Boston City Councilor Fernandes Anderson accused in bonus kickback scheme, arrested by FBI
Mayor Wu among those calling for Fernandes Anderson to resign
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Updated: 5:29 PM EST Dec 10, 2024
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THE SCENE. WE’LL BRING YOU UPDATES AS THEY COME IN. NOW TO BREAKING DEVELOPMENTS IN THE STORY THAT HAS BEEN UNFOLDING ALL DAY. BOSTON CITY COUNCILOR TANYA FERNANDEZ ANDERSON LEAVING FEDERAL COURT IN BOSTON THIS AFTERNOON AFTER PLEADING NOT GUILTY TO CORRUPTION CHARGES. SHE WAS ARRESTED BEFORE DAWN THIS MORNING. NEWSCENTER FIVE HAD THE ONLY CAMERA THERE AS THE FBI TOOK HER INTO CUSTODY AT HER HOME. SHE IS ACCUSED OF TAKING THOUSANDS OF DOLLARS IN CITY MONEY IN A KICKBACK SCHEME. GOOD AFTERNOON, EVERYBODY. THANKS FOR BEING WITH US. I’M BEN SIMMONEAU AND I’M JESSICA BROWN. WE CAN TELL YOU RIGHT NOW PARTS OF TODAY’S INDICTMENT INCLUDED A MONEY EXCHANGE IN A CITY HALL BATHROOM. LET’S GET OVER TO NEWSCENTER 5 DAVID BIENICK, WHO IS LIVE WITH MORE ON THIS DAVID. JUST ABOUT 90 MINUTES AGO, COUNCILOR FERNANDEZ ANDERSON WAS HERE AT THE FEDERAL COURTHOUSE WHERE SHE PLEADED NOT GUILTY TO ALL SIX FEDERAL CHARGES SHE FACES AND SHE WAS ALLOWED TO BE RELEASED WITHOUT HAVING TO POST ANY BAIL. NOW SHE LEFT THE FEDERAL COURTHOUSE SURROUNDED BY CAMERAS AND REPORTERS. SHE DECLINED TO MAKE ANY COMMENT, INCLUDING WHEN I ASKED HER IF SHE PLANS TO RESIGN FROM THE BOSTON CITY COUNCIL IF CONVICTED ON THESE CHARGES. SHE DOES FACE SEVERAL YEARS IN PRISON. NOW, FIVE INVESTIGATES SHOT THIS EXCLUSIVE VIDEO AS FEDERAL AGENTS ARRESTED FERNANDEZ ANDERSON EARLY THIS MORNING OUTSIDE HER HOME IN DORCHESTER. FEDERAL PROSECUTORS SAY FERNANDEZ ANDERSON HIRED A RELATIVE TO WORK FOR HER AT CITY HALL, THEN GAVE THAT RELATIVE A $13,000 BONUS IN EXCHANGE FOR RECEIVING $7,000 IN KICKBACKS FROM THAT SAME RELATIVE. THE PROSECUTORS SAY FERNANDEZ ANDERSON ASKED THE RELATIVE TO MEET HER IN A BATHROOM AT CITY HALL TO HAND OVER THE CASH. NO MATTER THE BEHAVIOR WE ALLEGE IN TODAY’S INDICTMENT IS A SLAP IN THE FACE TO THE HARD WORKING TAXPAYERS IN THE CITY OF BOSTON WHO HAVE EVERY RIGHT TO EXPECT THAT THE CITY’S COFFERS ARE IN GOOD AND HONEST HANDS. THE SIDEWALK THAT THE PROSECUTORS HAVE NOT IDENTIFIED, THAT RELATIVE WHO THEY SAY PROVIDED THE ALLEGED KICKBACKS, EXCEPT TO SAY THAT IT IS NOT AN IMMEDIATE FAMILY MEMBER. THEY SAY THE INVESTIGATION IS CONTINUING, BUT FOR NOW, NO ONE ELSE IS CHARGED. THE JUDGE AGREED TO APPOINT A GOVERNMENT FUNDED ATTORNEY FOR FERNANDEZ ANDERSON, BUT SAID HE THINKS THAT IN THE FUTURE SHE MAY BE REQUIRED TO PAY FOR PART OF HER DEFENSE AS THE CITY COUNCILOR. SHE CURRENTLY MAK
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Boston City Councilor Fernandes Anderson accused in bonus kickback scheme, arrested by FBI
Mayor Wu among those calling for Fernandes Anderson to resign
A Boston city councilor was arrested by FBI agents Friday morning after she was indicted in an alleged kickback scheme that netted her thousands of dollars in cash from a staffer in exchange for a large bonus. Councilor Tania Fernandes Anderson, 45, represents District 7 in Boston, which includes Roxbury, Dorchester, Fenway and part of the South End. She pleaded not guilty in federal court on Friday. 5 Investigates was outside her Dorchester home Friday when FBI agents placed her under arrest at about 6 a.m. According to court documents, Fernandes Anderson faces five federal counts of wire fraud and one federal count of theft concerning programs receiving federal funds. "These six felony charges stem from an alleged kickback scheme that she orchestrated to obtain several thousand dollars in taxpayer money in exchange for a bribe she paid to a staffer who she gave a very large bonus," U.S. Attorney Joshua Levy said.Fernandes Anderson was going to use the money from the scheme to pay a fine issued following an ethics investigation, Levy said. Fernandes Anderson was in federal court Friday afternoon.According to a federal indictment, Fernandes Anderson gave extra bonus money to "Staff Member A" with the agreement that the staffer would give a portion of the money back to the councilor. That staff member is a relative of Fernandes Anderson, something the councilor lied about, investigators said. Since staff bonus information is publicly available, Fernandes Anderson said the larger bonus for Staff Member A was to compensate them for previous volunteer work, court documents said.Video: Investigators on city councilor's alleged kickback scamStaff Member A's $13,000 bonus was more than double the amount given to other staffers, investigators said."But that supersized bonus came with a hitch. Ms. Fernandes Anderson told Staff Member A she would need to fork over $7,000 in cash back to Ms. Fernandes Anderson. Staff Member A agreed," Levy said. Over the course of several bank transactions in June 2023, the staffer withdrew $7,000 from the deposited bonus payout, according to the indictment. That money was then surreptitiously handed over to Fernandes Anderson on June 9, 2023, according to the indictment. “At approximately 4:11 p.m., Staff Member A texted FERNANDES ANDERSON, ‘Bathroom’ to let FERNANDES ANDERSON know that Staff Member A was waiting in the bathroom to hand the $7,000 in cash to FERNANDES ANDERSON. Within seconds, FERNANDES ANDERSON texted Staff Member A, ‘Ready’ to confirm that FERNANDES ANDERSON was ready to accept the $7,000 cash kickback from Staff Member A. Shortly following these texts, Staff Member A handed FERNANDES ANDERSON approximately $7,000 in cash at a bathroom in City Hall,” the indictment states. Read the full indictment here. Officials said the investigation is ongoing, and no one else has been charged. Boston City Councilors control their own budget, deciding for themselves how much to spend on everything from salary and bonuses to postage. In April of 2023, just one month before giving her relative the bonus, 5 Investigates discovered that Fernandes Anderson advocated for bigger salary budgets.“The point is that we're not paying our staff properly,” Fernandes Anderson said in City Council chambers.She and other councilors asked to increase their staff salary budget from $315,000 to $390,000, and suggested “to leave the decision making to discretion of the councilors” on what individual salaries should be.Video below: 5 Investigates reviews pay recordsIn 2023, the state ethics commission found Fernandes Anderson violated the conflict of interest law by hiring her sister and son at city hall and raising their salaries to $70,000 a year. Fernandes Anderson agreed to pay a fine of $5,000.Investigators said Friday the relative involved in the kickback scam was hired after the ethics fine was levied against her, and the scheme was hatched to pay the fine. "Ms. Fernandes Anderson chose to violate her fiduciary duty and defraud the city of Boston, the indictment alleges, rather than find a legal means to pay off that debt," Levy said. Last month, the state Office of Campaign and Political Finance sent her campaign a letter which said it had not timely filed deposit information and had taken contributions over the legal limit.Earlier this week, Fernandes Anderson said she was "not thinking about quitting. I'm not thinking about stepping down." Video below: Councilor pressured to resignAfter the arrest, Mayor Michelle Wu said Fernandes Anderson has a "right to a fair legal process," but urged the councilor to step down. "The serious nature of these charges undermine the public trust and will prevent her from effectively serving the city," Wu said in a statement. "I urge Councilor Fernandes Anderson to resign." City Council President Ruthzee Louijeune said a resignation would prevent disruption to the council while Fernandes Anderson's case is litigated. "Given the severity of the allegations brought against her, and the direct impact that they have on residents’ ability to see the Boston City Council as their faithful stewards, it is in the best interest of the body that she resign," Louijeune wrote in a statement. Councilor At-Large Erin Murphy, District 2 Councilor Ed Flynn and District 8 Councilor Sharon Durkan also called for Fernandes Anderson to resign.Fernandes Anderson has represented District 7 since 2021 and won re-election in 2023.
BOSTON —
A Boston city councilor was arrested by FBI agents Friday morning after she was indicted in an alleged kickback scheme that netted her thousands of dollars in cash from a staffer in exchange for a large bonus.
Councilor Tania Fernandes Anderson, 45, represents District 7 in Boston, which includes Roxbury, Dorchester, Fenway and part of the South End. She pleaded not guilty in federal court on Friday.
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5 Investigates was outside her Dorchester home Friday when FBI agents placed her under arrest at about 6 a.m.
According to court documents, Fernandes Anderson faces five federal counts of wire fraud and one federal count of theft concerning programs receiving federal funds.
"These six felony charges stem from an alleged kickback scheme that she orchestrated to obtain several thousand dollars in taxpayer money in exchange for a bribe she paid to a staffer who she gave a very large bonus," U.S. Attorney Joshua Levy said.
Fernandes Anderson was going to use the money from the scheme to pay a fine issued following an ethics investigation, Levy said.
Fernandes Anderson was in federal court Friday afternoon.
According to a federal indictment, Fernandes Anderson gave extra bonus money to "Staff Member A" with the agreement that the staffer would give a portion of the money back to the councilor. That staff member is a relative of Fernandes Anderson, something the councilor lied about, investigators said.
Hearst Owned
Since staff bonus information is publicly available, Fernandes Anderson said the larger bonus for Staff Member A was to compensate them for previous volunteer work, court documents said.
Video: Investigators on city councilor's alleged kickback scam
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Staff Member A's $13,000 bonus was more than double the amount given to other staffers, investigators said.
"But that supersized bonus came with a hitch. Ms. Fernandes Anderson told Staff Member A she would need to fork over $7,000 in cash back to Ms. Fernandes Anderson. Staff Member A agreed," Levy said.
Over the course of several bank transactions in June 2023, the staffer withdrew $7,000 from the deposited bonus payout, according to the indictment. That money was then surreptitiously handed over to Fernandes Anderson on June 9, 2023, according to the indictment.
Hearst Owned
“At approximately 4:11 p.m., Staff Member A texted FERNANDES ANDERSON, ‘Bathroom’ to let FERNANDES ANDERSON know that Staff Member A was waiting in the bathroom to hand the $7,000 in cash to FERNANDES ANDERSON. Within seconds, FERNANDES ANDERSON texted Staff Member A, ‘Ready’ to confirm that FERNANDES ANDERSON was ready to accept the $7,000 cash kickback from Staff Member A. Shortly following these texts, Staff Member A handed FERNANDES ANDERSON approximately $7,000 in cash at a bathroom in City Hall,” the indictment states.
Officials said the investigation is ongoing, and no one else has been charged.
Boston City Councilors control their own budget, deciding for themselves how much to spend on everything from salary and bonuses to postage. In April of 2023, just one month before giving her relative the bonus, 5 Investigates discovered that Fernandes Anderson advocated for bigger salary budgets.
“The point is that we're not paying our staff properly,” Fernandes Anderson said in City Council chambers.
She and other councilors asked to increase their staff salary budget from $315,000 to $390,000, and suggested “to leave the decision making to discretion of the councilors” on what individual salaries should be.
Video below: 5 Investigates reviews pay records
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Investigators said Friday the relative involved in the kickback scam was hired after the ethics fine was levied against her, and the scheme was hatched to pay the fine.
"Ms. Fernandes Anderson chose to violate her fiduciary duty and defraud the city of Boston, the indictment alleges, rather than find a legal means to pay off that debt," Levy said.
Last month, the state Office of Campaign and Political Finance sent her campaign a letter which said it had not timely filed deposit information and had taken contributions over the legal limit.
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After the arrest, Mayor Michelle Wu said Fernandes Anderson has a "right to a fair legal process," but urged the councilor to step down.
"The serious nature of these charges undermine the public trust and will prevent her from effectively serving the city," Wu said in a statement. "I urge Councilor Fernandes Anderson to resign."
City Council President Ruthzee Louijeune said a resignation would prevent disruption to the council while Fernandes Anderson's case is litigated.
"Given the severity of the allegations brought against her, and the direct impact that they have on residents’ ability to see the Boston City Council as their faithful stewards, it is in the best interest of the body that she resign," Louijeune wrote in a statement.
Councilor At-Large Erin Murphy, District 2 Councilor Ed Flynn and District 8 Councilor Sharon Durkan also called for Fernandes Anderson to resign.
Fernandes Anderson has represented District 7 since 2021 and won re-election in 2023.