to be sentenced by U.S. District Court Judge William E. Smith on September 13, 2013.

The case was prosecuted by Assistant U.S. Attorney Adi Goldstein and First Assistant U.S. Attorney Kenneth P. Madden.

The FBI’s Safe Streets Gang Task Force consists of agents and law enforcement officers from the FBI; Providence, Cranston and Woonsocket Police Departments and the Rhode Island National Guard.

The DEA Drug Task Force consists of agents and law enforcement officers from the DEA, Rhode Island State Police, and the Cranston, East Providence, Pawtucket, Providence, Warwick, Newport, and Woonsocket Police Departments.

Agents from the U.S. Department of State Diplomatic Security Service and Internal Revenue Service Criminal Investigation also played significant roles in the investigation.

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PROVIDENCE, R.I. – Elvy Gomez, 39, of Providence, a former employee of Bank of America, has pleaded guilty in federal court in Providence to embezzling more than $95,000 from stolen federal tax checks. Gomez admitted to the court that he used his position at the bank to access a dormant checking account which he used to deposit stolen treasury checks and then withdraw the funds. Gomez pleaded guilty to one count each of theft of government property, forging an endorsement on treasury checks and money launderings.

Gomez’s guilty plea was announced by United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of the Boston Field Office of Internal Revenue Service, Criminal Investigation (IRS-CI).

According to information presented to the court, an investigation by IRS-CI determined that in January 2011, Gomez use his position as an employee of the bank to access a dormant checking account of an individual who moved to the Dominican Republic in 2009. He also obtained an ATM card in that person’s name. Gomez admitted that between April 2012 and August 2012, he deposited fourteen stolen treasury checks totaling $95,559 into the bank account and then withdrew the funds for his own personal use.

At sentencing, Gomez faces up to 10 years in federal prison; 3 years of supervised release and a fine of up to $250,000 on each charge. He is scheduled to be sentenced by U.S. District Court Chief Judge Mary M. Lisi on September 6, 2013.

The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.

Agents from the U.S. Secret Service assisted in the investigation of this matter.

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PROVIDENCE, R.I. – A federal court jury in Providence, R.I., on Wednesday convicted Alvin Pennue, 32, of Indianapolis, Ind., with passing altered United States currency on two occasions and inducing a victim to transport $5,000 from Massachusetts to Rhode Island as part of a Black money scam, announced United States Attorney Peter F. Neronha and Brian S. Deck, Acting Resident Agent in Charge of the Providence Office of the United States Secret Service.

Black money scams are schemes to defraud whereby individuals attempt to obtain money from a victim by persuading that person that large quantities of banknote-sized paper are really U.S. currency that has been dyed black, typically to avoid detection by customs agents. The victim is persuaded, with the prospect of sharing in the proceeds, to supply real currency to purchase supplies and otherwise facilitate a chemical transformation that will remove the black dye covering the supposedly genuine currency. In reality, except for a few genuine currency bills used to advance the scheme, the black money is usually black construction paper.

The government’s evidence, presented to the jury during two days of testimony, showed that during October 2011, Alvin Pennue, through another person, passed to an undercover U.S. Secret Service agent two blackened U.S. $100 bills and passed to a victim two blackened $20 bills. Mr. Pennue persuaded the victim to withdraw $5,000 in $100 bills from his bank account in Massachusetts on October 21, 2011, and to bring that money to Providence to invest in the black money scam. 

At the time of his arrest on October 28, 2011, Mr. Pennue and a second person were in possession of a black suitcase containing supplies used to facilitate a black money scam. Mr. Pennue was also in possession of over $2,700, including twenty-three $100 bills.

Alvin Pennue was convicted of two counts of passing altered obligations of the United States and one count of interstate transportation of stolen property - inducing a victim to transport U.S. currency in interstate commerce as part of a scheme to defraud.

Passing altered currency is punishable by up to 20 years in federal prison; up to 5 years supervised release; and up to a $250,000 fine.  Inducing interstate transportation of money for fraud is punishable by up to 10 years in federal prison; up to 3 years of supervised release; and up to a $250,000 fine. 

Pennue, who was detained following the verdict, is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr. on September 4, 2013.

Arrests warrants have been issued for two co-defendants in this matter, Saah Johnson, 36, of Fall River, Mass., and Anthony Chadheen, 35, of Providence.

The case was prosecuted by Assistant U.S. Attorney Richard W. Rose and Special Assistant U.S. Attorney Benjamin S. Towbin.

The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Providence Police Department, and the Rhode Island State Fire Marshal’s Office assisted the U.S. Secret Service in the investigation of this matter.

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WASHINGTON – The Justice Department announced today that it has entered into an interim settlement agreement with the State of Rhode Island and the City of Providence that will resolve violations of the Americans with Disabilities Act (ADA) for approximately 200 Rhode Islanders with intellectual and developmental disabilities (I/DD).

This first-of-its-kind agreement addresses the rights of people with disabilities to receive state- and city-funded employment and daytime services in the broader community, rather than in segregated sheltered workshops and facility-based day programs exclusively with other people with disabilities.  The department launched an ADA investigation in January 2013 into Rhode Island’s day activity service system for people with I/DD. The department’s initial investigation found that the majority of people receiving state- and city-funded employment and daytime services through segregated programs can and want to work and receive services in more integrated community settings.  Under the ADA people with disabilities have the right to receive services in the most integrated settings appropriate for them. 

This matter was initially brought to light by an investigation by the U.S. Department of Labor’s Wage & Hour Division, regarding improper subminimum wages being paid to people with disabilities working at TTP.  This week, the Department of Labor revoked TTP’s certificate under the Fair Labor Standards Act Section 14(c).

The Department of Justice’s investigation has initially focused on a private provider, Training Thru Placement (TTP), as one of the largest facility-based employment service providers in the state’s system. The investigation also revealed that the school-based sheltered workshop at the Harold A. Birch Vocational Program at Mount Pleasant High School (Birch), was the point of origin for many people entering TTP.  Since the department began its investigation earlier this year, the state and the city have worked cooperatively with the department to reach an agreement to resolve the violations. 

The department found that the approximately 90 workers with disabilities at TTP were not in the most integrated setting appropriate for them and that the students in the sheltered workshop at Birch were at serious risk of unnecessary placement at TTP following their exit from school.  TTP is located in a residential neighborhood, without easy access to stores, offices or public spaces. People with I/DD typically remain at TTP all day, packaging and labeling medical supplies, wrapping television remote controls in plastic or hand-sorting jewelry.  The typical tenure at TTP is 15 to 30 years.  TTP workers have little or no contact with persons without disabilities. According to TTP’s reports, TTP workers with disabilities make an average hourly wage of $1.57 per hour, with one individual making as little as 14¢ per hour.   

The department found that people with disabilities at TTP are capable of working in real jobs with supports, and participating in activities in the community, such as volunteering, exercising, taking classes, going to museums, plays and sporting events.  Many TTP clients had specifically and repeatedly asked for help to find and be supported in real jobs in the community.  However, the state and city did not respond to their requests and did not make integrated employment services and community-based daytime activities available.  For example, one person with I/DD, who has worked at TTP for approximately 30 years, said that he asked nearly every year to work in a hardware store, yet he was never assessed or received services or supports necessary for him to do so. When asked how he would feel about working in integrated employment, he said, “I’d feel I accomplished something . . . something to be happy about.” 

The sheltered workshop at Birch was also found to discriminate against its approximately 85 students with I/DD because it cultivated, trained and prepared students to work at TTP as adults.  The work that Birch’s students performed in the school’s sheltered workshop was similar to tasks performed by TTP’s service recipients. Students ages 14 to 21 with I/DD would participate in the Birch sheltered workshop for one or two 55-minute periods per day, sometimes to do work for TTP.  At times when the Birch sheltered workshop faced deadlines, some students were removed from their regular classes and spent large portions of their school days in the workshop.  Students were generally denied diplomas and received only “certificates of attendance.”  Students at the Birch sheltered workshop were paid between 50¢ and $2 per hour, or were not paid at all, no matter what job function they performed or how productive they were.   

The school provided virtually no opportunities for students to experience or prepare for real jobs and made direct referrals to adult sheltered workshops as the students neared the end of school.  Because of the lack of integrated opportunities and direct referrals,  invariably, the  students would move on to an adult sheltered workshop,  TTP, after they left school instead of to integrated work places. 

“The Supreme Court made clear over a decade ago that unnecessary segregation of people with disabilities is discriminatory.  Such segregation is impermissible in any state or local government program, whether it be residential services, employment services, or other programs,” said Eve Hill, Senior Counselor to the Assistant Attorney General for Civil Rights. “Unfortunately, the type of segregation and exploitation we found at TTP and Birch is all too common when states allow low expectations to shape their disability programs.  The reforms the state and city will undertake under this interim agreement will support people with disabilities to participate in their communities.  Thanks to the vision and leadership of the State and the City, both the individuals and their communities will benefit.” 

The state has now stopped providing services or funding for new participants at TTP’s sheltered workshop and facility-based day program, and the city has stopped providing services or funding to Birch’s in-school sheltered workshop.  Over the next year, the state and city will provide supported employment services and placements to all adults at TTP and youth in transition from Birch to help them find, get, keep and succeed in real jobs. The services will be designed to help people access jobs in typical work settings where they can interact with non-disabled coworkers and customers, and enjoy the same employment benefits as non-disabled peers.  When individuals are not working, they will have access to integrated day services. 

Under the agreement, individuals will receive supported employment and integrated day services sufficient to support a normative 40 hour work week, with the expectation that individuals will work, on average, in a supported employment job at competitive wages for at least 20 hours per week.

For students leaving Birch, the agreement requires a robust career development and transition planning process to ensure that youth can successfully move into community-based jobs, rather than to segregated settings like TTP.  The department’s statewide investigation of the state’s day activity service system for people with I/DD will continue. The interim agreement is due to the efforts of the following Civil Rights Division staff:  Regina Kline, Sheila Foran,  Justin Park, Lance Simon and Chloe Holzman.

Please visit www.ada.gov/olmstead  to learn more about the Division’s ADA Olmstead enforcement efforts and www.justice.gov/crt to learn more about the laws enforced by the Justice Department’s Civil Rights Division.

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PROVIDENCE, R.I. – Joshua Rojas, a/k/a Joshua Ramos, 19, of Woonsocket, and Victor Burgos, a/k/a Fat Boy, 20, of Providence, have been charged in federal court in Providence with witness tampering in connection with a joint Woonsocket Police Department and Drug Enforcement Administration (DEA) investigation into the alleged trafficking of Fentanyl Acetyl analogue, a Schedule 1 controlled substance.

In addition, Burgos has been charged with one count each of possession with the intent to distribute Fentanyl Acetyl analogue and distribution of Fentanyl Acetyl analogue.

The charges were announced by United States Attorney Peter F. Neronha, Woonsocket Police Chief Thomas S. Carey and John J. Arvanitis, Special Agent in Charge of the DEA’s New England Field Division.

 According to information presented to the court, it is alleged that Rojas and Burgos took threatening actions and made threatening remarks in an effort to intimidate a person cooperating with law enforcement in an investigation into the alleged trafficking of Fentanyl Acetyl analogue.

Burgos, who has been detained for violating terms of his release on a federal criminal complaint issued on May 17, 2013, charging him with distribution and possession with the intent to distribute Fentanyl Acetyl analogue, was charged by way of a federal grand jury indictment returned on June 5, 2013, with one count each of use of threat of physical force against a person with the intent to influence, delay or prevent the testimony any person in an official proceeding; distribution of Fentanyl Acetyl analogue; and possession with the intent to distribute Fentanyl Acetyl analogue.

Burgos is scheduled to be arraigned on June 11, 2013. If convicted, Burgos faces a maximum sentence of up to 20 years in federal prison on each charge.

Rojas, who was charged by way of a federal criminal complaint on June 4, 2013, with one count of intentionally harassing another person and thereby attempting to hinder, delay, prevent or dissuade any person from attending or testifying in an official proceeding, was ordered detained following an initial appearance before U.S. District Court Magistrate Judge Patricia A. Sullivan.

If convicted, Rojas faces a maximum sentence of up to 3 years in federal prison.

An indictment and a criminal complaint are merely allegations and are not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The cases are being prosecuted by Assistant U.S. Attorney Pamela E. Chin.

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PROVIDENCE, R.I. – Troy L Antley, 44, of Providence, is scheduled to make an initial appearance in U.S. District Court in Providence on June 12, 2013, charged by way of a federal criminal complaint with being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.

 Antley was arrested by Providence Police on June 2, 2013, following a brief but violent struggle with officers after Rhode Island State Police Colonel Steven G. O’Donnell spotted Antley allegedly walking in Providence with a firearm stuck in his waistband.

According to an affidavit in support of a criminal complaint filed with the court, Colonel O’Donnell, unarmed at the time, alerted Providence Police and continued to follow Antley while relaying his observations. Colonel O’Donnell continued to follow Antley as Antley allegedly entered a vehicle and began to drive away from the area.

According to the affidavit, responding officers quickly located and blocked Antley’s vehicle. As they did, Antley allegedly exited the vehicle and fled on foot. Officers chased and quickly apprehended Antley, who allegedly fought with two of the officers while being arrested.

A fully loaded .45 caliber handgun was recovered from the vehicle allegedly driven by Antley. The hammer on the gun was cocked back. An examination of the firearm by ATF revealed that the fiream had been reported stolen.

According to information presented to the court, Antley was previously convicted in R.I. state court on felony charges for robbery, drug trafficking and assault with a dangerous weapon.

The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah

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PROVIDENCE, R.I. – Four men have been arrested on federal drug charges and ordered detained, and six firearms including a suspected automatic weapon were seized by federal, state and local law enforcement agents and officers in connection with a fifteen-month multi-agency investigation initiated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) into the alleged trafficking of cocaine, heroin, Ecstasy and a synthetic drug termed “Molly.” Law enforcement also seized additional amounts of drugs and cash, and discovered an alleged marijuana grow in the home of an individual with a medical marijuana caregiver card authorized by the State of Rhode Island.

According to an affidavit in support of criminal complaints and search warrants filed with the U.S. District Court, the investigation initiated by ATF and investigated jointly with DEA, and assisted by agents and officers from the FBI, Homeland Security Investigations (HSI), United States Marshals Service, Rhode Island State Police and Cranston, Pawtucket, Providence, and Warwick Police Departments determined that the conspiracy was allegedly responsible for a significant quantity of drugs allegedly being trafficked to other drug dealers and to drug users. One of the defendants arrested is an alleged member of a street gang.

The investigation and arrests were announced by United States Attorney Peter F. Neronha; Eugenio A. Marquez, Acting Special Agent in Charge of the Boston Field Office of ATF; John J. Arvanitis, Special Agent in Charge of the DEA’s New England Field Division; Richard DesLauriers, Special Agent in Charge of the FBI’s Boston Field Office; Bruce M. Foucart, Special Agent in Charge of HSI in New England; United States Marshal Jamie A. Hainsworth; Colonel Steven G, O’Donnell, Superintendent of the Rhode Island State Police; Cranston Police Chief Colonel Marco Palombo, Jr; Pawtucket Police Chief Paul King; Providence Police Chief Colonel Hugh T. Clements, Jr.; and Warwick Police Chief Colonel Stephen M. McCartney.

Arrested and ordered detained on Friday by U.S. District Court Magistrate Judges Patricia A. Sullivan and Lincoln D. Almond on charges of conspiracy to distribute controlled substances; distribution of controlled substances; and use of a telephone to commit drug offenses were:

• Salee Yang, 29, of Pawtucket, the primary target of investigation. During the investigation, an undercover ATF Agent allegedly purchased a total of 137.1 grams of heroin, 235 grams of cocaine powder, 392.1 grams of crack cocaine, 471.7 grams and 112 pills consisting of a synthetic powdered drug termed “Molly,” and 100 Ecstasy pills directly from Yang for a total of $61,025.  A handgun was seized from Yang. Yang’s Pawtucket residence was among the locations searched by law enforcement.

• Eric Negron, 48, of Pawtucket, according to information presented to the court, a supplier of heroin, cocaine and crack cocaine to Yang. Negron’s residence and a barber shop in Providence where he is employed were among the locations searched by law enforcement.    

• Peter Lietar, 37, of Pawtucket allegedly supplied Ecstasy and a synthetic drug termed “Molly” to Yang. During a search of Lietar’s residence, law enforcement discovered an alleged marijuana grow which was in the process of being harvested. According to information presented to the court, Lietar, who had previously been convicted of armed robbery in Massachusetts, held an expired Rhode Island medical marijuana card and valid Rhode Island medical marijuana caregiver card.  A handgun and a rifle were seized from Lietar.

• Stanz Hun, 25, of Cranston, who, according to information presented to the court, was a customer of Yang and who allegedly operated his own drug trafficking business.  It is alleged that Yang is a member of the 4/5th Mafia and PSB street gang. Law enforcement agents seized from Yang a suspected automatic weapon, two handguns, $600 in cash, and a small amount of marijuana. Hun’s residence was among the locations searched by law enforcement.          

A criminal complaintis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan

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PROVIDENCE, R.I. – Daniel Ferro, 50, of Warren, R.I., arrested by Rhode Island State Police on May 24, 2013, after allegedly confronting two state troopers with a loaded shotgun, was arraigned in federal court in Providence on Thursday on an indictment charging him with one count of being a felon in possession of ammunition. Ferro was indicted by a federal grand jury on May 29, 2013.

The incident allegedly occurred when State Police troopers went to Ferro’s residence to speak with him regarding an ongoing federal law enforcement and Rhode Island State Police investigation into alleged threats and harassment allegedly directed at a former employer.

Ferro’s indictment and arrest was announced by United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police, Robert L. Panella, Special Agent in Charge of the New York Region of the Department of Labor - Office of Labor Racketeering and Fraud Investigations, and Kevin M. Niland, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.

According to information presented to the court, Rhode Island State Police troopers went to Ferro’s residence on May 24, 2013, to speak with Ferro as part of ongoing investigation by the U.S. Department of Labor- Office of Inspector General, the U.S. Postal Inspection Service and the State Police into harassment, threatening communications and frivolous complaints Ferro allegedly directed toward a former employer. The employer fired Ferro in September 2011.

According to information presented to the court, when troopers arrived at Ferro’s residence, they observed Ferro’s car outside the house, a television was on inside the home, and a dog was inside the house.  The troopers knocked on the front door, identified themselves as police and displayed their badges. Ferro failed to answer the door. 

The troopers then knocked on a side door and various windows, repeatedly identifying themselves as police and stating they wanted to speak to Ferro.  After about 5 minutes, Ferro allegedly let the dog out and emerged in the doorway allegedly holding a loaded shotgun.  Ferro was ordered by a trooper to drop the gun. Ferro allegedly ignored the command and retreated into the house.  The troopers retreated, took cover, and contacted Warren Police for backup.  Ferro surrendered when Warren Police arrived on the scene, and a loaded 12 gauge shotgun was seized.

At arraignment before U.S. District Court Magistrate Judge Patricia A Sullivan, a not guilty plea was entered on Ferro’s behalf. Mr. Ferro was released on conditions which include home detention with electronic monitoring, mandatory mental health treatment, and a no – contact order which prohibits Ferro from making any contact with his former employer.

According to court records, Ferro was convicted of felony assault with a dangerous weapon in Rhode Island state court in 1994. 

An indictmentis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Felon in possession of ammunition is punishable by a sentence of up to 10 years in federal prison; 3 years supervised release; and a fine of $250,000.

The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.

The matter is being investigated by United States Department of Labor- Office of Inspector General, U.S. Postal Inspection Service and the Rhode Island State Police, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Warren Police Department.

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PROVIDENCE, R.I. – Ralph M. Mariano, of Warwick, R.I., a former senior systems engineer with the United States Navy’s Naval Sea Systems Command (NAVSEA) in Newport, R.I., and Washington, D.C., pleaded guilty in U.S. District Court in Providence, R.I., today to conspiracy and to defrauding the U.S. Government of between $7 million and $20 million by directing co-conspirators to bill the Navy for work that was never performed, announced Peter F. Neronha, United States Attorney for the District of Rhode Island.

Mariano admitted to the court that from 1999 to 2011, he used his position at NAVSEA to direct Russell Spencer, of  Portsmouth, R.I., a computer software specialist, to submit millions of dollars in fraudulent invoices to Navy contractor Advanced Solutions for Tomorrow (ASFT), a Georgia and Middletown, R.I. company. Mariano admitted to the court that he directed ASFT to pay Spencer the full amount of the false invoices with money ASFT received from the Navy. Mariano admitted that the total amount of government money falsely obtained and paid to Spencer was approximately $17,957,000. The invoices were processed by Patrick Nagle, Chief Financial Officer of ASFT.

At the time of his guilty plea, Mariano admitted to the court that he used a system of codes to direct Spencer to distribute the government funds to Mariano and individuals close to Mariano. Mariano admitted that he himself received $3,081,671 of Navy funds by checks from Spencer. In addition, Mariano admitted to receiving bi-weekly $3,500 cash payments of Navy funds from Spencer from 2004–January 2011.

Mariano admitted to the court that little or no work was ever performed by Spencer in exchange for the government funds Spencer received and distributed at his direction. According to information provided to the court, Spencer provided ASFT and its subcontractors with numerous documents that purported to be work product over the years. Spencer typically provided ASFT with documents that he had taken from his employer, Electric Boat, without its consent. Spencer made cosmetic changes to the documents before submitting them to ASFT.  Despite the fact that Spencer spent very little time making cosmetic changes to these documents, he billed ASFT upwards of $200,000 per month.

Mariano admitted to the court that at his direction, $2,567,028 was paid to his father, Ralph Mariano, Jr., of North Providence, R.I.; $1,692,650 was paid to his brother, Joseph Mariano, and to his companies; $207,900 was paid to a veterinary laboratory company controlled by his sister, Michelle Mariano; $2,446,445 was paid to private entities controlled by Anjan Dutta-Gupta, of Roswell, GA, Chief Executive Officer of now defunct ASFT.

In addition, Mariano admitted to the court that $478,880 in government funds fraudulently obtained was paid to a company owned by Attorney Mary O’Rourke, of Warwick, R.I.  O’Rourke pleaded guilty in U.S. District Court today to one count of theft of government property. O’Rourke admitted to the court that she submitted false invoices to Spencer from 2005–2011, and that she was paid with government funds for work that was never performed.

In addition to pleading guilty to conspiracy and theft of government funds, Ralph Mariano pleaded guilty today to one count of tax evasion. Mariano admitted to the court that from 2006-2009 he failed to report $1,864,910 in income he received from Russell Spencer. Mariano admitted that he owes the IRS $726,650.

Ralph Mariano and Mary O’Rourke are scheduled to be sentenced on September 5, 2013, by U.S. District Court Chief Judge Mary M. Lisi, who presided over today’s change-of-plea hearings.

Anjan Dutta-Gupta, who pleaded guilty on April 28, 2011, to one count of bribery, is scheduled to be sentenced on July 25, 2013, by U.S District Court Chief Judge Mary M. Lisi.

Russell Spencer, who pleaded guilty on July 25, 2012, to one count of conspiracy to commit bribery and on April 19, 2012, to one count of lying to the FBI, is scheduled to be sentenced on July 25, 2013, by U.S District Court Chief Judge Mary M. Lisi.

Patrick Nagle, who pleaded guilty on September 13, 2011, to one count of conspiracy to commit bribery, is scheduled to be sentenced on July 26, 2013, by U.S District Court Chief Judge Mary M. Lisi.

Ralph Mariano, Jr., who pleaded guilty on May 15, 2013 to four counts of tax evasion, is scheduled to be sentenced on August 16, 2013, by U.S. District Court Chief Judge Mary M. Lisi.

The cases are being prosecuted by Assistant United States Attorneys Lee H. Vilker, Terrence P. Donnelly and Dulce Donovan.

This matter was investigated by agents from the Defense Criminal Services, Naval Criminal Investigative Service; Federal Bureau of Investigation; and Internal Revenue Service – Criminal Investigations.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.  The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. 
The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
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PROVIDENCE, R.I. – Christian M. Araujo, a/k/a Christian Sanchez, 46, of Providence, has been ordered detained in federal custody on a charge of possession with the intent to distribute Ecstasy. Araujo was arrested by DEA agents on May 17, 2013, after he allegedly delivered between 2,400 and 3,000 Ecstasy pills with an estimated street value of approximately $30,000 to a person posing as a drug dealer.

Araujo’s arrest was announced United States Attorney Peter F. Neronha and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.

According to an affidavit in support of a criminal complaint filed with the court, it is alleged that beginning in early April 2013, a person assisting DEA agents assigned to the DEA Worcester Tactical Division began discussions with Araujo for the delivery of significant quantities of Oxycodone and Ecstasy tablets. After at least one meeting and several telephone conversations, it is alleged that Sanchez agreed to sell a significant quantity of the pills.

According to the affidavit, on May 16, 2013, DEA agents watched as Sanchez allegedly delivered between 2,400 and 3,000 Ecstasy pills. The alleged transaction occurred in pharmacy parking lot in Pawtucket. Immediately after the alleged transaction was completed, DEA agents detained Sanchez and seized the pills.

Araujo was ordered detained in federal custody following an initial appearance on Friday before U.S. District Court Magistrate Judge Patricia A. Sullivan.

The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.

The DEA Worcester Tactical Division was assisted in the investigation by the R.I. DEA Drug Task Force.

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PROVIDENCE, R.I. – Jorge Daniel Estrada of Providence, R.I., and Angel Feliz of Dorchester, Mass., have been sentenced to lengthy federal prison sentences in connection with the seizure in October 2012 of 19 kilos of heroin, the largest single seizure in Rhode Island, announced United States Attorney Peter F. Neronha; Providence Public Safety Commissioner Steven M. Paré; Providence Police Chief Colonel Hugh T. Clements, Jr.; John J. Arvanitis, Special Agent in Charge of DEA’s New England Field Division; and Rhode Island Attorney General Peter F. Kilmartin.

The seizure of the heroin, valued at approximately $4.5 million, and the arrest of Estrada and Feliz, was prompted by information developed by Providence Police detectives during an on-going investigation into street-level drug dealing. A joint investigation by Providence Police and the DEA Drug Task Force resulted in the seizure of the heroin and the arrest of Estrada and Feliz.

Estrada, who pleaded guilty on January 29, 2013, to one count of possession with the intent to distribute one kilogram or more of heroin, was sentenced on Monday by U.S. District Court Chief Judge Mary M. Lisi to 180 months in federal prison, to be followed by lifetime supervised release.

Feliz, who pleaded guilty on January 29, 2013, to one count of attempting to possess with the intent to distribute one kilogram or more of heroin, was sentenced on May 10, 2013, by U.S. District Court Chief Judge Mary M. Lisi to 70 months in federal prison, to be followed by 3 years of supervised release.

According to information presented to the court, an individual previously arrested by Providence Police for the alleged possession of narcotics agreed to cooperate with law enforcement to arrange controlled deliveries of heroin. Two deliveries of a kilo of heroin took place on the evening of October 23, 2012, and on the following afternoon, witnessed by a team of law enforcement agents and officers from the DEA Drug Task Force and Providence Police. The drugs were quickly seized by law enforcement.

Later in the day on October 24, 2012, the informant received a call and was provided with a location to meet with a person who would be traveling from Massachusetts to Rhode Island to pick-up the two kilos of heroin. Law enforcement provided the informant with two fake kilos of heroin and watched as the delivery was made.

A search of Estrada’s Providence residence resulted in the seizure of an additional 17 kilos of heroin, a drug ledger, approximately $4,000 in cash, a money counter, various items used in the packaging of heroin, ammunition, and a sophisticated surveillance system. In addition, Estrada possessed a loaded handgun, ski mask and gloves, which were located in a sophisticated hidden compartment in the first vehicle used by Estrada to deliver a kilogram of heroin.

The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.

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PROVIDENCE, R.I. – Michael Brier, 50, owner of Refunds Now Inc., a tax preparation firm based in Providence, R.I., was sentenced on Friday to 27 months in federal prison for violating a federal judge’s order permanently barring him from preparing tax returns for others, and for underreporting more than $1.1 million dollars in income between 2004 and 2009, and failing to pay nearly $400,000 in federal taxes, announced United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of the Boston office of the Internal Revenue Service (IRS), Criminal Investigation.

At sentencing, U.S. District Court Chief Judge Mary M. Lisi also ordered Brier to serve 3 years of supervised release upon completion of his prison term and to pay back taxes to the IRS in the amount of $399, 424. Brier pleaded guilty on February 11, 2013, to one count of criminal contempt and one count of tax evasion.

In November 2010, the court entered a preliminary injunction against Brier and his employees after finding that at least 300 tax returns prepared by Brier and Refunds Now understated customers’ tax liabilities, and that Brier and his employees fabricated tax deductions and credits on the returns. Brier and his employees prepared approximately 24,000 federal income tax returns between 2003 and 2007. An IRS examination 350 of those returns determined that 92 percent of them required adjustments, resulting in a government-estimated loss of more than $1.1 million dollars in tax revenue.

On March 7, 2011, U.S. District Court Judge Mary M. Lisi permanently barred Michael Brier and his employees from preparing federal income tax returns for others.

On April 26, 2011, IRS Criminal Investigation agents executed a court-authorized search at Refunds Now and seized copies of tax returns prepared by Brier and several of his employees that were filed after the date of the permanent injunction. 

At the time of his guilty plea, Brier admitted to the court that he underreported his taxable income to the IRS between 2004 and 2009 totaling $1,152,679, and that he underpaid $399,424 in taxes to the IRS.
The case was prosecuted by Assistant U.S. Attorney Richard B. Myrus.

Brier has been ordered to self-surrender by June 4, 2013, to begin serving his prison sentence.

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PROVIDENCE, R.I. – Charlie Rosario, 29, formerly of North Providence, R.I., was sentenced on Wednesday to 96 months in federal prison for conspiracy and trafficking more than 500 grams of cocaine in November 2010, announced United States Attorney Peter F. Neronha; John J. Arvanitis, Special Agent in Charge of the DEA’s New England Field Division; and United States Marshal Jamie A. Hainsworth.

U.S. District Court Judge John J. McConnell, Jr. also ordered Rosario to serve five years of supervised release upon completion of his prison term. Rosario pleaded guilty on September 7, 2012, to a two-count indictment charging him with conspiracy to possess with the intent to distribute more than 500 grams of cocaine and possession with the intent to distribute more than 500 grams of cocaine.

According to information presented to the court at the time of Rosario’s guilty plea, on November 3 and 4, 2011, a person cooperating with law enforcement during an investigation into Rosario’s drug trafficking activities arranged by telephone for the delivery of all of the cocaine Rosario had in his possession in exchange for $24,500. Rosario estimated that he had approximately 850 grams of cocaine in his possession. Rosario arranged for another person to make the delivery to a Cranston residence.

According to information presented to the court, on November 4, 2010, DEA Drug Task Force agents, with the assistance of Cranston Police, arrested Julio Ernesto Soto, 31, of Salem, Mass., as he delivered the cocaine to the Cranston residence. At the time of Soto’s arrest, law enforcement agents seized 832.6 grams of cocaine.

Soto pleaded guilty on February 3, 2011, to a one-count federal indictment charging him with possession with the intent to distribute more than 500 grams of cocaine. He was sentenced on May 27, 2011, by U.S. District Court Judge William E. Smith to 60 months in federal prison, to be followed by four years of supervised release.

Rosario, who moved from the area at the time of Soto’s arrest, was located in Taunton, Mass., and arrested by the U.S. Marshals Fugitive Task Force in June 2011. Rosario has been detained in federal custody since his arrest.

The case was prosecuted by Assistant U.S. Attorney Milind M. Shah

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PROVIDENCE, R.I. – A federal grand jury indictment which names seven individuals and alleges a complex interstate contraband cigarette trafficking conspiracy responsible for the sale of more than $1.2 million dollars of contraband cigarettes in Rhode Island and the loss of more than one million dollars in tax revenue to the state was unsealed today in U.S. District Court in Providence. It is alleged that the cigarettes were bought in Virginia and sold in Rhode Island in convenience stores and other locations allegedly owned or operated by members of the conspiracy and others. The indictment also alleges that defendants engaged in other types of program fraud, including Social Security and food stamp fraud.

More than a dozen teams of federal and state law enforcement agents and officers early this morning executed federal arrest and search warrants, arresting seven individuals and searching ten locations where a significant quantity of contraband cigarettes, approximately $100,000 in cash, business records and four vehicles, all allegedly connected to the trafficking operation, were seized. The majority of cash and cigarettes seized were discovered stashed in sophisticated hides in several of the locations.

The indictment was announced by Peter F. Neronha, United States Attorney for the District of Rhode Island; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; Richard DesLauriers, Special Agent in Charge of the FBI in New England; William P. Offord, Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigation; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in New England; Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations; and William G. Squires, Special Agent in Charge of the U.S. Department of Agriculture Office of Inspector General.

“United States Attorney Peter F. Neronha noted, “As alleged, today’s indictment has taken down a wide-ranging, complex interstate criminal enterprise. Members of this enterprise, often under the cloak of purportedly legitimate businesses, used any means possible to steal more than a million dollars from Rhode Island taxpayers. The means varied - cigarette smuggling and corresponding evasion of Rhode Island cigarette taxes, social security fraud, and food stamp fraud – but the result was the same.”

United States Attorney Neronha added,” I want to thank the many outstanding Rhode Island State Police Detectives and the federal agents who tirelessly investigated this matter for many, many months. Our work to defeat this type of fraud continues on many fronts. There is certainly more to come.”

Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police added, “The coordinated effort between State, Federal and local law enforcement resulted in today's arrests. The Rhode Island State Police will continue to target any organized criminal group that profits by taking advantage of a system set up to help those who truly need it.  I commend all law enforcement officers, prosecutors and linguists who participated in this long-term investigation.”

The indictment charges Wissam Khalil, 40, of Central Falls, a Providence convenience store owner; his brothers Bassam Khalil, 48, and Najd Khalil, 25, of Pawtucket; Abdullah Alnahas, 36, of Cranston, a Providence convenience store owner; Bassam Kiriaki, 45, a Pawtucket accountant; and Richard Larrain, 23, of Providence, an enlisted soldier in the U.S. Army Reserves, with allegedly participating in a conspiracy to possess, transport and distribute contraband cigarettes in Rhode Island.

A seventh defendant, Valeria Mendez (Khalil), 30, of Central Falls, wife of Wissam Khalil, is charged with conspiring to make and making false statements to a government official.

According to the indictment and/or information presented to the court, it is alleged that the conspiracy, which allegedly began as early as July 2011, included the creation of several “shell” corporations in Virginia and the rental of vacant retail storefronts in Virginia for the stated purpose of purchasing and reselling cigarettes in Virginia. The cigarette packages purchased included Virginia tax stamps, reflecting a Virginia tax of thirty-five cents per package.

According to information presented to the court, between July 2011 and continuing until this week, more than 30-thousand cartons (6 million) of cigarettes valued at more than $1.2 million dollars were purchased in Virginia and shipped to Rhode Island in a truck bearing Rhode Island War Veteran Plates. It is alleged that on numerous occasions the truck was driven by Richard Larrain, while wearing his United States Army uniform. It is alleged that he wore his Army uniform in an effort to gain favor and avoid law enforcement detection.

It is alleged that the cigarettes were distributed and sold in Rhode Island at or near full-retail price, including a tax payment of $3.50 per package. It is alleged that the lack of payment of the cigarette tax to the state of Rhode Island resulted in a loss of approximately $1.05 million dollars of tax revenue.
The indictment alleges that as part of the investigation, on March 30, 2013, Najd Khalil was stopped by Virginia State Police as he allegedly drove from Rhode Island to Virginia in a rental vehicle in which he allegedly concealed $30,000 in cash. It is alleged that the cash, seized by Virginia State Police, was to have been used to purchase cigarettes in Virginia for resale in Rhode Island.  The indictment alleges that Bassam Kiriaki, Wissam Khalil and Richard Larrain conspired to create a false IRS Form 8300, “Report of Cash Payment over $10,000 Received in Trade of Business,” which they allegedly backdated to March 25, 2013, and provided to Virginia State Police in an effort to persuade Virginia State Police to return the $30,000.

The indictment also alleges that between February 7 and February 26, 2013, Bassam and Wissam Khalil allegedly conspired to make false statements to a customer service representative of the U.S. Social Security Administration about the travel of their father. It is alleged that they conspired to make false statements that their father had not traveled outside the United States for a calendar month or thirty consecutive days since February 1, 2011. Information presented to the court alleges that the father, who collects Social Security disability benefits, had actually resided outside the United States.

It is also alleged in the indictment that Wissam Khalil and Valeria Mendez (Khalil), 31, of Central Falls, wife of Wissam Khalil, conspired to make false statements to a program specialist of the U.S. Department of Agriculture (USDA) Food and Nutrition Service, stating that Valeria Mendez was not related to Wissam Khalil. On March 7, 2012, Valeria Mendez allegedly completed a Supplemental Nutrition Assistance Program Application for a Providence convenience store identifying herself as the owner. She left blank questions about her relationship, if any, to the previous two owners, Wissam Khalil and his father. When questioned by a USDA program specialist, Valeria Mendez allegedly denied knowing Wissam Khalil and allegedly stated that she resided with her parents in Providence.

An indictmentis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The case is being prosecuted by Assistant U.S. Attorney William J. Ferland

The matters charged in the indictment were investigated by the Rhode Island State Police, Federal Bureau of Investigation, Internal Revenue Service Criminal Investigations, United States Social Security Administration Office of Inspector General – Office of Investigations, Homeland Security Investigations, and the U. S. Department of Agriculture Office of Inspector General.

United States Attorney Peter F. Neronha also acknowledged and thanked the Virginia State Police, the Virginia Department of Attorney General, the Virginia Division of Taxation, the Rhode Island Department of Attorney General, the Rhode Island Division of Taxation – Excise Tax Compliance Unit, and the Cranston and Providence Police Departments for their assistance in this investigation.

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PROVIDENCE, R.I. – Casey J. Dunphy, 38, of Providence, was ordered detained in federal custody on April 11, 2013, following an initial appearance in federal court on firearms and drug charges, announced United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr., and Eugenio A. Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Boston Field Office.

Dunphy was arrested on March 22, 2013, by detectives with the Providence Police Department’s Narcotics and Organized Crime Bureau after a court authorized search of his residence resulted in the seizure of 34 marijuana plants;  containers and bags containing approximately 750 grams of marijuana; a semiautomatic assault rifle and ammunition, including two fully loaded and four unloaded magazines; a .44 caliber revolver loaded with hollow point ammunition; a shotgun; additional ammunition for each weapon, including a speed loader for the .44 caliber revolver; and $15,500 dollars in cash.

Dunphy is charged with one count each of manufacture of marijuana, possession with intent to distribute marijuana, being a felon in possession of a firearm, possession of firearms in furtherance of drug trafficking, and possession of a semiautomatic assault weapon in furtherance of drug trafficking.

According to information provided to the court, Dunphy, a licensed medical marijuana caregiver, was serving a 5-year probationary term on a previous drug trafficking conviction in state court at the time of his arrest. Dunphy has been detained since his arrest.

According to an affidavit in support of a criminal complaint filed with the court, on March 22, 2013, detectives with the Providence Police Department’s Narcotics and Organized Crime Bureau observed an alleged drug transaction between Dunphy and another person while the two were inside a vehicle parked in front of Dunphy’s residence. According to the affidavit, after Dunphy returned to his residence, detectives followed the vehicle and stopped it a short distance away. The driver allegedly admitted to detectives that he had just bought marijuana from Dunphy, and that he had done so previously on multiple occasions. The individual allegedly told detectives that he is not enrolled as a medical marijuana patient.

A criminal complaintis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Manufacture of fewer than 50 marijuana plants is punishable by a maximum sentence of 5 years in federal prison and 3 years supervised release; possession with intent to distribute less than 50 kilograms of marijuana is punishable by a maximum sentence of 5 years in federal prison and 3 years supervised release; being a felon in possession of a firearm is punishable by a maximum sentence of 10 years in federal prison and 3 years supervised release; possession of firearms in furtherance of drug trafficking is punishable by a mandatory minimum sentence of 5 years in federal prison, to be served consecutive to all other sentences imposed, and 3 years of supervised release; and possession of a semiautomatic assault weapon in furtherance of drug trafficking is punishable by a mandatory minimum sentence of 7 years in federal prison, to be served consecutive to all other sentences imposed, and 3 years of supervised release. 

The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.

The matter was investigated by the Providence Police Department’s Narcotics and Organized Crime Bureau and ATF.

 

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PROVIDENCE, R.I. – Edmond Paolucci, 54, of Coventry, RI, was sentenced today to 33 months in federal prison for his participation in an international conspiracy to import and distribute prescription drugs and anabolic steroids, announced United States Attorney Peter F. Neronha and Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigation.

U.S. District Court Judge John J. McConnell, Jr., also ordered Paolucci to serve three years of supervised release upon completion of his prison term. Paolucci pleaded guilty on November 28, 2012, to one count each of conspiracy to distribute steroids, possession with the intent to distribute steroids, distribution of a misbranded drug, and two counts of money laundering.

Patrick Cunningham, 44, of Cranston, a co-defendant in this matter, pleaded guilty on March 12, 2013, to one count each of conspiracy to distribute steroids and distribution of a misbranded drug. He is scheduled to be sentenced on May 28, 2013.

At the time of his guilty plea, Paolucci admitted to the court that he participated in a conspiracy to repackage the illegal drugs and sell them under various names and labels to consumers who placed orders via the Internet. A significant portion of the proceeds realized from the sale of the illegal drugs was laundered back to individuals in Israel.

According to information presented to the court, an investigation by the Rhode Island FDA Task Force revealed that from at least November 2009 until November 2011, Mr. Paolucci served as a U.S. confederate of an Israeli-based, international drug distribution ring that was also responsible for the manufacture and sale of prescription drugs, including drugs bearing the underground brand names Sciroxx and Xsorox in the United States and elsewhere. 

According to information presented to the court, various misbranded prescription drugs as well as bulk quantities of pills and injectable oil-based drugs were shipped from Israel, Turkey and Bulgaria to postal boxes in Rhode Island, Massachusetts and Connecticut. Through his co-conspirators in Rhode Island, including Patrick Cunningham, Mr. Paolucci used an underground laboratory to repackage the drugs into retail-size pill packets and 10 ml vials, bearing Sciroxx and Xsorox labels that he then shipped to customers in the United States who had made purchases on websites operated by Mr. Paolucci and his Israeli co-conspirators. A significant portion of the proceeds from the sale of the misbranded drugs was sent back to co-conspirators in Israel.

According to information presented to the court, records obtained from money transfer service companies showed that from February 2009 to September 2011 Mr. Paolucci transferred in excess of $76,000 in proceeds from steroid and prescription drug sales to individuals in Israel. 

The cases are being prosecuted by Assistant U.S. Attorney Richard B. Myrus.

A task force led by the Food and Drug Administration, Office of Criminal Investigations, conducted the investigation. The task force partnerships include the Drug Enforcement Administration, Internal Revenue Service, Criminal Investigation, U.S. Postal Inspection Service, Homeland Security Investigations, Rhode Island State Police, North Providence Police, East Providence Police, and the Rhode Island National Guard.

United States Attorney Peter F. Neronha and Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration’s Office of Criminal Investigation, acknowledged the assistance of international counterparts at the Israel Ministry of Health, Division of Enforcement and Inspection, and Jerusalem Customs and VAT who provided significant assistance in the investigation of this matter.

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PROVIDENCE, R.I. – Carlos Gonzalez, 42, of Pawtucket, R.I., was sentenced today to 168 months in federal prison for possession with the intent to distribute one kilo or more of heroin, announced United States Attorney Peter F. Neronha. Gonzalez was arrested by federal agents in January 2012, shortly after he accepted delivery of a parcel which had contained a large quantity of heroin stashed inside a pair of flat screened monitors shipped from Venezuela to his Pawtucket residence.

At sentencing, U.S. District Court Judge William E. Smith also ordered Gonzalez to serve five years of supervised release upon completion of his prison term. Gonzalez pleaded guilty on August 30, 2012, to possession with the intent to distribute one kilogram or more of heroin.

According to information presented to the court, on January 20, 2012, Customs and Border Protection (CBP) agents in Miami selected the parcel for intensive exam based on anomalies observed when x-rayed. A certified drug dog also alerted to the package.  Agents opened the package and discovered two flat screen monitors which emitted a strong chemical odor.  One of the monitors was opened to reveal a light brown substance which field tested positive for heroin. 

The parcel was re-packaged to its original state for a possible controlled delivery to Gonzalez at his Pawtucket residence. CBP agents forwarded the parcel to Homeland Security Investigations agents in Rhode Island who removed the heroin from the package and replaced it with a representative sample of heroin.         

According to information presented to the court, on January 26, 2012, an undercover U.S. Postal Inspection Service agent delivered the parcel to Gonzalez at his residence. Gonzalez acknowledged to the agent that he was expecting the package, then signed for it and accepted delivery. A short time later, as he attempted to drive away from the area, Gonzalez was detained in a traffic stop and was returned to the apartment by uniformed Rhode Island State Troopers.  He was not in possession of the subject parcel when he was stopped.  After Gonzalez was returned to his residence, agents searched the apartment and recovered the package containing the flat screen monitors.

The suspect heroin was tested at the DEA Regional Laboratory in New York.  It tested positive for 1.322 kilograms of heroin.

The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.

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PROVIDENCE, R.I. – Denny Mendoza, 38, formerly of Providence, was sentenced today to 18 months in federal prison for failing to register as a sex offender, announced United States Attorney Peter F. Neronha and United States Marshal Jamie A. Hainsworth.

At sentencing, U.S. District Court Judge John J. McConnell, Jr. also ordered Mendoza to serve 10 years of supervised release upon completion of his prison term. Mendoza pleaded guilty in October 2012 with violating the Sex Offender Registration and Notification Act (SORNA).

SORNA provides a comprehensive set of federal standards for sex offender registration and notification in the United States through a nationwide network of sex offender registration and notification programs. Additionally, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school, and to make periodic in-person appearances to verify and update their registration information.

According to information presented to the court, Mendoza, who had registered as a sex offender in September 2010 while living in Providence, failed to notify authorities when he moved to locations in Fall River and Chelsea, Mass., beginning in May 2011.

Mendoza was arrested on November 8, 2011, in Chelsea, Mass., by members of the U.S. Marshals led Sex Offender Task Force (SOLEMN) and Chelsea detectives. 

The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.

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PROVIDENCE, R.I. – Richard Scialo, 58, owner and operator of Personal Touch, a Providence based home and business cleaning service, pleaded guilty in federal court in Providence today to attempting to evade the payment of more than $180,000 in federal taxes by underreporting taxable income he claimed was cash “gifts” from some of his clients for whom he provided cleaning services.

According to information presented to the court, despite being warned during a routine IRS audit in 2008 that all income generated by his business was taxable, including cash “gifts” provided by clients for services rendered by his company, Scialo failed to accurately report income generated by his business through tax year 2009. A further investigation by IRS agents revealed that Scialo failed to accurately report his business’ taxable income for tax years 2004 – 2009, and that he failed to pay $181,417 in federal taxes.

Scialo’s guilty plea to one count of attempted tax evasion was announced by United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigation.

Scialo is scheduled to be sentenced by U.S. District Court Chief Judge Mary M. Lisi on July 19, 2013. Attempted tax evasion is punishable by up to five years in federal prison; 3 years supervised release; and, a fine of $250,000. According to a plea agreement filed in this matter, Scialo has agreed to pay restitution to the IRS in the amount of $181,417.

The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.

The matter was investigated by Internal Revenue Service, Criminal Investigation

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PROVIDENCE, R.I. – Anthony Cucinotta, 28, of Johnston, R.I., was sentenced in U.S. District Court in Providence today to 48 months in federal prison and fined $5,000 for growing marijuana in his home with the intent to sell it, and being a felon in possession of a semi-automatic pistol and an assault rifle, announced United States Attorney Peter F. Neronha and Eugenio A. Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Boston Field Office.

U.S. District Court Judge William E. Smith also ordered Cucinotta to serve 3 years of supervised release upon completion of his prison term. Cucinotta pleaded guilty on October 23, 2012, to one count of possession of marijuana with the intent to distribute and two counts of being a felon in possession of a firearm. Cucinotta had previously been convicted in Rhode Island state court of a felony offense punishable by a term of imprisonment of greater than one year.

At the time of his guilty plea, Cucinotta admitted to the court that on November 25, 2011, he accompanied his girlfriend to a gun shop in Rhode Island where they selected two firearms for purchase, a Glock 9mm semi-automatic pistol and a Bushmaster .223  caliber military assault style rifle, and a 100 round ammunition drum magazine for the assault rifle. Cucinotta failed to disclose his previous felony conviction and told the dealer that there was no legal reason why he could not possess firearms. Cucinotta, nonetheless, had his girlfriend act as a straw-purchaser for him and complete the paperwork for the transaction. On later dates, Cucinotta admitted to an employee of the gun shop and to an ATF agent that the firearms were his.

According to information presented to the court, on February 14, 2012, ATF agents conducted a court authorized search of Cucinotta’s home and seized the Glock 9mm semi-automatic pistol, twenty-one marijuana plants, and items used in the packaging and sale of marijuana. Cucinotta had previously turned the assault rifle over to an employee of the gun store, who, at the request of ATF, led Cucinotta to believe that the weapon may be defective. The assault rifle was never returned to Cucinotta.

Cucinotta made an initial appearance in U.S. District Court on February 17, 2012, and was freed on $10,000 unsecured bond. At today’s sentencing hearing, U.S. District Judge William E. Smith ordered Cucinotta to self-surrender by May 15, 2013, to begin serving his prison term.

The firearms and ammunition seized in this matter have been forfeited to the U.S. Government and will be destroyed.

The case was prosecuted by Assistant U.S. Attorneys Milind M. Shah, Stephen G. Dambruch and Paul F. Daly, Jr.

The matter was investigated by agents from ATF, with the assistance of the Johnston Police Department.

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PROVIDENCE, R.I. – Moises Tronilo, 27, of Providence, was ordered detained today on federal heroin trafficking and firearm charges, announced by United States Attorney Peter F. Neronha and Eugenio A. Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Boston Field Office. Tronilo was arrested on Tuesday by ATF agents following an undercover investigation into Tronilo’s alleged drug trafficking activities.

According to an affidavit in support of an arrest warrant and criminal complaint filed with the court, it is alleged that on four occasions between March 11 and March 22, 2013, Tronilo sold packets containing approximately 5 grams of cocaine in exchange for $300 in cash. Each of the alleged transactions allegedly took place in vehicles in Providence.

According to the affidavit, a fifth transaction occurred on March 27, 2013, and allegedly involved the exchange of a Glock 9mm handgun and $300 in cash for two packets of heroin. ATF agents who monitored the alleged transaction immediately detained Tronilo upon completion of the alleged transaction.

According to the affidavit, ATF agents also executed a court authorized search of Tronilo’s Providence residence on Wednesday and seized a loaded Browning 9mm pistol, approximately 35 grams of heroin, and various items used in the packaging and distribution of heroin.

A criminal complaint filed with the U.S. District Court charges Tronilo with one count each of distribution of heroin; possession with intent to distribute heroin; possession of firearms in furtherance of a drug trafficking offense; and, being a felon in possession of a firearm. Tronilo was ordered detained following an appearance today before U.S. District Court Magistrate Judge Lincoln D. Almond.

A criminal complaintis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

According to information presented to the court, Tronilo was previously convicted in Rhode Island State Court of a felony drug charge punishable by more than one year in prison.

The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.

Providence Police assisted ATF in the investigation of this matter.

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PROVIDENCE, R.I. – Audi Pineda, 39, of Pawtucket, a career offender, was sentenced on Wednesday in U.S. District Court to 120 months in federal prison, having been convicted by federal court jury on October 18, 2012, of conspiracy to distribute and possess with the intent to distribute oxycodone, and possession with the intent to distribute oxycodone.

The sentence was announced by United States Attorney Peter F. Neronha; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) New England Field Division; and, Pawtucket Police Chief Paul King.

During a two-day trial, the government presented evidence to a jury that on August 11, 2011, Pawtucket Police detectives and agents from the DEA Drug Task Force conducted court authorized searches in Pawtucket of a barber shop where Pineda was employed and of his residence.

At the barber shop, a total of 33 oxycodone pills and three cell phones were seized from Pineda and from his work station. A search of Pineda’s residence resulted in the discovery of a hidden compartment built into a basement wall which contained more than twelve grams of cocaine.  In a separate location in a wall near a basement bathroom agents discovered a plastic bag containing $36,000 in U.S. currency. 

The government also presented evidence to the jury of several cell phone text message conversations between Pineda and others on the cell phones seized which detailed drug dealing activities by Pineda.

The jury acquitted Pineda of one count of possession with the intent to distribute cocaine.

At sentencing, U.S. District Court Judge John J. McConnell ordered Pineda to serve three years of supervised release upon completion of his prison term.

The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.

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PROVIDENCE, R.I. – A Providence man who pleaded guilty in U.S. District Court in Providence today to drug and firearm charges could face up to life in federal prison when he is sentenced on June 18, 2013. Henry Lee, 30, was arrested by Providence Police on November 3, 2011, after they discovered crack cocaine and a loaded firearm stashed among children’s toys in Lee’s Providence apartment. A bullet proof vest was also seized from a kitchen closet.

Appearing before U.S. District Court Judge John J. McConnell, Jr, Lee pleaded guilty to one count each of possession with the intent to distribute cocaine base, being a felon in possession of a firearm, and being a felon in possession of body armor.

Lee’s guilty plea was announced by United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.

According to information presented to the court, investigators assigned to the Providence Police Department’s Narcotics and Organized Crime Bureau culminated an investigation into Lee’s drug dealing activities with the execution of a court authorized search of Lee’s residence on November 3, 2011. During the search, investigators discovered several plastic bags containing various amounts and weights of crack cocaine and marijuana stashed in a nightstand drawer in a room with children’s toys. The officers also discovered a loaded .380 caliber handgun and a bag of ammunition stashed inside a “Girl Gourmet” toy cupcake mixer box. Investigators also seized a bullet proof vest from a kitchen closet.

According to information presented to the court, Lee is an armed career criminal who has two prior convictions for serious drug offenses and a conviction for a crime of violence. As an armed career criminal having been charged with being a felon in possession of a firearm, Lee faces up to the maximum statutory penalties of life imprisonment, with a mandatory minimum term of imprisonment of 15 years, a $250,000 fine and a term of 5 years of supervised release. Possession with the intent to distribute cocaine base is punishable by up to 20 years imprisonment, a $1,000,000 fine and 3 years to life supervised release. Maximum statutory penalties for being a felon in possession of body armor are 3 years imprisonment, $250,000 fine, and 1 year supervised release.

If imposed consecutively, the maximum penalties for all offenses to which Lee pleaded guilty are life imprisonment, with a mandatory minimum term of 15 years imprisonment, a fine of $1,500,000, and supervised release for life.           

The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.

The matter was investigated by the Providence Police Department with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.

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PROVIDENCE, R.I. – Corey Kidd, 31, formerly of Warwick, was sentenced today to 30 months in federal prison for failure to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA), announced United States Attorney Peter F. Neronha; United States Marshal Jamie A. Hainsworth; and, Warwick Police Chief Colonel Stephen M. McCartney.  

At sentencing, Kidd was also ordered by U.S. District Court Judge John J. McConnell, Jr. to serve five years of supervised release following his prison term. Kidd pleaded guilty in federal court on September 19. 2012.

According to information presented to the court, Kidd, a level II sex offender, failed to notify police of a change of address when he moved from a Warwick residence sometime prior to March 1, 2012.  Kidd was arrested in Florida on May 31, 2012, on a federal arrest warrant issued by the U.S. District Court in Providence.

Kidd was convicted in Rhode Island state court in November 2000 on a charge of 3rd degree sexual assault. He was sentenced to five years imprisonment, suspended, and five years of probation; and, ordered to register as a sex offender. 

SORNA provides a comprehensive set of federal standards for sex offender registration and notification in the United States through the nationwide network of sex offender registration and notification programs. Additionally, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school, and to make periodic in-person appearances to verify and update their registration information.

The matter was investigated by the United States Marshals and the Warwick Police Department.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.

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PROVIDENCE, R.I. – Abel Perez, 31, of Cranston, was sentenced on Friday to 12 years in federal prison for trafficking heroin, being a felon in possession of a firearm and for use of a firearm in furtherance of drug trafficking, announced United States Attorney Peter F. Neronha and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) New England Field Division.

Perez was arrested in September 2011 by agents and officers assigned to the DEA Drug Task Force following a five-month undercover investigation into Perez’s drug trafficking activities.

At sentencing, U.S. District Court Judge William E. Smith also ordered Perez to serve four years of supervised release upon completion of his prison term. Perez pleaded guilty on February 3, 2012, to one count each of possession with the intent to distribute 100 grams or more of heroin, felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime.

According to information presented to the court, beginning in April 2011, DEA Drugs Task Force agents made several controlled purchases of varying amounts of heroin from Perez. On September 7, 2011, agents detained Perez as he exited his Cranston residence carrying a paper bag which he placed on the front seat of his vehicle. Perez consented to a search of the vehicle and of his two residences in Cranston and Johnston.

From the vehicle, agents seized more than 500 grams of heroin and a loaded .22 caliber semi-automatic handgun from a secret compartment behind the vehicle’s radio. A search of Perez’s residences and a garage turned up additional quantities of heroin, approximately $7,000 in cash, a .357 revolver and an assortment of ammunition. 

U.S. District Court Judge William E. Smith sentenced Perez to 84 months in federal prison for possession with the intent to distribute 100 grams or more of heroin and being a felon in possession of a firearm; and, a consecutive sentence of 60 months in federal prison for possession of firearm in furtherance of a drug trafficking crime.

The case was prosecuted by Assistant U.S. Attorney Adi Goldstein.

The DEA Drug Task Force is comprised of agents and law enforcement officers from the DEA, ATF, IRS, Homeland Security Investigations, Rhode Island State Police and Cranston, East Providence, Pawtucket, Providence, Newport, Warwick and Woonsocket Police Departments.

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PROVIDENCE, R.I. – James W. Snoke, 49, of Foster, was sentenced today to 151 months in federal prison for robbing a Cranston bank while claiming to be armed with an explosive device in November 2011, announced United States Attorney Peter F. Neronha; Cranston Police Chief Colonel Marco Palombo, Jr.; Foster Police Chief Robert E. Coyne, Jr.; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; and Richard Deslauriers, Special Agent in Charge of the FBI’s Boston Field Office.

At sentencing, U.S. District Court Judge William E. Smith also ordered Snoke to serve a consecutive sentence of six months in federal prison for violating the terms of his supervised release after he completed serving a 70 month federal prison sentence imposed in November 2004 for his role as getaway driver during a bank robbery in Providence in February 2004. Snoke was also ordered to serve one year of supervised release upon completion of his most recent prison sentence.

At the time of his guilty plea on May 30, 2012, Snoke admitted to the court that on November 18, 2011, he approached a teller in a Cranston branch office of BankRI demanding that he be given fifties and one hundred dollar bills and no dye packs, while threatening the teller by displaying a device he claimed was a bomb. A second teller was summonsed who placed a quantity of cash inside a black bag provided by Snoke. Snoke fled the bank with the bag which contained $2,365 in cash and the device he claimed was a bomb.

According to information presented to the court, Cranston Police provided a still photograph of the robber obtained from the bank’s surveillance system as part of their investigation to the Rhode Island Department of Corrections. A correctional officer identified the person in the photograph as James Snoke, a former inmate at the state prison.

On November 21, 2011, members of the Cranston Police Department, Foster Police Department and Rhode Island State Police executed a court authorized search of Snoke’s Foster residence. Several pieces of evidence were seized during the search. The next day, Rhode Island State Police located Snoke in East Providence and arrested him. He has been detained since his arrest.

United States Attorney Peter F. Neronha commended the collaboration between law enforcement from the Cranston and Foster Police Departments, Rhode Island State Police and the FBI which led to the arrest and successful prosecution of this defendant.

The case was prosecuted by Assistant U.S. Attorney Stephen G. Dambruch.

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PROVIDENCE, R.I. – Two Rhode Island men have pleaded guilty in U.S. District Court in Providence, R.I., to participating in an international conspiracy to illegally import and distribute prescription drugs and anabolic steroids.

Edmond Paolucci, 54, of Coventry, and Patrick Cunningham, 44, of Cranston, admitted to the court that they participated in a conspiracy to repackage the illegal drugs and sell them under various names and labels to consumers who placed orders via the Internet. A significant portion of the proceeds realized from the sale of the illegal drugs was laundered back to individuals in Israel.

Paolucci and Cunningham’s guilty pleas were announced by United States Attorney Peter F. Neronha; Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigation.

According to information presented to the court, an investigation by the Rhode Island FDA Task Force revealed that from at least November 2009 until November 2011, Mr. Paolucci served as a U.S. confederate of an Israelis-based, international drug distribution ring that was also responsible for the manufacture and sale of prescription drugs, including drugs bearing the underground brand names Sciroxx and Xsorox in the United States and elsewhere. 

According to information presented to the court, various misbranded prescription drugs as well as bulk quantities of pills and injectable oil-based drugs in 650 ml. jugs were shipped from Israel, Turkey and Bulgaria to postal boxes in Rhode Island, Massachusetts and Connecticut. Through his co-conspirators in Rhode Island, including Patrick Cunningham, Mr. Paolucci used an underground laboratory to repackage the drugs into retail-size pill packets and 10 ml vials, bearing Sciroxx and Xsorox labels that he then shipped to customers in the United States who had made purchases on websites operated by Mr. Paolucci and his Israeli co-conspirators. A significant portion of the proceeds from the sale of the misbranded and mislabeled drugs was sent back to co-conspirators in Israel. 

Court authorized searches of Paolucci and Cunningham’s residences resulted in the seizure of a large amount of paraphernalia related to the manufacture and distribution of steroids. Agents also found various non-controlled and controlled drugs including 10 ml vials labeled as containing the anabolic steroids Testosterone, Enanthate, Boldenone, and Trenbolone. 

According to information presented to the court, records obtained from money transfer service companies showed that from February 2009 to September 2011 Mr. Paolucci transferred in excess of $76,000 in proceeds from steroid and prescription drug sales to individuals in Israel. 

Patrick Cunningham pleaded guilty on Tuesday to one count each conspiracy to distribute steroids and distribution of a misbranded drug. The defendant is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr. on May 28, 2013.

Edmond Paolucci pleaded guilty on November 28, 2012, to one count each of conspiracy to distribute steroids, possession with the intent to distribute steroids, distribution of a misbranded drug, and money laundering. The defendant is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr. on April 9, 2013.

Conspiracy to distribute steroids and possession with the intent to distribute steroids is punishable by a maximum sentence of up to 10 years in federal prison; a fine up to $500,000; and a term of supervised release of 2 years to life. Distribution of a misbranded drug and money laundering is punishable by a maximum sentence of up to 3 years in federal prison; a fine of up to $10,000; and a term of supervised release of 2 years.

The case is being prosecuted by Assistant U.S. Attorney Richard B. Myrus.

A task force led by the Food and Drug Administration, Office of Criminal Investigations, conducted the investigation. The task force partnerships include the Drug Enforcement Administration, the Internal Revenue Service, Criminal Investigation, the U.S. Postal Inspection Service, the Immigration and Customs Enforcement, Homeland Security Investigations, the Rhode Island State Police, the North Providence Police, the East Providence Police, and the Rhode Island National Guard.

United States Attorney Peter F. Neronha and Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration’s Office of Criminal Investigation, acknowledged the assistance of international counterparts at the Israel Ministry of Health, Division of Enforcement and Inspection, and Jerusalem Customs and VAT who provided significant assistance in the investigation of this matter.

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PROVIDENCE, R.I. – David Crisostomi, 37, of East Providence, R.I., pleaded guilty in U.S. District Court in Providence on Tuesday to three counts of using a minor to manufacture child pornography, and one count each of possessing and distributing child pornography, announced United States Attorney Peter F. Neronha; Richard Deslauriers, Special Agent in Charge of the FBI’s Boston Field Office; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.

Appearing before U.S. District Court Judge John J. McConnell, Jr., Crisostomi admitted to the court that on at least three occasions he participated in the recording of child pornography with a prepubescent minor. He also admitted to the court that he downloaded and shared child pornography with others.

According to information presented to the court, on January 6, 2012, an undercover agent from the FBI’s Innocent Images Operations Unit observed that a user later identified as David Crisostomi was online and was sharing two folders containing child pornography.  Three days later, an undercover agent observed that Crisostomi was online and was now sharing four folders containing child pornography.

On February 16, 2012, agents from the FBI and the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force executed a federal search warrant at Crisostomi’s residence and seized numerous images and videos depicting child pornography, computers and other electronic devices.

Crisostomi has been detained in federal custody since his arrest on February 16, 2012. He is scheduled to be sentenced on May 29, 2013.

At sentencing, Crisostomi faces a minimum statutory sentence of 15 years imprisonment and up to 30 years imprisonment for using a minor to produce child pornography; a minimum statutory sentence of 5 years imprisonment and up to 20 years imprisonment for distribution of child pornography; and up to 10 years imprisonment for possessing child pornography.

The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc  For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

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PROVIDENCE, R.I. –Rolando A. Rojas, 34, of Providence, was sentenced today to 175 months in federal prison for trafficking crack cocaine. Rojas, a career criminal who was previously convicted on drug trafficking, firearms, felony assault and robbery charges, was convicted by a federal court jury on July 18, 2012, with selling crack cocaine on three occasions to an undercover federal agent.

At sentencing, U.S. District Court Judge John J. McConnell also ordered Rojas to serve eight years of supervised release upon completion of his prison term. Rojas’ sentenced was announced by United States Attorney Peter F. Neronha and Eugenio A. Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Boston Field Office.

At trial, the government presented evidence that Rojas sold an undercover ATF agent nearly 28 grams of crack cocaine on January 10, 2011; two ounces of crack cocaine on February 17, 2011; and approximately four ounces of crack cocaine on March 1, 2011. All of the transactions were electronically recorded.  The jury convicted Rojas on one count of distribution of cocaine base and two counts of distribution of 28 grams or more of cocaine base.

Rojas is awaiting trial in state court on a charge of murder in connection with the October 2010 alleged murder of Alfredo Barros, 20, of Pawtucket. Barros was allegedly shot and killed while he sat in a vehicle stopped at a red light.

The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.

Providence, Central Falls and Pawtucket Police assisted ATF in the investigation of this matter.

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PROVIDENCE, R.I. – Harold Moody, 47, of Providence, was sentenced today to 96 months in federal prison for being a felon in possession of a firearm and possession with the intent to distribute marijuana, announced United States Attorney Peter F. Neronha, Guy N. Thomas, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Boston Field Office, and Providence Police Chief Colonel Hugh T. Clements, Jr.

At sentencing, U.S. District Court Chief Judge Mary M. Lisi also sentenced Moody to serve three years of supervised release following his prison term. Moody pleaded guilty to the charges on December 19, 2012.

According to information presented to the court, Moody failed to disclose numerous felony convictions, including convictions for armed robbery, assault and drug charges, on ATF forms he signed and submitted in April 2012 to a licensed firearms dealer in an attempt to transfer ownership of a Glock .45 caliber pistol to him from an acquaintance. The firearms dealer refused to transfer ownership of the firearm to Moody after determining that Moody was a convicted felon. Moody admitted to the court that he offered a clerk at the firearms dealership $900 in cash in attempt to persuade him to transfer ownership of the firearm. In June 2010, Moody proceeded to have his wife purchase two firearms for him.

According to information presented to the court, an investigation by ATF agents beginning in May 2012 into suspected drug dealing activity by Moody resulted in multiple undercover purchases of marijuana from the defendant. A court authorized search of Moody’s residence on July 31, 2012, by ATF agents and Providence Police, resulted in the seizure of two Glock .45 caliber pistols, more than 58 grams of marijuana and various items used in the distribution of marijuana.

At the time of his guilty plea, Moody admitted to the court that he requested that his wife purchase the firearms from a licensed firearms dealer in June 2012 for protection. Moody also admitted to assisting his wife in making the purchases, and that the firearms belonged to him. In addition, Moody admitted to his drug dealing activities.

Moody has been detained in federal custody since his arrest on July 31, 2012.

The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.

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PROVIDENCE, R.I. – Justin L. Worley, 34, pleaded guilty in U.S. District Court in Providence today to nine counts of bank robbery, announced United States Attorney Peter F. Neronha.

Appearing before U.S. District Court Judge William E. Smith, Worley admitted to the court that he robbed eight financial institutions in Rhode Island between April 16, 2012, and September 18, 2012, and that he robbed one financial institution in Seekonk, Mass., on February 23, 2012. Worley admitted that he robbed the banks of a total of $32,633.

Worley was arrested at a motel in Seekonk on September 19, 2012, by East Providence, R.I., and Seekonk police.

The robberies were investigated by the Barrington, Cranston, East Providence, North Providence, Pawtucket, Seekonk and Warwick Police Departments and the FBI.

Worley is scheduled to be sentenced on May 24, 2013. The maximum statutory penalty for bank robbery is 20 years in federal prison; a fine of up to $250,000; and a term of supervised release of 3 years.

Worley has been detained in federal custody since November 15, 2012.

The case is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Paul F. Daly, Jr.

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PROVIDENCE, R.I. – The United States Supreme Court on Monday denied a petition for writ of certiorari filed by former North Providence solicitor Robert S. Ciresi, announced United States Attorney Peter F. Neronha.

The former town official was seeking a U.S. Supreme Court review of his April 2011 conviction by a federal court jury in Providence on charges of conspiracy, bribery and Hobbs Act Extortion. Ciresi also sought a review of the 63 month federal prison sentence and $10,000 fine imposed on August 3, 2011, by U.S. District Court Chief Judge Mary M. Lisi.

In October 2012, the First Circuit Court of Appeals upheld Ciresi’s conviction for his role as a middle-man in a corruption and kickback scheme run by three North Providence town councilmen.

Former North Providence councilmen Joseph S. Burchfield; Raymond L. Douglas III; and John A. Zambarano pled guilty for their roles in the kickback scheme and are currently serving sentences ranging from 64 to 78 months in federal prison. North Providence businessman Edward Imondi pled guilty to acting as a middle-man in the scheme and was sentenced to serve a 12 month and 1 day federal prison sentence.

The matter was prosecuted in the U.S. District Court in Providence by Assistant U.S. Attorneys John P. McAdams and Terrence P. Donnelly. The case was argued before the First Circuit Court of Appeals by Assistant U.S. Attorney Donald C. Lockhart.

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PROVIDENCE, R.I. – Rafael Lara-Mejia, a/k/a Gabriel Arenas, Martin Muniz Rosado, and Jeffrey Montanez Rivera, a Dominican national living in Providence, was sentenced today to 24 months in federal prison for his role in a scheme to steal and sell the identities and corresponding identity documents of Puerto Rican U.S. citizens, announced United States Attorney Peter F. Neronha.

In December 2012, Lara-Mejia pleaded guilty in U.S. District Court in Providence to one count each of conspiracy to commit identification fraud and conspiracy to encourage an alien to reside in the United States for financial gain. Lara-Mejia was among fifty individuals named in a federal indictment returned on December 29, 2011, in Puerto Rico.

The indictment alleges that conspirators located in the Savarona area of Caguas, Puerto Rico, illegally obtained Puerto Rican identities and corresponding identity documents. Conspirators in various locations throughout the United States (identity brokers) solicited customers, while identity brokers, like Lara-Mejia, sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set.

The indictment alleges that the customers generally obtained the documents to assume the identity of Puerto Rican U.S. citizens in order to, among other things, obtain additional identification documents, such as legitimate state driver’s licenses. Some customers obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.

Appearing before Judge John J. McConnell, Jr. on December 10, 2012, Lara-Mejia admitted to the court that beginning in at least April 2009 and continuing through January 2012, he and his co-conspirators sold personal identifying information, including names, dates of birth, and Social Security numbers of Puerto Rican U.S. citizens to between 25 and 99 undocumented aliens and others residing within the United States, including in Rhode Island. Lara-Mejia also admitted that he and his co-conspirators sold Puerto Rico government-issued issued birth certificates, Social Security cards, driver's licenses and voter registration cards belonging to Puerto Rican U.S. citizens.

Lara-Mejia has been detained since his arrest in Rhode Island on March 27, 2012. He faces deportation proceedings upon completion of his prison term.

The case was prosecuted by District of Rhode Island Assistant U.S. Attorney Richard B. Myrus, and Senior Trial Attorney James Yoon and Trial Attorney Sarah Chang of the Justice Department’s Criminal Division.

The matter was investigated by Homeland Security Investigations; U.S. Postal Inspection Service; U.S. State Department, Diplomatic Security Service; and Internal Revenue Service-Criminal Investigation.

Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft.  Additional resources regarding identity theft can be found at http://www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html; http://www.ssa.gov/pubs/10064.html ; http://www.fbi.gov/about-us/investigate/cyber/identity_theft; and http://www.irs.gov/privacy/article/0,,id=186436,00.html.

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PROVIDENCE, R.I. – Sixteen federal, state and local Rhode Island law enforcement agents and officers, and a federal prosecutor from the United States Attorney’s Office for the District of Rhode Island, were recognized today with a top Department of Justice award for their achievements significantly impacting the trafficking of heroin along the “Heroin Highway.” This notorious stretch of highway, running from I-195 East from Providence, R.I., to Cape Cod, Mass., has been used for many years to transport heroin to street level drug dealers and drug users.

Over the past two years, law enforcement agents and officers from the Drug Enforcement Administration (DEA), the R.I. DEA Drug Task Force, Homeland Security Investigations, Rhode Island State Police, and the Providence, Warwick, East Providence, Newport, Pawtucket and Cranston Police Departments coordinated efforts and employed a variety of techniques to gather intelligence and information to identify heroin drug traffickers operating along the “Heroin Highway.” To date, “Operation Heroin Highway” has resulted in the arrest of 32 individuals, ranging from street level drug dealers to high level Mexican, Dominican and Guatemalan heroin traffickers. Law enforcement has seized more than 5 kilos of heroin, more than 6 kilos of cocaine and assets totaling at least $609,000.

It is believed that the individuals arrested during “Operation Heroin Highway” were supplying as much as 60% of the heroin being distributed along I-195 East from Providence to Cape Cod.

Today, in a ceremony at the United States Attorney’s Office in Providence, United States Attorney Peter F. Neronha; Associate Deputy Attorney General James H. Dinan, Director of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF); John J. Arvanitis, Special Agent in Charge of the  Drug Enforcement Administration’s New England Field Division; and J. Michael Netherland, Deputy Special Agent in Charge of Homeland Security Investigations (HSI), recognized sixteen law enforcement officers and agents and a federal prosecutor by presenting each with the top 2012 New England Regional OCDETF award for outstanding contributions to cooperative law enforcement and to the OCDETF Program.

United States Attorney Peter F. Neronha commented, “People ask, why do we continue this war on drugs?  Because illegal drugs, and especially heroin, ruin people’s lives, and not only the lives of the people using them.  They lay waste to human potential, and cause violent and other crime.  As a result of the outstanding work of the agents, officers, and attorneys being honored today, the major source for heroin distribution in Rhode Island and southeastern Massachusetts has been significantly reduced. Law enforcement at its very best.”

“Heroin destroys individuals, families and communities.  DEA and our partners are committed to dismantling criminal organizations that attempt to flood our neighborhoods with heroin”, said DEA Special Agent in Charge John J. Arvanitis.” We congratulate these agents and officers and prosecutors recognized today for their hard work, dedication and selflessness.  These enforcement successes are a direct result of the combined efforts of DEA, along with our state and local partners.”

"I commend all the federal, state and local law enforcement agents and officers for their tireless efforts to combat drug trafficking in our communities and for receiving this prestigious award," said J. Michael Netherland, Deputy Special Agent in Charge of HSI Boston. "These drug traffickers commit violent crimes and terrorize our neighborhoods. Disrupting and dismantling their activities is a top priority for HSI. As “Operation Heroin Highway” clearly demonstrates, we are committed to working with our law enforcement partners on this important task.”

The OCDETF Program was established in 1982 as a multi-agency, nationwide effort to pursue intelligence-driven, coordinated multi-jurisdictional investigations of criminal organizations trafficking drugs and laundering the illicit proceeds of crime. The OCDETF Program forms the centerpiece of the DOJ counter-narcotics strategy and is also the platform through which the Department of Homeland Security and the Department of the Treasury pursue complex drug and drug-related money laundering investigations.  Through the OCDETF Program, these three Executive Departments use prosecutor-led, multi-agency task forces to combat high-priority national and international organized criminal organizations.

Recognized for their outstanding achievements during “Operation Heroin Highway” and to the OCDETF Program were:

DEA Special Agent Kevin Eaton
DEA Special Agent Dave Carnevale
DEA Special Agent Alex Koumanelis
DEA Special Agent James McCormack
DEA Special Agent Robyn Meletis
DEA Analyst Andrea Metz
DEA Drug Task Force Officer Dennis Smith, Pawtucket Police Department
DEA Drug Task Force Officer Mike Naylor, Newport Police Department
DEA Drug Task Force Officer Robert Page, Warwick Police Department
DEA Drug Task Force Officer Mike Masaitis, East Providence Police Department
DEA Drug Task Force Officer Juan Robles, Providence Police Department
Sgt. Dennis Fleming, Rhode Island State Police
Special Agent Michael Carvalho, Homeland Security Investigations
Det. Darren Ellinwood, East Providence Police Department
Sgt. Diogo Mello, East Providence Police Department
Lt. Russ Henry, Cranston Police Department
Assistant U.S. Attorney Adi Goldstein, Deputy Criminal Chief

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PROVIDENCE, R.I. – Felix Reyes, 20, of Woonsocket, was sentenced today to 60 months in federal prison for possession of crack cocaine with the intent to distribute, announced United States Attorney Peter F. Neronha and Woonsocket Police Chief Thomas S. Carey.

At sentencing, U.S. District Court Chief Judge Mary M. Lisi also ordered Reyes to serve 5 years of supervised release upon completion of his prison term. Reyes pleaded guilty on December 4, 2012, to one count of possession with the intent to distribute cocaine base.

According to information presented to the court, Reyes was arrested by Woonsocket Police in March 2012 following a brief foot chase, after an officer on routine patrol noticed Reyes acting in a suspicious manner. As the officer approached Reyes he fled, discarding a small package which police quickly retrieved. The package contained nearly 39 grams of crack cocaine. Reyes was arrested following a brief struggle.

According to information presented to the court, Reyes was previously convicted in state court on a drug charge, and is currently awaiting trial in state court on drug, assault and weapons charges.

Reyes has been detained since his arrest in March 2012.

The federal drug case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.

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PROVIDENCE, R.I. – Isaiah Gasperini, 30, of Pawtucket, was sentenced today in federal court in Providence to 132 months and one day in federal prison for being in possession of an unregistered machine gun and ammunition, and for violating the terms of supervised release following a lengthy federal prison sentence on a previous federal firearm conviction, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.

Gasperini was sentenced today by U.S. District Court Chief Judge Mary M. Lisi to serve 120 months in federal prison on his most recent conviction for possession of a machine gun and being a felon in possession of ammunition, to be followed by a consecutive sentence of 12 months and one day in federal prison for violating the terms of supervised release for a 2003 conviction on a firearm charge.

In 2003, Gasperini was sentenced to 110 months in federal prison, to be followed by 3 years of supervised release for being a felon in possession of a firearm. Gasperini was on supervised release at the time of his most recent in June 2012.

He pleaded guilty to the most recent charges on November 29, 2012.

According to information presented to the court, at approximately 3 A.M., on June 12, 2012, Providence Police received calls from a residential neighborhood of repeated gun fire. As an unmarked police vehicle approached the area, an officer witnessed a vehicle leaving the area and failing to stop at a stop sign. When the officer attempted to stop the vehicle, it sped up and traveled onto Rte. 95. The vehicle came to a stop several minutes later when it attempted to exit Rte. 95 in Pawtucket and crashed into a truck.

As the officer approached the vehicle, Gasperini fled on foot, but was quickly apprehended and arrested following a brief struggle. Additional officers responded to the area and recovered a loaded 9mm machine gun a short distance from the vehicle, and more than 120 rounds of ammunition, duct tape, gloves and a ski mask from inside the vehicle.

The matter was investigated by Providence Police with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.

The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.

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PROVIDENCE, R.I. – According to documents filed in U.S. District Court in Providence today, Justin L. Worley, 34, has agreed to plead guilty in federal court to robbing eight banks in Rhode Island and one in Massachusetts, announced United States Attorney Peter F. Neronha.

According to court documents, Worley will plead guilty to nine counts of bank robbery. Worley will admit to the court that on nine separate occasions he entered financial institutions, and using implied or explicit threats, including the threat of death in at least four of the robberies, he robbed the banks of a total of $32,633.

According to the documents, Worley will admit to robbing eight financial institutions in Rhode Island between April 16, 2012, and September 18, 2012, and to robbing one in Seekonk, Mass., on February 23, 2012.

Worley was arrested at a motel in Seekonk on September 19, 2012, by East Providence, R.I., and Seekonk, Mass., police.

The bank robberies were investigated by the Barrington, Cranston, East Providence, North Providence, Pawtucket, Seekonk and Warwick Police Departments and the FBI.

The maximum statutory penalty for bank robbery is 20 years in federal prison; a fine of up to $250,000; and a term of supervised release of 3 years.

Worley has been detained in federal custody since November 15, 2012.

The case is being prosecuted by Assistant U.S. Attorneys William J. Ferland and Paul F. Daly, Jr.

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PROVIDENCE, R.I. – Glen Matteson, 52, of Richmond, R.I., a former Chariho High School assistant soccer coach, was sentenced in U.S. District Court in Providence today to 60 months in federal prison on child pornography charges, announced United States Attorney Peter F. Neronha; Richmond Police Chief Elwood M. Johnson, Jr.; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations (HSI).

U.S. District Court Judge John J. McConnell, Jr., also ordered Matteson to serve 10 years of supervised release upon completion of his prison term and to register as a sex offender. Matteson pleaded guilty on November 20, 2012, to one count each of receipt, possession and distribution of child pornography.

According to information presented to the court, on February 19, 2012, Richmond Police received a complaint from a local resident that he had found sexually graphic text messages from Matteson on the cell phone of his 15-year-old son, a soccer player on Matteson’s soccer team.  With the father’s consent, Richmond Police engaged in a series of text message exchanges with Matteson over four days, assuming the identity of the boy. In the context of the sexually explicit texts, Matteson invited the boy to accompany him to a soccer event and offered to transport him.  On February 22, 2012, the morning of the planned meeting, Matteson was arrested by Richmond Police.

According to information presented to the court, after Matteson made certain admissions to Richmond Police to viewing, storing and distributing child pornography images and videos, Richmond Police and law enforcement officers and agents from the Rhode Island Internet Crimes Against Children (ICAC) Task Force executed a court authorized search of Matteson’s cell phone, two home computers, a digital storage device, and his work computer at the ACI. In addition to discovering numerous text messages and emails containing sexually explicit messages, a forensic examination of the equipment by the ICAC Task Force resulted in the discovery of 898 images and 73 videos depicting child pornography.

The case was prosecuted by Assistant U.S. Attorney John P. McAdams.

Matteson was ordered by the court to self-surrender to begin serving his prison sentence on March 12, 2013.

Matteson is awaiting trial in state court on a charge of indecent solicitation of a child.

The ICAC Task Force is a Department of Justice grant-funded program administered by the Rhode Island State Police Computer Crimes Unit. It is comprised of detectives from the Rhode Island State Police and Providence, West Warwick, and Coventry, R.I., Police Departments, and an agent from Homeland Security Investigations. The objective of the RI ICAC is to form strong working relationships between local, state and federal law enforcement to effectively and efficiently prevent, detect, investigate, and prosecute online child exploitation and child pornography crimes.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc  For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

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PROVIDENCE, R.I. – Stephen Hickey, 60, of Warwick, R.I., was released to home confinement with electronic monitoring on unsecured bond following an initial appearance in U.S. District Court in Providence today on a federal charge of possession of child pornography, announced United States Attorney Peter F. Neronha; Kevin M. Niland, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.

Hickey was arrested today by agents from the U.S. Postal Inspection Service and the Rhode Island Internet Crimes Against Children (ICAC) Task Force after, according to an affidavit in support of a criminal complaint filed with the court, a court authorized search of Hickey’s home resulted in the seizure of a computer which allegedly contains images of child pornography.

In addition, according to the affidavit, Hickey allegedly told investigators that he previously ordered and received DVDs containing child pornography, but destroyed them upon learning that another individual had been arrested for allegedly receiving similar products from the same company.

As a condition of his release , Hickey was ordered by U.S. District Court Magistrate Judge Lincoln D. Almond to have no contact with minors, including students at Tri-County Regional Vocational Technical High School in Franklin, Mass., where he is employed as a teacher.

A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Possession of child pornography is punishable by a maximum sentence of up to 10 years in federal prison followed by up to 3 years supervised release.

The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly, with the assistance of Assistant U.S. Attorneys Adi Goldstein and Lee H. Vilker.

The ICAC Task Force is a Department of Justice grant-funded program administered by the state police, and is comprised of detectives from the Rhode Island State Police, Providence, West Warwick, Coventry, Warwick, Johnston, and Pawtucket Police Departments, and federal agents from ICE-HSI, United States Postal Inspectors’ Office, and United States Naval Criminal Investigative Service.  The objective of the ICAC Task Force is to form strong working relationships among federal, state and local law enforcement in order to effectively and efficiently prevent, detect, investigate, and prosecute online child exploitation and child pornography crimes.

This case is being brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc  For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

 

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PROVIDENCE, R.I. – Gilberto Morales, 30, of Pawtucket, a convicted sex offender in Wisconsin, was sentenced Wednesday in U.S. District Court in Providence to 46 months in federal prison, to be followed by 10 years of supervised release, for failing to register as a sex offender, announced United States Attorney Peter F. Neronha, United States Marshal Jamie A. Hainsworth and Pawtucket Police Chief Paul King.

On June 12, 2012, Morales pleaded guilty in federal court to failing to register as a sex offender, admitting to the court that he failed to register in Rhode Island as required by law, after he moved from Wisconsin to Pawtucket in June or July of 2011. Morales has a 25-year duty to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA), and also under Wisconsin and Rhode Island state law. Morales was convicted in Wisconsin in February 2003 of second degree sexual assault of a child. He was also convicted in Wisconsin in September 2006 with failing to register as a sex offender.

SORNA provides a comprehensive set of federal standards for sex offender registration and notification in the United States through the nationwide network of sex offender registration and notification programs. Additionally, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school, and to make periodic in-person appearances to verify and update their registration information.

Shortly after Morales’ arrest in Rhode Island in July 2011 for failing to register as a sex offender, an investigation by Pawtucket Police resulted in charges being brought against Morales for the alleged sexual assault of a 14-year-old Pawtucket girl. It is alleged that the assault took place shortly after Morales moved to Rhode Island. He is currently awaiting trial in state court on two counts of first degree child molestation, two counts of second degree child molestation and one count of failure to register as a sex offender.

The case was prosecuted by Assistant U.S. Attorney Mary Rogers. The sentence was imposed by U.S. District Court Judge John J. McConnell, Jr.

Rhode Island State Police assisted in the investigation of this matter.

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PROVIDENCE, R.I. – Michael Brier, owner of the tax preparation firm Refunds Now Inc., based in Providence, R.I., pleaded guilty Monday in U.S. District Court in Providence to violating a federal court order permanently barring him from preparing tax returns for others. He also pleaded guilty to underreporting more than $1.1 million dollars in income between 2004 and 2009, and failing to pay nearly $400,000 in federal taxes.

Brier pleaded guilty to one count of criminal contempt and one count of tax evasion, announced United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of the Boston office of the Internal Revenue Service (IRS), Criminal Investigation.

In November 2010, the court entered a preliminary injunction against Brier and his employees, after finding that at least 300 tax returns prepared by Brier and Refunds Now understated customers’ tax liabilities, and that Brier and his employees fabricated tax deductions and credits on the returns. Brier and his employees prepared approximately 24,000 federal income tax returns between 2003 and 2007. An IRS examination 350 of those returns determined that 92 percent of them required adjustments, resulting in a government-estimated loss of more than $1.1 million in tax revenue.

On March 7, 2011, the federal court ordered that Michael Brier and his employees be permanently barred from preparing federal income tax returns for others.

According to information presented to the court on Monday, on April 26, 2011, IRS Criminal Investigation agents executed a court-authorized search warrant at Brier’s tax preparation business, Refunds Now. During the execution of the search warrant, agents seized copies of tax returns prepared by Brier and several of his employees that were filed after the date of the permanent injunction.  Agents also seized payment records and client communications establishing that Brier had continued to provide tax preparation services after March 7, 2011. IRS agents also interviewed numerous taxpayers who confirmed that Brier personally prepared and filed their federal tax returns after March 7, 2011.

At the time of his guilty plea on Monday, Brier admitted to the court that he underreported taxable income to the IRS between 2004 and 2009 totaling $1,152,679, and that he underpaid $399, 424 in taxes to the IRS.

Brier is scheduled to be sentenced on May 10, 2013.

There is no maximum penalty set forth for criminal contempt. At sentencing, the court has the power to punish by fine or imprisonment. The maximum fine allowed is $250,000, or twice the gross gain or gross loss, whichever is greater. The maximum term of supervised release is 5 years.

Tax evasion is punishable by a maximum sentence of up to 5 years in federal prison; a fine of $10,000, or twice the gross gain or gross loss, whichever is greater; and up to a maximum term of supervised release of 3 years.

The case is being prosecuted by Assistant U.S. Attorney Richard B. Myrus.

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PROVIDENCE, R.I. – Former Central Falls, R.I., Mayor Charles D. Moreau, 49, of Lincoln, R.I,  and longtime friend, business associate and political supporter Michael G. Bouthillette, 49, of Lincoln, R.I., were sentenced in U.S. District Court in Providence today for participating in a corruption scheme in which the former mayor accepted goods and services from Mr. Bouthillette as a reward for having directed and provided board-up work on more than 160 properties in Central Falls between 2007 and 2009, announced United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.

U.S. District Court Judge John J. McConnell sentenced Moreau to 24 months in federal prison, to be followed by 3 years of supervised release, 300 hours of community service, and a fine of $25,000.

Bouthillette was sentenced to 3 years of probation, including 2,000 hours of community service to the residents of Central Falls – the equivalent of one year of fulltime employment without pay - and a fine of $5,000.  The court also ordered Bouthillette to provide the Rhode Island Foundation with a payment of $160,000 to establish an endowment of charitable funds for the residents of Central Falls for public safety, housing and education programs. In addition, Bouthillette is prohibited from collecting more than $275,000 in liens placed on properties for board-up work he performed for which he yet to be paid. The court ordered that any remaining funds to be collected by Bouthillette are to be provided to the City of Central Falls.

On November 19, 2012, Moreau admitted to the court that beginning in September 2007, he ordered that all vacated homes in Central Falls be boarded up by his longtime friend and political supporter, Michael Bouthillette. Bouthillette admitted to the court that as a reward, on three occasions, he corruptly provided Moreau with things of value. Moreau and Bouthillette each pled guilty to one count of Federal Program Fraud.

An investigation conducted by the United States Attorney’s Office, the Rhode Island Department of the Attorney General and the Rhode Island State Police revealed that beginning in September 2007, Moreau circumvented the State requirement that such work go out for competitive bidding by declaring that each vacant home presented as an “emergency” necessitating an immediate board-up. From approximately September 2007 to July 2009, Bouthillette boarded up at least 167 homes.

The investigation revealed that Bouthillette submitted an invoice to the City of Central Falls for a board-up, at which time a lien was placed on the subject property for the amount of the invoice.  As foreclosed properties were sold and the liens discharged, Central Falls would pay Bouthillette. The scheme allowed Bouthillette to make unreasonable profits amounting to hundreds of thousands of dollars.

Bouthillette admitted to the court that as reward to the former mayor for providing him with the board-up work, on three occasions he gave Moreau things of value.  Bouthillette admitted that in March 2009, he assisted Moreau in obtaining a furnace for Moreau’s Central Falls residence for which Bouthillette admitted that he contributed at least a portion of the purchase price; Bouthillette admitted that, from March to November of 2009, he provided numerous renovations and repairs to a Lincoln residence owned by Moreau which Moreau never paid for; and Bouthillette admitted to the court that in April 2010, he provided flood remediation work at Moreau’s Lincoln home which Moreau never paid for. Moreau admitted to the court that he accepted each of these gratuities from Bouthillette.

The cases were prosecuted in federal court by Assistant U.S. Attorney Terrence P. Donnelly and Rhode Island Assistant Attorney General J. Patrick Youngs.

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PROVIDENCE, R.I. – Juan Carlos Santiago, 35, of Providence, R.I., pleaded guilty in U.S. District Court in Providence today to production of child pornography outside the United States and transporting it into the United States. Santiago faces between 15-30 years in federal prison, followed by 5 years to lifetime supervised release, when he is sentenced on June 6, 2013.

Appearing before U.S. District Court Chief Judge Mary M. Lisi, Santiago admitted to the court that he travelled to the Dominican Republic in January 2011, and recorded himself engaged in sexually explicit conduct with a prepubescent male child. Santiago admitted that he transported the images and videos back to the United States. He also admitted to recording video chat sessions, including sexually explicit conduct, with minors he engaged using social media.

Santiago also admitted to the court that he possessed at least 50 such videos on his home computer, and that he received and distributed at least 150 images of child pornography.

Santiago’s guilty plea was announced by United States Attorney Peter F. Neronha; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; and Bruce M. Foucart, Special Agent in Charge of the Boston Field Office of Homeland Security Investigations.

On October 26, 2012, members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force conducted a court authorized search of Santiago’s residence and seized two computers, digital storage devices, a digital camera and assorted CDs and DVDs. A forensic examination of the equipment by a Rhode Island State Police Computer Crimes Digital Forensic Analyst revealed numerous images of Santiago engaged in sexual activity with a prepubescent male. Based on GPS coordinates embedded inside the photographs discovered by the analyst, agents determined that the images were taken in the Dominican Republic.

Santiago was arrested on December 20, 2012, by agents from Homeland Security Investigations and members of the ICAC Task Force. He has been detained in federal custody since his arrest.
The case is being prosecuted by Assistant U.S. Attorney Adi Goldstein.

The ICAC Task Force is a Department of Justice grant-funded program administered by the Rhode Island State Police, and is comprised of detectives from the Rhode Island State Police; Providence, West Warwick, Coventry, Warwick, Johnston, and Pawtucket Police Departments; and federal agents from ICE-HSI, United States Postal Inspectors’ Office and United States Naval Criminal Investigative Service.  The objective of the ICAC Task Force is to form strong working relationships among federal, state and local law enforcement in order to effectively and efficiently prevent, detect, investigate, and prosecute online child exploitation and child pornography crimes.

This case is being brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc  For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

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PROVIDENCE, R.I. – Lin Xiao Wei, 32, a Chinese national, pleaded guilty in U.S. District Court in Providence today to importing counterfeit tobacco products into the United States from China, earmarked for Rhode Island. Wei admitted to the court that beginning in February 2012, he arranged for the shipment of a 22-foot cargo container containing counterfeit cigarettes.

Wei, who has been detained since his arrest in Miami on June 4, 2012, by the Rhode Island Food and Drug Administration, Office of Criminal Investigations (FDA-OCI) Task Force, pleaded guilty in federal court in Providence today to one count of causing the sale of counterfeit tobacco products.

Wei’s guilty plea was announced by Peter F. Neronha, United States Attorney for the District of Rhode Island, and Mark Dragonetti, Special Agent in Charge, FDA Office of Criminal Investigations (FDA-OCI).

Appearing before U.S. District Court Judge John J. McConnell, Jr., Wei admitted that he arranged for the purchase and shipment from China to the United States of a 20-foot cargo container of counterfeit Marlboro cigarettes. The cargo container, which shipping documentation claimed contained 696 cartons of leather products, was shipped from a port in China on March 27, 2012.

Between the time Wei allegedly agreed to ship the fraudulent tobacco products to the U.S., and the arrival of the cargo container through a port in Miami on April 27, 2012, several wire transactions were sent to Wei for the cost of the product and associated shipping fees. Upon arrival in Miami, FDA-OCI and Homeland Security Investigations agents seized the container.

According to information presented to the court, on June 3, 2012, Wei met at a Miami hotel with a confidential informant who was working with investigators, and an undercover FDA-OCI Task Force agent from Rhode Island. Wei discussed the shipment of the fraudulent tobacco products, as well as previous shipments of counterfeit pharmaceutical products and the availability of other fraudulent products.

Wei is scheduled to be sentenced on April 10, 2013. Causing the sale of counterfeit tobacco products carries a maximum sentence of 3 years in federal prison; a fine of $10,000; and 3 years of supervised release.

U.S. Attorney Peter Neronha thanked Wifredo A. Ferrer, United States Attorney for the District of Southern Florida, and his staff, for their assistance in this matter.

U.S. Attorney Neronha also commended FDA-OCI Rhode Island Task Force members, Rhode Island State Police, East Providence Police and North Providence Police for their efforts in this multi-jurisdictional investigation.

U.S. Attorney Peter Neronha also thanked Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance in this investigation.

The case is being prosecuted by Assistant U.S. Attorneys Richard B. Myrus and Adi Goldstein.

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PROVIDENCE, R.I. – Andrew Rios, 41, of California, was sentenced today in U.S. District Court in Providence to 188 months in federal prison on drug trafficking charges, announced United States Attorney Peter F. Neronha and Rhode Island Attorney General Peter F. Kilmartin. Rios was arrested in January 2011 in connection with the seizure of 65 kilos of cocaine and more than $1.2 million in cash, the single largest seizure of cocaine in Rhode Island.

U.S District Court Judge William E. Smith also ordered Rios to serve 5 years of supervised release upon completion of his prison term. Rios pleaded guilty on October 1, 2012, to one count of conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine and one count of possessing with the intent to distribute five kilograms or more of cocaine.

Two other defendants who were arrested with Rios previously pleaded guilty to trafficking charges and have been sentenced to lengthy federal prison sentences.  Armando Saucedo, 33, of California, was sentenced on November 1, 2012, to 156 months in prison; Adilson A. Reyes, 31, of Utah, was sentenced November 5, 2012, to 135 months in prison.

Beginning in September 2010, federal, state and local law enforcement agents, working in conjunction with the Rhode Island Attorney General’s office, developed information about the trafficking of cocaine from outside of Rhode Island into the state. As a result, law enforcement monitored activity at hotels in West Greenwich and Pawtucket, at a storage facility in North Kingstown, and several vehicles. In January 2011, law enforcement agents executed court authorized searches of the storage facility in North Kingstown and of two vehicles. 65 kilos of cocaine, $1.2 million in cash and a firearm were seized.

The cases were prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Paul F. Daly, Jr.

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PROVIDENCE, R.I. – An investigation by Internal Revenue Service – Criminal Investigation (IRS-CI) has resulted in the federal indictment of two individuals from Providence, R.I., on charges of allegedly embezzling federal tax checks in excess of $1,000, and allegedly converting the funds for personal use, announced United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of the Boston Field Office of IRS-CI.

Elvy Gomez, 39, is charged with one count each of theft of government property, aggravated identity theft, fraudulent endorsement of United States Treasury checks, and money laundering. The indictment alleges that Gomez embezzled government tax checks totaling in excess of $1,000, and, without permission, used the identity of another person and that person’s bank account to deposit and withdraw funds that were fraudulently obtained. It is also alleged that Gomez used the bank account to wire $17,000 to the Dominican Republic, which had been derived from unlawful activity.

In an unrelated matter, a federal grand jury returned an indictment charging Leticia Gonzalez, 39, with one count of theft of government property.  It is alleged that Gonzalez embezzled government tax checks totaling in excess of $1,000.

In addition, both defendants face forfeiture allegations of all properties which constitute, or are derived from, proceeds traceable to the embezzlement allegations.

“IRS Criminal Investigation has made investigating refund fraud, identity theft and related crimes a top priority," stated William P. Offord, Special Agent in Charge of the Boston Field Office of IRS-CI. “Law enforcement is serious about investigating these crimes and holding to account those who would defraud the government.” 

An indictmentis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The defendants will appear in federal court on dates yet to be determined for arraignment. If convicted as charged, theft of government property, fraudulent endorsement of U.S. Treasury checks and money laundering are each punishable by up to 10 years in federal prison, followed by up to 3 years supervised release; and a fine of up to $250,000. Aggravated identity theft is punishable by a mandatory sentence of two years in federal prison, followed by up to 3 years supervised release; and a fine of up to $250,000.

Agents from the U.S. Secret Service assisted in the investigation of these matters.

The cases are being prosecuted by Assistant U.S. Attorney John P. McAdams.

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PROVIDENCE, R.I. – William L’Europa, 47, of Scituate, co-operator of McCauley and L’Europa Public Adjusters, LLC and PIA Restoration, LLC, was sentenced today to 27 months in federal prison, to be followed by three years of supervised release, for conspiring to defraud the United States government and filing false tax returns.

L’Europa’s business partner, former state legislator John J. McCauley, Jr., 54, of Cranston, was sentenced on December 21, 2012, to 27 months in federal prison, to be followed by three years supervised release.

At the time of their guilty pleas before U.S. District Court Chief Judge Mary M. Lisi, who imposed the sentences, L’Europa and McCauley admitted to the court that they underreported business receipts for tax years 2007 – 2010 by nearly $1.8 million dollars, resulting in the underpayment of federal taxes to the Internal Revenue Service of more than $500,000.

According to signed plea agreements filed with the court, McCauley and L’Europa must file accurate, amended federal tax returns for tax years 2007 – 2011.

L’Europa’s sentence was announced by United States Attorney Peter F. Neronha; William P. Offord, Special Agent in Charge of the Boston office of the Internal Revenue Service (IRS), Criminal Investigation; Richard Deslauriers, Special Agent in Charge of the FBI’s Boston Field Office; Guy N. Thomas, Special Agent in Charge of the Boston Field Office of ATF; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.

The case was prosecuted by Assistant U.S. Attorneys William J. Ferland and Sandra R. Hebert.

The matter was investigated by IRS-Criminal Investigation, FBI, ATF, Rhode Island State Police, and the Providence Fire Department Fire Prevention Division.

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PROVIDENCE, R.I. – James P. Perry, 35, of Pawtucket, was sentenced today to 10 years in federal prison on drug and firearm charges, announced United States Attorney Peter F. Neronha and Pawtucket Police Chief Paul King. Perry was arrested by Pawtucket Police on March 15, 2012, during an undercover investigation into the trafficking of crack cocaine.

U.S. District Court Judge John J. McConnell, Jr., also ordered Perry to serve three years supervised release upon completion of his prison term. Perry pleaded guilty on August 1, 2012, to possession with the intent to distribute cocaine base and being a felon in possession of a firearm.

According to information presented to the court, Pawtucket Police executed a court authorized search of Perry’s Pawtucket residence on March 15, 2012, and seized approximately 4.5 grams of crack cocaine; a .357 revolver, a speed loader and 50 rounds of ammunition; and various items used in the preparation, packaging and sale of crack cocaine.

The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.

The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Pawtucket Police in the investigation of the firearm seized in this is matter.

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PROVIDENCE, R.I. – Jorge Daniel Estrada of Providence, R.I., and Angel Feliz of Dorchester, Mass., face up to life in federal prison, after pleading guilty in U.S. District Court in Providence today to drug trafficking charges in connection with the single largest seizure of pure heroin from the streets of Rhode Island.

The seizure of 19 kilos of pure heroin valued at approximately $4.5 million, and the arrest of Estrada and Feliz in October 2012, was prompted by information developed by Providence Police detectives during an on-going investigation into street-level drug dealing. A joint investigation by Providence Police and the Drug Enforcement Administration (DEA) Drug Task Force resulted in the seizure of the heroin and the arrest of Estrada and Feliz.

Estrada pleaded guilty to one count of possessing with the intent to distribute one kilogram or more of heroin, punishable by a maximum sentence of up to life imprisonment, with a mandatory minimum sentence of 10 years in federal prison; up to a term of supervise release for life, with a minimum mandatory term of 5 years; and a fine of up to $10,000,000.

Feliz pleaded guilty to one count of attempting to possess with the intent to distribute one kilogram or more of heroin, punishable by a maximum sentence of up to life imprisonment, with a mandatory minimum sentence of 10 years in federal prison; up to a term of supervise release for life, with a minimum mandatory term of 5 years; and a fine of up to $10,000,000.

The guilty pleas were announced by United States Attorney Peter F. Neronha; Providence Public Safety Commissioner Steven M. Paré; Providence Police Chief Colonel Hugh T. Clements, Jr.; John J. Arvanitis, Special Agent in Charge of the DEA’s New England Field Division; and Rhode Island Attorney General Peter F. Kilmartin

According to information provided to the court, an individual previously arrested by Providence Police for the alleged possession of narcotics agreed to cooperate with law enforcement to arrange controlled deliveries of heroin. Two deliveries of a kilo of heroin took place on the evening of October 23, 2012, and on the following afternoon, witnessed by a team of law enforcement agents and officers from the DEA Drug Task Force and Providence Police. The drugs were quickly seized by law enforcement.

Later in the day on October 24, 2012, the informant working with law enforcement received a call and was provided with a location to meet with a person who would be traveling from Massachusetts to Rhode Island to pick-up the two kilos of heroin. Law enforcement provided the informant with two fake kilos of heroin and watched as the delivery was made.

A search of Estrada’s Providence residence resulted in the seizure of an additional 17 kilos of heroin.

The case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert.

Estrada is scheduled to be sentenced by U.S. District Court Chief Judge Mary M. Lisi on April 18, 2013. Feliz is scheduled to be sentenced on May 9, 2013.

Contact: 401-709-5357
USARI.Media@usdoj.gov