Boston City Councilor Tania Fernandes Anderson was in financial distress when she hired a cousin to her staff and “hatched a scheme to funnel taxpayer money into her pocket,” federal investigators claim.
Fernandes Anderson was arrested at her Dorchester home around 6:30 a.m. Friday on federal public corruption charges, according to the United States Attorney’s Office of Massachusetts and the FBI Boston.
Fernandes Anderson, who represents Roxbury, Dorchester, and a portion of the South End, has been charged with five charges of wire fraud and one count of theft involving federally funded programs, according to Boston’s 11-page federal indictment.
She pleaded not guilty to the allegations in federal court Friday afternoon, still wearing the winter coat she was wearing when she was arrested hours before.
According to the indictment, Fernandes Anderson initiated a kickback scheme by recruiting someone close to her in late 2022. It is also claimed that she falsely said to the city that she and the staff member were unrelated.
As part of the plot, Fernandes Anderson allegedly agreed to pay the employee a $13,000 bonus if a portion of it was returned to her. According to US Attorney Joshua Levy, the bonus was more than double what the rest of her staff received in combined bonuses.
Fernandes Anderson took $7,000 in cash kickbacks from the staffer during a meeting in a toilet at Boston City Hall on June 9, 2023, according to text texts uncovered by investigators.
According to authorities, Fernandes Anderson was in financial problems at the time he received the cash, including skipping rent and car payments and suffering bank overdraft penalties, resulting in low daily balances. She had also received an Ethics Commission fine.
“Ms. Fernandes Anderson was facing financial difficulty in 2023,” Levy informed me. “Around the same time in 2023, Ms. Fernandes Anderson, the grand jury alleges, hatched this scheme to funnel bonus payments, taxpayer money, into her own pocket.”
Levy went further: “All of that money was funded by the taxpayers of the city of Boston.”
FBI Boston Assistant Special Agent in Charge Stephen Kelleher described Fernandes Anderson’s alleged activities as “a situation of her own making.”
Fernandes Anderson was born in Cape Verde and was elected to the Boston City Council on November 2, 2021, according to biographical information on the city’s website. She gained reelection in November 2023. Her current term as Councilor runs until January 2026.
Fernandes Anderson, who had a salary of around $103,500 in 2022 and 2023, is no stranger to controversy while serving on the Boston City Council.
Fernandes Anderson agreed to pay a $5,000 civil penalty in 2023 after admitting she violated conflict of interest laws by appointing her sister and son to paid positions on her Boston City Council staff, according to state officials.
“When faced with financial hardship and that State Ethics Commission $5,000 sanction, 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,” according to Levy.
According to the disposal agreement, Fernandes Anderson appointed her sister as her full-time Director of Constituent Services shortly after being elected to the Boston City Council in November 2021.
Fernandes Anderson initially put her sister’s annual income at $65,000. She boosted it to $70,000 in June 2022 and gave her sister a $7,000 bonus, according to the disposition agreement.
Fernandes Anderson also named her son as full-time office manager in June 2022, paying him $52,000 per year. 11 days later, her son’s income was raised to $70,000.
Fernandes Anderson terminated the job of her sister and son on August 31, 2022.
Fernandes Anderson spoke out publicly earlier this week after learning that she was being investigated by the federal government, but she did not specifically address the claims.
“My responsibility is to show up and fight for you. And I shall continue to perform the people’s work. Unfortunately, I am unable to comment on this issue at this time. Fernandes Anderson said in a statement that he would share the information with you as soon as possible.
It is uncertain whether Fernandes Anderson will continue to serve on the City Council, but Boston Mayor Wu and others have publicly asked for her resignation.
Fernandes Anderson was assigned a public defender on her first arraignment.
