Boston City Councilor Tania Fernandes Anderson has been arrested on federal public corruption charges alleging that she orchestrated "a complicated kickback scheme" to steal city funds, officials said Friday.
Fernandes Anderson, 45, of Boston, is facing six counts of aiding and abetting wire fraud in connection with the use of federal money through her role on the city council, according to a newly unsealed indictment. The City of Boston receives federal grant money for some of its operations. In 2023, that amounted to over $10,000.
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"The charges stem from an alleged kickback scheme she orchestrated to obtain several thousand dollars in taxpayer money in exchange for bribes paid," U.S. Attorney Joshua Levy said at a Friday morning press conference.
She is accused of improperly hiring a relative, from whom she received a kickback. Federal authorities said that an earlier fine, also for hiring relatives, was part of the reason she was facing financial difficulties, which led to her more recent scheme.
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The U.S. Attorney's Office, FBI and IRS said at the press conference that Fernandes Anderson was arrested at her home around 6 a.m. She made her first appearance in federal court in Boston on Friday afternoon and was released without bail. She left court surrounded by a crush of media and a group of supporters and is expected back in court next month.
Watch the press conference below:
Federal investigators allege that in late 2022, Fernandes Anderson hired a relative to her staff, despite rules prohibiting the hiring of immediate family members. The pair made a deal that Fernandes Anderson would award the staffer a bonus and they would then pay back a portion of that bonus to Fernandes Anderson as a kickback.
According to the indictment, Fernandes Anderson lied about being related to the staffer when the hire was made, and later failed to disclose the kickback arrangement, claiming the large bonus awarded to the staffer was to pay them for previous volunteer work.
The bonus awarded was $13,000, investigators say, significantly more than the bonus awarded to any other member of the staff. Investigators said the staffer then paid Fernandes Anderson $7,000 in cash, which was exchanged in a City Hall bathroom.
"When they met in that bathroom, Ms. Fernandes Anderson put $7,000 in her pocket," Levy said. "All of that money was funded by the taxpayers of Boston."
Steve Kelleher, FBI Boston assistant special agent in charge, referred to the scheme as "not just creative, but criminal accounting."
Federal officials said Fernandes Anderson has not made any statements.
Assistant Federal Public Defender Scott Lauer confirmed in an email to The Associated Press that he is representing Anderson. He declined to comment further.
Fernandes Anderson was earlier scrutinized for hiring family members in 2023, when she admitted to an ethics violation for employing her sister and son on her staff. She paid a fine for the offense.
"When faced by financial hardship, Ms. Fernandes Anderson chose to violate her fiduciary duty and defraud the City of Boston rather than find a legal means to pay off that debt," Levy said. "Public service is a privilege, and all of us in public service have a duty to act with integrity and fairness in everything we do. We will hold people who abuse their power accountable."
“She lied to her staff and betrayed her constituents all while being a strong advocate for increased accountability of public officials," added Jonathan Wlodyka, acting special agent in charge of the IRS criminal investigation Boston field office.
"In this Commonwealth and in this country, our elected officials work for us, not the other way around," Kelleher said. "This is a slap in the face to the hardworking taxpayers in the City of Boston."
Kelleher said that "nobody is picking on Tania Fernandes Anderson and her inner circle. We believe this is a situation of her own making."
Levy said no one else has been charged in this case, but the investigation is continuing and he didn't rule out additional charges.
"We're investigating other issues around this conduct and other leads," he said.
Read the full indictment:
Sources told NBC10 Boston on Tuesday that federal authorities came through Boston City Hall this fall looking into Fernandes Anderson.
In a statement Wednesday, Fernandes Anderson said she couldn't comment on the matter.
"To my people, District 7 constituents: You know that I am always transparent with you and always available. My job is to show up and fight for you, and I will continue to do just that--the people's work," the city councilor said. "Unfortunately, I am not able to comment on this matter at this time. As soon as I can, I will be sure to share more with you."
Fernandes Anderson's office said the city councilor is deeply grateful for the overwhelming outpouring of prayers, support and well-wishes that she has received from her community since the news broke.
"I am extremely grateful for your continued faith and trust in me. Thank you," Fernandes Anderson added. "I love you, and I will continue to work hard for you."
NBC10 Boston Political Reporter Matt Prichard has reported that it seems several on the council were aware of the situation and waiting for the news to come out.
Mayor Michelle Wu issued a statement Friday after news of Fernandes Anderson's arrest broke, calling on Fernandes Anderson to resign from the council.
"Like any member of the community, Councilor Fernandes Anderson has the right to a fair legal process. But the serious nature of these charges undermine the public trust and will prevent her from effectively serving the city. I urge Councilor Fernandes Anderson to resign," Wu said in her statement.
City Council President Ruthzee Louijeune also called for Fernandes Anderson's resignation in a statement issued Friday afternoon.
"As the President of the Boston City Council, I work to ensure that the body acts with integrity and centers the needs of all residents," she said. "Public trust is paramount in our line of work, especially at the local level. Councilor Fernandes Anderson has every right to due process in a court of law. 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. This would allow the legal process to unfold without undue disruption to the body."
Fernandes Anderson was first elected to the Boston City Council in November 2021, the first African immigrant and Muslim-American to serve the body. She represents District 7, which includes Roxbury, Dorchester, Fenway and part of the South End.
