District of Connecticut
Press releases recorded for this federal judicial district.
Bridgeport Restaurant Owner Admits Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MARIA PINHEIRO, 57, of Trumbull, waived her 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, PINHEIRO owns and operates the Dolphin’s Cove Marina (“DCM”), a seafood restaurant in Bridgeport. From 2007 through 2009, PINHEIRO was the sole shareholder and bookkeeper for DCM, and she handled all of the DCM finances. In pleading guilty, PINHEIRO admitted that instead of depositing all of the cash receipts from DCM into the DCM business checking account, she deposited substantial amounts of cash from business into her personal checking account. She then failed to provide her personal bank records to the firms that prepared the federal income tax returns for her and DCM.
Between 2007 and 2009, PINHEIRO deposited $352,437 in cash that DCM received into her personal bank account. Some of deposits were structured in amounts of less than $10,001 in order to evade her bank’s currency transaction reporting requirements. PINHEIRO caused the filing of false personal and corporate tax returns, resulting in a tax loss of $92,251.
PINHEIRO pleaded guilty to one count of filing a false tax return. She is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall in New Haven on June 15, 2015, at which time she faces a maximum term of imprisonment of three years and a fine of up to $100,000. PINHEIRO also has agreed to pay $243,956.98 in back taxes, interest and penalties.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
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U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]West Haven and Hartford Residents Charged with Narcotics and Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ANTHONY SABATO, 57, of West Haven, and MIGUEL JOEL ROMAN, 25, of Hartford, were arrested yesterday on federal narcotics and firearm offenses. SABATO and ROMAN are scheduled to appear before U.S. Magistrate Judge William I. Garfinkel in Bridgeport at 12:30 p.m.
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 the criminal complaint, 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 after they met the undercover officer at SABATO’s West Haven home to consummate the crack cocaine and firearm transactions.
The complaint charges SABATO and ROMAN with conspiring to distribute and to possess with intent to distribute cocaine base (“crack cocaine”), which carries a maximum term of imprisonment of 40 years, and conspiring to possess a firearm in furtherance of a narcotics trafficking offense, 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 each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Bridgeport Men Sentenced to Prison for Trafficking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two Bridgeport men have been sentenced for trafficking heroin. RASHAD HEARD, also known as “Shotty,” 25, was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 60 months of imprisonment, followed by five years of supervised release. Today, Chief Judge Hall sentenced TYSHEEM WRIGHT, 28, to approximately 15 months of imprisonment, time already served, and five year of supervised release.
According to court documents and statements made in court, in January 2012, the FBI Bridgeport Safe Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force began an investigation into narcotics trafficking and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport. The investigation revealed that Ronell Hanks, also known as “Biz” and “Ace,” headed an organization that sold heroin, cocaine and crack cocaine 24-hours a day, seven days a week.
HEARD and WRIGHT received heroin from Hanks and sold the drug to their own customers.
During the course of the investigation, investigators seized approximately one kilogram of heroin, one-half kilogram of crack cocaine, approximately $100,000 in cash, three vehicles, jewelry, nine firearms, and more than 200 rounds of ammunition.
On December 18, 2013, a grand jury in Bridgeport returned an indictment charging HEARD, WRIGHT, Hanks and 11 other individuals with narcotics and firearms trafficking offenses.
HEARD and WRIGHT have been detained since their arrests in December 2013. Both defendants previously pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
HEARD’s criminal history includes a conviction in December 2007 for first-degree robbery and attempted murder. He served approximately seven years of imprisonment for those offenses.
Hanks pleaded guilty and, on February 26, 2015, was sentenced to 17 years of imprisonment.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, in coordination with the Bridgeport Police Department, the Trumbull Police Department and the Connecticut State Police Statewide Narcotics Task Force. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the State’s Attorney for the Judicial District of Fairfield are assisting this investigation and prosecution. The case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Rahul Kale.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Staten Island Man Pleads Guilty to Federal Tax Charge Related to Illegal GamblingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SALVATORE FERRAIOLI, 33, of Staten Island, New York, pleaded guilty today in Hartford federal court to a federal tax charge stemming from his involvement in an illegal sports gambling operation.
According to court documents and statements made in court, FERRAIOLI was a bookmaker in a sports gambling operation run by Dean DePreta and Richard Uva, two alleged associates of the Gambino organized crime family. DePreta and Uva used sports-gambling websites, particularly 44wager.com based in Costa Rica, to conduct their bookmaking operation.
FBI analysis of 44wager.com website data determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
In court, FERRAIOLI admitted to being a bookmaker in the operation, and for failing to register with the Internal Revenue Service or to file a wagering tax return in 2011.
FERRAIOLI pleaded guilty to one count of failing to file a wagering tax return. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on June 17, 2015, at which time he faces a maximum term of imprisonment of one year and a fine of up to $25,000. FERRAIOLI also has agreed to forfeit $160,988, and to pay back taxes, interest and penalties.
This matter was investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation Division, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorneys Hal Chen and Peter Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Milford Man Sentenced to Prison for Stealing $292K in SSA Benefits Deposited into Deceased Mother's AccountRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WILLIAM E. CHASE, 69, of Milford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to six months of imprisonment, followed by three years of supervised release, for stealing his deceased mother’s social security benefits for more than 25 years.
According to court documents and statements made in court, CHASE’s mother, a Social Security benefits recipient, died in November 1988. At the time of his mother’s death, CHASE was a co-signor on the checking account into which his mother’s monthly Social Security benefits were deposited. Despite the fact that CHASE was identified as the informant on his mother’s death certificate in 1988, he failed to notify the Social Security Administration of her death or take any steps to stop the monthly benefit payments. From the time of his mother’s death until May 2014, $307,396 in Social Security benefits were direct deposited into the bank account controlled by CHASE. CHASE utilized more than $292,000 of the deposited benefits for his personal use and enjoyment.
In May 2014, the bank returned the remaining balance of the checking account, approximately $14,761, to the Social Security Administration.
CHASE was ordered to pay full restitution.
On December 3, 2014, CHASE 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 Anastasia Enos King.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Congressional Candidate Sentenced to Prison for Violating Federal Campaign Finance LawsRead the Press Release
LISA WILSON-FOLEY, 55, of Simsbury, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven for violating federal campaign finance laws. Judge Arterton ordered WILSON-FOLEY to serve five months of imprisonment, followed by one year of probation, the first five months of which WILSON-FOLEY must serve in home confinement with electronic monitoring. WILSON-FOLEY also was ordered to pay a fine of $20,000, as well as the cost of her incarceration and electronic monitoring.
“While seeking election to the U.S. House of Representatives, Lisa Wilson-Foley conspired to hide from the electorate payments made to a shadow operative hired to assist her campaign both quietly and on the radio,” stated First Assistant U.S. Attorney Michael J. Gustafson. “It is troubling that she believed that there was nothing wrong with this criminal arrangement and it is equally disturbing that after pleading guilty, she chose to minimize her role in the scheme. Public officials, and candidates for public office, must be held accountable for criminal behavior. Hopefully, awareness that such conduct can result in jail will encourage other candidates and campaign workers to follow the law. I thank the U.S. Postal Inspectors for meticulously investigating this case in an effort to preserve fair and open elections.”
“The U.S. Postal Inspection Service is proud to have led this investigation that unearthed corrupt conduct by a candidate running for federal office,” stated Shelly A. Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service. “Postal Inspectors will continue to work closely with the Connecticut U.S. Attorney’s Office and our federal law enforcement partners to investigate similar crimes that can corrode our trust in all public officials.”
According to court documents and statements made in court, in 2011 and 2012, LISA WILSON-FOLEY was a candidate for election to the U.S. House of Representatives from Connecticut’s Fifth Congressional District, and competing in a primary campaign for the nomination of the Republican Party. As a candidate for federal office, WILSON-FOLEY and her associates formed and registered with the Federal Election Commission (“FEC”) the “Lisa Wilson-Foley for Congress” committee in order to receive contributions and make expenditures on behalf of her campaign.
WILSON-FOLEY’s husband, Brian Foley, owns a Connecticut nursing home company and a number of other related companies, including a real estate company.
During the primary campaign, WILSON-FOLEY, Brian Foley, former Connecticut Governor John Rowland and others conspired to conceal from the FEC and the public that Rowland was paid money in exchange for services he provided to WILSON-FOLEY’s campaign. As part of the scheme, Rowland proposed to WILSON-FOLEY and Foley that he be hired to work on the campaign. WILSON-FOLEY wanted Rowland to work on the campaign, but believed that because Rowland was a previously convicted felon, public disclosure of his paid role in the campaign would result in substantial negative publicity for WILSON-FOLEY’s candidacy. In order to retain Rowland’s services for the campaign while reducing the risk that his paid campaign role would be disclosed to the public, WILSON-FOLEY, Foley and Rowland agreed that Rowland would be paid by Foley to work on the campaign.
Foley, Rowland and others created and executed a fictitious contract outlining an agreement purportedly for consulting services between Rowland and the law offices of an attorney who worked for Foley’s nursing home company. Foley made regular payments to Rowland for his work on behalf of WILSON-FOLEY’s campaign and routed those payments from his real estate company through the law offices of the attorney. Rowland provided nominal services to Foley’s nursing home company in order to create a “cover” that he was being paid for those nominal services when, in fact, he was being paid in exchange for his work on behalf of WILSON-FOLEY’s campaign.
Between September 2011 and April 2012, Rowland was paid approximately $35,000 for services rendered to WILSON-FOLEY’s campaign. The payments originated with Foley and constituted campaign contributions, but were not reported to the FEC in violation of federal campaign finance laws.
On March 31, 2014, WILSON-FOLEY and Foley each pleaded guilty to conspiring to make illegal campaign contributions. On January 9, 2015, Foley, who cooperated in the investigation and prosecution of this matter, was sentenced to three months in community confinement (halfway house), three years of probation and a $30,000 fine.
On September 19, 2014, a jury found Rowland guilty of two counts of falsification of records in a federal investigation, one count of conspiracy, two counts of causing false statements to be made to the FEC, and two counts of causing illegal campaign contributions. On March 18, 2015, he was sentenced to 30 months of imprisonment, three years of supervised release and a $35,000 fine.
This matter was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorneys Liam Brennan and Christopher Mattei.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Branford Woman Who Failed to Pay Taxes on Money Received During Gifting Tables Scheme is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EILEEN BRENNAN, 78, of Branford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to one year of probation, the first six months of which BRENNAN must serve in home confinement, for failing to pay taxes on money she received while participating in a “Gifting Tables” pyramid scheme. BRENNAN also was ordered to perform 50 hours of community service and pay back taxes, interest and penalties.
According to court documents and statements made in court, a Gifting Table is configured as a four-level pyramid, with eight participants assigned to the bottom row, four participants assigned to the third row, two participants assigned to the second row, and one participant assigned to the top row. The top row participant is referred to as the “Dessert,” the two participants on the second row as “Entrees,” the four participants on the third row as “Soup and Salads,” and the eight participants on the bottom row as “Appetizers.” To join a Gifting Table, new participants were required to pay $5,000, typically cash, to the Dessert, that is, the participant occupying the top position on the pyramid. The $5,000 payment, which was fraudulently characterized as a gift, secured the new participant a position as an Appetizer on the bottom row.
Participants progressed from the bottom row of the pyramid by recruiting additional people to join the Gifting Table. When eight new participants joined a Gifting Table, each having made a $5,000 “gift” to the person occupying the Dessert position at the top of the pyramid, the Dessert left the Gifting Table and kept the $40,000 paid by the eight new participants. That particular Gifting Table was then split, with the two participants occupying the Entree position on the second row moving to the top position (Dessert) of two new pyramids. The other incumbent members of the Gifting Table moved up a row on one of the two newly-formed pyramids, and the search for 16 new participants began. The success of the Gifting Tables depended on new participants joining and making the $5,000 “gift.”
In 2008, 2009 and 2010, BRENNAN received $100,000 while participating in the Gifting Tables scheme. Even though she had been advised by an attorney that the money was taxable income and not a gift, she failed to pay federal income taxes on the money she received.
On August 19, 2014, BRENNAN pleaded guilty to one count of willful failure to file a return, supply information or pay tax.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]U.S. Attorney and HHS Ensure Effective Communication with the Hearing Impaired at St. Francis HospitalRead the Press Release
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The U.S. Attorney’s Office for the District of Connecticut and the U.S. Department of Health and Human Services, Office for Civil Rights (OCR), have entered into a voluntary resolution agreement with St. Francis Hospital and Medical Center in Hartford to ensure effective communication with and enhance the quality of services for persons who are deaf or hard of hearing.
The matter was initiated by a complaint filed with the Department of Justice (DOJ) alleging violations of Title III of the Americans with Disabilities Act (ADA). Specifically, the complainant alleged that St. Francis Hospital and Medical Center (“St. Francis Hospital”) failed to provide auxiliary aids and services when necessary to ensure effective communication with him during multiple admissions to St. Francis Hospital. Title III of the ADA prohibits public accommodations, including hospitals, from discriminating on the basis of disability in the full and equal enjoyment of their goods, services, facilities, privileges, advantages or accommodations.
In cooperation with DOJ, OCR initiated a compliance review of St. Francis Hospital with regard to the Hospital’s policies and procedures for ensuring effective communication with individuals who are deaf or hard of hearing to determine the Hospital’s compliance with Section 504 of the Rehabilitation Act of 1973. Section 504 of the Act prohibits discrimination on the basis of disability in any program or activity receiving federal financial assistance.
As a result of these investigative efforts, concerns were raised regarding whether St. Francis Hospital has been implementing adequate policies and procedures to ensure effective communication with deaf or hard of hearing individuals.
Under the agreement, which resolves both the DOJ complaint investigation and OCR compliance review, St. Francis Hospital is obligated to take several critical steps toward improving access to appropriate communication services for deaf and hard of hearing individuals, including revising its policies and procedures as necessary, revising its training as necessary, and performing an assessment of the need for auxiliary aids and services for patients and their companions.
St. Francis Hospital also agreed to pay the complainant $45,000 in compensatory relief.
The agreement is effective for three years, during which time both OCR and the U.S. Attorney’s Office will monitor St. Francis Hospital’s compliance.
A copy of the voluntary resolution agreement may be found here.
This matter was handled by Assistant U.S. Attorney Brenda Green.
To learn more about the ADA and its application to places of public accommodation, call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]Bridgeport Man Sentenced to 4 Years in Federal Prison for KidnappingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PAUL WHITEHURST, also known as “Juice,” 25, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 48 months of imprisonment, followed by five years of supervised release, for kidnapping.
According to court documents and statements made in court, in January 2013 the Danbury Police Department began investigating a narcotics trafficking network that maintained a series of drug distribution locations, known as trap houses, in Danbury, out of which members of the organization sold crack and heroin. The organization also rented hotel rooms where they packaged and distributed narcotics. During the investigation, law enforcement learned that the individuals who headed the drug trafficking ring had organized and committed armed home invasion robberies of marijuana dealers.
WHITEHURST sold narcotics on behalf of the organization. He also oversaw two trap houses and rented hotel rooms for additional drug distribution.
In approximately May 2013, WHITEHURST and a co-defendant approached an individual who was walking in Danbury and directed the victim to get into their vehicle. At the time, the victim owed WHITEHURST a drug debt of approximately $100. In the car, WHITEHURST physically and verbally assaulted the victim as they drove to a nearby reservoir. At the reservoir, WHITEHURST pushed the victim into the water and then threw rocks at him. WHITEHURST and others then drove the victim to a liquor store and purchased a liter of vodka, which WHITEHUST forced the victim to drink in its entirety in approximately 15 minutes until the victim lost consciousness. The victim, still unconscious, was then driven to a trap house where he was locked in a bathroom overnight. The next day, WHITEHURST directed the victim to work off his drug debt by selling heroin to customers. After selling the drugs, the victim was released.
WHITEHURST has been detained since August 2013. On October 22, 2014, he pleaded guilty to one count of kidnapping.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force and the Danbury Police Department. The DEA Task Force includes personnel from the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Tracy Dayton and Vanessa Richards.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Governor Sentenced to 30 Months in Prison for Illegal Activity in Two Congressional CampaignsRead the Press Release
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Former governor JOHN G. ROWLAND was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by three years of supervised release, for attempting to conceal the extent of his involvement in two federal election campaigns. ROWLAND also was ordered to pay a $35,000 fine. ROWLAND, 57, of Middlebury, served as governor of Connecticut from 1995 to 2004, and in the U.S. House of Representatives from 1985 to 1991.
“It is disheartening that an individual who once held two of our country’s highest elected offices, and who also served time in prison for a previous federal conviction, chose to deceive voters and violate laws that were established to ensure fair and open elections,” stated First Assistant U.S. Attorney Michael J. Gustafson. “Hopefully, today’s sentence will deter both this defendant from future criminal behavior and all who may consider ignoring campaign financing laws. I want to thank the U.S. Postal Inspectors who diligently investigated this scheme, as well as our trial team who have expertly and fairly prosecuted this case.”
“Postal Inspectors dedicated two years to this complex fraud investigation” stated Shelly A. Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service. “John Rowland’s conviction and today’s sentence validate that the undertaking was well worth the effort. Those who plot in secret to violate the public trust are not immune to the law and, as demonstrated in this case, will be prosecuted and punished to the fullest extent for unscrupulous behavior.”
According to the evidence introduced during his trial, in approximately October 2009, ROWLAND devised a scheme to work for the campaign of a candidate seeking election to the U.S. House of Representatives from Connecticut’s Fifth Congressional District during the 2009 and 2010 election cycle, and to conceal from the Federal Election Commission (“FEC”) and the public that he would be paid to perform that work. To make the illegal arrangement appear legitimate, ROWLAND drafted a sham consulting contract pursuant to which he would purportedly perform work for a separate corporate entity owned by the candidate.
During the 2011 and 2012 election cycle, another candidate, Lisa Wilson-Foley, was seeking election to the U.S. House of Representatives from Connecticut’s Fifth Congressional District. Wilson-Foley’s husband, Brian Foley, owns a Connecticut nursing home company and a number of other related companies, including a real estate company. ROWLAND conspired with Wilson-Foley, Foley and others to conceal from the FEC and the public that ROWLAND was paid money in exchange for services he provided to Wilson-Foley’s campaign.
As part of the scheme, ROWLAND proposed to Wilson-Foley and Foley that he be hired to work on the campaign. In order to retain ROWLAND’s services for the campaign while reducing the risk that his paid campaign role would be disclosed to the public, ROWLAND, Wilson-Foley and Foley agreed that ROWLAND would be paid by Foley to work on the campaign. ROWLAND, Foley and others then created and executed a fictitious contract outlining an agreement purportedly for consulting services between ROWLAND and the law offices of an attorney who worked for Foley’s nursing home company. Foley made regular payments to ROWLAND for his work on behalf of Wilson-Foley’s campaign and routed those payments from his real estate company through the law offices of the attorney. ROWLAND provided nominal services to Foley’s nursing home company in order to create a “cover” that he was being paid for those nominal services when, in fact, he was being paid in exchange for his work on behalf of Wilson-Foley’s campaign.
Between September 2011 and April 2012, ROWLAND was paid approximately $35,000 for services rendered to Wilson-Foley’s campaign. The payments originated with Foley and constituted campaign contributions, but were not reported to the FEC in violation of federal campaign finance laws.
On September 19, 2014, ROWLAND was found guilty of two counts of falsification of records in a federal investigation, one count of conspiracy, two counts of causing false statements to be made to the FEC, and two counts of causing illegal campaign contributions.In December 2004, ROWLAND pleaded guilty to conspiracy to commit honest services mail fraud and tax fraud. On March 18, 2005, he was sentenced to 12 months and one day of imprisonment and four months of home confinement.
On March 31, 2014, Foley and Wilson-Foley each pleaded guilty to conspiring to make illegal campaign contributions. On January 9, 2015, Foley, who received credit for cooperating with the investigation, was sentenced to three months in community confinement (halfway house). Wilson-Foley awaits sentencing.
This matter was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorneys Liam Brennan and Christopher Mattei.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]Attorney Admits Filing False Tax ReturnsRead the Press Release
Follow @USAO_CTDeirdre M. Daly, United States Attorney for the District of Connecticut, announced that TIMOTHY G. GRIFFIN, 54, of Ridgefield, waived his right to indictment and pleaded guilty today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport to one count of filing a false tax return.
According to court documents and statements made in court, GRIFFIN practiced law in Bronxville, New York, and his clients paid him for his legal services. In 2006, the Internal Revenue Service sent letters to GRIFFIN about his having not filed income tax returns for 2002, 2003, and 2004 tax years. In response to the IRS inquiry, GRIFFIN prepared and submitted fraudulent individual income tax returns for the 2003 and 2004 tax years. The 2003 return reported business income of $77,713, gross receipts from the law practice of $225,825, a net profit of $32,200, and a total tax of $10,981. The 2004 return reported business income of $67,983, gross receipts from the law practice of $234,894, a net profit of $39,767, and a total tax of $9,606. A subsequent criminal investigation determined that GRIFFIN did not report on these two tax returns approximately $498,934 in additional gross receipts from his law practice, resulting in additional tax due of $136,844.
GRIFFIN is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on December 23, 2014, at which time he faces a maximum term of imprisonment of three years and a fine of up to $250,000. GRIFFIN also has agreed to make restitution to the U.S. Department of Treasury in the total amount of $153,807 – which includes $136,844 for the 2003 and 2004 tax years and $16,963 for the 2005 and 2006 tax years – plus applicable penalties and interest.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Three Individuals Charged with Defrauding Banks and Usda Export Financing ProgramRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on February 20, 2015, a federal grand jury in New Haven returned a 23-count indictment charging BRETT C. LILLEMOE, 45, of Minneapolis, Minn., PABLO CALDERON, 59, Darien, Conn., and SARAH ZIRBES, 39, Minneapolis, Minn., with conspiracy, fraud and money laundering offenses related to a multimillion dollar scheme to defraud banks participating in a USDA-backed export financing program. The indictment alleges that the three defendants engaged in a conspiracy to defraud U.S. financial institutions that secured loans to Russian Banks based on altered documents. The loans were backed by a credit guarantee program run by the U.S. Department of Agriculture (USDA), and when the loans went into default and were subsequently not paid back, the USDA lost millions of dollars.
LILLEMOE was arraigned on March 13 in Bridgeport federal court. He entered a plea of not guilty to all of the charges against him and was released on a $250,000 bond. ZIRBES was arraigned on March 6, pleaded not guilty and is released on a $100,000 bond. CALDERON is scheduled to be arraigned this afternoon at in Bridgeport.
As alleged in the indictment, the USDA provides credit guarantees through the Export Credit Guarantee Program (GSM-102), which is designed to encourage financing of commercial exports of U.S. agricultural products. The GSM-102 program guarantees credit extended by U.S. financial institutions in the U.S. to approved foreign banks, including banks in Russia. As part of the program, the Commodity Credit Corporation (CCC), which is an agency and instrumentality of the USDA, enters into payment guarantees (“credit guarantees”).
The credit guarantees are designed to encourage exports to buyers in foreign countries – mainly developing countries. The program operates in cases where credit is necessary to increase or maintain U.S. exports to a foreign market and where U.S. financial institutions might be otherwise unwilling to provide financing without the guarantee. In providing the credit guarantee facility, the CCC seeks to expand market opportunities for U.S. agricultural exporters and assist long-term market development for U.S. agricultural commodities.
In connection with the GSM-102 program, a foreign importer that has contracted to buy U.S. agricultural products can apply for a letter of credit (“LOC”) from a foreign bank that has been approved by the USDA’s Foreign Agricultural Service (FAS). The foreign bank then issues a letter of credit in favor of the U.S. exporter. The U.S. exporter then, consistent with the requirements of the GSM-102 program, presents proper shipping documents to an approved U.S. financial institution, including a copy of an original bill of lading, certificate of origin, and evidence of export. The U.S. financial institution then provides funds to the U.S. exporter which, in exchange, assigns the rights to the proceeds payable under the letter of credit from the foreign bank to the U.S. financial institution in the same dollar-denominated amount, less any fees. If the foreign bank defaults on its payments to the U.S. financial institution, the U.S. financial institution may submit a claim to the USDA FAS under the guarantee for up to 98 percent of the payment amount owed at the time of the default.
The indictment alleges that between September 2007 and January 2012, LILLEMOE, CALDERON, ZERBES and others devised and executed a scheme to defraud various U.S. financial institutions, including Deutsche Bank A.G. and Colorado-based CoBank ACB, by presenting false and altered shipping documents, including altered bills of lading, in connection with securing funding on loans guaranteed by the GSM-102.
The indictment alleges that LILLEMOE, CALDERON, ZERBES established multiple entities with separate names for the purpose of obtaining a greater share of the allocation of guarantees from the GSM-102 program, and used multiple bank accounts in the names of the various entities in order to further create the appearance that the entities were operating as separate and unrelated entities. The defendants then, in various ways, paid for or otherwise acquired bills of lading and other shipping documents for shipments of agricultural products that they did not physically ship and for which they did not participate in the physical movement of the products in any capacity.
It is further alleged that LILLEMOE entered into agreements with foreign banks, including International Industrial Bank (IIB) in Russia, to provide them capital that would be made available to them from a U.S. financial institution through the use of the GSM-102 program. LILLEMOE subsequently obtained letters of credit from the foreign banks. LILLEMOE, CALDERON, and ZIRBES and others then altered copies of certain shipping documents, including bills of lading marked “Copy non negotiable,” by whiting out portions of the documents, stamping the word “original” on the documents, and adding shading on certain sections of the bills of lading. The defendants also prepared and executed documents termed “commercial invoices” purporting to represent sales of agricultural commodities between entities that they controlled, as well as between entities that they controlled and other entities.
The defendants then used these fraudulent documents to obtain large amounts of capital from U.S. banks in connection with the GSM-102 program, and then provided the funds to the foreign banks in exchange for a percentage fee for themselves and their various entities. Although the foreign banks were obligated to repay the funds to the U.S. financial institutions by virtue of the letters of credit issued to the U.S. financial institutions, in a number of instances, the foreign banks failed to do so. Nevertheless, LILLEMOE, CALDERON, ZIRBES and their various entities retained millions of dollars of fees they had collected in connection with the GSM-102 transactions.
Through this alleged scheme, the foreign banks defaulted on over $10 million of loans for which the USDA’s GSM-102 program had to pay out the guarantees.
The indictment further alleges that, on November 17, 2011, CALDERON stated to federal agents investigating this matter that LILLEMOE was his “supplier” and that he, CALDERON, “purchased commodities from Lillemoe.” In truth, LILLEMOE was not CALDERON’s supplier and CALDERON did not purchase commodities from LILLEMOE. Rather, LILLEMOE was a partner and co-conspirator with whom CALDERON orchestrated paper-only transactions.
The indictment charges LILLEMOE, CALDERON and ZIRBES with one count of conspiracy to commit wire fraud and bank fraud, and multiple counts of wire fraud, offenses that carry a maximum term of imprisonment of 20 years on each count. The indictment also charges each defendant with one count of bank fraud, which carries a maximum term of imprisonment of 30 years, and one count of money laundering, which carries a maximum term of imprisonment of 10 years. In addition, CALDERON is charged with one count of making a false statement to federal law enforcement, which carries a maximum term of imprisonment of five years.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Department of Agriculture, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys Michael S. McGarry and John H. Durham.
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[email protected]Florida Man Admits Mailing Death Threats to Connecticut ResidentsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GARRETT SANTILLO, 35, last residing in Hollywood, Fla., pleaded guilty today in Hartford federal court to mailing numerous threatening letters to individuals in Connecticut, including two federal judges and Connecticut’s governor.
According to court documents and statements made in court, on July 15, 2014, a federal judge received a threatening letter at his Connecticut residence via the U.S. Postal Service. The letter was postmarked on July 11, 2014, from Miami, but did not bear a return address. The letter writer made certain demands and stated “You (sic) home addresses in Conn. are public information and if you mask your identity by name or appearance, we can still track you to wherever you go and will kill you if you don’t follow what this letter instructs.”
Following the judge’s receipt of the threatening letter, approximately 14 other individuals in Connecticut, including another federal judge and the governor of Connecticut, also received letters containing death threats. All of the letters were handwritten, were mailed from the Miami area to the victims’ home addresses in Connecticut, did not bear a return address, contained a demand for action and threatened death if the recipient failed to comply with the writer’s request.
The investigation revealed that SANTILLO wrote and mailed the threatening letters. He was arrested at his Florida residence on September 29, 2014.
SANTILLO pleaded guilty to one count of mailing threatening communications, which carries maximum term of imprisonment of 10 years. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on May 27, 2015.
SANTILLO, who has been detained since his arrest, has two prior federal convictions for sending threatening communications.
This matter has been investigated by the U.S. Marshals Service, Federal Bureau of Investigation, U.S. Postal Inspection Service, Connecticut State Police, the Yale University Police Department and the Broward County (Fla.) Sheriff’s Department, with the assistance of the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Assistant U.S. Attorney Tracy Dayton.
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[email protected]New Haven Heroin Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT SANTOS, also known as “Scoot,” 33, of New Haven, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 120 months of imprisonment, followed by eight years of supervised release, for distributing narcotics.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. Approximately 100 individuals were convicted of federal charges as a result of the investigation.
On February 6, 2014, a jury found SANTOS guilty of one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
According to the evidence at trial, Kevin Wilson, also known as “Nature,” distributed narcotics, primarily in the Dwight/Chapel area of New Haven. SANTOS partnered with Wilson, pooling money to acquire large quantities of heroin from a New York-based supplier, and then distributing the drug in greater New Haven.
Trial testimony also established that Wilson and other co-defendants shared a stash of firearms to use in furtherance of their drug trafficking activity.
SANTOS was arrested on July 25, 2012, and is detained.
SANTOS’s criminal history includes multiple felony convictions, including three narcotics-related convictions and one firearm-related conviction.
Wilson pleaded guilty and awaits sentencing.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
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[email protected]Arizona Woman Admits Operating Fraudulent Federal Income Tax Refund SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KENYA MALCOLM, 36, of Surprise, Ariz., pleaded guilty today in Bridgeport federal court to operating a fraudulent federal income tax refund scheme.
According to court documents and statements made in court, between November 2012 and May 2013, MALCOLM, Charles Ross, Bernard Brantley and others conspired to file false federal income tax returns in the names of individuals without the individuals’ knowledge. MALCOLM, who operated a business in Arizona called “Biggest Refund Taxes,” held herself out falsely to be a certified public accountant. As part of the scheme, MALCOLM paid Ross, also a resident of Surprise, to recruit individuals to her tax preparation business. Ross subsequently contacted Brantley, a resident of Waterbury, Conn., and offered him a portion of Ross’s recruitment earnings if Brantley would also recruit clients for MALCOLM. Instead of recruiting clients for tax preparation services, Brantley and individuals that Brantley hired recruited victims under false pretenses, telling them that they were eligible for government funding and not telling them that tax returns would be filed in their names. Brantley and his associates then collected victims’ Social Security numbers, dates of birth and other personal information and provided that information to MALCOLM.
MALCOLM and Ross knew that Brantley was recruiting individuals under false pretenses.
MALCOLM used the personal information she was provided, as well as false income and employment information for each victim, to file tax returns that generated large tax refunds. She then directed a portion of the tax refunds to herself, a portion to Ross and Brantley, and a portion to the victim, usually through a prepaid debit card.
Approximately $2.5 million in fraudulent federal income tax refunds were sought through this scheme, and more than $1 million in refunds were disbursed.
MALCOLM pleaded guilty to one count of conspiracy, which carries a maximum term of imprisonment of five years. She is scheduled to be sentenced by U.S. District Judge Jeffrey Alker Meyer on June 4, 2015.
Ross and Brantley have also pleaded guilty and are scheduled to be sentenced on May 12, 2015.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala and Senior Litigation Counsel Richard J. Schechter.
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[email protected]Rbs Trader Admits Defrauding Customers in Multimillion Dollar Securities Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that MATTHEW KATKE, 34, of New York, New York, waived his right to indictment and pleaded guilty today in Hartford federal court to participating in a multimillion securities fraud scheme. KATKE also entered into an agreement to cooperate in the government’s ongoing investigation.
According to court documents and statements made in court, between April 2008 and August 2013, KATKE was a registered broker-dealer and managing director at RBS Securities Inc. RBS is a global securities firm with headquarters in Stamford, Connecticut. RBS also has a trading floor in Stamford where KATKE and other members of RBS’s Asset Backed Products division traded fixed income investment securities such as residential mortgage-backed securities (RMBS) and collateralized loan obligations (CLOs). In pleading guilty, KATKE admitted that he and others conspired to increase RBS’s profits on CLO bond trades at the expense of customers. As part of the scheme, KATKE and his co-conspirators made misrepresentations to induce buying customers to pay inflated prices and selling customers to accept deflated prices for CLO bonds, all to benefit RBS.
The conspiracy was perpetrated in two ways. In certain transactions, KATKE misrepresented the CLO seller’s asking price to the buyer (or vice versa), keeping the difference between the price paid by the buyer and the price paid to the seller for RBS. In other transactions, KATKE misrepresented to the CLO buyer that bonds held in RBS’s inventory were being offered for sale by a fictitious third-party seller invented by KATKE, which allowed KATKE to charge the buyer an extra commission that RBS was not entitled to.
The investigation revealed numerous fraudulent transactions by KATKE that cost at least 20 victim customers, including firms affiliated with recipients of federal bailout funds through the Troubled Asset Relief Program, millions of dollars.
“Fraud in the fixed income markets is a secret and unfair tax on investors everywhere,” said U.S. Attorney Deirdre M. Daly. “Broker-dealers, and the people who work for them, need to understand that a market practice that is at odds with the securities law is a crime that carries serious repercussions. We urge others to follow Mr. Katke’s example and cooperate with investigators. We want to thank SIGTARP and the FBI for their efforts to date in this continuing investigation. Additionally, we acknowledge our other partners at the Department of Labor Office of the Inspector General, the Federal Housing Finance Administration Office of Inspector General and the Fraud Section of the Department of Justice for their hard work in the numerous ongoing investigations into this market.”
“As a result of an ongoing criminal investigation by SIGTARP, this afternoon, Katke, a former senior securities trader at investment bank RBS, pleaded guilty to conspiring to defraud bank customers—customers that included TARP banks—out of millions of dollars,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Katke lied to customers about the status of and the true prices paid and offered for securities as a way to boost profits for himself, others, and RBS. Defrauding a TARP recipient bank is the same as defrauding the American taxpayers who funded the TARP bailout. I want to commend U.S. Attorney Deirdre Daly and the team of prosecutors who stand united with SIGTARP to combat TARP bailout-related crime.”
KATKE pleaded guilty to one count of conspiracy to commit securities fraud, which carries a maximum term of imprisonment of five years. He was released on a $250,000 bond and is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on June 3, 2015.
This case is being investigated by the Federal Bureau of Investigation and the Special Inspector General for the Troubled Asset Relief Program, and is being prosecuted by Assistant United States Attorneys Jonathan Francis and Heather Cherry.
Today’s announcement is part of the ongoing efforts of the Financial Fraud Enforcement Task Force’s Residential Mortgage-Backed Securities (RMBS) Working Group, a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis and the federal government’s subsequent bailout. The RMBS Working Group brings together attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and state Attorneys General offices around the country.
The RMBS Working Group is led by Acting Associate Attorney General Stuart Delery, and co-chaired by Assistant Attorney General for the Criminal Division Leslie R. Caldwell, Acting Assistant Attorney General for the Civil Division Benjamin Mizer, U.S. Securities and Exchange Commission Director of Enforcement Andrew Ceresney, U.S. Attorney for the District of Colorado John Walsh and New York Attorney General Eric T. Schneiderman.
For more information about the RMBS Working Group and the Financial Fraud Enforcement Task Force, visit: www.stopfraud.gov.
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[email protected]RBS Trader Admits Defrauding Customers in Multimillion Dollar Securities Fraud SchemeRead the Press Release
U.S. Attorney Deirdre M. Daly of the District of Connecticut, Special Inspector General Christy Romero for the Troubled Asset Relief Program (SIGTARP) and Special Agent in Charge Patricia M. Ferrick of the FBI’s New Haven Division announced that Matthew Katke, 34, of New York City, waived his right to indictment and pleaded guilty today in Hartford federal court to participating in a multimillion securities fraud scheme. Katke also entered into an agreement to cooperate in the government’s ongoing investigation.
According to court documents and statements made in court, between April 2008 and August 2013, Katke was a registered broker-dealer and managing director at RBS Securities Inc. RBS is a global securities firm with headquarters in Stamford, Connecticut. RBS also has a trading floor in Stamford, where Katke and other members of RBS’s Asset Backed Products division traded fixed income investment securities such as residential mortgage-backed securities (RMBS) and collateralized loan obligations (CLOs). In pleading guilty, Katke admitted that he and others conspired to increase RBS’s profits on CLO bond trades at the expense of customers. As part of the scheme, Katke and his co-conspirators made misrepresentations to induce buying customers to pay inflated prices and selling customers to accept deflated prices for CLO bonds, all to benefit RBS.
The conspiracy was perpetrated in two ways. In certain transactions, Katke misrepresented the CLO seller’s asking price to the buyer (or vice versa), keeping the difference between the price paid by the buyer and the price paid to the seller for RBS. In other transactions, Katke misrepresented to the CLO buyer that bonds held in RBS’s inventory were being offered for sale by a fictitious third-party seller invented by Katke, which allowed Katke to charge the buyer an extra commission that RBS was not entitled to.
The investigation revealed numerous fraudulent transactions by Katke that cost at least 20 victim customers, including firms affiliated with recipients of federal bailout funds through the Troubled Asset Relief Program, millions of dollars.
“Fraud in the fixed income markets is a secret and unfair tax on investors everywhere,” said U.S. Attorney Daly. “Broker-dealers, and the people who work for them, need to understand that a market practice that is at odds with the securities law is a crime that carries serious repercussions. We urge others to follow Mr. Katke’s example and cooperate with investigators. We want to thank SIGTARP and the FBI for their efforts to date in this continuing investigation. Additionally, we acknowledge our other partners at the Department of Labor Office of the Inspector General, the Federal Housing Finance Administration Office of Inspector General and the Fraud Section of the Department of Justice for their hard work in the numerous ongoing investigations into this market.”
“As a result of an ongoing criminal investigation by SIGTARP, this afternoon, Katke, a former senior securities trader at investment bank RBS, pleaded guilty to conspiring to defraud bank customers—customers that included TARP banks—out of millions of dollars,” said Special Inspector General Romero. “Katke lied to customers about the status of and the true prices paid and offered for securities as a way to boost profits for himself, others and RBS. Defrauding a TARP recipient bank is the same as defrauding the American taxpayers who funded the TARP bailout. I want to commend U.S. Attorney Daly and the team of prosecutors who stand united with SIGTARP to combat TARP bailout-related crime.”
Katke pleaded guilty to one count of conspiracy to commit securities fraud, which carries a maximum term of imprisonment of five years. He was released on a $250,000 bond and is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny of the District of Connecticut on June 3, 2015.
This case is being investigated by the FBI and the Special Inspector General for the Troubled Asset Relief Program, and is being prosecuted by Assistant U.S. Attorneys Jonathan Francis and Heather Cherry of the District of Connecticut.
Today’s announcement is part of the ongoing efforts of the Financial Fraud Enforcement Task Force’s Residential Mortgage-Backed Securities (RMBS) Working Group, a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis and the federal government’s subsequent bailout. The RMBS Working Group brings together attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, SIGTARP, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network and state Attorneys General offices around the country.
The RMBS Working Group is led by Acting Associate Attorney General Stuart Delery, and co-chaired by Assistant Attorney General Leslie R. Caldwell of the Criminal Division, Acting Assistant Attorney General Benjamin Mizer of the Civil Division, Director of Enforcement Andrew Ceresney for the SEC, U.S. Attorney John Walsh of the District of Colorado and New York Attorney General Eric T. Schneiderman.
For more information about the RMBS Working Group and the Financial Fraud Enforcement Task Force, visit: www.stopfraud.gov.
Oxford Man Sentenced to 63 Months in Prison for Stealing $1.1 Million Through Ponzi SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT E. LEE, JR., 51, of Oxford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in Bridgeport to 63 months of imprisonment for operating a Ponzi scheme that defrauded investors of more than $1.1 million. Judge Meyer also ordered LEE to pay full restitution and a $10,000 fine.
According to court documents and statements made in court, LEE was employed as a broker and financial advisor for various financial investment firms until July 2013 when he was terminated by his most recent employer, Rockwell Global Capital, LLC. Between January 2011 and March 2014, LEE defrauded individuals of approximately $1,150,815 by claiming that he was investing their money in various investment vehicles when, in fact, he was maintaining custody of their funds in his personal bank account. He then used the money to make distributions to other investors, and for personal expenses. To conceal the scheme, LEE fabricated account statements and other documents, which he delivered to his victims.
As part of the sentence, Judge Meyer ordered LEE to forfeit $358,077.17 that was held in an online trading account at the time of his arrest.
LEE was arrested on May 12, 2014. On December 17, 2014, he pleaded guilty to five counts of wire fraud.
This matter was investigated by the Federal Bureau of Investigation was prosecuted by Assistant U.S. Attorneys David T. Huang and Christopher M. Mattei.
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[email protected]Shelton Man Sentenced to 70 Months in Federal Prison for Distributing HeroinRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JERMAINE BUCHANAN, also known as “Hot Main,” 20, of Shelton, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 70 months of imprisonment, followed by five years of supervised release, for distributing heroin.
According to court documents and statements made in court, in January 2012, the FBI Bridgeport Safe Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force began an investigation into narcotics trafficking and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport. The investigation revealed that Ronell Hanks, also known as “Biz” and “Ace,” headed an organization that sold heroin, cocaine and crack cocaine 24-hours a day, seven days a week. BUCHANAN received heroin from Hanks and sold the drug to his own customer base.
During the course of the investigation, investigators seized approximately one kilogram of heroin, one-half kilogram of crack cocaine, approximately $100,000 in cash, three vehicles, jewelry, nine firearms, and more than 200 rounds of ammunition.
BUCHANAN was arrested December 5, 2013. A search of BUCHANAN’s residence at the time of his arrest revealed a Glock 26 handgun, an empty magazine for another firearm, a quantity of heroin packaged for distribution and five mobile phones.
On December 18, 2013, a grand jury in Bridgeport returned an indictment charging BUCHANAN, Hanks and 12 other individuals with narcotics and firearms trafficking offenses.
BUCHANAN has been detained since his arrest on December 5, 2013. On August 13, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
Hanks pleaded guilty and, on February 26, 2015, he was sentenced to 17 years of imprisonment.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, in coordination with the Bridgeport Police Department, the Trumbull Police Department and the Connecticut State Police Statewide Narcotics Task Force. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the State’s Attorney for the Judicial District of Fairfield are assisting this investigation and prosecution. The case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Rahul Kale.
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[email protected]Norwalk Man Who Illegally Sold Firearms Sentenced to More Than 3 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RAUL CABAN-MARTES, 22, of Norwalk, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 40 months of imprisonment, followed by three years of supervised release, for illegally selling firearms.
According to court documents and statements made in court, between August 2013 and January 2014, CABAN-MARTES and others sold five firearms, ammunition and a bullet proof vest to a convicted felon. CABAN-MARTES knew that the purchaser intended to sell the firearms to others in Norwalk.
CABAN-MARTES has been detained since his arrest on July 2, 2014. On December 5, 2014, he pleaded guilty to one count of conspiracy to engage in the business of dealing in firearms without a license.
In December 2014, while he was in federal custody, CABAN-MARTES instructed family members to conceal another firearm so that he could sell the weapon upon his release.
This matter was investigated by the Norwalk Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Vanessa Richards.
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[email protected]Leader of Grape Street Crips in New Haven Sentenced to More Than 15 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DONALD OGMAN, also known as “Main” and “Mainy-O,” 33, of New Haven, was sentenced today by Senior U.S. District Judge Warren E. Eginton in Bridgeport to 188 months of imprisonment, followed by five years of supervised release, for heading a gang-related narcotics distribution ring.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force and the New Haven Police Department into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven. The investigation revealed that OGMAN, who was identified as the leader of the Grape Street Crips, typically purchased bulk quantities of cocaine from different sources of supply, processed the cocaine into crack cocaine and then distributed the drug to gang members and other individuals in the Hill and other neighborhoods in New Haven.
Between March and September 2011, investigators made approximately 75 controlled purchases of crack cocaine from OGMAN and other members and associates of the Grape Street Crips operating in the Hill. In addition, court-authorized wiretaps intercepted numerous conversations between Grape Street Crips members discussing narcotics and other gang-related activity, including possible retaliation against members of the rival Bloods gang, and the acquisition of firearms.
Eighteen individuals were charged and pleaded guilty as a result of this investigation.
OGMAN has been detained since his arrest on March 28, 2012. On March 14, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack”) and a quantity of cocaine.
This matter has been investigated by the FBI’s New Haven Safe Streets Task Force, which includes the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction. The investigation has been assisted by the U.S. Marshals Service and the Westerly (R.I.) Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and H. Gordon Hall.
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[email protected]Career Offender Admits Robbing Meriden BankRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL MASLAR, 58, of Meriden, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of bank robbery.
According to court documents and statements made in court, on September 22, 2014, MASLAR, wearing a pillowcase with holes cut into it over his head, entered the TD Bank on East Main Street in Meriden, approached the teller counter and demanded that bank employees give him cash in $50 and $100 denominations. MASLAR also stated that he had a gun. Bank employees complied with MASLAR’s demands and gave him $5,658. MASLAR took the money, placed it inside a plastic bag and exited the bank. He was arrested shortly thereafter by Meriden Police.
MASLAR has been detained since his arrest on September 22. Judge Shea scheduled sentencing for June 2, 2015, at which time MASLAR faces a maximum term of imprisonment of 20 years.
MASLAR’s criminal history includes two prior federal convictions for bank robbery, as well as convictions for involuntary manslaughter and assault. In March 2003, MASLAR was sentenced in Hartford federal court to 165 months of imprisonment for robbing a bank in Meriden on September 11, 2001. He was released from prison in January 2014.
This matter is being investigated by the Federal Bureau of Investigation and the Meriden Police Department. The case is being prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
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[email protected]Two Public Employees Indicted for Tax EvasionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and William Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that TROY HESTER, 42, of Hartford, and AJMAL JENKINS, 39, of Middletown, have been indicted for tax evasion. HESTER is employed by the Metropolitan District Commission and JENKINS is employed by the State of Connecticut’s Department of Mental Health and Addiction Services and works at the Connecticut Valley Hospital.
This matter stems from an Internal Revenue Service investigation into State of Connecticut employees and others who had little or no federal withholding taken out of their paychecks and who failed to file income tax returns. The investigation revealed that certain individuals submitted fraudulent W-4 forms claiming numerous exemptions, or that they were exempt, and had no money withheld from their wages.
The six-count indictment against HESTER alleges that, during the 2008 through 2013 tax years, he paid little or no federal income taxes on approximately $438,877 in income he received, resulting in a federal tax loss of approximately $70,480.
The four-count indictment against JENKINS alleges that, during the 2009 through 2012 tax years, he paid no federal income taxes on approximately $256,081 in income he received, resulting in a federal tax loss of approximately $46,265.
The indictments were returned by a federal grand jury in New Haven on March 4. HESTER and JENKINS are scheduled to be arraigned later today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport.
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 case is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Susan Wines.
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Tom Carson
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[email protected]Waterbury Resident Pleads Guilty to Enticing A Minor He Met at ChurchRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MIGUEL TORRES, 45, of Waterbury, waived his right to indictment and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in Bridgeport to one count of enticing a minor female to send him sexually explicit videos and pictures of herself.
According to court documents and statements made in court, TORRES met a minor female at the church they both attended. TORRES offered to mentor the minor, gave her his cell phone number, and they began communicating via text messages. In late June 2013, when the minor was 14 years old, TORRES began to ask the minor to send him sexually explicit videos and pictures. Their text message conversations became sexually explicit, and TORRES persuaded the minor to take sexually explicit videos and pictures of herself and send them to him. TORRES also sent the minor sexually explicit videos and pictures of himself, and he told her that he had engaged in sexual conduct with other girls so that the minor would be comfortable with it.
Judge Meyer scheduled sentencing for May 27, 2015, at which time TORRES faces a mandatory minimum term of imprisonment of 10 years, a maximum term of imprisonment of life, and a fine of up to $250,000.
TORRES has been detained since his arrest on related state charges on August 30, 2013.
This matter is being investigated by the Waterbury Police Department and Homeland Security Investigations. The Connecticut State’s Attorney’s Office in Waterbury is also providing 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.PUBLIC AFFAIRS CONTACT:
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[email protected]Teacher Sentenced to 5 Years in Prison for Child Pornography OffenseRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSEPH RAJKUMAR, 44, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, with credit for time already served, and 10 years of supervised release. RAJKUMAR has been detained since January 2014.
According to court documents and statements made in court, in approximately April 2011, RAJKUMAR, who was a science teacher and advisor to the Science Olympiad team at Miss Porter’s School in Farmington, befriended a minor female victim who was a student at the school. Before the victim left the school for summer break in June 2011, RAJKUMAR pressured her to create an anonymous email account that did not contain her name, which she eventually did. RAJKUMAR had already created an anonymous email account for his own use, in violation of the school’s policy that teachers and students should communicate via email only through a school-sponsored website. Through the email accounts, RAJKUMAR and the victim frequently engaged in video chats and, during the chats, RAJKUMAR made multiple attempts to get the victim to remove her shirt. The victim initially resisted, but eventually succumbed to RAJKUMAR’s advances and exposed her chest to him through the video chat.
Beginning in approximately November 2011, RAJKUMAR and the victim engaged in a sexual relationship that lasted several months. The investigation revealed evidence of numerous video chats that took place through at least April 2012. In the chats, RAJKUMAR frequently made lascivious comments to the victim and pressured her to expose herself.
The investigation further revealed that RAJKUMAR had also begun to harass other young girls at the school in person and through electronic communications. He told one female student via text message that she looked “hot” in the pants she was wearing at a school event and told another that she should create an anonymous email account so that they could do “naughty things” that were “secret.” In total, RAJKUMAR corresponded with at least six victims, including the one victim with whom he eventually had sexual intercourse. RAJKUMAR asked at least one of the other victims to start a physical relationship with him.
On November 18, 2014, RAJKUMAR pleaded guilty to one count of attempted receipt of child pornography.
RAJKUMAR also pleaded guilty in state court to sexual assault in the second degree and, in January 2014, was sentenced to 10 years of incarceration, execution suspended after 18 months, and 10 years of probation.
This matter was investigated by Homeland Security Investigations and the Farmington Police Department. The case was prosecuted by Assistant U.S. Attorney Sarala V. NagalaPUBLIC AFFAIRS CONTACT:
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[email protected]Hartford Man Convicted of Multiple Drug and Gun OffensesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RASHAUD JONES, also known as “Buck,” 32, of Hartford and Windsor, has been convicted of multiple narcotics and firearm offenses. On March 2, after a week-long trial before U.S. District Judge Michael P. Shea in Hartford, a jury found JONES guilty of all counts in a seven-count indictment.
This matter was investigated by the Drug Enforcement Administration’s Hartford Task Force, the Hartford Police Department and the Bristol Police Department. The case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone and Peter D. Markle.
According to the evidence disclosed during the trial, this matter stems from a joint investigation led by the Drug Enforcement Administration’s Hartford Task Force. On December 18, 2012, investigators conducted a motor vehicle stop of JONES and seized more than $9,000 in cash, three cellular telephones and other evidence. Investigators then conducted court-authorized searches of JONES’s apartment at 232 Westland Street in Hartford and a car parked at the residence and seized approximately 935 grams of crack cocaine, approximately 635 grams of powder cocaine, narcotics packaging material, a loaded .22 Taurus revolver, a 9mm High Point pistol, a Ruger 345 .45 caliber firearm, a loaded .45 caliber magazine, a loaded .9mm magazine and additional ammunition.
Prior to December 2012, JONES had been convicted of multiple felony offenses.
JONES was found guilty of one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”), one count of possession with intent to distribute 280 grams or more of cocaine base, one count of possession with intent to distribute 500 grams or more of cocaine, one count of possession with intent to distribute and distribution of 28 grams or more of cocaine base, possession of a firearm by a previously convicted felon, possession of a firearm in furtherance of a drug trafficking crime, and possession of ammunition by a previously convicted felon.
Judge Shea scheduled sentencing for May 26, 2015, at which time JONES faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.PUBLIC AFFAIRS CONTACT:
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[email protected]Former U.S. Coast Guard It Contractor Sentenced for Stealing Personal Information from ComputersRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LARRY MATHEWS, 34, of Pawcatuck, Conn., was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to three years of probation for stealing personal information from hundreds of computers and personal electronic devices that had been brought to him for repair. Judge Chatigny also ordered that MATHEWS must spend the first four months of his probation on a 7:00 p.m. to 7:00 a.m. home curfew with electronic monitoring, perform 150 hours of community service and pay a fine of $5000.
According to court documents and statements made in court, MATHEWS was the proprietor of a computer repair business in Pawcatuck. Beginning in 2008, MATHEWS was also employed as a civilian contract employee for the U.S. Coast Guard as a computer “help desk” technician. On more than 250 occasions, for his own use, MATHEWS copied personal information and files from computers and personal electronic devices that had been brought to him for repair. The personal information and files included account names and passwords, and sexually-explicit photographs and videos.
The investigation revealed that MATHEWS shared the stolen personal information only with coworkers, one of whom reported the criminal activity to law enforcement in 2013.
On November 12, 2014, MATHEWS pleaded guilty to one count of computer intrusion in furtherance of a tortious invasion of privacy.
This case was investigated by the U.S. Coast Guard Investigative Service and was prosecuted by Assistant U.S. Attorneys Edward Chang and Carolyn Ikari.PUBLIC AFFAIRS CONTACT:
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[email protected]Milford Man Sentenced to 65 Months in Prison for Distributing Heroin Connected to Overdose DeathRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, announced that RYAN RUSSOW, 29, of Milford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 65 months in prison, followed by three years of supervised release, for distributing heroin connected to the overdose death of a Milford man.
“Working closely with the DEA and local police, we are continuing to prioritize investigations of heroin overdoses and the prosecution of dealers who traffic in heroin that results in a user’s death,” stated U.S. Attorney Daly. “We are committed to following all leads to the ultimate source of supply. Heroin traffickers are forewarned that a conviction for distributing heroin that results in a death carries a lengthy federal sentence.”
“Individuals who sell heroin have one motivation and that is to make money,” stated DEA Acting Special Agent in Charge Ferguson. “They ignore the countless overdoses and deaths that result from the use of heroin as well as the lingering destruction this drug brings to our families and communities. DEA and our law enforcement partners are committed to investigating overdose deaths to identify and bring to justice the source of this poison.”
According to court documents and statements made in court, from November 2013 to April 2014, RUSSOW obtained heroin from a source in New Haven and then distributed the drug out of his residence on Stone Manor Drive to customers. On March 12, 2014, RUSSOW sold a number of bags of heroin, stamped “Much Better,” to R.P., 26, of Milford. Later that day, R.P. was found deceased at his residence in Milford. In R.P.’s room, law enforcement officers located two empty bags of heroin stamped “Much Better,” and two full bags bearing the same stamp.
Drug Enforcement Administration analysis confirmed that the full bags contained heroin with a purity level of approximately 76 percent, and the Connecticut Office of the Chief Medical Examiner concluded that R.P. died of heroin toxicity.
On March 19, 2014, the DEA executed a search warrant at RUSSOW’s residence and seized more than $19,000 in cash, a digital scale and drug packaging materials.
RUSSOW has been detained since his arrest on April 23, 2014. On December 4, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute heroin.
This matter was investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Milford Police Department. The case was prosecuted by Assistant U.S. Attorney Sarah P. Karwan.PUBLIC AFFAIRS CONTACT:
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[email protected]Norwalk Cocaine Distributor Sentenced to 32 Months in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN YERINIDES, 51, of Norwalk, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to approximately 32 months of imprisonment, time already served, followed by three years of supervised release, for trafficking cocaine.
This matter stems from a year-long investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Norwalk Police Department into the distribution of oxycodone, cocaine and marijuana in Fairfield County. Sixteen individuals were charged and convicted as a result of this investigation.
According to court documents and statements made in court, YERINIDES was intercepted approximately 180 times over a court-authorized wiretap engaging in telephonic and text communications with Konstantinos Zografidis, who was identified as a primary distributor of oxycodone and cocaine. The investigation revealed that YERINIDES was predominantly obtaining large quantities of cocaine from Zografidis for further distribution.
YERINIDES has been detained since arrest on June 12, 2012. On April 17, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine.
Zografidis has pleaded guilty and awaits sentencing.
This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Norwalk Police Department, with assistance provided by the Connecticut State Police and the Bridgeport, Stamford, Stratford and Westport Police Departments. The case is being prosecuted Assistant U.S. Attorneys Vanessa Richards and Michael Runowicz.
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[email protected]Ansonia Man Admits Trafficking Prescription NarcoticsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMES COSTANZO, 37, of Ansonia, pleaded guilty today in Bridgeport federal court to trafficking prescription narcotics.
According to court documents and statements made in court, in May 2013, the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Ansonia Police Department initiated an investigation into COSTANZO, who had been identified as an illegal distributor of narcotic pharmaceuticals. The investigation, which included multiple controlled purchases of oxycodone and the use of electronic surveillance, revealed that COSTANZO sold prescription narcotics to numerous customers from his Dwight Street residence. The investigation further revealed that Brian Earl of North Haven supplied COSTANZO with large quantities of oxycodone and other prescription narcotics, and also sold drugs to his own customers.
At the time of his arrest on January 23, 2014, COSTANZO possessed a 9mm handgun that was loaded with hollow-point ammunition, and $439 in cash. A subsequent search of his residence revealed approximately 600 oxycodone pills, four firearms, ammunition, approximately $5,500 in cash, and more than 50 stored-value cards.
In pleading guilty, COSTANZO admitted that he used more than $72,000 in funds derived from his illegal drug enterprise to purchase a residence located at 85 Dwight Street.
COSTANZO pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, oxycodone and oxymorphone, which carries a maximum term of imprisonment of 20 years, and one count of knowingly engaging in a monetary transaction involving criminally derived property, which carries a maximum term of imprisonment of 10 years.
As part of his plea agreement, COSTANZO has agreed to forfeit the 85 Dwight Street property, a residence located at 21 Winchester Street in Waterbury, a 2005 Mercedes Benz ML350, a 2000 Ford F150, and approximately $42,613.
COSTANZO has been detained since his arrest. He is scheduled to be sentenced by Senior U.S. District Judge Warren E. Eginton on May 22, 2015.
On February 17, 2015, Brian Earl pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, oxycodone and oxymorphone. He is scheduled to be sentenced on May 12, 2015.
This investigation has been conducted by the DEA’s New Haven Tactical Diversion Squad, the Ansonia Police Department and the Fairfield Police Department. The case is being prosecuted by Assistant U.S. Attorneys David X. Sullivan and Michael E. Runowicz.
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[email protected]Stamford Man Sentenced to 3 Years in Prison for Role in Fairfield County Mortgage Fraud SchemeRead the Press Release
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The United States Attorney for the District of Connecticut announced that ASM AFSARY, 42, of Stamford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 36 months of imprisonment, followed by five years of supervised release, for conspiring to defraud financial institutions through an extensive mortgage fraud scheme that involved more than 20 properties in Fairfield County.
According to court documents and statements made in court, between 2005 and 2013, AFSARY, a real estate agent and former mortgage broker, participated in a mortgage fraud conspiracy that involved the purchase of numerous single and multi-family properties, primarily in Stamford, Norwalk and Bridgeport. During the scheme, AFSARY and his co-conspirators provided materially false information to mortgage lenders. The fraudulent information included false verifications of mortgage applicants’ income, false verifications of down payments for real estate transactions and false HUD-1 Forms.
As part of the scheme, AFSARY recruited and directed the actions of several “straw buyers,” or individuals who fraudulently applied for and obtained mortgage loans but did not have an actual financial investment or stake in the mortgage loan transactions. In fact, AFSARY was the intended owner of the property, managed the property and collected all of the rents from the property.
Through this scheme, lenders suffered losses of more than $7 million. Many of the properties involved in this mortgage fraud scheme ended up in foreclosure, or in short sale transactions.
AFSARY was ordered to pay restitution in the amount of $3,327,949.20.
On June 16, 2014, AFSARY pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud. He was ordered to report to prison on July 31, 2015.
Three other individuals involved in this scheme have also pleaded guilty and await sentencing.
This investigation is being conducted by the Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General, which identified multiple Fannie Mae and Freddie Mac loans that went into foreclosure.The criminal case is being prosecuted by Assistant U.S. Attorney Ann M. Nevins and Special Assistant U.S. Attorney John McReynolds, and the parallel civil forfeiture cases are being handled by Assistant U.S. Attorney Julie G. Turbert.
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[email protected]New Haven Narcotics Dealer Sentenced to More Than 11 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PHILIP BRYANT, also known as “Phat Phil” and “Fizzy,” 28, of New Haven, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 135 months of imprisonment, followed by five years of supervised release, for distributing narcotics.
According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. Approximately 100 individuals were convicted of federal charges as a result of the investigation.
On February 6, 2014, a jury found BRYANT guilty of one count of conspiracy to possess with intent to distribute, and to distribute, cocaine, cocaine base and heroin.
According to the evidence at trial, Kevin Wilson, also known as “Nature,” distributed narcotics, primarily in the Dwight/Chapel area of New Haven. BRYANT was intercepted on multiple occasions arranging drug transactions with Wilson. In addition, BRYANT provided Wilson with 26.3 grams of crack cocaine that Wilson, in turn, sold to two individuals who were working with law enforcement.
Trial testimony further established that BRYANT, Wilson and other co-defendants shared a stash of firearms to use in furtherance of their drug trafficking activity.
BRYANT’s criminal history includes convictions for assault in the first degree and larceny in the first degree. He has been detained since his arrest on May 25, 2012.
Wilson awaits sentencing.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.
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[email protected]Bridgeport Man Sentenced to 17 Years in Federal Prison for Heading Drug Trafficking RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RONELL HANKS, also known as “Biz” and “Ace,” 25, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 204 months of imprisonment, followed by five years of supervised release, for heading a large Bridgeport-based narcotics trafficking ring.
According to court documents and statements made in court, in January 2012, the FBI Bridgeport Safe Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force began an investigation into narcotics trafficking and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport. The investigation revealed that HANKS headed an organization that sold heroin, cocaine and crack cocaine 24-hours a day, seven days a week.
During the course of the investigation, investigators seized approximately one kilogram of heroin, one-half kilogram of crack cocaine, approximately $100,000 in cash, three vehicles, jewelry, nine firearms, and more than 200 rounds of ammunition.
Investigators seized a firearm, which had been reported stolen, from HANKS’ residence, and also a KelTec EC372 assault-style firearm and ammunition that HANKS had provided to another individual for safe keeping on his behalf.
On December 18, 2013, a grand jury in Bridgeport returned an indictment charging HANKS and 13 other individuals with narcotics and firearms trafficking offenses.
HANKS has been detained since his arrest on December 5, 2013. On August 21, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin and 500 grams or more of cocaine.
HANKS was ordered to forfeit three vehicles, approximately $80,000 in jewelry and $72,000 in cash.
HANKS’ criminal history includes multiple felony convictions.This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, in coordination with the Bridgeport Police Department, the Trumbull Police Department and the Connecticut State Police Statewide Narcotics Task Force. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the State’s Attorney for the Judicial District of Fairfield are assisting this investigation and prosecution. The case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Rahul Kale.
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[email protected]Two Connecticut Men Plead Guilty to Defrauding EmployersRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JASON TORRANCE, 43, of East Haddam, and ADAM MEYERS, 43, of Southbury, pleaded guilty on February 23 in Bridgeport federal court to engaging in a fraud scheme against their respective employers.
According to court documents and statements made in court, between approximately March 2008 and August 2012, TORRANCE and MEYERS devised a scheme to defraud their employers by arranging for payment on goods that never shipped and instead diverting those payments to themselves. TORRANCE worked out of the New Haven branch of a New Jersey-based electrical and industrial supply company (“Distributor-1”), and MEYERS was a project manager for a New Britain-based electrical subcontractor (“Contractor”) that frequently purchased supplies from Distributor-1. A co-conspirator (“CC-2”) operated a smaller distributor (“Distributor-2”) based in Cheshire.
As part of the scheme, MEYERS identified to TORRANCE projects on which he believed the profit margin for Contractor would permit them to divert excess profits to themselves without Contractor becoming aware. MEYERS would submit a purchase order for materials to TORRANCE. TORRANCE then submitted a purchase order to CC-2 for the goods listed on the purchase order sent by MEYERS. CC-2 then submitted an invoice to Distributor-1 for the materials listed on the purchase order, and Distributor-1 paid the invoice by mailing a check to Distributor-2. Distributor-1 then invoiced Contractor for the goods that were on the purchase order and Contractor issued a check to Distributor-1. CC-2 then hand-delivered a business check to TORRANCE for approximately 90 percent of the money that had been paid by Distributor-1 to Distributor-2, and CC-2 retained the remaining 10 percent as his share of the proceeds from the scheme. TORRANCE then paid out a portion of the proceeds of the scheme to MEYERS.
At no time did any product on the purchase orders actually ship to the customer.
The victim companies lost more than $600,000 as a result of this scheme.
TORRANCE and MEYERS each pleaded guilty to one count of conspiracy to commit mail fraud, which carries a maximum term of imprisonment of 20 years. They are scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on May 18, 2015.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney David E. Novick.
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[email protected]New Haven Man Sentenced to Life in Prison for Committing Arson That Killed Three in Fair HavenRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HECTOR NATAL, also known as “Boom” and “Boom Boom,” 29, of New Haven, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to life imprisonment. After a four-week trial, Natal was convicted of committing the March 2011 arson of a two-family house in the Fair Haven section of New Haven that caused the deaths of 41-year-old Wanda Roberson, her 8-year-old son Quayshaun Roberson and her 21-year-old niece Jaqueeta Roberson.
“Hector Natal set fire to his neighbors’ home knowing that two large families, which included older women and young children, were inside,” said U.S. Attorney Daly. “This reckless act took the lives of three innocents, Wanda Roberson, her young son Quayshaun and her niece Jaqueeta, and the sentence imposed today will protect society from this defendant. I want to thank our law enforcement partners, particularly the New Haven Fire and Police Departments, the FBI and the Connecticut State Police, who expertly investigated this tremendously difficult case. We thank them for ensuring justice for all of the victims of this horrible crime, none of whom will ever fully recover from such an unimaginable loss.”
“Mr. Natal gave no thought to the lives he was endangering when he deliberately set the fire which killed three members of the Roberson family,” said FBI Special Agent in Charge Patricia M. Ferrick. “While today’s sentencing cannot bring back those lives or lessen the pain of the Roberson loss, we hope that it will bring closure and healing for both the Roberson family and the Fair Haven community.”
On April 18, 2013, Natal and his father, Hector Morales were found guilty on all counts of an 11-count indictment. According to the evidence presented during trial, Natal was a New Haven drug dealer who sold cocaine, crack cocaine, pills and marijuana. Morales served as Natal’s driver, facilitating his sales of narcotics and collection of drug proceeds. Early on the morning of March 9, 2011, Natal set fire to 48-50 Wolcott Street in New Haven in retaliation for a customer’s failure to pay a small drug debt. Seventeen people, including three toddlers, two pregnant women and two grandmothers, were in the house at the time the fire was set. Natal and Morales lived close to the Wolcott house. After the fire was set, Morales drove Natal away from the scene in his blue van. Hearing reports that a blue van was seen leaving the scene, Morales painted his van black in an effort to obstruct the investigation of the fatal fire. Natal and Morales then schemed with other family members to testify falsely before the grand jury in an effort to prevent the grand jury from developing evidence regarding their complicity in the arson.
The evidence at trial also showed that, months before the fatal fire, Natal attempted to set a fire in the same Wolcott Street house.
Natal was found guilty of three counts of arson resulting in death, and one count of attempted arson. Natal and Morales were both convicted of conspiring to distribute and to possess with intent to distribute narcotics, conspiring to tamper with witnesses and witness tampering. Morales was found guilty on three counts of being an accessory after the fact to the arson, and one count of destruction and concealment of evidence.
Natal has been detained since his arrest on June 14, 2011.
On January 8, 2015, Morales was sentenced to 174 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation, the New Haven Police Department, the Connecticut State Police Major Crimes Unit, Office of the State Fire Marshal, the New Haven Fire Department – Office of Fire Marshal, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Department of Housing and Urban Development’s Office of Inspector General. The case was prosecuted by U.S. Attorney Deirdre M. Daly and First Assistant U.S. Attorney Michael J. Gustafson, with assistance and support from the New Haven State’s Attorney’s Office.
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[email protected]Former Connecticut Resident Pleads Guilty to Attempting to Send Military Documents to IranRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Assistant Attorney General for National Security John P. Carlin announced that MOZAFFAR KHAZAEE, 60, formerly of Manchester, Connecticut, pleaded guilty today before U.S. District Judge Vanessa L. Bryant in Hartford to violating the Arms Export Control Act, in connection with his efforts to send to Iran sensitive, proprietary, trade secret and export controlled material relating to military jet engines for the U.S. Air Force’s F35 Joint Strike Fighter program and the F-22 Raptor program, which he had stolen from defense contractors where he had previously been employed.
“While employed with U.S. defense contractors, Mozaffar Khazaee stole sensitive, proprietary and controlled technology to send it to Iran,” said U.S. Attorney Daly. “The illegal export of our military technology compromises U.S. national security and reduces the advantages our armed forces currently possess. As today’s case demonstrates, we will aggressively investigate and hold accountable those who attempt to steal trade secrets and sensitive military technology from U.S. industries, whether for their own personal gain or for the benefit of foreign actors.”
“Today’s guilty plea demonstrates the ongoing cooperation with our federal law enforcement partners to prevent U.S. technology from falling into the wrong hands,” said Bruce Foucart, special agent in charge of HSI Boston. “Across the globe, the magnitude and scope of threats facing the United States has never been greater, and that's why one of Homeland Security Investigations highest priorities is to prevent illicit procurement networks, terrorist groups and hostile nations from illegally obtaining U.S. military products and sensitive dual-use technologies. Homeland Security Investigations takes pride in protecting our country, and today’s guilty plea is the latest example of our effective investigative efforts.”
“This joint investigation has emphasized the need for American companies to remain vigilant against the theft of valuable and sensitive technologies,” said FBI Special Agent in Charge Patricia M. Ferrick. “As our nation continues to lead the way in research and development, we are constantly reminded that there are those who seek to advance their own causes by stealing the hard work of others, and we owe it to ourselves and to the American public to guard against it. The FBI vigorously investigates these matters in cooperation with our law enforcement partners, both domestic and abroad.”
“This investigation demonstrates the dedication of the Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service and our federal and military partners to ensure that critical technology is not exploited by criminals acting on behalf of governments hostile to the U.S.,” said Craig W. Rupert, Special Agent in Charge, Defense Criminal Investigative Service, Northeast Field Office. “Foreign governments continue to actively seek U.S. military technology in an effort to advance their own military development. Today’s plea represents our continuing efforts to safeguard sensitive technology and to shield America’s investment in national defense by thwarting those who try to illegally acquire our national security assets.”
According to court documents and statements made in court, at different times between 2001 and 2013, KHAZAEE was employed by three separate defense contractors. From at least 2009 through and including late 2013, KHAZAEE attempted to use trade secret, proprietary and export controlled material that he had obtained from his employers to gain employment in Iran.
In November and December 2009, KHAZAEE corresponded by email with an individual in Iran to whom he attempted to send, and in some cases did send, documents containing trade secret, proprietary and export controlled material relating to the Joint Strike Fighter Program. In one email KHAZAEE wrote “some of these are very controlled . . . and I am taking [a] big risk. Again please after downloading these two Power Point files delete everything immediately.”
Analysis of KHAZAEE’s computer media revealed not only additional documents containing proprietary, trade secret and export controlled material belonging to the U.S. defense contractors at which he had been employed, but also cover letters and application documents, dating from in or about 2009 through in or about 2013, in which KHAZAEE sought employment with multiple state-controlled technical universities in Iran. In multiple letters KHAZAEE described the knowledge and skills he had obtained while working for the U.S. defense contractors and wrote: “[a]s lead engineer in these projects I have learned some of the key technique[s] that could be transferred to our own industry and universities.” KHAZAEE stated that he was “looking for an opportunity to work in Iran, and . . . transferring my skill and knowledge to my nation.”
In or about November 2013, while residing in Connecticut, KHAZAEE caused a shipment to be sent by truck from Connecticut to a freight forwarder located in Long Beach, California, which was intended for shipment to Iran. The shipment included numerous boxes and digital media containing thousands of documents consisting of sensitive technical manuals, specification sheets, technical drawings and data, and other proprietary material relating to military jet engines and the United States Air Force’s F35 Joint Strike Fighter (“JSF”) program and the F-22 Raptor. Many documents were labeled as “Export-Controlled,” as well as stamped with “ITAR-controlled” warnings. KHAZAEE did not apply for nor did he obtain any export license or written authorization to export any of the documents, and the export or attempted export of such material to Iran is illegal.
On January 9, 2014, KHAZAEE was arrested at the Newark Liberty International Airport before boarding a flight with a final destination of Iran. Search warrants executed on KHAZAEE’s checked and carry-on luggage revealed additional sensitive, proprietary, trade secret and export controlled documents relating to military jet engines, in both hard copy and in electronic form on KHAZAEE’s computer media. KHAZAEE has been detained since that time.
Judge Bryant scheduled sentencing proceedings for May 20, 2015, at which time KHAZAEE faces up to 20 years in prison and a $1 million fine.
This investigation is being led by the United States Department of Homeland Security’s Homeland Security Investigations in New Haven, in coordination with the New Haven Division of the Federal Bureau of Investigation, the Defense Criminal Investigative Service in New Haven and the Department of Commerce’s Boston Office of Export Enforcement.
U.S. Attorney Daly and Assistant Attorney General Carlin also commended the efforts of the many other agencies and offices that were involved in this investigation, including U.S. Attorney’s Offices for the Central District of California, the Southern District of Indiana and the District of New Jersey, Homeland Security Investigations in Los Angeles, the U.S. Customs and Border Protection Service in Los Angeles, the U.S. Air Force’s Office of Special Investigations in Los Angeles and Boston, as well as HSI, CBP, and FBI in New Jersey, and HSI, FBI and DCIS in Indianapolis.
This case is being prosecuted by Assistant U.S. Attorneys Stephen Reynolds and Krishna Patel of the National Security and Major Crimes Unit of the U.S. Attorney’s Office for the District of Connecticut, and Trial Attorney Brian Fleming of the Justice Department’s Counterespionage Section (CES).
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[email protected]Former Bristol Resident Sentenced to 5 Years in Prison for Operating $1.8 Million Investment SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that STEPHEN GOODRICH, 57, of Rocky Hill, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by three years of supervised release, for operating a scheme that defrauded investors out of more than $1.8 million.
According to court documents and statements made in court, GOODRICH formerly resided in Bristol where he conducted an investment business using the name Goodrich Financial. Although GOODRICH was not a licensed or registered investment adviser, he provided a business card to some investors that falsely represented that he was licensed to conduct an investment business. Beginning in approximately 2006 and continuing to approximately November 2012, GOODRICH defrauded individuals who had provided him with investment funds by failing to invest the funds as represented, and by using some of the investment funds for his personal use. At times, GOODRICH also used new investor funds to return the principal investment to older investors as is often done in Ponzi schemes. In order to prevent his investors from becoming aware of the scheme, GOODRICH provided written performance summaries to his investors that falsely represented the value of their investments. More than 10 investors collectively lost more than $1.8 million as a result of this scheme.
As part of his sentence, GOODRICH was ordered to pay full restitution to his victims.
During the years 2007 to 2011, GOODRICH used more than $600,000 of the investors’ funds for his personal use without disclosing this income on his federal tax returns. As a result, GOODRICH owes $239,443 in additional federal taxes, plus interest and penalties.
On October 7, 2014, GOODRICH waived his right to indictment and pleaded guilty to one count of mail fraud and one count of subscribing to a false tax return.
GOODRICH, who is released on bond, was ordered to report to prison on April 24, 2015.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, the Federal Bureau of Investigation and the U.S. Postal Inspection Service, with the assistance of the Connecticut Department of Banking. The case was prosecuted by Senior Litigation Counsel Richard J. Schechter.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
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[email protected]Bridgeport Man Sentenced to 7 Years in Federal Prison for Role in Drug Trafficking RingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that OMAR BAHAMONDE, also known as “Dirk,” 30, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 84 months of imprisonment, followed by five years of supervised release, for trafficking narcotics in Bridgeport.
According to court documents and statements made in court, in January 2012, the FBI Bridgeport Safe Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force began an investigation into narcotics trafficking and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport. The investigation revealed that Ronell Hanks, also known as “Biz” and “Ace,” headed an organization that sold heroin and crack cocaine 24-hours a day, seven days a week. BAHAMONDE was Hanks’ trusted associate, purchasing bulk heroin for resale, spotting surveillance and helping Hanks cook powder cocaine into crack cocaine base for distribution.
During the course of the investigation, investigators seized approximately one kilogram of heroin, one-half kilogram of crack cocaine, approximately $100,000 in cash, three vehicles, jewelry, nine firearms, and more than 200 rounds of ammunition. One of the firearms was an assault-type rifle and four of the firearms were stolen.
On December 18, 2013, a grand jury in Bridgeport returned an indictment charging Hanks, BAHAMONDE and 12 other individuals with a variety of narcotics and firearms trafficking offenses.
BAHAMONDE has been detained since his arrest on December 5, 2013. On November 4, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
BAHAMONDE’s criminal history includes multiple felony convictions, including a conviction for first-degree robbery.
Hanks has pleaded guilty and awaits sentencing.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, in coordination with the Bridgeport Police Department, the Trumbull Police Department and the Connecticut State Police Statewide Narcotics Task Force. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the State’s Attorney for the Judicial District of Fairfield are assisting this investigation and prosecution. The case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Rahul Kale.
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[email protected]Former New Haven Resident Pleads Guilty to Violating Federal Sex Offender Registration and Notification ActRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LESTER JOY, 34, pleaded guilty today in Hartford federal court to failing to register as a sex offender.
The Sex Offender Registration and Notification Act (“SORNA”), which was passed by Congress in 2006 as part of the Adam Walsh Act, provides a comprehensive set of minimum standards for sex offender registration and notification in the United States and seeks to strengthen the nationwide network of sex offender registration and notification programs. In part, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
According to court documents and statements made in court, on October 25, 2002, JOY was convicted in the State of New Jersey of sexual assault in the second degree, endangering the welfare of a child in the third degree and theft in the third degree. For these offenses, he was sentenced to three years of imprisonment, lifetime community supervision and was subject to lifetime registration as a sex offender. On January 4, 2006, JOY was convicted in Suffolk County, New York, of three counts of rape in the third degree, two counts of criminal sexual acts in the third degree and two counts of disseminating indecent material to a minor. For these offenses, he was sentenced to a period of 42 to 84 months of incarceration and lifetime probation.
In 2013, prior to his release from prison, JOY was informed of his registration obligations under SORNA and he signed forms stating that he understood his sex offender registration requirements in both New York and New Jersey.
On November 30, 2013, JOY was released from the Morris County, New Jersey jail following service of a sentence for violation of his lifetime term of community supervision in New Jersey. However, he did not register as a sex offender in either New Jersey or New York, and moved to Connecticut. He failed to notify New Jersey, New York and Connecticut officials of his move to Connecticut, as required.
JOY was arrested in New Haven on March 16, 2014.
JOY has been detained since his arrest. He is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on May 18, 2015, at which time he faces a maximum term of imprisonment of 10 years.
This matter was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
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[email protected]Gun Dealers Sentenced for Federal Firearms ViolationsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that BRIAN VANACORE, 49, of North Branford, GREG BODYTKO, 55, of Northford, were sentenced yesterday Bridgeport federal court for violating federal firearms laws. U.S. Magistrate Judge William I. Garfinkel ordered VANACORE and BODYTKO to serve, one year of probation, pay a $500 fine and perform 100 hours of community service.
According to court documents and statements made in court, VANACORE and BODYTKO were the owners of BMG LLC (BMC), which operated a gun store at 2585 Berlin Turnpike in Newington. VANACORE and BMG had three separate federal firearms licenses to deal firearms in Connecticut, and BODYTKO was a 50 percent partner in the business with VANACORE.
In the summer of 2013, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted a routine inspection of BMG’s Newington store. During the inspection, ATF inspectors found several firearms, including machine guns and silencers, which are required to be registered under the National Firearms Act. BMG records revealed that BMG had purchased these firearms, but had not changed the registration information in the National Firearms Registration and Transfer Record. As a result, each of the firearms remained registered to the individual who sold them to BMG. In total, BMG possessed 15 firearms that it should have registered under the National Firearms Registration and Transfer Record.
BMG, VANACORE and BODYTKO also failed, on numerous occasions, to report the sale of multiple handguns to the same individual, and failed to record in their Acquisition and Disposition records the acquisition and/or disposition of hundreds of firearms. On numerous occasions, the defendants failed to fill out properly, or failed to fill out at all, ATF Form 4473, a form that must be completed by individuals who purchase firearms from federally-licensed firearms dealers. They also failed to conduct necessary background checks on at least 10 separate occasions.
“Federally-licensed firearms dealers are our first line of defense in making certain that firearms don’t wind up in the hands of the wrong people,” stated U.S. Attorney Daly. Gun dealers who don’t comply with the rules and violate federal law will be prosecuted.
On March 5, 2014, VANACORE and BODYTKO each pleaded guilty to one count of failing to keep a complete and accurate written record in its acquisition and disposition records for firearms, and one count of failing to report the multiple sale of handguns. VANACORE also entered a guilty plea on behalf of BMG to one count of making false entries in dealer’s records.
BMG was previously sentenced to five years’ probation, and the store is no longer in operation.
VANACORE and BODYTKO were ordered to surrender their Federal Firearm Licenses (FFL) and they not permitted to reapply for an FFL for five years.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Robert M. Spector.
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[email protected]Former Plymouth Finance Director Pleads Guilty to Federal Theft and Tax ChargesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID J. BERTNAGEL, 41, of Thomaston, waived his right to indictment and pleaded guilty today in Bridgeport federal court to theft and tax charges stemming from his embezzlement of more than $800,000 from the Town of Plymouth.
According to court documents and statements made in court, from October 2011 through October 2014, BERTNAGEL was employed as the Finance Director for the Town of Plymouth. During that time period, BERTNAGEL issued 207 checks totaling approximately $808,030 from the Town’s payroll account to himself. BERTNAGEL used the embezzled funds to make mortgage payments, pay credit card bills, fund home improvement projects and purchase more than $100,000 in coins, stamps and other collectibles. He also converted more than $182,000 of the stolen funds by way of cashed checks, ATM withdrawals and money orders.
In addition, BERTNAGEL’s federal tax returns for the 2012 and 2013 tax years failed to report any of his embezzled income, resulting in a tax loss to the government of $145,564 for those two years. BERTNAGEL also did not file a tax return with the IRS for the 2011 tax year.
Since 2011, Plymouth has received approximately $450,000 in grant awards from the U.S. Department of Health and Human Services.
BERTNAGEL was arrested on January 20, 2015.
BERTNAGEL pleaded guilty to one count of theft from a local government receiving federal funds, which carries a maximum term of imprisonment of 10 years, and one count making and subscribing a false tax return, which carries a maximum term of imprisonment of three years. He is scheduled to be sentenced by U.S. District Judge Jeffrey Alker Meyer on May 15, 2015.
As part of his plea agreement, BERTNAGEL agreed to make restitution in the amount of $808,029.94 to the Town of Plymouth, and he must cooperate with the IRS to pay all outstanding taxes, penalties and interest. BERTNAGEL also has agreed to forfeit more than $45,000 that he held in bank accounts, and assorted jewelry, stamps, coins and other collectibles that were seized on the date of his arrest.
This matter is being investigated by the Connecticut Public Corruption Task Force, which includes the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development – Office of Inspector General and U.S. Department of Health and Human Services – Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
Citizens are encouraged to report corrupt activity to the Connecticut Public Corruption Task Force by calling 1-800-CALL-FBI (1-800-225-5324).
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Tom Carson
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[email protected]Two Hartford Men Charged with MurderRead the Press Release
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United States Attorney Deirdre M. Daly, Chief State’s Attorney Kevin T. Kane, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, and Hartford Police Chief James C. Rovella, today announced that JIMEL FRANK, also known as “30” and “Velly,” and KARL ROYE, also known as “Eagle,” have been charged with the April 2011 murder of Anthony Parker of Hartford.
This matter stems from a long-term investigation being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force, DEA and Hartford Police Department into narcotics trafficking by members and associates of the WestHell and Team Grease street gangs and gang-related violent activity. Officers and inspectors from the Cold Case Unit of the Office of the Chief State’s Attorney are actively participating in the investigation.
At approximately 10:47 a.m. on the morning of April 6, 2011, the Hartford Police Department received a report of shots fired in the vicinity of 15 Thomaston Street in the Blue Hills Section of Hartford. Officers responding to the scene located Anthony Parker, also known as “Smooth,” 24, seated in the driver’s seat of a vehicle in the driveway of 15 Thomaston Street. Parker was unconscious and suffering from multiple gunshot wounds. Parker was transported by ambulance to Saint Francis Hospital where he ultimately succumbed to his injuries and was pronounced deceased.
The complaint alleges that FRANK and ROYE conspired to engage in, and engaged in, a Violent Crime in Aid of Racketeering, namely the murder of Anthony Parker.
FRANK, 27, of Hartford, was arrested today. He appeared before U.S. Magistrate Judge Thomas P. Smith in Hartford and is detained.
ROYE, 24, formerly of Hartford, has been detained since September 2013 on an unrelated offense and currently is in the custody of the Federal Bureau of Prisons.
If convicted of the charges, each defendant faces a maximum term of imprisonment of life, or death if the government seeks the death penalty in this matter.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Chief State’s Attorney Kane noted that the unsolved homicide of Anthony “Smooth” Parker was included in cold case playing cards sold to inmates in Connecticut’s state correctional facilities. Each card in the deck features a photograph and brief details about a homicide or missing person case and lists telephone, mail and e-mail contacts that inmates can use to supply information.
This ongoing investigation is being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force, DEA, Hartford Police Department and Cold Case Unit of the Office of the Chief State’s Attorney. 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. Attorneys John H. Durham and Peter S. Jongbloed, and Supervisory Assistant State’s Attorney Patrick Griffin, who has been cross-designated as Special Assistant U.S. Attorney in this matter.
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[email protected]New Haven Man Charged with Illegal Gun PossessionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a grand jury in New Haven returned an indictment today charging ANTHONY REID, 26, of New Haven, with possession of a firearm by a convicted felon.
The indictment alleges that on October 20, 2014, REID possessed a semi-automatic rifle.
Prior to October 2014, it is alleged that REID had sustained felony convictions. 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.
If convicted of the charge, REID faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
The indictment seeks the forfeiture of the semi-automatic rifle, as well as 101 rounds of ammunition that were seized on October 20, 2014.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. This case is being prosecuted by Assistant U.S. Attorneys Jennifer Laraia and David Nelson.
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Tom Carson
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[email protected]Hartford Man Sentenced to 5 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ASA BOYD, 35, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 60 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 January 30, 2014, the Hartford Police Department’s Intelligence Division received information that an individual driving a red Grand Am was in possession of .45 caliber pistol and selling drugs in the vicinity of Capitol Avenue. Hartford Police officers responded to the area and located the vehicle parked on James Street. As officers approached the car, BOYD, who had been the sole occupant of the vehicle, ran from the car and up the stairs to a residence. BOYD then reached into his waistband and tossed a black pistol. Officers pursued BOYD as he ran up to the second floor. After a brief struggle with the officers, BOYD was taken into custody.
Officers recovered the firearm, which was a .45 caliber Glock pistol with an intact magazine containing 13 live rounds, including one live round in the chamber. BOYD also possessed approximately 2.9 grams of crack cocaine and $827 in cash.
BOYD’s criminal history includes multiple felony convictions. In 1996, BOYD was convicted of illegally firing a gun, for which he received 60 days in jail followed by probation. He later violated his probation and was sentenced to an additional one year in jail. In 2003, BOYD was arrested in possession of cocaine and three guns. He was ultimately convicted of possession with intent to sell narcotics and criminal possession of a weapon and, in 2005, was sentenced to 12 years of imprisonment, suspended after four years, and five years of probation.
BOYD has been detained since his arrest. On December 1, 2014, he pleaded guilty to one count of possession of a firearm by a convicted felon.
The matter was investigated by the Hartford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
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Tom Carson
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[email protected]Groton Cocaine Dealer Sentenced to More Than 6 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JUAN G. CHEVEREZ, also known as “Guinchi,” 33, of Groton, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 77 months of imprisonment, followed by four years of supervised release for conspiring to import and distribute cocaine in southeastern Connecticut.
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 were also obtained from sources in New York City and Rhode Island.
More than 100 individuals were charged with federal and state offenses as a result of this investigation.
The investigation revealed that CHEVEREZ received kilogram-quantities of cocaine in the mail from Axel Matta Figueroa, also known as “Joelito,” in Puerto Rico, and distributed the drug in southeastern Connecticut.CHEVEREZ has been detained since his arrest on April 3, 2013. On March 19, 2014, he pleaded guilty to one count of conspiracy to possess with the intent to distribute 500 grams or more of cocaine.
Axel Matta Figueroa pleaded guilty to conspiracy to possess with intent to distribute five kilograms or more of cocaine and, on November 20, 2014, he was sentenced to 66 months of imprisonment.
This matter is being 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.
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Tom Carson
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[email protected]West Haven Man Who Embezzled Funds from Bank in New Canaan Where He Was Employed Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that STEPHEN DeCRESCENZO, 37, of West Haven, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to one day of imprisonment, time already served, six months in community confinement (“halfway house”) and three years of supervised release for embezzling more than $100,000 in funds from the bank where he was employed.
According to court documents and statements made in court, DeCRESCENZO was employed as personal banker for JPMorgan Chase Bank in New Canaan. Between approximately September 2008 and November 2011, DeCRESCENZO embezzled $106,028 in funds from customer accounts by transferring the funds into a separate customer account to which he had access. As part of his scheme, DeCRESCENZO disguised numerous withdrawals from the accounts as authorized cash withdrawals by customers when, in fact, he had stolen the money. DeCRESCENZO also wired funds stolen from a customer account into another bank account for his personal benefit.
DeCRESCENZO was ordered to pay full restitution.
On November 24, 2014, DeCRESCENZO pleaded guilty to one count of wire fraud.
DeCRESCENZO is a former member of the West Haven City Council.
This investigation was conducted by the Connecticut Financial Crimes Task Force, the Greenwich Police Department and the New Canaan Police Department. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
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[email protected]Tennessee Resident Charged with Defrauding Contributors to Sandy Hook-related CharityRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut and Kevin J. Kline, Acting Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven has returned an indictment charging ROBERT TERRY BRUCE, 34, of Nashville, Tennessee, with defrauding contributors to an organization he established after the December 14, 2012 school shootings in Newtown.
The indictment was returned under seal on February 4, 2015, and BRUCE was arrested on Friday in Tennessee.
“This arrest serves as a warning to anyone who attempts to profit from the tragedy at Sandy Hook,” stated U.S. Attorney Daly. “With the assistance of the FBI, we will continue to prioritize the investigation of fraudulent schemes that exploit the generosity of donors responding to this tragedy.”
“Creating a fraudulent charity to exploit a tragedy for personal gain is unconscionable,” stated FBI Acting Special Agent in Charge Kline. “These investigations will continue to be a priority for the Federal Bureau of Investigation.”
According to the indictment, BRUCE founded 26.4.26, an organization that began soliciting charitable donations after the December 14, 2012 school shootings in Sandy Hook, Connecticut. In early 2013, BRUCE solicited and received contributions to 26.4.26 in connection with a charity athletic event in Gilford, New Hampshire called the Schools 4 Schools run. BRUCE promoted the event via social media, and solicited contributions to 26.4.26 through an online PayPal account by representing to potential donors that the purpose of the event was “to help raise funds for increased school safety, families of victims, memorials to teacher heroes, awareness and prevention in schools across America.” BRUCE further represented to potential donors that “all proceeds will go to the 26.4.26 Foundation.”
The indictment further alleges that, in early 2013, BRUCE also solicited contributions to 26.4.26 in connection with a charity athletic event in Tennessee called CrossFit Cares. As he had in the New Hampshire event, BRUCE promoted the event via social media, and solicited contributions to 26.4.26 through PayPal by representing to potential donors that “all proceeds will go to the 26.4.26 Foundation” and that the “mission of 26.4.26 is to provide funding for the families of victims, memorials for teacher heroes and to increase safety in schools across the country.”
Rather than using the funds raised to support his purported mission, the indictment alleges that BRUCE used most of the funds to enrich himself and to support his personal training business. Several of the victim donors are from Connecticut.
The indictment charges BRUCE with six counts of wire fraud, a charge that carries a maximum term of imprisonment of 20 years on each count.
Following his arrest on February 13, BRUCE appeared in federal court in Nashville and was released on a $20,000 bond. His arraignment in the District of Connecticut is scheduled for February 23 at 10:00 a.m. in Hartford.
U.S. Attorney Daly stressed that an indictment 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 and is being prosecuted by Assistant U.S. Attorney Susan Wines. U.S. Attorney Daly also acknowledged the critical assistance provided by the U.S. Attorney’s Office for the Middle District of Tennessee.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]New Haven Man Sentenced to 3 Years in Federal Prison for Illegally Possessing FirearmRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEROME T. WALKER, also known as “Ratchet,” 26, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 36 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm. WALKER also was ordered to perform 300 hours of community service.
According to court documents and statements made in court, on October 14, 2014, officers from the New Haven Police Department conducted a traffic stop of WALKER, who was driving with a suspended license, in the vicinity of Norton Street and Elm Street. After initially pulling over, WALKER accelerated from the scene at high rate of speed. A short time later, New Haven and Hamden Police officers found WALKER’s vehicle parked at a residence on Warner Street in Hamden. Officers then observed WALKER walking in front of the residence and he was placed under arrest. In the vicinity, officers found a duffel bag containing a Smith and Wesson .38 caliber revolver and a set of car keys belonging to the vehicle that WALKER had been driving.
WALKER has previously been convicted of multiple felony offenses. 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.
WALKER has been detained since his arrest. On November 17, 2014, he pleaded guilty to possession of a firearm by a previously convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Haven Police Department and the Hamden Police Department. The case was prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Jennifer Laraia.
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U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]Former Ceo of New London Manufacturing Company Sentenced for Clean Water Act ViolationRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Tyler Amon, Special Agent in Charge of EPA’s Criminal Investigation Division, and Commissioner Robert Klee of the Connecticut Department of Energy and Environmental Protection announced that THOMAS H. FARIA, 38, the former chief executive officer and president of Faria Limited, LLC, doing business as Sheffield Pharmaceuticals, was sentenced today in Hartford federal court for violating the Clean Water Act. U.S. District Judge Alvin W. Thompson ordered FARIA to serve three years of probation, perform 300 hours of community service and pay a $30,000 fine.
According to court documents and statements made in court, the Clean Water Act requires that every company obtain a permit from the Connecticut Department of Energy and Environmental Protection (“CT DEEP”) before it can discharge its industrial wastewater to the public sewage system, commonly known as the publicly owned treatment works (“POTW”). Companies are also required, among other things, to test and monitor their industrial wastewater monthly to ensure that the chemical levels in the wastewater do not exceed federal and state limitations.
Sheffield Pharmaceuticals (“Sheffield”) has a factory at 170 Broad Street in New London that manufactures a wide range of over-the-counter pharmaceutical creams, ointments and toothpastes. From approximately 1986 to July 2011, Sheffield discharged industrial wastewater from its New London manufacturing operations to the New London POTW without a permit and in violation of Connecticut’s approved pretreatment program. The New London POTW discharges to the Thames River in southeastern Connecticut. During this entire time period, Sheffield lacked a pretreatment system at its factory to treat its industrial wastewater prior to discharge to the New London POTW, performed no regular monitoring of its discharges of industrial wastewater, and submitted no monthly monitoring reports to the CT DEEP.
After becoming the company’s president and chief executive officer in April 2003, FARIA soon learned through his own employees that Sheffield was discharging pollutants considered toxic under federal environmental law in its industrial wastewater without the required permit. FARIA also learned that in order to obtain a permit from CT DEEP, the company would have to install, at significant expense, a wastewater pretreatment system that would pretreat its industrial wastewater prior to discharging it to the New London POTW. Although FARIA’s own employees urged him to make the financial investment to bring the company into compliance, FARIA chose not to do so. FARIA continued this illegal course even when four environmental consulting firms, which the company had hired, advised him that the discharge of industrial wastewater to the public sewage treatment system, without a pretreatment system and CT DEEP permit, is illegal.
On April 20, 2011, the CT DEEP conducted an unannounced inspection of Sheffield. After finding that the company had no wastewater discharge permits, the CT DEEP inspector issued a Notice of Violation and cited the company for discharging manufacturing and laboratory wastewater without a permit. On or about May 27, 2011, Faria Limited, LLC submitted a permit application to CT DEEP so that the company could legally discharge industrial wastewater from its New London facility into the New London POTW. By July 2011, the company had installed a wastewater pretreatment system at its factory to pretreat the pollutants contained in its industrial wastewater prior to its discharge to the New London POTW.
“Managers of Connecticut factories who knowingly violate federal and state environmental law risk federal prosecution and a felony conviction,” said U.S. Attorney Daly. “The Clean Water Act applies to every industrial entity doing business in Connecticut. This Office will vigorously prosecute corporate officers whose decisions and actions threaten Connecticut’s natural resources and harm the public’s right to a clean environment. We recognize and thank the EPA and DEEP for their invaluable work in protecting the environmental integrity of Connecticut’s rivers and the Long Island Sound.”
“This defendant engaged in a longstanding scheme of illegally dumping millions of gallons of untreated pollutants to the sewer system over a period of seven years,” said EPA Special Agent in Charge Amon. “As the top executive, Defendant Faria cheated the public utility and undercut his competitors all while his employees and consultants were telling him to follow the law.”
“This case sends a clear signal that intentionally violating the environmental laws and regulations of Connecticut will not be tolerated and will be dealt with accordingly,” said DEEP Commissioner Robert Klee. “The U.S. Attorney’s office aggressively prosecuted this case and has brought it to a successful conclusion. I commend their efforts.”
On July 8, 2014, FARIA waived his right to indictment and pleaded guilty to one count of knowingly violating, or causing to be violated, the Clean Water Act. As a condition of his guilty plea, FARIA resigned from the company on March 7, 2014, and shall have no role in the operations or management of Faria Limited. He now resides in Portland, Oregon.
This matter was investigated by the U.S. Environmental Protection Agency and the Connecticut Department of Energy and Environmental Protection. The case was prosecuted by Assistant U.S. Attorney Hal Chen and Special Assistant U.S. Attorney Peter Kenyon.
PUBLIC AFFAIRS CONTACT:
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[email protected]West Hartford Woman Pleads Guilty to Tax EvasionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that STEPHANIE ELLIOTT, 42, of West Hartford, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to one count of tax evasion.
This matter stems from an Internal Revenue Service investigation into State of Connecticut employees who had little or no federal withholding taken out of their paychecks and who failed to file income tax returns. The investigation revealed that certain state employees submitted fraudulent W-4 forms claiming numerous exemptions and had no money withheld from their wages.
According to court documents and statements made in court, ELLIOTT has been employed by the Connecticut Department of Mental Health and Addiction Services at the Connecticut Valley Hospital since 1999, first as a mental health assistant and later as a nurse. ELLIOTT submitted a false Form W-4 to the state indicating that she had 99 exemptions and was exempt from tax withholding. As a result, no money was withheld from her wages. During the 2007 through 2012 tax years, ELLIOTT paid no federal income taxes on more than $515,000 in income she received, resulting in a federal tax loss of $73,599.
Judge Thompson scheduled sentencing for May 11, 2015, at which time ELLIOTT faces a maximum term of imprisonment of five years and a fine of up to $250,000. She also is required to pay back taxes, plus interest and penalties.
ELLIOTT was charged by indictment on April 9, 2014, and is currently released on bond.
This ongoing investigating is being conducted by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Susan Wines.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]