District of Connecticut
Press releases recorded for this federal judicial district.
Former West Hartford Attorney Sentenced to Prison for Role in Mortgage Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GABRIEL SERRANO, 49, of West Hartford, was sentenced today by Judge Alvin W. Thompson to 12 months and one day of imprisonment, followed five years of supervised release, for his role in an extensive mortgage fraud scheme.
SERRANO, a former attorney, was a partner at the law firm of Serrano & Serrano, LLC in West Hartford until December 2013 when he was suspended from the bar.
According to court documents and statements made in court, from approximately June 2005 to at least November 2008, SERRANO was involved in a mortgage fraud conspiracy with co-defendants Filippos Milios, Malgorzata Karas-Golka, Carmelinda Marotta, Daniel Monteiro, and others that involved the use of straw borrowers, false mortgage applications, false HUD-1 forms, fraudulent down payments, and false verification forms for the purchase of over 50 houses in Hartford, New Haven, and Middlesex counties. SERRANO served as the closing attorney on at least two dozen fraudulent transactions.
SERRANO often served as the closing attorney when Milios purchased properties with financing from private lenders. Later, when Milios sold many of the properties to a buyer, SERRANO usually represented the buyer. In connection with many of the transactions where Milios sold properties, SERRANO knew that Milios, and not the borrower, had provided the required down payment checks on behalf of the borrower. SERRANO often released the seller’s proceeds checks to Milios before receiving a down payment, and he knew that Milios would use the seller’s proceeds checks to obtain the down payment check for the same transaction. In this way, contrary to what SERRANO led the mortgage lenders to believe, the borrowers were purchasing the properties with no down payment funds of their own.
In addition, some of the borrowers purchased multiple properties from Milios and represented to the mortgage lenders that they were purchasing each of the properties as primary residences. SERRANO knew that the borrowers did not intend to use the properties as primary residences.
In the course of many of the fraudulent closings involving Milios’s sale to borrowers, SERRANO received mortgage proceeds from banks and mortgage lenders. SERRANO would frequently disburse some of those proceeds to private lenders who had loaned Milios money to purchase those properties.
The loss attributable to SERRANO’s conduct is this scheme is approximately $3.5 million. The court will hold a subsequent hearing to determine restitution.
On August 6, 2013, SERRANO pleaded guilty to one count of conspiracy to commit mail and bank fraud, and one count of conspiracy to commit money laundering.
Milios, Karas-Golka, Marotta and Monteiro also pleaded guilty and were sentenced to prison terms of 97 months, 30 months, 30 months and 13 months, respectively.
This matter was investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service – Criminal Investigation Division, the U.S. Postal Inspection Service and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys David T. Huang and William J. Nardini.
Waterbury Man Sentenced to More Than 5 Years in Federal Prison for Distributing MethRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that KEVIN WALLIN, 63, last residing in Waterbury, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 65 months of imprisonment, followed by five years of supervised release, for trafficking methamphetamine (“meth”).
“Meth is a highly-addictive drug that consumes its user and has ravaged other parts of the country,” stated U.S. Attorney Daly. “Federal, state and local law enforcement continue to work hard to thwart meth distribution and abuse here in Connecticut. The DEA and Connecticut State Police should be commended for disrupting this coast to coast meth trafficking operation.”
“DEA and our law enforcement partners are committed to investigating individuals and organizations that distribute methamphetamine in our communities,” said DEA Special Agent in Charge Ferguson. “Methamphetamine is an insidious drug that wreaks havoc in our communities and destroys lives.”
According to court documents and statements made in court, this matter stems from a joint investigation by the Drug Enforcement Administration and the Connecticut State Police’s Statewide Narcotics Task Force. The investigation, which included the use of court-authorized wiretaps, controlled purchases of meth, physical surveillance and the use of an undercover officer, revealed that Chad McCluskey and his girlfriend, Kristen Laschober, of California, sent shipments of meth to WALLIN over the course of approximately four years. After receiving the shipments, WALLIN distributed the drug to other dealers and also sold it to his own customers. Some of the shipments were sent on consignment with the understanding that WALLIN would pay McCluskey and Laschober with proceeds generated from his distribution of the drug.
For a time during the conspiracy, WALLIN received between one and three pounds of meth from McCluskey and Laschober on a monthly basis. On six occasions between September 2012 and January 2013, WALLIN sold meth to the undercover officer.
WALLIN has been detained since his arrest on January 3, 2013. A court-authorized search of WALLIN’s residence on that date revealed meth, drug paraphernalia and drug packaging materials.
On April 2, 2013, WALLIN pleaded guilty to one count of conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine (“meth”).
McCluskey and Laschober pleaded guilty to the same charge and were sentenced to prison terms of 65 months and 60 months, respectively.
This matter was prosecuted by Assistant U.S. Attorneys Patrick Caruso and H. Gordon Hall.
New Haven Man Sentenced to 30 Months in Prison for Role in Check Fraud RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BENJII CARR, 49, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 30 months of imprisonment, followed by three years of supervised release, for his role in a check fraud ring. CARR was also ordered to pay $104,070.94 in restitution.
According to court documents and statements made in court, between July 2010 and May 2011, CARR, Langston Xavier Neal and Brandon Key Bentley obtained stolen checks, recruited “runners” who cashed the checks, and altered the checks to list the runners as the lawful payees. The three individuals drove the runners to several Connecticut bank branches and directed them to enter the banks and cash the checks. The runners were paid a small part of the cash proceeds. Through this scheme, 39 checks totaling $114,102.34 were altered and presented to banks, and 37 of those checks totaling $104,070.94 were cashed by the banks.
On December 2, 2014, CARR pleaded guilty to one count of conspiracy to commit bank fraud.
Neal, of Charlotte, N.C., and Bentley, of New Haven, previously pleaded guilty to the same charge. On April 1, 2015, Neal was sentenced to 18 months of imprisonment. Bentley awaits sentencing.
This matter was investigated by the U.S. Postal Inspection Service, along with the Connecticut Financial Fraud Task Force and the Branford, Madison, Middlebury, Milford, New Britain, New Haven, New Milford, North Branford, Waterbury, Woodbridge and Southbury Police Departments. U.S. Attorney Daly also acknowledged the cooperation and assistance of the State’s Attorney’s Offices for the Judicial Districts of New Haven, Waterbury, Fairfield and Tolland. The case is being prosecuted by Assistant U.S. Attorney Henry K. Kopel.
New Haven Man Admits Role in Drug Robbery SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that HAROLD HARRINGTON, also known as “Chopper” and “Chapo,” 27, of New Haven, pleaded guilty yesterday in Hartford federal court to a federal robbery offense.
This matter stems from “Operation Samson,” a multi-layered initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking. In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.
According to court documents and statements made in court, during the operation, an undercover agent and a confidential informant made several controlled purchases of suspected crack cocaine from Donald Gaines, also known as “Stretch” and “Shorty,” 35, of New Haven. During their contact, the informant asked Gaines if he and anyone he knew would be interested in committing a drug robbery. Gaines stated that he did not want to participate in the robbery itself, but introduced the informant and the undercover agent to Harrington, who claimed to be a member of the Bloods street gang. The undercover agent told Harrington that he wanted to hire someone to commit a home invasion robbery of a drug organization’s “stash house” in order to steal six to eight kilograms of cocaine. Harrington agreed to participate and helped plan the robbery, which would include the use of firearms. Harrington also stated that he would bring members of his crew to help commit the robbery.
The undercover agent and Harrington agreed to split the cocaine taken during the robbery, and they agreed to give Gaines one kilogram of the drug for putting the two individuals together.
On March 21, 2014, the day of the proposed robbery, Harrington arrived at the meeting location with Louis Toler, also known as “A.B.,” 45, of New Haven. After Harrington, Toler and the undercover agent had a detailed discussion about how the robbery was going to be carried out, Harrington and Toler were arrested. A subsequent search of Toler’s car revealed a loaded firearm.
The informant then called Gaines, told him the robbery had gone smoothly and arranged to meet him to deliver the cocaine. When Gaines arrived at the designated location, he identified the law enforcement surveillance and drove off at a high rate of speed. After a short chase, Gaines crashed his car on an off ramp in West Haven, attempted to flee on foot and was apprehended.
Harrington pleaded guilty to one count of conspiracy to interfere with commerce by robbery. At sentencing, Harrington faces a maximum term of imprisonment of 20 years.
On March 5, 2015, Gaines pleaded guilty to the same charge and, on May 1, 2015, Toler pleaded guilty to one count of possession of a firearm by a convicted felon. They also await sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Robert Spector and Tracy Dayton.
Hedge Fund CFO Sentenced to Prison for Fraud SchemeRead the Press Release
RICHARD PEREIRA, 43, the former chief financial officer of New Stream Capital, LLC, a Ridgefield-based hedge fund, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for engaging in a scheme to deceive investors in order to obtain and maintain investments.
According to court documents and statements made in court, in November 2007, New Stream Capital, LLC (“New Stream”) launched new feeder funds, one based in the United States (“U.S. Fund”) and a series of funds based in the Cayman Islands (“Cayman Fund”). New Stream also announced that its existing Bermuda Fund would be closing, and all foreign investors would have to move their investments into the Cayman Fund. Rather than transfer into the new structure, New Stream’s largest investor placed a redemption on its whole investment in the Bermuda Fund in March 2008. At risk of losing their largest investor, PEREIRA and New Stream managing partners David Bryson and Bart Gutekunst set in motion a scheme to secretly keep the Bermuda Fund open and give priority to Bermuda Fund investors in an effort to reverse the redemption.
As part of the scheme, PEREIRA, Bryson and Gutekunst had New Stream staff secretly execute documents to effectuate the Bermuda Fund’s special priority. New Stream failed to inform investors who had transferred from the Bermuda Fund into the Cayman Fund that the Bermuda Fund was remaining open or that it was being given priority over the Cayman Fund. Moreover, New Stream continued to market to investors by concealing from them the magnitude of the actual pending redemptions and by using deceptive marketing materials that failed to disclose the existence of New Stream’s Bermuda Fund.
Through this scheme, New Stream investors were defrauded out of more than $46 million.
From April 2008 to December 2010, Bryson and Gutekunst each collected more than $5 million in management fees and profit sharing while participating in this fraud scheme. In late 2008, PEREIRA received a $700,000 bonus from New Stream.
On May 21, 2014, PEREIRA, Bryson and Gutekunst each pleaded guilty to one count of conspiracy to commit wire fraud.
On May 5, 2015, Bryson was sentenced to 33 months of imprisonment and, on May 6, 2015, Gutekunst was sentenced to 30 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General, with the assistance of the Securities and Exchange Commission. The case was prosecuted by Assistant U.S. Attorneys Liam Brennan and Michael S. McGarry, and Special Assistant U.S. Attorney Sheldon L. Pollock.
Hamden Man Sentenced to 5 Years in Federal Prison for Selling CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JEROME MOYE, 32, of Hamden, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, on six occasions between February and April 2014, MOYE sold crack cocaine to an individual working with law enforcement.
MOYE has been detained since his arrest on August 27, 2014. On February 24, 2015, he pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack”).
MOYE’s criminal history includes multiple felony convictions, including a sexual assault conviction, and numerous violations of probation. He previously served a state prison term of more than three years for a narcotics distribution offense.
This matter was investigated by the Federal Bureau of Investigation and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Peter D. Markle.
Ansonia Man Who Made False Report of Police Brutality to the FBI is SentencedRead the Press Release
EDWARD MINERLY, 52, of Ansonia, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to eight months of imprisonment, followed by three years of supervised release, for making a false report of police brutality to the Federal Bureau of Investigation.
According to court documents and statements made in court, on May 18, 2013, officers with the Derby Police Department arrested MINERLY on an outstanding probation violation warrant. On May 31, 2013, MINERLY called the New Haven FBI and spoke with an FBI special agent. In the call, MINERLY alleged that Derby Police officers had recently arrested him for a probation violation and, upon placing him in a holding cell, commenced taunting him, subjecting him to flashing lights and tipping him backwards out of his wheelchair. MINERLY also alleged that Derby Police officers kicked him in the head, arms and upper body.
On June 6, 2013, an FBI special agent interviewed MINERLY in person at a Bridgeport hospital where MINERLY had been admitted. MINERLY again made allegations similar to those made on May 31, 2013, namely, that Derby Police officers had arrested him and, after placing him in a holding cell, picked him out of his wheelchair, threw him into a wall, flashed the lights on and off, and kicked him in the head and beat him.
MINERLY pleaded guilty on November 18, 2014, admitting that the statements he made to the FBI alleging physical abuse by members of the Derby Police Department after his probation violation arrest were false.
“In making a false report of police brutality, this defendant sought to exploit the Justice Department’s steadfast commitment to investigate and prosecute civil rights abuses by members of law enforcement,” stated U.S. Attorney Deirdre M. Daly. “In addition to taxing federal law enforcement resources, these false reports can irreparably damage the reputation of the wrongly accused police department and its officers. The prison term imposed today is an appropriate penalty for this conduct.”
“Any and all allegations of civil rights violations are taken very seriously by the FBI, stated FBI Acting Special Agent in Charge Kevin James Kline. “We will seek prosecution of anyone who deliberately provides false information that diverts agents and resources from other important matters.”
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Henry K. Kopel and First Assistant U.S. Attorney Michael J. Gustafson.
State Fraud Enforcement Official Arrested, Charged with Wire FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LYNWOOD PATRICK, JR., 39, of East Hartford, was arrested today on a federal criminal complaint charging him with wire fraud in connection with his submission of a fraudulent application for a personal mortgage modification.
PATRICK was arrested this morning at his residence. He appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford and was released on a $150,000 bond.
According to the criminal complaint, PATRICK is employed as the Director of Investigations for the State of Connecticut Department of Social Services, Office of Quality Assurance.
The complaint alleges that, from approximately November 2012 through May 2013, PATRICK applied for a mortgage modification under the Making Home Affordable program, a federal initiative designed to assist homeowners who have experienced a decline in income access secure loans at lower rates. When applying for mortgage relief through JP Morgan Chase, PATRICK fabricated State of Connecticut paystubs and lied about his assets in order qualify for the program. Specifically, PATRICK claimed total assets of $500 in one checking account to show that he had experienced a loss of income causing a hardship when, in fact, he had thousands of dollars spread out over multiple accounts at several institutions and his rate of pay had not diminished.
In his capacity as the Director of Investigations, PATRICK is responsible for coordinating and conducting activities to prevent, detect and investigate fraud, waste, abuse and overpayments in the Connecticut Medicaid, Care4Kids, Supplemental Nutritional Assistance and Connecticut Energy Assistance Programs. PATRICK’s salary is partially paid for by the federal Centers for Medicare and Medicaid Services, which is a federal agency within the U.S. Department of Health and Human Services.
The criminal complaint charges PATRICK with wire fraud, which carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Connecticut Public Corruption Task Force, which includes the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Bureau of Investigation, U.S. Postal Inspection Service and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
Citizens are encouraged to report to corruption to the Connecticut Public Corruption Task Force by calling 1-800-CALL-FBI (1-800-225-5324).
Hedge Fund Executive Sentenced to 30 Months in Prison for Fraud SchemeRead the Press Release
BART GUTEKUNST, 63, of Weston, and a former managing partner and principal of New Stream Capital, LLC, a Ridgefield-based hedge fund, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 30 months of imprisonment, followed by three years of supervised release, for engaging in a scheme to deceive investors in order to obtain and maintain investments.
According to court documents and statements made in court, in November 2007, New Stream Capital, LLC (“New Stream”) launched new feeder funds, one based in the United States (“U.S. Fund”) and a series of funds based in the Cayman Islands (“Cayman Fund”). New Stream also announced that its existing Bermuda Fund would be closing, and all foreign investors would have to move their investments into the Cayman Fund. Rather than transfer into the new structure, New Stream’s largest investor placed a redemption on its whole investment in the Bermuda Fund in March 2008. At risk of losing their largest investor, GUTEKUNST, co-managing partner David Bryson and chief financial officer Richard Pereira set in motion a scheme to secretly keep the Bermuda Fund open and give priority to Bermuda Fund investors in an effort to reverse the redemption.
As part of the scheme, GUTEKUNST, Bryson and Pereira had New Stream staff secretly execute documents to effectuate the Bermuda Fund’s special priority. New Stream failed to inform investors who had transferred from the Bermuda Fund into the Cayman Fund that the Bermuda Fund was remaining open or that it was being given priority over the Cayman Fund. Moreover, New Stream continued to market to investors by concealing from them the magnitude of the actual pending redemptions and by using deceptive marketing materials that failed to disclose the existence of New Stream’s Bermuda Fund.
Through this scheme, New Stream investors were defrauded out of more than $46 million.
From April 2008 to December 2010, GUTEKUNST and Bryson each collected more than $5 million in management fees and profit sharing while participating in this fraud scheme.
On May 21, 2014, GUTEKUNST, Bryson and Pereira each pleaded guilty to one count of conspiracy to commit wire fraud.
On May 5, 2015, Bryson was sentenced to 33 months of imprisonment. Pereira is scheduled to be sentenced tomorrow.
This matter was investigated by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General, with the assistance of the Securities and Exchange Commission. The case is being prosecuted by Assistant U.S. Attorneys Liam Brennan and Michael S. McGarry, and Special Assistant U.S. Attorney Sheldon L. Pollock.
Watertown Resident Pleads Guilty to Role in Bank Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia Ferrick, Special Agent In Charge, Federal Bureau of Investigation, and William Offord, Special Agent in Charge, IRS Criminal Investigation announced that JASON CALABRESE, 43, of Watertown, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to his involvement in a series of fraudulent mortgage loan applications.
According to court documents and statements made in court, in November 2005, CALABRESE’s co-conspirator, Thomas Provenzano, obtained a $923,200 loan to purchase a lakefront home located at 27 Palmer Road in Morris for more than $1.1 million, despite lacking the income to pay off the mortgage. The 27 Palmer Road property was owned by an entity controlled by Ryan Geddes, another co-conspirator. To finance the purchase, Provenzano applied for a mortgage through CALABRESE, who was a mortgage broker. The mortgage loan application contained statements that CALABRESE knew were false, namely, that Provenzano had worked for the past four years as the “General Manager” for a Geddes-owned construction company, and that Provenzano’s income from the listed job was $20,000 per month, or $240,000 per year. In fact, Provenzano’s income was substantially less than that amount. CALABRESE submitted the false loan application to a lender, which issued a $923,000 mortgage. At the closing, CALABRESE’s mortgage company was paid a $32,312 broker’s fee.
In November 2006, Provenzano applied for a new mortgage through CALABRESE to refinance the November 2005 mortgage for the 27 Palmer Road property. The mortgage refinancing application also contained statements that CALABRESE knew were false, namely, that Provenzano had worked for the past five years at Geddes’s construction company, and that Provenzano’s income from the listed job was $28,000 per month, or $336,000 per year. CALABRESE submitted the false loan application to a federally-insured lender, which issued a $936,000 mortgage. At the closing, CALABRESE’s mortgage company was paid an $18,720 broker’s fee.
The 2005 loan application had stated that Provenzano would reside in the 27 Palmer Road property as an owner-occupant. In fact, Geddes and his family continued to reside in the property. For a few years, Geddes paid Provenzano “rent,” which Provenzano used to cover the mortgage payments. But when Geddes moved out of the 27 Palmer Road property, he stopped forwarding payments to Provenzano, who stopped paying the mortgage. Accordingly the 27 Palmer Road property went into foreclosure.
CALABRESE pleaded guilty to one count of conspiracy to commit bank fraud. He is scheduled to be sentenced on July 28, 2015, at which time he faces a maximum term of imprisonment of 30 years. Provenzano and Geddes previously pleaded guilty. On December 1, 2014, Provenzano was sentenced to 18 months of imprisonment. Geddes awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Henry Kopel and Michael Gustafson.
New York Man Sentenced to 35 Months in Prison for Role in Extortion SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EDWARD MEMOLI, 66, of Unadilla, N.Y., was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 35 months of imprisonment, followed by two years of supervised release, for his role in an extortion scheme. Judge Bryant also ordered MEMOLI to pay $26,000 in restitution to the victim of his scheme.
On October 30, 2014, a jury found MEMOLI guilty of one count of conspiracy to obstruct interstate commerce by extortion and one count of aiding and abetting the obstruction of interstate commerce by extortion.
According to the evidence at trial, between approximately September 2010 and December 2011, MEMOLI conspired with Joseph Casolo of Norwalk to extort money from a small business owner in Fairfield County by impersonating organized crime figures. Casolo threatened the victim in person, in phone conversations and in text messages using multiple personas, repeatedly stating or implying that if the victim failed to make the extortion payments, the victim, the victim’s spouse, and the victim’s daughter would be harmed with violence. Casolo enlisted the assistance of MEMOLI, who identified himself as “Lorenzo,” the organized crime family’s “enforcer,” and made at least 20 threatening calls from a restricted telephone number to the victim at Casolo’s direction. At the time, MEMOLI was living in Greenville, South Carolina.
MEMOLI specifically threatened to cause the business owner’s daughter, who was pregnant, to have a miscarriage if the extortion payments were not made.
The investigation revealed that the victim made more than $200,000 in cash payments to Casolo as a result of these threats. Casolo shared a portion of these funds with MEMOLI by sending them to him via Western Union money transfer.
Casolo and MEMOLI also targeted another Fairfield County resident for extortion. Posing as “Lorenzo,” MEMOLI made calls to the victim’s cellular telephone and the victim’s place of work in which MEMOLI made veiled threats to the victim’s wife and two children.
Law enforcement learned of Casolo and MEMOLI only after information regarding their extortion scheme came to light on a court-authorized wiretap investigating genuine organized crime activity in Fairfield County.
Casolo pleaded guilty to one count of extortion and, on October 24, 2013, he was sentenced to 57 months of imprisonment.
MEMOLI was ordered to report to prison on July 10, 2015.
This matter was investigated by the FBI Fairfield County Organized Crime Task Force and the Stamford Police Department, with the assistance of the FBI’s Binghamton Field Office. The case was prosecuted by Assistant U.S. Attorneys Hal Chen and Charles Rombeau.
Manager of Deep River Gun Manufacturer Sentenced for Violating Federal Firearms LawsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RICHARD CUMMINGS, 43, of East Haddam, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to one year of probation and a $1,500 fine for violating federal firearms laws. CUMMINGS worked as a manager at Tri-Town Plastics (“Tri-Town”), a former federally-licensed firearms manufacturer located in Deep River.
“It is critically important for those who are responsible for manufacturing firearms to diligently comply with federal firearms laws throughout the production and distribution process,” stated U.S. Attorney Daly. “These laws exist to ensure that all legal firearms are properly accounted for and don’t wind up in the wrong hands. I commend the ATF and Plainfield Police Department for thoroughly investigating this matter.”
According to court documents and statements made in court, in 2011 and 2012, Tri-Town had a contract with Smith and Wesson to manufacturer firearm frames at its Deep River facility. In February 2012, after the Plainfield Police Department seized a Smith and Wesson 9 millimeter handgun from a residence, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned that Smith and Wesson had no record of the handgun ever having been manufactured. According to Tri-Town’s records, the handgun had been scrapped in March 2011. At that time, ATF was preparing to conduct a routine inspection of Tri-Town to determine whether to renew their federal license to manufacture firearms. Tri-Town had also been inspected in 2009 and been directed by ATF to address some record-keeping issues discovered during that inspection. When CUMMINGS and a Tri-Town employee who was his subordinate discovered that there were approximately 23 firearms missing from their inventory, rather than report them as missing, CUMMINGS directed the employee to falsely list them as “scrapped” in Tri-Town’s acquisition and disposition records so that ATF would not learn that they were missing and would renew Tri-Town’s license.
CUMMINGS admitted that it was his decision to list the firearms as scrapped, at no point prior to the February 2012 Plainfield seizure did he report these firearms as missing or lost and, in February 2012, he failed to correct Tri-Town’s acquisition and disposition records to show the missing firearms.
Later, it was learned that five of the 23 firearms were not, in fact, missing, so that the total number of unaccounted firearms remains 17 (not including the one seized in Plainfield).
On January 21, 2015, CUMMINGS pleaded guilty to one count of making a false entry in a firearms manufacturer’s acquisition and disposition records in March 2011, one count of failing to file a theft/loss report between March 2011 and February 2012, and one count of failing to maintain a firearms manufacturer’s acquisition and disposition records in February 2012.
Smith and Wesson purchased Tri-Town in May 2014 and now owns the facility.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Plainfield Police Department. The case was prosecuted by Assistant U.S. Attorneys Robert M. Spector and Vanessa Richards.
Hartford Man Sentenced to Prison for Manufacturing and Distributing PCPRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KEVIN BETTS, also known as “KK,” 28, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by two years of supervised release, for manufacturing and distributing PCP.
According to court documents and statements made in court, BETTS manufactured Phencyclidine (“PCP”) in his apartment at 57 Sumner Street in Hartford and, on five occasions in July and August 2014, sold the drug out of his apartment to an individual working with law enforcement.
On August 1, 2014, investigators searched the apartment and recovered more than 60 grams of PCP, scales, packaging material, six firearms, approximately 215 rounds of ammunition and a bullet proof vest.
The investigation revealed that BETTS also supplied bullets to several violent gang members who, because of their criminal histories, could not lawfully purchase ammunition on their own.
BETTS was ordered to forfeit the firearms, ammunition and bullet proof vest that were seized on August 1, 2014.
On February 10, 2015, BETTS pleaded guilty to one count of maintaining a drug-involved premises.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. Close associates of BETTS attended a call-in on April 1, 2014, in Hartford, but members of their group were charged with being involved in several shooting incidents since that date.
This ongoing investigation is being conducted by the Hartford Police Department and the FBI’s Northern Connecticut Violent Crimes Task Force. The FBI task force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
Hartford Man Sentenced to 7 Years in Prison for Possessing Sawed-Off Firearm, Bullet Proof VestRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KIEJUAN HAUGABOOK, 35, of Hartford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 84 months of imprisonment, followed by three years of supervised release, for illegally possessing a sawed-off firearm and a bullet proof vest. HAUGABOOK also was ordered to perform 75 hours of community service during his term of supervised release.
According to court documents and statements made in court, in July 2012, HAUGABOOK escaped from a halfway house in Hartford where he had been serving out the end of a nine-year prison term for armed robbery. On February 3, 2014, a parole officer found HAUGABOOK in an apartment in Hartford. Upon entering the apartment, the parole officer noticed a firearm in plain view and contacted the Hartford Police Department. Hartford Police arrived at the apartment and seized a Harrington & Richardson, Model Topper 158, firearm with a sawed-off barrel, as well as ammunition, a Point Blank ballistic vest and a stun gun.
HAUGABOOK’s criminal history includes state convictions for first and third degree robbery, possession of narcotics and carrying a pistol without permit. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce. It is also a violation of federal law for a person previously convicted of a violent felony offense to possess body armor that has moved in interstate commerce.
On February 3, 2015, HAUGABOOK pleaded guilty to one count of possession of a sawed-off firearm by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorneys Ndidi Moses and Anastasia King.
Fairfield County Hedge Fund Executive Sentenced to 33 Months in Federal Prison for Fraud SchemeRead the Press Release
DAVID BRYSON, 46, a former managing partner and principal of New Stream Capital, LLC, a Ridgefield-based hedge fund, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 33 months of imprisonment, followed by three years of supervised release, for engaging in a scheme to deceive investors in order to obtain and maintain investments.
“In an effort to protect their own invested money and to collect more than $5.8 million in additional fees, New Stream executives devised and promoted a series of misrepresentations carefully calculated and designed to keep existing-investors in the dark about the true risk of the fund and to deceptively raise millions of dollars in new investments in an effort to keep their fund viable,” stated First Assistant U.S. Attorney Michael J. Gustafson. “A prison term is an appropriate result for such criminal conduct. I thank the FBI, Department of Labor OIG and SEC for their work in unraveling this scheme.”
“The defendants devised a fraudulent scheme to protect the assets of their largest client at the expense of their other investors,” stated Cheryl Garcia, Special Agent in Charge of the New York Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, U.S. Department of Labor. “One of the investors deceived and victimized by the conspirators was an employer retirement trust covered by the Employee Retirement Income Security Act (ERISA). Employees participating in the trust lost millions of dollars in retirement savings. The Office of Inspector General will continue to work with its law enforcement partners to identify schemes that jeopardize the retirement savings of American workers.”
According to court documents and statements made in court, in November 2007, New Stream Capital, LLC (“New Stream”) launched new feeder funds, one based in the United States (“U.S. Fund”) and a series of funds based in the Cayman Islands (“Cayman Fund”). New Stream also announced that its existing Bermuda Fund would be closing, and all foreign investors would have to move their investments into the Cayman Fund. Rather than transfer into the new structure, New Stream’s largest investor placed a redemption on its whole investment in the Bermuda Fund in March 2008. At risk of losing their largest investor, BRYSON, co-managing partner Bart Gutekunst and chief financial officer Richard Pereira set in motion a scheme to secretly keep the Bermuda Fund open and give priority to Bermuda Fund investors in an effort to reverse the redemption.
As part of the scheme, BRYSON, Gutekunst and Pereira had New Stream staff secretly execute documents to effectuate the Bermuda Fund’s special priority. New Stream failed to inform investors who had transferred from the Bermuda Fund into the Cayman Fund that the Bermuda Fund was remaining open or that it was being given priority over the Cayman Fund. Moreover, New Stream continued to market to investors by concealing from them the magnitude of the actual pending redemptions and by using deceptive marketing materials that failed to disclose the existence of New Stream’s Bermuda Fund.
Through this scheme, New Stream investors were defrauded out of more than $46 million.
From April 2008 to December 2010, BRYSON collected more than $5 million in management fees and profit sharing while participating in this fraud scheme.
On May 21, 2014, BRYSON, Gutekunst and Pereira each pleaded guilty to one count of conspiracy to commit wire fraud.
Gutekunst and Pereira are scheduled to be sentenced on May 6 and May 7, respectively.
This matter was investigated by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General, with the assistance of the Securities and Exchange Commission. The case is being prosecuted by Assistant U.S. Attorneys Liam Brennan and Michael S. McGarry, and Special Assistant U.S. Attorney Sheldon L. Pollock.
U.S. Attorney Daly Appointed to Attorney General's Advisory Committee, National Commission on Forensic ScienceRead the Press Release
U.S. Attorney General Loretta Lynch has appointed Deirdre M. Daly, U.S. Attorney for the District of Connecticut, to the 21-member Attorney General’s Advisory Committee (AGAC). The appointments of U.S. Attorney Daly and five other U.S. Attorneys were effective on April 29, 2015.
The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the Attorney General on policy, management and operational issues impacting the offices of the U.S. Attorneys. There are 93 U.S. Attorney Offices located throughout the United States and its Territories.
“The distinguished women and men who serve on the Attorney General’s Advisory Committee provide invaluable advice and wise counsel that help shape the Justice Department’s approach to combating crime, violence, and injustice in every community across the country,” said Attorney General Lynch. “As a former chair of the AGAC, I am proud to welcome six outstanding new members to the Committee, and I look forward to all that we will achieve, with their help, in the days ahead.”
Daly has also been appointed to serve on the National Commission on Forensic Science, which the Department of Justice established in 2013 to improve the reliability of forensic science. Co-chaired by Acting Deputy Attorney General Sally Q. Yates, the Commission includes federal, state and local forensic science service providers; research scientists and academics; law enforcement officials; prosecutors, defense attorneys and judges; and other stakeholders from across the country.
More information on the National Commission on Forensic Science can be found at www.justice.gov/ncfs
Daly was presidentially appointed and sworn in as the U.S. Attorney for the District of Connecticut on May 28, 2014. Daly previously served as the U.S. Attorney in an acting or interim capacity since May 14, 2013. From July 2010 to May 2013, Daly served as the First Assistant U.S. Attorney and had oversight of both the Criminal and Civil Divisions. From 1985 to 1997, Daly was an Assistant U.S. Attorney in the Southern District of New York, where she prosecuted a wide range of cases from racketeering and murder to corruption and fraud and later served as the Assistant-In-Charge of White Plains Office for three years. After leaving the Justice Department, Daly was a partner at Daly & Pavlis LLC, a Connecticut law firm with a practice focused on corporate and commercial litigation, white-collar criminal investigations, SEC enforcement actions and corporate internal investigations and monitoring.
The U.S. Attorney’s Office for the District of Connecticut is charged with enforcing federal criminal laws in Connecticut, and with representing the federal government in civil litigation in the District. The Office employs approximately 63 Assistant U.S. Attorneys, 51 staff members and eight contractors at offices in New Haven, Hartford and Bridgeport.
Eight Arrested on Federal Steroid and Prescription Narcotic Distribution ChargesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 29 and 30, the FBI, DEA, and HSI, working with the support of the U.S. Marshals Service and the U.S. Postal Inspection Service, arrested eight individuals as part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation dubbed “Operation Juice Box.” The arrests culminated a long-term investigation into steroid and prescription pill distribution by multiple individuals, including a Newtown Police sergeant, a Newtown Police dispatcher and a Connecticut Judicial Marshal. The investigation, which included the use of wire and electronic surveillance for nearly two months, also revealed that members of the conspiracy allegedly imported steroids from China.
The following individuals were arrested on a federal complaint charging them with conspiracy to distribute, and distribution of, various controlled substances including steroids and oxycodone:
STEVEN SANTUCCI, 38, of Waterbury, and a Sergeant with the Newtown Police Department,
ALEX KENYHERCZ, 28, of Ansonia,
MARK BERTANZA, 33, of Shelton,
JASON CHICKOS, 46, of Bridgeport, and a civilian dispatcher with the Newtown Police Department,
FRANK PECORA, 53, of Derby,
JEFFREY GENTILE, 33, of Ansonia, and a Judicial Marshal with the State of Connecticut,
STEVEN FERNANDES, 54, of Southington,
MICHAEL D. MASE, 32, of Sherman
As alleged in the government’s complaint affidavit, which was unsealed in court on April 30, BERTANZA was a steroid distributer who obtained his steroids from KENYHERCZ. Wiretap interceptions over cellular telephones used by BERTANZA and KENYHERCZ, along with physical surveillance of various steroid sales, revealed that SANTUCCI was supplying steroids to KENYHERCZ. Through the investigation, agents learned that SANTUCCI has been receiving shipments of steroids and related materials from China since 2011 and has been manufacturing and distributing wholesale quantities of steroids. SANTUCCI frequently used an application called WhatsApp to communicate with his customers. CHICKOS, MASE and FERNANDES were SANTUCCI’s steroid customers who, in turn, regularly distributed the steroids in smaller quantities to their own customers. KENYHERCZ distributed quantities of steroids and prescription pills (including Roxicodone, Oxycodone, Suboxone and Opana). GENTILE is alleged to be a steroid distributer, and PECORA is alleged to be a prescription pill distributer.
During the course of the investigation, law enforcement officers seized hundreds of vials of steroids, approximately 600 grams of raw testosterone powder, approximately 350 grams of powder cocaine, and four long guns.
“The international importation and sale of mass quantities of steroids in our communities is a serious offense that raises significant public health concerns,” stated U.S. Attorney Daly. “I thank the agents and officers who have dedicated themselves to this difficult case. Through their hard work, they have identified and arrested the source of these steroids, thus preventing further harm to the community.”
“The top criminal investigative program for the FBI is public corruption matters,” stated FBI Special Agent in Charge Patricia M. Ferrick. “When law enforcement officers are involved in criminal activity, it brings a particular sense of urgency to the investigation. While disconcerting, this matter involving a Newtown Police Officer, a Connecticut Judicial Marshal, a Newtown Public Safety Dispatcher and others is not indicative of the fine work and dedication to public service exhibited by the vast majority of those individuals working within the criminal justice and law enforcement community. This ongoing investigation is being conducted in close collaboration between the FBI, the DEA, DHS, the U.S. Marshals Service, the U.S. Postal Inspection Service, and the Newtown Police Department.”
“DEA and our federal, state, and local law enforcement partners are committed to investigating steroid trafficking organizations. We follow these investigations wherever they lead us – and in this case to a police officer,” stated DEA Special Agent in Charge Michael J. Ferguson. “Wearing a shield does not give you a free pass to peddle this poison in our neighborhoods or to our families. This type of criminal behavior does not represent the fine work and dedication to public service that is exhibited by the vast majority of law enforcement officers.”
“These arrests illustrate the ability of our law enforcement partners such as the U.S. Attorney’s Office and other federal agencies to leverage their individual resources to work together and achieve justice,” said Bruce Foucart, HSI Special Agent in Charge of New England. “HSI continues to use its unique customs and immigration authorities to attack and dismantle these types of organizations, and will aggressively pursue leads, regardless of where that information may lead us.”
SANTUCCI, KENYHERCZ, BERTANZA, CHICKOS, GENTILE, FERNANDES and MASE have been released on bond. PECORA remains in federal custody pending a detention hearing on May 5, 2015.
SANTUCCI, BERTANZA, GENTILE, MASE, FERNANDES and CHICKOS, are charged with conspiracy to distribute steroids, which carries a maximum term of imprisonment of 10 years and a fine of up to $500,000. PECORA and KENYHERCZ and charged with conspiracy to distribute oxycodone, which carries a maximum term of imprisonment of 20 years and a fine of up to $1 million.
In announcing these charges, U.S. Attorney Daly stressed that a complaint is only a charge and not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt.
This matter is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.
Doctor Pleads guilty to Illegally Prescribing Oxycodone, Defrauding Government ProgramsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, and Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, today announced that on May 1, 2015, DR. JOHN KATSETOS, 53, of Fairfield, waived his right to indictment and pleaded guilty in Hartford federal court to narcotics distribution and health care fraud offenses stemming from his illegal dispensation of oxycodone and other controlled substances well outside of the scope of accepted medical practice.
“We are committed to uncovering and prosecuting those involved in narcotics distribution regardless of their station in life, and especially anyone who uses their medical license to flood the community with controlled substances that feed addictions and have a corrosive effect on our communities,” said U.S. Attorney Daly.
“The success of this investigation was a direct result of the hard work and dedication of the DEA New Haven Tactical Diversion Squad and our federal, state, and local law enforcement partners,” said DEA Special Agent in Charge Ferguson. “The DEA New England Field Division is committed to investigating those individuals who engage in the illicit distribution of prescription pain killers.”
According to court documents and statements made in court, KATSETOS practiced medicine for more than 20 years, most recently out of offices located at 90 Morgan Street in Stamford and 353 Bridgeport Avenue in Milford. In pleaded guilty, KATSETOS admitted that he failed to perform rudimentary examinations of patients to justify the controlled substances he prescribed, and that he had been warned by a doctor and several pharmacists, some of whom stopped filling his prescriptions, that he should stop prescribing oxycodone and other narcotic pain medications to certain patients who showed obvious signs of addiction. The investigation, which included the use of undercover law enforcement personnel, showed that KATSETOS ignored the warnings and continued to prescribe controlled substances, including oxycodone, to these patients outside of the usual course of professional practice and not for a legitimate medical purpose.
KATSETOS also acknowledged that he saw multiple patients at once and billed Medicare and Medicaid for individual visits for each of those patients.
“As the number of Medicare beneficiaries continues to increase, it is paramount that we work hard to expose unscrupulous providers who treat government health care programs as their personal piggy banks,” said U.S. Attorney Daly.
KATSETOS pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute narcotics, and one count of health care fraud. When he is sentenced by U.S. District Judge Vanessa L. Bryant, KATSETOS faces a maximum term of imprisonment of 30 years and fine of up to $1.25 million.
If the terms of the plea agreement are accepted by Judge Bryant, KATSETOS faces between 48 months and 84 months of imprisonment, $497,789 in restitution, and forfeiture of $550,000, which represents the value of his medical practice.
A sentencing date has not been scheduled.
KATSETOS was arrested on July 1, 2014, and is released on a $1 million bond.
This matter is being investigated by the DEA’s New Haven Tactical Diversion Squad and the Office of Inspector General of the U.S. Department of Health and Human Services, with the assistance of the State of Connecticut Department of Consumer Protection Drug Control Division, and several local police departments. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Alina Reynolds.
U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling 1-800-HHS-TIPS.
Wolcott Man Sentenced to Prison for Participating in Two Criminal SchemesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIEL MONTEIRO, 36, of Wolcott, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 13 months of imprisonment, followed by three years of supervised release, for participating in two separate criminal conspiracies.
On March 20, 2013, MONTEIRO pleaded guilty to one count of conspiracy to make false statements to the FEC and to impede the FEC’s enforcement of federal campaign finance laws. In pleading guilty to this charge, MONTEIRO admitted that participated in a scheme to conceal from the public the true origin of contributions that Roll-Your-Own (“RYO”) smoke shop owners were making to the Chris Donovan for Congress campaign during the 2012 election cycle. During the campaign, MONTEIRO agreed to serve as a conduit for a $2,500 campaign contribution by writing a check in that amount to the campaign and then accepting $2,500 in cash in return. MONTEIRO knew that the purpose of the contributions was to obtain a commitment from Chris Donovan, who at the time was also the Speaker of the Connecticut House of Representatives, to defeat legislation that would strip RYO cigarettes of their tax exempt status. He also understood that the conduit nature of the contribution would prevent the public from drawing a connection between the true source of the contributions and the ultimate failure of any harmful legislation. MONTEIRO further understood that the RYO smoke shop owners had made several additional contributions through other conduits, including his brother and an employee.
On May 21, 2013, MONTEIRO pleaded guilty to one count of conspiracy to commit bank fraud, wire fraud, and money laundering. In pleading guilty to this charge, MONTEIRO admitted that from May to September 2007, he helped recruit two straw borrowers to purchase a total of five houses from co-defendant Filippos Milios, the head of an extensive mortgage fraud conspiracy. MONTEIRO referred these borrowers to Milios knowing that they would not be making down payments on their purchases or living in them as primary residences. Milios used money obtained from the mortgages to pay private lenders. MONTEIRO collected approximately $15,000 in referral fees from Milios, and knew that the fees paid to him were not being disclosed to lenders. Lenders suffered a loss of approximately $783,000 as a result of the five fraudulent transactions in which MONTEIRO was a participant.
MONTEIRO was ordered to forfeit $15,000 and pay restitution in the amount of $783,000.
On January 6, 2015, Milios was sentenced to 97 months of imprisonment for orchestrating the mortgage fraud scheme that involved more than 50 properties and resulted in nearly $5.7 million in losses to lenders.
The conduit campaign contribution conspiracy was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Christopher M. Mattei. The mortgage fraud conspiracy was investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service, and the United States Postal Inspection Service and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorneys David T. Huang and William J. Nardini.
West Hartford Tax Preparer Admits Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William Offord, Special Agent in Charge, IRS Criminal Investigation, today announced that HAI T. LE, 44, of West Hartford, waived his right to indictment and pleaded guilty yesterday in Bridgeport federal court to filing false tax returns.
According to court documents and statements made in court, LE prepared federal income tax returns for individuals in his community, many of whom were family or friends. When undertaking the tax return preparation, LE would typically ask his clients to provide him their prior returns, purportedly so that LE could verify relevant information. LE would prepare the current year return, but also make and keep copies of the prior returns.
In pleading guilty, LE admitted that after certain clients received the current year refund, he would improperly use the prior returns to prepare false amended returns purportedly on behalf of his clients. The amended returns included false information, including unwarranted residential energy credits, education credits, and tuition and fees deductions, and incorrectly reflected that the taxpayer was entitled to an additional refund. Unbeknownst to his clients, LE filed the amended returns with the Internal Revenue Service and included his own residence as the return address. In most cases, the IRS sent a refund check to the listed address. LE then endorsed his client’s name and his own on the reverse of the check to make it appear that the check had been signed over to him. He then deposited the check into one of his bank accounts and used the funds for living expenses and the purchase of a $50,000 Certificate of Deposit.
Between March 2010 and August 2010, LE prepared and filed 28 fraudulent federal amended tax returns, utilizing his clients’ information without their knowledge in order to obtain a total of $138,826 in refunds. Six refunds totaling $32,752 were stopped prior to a check being issued, resulting in an actual loss to the IRS of $106,074.
LE pleaded guilty to three counts of filing a false claim with the Internal Revenue Service. He is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on September 1, 2015, at which time he faces a maximum term of imprisonment of 15 years, a fine of up to $250,000, and full restitution.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Litchfield Resident Pleads Guilty to Multiple Fraud ConspiraciesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia Ferrick, Special Agent In Charge, Federal Bureau of Investigation, and William Offord, Special Agent in Charge, IRS Criminal Investigation announced that RYAN GEDDES, 43, of Litchfield, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to multiple conspiracies involving a series of real estate transactions intended to shield assets from creditors.
According to court documents and statements made in court, GEDDES had accrued a series of debts as of late 2005, and was the subject of various lawsuits and collection efforts for the next several years. A bank fraud conspiracy commenced in November 2005 when GEDDES sold a lakefront home located at 27 Palmer Road in Morris to Thomas Provenzano. Lacking the funds to qualify for the $923,000 mortgage, Provenzano nonetheless obtained the loan based on an application that falsely listed his income as $20,000 per month, or $240,000 annually, and falsely listed his employment as the Operations Manager for one of GEDDES’s construction companies. Provenzano was not employed at all by GEDDES. The loan application also listed GEDDES’s company as having verified Provenzano’s employment. In November 2006, Provenzano refinanced the loan, obtaining a $936,000 mortgage from a federally insured bank. The new loan application, like the prior one, falsely listed Provenzano as employed by GEDDES’s construction company, and falsely listed his monthly income as $28,000, or $336,000 annually. The application again listed GEDDES’s company as having verified Provenzano’s employment. The loan is now in default, and the 27 Palmer Road property is in foreclosure.
The first of two mail and wire fraud conspiracies commenced in December 2009 and January 2010, in a series of discussions among GEDDES, Provenzano, and others about how to defraud a title insurance company. The discussions focused on conducting a real property transfer based on a deliberately defective title search, in which liens against the property are omitted, and title insurance is obtained based on the defective title search report. Later, a fraudulent claim is lodged against the title insurer. The conspirators decided to attempt the scheme on a property controlled by GEDDES, located at 66 Donahue Road Extension in Litchfield. After Provenzano assisted in a title search, GEDDES personally reviewed the report and crossed off several liens to be omitted from the title insurance application. In March 2010 GEDDES arranged a straw transfer of the property to another individual, while continuing to reside in and pay the mortgage and expenses on the property. Title insurance was issued on the property, with five liens, totaling about $990,000, deliberately omitted from the title search report.
The second of two mail and wire fraud conspiracies commenced in May 2009 when GEDDES arranged to transfer another property of his, located in Old Forge, N.Y., to Dustin Whitten. GEDDES continued to use the property and pay the mortgage and maintenance expenses. In March 2011, GEDDES and Whitten arranged to obtain a home insurance policy on the New York property in Whitten’s name. On July 4, 2011, after a bankruptcy court meeting about seeking to compensate GEDDES’s creditors, the New York property was destroyed in a fire. In September 2011, Whitten swore out an insurance claim on the property, representing himself as the owner and seeking compensation in the respective amounts of $515,038.50 for the destroyed structure and $92,974.47 for personal property allegedly lost in the fire. The claim was eventually denied by the insurance company. In pleading guilty, GEDDES admitted that the purpose of the scheme was to shield the insurance proceeds from his creditors.
GEDDES pleaded guilty to one count of conspiracy to commit bank fraud and two counts of conspiracy to commit mail and wire fraud. Judge Arterton scheduled sentencing for July 21, 2015, at which time GEDDES faces maximum term of imprisonment of 70 years and a fine of up to $1.5 million.
Provenzano and Whitten previously pleaded guilty. On December 1, 2014, Provenzano was sentenced to 18 month of imprisonment. Whitten awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Henry Kopel and Michael Gustafson.
Former FCI Danbury Employee Admits Role in Bribery SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that KISHA PERKINS, 43, of Waterbury, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to participating in a bribe scheme at the Federal Correctional Institution in Danbury (FCI Danbury) where she was employed.
“There is no tolerance for corrupt employees within the ranks of the Bureau of Prisons,” stated U.S. Attorney Daly. “Prison officials, like this defendant, will be held accountable in federal court. I commend the FBI and the Department of Justice’s Office of the Inspector General for their diligence in uncovering this corrosive bribery scheme. The U.S. Attorney’s Office and our investigative partners are committed to rooting out corruption at all levels of government.”
According to court documents and statements made in court, PERKINS was employed as a case manager at FCI Danbury. After receiving information about an alleged scheme to solicit and collect cash bribes from FCI Danbury inmates in exchange for a recommendation that inmates be released early to “halfway houses,” federal law enforcement initiated an undercover operation. As part of the operation, another FCI Danbury employee, working in an undercover capacity, told PERKINS about a scheme in which an inmate was purporting to make a cash payment in exchange for the inmate’s early release to a halfway house. In pleading guilty, PERKINS admitted to having participated in that scheme and also admitted that, in February 2014, she agreed to accept a pair of shoes or a Louis Vuitton pocketbook in return for aiding in the commission of the scheme by counseling the employee regarding the bribe scheme and failing to report the bribe scheme to prison officials.
PERKINS was arrested on March 14, 2014.
PERKINS pleaded guilty to one count of acceptance of a bribe by a public official, an offense that carries a maximum term of imprisonment of 15 years and a fine of up to $250,000. She is scheduled to be sentenced on July 21, 2015.
This matter is being investigated by the Federal Bureau of Investigation and the Department of Justice Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Susan Wines.
New York Man Pleads Guilty to Federal Extortion ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ERNEST SYKU, 44, of the Bronx, N.Y., pleaded guilty today before U.S. District Judge Robert N. Chatigny in Hartford to a federal extortion charge.
According to court documents and statements made in court, SYKU and Robert Francella, also known as “Bobby Fingers,” of Yonkers, N.Y., threatened a Connecticut resident with violence in order to induce the victim to pay an alleged $240,000 debt. SYKU claimed that this debt was owed to SYKU’s deceased uncle. On one occasion, SYKU told the victim that SYKU was “the one who can break you in many pieces.” SYKU further told the victim “to have mercy on yourself” if the victim did not bring SYKU the money. On another occasion, SYKU provided his cellular telephone to Francella, who left a threatening voice mail for the victim.
SYKU and Francella were arrested on March 13, 2014.
After he was arrested, SYKU confessed to law enforcement that he had directed Francella to scare the victim into paying the alleged debt.
SYKU pleaded guilty to one count of attempted collection of extension of credit by extortionate means, which carries a maximum term of imprisonment of 20 years and a fine of up to $250,000. Judge Chatigny scheduled sentencing for July 15, 2015.
Francella pleaded guilty on November 17, 2014. He awaits sentencing.
This matter was investigated by the FBI Fairfield County Organized Crime Task Force and the Bridgeport Police Department. This case is being prosecuted by Assistant U.S. Attorneys Hal Chen and Heather Cherry.
Former Controller of Greenwich Hedge Fund Sentenced to 4 Years in Prison for Embezzling More Than $9 MillionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 24, 2015, LAWRENCE J. HERZING, 45, of Greenwich, was sentenced by U.S. District Judge Jeffrey Alker Meyer in Bridgeport to 48 months of imprisonment, followed by three years of supervised release, for embezzling more than $9 million from the hedge fund where he was employed.
According to court documents and statements made in court, HERZING was employed as the controller of Greenwich-based Contrarian Capital Management, L.L.C. On 32 occasions between 2004 and 2013, HERZING used his position to wire $9,202,417.54 from his employer to accounts that he controlled.
Judge Meyer ordered HERZING to pay full restitution. HERZING has forfeited his residence and funds seized from his accounts, totaling more than $5 million.
HERZING was arrested on October 29, 2014. On January 29, 2015, he pleaded guilty to one count of wire fraud.
This matter was investigated by the Federal Bureau of Investigation, with the assistance of the Greenwich Police Department. The case was prosecuted by Assistant U.S. Attorneys Heather Cherry and Jonathan Francis.
Former Chief of Staff to House Republican Minority Leader Admits Profiting by Steering Campaign BusinessRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GEORGE GALLO, 46, of East Hampton, waived his right to indictment and pleaded guilty today before U.S. District Judge Vanessa L. Bryant in Hartford to one count of mail fraud related to his receipt of more than $100,000 from a political campaign direct mail company to which he steered business.
According to court documents and statements made in court, GALLO was an employee of the State of Connecticut as the Chief of Staff to the Minority Leader of the Connecticut House of Representatives. As part of his responsibilities, GALLO was responsible for designing and overseeing the campaign program of the House Republican Campaign Committee (“HRCC”), a state-registered political action committee that provides material and strategic support to Republican candidates for the Connecticut House of Representatives.
In 2008, GALLO and others developed a HRCC campaign program in anticipation of the first general election cycle in which candidates seeking election to the Connecticut General Assembly or statewide office would receive public financing through the state’s Citizens’ Election Program (“CEP”). The purpose of the new program, in part, was to enable the HRCC to centrally coordinate CEP funded campaigns by providing Republican House candidates with access to comprehensive campaign related services, including direct mail services, voter information, polling, messaging advice and campaign management. GALLO selected the campaign service vendors that were permitted to participate in the HRCC program.
In pleading guilty, GALLO admitted that he informed an employee of a Florida-based company that provided direct mail services to political campaigns of a new business opportunity in Connecticut. GALLO indicated to the employee that the CEP would lead to greater numbers of well-funded Republican House candidates in need of direct mail services, and that the Florida company could serve as a HRCC sponsored vendor with access to CEP funded Republican candidates. In exchange, the company would make payments to GALLO equal to 10 percent of the revenue that the company received from candidates participating in the HRCC program. GALLO indicated to the employee that such an arrangement would be “good for [the company] and good for George Gallo.” The employee agreed to GALLO’s proposal.
As part of the scheme, GALLO and the HRCC hosted “campaign schools” for House Republican candidates where HRCC sponsored vendors, including the Florida company, gave presentations marketing their services. GALLO and others arranged for candidates to meet individually with the Florida company to discuss in greater detail the company’s services, prices and a direct mail plan. These meetings occurred at several locations, including the State Capitol.
During the 2008 and 2012 election cycles, GALLO made false representations to the Minority Leader of the Connecticut House of Representatives that he did not have a financial relationship with or receive any compensation from any of the HRCC sponsored vendors. During the 2008, 2010 and 2012 election cycles, GALLO made additional false representations to others, knowing that his statements would be communicated to House Republican candidates participating in the HRCC campaign program, that he did not receive any compensation from any HRCC sponsored vendor.
From 2008 through 2012, the Florida company mailed checks made payable to the Vinco Group, a Cromwell based limited liability company in which GALLO was the sole member, totaling approximately $117,266.63.
In pleading guilty, GALLO further admitted that he made multiple false statements to FBI special agents on October 1, 2013, when he was interviewed about his relationship with HRCC sponsored vendors. In the interview, GALLO denied that either he or the Vinco Group had a business relationship with any vendors utilized by HRCC, and he denied that he had received any income through the Vinco Group since becoming Chief of Staff to the Connecticut House Minority Leader.
Judge Bryant scheduled sentencing for July 29, 2015, at which time GALLO faces a maximum term of imprisonment of 20 years.
Follow his guilty plea, GALLO was released on a $200,000 bond.
This matter is being investigated by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division, with the assistance of the Connecticut Public Corruption Task Force and the State Election Enforcement Commission. The case is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
West Haven Man Admits to Bribing Former Executive of the West Haven Housing AuthorityRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CEASAR ANQUILLARE, 87, of West Haven, waived his right to indictment and pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to paying nearly $300,000 in bribes to the former Executive Director of the West Haven Housing Authority in exchange for government contracts and business.
According to court documents and statements made in court, Michael Siwek was the executive director of the West Haven Housing Authority (“WHHA”), an agency that received federal funding. As parties of his duties, Siwek had substantial discretion over awarding WHHA business and contracts. From about February of 2007 through February of 2012, Siwek knowingly received bribes from individuals, including ANQUILLARE, in order to award them business with WHHA and the entities that the housing authority controlled. SIWEK received approximately $1.5 million in bribes, with about $290,000 coming from ANQUILLARE in connection with accounting services that ANQUILLARE’s firm provided to the WHHA.
ANQUILLARE pleaded guilty to one count of conspiracy to commit bribery in connection with a program receiving federal funds, which carries a maximum term of imprisonment of five years. Judge Shea has scheduled sentencing for July 15, 2015. As part of his plea, ANQUILLARE has agreed to restitution in the amount of $ 291,033.91.
On September 4, 2014, Siwek pleaded guilty to related charges and awaits sentencing.
U.S. Attorney Daly stated that the investigation is ongoing.
This matter is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah Karwan.
Newington Woman Sentenced to Two and a Half Years in Prison for Participating in Extensive Mortgage Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MALGORZATA KARAS-GOLKA, also known as “Margaret,” 46, of Newington, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 30 months of imprisonment, followed by five years of supervised release, for her role in an extensive mortgage fraud conspiracy. She was also ordered to pay $166,500 in restitution.
According to court documents and statements made in court, from approximately June 2005 to July 2010, KARAS-GOLKA, Filippos Milios, and others conspired to defraud banks and mortgage lenders in obtaining dozens of mortgages for the sale of properties owned by Milios, KARAS-GOLKA and others. The conspiracy involved the use of straw borrowers, false mortgage applications, false HUD-1 forms and fraudulent down payments in connection with the purchase of nearly 50 houses primarily located in Hartford, New Haven and Middlesex counties.
As part of the scheme, Milios purchased properties, either in his own name, in a limited liability corporation in which he had an interest, or with KARAS-GOLKA. Unbeknownst to the lenders who extended mortgages to the borrowers, KARAS-GOLKA submitted fraudulent documents in connection with the loan applications, including false HUD-1 forms, employment verification letters, and rental verification letters.
Many of the properties involved in the scheme ended up in foreclosure and lenders lost a total of approximately $5.6 million.
KARAS-GOLKA directly participated in nine fraudulent real estate transactions over a two-year period. She falsely acted as a borrower, seller, landlord, and employer.
On November 5, 2014, KARAS-GOLKA pleaded guilty to one count of bank fraud.
Former attorney Gabriel Serrano, who performed many of the real estate closings as part of the conspiracy, and Carmelinda Marotta, who helped flip and sell some properties, previously entered guilty pleas for their participation in the mortgage fraud scheme. Both await sentencing.
This matter was investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service – Criminal Investigation Division, the Federal Bureau of Investigation, and the United States Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorneys David T. Huang and William J. Nardini.
Thomaston Man Pleads Guilty to Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia Ferrick, Special Agent In Charge, Federal Bureau of Investigation, and William Offord, Special Agent in Charge, IRS Criminal Investigation announced that DUSTIN WHITTEN, 32, pleaded guilty on Friday, April 17, 2015, before U.S. District Judge Janet Bond Arterton in New Haven to conspiracy to commit mail and wire fraud.
According to the documents and statements presented in Court, in May 2009, an alleged co-conspirator of WHITTEN’s transferred to WHITTEN a residential property located in Old Forge, New York, while the co-conspirator continued to use the property and pay the mortgage and maintenance expenses. At the time, the co-conspirator was being sued by a creditor who was seeking to collect a debt and identify the co-conspirator’s assets. In March 2011, WHITTEN and the co-conspirator made arrangements for an insurance company to issue a policy on the New York property in WHITTEN’s name. On July 4, 2011, after a bankruptcy court meeting about compensating the co-conspirator’s creditors, the New York property was destroyed in a fire. In September 2011, WHITTEN swore out an insurance claim on the property, representing himself as the owner and seeking compensation of $515,038.50 for the destroyed structure and $92,974.47 for personal property allegedly lost in the fire.
The claim was eventually denied by the insurance company. WHITTEN acknowledged that the co-conspirator, and not WHITTEN, was the true owner of the property, and that a goal of the scheme was to shield the anticipated insurance payout from the co-conspirator’s creditors.
WHITTEN is scheduled to be sentenced on July 13, 2015, before Judge Arterton. He faces maximum penalties of twenty years of imprisonment and a fine of $250,000. Other defendants in the case are scheduled to commence trials on June 4 and August 3, 2015.
This matter is being investigated by the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys Henry K. Kopel and Michael J. Gustafson.
Stamford Pharmacy to Pay $45,000 to Settle Allegations Under the Controlled Substances ActRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that Stamford Pharmacy, located at 1055 High Ridge Road in Stamford, has entered into a civil settlement with the government to resolve allegations that it violated civil provisions of the Controlled Substances Act. Stamford Pharmacy has agreed to pay a total of $45,000.
The allegations against Stamford Pharmacy include claims that they failed to promptly file theft and loss reports of controlled substances with the DEA in at least 17 separate instances as required by law, and that they failed to keep current, complete, and accurate controlled substance records of each controlled substance purchased and dispensed.
Congress, with the passage of the Controlled Substances Act, took steps to create “a closed system” of distribution for controlled substances in which every facet of the handling of the substances, from their manufacture to their consumption by the ultimate user, was to be subject to intense governmental regulation. This mission was taken against the backdrop of trying to prevent the diversion and abuse of legitimate controlled substances while at the same time ensuring an adequate supply of those substances needed to meet the medical and scientific needs of the United States.
This investigation was conducted by investigators from the Drug Enforcement Administration’s Office of Diversion Control in Rocky Hill, and the State of Connecticut, Department of Consumer Protection, Drug Control Division. The prosecution was led by Assistant U.S. Attorney Alan M. Soloway.
Woodstock Man Sentenced to 12 Years in Prison for Child Pornography OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RYAN HARDING, 29, of Woodstock, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 144 months of imprisonment, followed by 15 years of supervised release, for receiving and possessing child pornography.
According to court documents and statements made in court, between July 16, 2013 and October 30, 2013, HARDING received images and videos of child pornography that he downloaded from individuals via the Internet using a peer-to-peer file sharing program. During a search of the residence on October 30, 2013, law enforcement officers seized computers and a thumb drive. Forensic analysis of HARDING’s computers and thumb drive revealed more than 600 image files and videos of child pornography. He also possessed images of a partially naked 13-year old boy that he knew.
On November 20, 2014, HARDING pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography.
After his arrest on November 26, 2013, HARDING was released on bond and placed on home confinement with GPS monitoring. At the conclusion of today’s sentencing proceeding, he was remanded to custody to begin serving his sentence
This matter was investigated by Homeland Security Investigations and the Connecticut State Police Computer Crimes Unit. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Pennsylvania Man Sentenced to More Than 14 Years in Prison for Kidnapping, Jewelry Store RobberyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WILLIAM DAVIS, 27, of Allentown, Pa., was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 176 months of imprisonment, followed by five years of supervised release for his involvement in a violent kidnapping and jewelry store robbery in April 2013.
According to court documents and statements made in court, at approximately 9:00 p.m. on April 11, 2013, DAVIS and three other men, all of whom were wearing masks and gloves and two of whom were armed with handguns, broke into an apartment on Gravel Street in Meriden, Conn., bound four victims with duct tape and covered their heads with pillowcases, towels and jackets. DAVIS and others then forced two of the victims into a victim’s vehicle and drove to Lenox Jewelers in Fairfield, Conn., where the two victims worked. At the store, the perpetrators stole jewelry, watches and loose diamonds with a total replacement value of more than $3 million. They then fled in the victim’s car, leaving the two victims bound inside the store.
DAVIS was arrested at his Allentown residence on May 22, 2013. On that date, a search of his residence revealed approximately $65,000 in cash, seven expensive watches, several pieces of diamond encrusted jewelry and a large quantity of crack cocaine.
DAVIS was ordered to pay restitution of more than $3.1 million
DAVIS has been detained since his arrest. On December 15, 2014, he pleaded guilty to one count of interference with commerce by robbery and one count of use of a firearm during and in relation to a crime of violence.
Four other men have been charged with participating in this kidnapping and robbery. Two have pleaded guilty and await sentencing, and two are awaiting trial.
This matter is being investigated by the U.S. Marshals Service, Federal Bureau of Investigation, Fairfield Police Department and Meriden Police Department. U.S. Attorney Daly also acknowledged the assistance provided by the U.S. Marshals Service and FBI in New York and Pennsylvania; the York, Allentown and Bethlehem Police Departments in Pennsylvania, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
This case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
New Haven Man Sentenced to 30 Months in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAQUAN PRICE, 24, of New Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on May 27, 2014, PRICE was arrested on state drug charges. A subsequent search of PRICE’s residence revealed a Jimenez Arms, 9mm pistol, loaded with 8 rounds of ammunition, which was seized from his bedroom.
In August 2011, PRICE was convicted in state court of possession with intent to distribute narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition or ammunition that have moved in interstate or foreign commerce.
PRICE has been detained since June 18, 2014. On August 21, 2014, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, New Haven Police Department and Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Peter D. Markle.
Manchester Man Charged with Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT GENTILE, 78, of Manchester, was arrested today and charged by federal criminal complaint with firearm offenses.
GENTILE appeared today before U.S. Magistrate Judge Thomas P. Smith in Hartford and is detained pending a hearing that is scheduled for April 20 at 10:00 a.m.
As alleged in the criminal complaint, on March 2, 2015, GENTILE sold a .38 Colt Cobra revolver, which was loaded with five rounds of Smith & Wesson .38 Special ammunition, to an individual he knew to be a convicted felon
The complaint further alleges that GENTILE has been previously convicted of multiple felony offenses.
The complaint charges GENTILE with possession of ammunition by a previously convicted felon, and sale of a firearm to a known convicted felon. Both charges carry a maximum term of imprisonment of 10 years.
According to statements made in court, GENTILE is on supervised release from a prior federal conviction. If he is found to have violated the terms and conditions of his supervised release, he faces additional penalties.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney John H. Durham.
Hartford Heroin Trafficker Sentenced to Three Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALVARO ALVARADO, 27, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 36 months of imprisonment, followed by two years of supervised release, for trafficking heroin.
This matter stems from a joint investigation into heroin trafficking to combat the dramatic increase in heroin overdoses in Connecticut.
According to court documents and statements made in court, in March 2014, law enforcement made two controlled purchases of heroin from ALVARADO at his apartment building on Webster Street in Hartford. On March 26, 2014, a court authorized search of ALVARADO’s apartment revealed approximately 700 grams of heroin, a small amount of cocaine, and approximately $3,200 in cash.
Seven hundred grams of heroin can produce approximately 28,000 individual dose bags when packaged for resale.
ALVARADO has been detained since his arrest on March 26, 2014. On January 15, 2015, he pleaded guilty to one count of possession with intent to distribute 100 grams or more of heroin.
This matter was investigated by the Drug Enforcement Administration and Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Brian Leaming.
Dentist Involved in Medicaid Fraud Scheme Pleads GuiltyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MEHRAN ZAMANI, DDS, 50, of Pound Ridge, N.Y., pleaded guilty today in Hartford federal court to a federal health care fraud offense stemming from a multimillion Medicaid fraud scheme.
According to court documents and statements made in court, the Medicaid program is a joint federal-state program that provides funds for medical services to lower-income individuals who qualify for benefits. The program is jointly administered by the U. S. Department of Health and Human Services and supervised by the Centers for Medicare and Medicaid Services. In Connecticut, the Medicaid program is administered by the Connecticut Department of Social Services.
In the fall of 2008, ZAMANI was hired by Gary Anusavice to work as a dentist at Landmark Dental, a dental practice in West Haven that Anusavice had opened earlier in the year. At the time, Anusavice was a convicted felon, former dentist, and excluded Medicaid provider. Although Anusavice remained the primary decision maker for the business, ZAMANI became the dentist whose name and license were used as the front for the practice.
In approximately January 2009, ZAMANI signed an application for Landmark Dental to become a Medicaid provider. The application failed to disclose that Anusavice had an ownership interest in Landmark Dental, that he was subject of prior disciplinary and criminal actions, and that he was excluded from the Medicaid program. Even though ZAMANI was aware of Anusavice’s disciplinary history, ZAMANI subsequently signed Medicaid provider applications for two other dental practices operated by Anusavice, Dental Group of Stamford and Dental Group of Connecticut in Trumbull. Both applications also failed to disclose Anusavice’s background and involvement in the practices.
Pursuant to these fraudulent provider applications, from approximately January 2009 to March 2011, ZAMANI submitted or caused to be submitted numerous claims to Connecticut Medicaid pursuant to which Medicaid reimbursement payments were made.
As a result of this fraud, the Connecticut Medicaid program reimbursed Anusavice’s dental practices nearly $21 million.
ZAMANI pleaded guilty to one count of obstructing the administration of a federal health care program. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on July 6, 2015, at which time he faces a maximum term of imprisonment of three years.
In March 2015, ZAMANI signed a settlement agreement that resolved pending civil matters with the U.S. Attorney’s Office and the State of Connecticut, Office of the Attorney General. Under the terms of the settlement agreement, ZAMANI agreed to pay $200,000, forfeit a dental office he owned at 18 Madison Street in Hartford, and give up all rights to approximately $1.9 million in Medicaid dollars that had been suspended by the Connecticut Department of Social Services.
ZAMANI also agreed to be excluded from all federal health care programs for a period of 10 years.
On June 3, 2013, Anusavice pleaded guilty to health care fraud and tax evasion offenses stemming from his involvement in this scheme. On October 9, 2013, he was sentenced to 97 months of imprisonment. In addition, he was ordered to pay restitution of more than $5.2 million, and back taxes of more than $1.8 million, plus applicable interest and penalties. He also forfeited his Rhode Island residence, a 33-foot yacht, a Mercedes Benz automobile and approximately $91,700 in cash.
Anusavice also has agreed to pay the state $9.9 million, which represents treble damages under the Connecticut False Claims Act and restitution under the Connecticut Unfair Trade Practices Act.
This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Internal Revenue Service-Criminal Investigation, and the Federal Bureau of Investigation. The Connecticut Attorney General’s Office provided assistance and cooperation throughout the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Susan Wines and Richard Molot.
U.S. Attorney Daly encourages individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at (203) 777-6311 or 1-800-HHS-TIPS.
Woodbridge Man Sentenced to 51 Months in Prison for Stealing More Than $1 Million from Milford CompanyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GIOVANNI MASUCCI, also known as John Masucci, 44, of Woodbridge, was sentenced today by U.S. District Judge Jeffrey A. Meyer in Bridgeport to 51 months of imprisonment, followed by three years of supervised release, for stealing more than $1 million from a Connecticut company.
According to court documents and statements made in court, MASUCCI operated a financial consulting business in North Haven. As part of his business, he provided financial consulting services to a company located in Milford and had access to the company’s checkbooks and financial ledgers. From approximately September 2011 to February 2014, MASUCCI defrauded the Milford company by diverting company funds to his own bank account. He also wrote checks from the company’s bank account to pay his personal credit card bills and the credit card bills of a personal acquaintance. As part of the scheme, MASUCCI created false entries in the corporate check ledger that falsely indicated the checks were written for legitimate business purposes, and he typically forged the signature of the authorized company representative on the checks. In order to conceal his crime, MASUCCI took the company’s check book.
The investigation revealed that MASUCCI used the stolen funds to pay for domestic and international travel, lodging, and to make purchases at several high-end retailers.
Judge Meyer ordered MASUCCI to pay restitution of at least $1.16 million. A final restitution order will be issued after further court proceedings.
MASUCCI was arrested on July 13, 2014. On November 13, he pleaded guilty to one count of wire fraud.
This matter was investigated by the Connecticut Financial Crimes Task Force, the United States Secret Service and the Greenwich Police Department. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
Danbury Restaurant Owner Pleads Guilty to Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, announced that AGOSTINO INCORVAIA, 47, of Danbury, waived his right to indictment and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of tax evasion.
According to court documents and statements made in court, from 2007 to 2012, INCORVAIA failed to report to the Internal Revenue Service approximately $2.65 million in gross receipts generated by “Augie’s Numero #1,” a restaurant he operates in Danbury.
During the investigation of this matter, INCORVAIA admitted to an undercover IRS agent that he understated the restaurant’s gross receipts on his income tax returns and provided false numbers to his accountant, that he had a large group of “off the books” employees, and that a portion of the unreported receipts supported his business interests and properties, including those in the Dominican Republic. INCORVAIA’s admissions, which were recorded, were corroborated by the restaurant’s “point of sale” system that was seized pursuant to a search warrant.
In pleading guilty, INCORVAIA admitted that he evaded payment of income taxes when filing his joint income tax returns for the 2007 through 2011 tax years.
Judge Bolden scheduled sentencing for July 7, 2015, at which time INCORVAIA faces a maximum term of imprisonment of five years and a fine of up to $100,000. As part of his guilty plea, INCORVAIA has agreed to pay $396,650 in back taxes, as well as interest and penalties.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Hal Chen.
Florida Man Sentenced to More Than 8 Years in Prison for Multimillion Dollar Drug TheftRead the Press Release
AMAURY VILLA, 40, a citizen of Cuba last residing in Miami, Florida, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 98 months of imprisonment, followed by three years of supervised release, for his role in the theft of pharmaceuticals from an Eli Lilly Company warehouse and storage facility in Enfield, Conn. Judge Arterton ordered the sentence to run concurrently with a 140-month sentence that VILLA is serving on a related federal conviction.
According to court documents and statements made in court, in early 2010, AMAURY VILLA, Amed Villa, Yosmany Nunez and Alexander Marquez planned to steal pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield. Prior to the theft, AMAURY VILLA and Nunez traveled from Florida to Connecticut to gather information about the warehouse facility and the surrounding area. Shortly before the theft, Amed Villa and Rafael Lopez traveled to Flushing, N.Y., where they purchased tools needed to break into the warehouse facility, and then traveled to Connecticut.
In the evening of March 13, 2010, individuals involved in the theft dropped off a ladder in the rear parking lot of the warehouse facility and left. That same night, Marquez drove a tractor trailer to the facility. Thereafter, AMAURY VILLA and Amed Villa carried the ladder to the building, checked for security in the front area, climbed onto the roof, used the tools Amed Villa and Lopez had purchased to cut a hole in the facility roof, dropped down into the facility and disabled the alarm system. AMAURY VILLA, Amed Villa and Nunez then loaded more than 40 pallets of pharmaceuticals into the tractor trailer, which had been backed up to the loading dock of the warehouse.
The pallets of pharmaceuticals included thousands of boxes Zyprexa, Cymbalta, Prozac, Gemzar and other medicines, valued between $50 and $100 million.
The individuals who participated in the theft split up in Connecticut. Marquez then drove the tractor trailer to Florida, where he subsequently reunited with AMAURY VILLA, Amed Villa and Nunez so the pharmaceuticals could be transferred from the tractor trailer into self-storage units in the Miami area.
On October 14, 2011, law enforcement authorities searched a storage facility in Florida and recovered pharmaceuticals that had been stolen from the Enfield warehouse.
Judge Arterton ordered VILLA to pay restitution in the amount of $60,994,213.
VILLA has been detained since his arrest on May 3, 2012. On May 2, 2014, he pleaded guilty to one count of conspiracy, four counts of theft from an interstate shipment, and one count of interstate transportation of stolen property.
VILLA previously pleaded guilty in the Southern District of Florida to conspiracy and possession of stolen goods charges and, on November 26, 2012, he was sentenced to 140 months of imprisonment.
Amed Villa pleaded guilty in the District of Connecticut to conspiracy and theft charges related to the Enfield theft and his participation in multimillion dollar warehouse burglaries in Illinois, Virginia, Florida and Kentucky. He awaits sentencing.
Nunez, Marquez and Lopez pleaded guilty in the District of Connecticut and have been sentenced.
This matter is being investigated by the Federal Bureau of Investigation and the Enfield Police Department, with the assistance of several other U.S. Attorney’s Offices and federal, state and local law enforcement agencies that have been investigating large-scale thefts of pharmaceuticals and other products.
The case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and Douglas P. Morabito.
New London Man Sentenced to 30 Months in Prison for Distributing CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EDGARDO CENTENO, 43, of New London, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 30 months of imprisonment, followed by three years of supervised release, for distributing cocaine.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that certain members of the conspiracy coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States. Other members of the conspiracy obtained kilogram-quantities of cocaine in Puerto Rico and then mailed the drug to locations in and around New London where it was sold to distributors and customers. Narcotics also were obtained from sources in New York City and Rhode Island.
CENTENO regularly purchased cocaine from Juan G. Cheverez, also known as “Guinchi,” who had received the drug from individuals in Puerto Rico via the U.S. Mail. CENTENO then sold cocaine in smaller quantities to his own customers.
On August 20, 2014, CENTENO pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine.
On February 18, 2015, Cheverez was sentenced to 77 months of imprisonment.
This matter was investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan, Alina P. Reynolds and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
Former Bookkeeper for Veterans Services Organization Charged with Fraud, Tax OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned a 10-count indictment today charging CYNTHIA TANNER, 53, of Darien, with fraud and tax evasion offenses stemming from her alleged embezzlement of approximately $800,000 from a Connecticut-based veterans services organization.
As alleged in the indictment, TANNER was employed as a bookkeeper for the National Veterans Service Fund (“NVSF”) located in Darien. The stated mission of the NVSF was to provide “case managed social services and limited medical assistance to Vietnam and Persian Gulf War veterans and their families, with a focus on families with disabled children.” From approximately January 2009 through June 2014, TANNER used approximately $800,000 in NVSF funds to pay various personal expenses for her and her family members. She also altered records to conceal her scheme and by falsely claiming that the stolen monies were being paid to veterans in need.
The indictment further alleges that TANNER failed to report $794,768.47 in embezzled income on her 2009 through 2013 federal tax returns, resulting in a tax loss of $270,026.
The indictment charges TANNER with five counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count, and five counts of tax evasion, an offense that carries a maximum term of imprisonment of five years on each count.
TANNER has been detained on related state charges since her arrest on June 2, 2014.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and s defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is assigned to Senior U.S. District Judge Warren W. Eginton in Bridgeport.
This investigation is being conducted by the U.S. Secret Service, Internal Revenue Service – Criminal Investigation Division, and Darien Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Bridgeport Man Sentenced to Prison for Ramming Law Enforcement Vehicle and Injuring ATF AgentRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BERNARD PETTWAY, 39, of Bridgeport, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for ramming a law enforcement vehicle and injuring an ATF special agent.
This matter stems from “Operation Samson,” a multi-layered initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking. In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.
According to court documents and statements made in court, between April and June 2014, investigators made three controlled purchases of crack cocaine from PETTWAY. On June 16, 2014, an individual working with law enforcement called PETTWAY and placed an order for crack cocaine. PETTWAY arranged to meet the drug purchaser at a location on Fairfield Avenue in Bridgeport. After PETTWAY arrived at the meeting location, Bridgeport Police officers exited a marked car and approached his vehicle. PETTWAY then attempted to evade law enforcement and drove away at a high rate of speed. A Bridgeport Police officer and an ATF special agent who were in an unmarked vehicle nearby attempted to block PETTWAY’s escape by positioning their car to partially block the roadway. PETTWAY then rammed into the back end of the unmarked vehicle, spinning it approximately 90 degrees and rendering it inoperable, and fled the scene. He was apprehended later that day.
The ATF special agent suffered back and neck injuries and was taken to the hospital.
After his arrest, PETTWAY assisted law enforcement in the recovery of an illegal firearm.
On October 22, 2014, PETTWAY pleaded guilty to one count of assaulting a federal agent with a dangerous weapon.
This case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Indictment Charges West Haven and Hartford Residents with Narcotics, Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an 11-count indictment today charging ANTHONY SABATO, 57, of West Haven, and MIGUEL JOEL ROMAN, 25, of Hartford, with narcotics trafficking offenses. SABATO is also charged with illegally possessing a firearm.
This matter stems from an investigation being conducted by the FBI’s New Haven Safe Streets Task Force, the West Haven Police Department and the Darien Police Department. The investigation employed the use of an undercover law enforcement officer.
As alleged in previously-filed court documents, between January and March 2015, the undercover officer purchased crack cocaine from SABATO and ROMAN. SABATO and ROMAN also negotiated the purchase of a handgun from the undercover officer, and arranged to sell him two ounces of crack cocaine at a price of $2,000 per ounce. SABATO and ROMAN were arrested on March 24, 2015, after they met the undercover officer at SABATO’s West Haven home to consummate the crack cocaine and firearm transactions.
The indictment charges SABATO and ROMAN with one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”), an offense that that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. SABATO and ROMAN are also charged with two counts of possession with intent to distribute and distribution of 28 grams or more of cocaine base, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years on each count, and four counts of possession with intent to distribute and distribution of cocaine base, an offense that carries a maximum term of imprisonment of 20 years on each count.
In addition, the indictment charges SABATO with one count of maintaining a drug-involved premises within 1000 feet of a school, an offense that carries a maximum term of imprisonment of 20 years, two counts of possession with intent to distribute and distribution of oxycodone, an offense that carries a maximum term of imprisonment of 20 years on each count, and one count of possession of a firearm by a previously convicted felon, an offense that carries a maximum term of imprisonment of 10 years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter has been assigned to U.S. District Judge Vanessa L. Bryant in Hartford.
The FBI’s New Haven Safe Streets Task Force includes personnel from the FBI, West Haven Police Department, New Haven Police Department, Milford Police Department and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
New Haven Man Pleads Guilty to Tax FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 3, 2015, WILLIE E. McKAY, 40, of New Haven, pleaded guilty in New Haven federal court to making a false claim to the Internal Revenue Service.
According to court documents and statements made in court, from as early as 2005 through 2008, McKAY was the pastor of The Love Temple Church, Inc., located at 75 Fresh Meadow Road in West Haven. During that time, McKAY provided people, including those in his congregation, with income tax preparation services. In February 2007, McKAY prepared and electronically filed a fraudulent individual U.S. Individual Income Tax Return, Form 1040, for 2006 of a taxpayer who was a member of his congregation. The tax return listed the address of Love Temple Church as the taxpayer’s home address, which was not accurate, and included a fictitious Form W-2 reflecting inflated wages and withholdings. The return also reflected fictitious deductions for state and personal property taxes, which reduced the taxpayer’s taxable income.
The fraudulent tax return that McKAY prepared reported wages of $47,900 from the State of Connecticut, withholdings of $14,952, and Schedule A deductions for state taxes of $4,359 and personal property tax of $852. Based on the false claim, the IRS issued a refund check in the amount of $9,693.
McKAY knew that the taxpayer was a student working at school and was not entitled to the claimed refund. McKAY also did not identify himself as the preparer of the tax return.
According to the IRS, the taxpayer was entitled to a federal tax refund of only $363.
McKAY is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on June 26, 2015, at which time he faces a maximum term of imprisonment of five years and a fine of up to $250,000. As part of the plea agreement, McKAY agreed to make restitution to the IRS of $9,693. He also acknowledged that he prepared and filed other false tax returns for the 2005 through 2007 tax years, which Chief Judge Hall will consider in imposing a sentence.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division with the assistance of the U.S. Secret Service and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Jewett City Man Admits to Illegally Possessing Guns and AmmunitionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 2, 2015, BRIAN FLETCHER, 34, of Jewett City, pleaded guilty in Hartford federal court to possession of firearms by a convicted felon.
According to court documents and statements made in court, on November 22, 2013, a court-authorized search of FLETCHER’s residence revealed a .308 rifle, a Smith & Wesson .40 caliber VE Handgun, a .38 caliber Smith & Wesson Model 60 revolver, as well as multiple rounds of ammunition and weapon magazines.
The investigation revealed that the .308 rifle was purchased earlier in 2013 by another individual at a sporting goods store in Lisbon, the .40 caliber handgun had been stolen from an owner in Oakdale, and the .38 caliber revolver had been stolen from an owner in Waterford.
The investigation further determined that FLETCHER had previously been convicted of felonies in the Superior Court of the State of Connecticut, including accessory to robbery in the first degree, hindering prosecution in the second degree, possession of a pistol without a permit, and attempted assault in the first degree.
It is a violation of federal law to knowingly possess a stolen firearm, or for a convicted felon to possess a firearm or ammunition that has moved in interstate or foreign commerce.
FLETCHER has been detained since his arrest on November 22, 2013. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on June 24, 2015, at which time he faces a maximum term of imprisonment of 10 years.
This case was investigated by the Federal Bureau of Investigation. The Norwich Police Department and the Connecticut State’s Attorney’s Office in New London have assisted the investigation and prosecution of this matter. The case is being prosecuted by Assistant U.S. Attorney Stephen B. Reynolds.
Hamden Woman Who Stole Deceased Mother's Social Security Benefits Sentenced to PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SANDRA KIMBRO, 66, of Hamden, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to six months of imprisonment, followed by three years of supervised release, for stealing her deceased mother’s Social Security benefits for nearly 30 years. KIMBRO also was ordered to serve the first six months of her supervised release in home confinement, and to perform 120 hours of community service.
According to court documents and statements made in court, KIMBRO’s mother, a Social Security benefits recipient, died in 1984. At the time of her death, KIMBRO and her mother had a jointly-held bank account into which the mother’s monthly Social Security benefits were deposited. Between April 1984 and February 2014, KIMBRO illegally obtained $160,457 in Social Security benefits that had been deposited into the account for her mother’s use.
Through the years, as she withdrew money from the bank account, KIMBRO described to bank employees how she was providing care to her mother.
KIMBRO was ordered to pay full restitution.
On November 19, 2014, KIMBRO pleaded guilty to one count of theft of public funds.
This matter was investigated by the Social Security Administration, Office of Inspector General – Office of Investigations, and was prosecuted by Assistant U.S. Attorney Ray Miller.
Former Navy Serviceman Stationed in Connecticut Charged with Child Exploitation OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned an indictment charging ADAM M. SIMPSON, 28, a former member of the U.S. Navy who was stationed at the Naval Submarine Base New London in Groton, with enticing minors to perform sexually explicit acts during online video chats, and receipt and possession of child pornography. The indictment was returned on March 24, 2015, and SIMPSON was arraigned today before U.S. Magistrate Judge Thomas P. Smith in Hartford.
According to the indictment, between approximately January 2013 and November 2013, SIMPSON engaged in video chats with minors using online video chatting services such as Skype and Omegle. During these video chats, SIMPSON enticed the minors to perform sexual acts and engage in sexually explicit conduct, which SIMPSON recorded, saved on his computer, and then shared with others. In order to deceive and entice the minors, SIMPSON sometimes posed as a young boy. He also coerced minors to perform more sexual acts for him by threatening to publicly release their sexually explicit videos. In addition, the indictment alleges that SIMPSON possessed a collection of child pornography, which he downloaded over the Internet onto his computer.
SIMPSON has been detained since his arrest on related state charges on January 7, 2014.
If convicted of the charge of enticement, SIMPSON faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. The charge of receipt of child pornography carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years, and the charge of possession of child pornography carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Connecticut State Police Computer Crimes Unit, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The U.S. Naval Criminal Investigative Service also provided critical assistance in this investigation. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
North Stonington Man Pleads Guilty to Tax Evasion and Structuring Cash TransactionsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOHN ZELEPOS, 48, of North Stonington, pleaded guilty yesterday in Bridgeport federal court to tax evasion and financial structuring offenses.
According to court documents and statements made in court, ZELEPOS is the sole owner of Mystic Pizza, LLC, a Schedule C retail restaurant business in Mystic, Connecticut. From 2006 to 2010, ZELEPOS regularly diverted Mystic Pizza’s cash business gross receipts totaling approximately $567,435. Approximately $330,005 in the diverted cash was deposited into his personal bank account ($113,360) and his and his wife’s personal checking account ($102,580) at Chelsea Groton Bank, his wife’s personal checking account at Washington Trust Company ($74,865), and passbook savings accounts in the name of each of his three minor children at Chelsea Groton Bank ($39,200).
With respect to his 2006 tax return, on June 14, 2007, ZELEPOS willfully attempted to evade and defeat a large part of the income tax due and owing to the United States for 2006 by, among other things, (1) diverting approximately $130,060 in cash from Mystic Pizza, LLC, (2) depositing the diverted cash into his personal bank account and his and his wife’s personal checking account at Chelsea Groton Bank, his wife’s personal checking account at Washington Trust Company, and passbook savings accounts in the name of each of his three minor children at Chelsea Groton Bank at various times in amounts less than $10,000, (3) deducting as business expenses wages paid to two no-show employees, (4) not disclosing to his tax return preparer receipt of the diverted cash and the two no-show employees, and (5) filing and causing to be filed with the IRS a false and fraudulent 2006 federal tax return. In his 2006 tax return, ZELEPOS stated that his taxable income was $388,957 when in fact, as he knew, in 2006 his total taxable income was $551,858 (an additional $162,901 which included the diverted income, deductions for no-show employees, and other statutory adjustments), upon which he owed the United States approximately $180,765 (an additional $54,655) in federal income tax.
As part of the plea agreement, ZELEPOS agreed that he similarly evaded the payment of his federal taxes in 2007, 2008, 2009, and 2010 and that the total federal tax loss for 2006 to 2010 based on his conduct is $234,407. He has agreed to make restitution in the amount of $234,407, plus interest and penalties.
ZELEPOS also pleaded guilty to intentionally structuring financial transactions so as to avoid having the bank file Currency Transaction Reports (“CTRs”). He engaged in 61 currency transactions in amounts less than $10,000 from January 5, 2010 through January 24, 2011, totaling $522,658. He deposited cash into the business account, his personal account, his and wife’s personal bank account, and his three children’s bank accounts at Chelsea Groton Bank in amounts ranging from $3,000 to $9,998 on sequential days or multiple cash deposits on the same day. ZELEPOS knew that the bank was required to issue a report for a currency transaction in excess of $10,000 and by conducting his financial transactions in amounts less than $10,000, he intended to evade the transaction reporting requirements.
Federal law requires all financial institutions to file a CTR for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law. Structured funds are subject to forfeiture to the United States.
As part of the plea agreement, ZELEPOS is forfeiting $522,658 of the money he intentionally structured between January 2010 and January 2011.
On January 2012, pursuant to a court-authorized federal seizure warrant, IRS Special Agents seized $63,084.49 from a payroll account Mystic Pizza held at Chelsea Groton Bank. Those funds are being applied to the forfeiture, reducing the remaining forfeiture amount to $459,573.51.
"Our voluntary system of self-reported tax liability depends upon people to honestly report their income and pay their taxes," stated U.S. Attorney Daly. "Those who willfully hide their income and purposefully evade paying their taxes steal from the public and damage our nation’s system of taxation. Violators will be prosecuted, punished, and obligated to repay their taxes along with applicable penalties and interest. The tax fraud was more egregious in this case because the defendant sought to hide some of the diverted business funds by depositing cash in amounts less than the reportable $10,000 so as to prevent the bank from filing currency transaction reports reporting the multiple cash transaction to the IRS."
U.S. District Judge Victor A. Bolden will sentence ZELEPOS on June 23, 2015, at which time ZELEPOS faces a maximum term of imprisonment of 15 years and a fine of up to $500,000. He was released pending sentencing.
This matter was investigated by the Internal Revenue Service - Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
North Carolina Man Sentenced to Prison for Role in Check Fraud RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LANGSTON XAVIER NEAL, 37, of Charlotte, North Carolina, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 18 months of imprisonment, followed by three years of supervised release, for his role in a check fraud ring. NEAL was also ordered to pay $104,070.94 in restitution.
According to court documents and statements made in court, between July 2010 and May 2011, NEAL, Benjii Carr and Brandon Key Bentley obtained stolen checks, recruited “runners” who cashed the checks, and altered the checks to list the runners as the lawful payees. The three individuals drove the runners to several Connecticut bank branches and directed them to enter the banks and cash the checks. The runners were paid a small part of the cash proceeds. Through this scheme, 39 checks totaling $114,102.34 were altered and presented to banks, and 37 of those checks totaling $104,070.94 were cashed by the banks.
On December 1, 2014, NEAL pleaded guilty to one count of conspiracy to commit bank fraud.
Carr and Bentley, both of New Haven, previously pleaded guilty to the same charge and await sentencing.
This matter was investigated by the U.S. Postal Inspection Service, along with the Connecticut Financial Fraud Task Force and the Branford, Madison, Middlebury, Milford, New Britain, New Haven, New Milford, North Branford, Waterbury, Woodbridge and Southbury Police Departments. U.S. Attorney Daly also acknowledged the cooperation and assistance of the State’s Attorney’s Offices for the Judicial Districts of New Haven, Waterbury, Fairfield and Tolland. The case is being prosecuted by Assistant U.S. Attorney Henry K. Kopel.
Hartford Men Charged with Witness Tampering, Retaliation Offenses Related to 2010 MurderRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Hartford Police Chief James C. Rovella, today announced that a federal grand jury sitting in Hartford has returned a 14-count second superseding indictment charging DOMINIQUE MACK, also known as “Lil Sweets,” 25, and TYQUAN LUCIEN, also known as “TQ” and “Frogger,” 22, both of Hartford, with a conspiracy to tamper with a witness by committing first degree murder. LUCIEN was also charged with multiple attempts to commit witness tampering and attempts to commit witness retaliation by attempting to solicit another person to murder a witness who was to testify in the matter of United States v. Mack.
MACK is also charged with witness tampering by committing first degree murder of Ian Francis. Keronn Miller was not charged in this indictment, as he already pleaded guilty for his role in the murder of Ian Francis. According to court documents and statements made in court, on December 21, 2010, Ian Francis was shot multiple times while sitting in his vehicle on Sigourney Street in Hartford. Francis succumbed to his injuries on January 15, 2011. MACK and others, known and unknown to the grand jury, is alleged to have murdered Francis with the intent to prevent MACK’s attendance at a federal proceeding and to prevent Francis and another person from communicating with a federal law enforcement officer or judge about the commission or possible commission of a federal crime, namely, narcotics trafficking. MILLER pleaded guilty to witness tampering by committing second degree murder in December, 2014. At his guilty plea hearing, Miller admitted to luring Ian Francis to Sigourney Street knowing that Francis would be murdered. Miller is awaiting sentencing.
This superseding indictment alleges that MACK and LUCIEN conspired to kill another witness to prevent him from appearing in the matter of United States v. Mack and from communicating with law enforcement information that the witness had about the Ian Francis murder and the unlawful use and possession of a firearm. LUCIEN is alleged to have attempted to tamper with this same witness by attempting to solicit another person to murder the witness. LUCIEN is also charged with attempting to solicit another person to murder the witness, and two other persons, including a minor victim, to retaliate against the witness for appearing before a federal grand jury and for providing information to law enforcement about the murder of Ian Francis and the unlawful use and possession of a firearm.
The second superseding indictment also charges MACK with two counts of possession of a firearm by a previously convicted felon.
The charges of witness tampering by committing first degree murder and conspiracy to commit witness tampering by committing first degree murder carry a mandatory lifetime term of imprisonment. The charges of attempted witness tampering and attempted witness retaliation carry a maximum term of 30 years’ imprisonment.
MACK and LUCIEN are in federal custody. MACK appeared today before U.S. Magistrate Judge Donna Martinez in Hartford and entered a plea of not guilty to the charges against him. LUCIEN appeared on March 30, 2015, before Judge Martinez, and entered a plea of not guilty to the charges against him
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes and Gang Task Force and the Hartford Police Department’s Major Crimes Division. The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Jennifer Laraia.
Bridgeport Man Sentenced to 55 Months in Prison for Stolen Check SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAYQUAN JACKSON, also known as “Quan” and “DaeDae,” 27, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 55 months of imprisonment, followed by three years of supervised release, for operating a mail fraud and bank fraud scheme.
According to court documents and statements made in court, JACKSON and others stole mail from residences in Fairfield County throughout 2013 and 2014 to obtain either blank checks or credit card “convenience checks.” JACKSON and others then used some of the stolen checks to purchase cars, motorcycles, and all-terrain vehicles listed for sale on the Internet from unsuspecting victims in surrounding states. Some of the stolen checks also were provided to “runners” who deposited the checks into their bank accounts. JACKSON and others then withdrew the funds from the accounts.
The court calculated the intended loss to financial institutions and individual victims resulting from this scheme as more than $177,000. JACKSON was ordered to pay restitution in the amount of $84,242.
JACKSON was arrested on August 22, 2014. On October 29, 2014, he pleaded guilty to one count of conspiracy to commit mail fraud and bank fraud.
This matter is being investigated by the U.S. Postal Inspection Service, with substantial assistance from the Connecticut Financial Fraud Task Force and the Greenwich, Fairfield, Wilton, and Bridgeport Police Departments, as well as law enforcement in New Hampshire. The case is being prosecuted by Assistant U.S. Attorney Marc Silverman.