Boston City Council member Tania Fernandes Anderson leaves federal court in Boston after pleading not guilty to five counts of wire fraud and one count of theft on Friday, Dec. 6, 2024 in Boston. (AP Photo/Steve LeBlanc)

BOSTON (AP) — A Boston city councilor was arrested Friday on federal fraud charges, accused of funneling part of an inflated bonus payment to a staffer to whom she was related into her own pockets during an exchange at a City Hall bathroom, the U.S. attorney's office said.

Tania Fernandes Anderson, 45, who was facing financial problems, was arrested outside her home on five counts of wire fraud and one count of theft from a program receiving federal funds, acting U.S. Attorney Joshua Levy said.

Anderson, wearing a red winter jacket, pleaded not guilty to the charges and was released. A grand jury indicted her this week.

Anderson was facing financial difficulties in 2023, partly because the Massachusetts State Ethics Commission told her it would seek a $5,000 fine from her for hiring immediate family members to work in her office, Levy said. Council members are not permitted to hire immediate family members as paid staff.

“Despite the fact that she was under investigation by the state ethics commission, Ms. Fernandes Anderson hired another family member on her staff at Boston City Hall to handle constituent services,” Levy said. “That staff member was related to her, but Ms. Fernandes Anderson falsely represented to City Hall that there was no familial relationship.”

She went on to tell the staffer, a woman, that she would give her a $13,000 bonus, more than twice as much as she was paying to the rest of the staff combined in bonuses, Levy said.

“That supersized bonus came with a hitch,” Levy said, with the staffer being told they had to “fork over $7,000 in cash back” to her. The staffer, referred to as “staff member A” in the indictment, agreed, Levy said.

After taxes, the staffer received about $10,000 in her bank account. She withdrew the money in several transactions in May and June of 2023 before exchanging texts to meet at the City Hall bathroom that June 9, Levy said. The staffer gave her $7,000, he said.

Each of the five wire fraud charges carries a penalty of up to 20 years in prison and a fine of up to $250,000. The theft count carries a penalty of up to 10 years and a fine of up to $250,000.

In a statement to her constituents Wednesday, Anderson said, “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.”

Anderson became the first African immigrant and first Muslim elected to the council in November 2021. She was reelected in 2023.

Boston Mayor Michelle Wu urged Anderson to resign, saying the charges “undermine the public trust and will prevent her from effectively serving the city.”

News from © The Associated Press, 2024