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October 24, 2011

BOSTON - A Holliston man has been charged with scamming a Boston-area physician and others of millions of dollars that they invested in a sham software venture. He is also charged with passing hundreds of forged prescriptions for controlled substances.

JAMES S. SAKKOS, 45, of has been indicted on six counts of wire fraud, 12 counts of monetary transactions with proceeds of illegal activity, 25 counts of obtaining controlled substances by fraud and one count of lying to a federal investigator.

The indictment charges that SAKKOS persuaded a physician, who had diagnosed SAKKOS with a rare medical disorder, to invest in a software company that SAKKOS claimed to operate. It is alleged that between 2003 and 2011, SAKKOS fed the physician and the physician’s sister an elaborate story with repeated updates about the putative success of the company in making substantial sales to major U.S. corporations. To support these fraudulent representations, SAKKOS allegedly provided his victims with a forged letter from a well-known investment banking firm, expressing interest in a public offering of the software company’s stock. On another occasion SAKKOS represented that the software company was on the verge of being bought-out by IBM.

According to the indictment, the software company had minimal, if any, legitimate operations. Instead of using investors’ money for business purposes, SAKKOS allegedly diverted virtually all of the investors’ funds to his own personal use, including living expenses, the purchase of a second home in Florida and purchases of luxury automobiles, including vehicles by Ferrari, Land Rover, BMW, Audi and Mercedes Benz.

The indictment also charges that SAKKOS passed hundreds of forged prescriptions for controlled substances including Oxycodone, Meperidine/Demerol, Morphine Sulfate and Oxycodone/APAP.

If convicted, SAKKOS faces up to 30 years in prison to be followed by five years supervised release and a $250,000 fine or twice the gross loss on the wire fraud charges; up to 10 years in prison to be followed by three years of supervised release and a $250,000 fine on the money laundering charges; up to four years in prison to be followed by one year of supervised release and a $250,000 fine on the prescription forgery charges; and up to five years in prison to be followed by three years of supervised release and a $250,000 fine on the false statement charge.

United States Attorney Carmen M. Ortiz; William Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Steven Derr, Special Agent in Charge of the Drug Enforcement Administration - Boston Field Office; and Colonel Marian McGovern, Superintendent of the Massachusetts State Police made the announcement today. The Holliston Police Department also provided assistance in the investigation. The case is being prosecuted by Assistant U.S. Attorney Paul G. Levenson of Ortiz’s Economic Crimes Unit.

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



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