BOSTON – April 8, 2010 – The Patrick-Murray Administration’s Office of Consumer Affairs and Business Regulation today announced that the Division of Banks has issued cease-activity directives to 33 companies for suspected unlicensed financing activity. Dealers who sell motor vehicles in Massachusetts under a retail installment contract and hold the contract, typically referred to as “Buy Here, Pay Here,” are required to be licensed.

The action by the Division of Banks focuses on car dealers who were giving loans without a license. Licensed dealers must adhere to maximum interest rate limits and inform customers of loan terms in an appropriate manner. The licensing process also includes a background check and subjects the licensee to examination by the Division of Banks, creating further protections for consumers.

Additionally, MassDOT’s Registry of Motor Vehicles Division issued a new policy statement announcing that it will not allow a motor vehicle dealer who sells vehicles under a retail installment contract and holds the contracts to obtain a “lien code” unless the dealer is in possession of the required license from the Division of Banks. Registrar Rachel Kaprielian, advised so called “Buy Here-Pay Here” dealers to be particularly vigilant with regard to the licensing requirement.

“My office strongly urges dealers to carefully evaluate and consult with the Division of Banks to determine whether a license is required prior to requesting a lien code from the Registry. We will forward the name of any dealer who already has a lien code from the RMV without a license to the Division of Banks for investigation.” Kaprielian said.

“This collaborative effort between the Division of Banks and the Registry of Motor Vehicles will allow us to better protect Massachusetts consumers from excessive fees, finance charges and wrongful repossessions,” said Undersecretary of Consumer Affairs and Business Regulation Barbara Anthony. “By ensuring these companies are properly licensed and regulated, they will be subject to regular on-site examinations to determine compliance with various consumer protection laws.”

Currently the Division of Banks licenses 69 motor vehicle sales finance companies. The list of licensees may be found at www.mass.gov/dob by clicking on “Find a Licensee.”
Anyone with additional questions regarding the licensing of motor vehicle sales finance companies may contact the Division of Banks’ Consumer Hotline at 1-800-495-BANK (2265) Ext. 501. The RMV’s Title Division may be reached at (617) 351-9503.

Lawrence Superior Court Judge Leila Kern this morning sentenced Kevin Quinn, 44, of Haverhill, to 23 years in state prison for rape of a child with force, and two counts of indecent assault and battery on a child under 14. Quinn had been convicted last week in Lawrence Superior Court following a week-long trial. The jury deliberated for just under 3 hours before returning its verdict.

Essex Assistant District Attorney Karen Hopwood proved that Quinn raped and indecently assaulted a young girl in Lawrence on diverse dates in 1997. The victim, who is now 19 years old, disclosed the sexual abuse in June of 2007.

Upon his release, Quinn will be on probation for five years. Judge Kern ordered him to have no direct or indirect contact with the victim or her family. She also ordered him to have no contact with any children under 16, comply with the requirements of the Sex Offender Registry Board, and participate in a sex offender treatment program.

Quinn was represented by Attorney Lynette Leos from the Committee for Public counsel Services.

Hopwood lauded the work Victim/Witness Advocate Amy Snow, and Lawrence Detective Daniel Fitzpatrick.

Quinn had a prior conviction for aggravated rape in 1986, to which he plead guilty and received a sentence of 10-15 years in state prison. That offense also took place in Lawrence.

“Figures from a 1994 DOJ study on recidivism indicated that compared to non-sex offender felons, a sex offender was 4 times more likely to be rearrested for a sex crime (1.3% of released non-sex offenders were later arrested for a sex crime, while 5.3% of released sex offenders were later arrested for a different sex crime). On the other hand, the same study mentions that 68% of released non-sex offenders were rearrested for any crime (both sex and non-sex offenses), while 43% of the released sex offenders were rearrested for any crime (and 24% reconvicted).

According to the Office of Justice Programs of the United States Department of Justice, in New York State the recidivism rates for sex offenders have been shown to be lower than any other crime except murder. Another report from the OJP that studied recidivism of prisoners released in 1994 in 15 states accounting for two-thirds of all prisoners released in the United States that year, reached the same conclusion.

In 2007, the State Bureau of Investigation in North Carolina made significant changes to its sex offender registration system, including new search criteria that include an “offender status” search, enabling an explicit search for convicted sex offense recidivists in the sex offender database.

Manual searches by county using the new criteria yield some of the lowest recidivist percentages ever disseminated by any law enforcement establishment. In the entire State of North Carolina, there are only 71 recidivists shown on the registry, if incarcerated offenders are included. Per-county results for “Registered” status offenders compared against “Recidivist” status offenders on the North Carolina registry yield actual convicted recidivist percentages ranging from zero to fractions of one percent.”1

Theft – Case No. 100216
March 14, 2010
Bedford : Super Market

Case Details:
Bedford PD is investigating the larceny of a wallet from a female customer at Whole Foods on March 14, 2010. The wallet contained two credit cards which were subsequently used to make purchases in Bedford, Medford and Reading. We are looking to identify the female suspect in the attached photographs. Photographs are from CVS Pharmacy in Medford.

D/Sgt. Michael A. L’Heureux
Bedford Police Department
2 Mudge Way
Bedford, MA 01730
781-275-1212 x126

If you have any information about the identity of this person or where they are, please contact:

Bedford Police Department: (781) 275-1212 x 126
Investigator: D/Sgt. Michael A. L’Heureux & Off. Craig Naylor
Case Submission No.: 100216

An Essex County Grand Jury today returned nine indictments against Lawrence School Superintendent Wilfredo Laboy, eight of which charge him with “fraud or embezzlement by a city officer.” He and his son, Wilfredo Laboy, II, of Methuen, who was indicted for perjury for allegedly lying to the Grand Jury, will be will be arraigned Thursday in Salem Superior Court.

“These indictments stem from a lengthy investigation between the Essex District Attorney’s Office, Lawrence Police, Massachusetts State Police and the Office of State Auditor Joseph DeNucci,” said Essex District Attorney Jonathan W. Blodgett. “The crimes alleged involve a serious violation of the public trust.”

As stated in the indictments, Laboy, on divers dates from March 9, 2004 – March 9, 2010, allegedly had school personnel do work at his home and complete errands for his benefit while they were on school time and being compensated by the Lawrence Public Schools. The indictments allege that Lawrence school employees provided electrical work at the defendant’s home in Methuen and met with contractors at the defendant’s home during school hours.

The indictments also allege that employees of the Lawrence School Department provided graphic design work, materials and produced copies of menus for Sal’s Pizza of Methuen.
The employees also provided graphic design work and produced copies of seminar materials, fliers, invitations, brochures and other documents for the Association of Latino Administrators and Superintendents, while on school time and being compensated by the Lawrence Public Schools.

In addition, Lawrence school employees provided computer technical support for the defendant’s computers at his Methuen home during school hours. They also removed trash from his house and disposed of it on Lawrence Public School property.

The indictments also allege that school employees provided transportation for his adult son, Wilfredo Laboy, II, from his home in Methuen to his workplaces at Sal’s Pizza in Lawrence and North Andover. Lawrence school employees also provided transportation during school hours for Laboy’s grandchildren from their school in Methuen.

Finally, Laboy is charged with possession of alcoholic beverages on a premise used for public school purposes and under the charge of a public officer.

Israel Reyes of Lawrence was indicted on two counts of larceny over $250. It is alleged that on divers dates from and between March 9, 2004 to March 9, 2010, he directed graphic designers employed by the Lawrence Public Schools to provide graphic design, printing materials and produce copies of political campaign literature and other personal documents for him. He allegedly ordered the graphic designers to provide graphic design, printing materials, and produce copies of political campaign literature for Massachusetts Representative Barry Finegold.

A fourth defendant, Mark Rivera, of Haverhill, was indicted on seven counts of larceny over $250. It is alleged that on divers dates from March 9, 2004 to March 9, 2010, he misappropriated materials from the graphic design department of the Lawrence Public Schools for his benefit or the benefit of other private persons while the graphic designers, employees of the Lawrence Public Schools, were compensated by the Lawrence School Department.

According to the indictments, Rivera allegedly directed the graphic designers to provide graphic design, printing materials and produce political campaign literature for Priscilla Baez for Lawrence School Committee; Peter Larocque for Lawrence School Committee; Gregory Morris for Lawrence School Committee; Israel Reyes for Mayor of the City of Lawrence; Omaira Mejia for Lawrence School Committee; and for then-Massachusetts Representative William Lantigua.

The investigation determined that not all of the candidates knew that printing was being done on their behalf by the school employees.

Rivera also directed the graphic designers to provide graphic design, printing materials, and to produce copies of seminar materials, fliers, brochures, invitations and other documents for the Association of Latino Administrators and Superintendents.

The cases will be prosecuted by Essex Assistant District Attorney Maureen Wilson Leal, assisted by Special Counsel Thomas M. Donovan.
The investigation remains ongoing.

This type of news makes it hard to believe Lawrence School’s policy statement, “The Lawrence Public Schools strictly adheres to a Code of Conduct that underscores the District’s commitment to integrity and our shared goals of creating a college-going culture for all students.

The School Committee expects members of its professional staff to be familiar with the code of ethics that applies to their profession and to adhere to it in their relationships with students, parents, coworkers and officials of the Lawrence Public Schools.”

For the sake of the community and the school hopefully these allegations can either be dismissed quickly or contained as isolated incidents.

Salem Superior Court Judge David Lowy today sentenced Robin Abrahams, 46, of Seabrook, NH, to 45-60 years in state prison for rape of a child with force. He handed Abrahams an additional life sentence for burglary and assault on an occupant.

Abrahams, who also lived sporadically in the Newburyport area, was found guilty of the charges yesterday following a six-day trial. The jury deliberated for just under three hours before returning its verdict.

In 2006, DNA evidence found on the bed sheets at the scene of the crime was used to link Abrahams to the rape and burglary. Abrahams was indicted in February, 2007.

Essex Assistant District Attorney Jessica Connors proved that on the night of May 17, 1991, Abrahams broke into the 15 year-old victim’s home on Washington Street in Newburyport and raped her.

In 2008, he was also charged with intimidation of witness while awaiting trial on this matter. He pled guilty to that charge today and was sentenced to a concurrent state prison term of 4-5 years.

Prosecutor Connors lauded Newburyport Police Inspectors Brian Brunault and Patty Gabriel and Officer Nora Dugan for their tenacity on this case. She also praised the work of the Massachusetts State Police Crime Lab, and Victim/Witness Advocate Tyler Burke.

The Salem Law enforcement is making it clear that sex offenders are not welcome. In a similiar story The Salem News Online reported that, “A Level 3 sex offender was sent to prison for five years yesterday after admitting he didn’t tell the state sex offender registry about where he was working — including a job at a Danvers supermarket.”

Estimated rates of recidivism among child sex offenders vary. One study found that 42% of offenders re-offended (either a sex crime, violent crime, or both) after they were released. Risk for re-offense was highest in the first 6 years after release, but continued to be significant even 10–31 years later, with 23% offending during this time. A study done in California in 1965 found a 18.2% recidivism rate for offenders targeting the opposite sex and a 34.5% recidivism rate for same-sex offenders after 5 years.1

Child sexual abuse occurs frequently in Western society. The rate of prevalence can be difficult to determine. In the UK it is estimated at about 8% for boys and 12% for girls. The estimates for the United States vary widely. A literature review of 23 studies found rates of 3% to 37% for males and 8% to 71% for females, which produced an average of 17% for boys and 28% for girls, while a statistical analysis based on 16 cross-sectional studies estimated the rate to be 7.2% for males and 14.5% for females. The US Department of Health and Human Services reported 83,600 substantiated reports of sexually abused children in 2005. Including incidents which were not reported would make the total number even larger.

Surveys have shown that one fifth to one third of all women reported some sort of childhood sexual experience with a male adult. A 1992 survey studying father-daughter incest in Finland reported that of the 9,000 15-year old high school girls who filled out the questionnaires, of the girls living with their biological fathers, 0.2% reported father-daughter incest experiences; of the girls living with a stepfather, 3.7% reported sexual experiences with him. The reported counts included only father-daughter incest and did not include prevalence of other forms of child sexual abuse.

The survey summary stated, “the feelings of the girls about their incestual experiences are overwhelmingly negative.” Others argue that prevalence rates are much higher, and that many cases of child abuse are never reported. One study found that professionals failed to report approximately 40% of the child sexual abuse cases they encountered.

A study by Lawson & Chaffin indicated that many children who were sexually abused were “identified solely by a physical complaint that was later diagnosed as a venereal disease…Only 43% of the children who were diagnosed with venereal disease made a verbal disclosure of sexual abuse during the initial interview.”

It has been found in the epidemiological literature on CSA that there is no identifiable demographic or family characteristic of a child that can be used to bar the prospect that a child has been sexually abused.

Massachusetts Attorney General Martha Coakley joined the U.S. Federal Trade Commission (FTC) and 35 states in announcing an agreement with LifeLock, Inc., a Tempe, Arizona-based identity theft protection provider, resolving an investigation into the company’s misleading advertising practices. LifeLock has agreed to pay $11 million in restitution to consumers that will be distributed through a consumer redress program administered by the FTC.

“Our office has seen firsthand the type of damage that identity theft can inflict on a person’s life and there are many free resources that consumers can take advantage of to protect themselves,” said Attorney General Martha Coakley. “The best way to protect your personal information is to know who you are doing business with before giving out your personal information. We are pleased that consumers who purchased these so-called identity theft protection products will receive restitution under this settlement.”

The FTC and the states began jointly investigating LifeLock amid allegations that the company made a range of deceptive claims misleading consumers to believe its services were a “proven solution” to protect against all forms of identity theft, including criminal, mortgage and child identity theft. The settlement also resolves allegations that the company misrepresented the specific services it provided to protect or alert consumers when their personal information had been compromised.

LifeLock sells identity theft protection services which past advertisements claimed were “guaranteed” to protect consumers’ personal information and prevent criminals from using it to open accounts in their names. Some ads even included CEO Todd Davis’ Social Security Number, which Davis said, showed “how confident I am in LifeLock’s proactive identity theft protection.”

“For a fee, the LifeLock Identity Alert system can identify fraudulent applications for many forms of both credit and non-credit related services. These include many but not all retail credit cards, mortgage loans, and auto loans, as well as non-credit related transactions such as wireless services, utilities, check orders and reorders, and non-credit related payday loans. LifeLock will also opt-out members from pre-approved credit card offers on your behalf in order to reduce unwanted mail which can potentially expose your information in the first place.”1

LifeLock’s advertisements also implied that individuals with fraud alerts on their consumer reports will always receive a phone call prior to the opening of new accounts from his or her, when in fact a phone call is not required by federal law.

Under the agreement, LifeLock is prohibited from misrepresenting that its services:
Protect against all types of identity theft;

Constantly monitor activity on each of its customers’ consumer reports; Always prompt a call from a potential creditor before a new credit account is opened in the customer’s name; and Eliminate the risk of identity theft.

LifeLock is also prohibited from overstating the risk of identity theft to consumers, including whether a particular consumer has become or is likely to become a victim. Past marketing materials have warned consumers about their heightened risk of identity theft when LifeLock did not have information to warrant such a warning.

Federal and state laws provide consumers with a variety of free tools to help protect themselves against identity theft. Consumers who have a reasonable suspicion that they are or are about to become victims of identity theft can place free fraud alerts on their credit reports by contacting one of the three major credit reporting agencies. In addition, consumers can obtain free copies of their credit reports to review their own credit histories and identify errors and inaccuracies, such as unauthorized accounts. Consumers are also best-positioned to monitor their own bank accounts and credit card statements for unauthorized withdrawals or charges.

Consumers who believe they have been a victim of identity theft should file a complaint with the Federal Trade Commission. Additional information on identity theft can be found on Attorney General Coakley’s website.

States participating in today’s agreement include: Alaska, Arizona, California, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Missouri, Mississippi, Montana, Nebraska, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Vermont, Virginia, Washington and West Virginia.

Assistant Attorney General Scott Schafer, Chief of Attorney General Coakley’s Consumer Protection Division, and Assistant Attorney General Emily Armstrong, also of Attorney General Coakley’s Consumer Protection Division, handled this matter.

BOSTON – Attorney General Martha Coakley’s Office has reached a $3.6 million settlement agreement with Actavis Elizabeth LLC (“Actavis”), an Elizabeth, New Jersey-based pharmaceutical manufacturer, resolving a Massachusetts False Claims Act case pending in United States District Court in Boston.

“Actavis is an international generic pharmaceutical company based in Iceland that was founded in 1956 as Pharmaco. Listed on the Icelandic Stock Exchange until 2007, it was taken private by Novator Partners, an investment vehicle of the chairman Björgólfur Thor Björgólfsson.

In the late 1990s, Actavis employed fewer than one hundred people and operated solely in the Icelandic market. In 1999, Actavis acquired Bulgarian rival Balkanpharma, beginning a period of substantial growth.

Since then, Actavis has made 25 acquisitions and now operates in 40 countries and employees over 11,000 people. The Group has one of the broadest portfolios in the generics sector with over 650 products on the market, in addition to over 400 products in the development pipeline and in registration.

Actavis is currently among the five largest generic pharmaceutical companies in the world. Its turnover for 2006 is predicted to be 1,390 million euros, compared to 56 million euros in 1999.”1

The lawsuit alleged Actavis reported false and inflated prices to drug industry price reporting services, which caused the Massachusetts Medicaid Program to pay inflated amounts for ingredient costs on prescriptions for Medicaid recipients. The monies recovered will be returned to the Massachusetts Medicaid Program, MassHealth.

“The Massachusetts Medicaid Program provides critical health care services to thousands of Massachusetts residents. This settlement represents a positive step forward in our efforts to address false price reporting, an issue that continues to afflict the program,” Attorney General Coakley said. “Our office will continue to work with MassHealth and the federal government to maintain the integrity of the pharmaceutical reimbursement program and ensure that it is fair to all involved parties.”

Actavis is one of a group of 13 generic drug manufacturers the Commonwealth sued in 2003 for allegedly falsely inflating the prices they reported to national pharmaceutical price reporting services. The Commonwealth’s Medicaid Program uses prices reported by national price reporting services to determine what they will pay to pharmacies for ingredient costs in connection with prescription drugs.

The Commonwealth alleged that by reporting the false and inflated prices, the pharmaceutical companies caused the Medicaid Program to pay inflated amounts for ingredient costs for prescriptions for Medicaid recipients. Medicaid is a joint federal-state program which provides healthcare services, including prescription drugs, to low income and disabled persons.

The settlement resolves the Commonwealth’s claims related to the drugs that Actavis manufactured and sold during the years 1997 to 2003, including Clonazapam, Isosorbide Mononitrate and Lorazapam. In agreeing to the settlement, Actavis did not admit any wrongdoing and asserted that its price reporting was consistent with all legal standards. Actavis was formerly known as Purepac Pharmaceutical Co. and is a subsidiary of Actavis Group hf, an Icelandic firm that manufactures and sells generic drugs worldwide.

The Commonwealth has previously settled with nine other defendants in this case–Dey, Inc.; Barr Laboratories, Inc.; Duramed Pharmaceuticals, Inc; Ethex Corporation; Roxane Laboratories, Inc.; Teva Pharmaceuticals USA, Inc.; Ivax Corporation; Watson Pharma, Inc., and Watson Pharmaceuticals, Inc.–recovering a total of $16.7 million from those nine companies for the Massachusetts Medicaid Program. The case remains pending in federal court in Boston against three other defendants.

Attorney General Coakley’s office has established itself nationally as a leader in the fight against fraud, waste and abuse in the Medicaid program. The office’s Medicaid Fraud Division works to prevent and if necessary, prosecute provider fraud and violations of state law pertaining to fraud in the administration of the Medicaid Program.

The division often works collaboratively with other enforcement authorities in other states, as well as with federal enforcement authorities. Since Attorney General Coakley took office in 2007, the Medicaid Fraud Division has recovered over $134 million dollars for the Massachusetts Medicaid program. In 2009, the division achieved its third consecutive year of record-breaking recoveries, returning $51.6 million to the Medicaid Program, including multi-million dollar settlements with such pharmaceutical giants as Astra Zeneca, Eli Lilly & Co., and Pfizer Inc.

This case was prosecuted by Assistant Attorneys General Peter A. Mullin, Nathaniel Yeager, Robert P. Patten, Colleen A. McCarthy, John Pina III, Gregory H. Matthews, Robyn P. Dollar and Steven T. Sharobem, with assistance from Investigators Anthony Megathlin, John J. Walsh and Steven Devlin, all of Attorney General Coakley’s Medicaid Fraud Division, and with the cooperation and assistance of MassHealth and its staff.

LAWRENCE – Today, an Essex Superior Court judge ordered a North Andover man to serve four years in the House of Correction in connection with failing to construct sunrooms for over 20 homes that were ordered through his company. Superior Court Judge Maureen Hogan sentenced James Brien, age 60, to four years in the Essex County House of Correction for violating the Home Improvement Contractor Statute (23 counts).

Upon the completion of this sentence, Brien must also serve 10 years of probation. While on probation, Judge Hogan ordered that Brien pay $365,586 in restitution to the victims, submit full annual financial disclosures to the Department of Probation and inform the Department of Probation of any business venture he undertakes. On January 29, 2010, Judge Hogan found Brien guilty of these charges after a nine-day jury waived trial.

In February 2004, the Attorney General’s Office began an investigation after receiving complaints from consumers claiming that Brien and his company, the now-defunct American Sunroom Co. Inc. (American Sunroom), failed to install sunrooms for their homes in accordance with contracts signed with the company. Brien was hired to perform residential contracting services for 23 customers and failed to do so. Investigators discovered that in many instances, Brien started the construction process for the sunrooms, but never finished the projects, accepting a total of over $450,000 from his customers in the process.

The Attorney General’s Office filed a civil complaint against Brien in February 2004 in Suffolk Superior Court, and obtained a preliminary injunction against Brien that same month. On April 4, 2007, the Attorney General’s Office obtained a $2 million civil judgment against Brien.

An Essex County Grand Jury returned indictments against Brien on June 21, 2006.

He was arraigned in Essex Superior Court on July 6, 2006, where he entered a plea of not guilty and was released on personal recognizance. Brien’s jury-waived trial began on January 11, 2010, and continued for nine days. On January 29, 2010, Judge Hogan found Brien guilty of violating the state’s home contractor law. After delivering her verdict, Judge Hogan revoked the defendant’s bail until his sentencing today. Today, Brien was sentenced to serve four years in the House of Correction.

The case was prosecuted by Assistant Attorneys General David Andrews and Margret Cooke, both of Attorney General Coakley’s Insurance and Unemployment Fraud Division (IUFD), and was investigated by Sallyann Nelligan of the IUFD, Paul Stewart, Director of Attorney General Coakley’s Financial Investigations Division, and Massachusetts State Police assigned to the Attorney General’s Office.

Robbery – Case No. 100205
March 11, 2010
Somerville : Citizens Bank 338 Broadway Somerville Ma

Case Details:
On Thursday 3/11/2010, at approximately 12:23 pm, an unidentified male subject robbed the Citizens Bank at 338 Broadway, Somerville, MA. The suspect entered the bank and passed a demand note to a teller demanding cash. The suspect grabbed the cash from the counter and fled on foot.

If you have any information about the identity of this person or where they are, please contact:
FBI: (617) 223-6136 x 6136 Investigator: John Oliveira

If you have any information about the identity of this person or where they are, please contact:

FBI: (617) 742-5533
Investigator: Detective John Oliveira
Case Submission No.: 100205

Theft – Case No. 100208
March 05, 2010
Stoughton : Burt’s Shell

Case Details:
At approximately 0206 hours on 03-05-2010 a dark colored SUV (possibly dark gray) pulled up to Burt’s Shell Station. White male suspect used object and then feet to smash front door glass. Subject enters and takes hundreds of dollars in cigarrettes. White male in twenties with blonde or light brown hair with large build, possibly 5’10″ to 6’01″ tall. Best shots of suspect and MV attached. If anyone has any info as to suspect’s ID please contact Det. O’Connor.

If you have any information about the identity of this person or where they are, please contact:

Stoughton PD: (781) 344-2575
Investigator: Detective O’Connor
Case Submission No.: 100208