SIX ARRESTED IN REGISTRY OF MOTOR VEHICLES IDENTITY THEFT SCHEME

SIX ARRESTED IN REGISTRY OF MOTOR VEHICLES IDENTITY THEFT SCHEME

Four RMV clerks arrested for issuing licenses and ID cards to illegal aliens for cash  

BOSTON –Six individuals, including four RMV clerks, were arrested today in connection with a scheme to produce false identification documents through the Massachusetts Registry of Motor Vehicles.  Some of the false identities and addresses were used to fraudulently register to vote in the City of Boston. 

Evelyn Medina, 56, of Boston; Annette Gracia, 37, of Boston; Kimberly Jordan, 33, of Randolph; David Brimage, 46, of Boston; Bivian Yohanny Brea, 41, of Boston; and John Doe, a/k/a Flako, a/k/a Miguel, a/k/a Pablo D. Gonzalez Lopez, a/k/a Rafael R. Bonano, 32, whose identity and nationality has yet to be determined, were charged today in federal court in Boston with aggravated identity theft. The defendants are expected to appear in federal court this afternoon.

At the time of their arrest, Medina, Gracia, Jordan, and Brimage were employed as clerks at the Haymarket Registry of Motor Vehicles. Brea and Flako conspired with the RMV clerks to operate the scheme.

In October 2015, the Massachusetts State Police received an anonymous letter alleging that a corrupt RMV employee was providing stolen identifications and drivers’ licenses to individuals seeking false identifications.  An investigation revealed that several Haymarket RMV clerks – Medina, Gracia, Jordan, and Brimage – were allegedly working with Brea, who acted as the document vendor, and Flako, who acted as the document dealer, to provide licenses and identification cards to illegal aliens for cash.  

The scheme involved several steps.  First, it is alleged that Flako, the document dealer, sold a Puerto Rican birth certificate and U.S. Social Security card to Brea, the document vendor, for approximately $900.  Brea, in turn, sold the stolen identities for over $2,000 to clients seeking legitimate identities in Massachusetts. These clients included illegal aliens, individuals who were previously deported, and an individual who admitted to previously facing drug charges.

After Flako sold Brea the false identification papers, Brea typically used the counterfeit documents and false identities and addresses to fraudulently register the clients to vote in the City of Boston.  Then, Brea and the client brought the stolen identities to the Haymarket RMV, where Medina, Gracia, Jordan, and/or Brimage would accept cash to illegally issue authentic RMV documents, including Massachusetts licenses and ID cards. The clerks also accepted cash to use the RMV’s system to run queries, including Social Security number audits, to confirm that the identities the clients were stealing actually belonged to verifiable individuals.

The charge of aggravated identity theft provides for a mandatory minimum of two years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

The investigation into the corruption and identity theft scheme is ongoing.

Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Bureau of Diplomatic Security, Boston Field Office; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today.  Assistant U.S. Attorney Eugenia M. Carris of Weinreb’s Public Corruption & Special Prosecutions Unit is prosecuting the case.

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

Fellsmere Park Sign Installation Celebrates 197th Birthday of Malden's First Mayor

Wednesday, August 2, 2017

Councillor Debbie DeMaria had beautiful weather for the installation of a new Fellsmere Park sign along the Fellsway East road at Fellsmere Pond. Councillor DeMaria held the ceremony in conjunction with the 197th birthday of one of the benefactors of this beautiful amenity, the first Mayor of Malden, Elisha Converse. Adding tremendous excitement to the event was that Sheryl Mills, Elisha Converse’s great-great-niece attended the event with her husband Jim. Mayor Gary Christenson, State Representative Steve Ultrino, former Mayor Ed Lucey, City Councillors John Matheson and Ryan O’Malley, local elected and City officials, members of the Historical Society, Historical Commission, Library Trustees and residents participated in the event.

The new signage informs visitors and passersby of when the park was established and informs them that this historic location is on the National Register of Historic Places. Councillor DeMaria worked with the Historical Society to design the sign, decided on the best location and also financed the project. She also thought it fitting to acknowledge the birthday of Mayor Elisha Converse whose generosity helped establish the park and who greatly benefitted the City of Malden in many ways.

In addition to being the first Mayor of Malden, Elisha Slade Converse (1820-1904) was a businessman, founder and President of the Boston Rubber Shoe Company, a founder of Malden Bank, and later the First National Bank of Malden where he served as President for 30 years. He also served in the Massachusetts Legislature as a State Representative and a State Senator. A generous philanthropist, he was involved in the construction and establishment of the Malden Hospital, Malden City Hall, Malden Public Library, Malden YMCA, Malden Historical Society and the Malden Auditorium – one of the finest theaters in the Boston area. He also donated the property for the creation of Fellsmere Park and the property to create Pine Banks Park.

After a horrendous fire in 1875 which nearly destroyed Mr. Converse’s business, the Boston Rubber Shoe Company, he realized he needed to secure an emergency water supply and purchased some property at the site of the current Fellsmere Pond. He had a water pipe installed in the stream-fed swamp that led directly to his business. Years later with the encouragement and assistance of Malden Resident Sylvester Baxter (who later became the first secretary of the Massachusetts Metropolitan Park Commission) he supported the idea to convert the area into a park where residents of future generations could walk, sit and enjoy nature.

The Malden Park Commission began working on the initiative and invited famous Father of American Landscape Architecture Frederick Law Olmstead to design the park. Fellsmere Park was established in 1893 due to the generosity of Mayor Converse and the second Mayor of Malden John Sleeper. Mayors Converse and Sleeper donated many acres of their own land which now makes up Fellsmere Park. The Malden Park Commission also bought surrounding parcels to create the 40 acre site.

“I’m truly grateful to Councillor Debbie DeMaria for taking the initiative in having this sign designed and installed,” said Mayor Gary Christenson. “It was also a great honor to meet descendants of Malden’s first Mayor.”

HEDGE FUND MANAGER ARRESTED

HEDGE FUND MANAGER ARRESTED

Defendant allegedly ran multi-million dollar Ponzi scheme

BOSTON – A Boston-area hedge fund manager was arrested and charged today in federal court in Boston with running a multi-million dollar Ponzi scheme.

Raymond K. Montoya, 69, of Allston, was charged with mail fraud and wire fraud. Montoya was released on conditions following an initial appearance in federal court this afternoon.

Between 2009 and June 2017, Montoya ran a pooled investment hedge fund in Boston called RMA Strategic Opportunity Fund, LLC. It is alleged that Montoya falsely told his investors—including his family, friends, and acquaintances who resided in Massachusetts, Ohio, and California—that the fund was earning substantial returns, when in fact, by 2014, the RMA Fund was sustaining substantial losses.  According to court documents, the victims transferred millions of dollars of their personal savings and 401(k) retirement plans to Montoya and the RMA Fund. Montoya told his investors that he would invest their money in stocks and bonds, but he actually invested only a portion of their money, while diverting the rest—totaling millions of dollars—to business and personal bank accounts. Montoya allegedly used the diverted money for personal expenses such as luxury vehicles and the mortgage on his son’s residence. 

Montoya was previously charged with securities fraud in a civil complaint by the Massachusetts Securities Division.

The charging statutes provide for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or gross loss from the offense, restitution and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney William Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today.  The Massachusetts Securities Division provided valuable assistance. The case is being prosecuted by Assistant U.S. Attorney Neil J. Gallagher Jr. of Weinreb’s Economic Crimes Unit.

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

CAPAC Denounces Proposed Cuts to Legal Immigration System

CAPAC Denounces Proposed Cuts to Legal Immigration System

WASHINGTON, D.C. – Today, President Donald Trump announced support for the RAISE Act, a bill introduced in the United States Senate by Senators Cotton and Perdue that would dramatically cut America’s legal immigration system by moving from a family-based immigration system to a merit-based system. Members of the Congressional Asian Pacific American Caucus (CAPAC) released the following statements:

Congresswoman Judy Chu (CA-27), CAPAC Chair:

“The RAISE Act is a direct assault on our longstanding values as a nation of immigrants, and I vehemently oppose this xenophobic bill. This proposal to slash our current legal immigration system by 50% and to create a bureaucratic ‘points’ system will disproportionately impact the Asian American and Pacific Islander (AAPI) community. Although AAPIs comprise 6 percent of the total U.S. population, they account for over 40 percent of the 4.3 million individuals languishing in our current family immigration visa backlogs, often waiting decades to reunite with their loved ones.

“It is clear that moving to a merit-based system that favors English-speaking, high-skilled individuals is only meant to further President Trump’s anti-immigrant agenda by creating a false classification of ‘good’ immigrants versus ‘bad’ immigrants. In reality, these drastic cuts to our legal immigration system would devastate America’s economic growth and threaten our competitive advantage to attract the best talent to our shores.

“America wins when people are welcomed and integrated into our society and given the chance to contribute to the U.S. economy. Immigrant families fill critical gaps in our workforce, open new businesses, and help to create jobs to improve local economies across the country. Instead of advancing proposals driven by fear and hate, Republicans should work with Democrats to focus on comprehensive immigration reform legislation that will reunite families, strengthen our economy, provide a pathway to citizenship, and ensure that America continues to remain the land of opportunity for all.”

Senator Mazie K. Hirono (HI):

“It is shortsighted to think that America became the great nation it is by only letting certain kinds of people into our country. Yet, this is exactly what the Trump-Cotton-Perdue proposal does. Instead of doubling down on the bigotry and irrational fear of immigrants he promoted during the campaign, the President should work with members of both parties to pass comprehensive immigration reform.”

AG HEALEY APPOINTS NEW HEADS OF HEALTH CARE DIVISION, CHILD AND YOUTH PROTECTION UNIT

AG HEALEY APPOINTS NEW HEADS OF HEALTH CARE DIVISION, CHILD AND YOUTH PROTECTION UNIT

New Leaders Appointed to Oversee Teams Focused on Improving Health Care, Advocating for Children and Youth in Massachusetts 

            BOSTON – Attorney General Maura Healey today announced two new leadership appointments to teams focused on improving health care and advocating for children and youth in Massachusetts.

AG Healey has appointed Eric Gold as the new Chief of the Health Care Division. Gold will oversee a team that focuses on improving health care access and affordability for all Massachusetts residents. Abigail Taylor has been appointed as Director of the AG’s Child and Youth Protection Unit, focusing on improving opportunities and outcomes for children and youth in the state.

Gold, a Newton resident, joined the AG’s Health Care Division in 2012 as an Assistant Attorney Generaland has served as the Deputy Chief of the Division since January 2016. Prior to joining the AG’s Office, Gold was a litigator at Greenberg Traurig in Boston from 2008 to 2012, where he handled product liability claims, class actions, and securities suits in state and federal courts. He litigated at Sidley Austin in New York and Chicago between 2003 and 2008, representing pharmaceutical companies in complex multi-district litigation. He is a graduate of Cornell University and Washington University School of Law.

“Eric is an invaluable leader of our health care team who will bring deep knowledge and experience to heading the Health Care Division,” said AG Healey. “Eric has used his skills to shape our office’s ongoing work to address the opiate epidemic and I am thrilled that he has accepted this new position.”

As Division Chief, Gold will oversee a team of attorneys, mediators, and other staff whose primary role is to advocate for and enforce Massachusetts laws to protect health care consumers, promote affordability and accessibility and improve the overall effectiveness of the health care system. The Division also helps consumers understand their health care rights and mediates consumer disputes with health care payers and providers.

Taylor, who resides in Somerville, has served as Assistant Attorney General in the AG’s Child and Youth Protection Unit since its inception in 2015. Prior to joining the office, Taylor served as a Trial Attorney in the Criminal Fraud Division of the U.S. Department of Justice from 2011 to 2015, where she prosecuted dozens of defendants for their participation in health care fraud schemes amounting to hundreds of millions of dollars. From 2008 to 2011, she served as executive director of iCivics Inc., growing a small academic project to become the leading national resource for social studies games and online civics curriculum. Taylor holds degrees from Harvard Law School, George Washington University, and Yale University.

“Abby is a natural leader who has a proven track record of bringing together diverse stakeholders to make progress on issues affecting children,” said AG Healey. “I know she will effectively lead this unit in its important mission to protect and fight for the well-being of children and youth in our state.”

Effective October 1, Taylor will succeed Judge Gail Garinger, who is transitioning into retirement following an esteemed career as the first Director of the AG’s Child and Youth Protection Unit, the first Child Advocate for Massachusetts, and a juvenile court judge.

AG Healey created a first-of-its-kind Child and Youth Protection Unit in 2015, which uses the unique position and expertise of the AG’s Office to advance initiatives fostering enhanced protections and positive outcomes for children and youth in Massachusetts. Taylor will lead the Unit in legal advocacy, programming and training efforts, and partnerships with state and local agencies and courts to improve protections and services for the state’s youngest residents.

麻州眾議會議長發聲明

Statement from Robert A. DeLeo

“It makes little sense for the Governor to file this legislation now when the there are several similar bills already in committee. Each year our hope is to hold a sales tax holiday to give our hardworking citizens and local businesses a boost, which is why the House votes consistently in favor of the sales tax holiday whenever revenues allow. 

This year, the Commonwealth experienced unpredicted revenue shortfalls and accordingly, the Legislature had to make significant budget cuts to programs and services. In doing so, however, we protected and prioritized the most critical services and programs. We also maintained our support for local cities and towns. These choices ultimately benefit local businesses, all of which require a strong local economy and infrastructure to thrive in the long-term. 

In addition, we will continue to work with local retailers to support federal action on creating a level playing field for internet and brick-and-mortar businesses alike. ”

麻州長提案8月19、20兩日放稅假

Governor Baker Files Sales Tax Holiday Legislation

BOSTON – Today, Governor Charlie Baker filed legislation designating August 19-20, 2017 as Massachusetts’ sales tax holiday weekend to renew a tax free weekend that generally occurs every year in the Commonwealth.

The legislation would suspend the state’s 6.25% retail sales tax for the weekend on purchases of goods costing $2,500 or less, which will provide a welcome relief to consumers and bolster sales at businesses.

“The sales tax holiday gives consumers a much needed break and supports business across the Commonwealth for our hardworking retailers,” said Governor Baker. “We look forward to working with the Legislature to make this important weekend possible, so the Commonwealth can shop local and make purchases tax free.”

“A tax free weekend provides consumers with a great opportunity to support local businesses while saving money,” said Lt. Governor Karyn Polito. “This weekend will especially help out parents who are looking to make back-to-school purchases, and I look forward to working with our partners in the Legislature to see this legislation passed.”

“The sales tax holiday weekend supports both Main Street and consumers in the Commonwealth, while also boosting economic activity in our cities and towns,” said Administration and Finance Secretary Kristen Lepore.

MASSACHUSETTS ENTITIES TO RECEIVE $32 MILLION FROM SETTLEMENT WITH BARCLAYS OVER MANIPULATED INTEREST RATES

MASSACHUSETTS ENTITIES TO RECEIVE $32 MILLION FROM SETTLEMENT WITH BARCLAYS OVER MANIPULATED INTEREST RATES

State’s General Fund Receives $25 Million from AG Settlement; Follows Record Year of Recoveries by AG’s Office to General Fund at $79.56 Million in Fiscal Year 2017

            BOSTON – Massachusetts non-profit and governmental entities have received $32 million as part of a settlement with Barclays Bank PLC and Barclays Capital Inc. (Barclays), including $25 million for the state’s General Fund, Attorney General Maura Healey announced today.

The payment to the General Fund follows a record year of recoveries by the AG’s Office to the Fund at $79.56 million in fiscal year 2017.

“Our office’s work protects taxpayers while generating revenue for the state through our many settlements,” said AG Healey. “Following a year of record returns, the Barclays settlement will return $25 million to the General Fund and millions more to state entities harmed by its practices.”

The AG’s Office recovered $79,564,511 to the state’s General Fund in fiscal year 2017. In the first month of fiscal year 2018, the AG’s Office has had several major recoveries to the Fund, including $25 million from the Barclays settlement, and from a settlement with LAZ Parking Limited, LLC announced earlier this week in which $1.1 million went to the Fund over claims LAZ failed to detect and deter theft of millions of dollars of cash revenue belonging to the MBTA.

“Attorney General Healey’s Office has built a proven record protecting taxpayers and securing millions back for the General Fund,” said Greg Sullivan, Research Director of the Pioneer Institute and former Inspector General. “At a time when state budgets are tight, this work is absolutely essential in maintaining the services Massachusetts residents need.”

The settlement with Barclays resolved allegations that the company manipulated interest rates and defrauded governmental and non-profit entities in Massachusetts and across the nation. The distribution of proceeds from the case has now been completed and approximately a dozen Massachusetts schools, pension funds, and government entities received payments.

The investigation, conducted by AG Healey and more than 40 other state attorneys general, found that Barclays engaged in fraudulent conduct by manipulating LIBOR (London Interbank Offered Rate) to set deflated interest rates, and deceiving counterparties about LIBOR-based transactions.

LIBOR is calculated through submissions of interest rates by major banks across the world and has a widespread financial impact as many financial institutions set their own rates relative to it. 

Based on the investigation, the AG’s Office alleged that during the financial crisis period of 2007-2009, Barclays’ managers frequently told its LIBOR submitters to lower their LIBOR rate settings in order for Barclays to appear more creditworthy than it was, and to avoid the appearance that the bank was in financial difficulty. Barclays’ LIBOR submitters allegedly complied with the instructions and suppressed LIBOR submissions during that period.

The AG’s Office also alleged that at various times from 2005 to 2007, and continuing at least into 2009, Barclays’ traders asked Barclays’ LIBOR submitters to change their LIBOR submissions in order to benefit their trading positions, and the submitters often agreed to the requests.

Because of these falsely-deflated rates, government entities and non-profit organizations in Massachusetts and throughout the U.S. were allegedly defrauded of millions of dollars when they entered into interest rate swaps and other investment contracts with Barclays, often causing incoming payments to be smaller than they should have been. 

Several Massachusetts schools have received refunds because of the Attorney General’s settlement, including Babson College, Northeastern University, Harvard College, Milton Academy, and Worcester Polytechnic Institute. Some Massachusetts pension funds also received funds, including the state employee pension fund (PRIT/PRIM) and the Massachusetts Municipal Depository Trust. Other entities that recovered funds include the MBTA, the Massachusetts Health Care Security Trust, and the Massachusetts Water Resources Authority. 

The LIBOR activities of certain other banks involved in setting the LIBOR rates are still under active investigation. 

This matter was handled by staff of Attorney General Maura Healey’s Insurance and Financial Services Division, including Madonna Cournoyer, Aaron Lamb, Glenn Kaplan, Diana Hooley, and Brook Kellerman.  

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