District of Connecticut
Press releases recorded for this federal judicial district.
Branford Resident Admits Running Ponzi SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that FEISAL SHARIF, 43, of Branford, waived his right to indictment and pleaded guilty today before United States District Judge Stefan R. Underhill in Bridgeport to fraud offenses stemming from his operation of a Ponzi scheme that defrauded investors of approximately $3.6 million.
According to court documents and statements made in court, from approximately 2003 to September 2012, SHARIF ran an investment fraud scheme through First Financial, LLC, a firm he operated out of his Branford residence. As part of the scheme, SHARIF convinced numerous individuals to give him money to invest in what they believed was a commodity pool to profit from trading in commodity futures. In an effort to make investors believe that their money was safely invested and earning a sizeable return, SHARIF regularly would make monthly payments to investors, falsely claiming they represented returns on their investments. He also supplied investors with monthly statements from First Financial that falsely reported the purported balances of their investments and their rate of return on the investments.
In reality, SHARIF was simply paying existing investors with new money he raised from other investors. Very little of the investment money he raised was used to trade in commodity futures, and what he did invest in commodity futures did not generate returns anywhere near those he reported to investors.
Through this scheme, SHARIF defrauded more than 50 investors of approximately $3.6 million. Many of these victims were relatives, friends and people he knew through their common connection with a religious institution.
SHARIF pleaded guilty to one count of fraud by a commodity pool operator, which carries a maximum term of imprisonment of 10 years, and one count of wire fraud, which carries a maximum term of imprisonment of 20 years. Judge Underhill has scheduled sentencing for November 19, 2013.
This matter is being investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service. Acting U.S. Attorney Daly also acknowledged the assistance of the Commodity Futures Trading Commission and the State of Connecticut Department of Banking. The case is being prosecuted by Assistant U.S. Attorney Paul Murphy.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Florida Man Sentenced to 27 Months in Federal Prison for Participating in Oxycodone Trafficking RingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that WILNER CASTELIN, also known as “Castro,” 44, of Fort Lauderdale, Fla., was sentenced today by United States District Judge Janet C. Hall in New Haven to 27 months of imprisonment, followed by three years of supervised release, for participating in an oxycodone trafficking ring. On May 13, 2013, a jury found CASTELIN guilty of one count of conspiracy to distribute and to possess with intent to distribute oxycodone, and one count of conspiracy to commit money laundering.
This matter stems from “Operation Blue Coast,” an investigation headed by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force into the large-scale trafficking of oxycodone pills from Florida to Connecticut. The investigation revealed that an individual regularly purchased oxycodone from suppliers in Florida, transported the oxycodone to Connecticut by commercial airline or automobile, and sold the pills for profit to various Connecticut-based narcotics dealers. He then transported the proceeds of his oxycodone sales from Connecticut to Florida, either by having a courier drive the money or by using commercial airline flights.
The evidence at trial revealed that the narcotics trafficker met David Gaudiosi and Bruce Yazdzik, two large-scale oxycodone distributors in Connecticut, in early 2010. After the meeting, Gaudiosi and Yazdzik visited the narcotics trafficker in Florida on multiple occasions to obtain prescriptions for oxycodone from unscrupulous pain clinics, commonly referred to as “pill mills.” The trafficker paid CASTELIN to chauffeur Gaudiosi and Yazdzik during their Florida visits. CASTELIN subsequently agreed to travel to the northeastern U.S. to drive large amounts of U.S. currency, which were proceeds of the narcotics trafficker’s oxycodone sales in Connecticut, to Florida. CASTELIN was paid approximately $1,000 to $1,250 for each trip.
CASTELIN was arrested on September 13, 2011.
Twenty individuals, including two law enforcement officers and three Transportation Security Agency officers, have been charged as a result of this investigation.
Gaudiosi and Yazdzik each pleaded guilty to oxycodone trafficking charges. On November 14, 2012, Yazdzik was sentenced to 120 months of imprisonment. Gaudiosi awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force, which includes personnel from the Connecticut State Police and the Bridgeport, Milford, Norwalk, Stamford and Westport Police Departments; the Drug Enforcement Administration in Florida and the U.S. Department of Homeland Security Office of Inspector General. In addition, the U.S. Marshals Service and the Greenwich, Monroe, Danbury and Waterbury Police Departments have assisted the investigation.
This case is being prosecuted by Assistant United States Attorneys Rahul Kale and Brian Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Indictment Charges New London Man with Federal Firearms OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned a two-count indictment charging MAURICE L. MILLIGAN, 34, of New London with firearms offenses. The indictment was returned on August 21, 2013.
As alleged in the indictment, between April 22 and April 25, 2013, MILLIGAN possessed a loaded 9mm semi-automatic pistol with an obliterated serial number. Prior to April 2013, MILLIGAN had been convicted in the Queens County (N.Y.) Supreme Court of third degree criminal possession of a loaded firearm and second degree robbery.
MILLIGAN is charged with one count of possession of a firearm by a convicted felon, which carries a maximum term of imprisonment of 10 years imprisonment and a fine of up to $250,000, and one count of possession of a firearm with an obliterated serial number, which carries a maximum term of imprisonment of five years and a fine of up to $250,000.
This matter has been assigned to U.S. District Judge Vanessa L. Bryant in Hartford.
Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the New London Police Department and the Office of the State’s Attorney for the Judicial District of New London. The case is being prosecuted by Assistant U.S. Attorney John H. Durham.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]East Windsor Gun Store Owner Admits Multiple Federal Firearms ViolationsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kenneth J. Croke, Acting Special Agent in Charge of the ATF Boston Field Division, announced that DAVID LAGUERCIA, 56, of Broad Brook, pleaded guilty today in Bridgeport federal court to violating federal firearms laws. LAGUERCIA was the owner and operator of Riverview Gun Sales, located at 4 Prospect Hill Road in East Windsor.
According to court documents and statements made in court, LAGUERCIA, doing business as Riverview Sales, Inc. (“Riverview”), was a federal firearms licensed dealer in Connecticut (“FFL”) from 2005 to December 2012. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted an investigation of LAGUERCIA and Riverview and discovered approximately 300 examples of false or missing information in Riverview’s acquisition and disposition (“A&D”) records. The investigation also revealed at least two instances in which individuals received firearms prior to receiving approval from the national instant criminal background check system (“NICS”). Riverview also failed to report the theft of a firearm within 48 hours, and failed to report multiple sales of handguns to the same individuals.
“This investigation of one of Connecticut’s largest gun dealers revealed hundreds of record-keeping violations, improper sales, shoddy inventory procedures and seemingly non-existent store security,” stated Acting U.S. Attorney Daly. “Federally-licensed firearms dealers are our first line of defense in making sure that firearms don’t wind up in the wrong hands, and gun dealers who don’t follow the rules and violate federal law will be prosecuted.”
“Today is an example of the consequences federal firearms dealers face when they commit violations and put communities in danger with their actions,” stated ATF Acting Special Agent in Charge Croke. “It is critical for FFLs to comply with federal laws and regulations. ATF has a responsibly to ensure they do, thereby keeping firearms out of the hands of individuals who are prohibited from having them to ensure that our citizens are safe.”
LAGUERCIA pleaded guilty today before United States Magistrate Judge Holly B. Fitzsimmons to one count of transfer of a firearm before completion of background check, and one count of failure to maintain proper firearm records. LAGUERCIA also entered a guilty plea on behalf of RIVERVIEW SALES, INC. to one count of making false entries in dealer’s records. The maximum penalty on each of the charges is one year of imprisonment, five years of probation and a $100,000 fine.
Sentencing has been scheduled for November 14, 2013.
On December 20, 2012, ATF issued a revocation of Riverview’s FFL, effective on that date. LAGUERCIA has not appealed this administrative decision.
As part of his guilty plea, LAGUERCIA agreed that he will not be an FFL or a responsible party for an FFL for a period of five years. He also has agreed to sell or transfer any firearms remaining in Riverview’s inventory to another FFL.
This matter is being prosecuted by Assistant United States Attorney Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Norwalk Resident Sentenced to More Than Five Years in Federal Prison for Trafficking NarcoticsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced HECTOR VALLE, 43, a citizen of Mexico last residing in Norwalk, was sentenced today by United States District Judge Janet C. Hall in New Haven to 65 months of imprisonment, followed by four years of supervised release, for trafficking narcotics.
According to court documents and statements made in court, on March 27, 2012, New York Police Department officers conducting a narcotics trafficking investigation contacted the Drug Enforcement Administration in Bridgeport with information that individuals operating out of 18-20 Taylor Avenue and 20 Woodbury Avenue in Norwalk had just received a multiple-kilogram shipment of cocaine. Based upon this information, on the morning of March 28, members of the DEA Bridgeport High Intensity Drug Trafficking Area Task Force and the Norwalk Police Department’s Special Services Division executed a court-authorized search of 20 Woodbury Avenue and encountered VALLE, Jose Mendez-Luna and others. A search of VALLE’s bedroom revealed quantities of cocaine and heroin, drug ledgers and approximately $8,000 in cash. In a bedroom that Mendez-Luna had been using, officers located a 9-millimeter firearm, a magazine with four rounds of ammunition, approximately 262 grams of cocaine, two digital scales, narcotics packaging materials and nine cell phones. Approximately one ounce of heroin was also recovered from the kitchen of the residence.
A subsequent court-authorized search of 18-20 Taylor Avenue yielded approximately five kilograms of heroin, 10 pounds of Methamphetamine, $279,000 in cash, one handgun, ammunition and narcotics packaging materials.
VALLE has been detained since his arrest on March 28, 2012. On March 15, 2013, he pleaded guilty to one count of conspiracy to possess with the intent to distribute 500 grams or more of cocaine.
Mendez-Luna also pleaded guilty and, on July 17, 2013, he was sentenced to 30 months of imprisonment.
This matter was investigated by Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force, which is composed of members of the Bridgeport, Milford, Norwalk, Stamford, Stratford and Westport Police Departments. The investigation was significantly assisted by the Norwalk Police Department’s Special Services Division and the New York Police Department.
This case was prosecuted by Assistant United States Attorneys Sarah Karwan and Vanessa Richards.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Jamaican National Sentenced to Prison for Passport FraudRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that KEVIN DEAN BROWN, 43, a citizen of Jamaica last residing in Mount Vernon, N.Y., was sentenced today by United States District Judge Janet C. Hall in New Haven to eight months of imprisonment for passport fraud.
According to court documents and statements made in court, on May 30, 2006, BROWN used the name and identity documents of a U.S. citizen when filing an application for a U.S. passport at a post office in Hamden. A U.S. passport was issued to BROWN in November 2006.
BROWN has been detained since his arrest on April 4, 2013. On May 29, 2013, he pleaded guilty to one count of making a false statement in an application for a U.S. passport.
BROWN faces deportation proceedings when he completes his prison term.
This matter was investigated by the U.S. Department of State, Bureau of Diplomatic Security, with the assistance of the New York State Department of Motor Vehicles. The case was prosecuted by Assistant United States Attorney Deborah R. Slater.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Controller of Stamford Company Sentenced to 54 Months in Prison for Embezzlng More Than $3.4 MillionRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that THOMAS J. TUREY, 64, of Norwalk, was sentenced yesterday by United States District Judge Janet C. Hall in New Haven to 54 months of imprisonment, followed by three years of supervised release, for embezzling more than $3.4 million from his employer.
According to court documents and statements made in court, TUREY served as the controller for a market research company located in Stamford. As controller, TUREY’s responsibilities included aggregating the company’s monthly revenue and expense results, managing the company’s accounts receivable, performing financial analysis and reporting, and overseeing the company’s bookkeeper. TUREY also was responsible for the company’s general ledger and was in charge of conducting the company’s bank reconciliations. Between August 2005 and January 2013, TUREY embezzled approximately $3,462,435 from the company by writing checks to himself and to a fictitious entity for his personal benefit, and depositing those funds into bank accounts he controlled. TUREY made numerous false entries in the company’s books and records to conceal this scheme.
The majority of the embezzled funds were subsequently transferred into TUREY’s online brokerage account.
On May 23, 2013, TUREY pleaded guilty to one count of wire fraud.
Judge Hall ordered TUREY to pay full restitution to the victim company.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Paul A. Murphy.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Waterbury Man Admits Robbing Banks in Waterbury and New BritainRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that VICTOR RAMOS, 31, of Waterbury, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to one count of bank robbery.
According to court documents and statements made in court, on February 1, 2013, RAMOS, Jose Rivera and others committed an armed robbery of the TD Bank located on Hartford Road in New Britain, stealing approximately $24,480. On February 21, 2013, RAMOS, Rivera and others committed an armed robbery of the TD Bank located on North Main Street in Waterbury, stealing approximately $5,319.
In pleading guilty, RAMOS also admitted that he violently stole $100 from a small business in Waterbury on January 28, 2013.
RAMOS has been detained since his arrest on June 5, 2013.
Rivera, 41, of Waterbury, has been detained since his arrest on February 21, 2013. On August 7, 2013, he also pleaded guilty to one count of bank robbery.
RAMOS and Rivera are scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on November 7, 2013, at which time they face a maximum term of imprisonment of 25 years.
This matter is being investigated by the Federal Bureau of Investigation, the Waterbury Police Department and the New Britain Police Department. The case is being prosecuted by Assistant United States Attorney Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Citizen of Romania Admits Role in Atm Skimming SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that IONUT-IULIAN VLAD, 29, a citizen of Romania, pleaded guilty today before United States Magistrate Judge Joan G. Margolis in New Haven to one count of conspiracy to commit bank fraud stemming from his role in an ATM “skimming” scheme.
According to court documents and statements made in court, VLAD and others conspired to install “skimming” devices on automated teller machines (“ATMs”) at Bank of America locations in Connecticut. The devices were able to capture the information encoded on the magnetic strips of bank cards used by ATM customers. The co-conspirators also placed devices on the ATMs that contained hidden pinhole cameras, which recorded the personal identification numbers that bank customers keyed into the ATMs to gain access to their accounts. The co-conspirators used the stolen information captured by the skimming devices and pinhole cameras to create counterfeit bank cards that allowed them to withdraw more than $100,000 in funds from the customers’ accounts.
In February 2013, surveillance video captured VLAD removing skimming devices and pinhole cameras from Bank of America ATMs in Wallingford and Greenwich.
VLAD has been detained since his arrest by the Stamford Police Department on March 2, 2013. At the time of his arrest, VLAD possessed ATM skimming tools and double-sided tape.
VLAD is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on November 8, 2013, at which time he faces a maximum term of imprisonment of 30 years, a fine of up to $1 million and an order of restitution.
This investigation is being conducted by the Connecticut Financial Crimes Task Force, which includes members of the United States Secret Service, United States Postal Inspection Service, United States Department of State, Bureau of Diplomatic Security, Internal Revenue Service – Criminal Investigation, Connecticut State Police, and the Greenwich, Hartford, Stamford, Shelton and Stratford Police Departments. Acting U.S. Attorney Daly specifically recognized the efforts of the Greenwich and Stamford Police Departments for their assistance in the investigation and prosecution of this matter.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former New Fairfield Resident Sentenced to 42 Months in Federal Prison for Trafficking MarijuanaRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that RAYMOND MASSAGLI, 31, formerly of New Fairfield, Conn. and Somerset, Mass., was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 42 months of imprisonment, followed by two years of supervised release, for trafficking marijuana.
According to court documents and statements made in court, this matter stems from a Drug Enforcement Administration and Connecticut State Police Statewide Narcotics Task Force investigation into a large-scale marijuana growing and trafficking organization that operated in the greater Danbury area and had ties to New York, Massachusetts, and Vermont. Between June 2011 and June 2012, the drug trafficking organization conspired to manufacture, sell, and distribute more than 1,000 kilograms of marijuana.
The investigation, which included the use of court-authorized wiretaps, revealed that Nicolas Calamaras of New Fairfield was distributing marijuana to numerous individuals in the Danbury area. Beginning in April 2012, investigators learned that MASSAGLI sold large quantities of marijuana to Calamaras, partnered with Calamaras to sell marijuana to co-defendant and Vermont resident Weston Robinson, bought marijuana plants from Calamaras to begin his own grow house operation, and conspired with Calamaras and others to expand their narcotics trafficking activities.
MASSAGLI was arrested on July 2, 2012. On May 29, 2013, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute more than 100 kilograms of marijuana.
MASSAGLI has been detained since July 16, 2013, after he violated conditions of his release and his bond was revoked.
Thirteen individuals were charged a result of the investigation, during which investigators seized marijuana, more than $520,000 in cash, 10 firearms, vehicles and real property.
As part of his sentence, MASSAGLI was ordered to forfeit his 2008 Nissan Titan SE pickup truck.
Calamaras has pleaded guilty and awaits sentencing. Robinson also pleaded guilty and, on July 31, 2013, he was sentenced to 12 months and one day of imprisonment.This matter is being investigated by the Drug Enforcement Administration and the Connecticut State Police Statewide Narcotics Task Force Northwest Office. The case is being prosecuted by Assistant United States Attorneys Tracy L. Dayton and David X. Sullivan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Hartford Resident Sentenced to 10 Years in Federal Prison for Child Sex Trafficking OffenseRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that BRUCE DAMICO, 35, formerly residing in Hartford, Providence, R.I., and Queens, N.Y., was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 121 months of imprisonment, followed by 10 years of supervised release, for recruiting and transporting a minor to engage in prostitution.
According to court documents and statements made in court, DAMICO recruited, harbored and transported women and girls to engage in prostitution. As a part of his prostitution business, DAMICO posted Internet advertisements offering the women and girls for commercial sex acts, and DAMICO was paid by each woman and girl $100 per day for maintaining the advertisements. DAMICO booked hotel rooms where the women and girls would engage in commercial sex acts, and he transported, or arranged the transportation of, the women and girls to prostitution appointments. DAMICO also sold drugs to the women and girls at inflated prices, often resulting in DAMICO obtaining all the money they made.
In pleading guilty, DAMICO admitted that between June 2009 and January 2010, his prostitution enterprise employed a girl who was under the age of 18. DAMICO posted pictures of the minor victim on the Internet to advertise her prostitution services, and he and others working for him transported the minor victim between Connecticut and surrounding states to engage in prostitution.
DAMICO has been detained since his arrest by the Bloomfield Police Department on January 22, 2010. On March 4, 2013, he pleaded guilty to one count of sex trafficking of a minor.
Judge Underhill ordered DAMICO to pay $10,000 in restitution to the minor victim.
This matter was investigated by the Federal Bureau of Investigation and the Bloomfield Police Department. The case was prosecuted by Assistant United States Attorney David E. Novick.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Prisoner at Fci Danbury Admits Assaulting Another InmateRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that YVONNE DAVIS, 62, a prisoner at the Federal Correctional Institution (FCI) in Danbury, pleaded guilty today before Senior United States District Judge Warren W. Eginton in Bridgeport to one count of assault with a dangerous weapon.
According to court documents and statements made in court, on November 25, 2012, DAVIS assaulted another FCI Danbury inmate with a ballpoint pen that had been broken so as to have a sharp edge on it. The victim suffered a laceration to the back of her arm that was five to six inches long and one-half inch deep. The wound required 24 stitches to close.
Judge Eginton has scheduled sentencing for November 6, 2013, at which time DAVIS faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
DAVIS is currently serving a 37-month sentence after having been convicted in the Northern District of Texas of being a felon in possession of a firearm.
This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Neeraj N. Patel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New York Man Sentenced to 42 Months for Passing Counterfeit $100 Bills at Connecticut StoresRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that SHAUN WHITEHEAD, 26, of Brooklyn, N.Y., was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 42 months of imprisonment, followed by five years of supervised release, for using counterfeit U.S. currency to purchase items at five Connecticut stores.
On April 10, 2013, a jury found WHITEHEAD guilty of five counts of passing counterfeit obligations.
According to the evidence presented during the trial, in January and February 2011, WHITEHEAD used counterfeit $100 bills to purchase iPads and Bose headsets from retail stores in Windsor, Waterford, Lisbon, South Windsor and Naugatuck.
WHITEHEAD has been detained since March 9, 2011, when he was arrested in Massachusetts on a state larceny charge. He has been in federal custody since August 24, 2012.
This matter was investigated by the United States Secret Service, with the assistance of the police departments of Windsor, Waterford, South Windsor, Naugatuck and North Attleboro (Mass.), and the Connecticut State Police. The case was prosecuted by Assistant United States Attorneys Felice Duffy and Ray Miller.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Essex Woman Involved in Gifting Tables Pyramid Scheme Is SentencedRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that BETTEJANE HOPKINS, 68, of Essex, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to three years of probation, during which she is required to perform 300 hours of community service, for participating in a pyramid scheme known as “Gifting Tables.”
According to court documents, statements made in court and the evidence presented during a trial of her codefendants, 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.”
From approximately 2008 to 2011, HOPKINS, Donna Bello and Jill Platt oversaw and profited from a Gifting Tables pyramid scheme operating primarily in Connecticut’s shoreline communities. The defendants recruited individuals to join the scheme, prepared and distributed materials to recruits that contained false representations, and affirmatively misrepresented to recruits and participants that Gifting Tables was not a pyramid scheme.
HOPKINS and her codefendants conspired to defraud the Internal Revenue Service by telling recruits and participants that monies given and received during the scheme were tax-free “gifts” under the IRS Code and that lawyers and accountants had approved Gifting Tables as legal ventures that generated tax-free proceeds. They also advised and counseled participants not to report on their tax returns monies received through their participation in the scheme, or deposit a large amount of cash into bank accounts, which would require the bank to report the sum to the IRS.
HOPKINS received at least $89,500 from her participation in the scheme, none of which was reported on her individual income tax return.
On December 18, 2012, HOPKINS pleaded guilty to one count of conspiracy to defraud the Internal Revenue Service.
On February 20, 2013, after a four-week trial, Bello and Platt were convicted of conspiracy to commit wire fraud and conspiracy to defraud the IRS, multiple counts of wire fraud, and filing false tax returns.
Yesterday, Chief Judge Thompson sentenced Bello to 72 months of imprisonment and three years of supervised release, and Platt to 54 months of imprisonment and three years of supervised release. Bello also was ordered to pay a $15,000 fine.
HOPKINS, Bello and Platt were ordered to pay restitution in the amount of $32,000 to several victims of the scheme.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation, and is being prosecuted by Assistant United States Attorneys Douglas P. Morabito and Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Guilford Women Sentenced to Federal Prison for Overseeing Gifting Tables Pyramid SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Phil Hall, Acting Special Agent in Charge of IRS Criminal Investigation in New England, announced that two Guilford women who oversaw a pyramid scheme known as “Gifting Tables” were sentenced today in Hartford federal court. Chief United States District Judge Alvin W. Thompson sentenced DONNA BELLO to 72 months of imprisonment and three years of supervised release, and JILL PLATT to 54 months of imprisonment and three years of supervised release. BELLO also was ordered to pay a $15,000 fine.
“These significant sentences are appropriate for two individuals who profited from an illegal pyramid scheme and conspired to conceal their income from the IRS,” stated Acting U.S. Attorney Daly. “The investigation into this and other Gifting Tables schemes in Connecticut is ongoing. Hopefully, this successful prosecution and the prison terms imposed today will serve as a strong deterrent and end this criminal activity.”
According to the evidence presented during the trial, 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.”
From approximately 2008 to 2011, BELLO, 57, and PLATT, 65, oversaw and profited from this Gifting Tables pyramid scheme. The defendants recruited individuals to join the scheme, prepared and distributed materials to recruits that contained false representations, and affirmatively misrepresented to recruits and participants that Gifting Tables was not a pyramid scheme. Also, in May 2010, the defendants attempted to intimidate a participant who had questioned the legality of the Gifting Table scheme.
BELLO and PLATT also conspired to defraud the Internal Revenue Service by telling recruits and participants that monies given and received during the scheme were tax-free “gifts” under the IRS Code and that lawyers and accountants had approved Gifting Tables as legal ventures that generated tax-free proceeds. In addition, BELLO and PLATT filed false tax returns that failed to report income generated from the scheme.
Evidence at trial included several emails, including an email sent by PLATT in March 2009 that told a participant: “It’s sort of a joke that I refer to our freezer as the ATM.” Later in March 2009, BELLO complained to a co-conspirator and another individual about two recalcitrant recruits, stating: “They have had enough parties. Its [sic] costing us a small fortune in their food and wine delights. No more parties until they commit with the cash.”
In June 2009, BELLO sent an email that said “I am not a . . . saint . . . . I’m teaching you all how to make an extra 80 grand a year . . . . Isn’t that enough?”
Later in October 2009, BELLO emailed a participant: “as women we like our own stash. Keep it in a safe. Keep it quiet because rather not have red flags raised. Hiring accountants and atterneys [sic] is costly.”
On February 20, 2013, after a four-week trial, BELLO and PLATT were convicted of conspiracy to commit wire fraud and conspiracy to defraud the IRS, multiple counts of wire fraud, and filing false tax returns.
BELLO and PLATT were ordered to pay restitution in the amount of $32,000 to several victims of the scheme.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation, and is being prosecuted by Assistant United States Attorneys Douglas P. Morabito and Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Southington Man Pleads Guilty to Mortgage Fraud and Money Laundering OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that HENRY J. PAPALE, 62, of Southington, pleaded guilty today before Senior United States District Judge Ellen Bree Burns in New Haven to federal wire fraud and money laundering offenses stemming from a mortgage fraud scheme.
According to court documents and statements made in court, in 2007, PAPALE used credit information of others to purchase four homes in Florida and obtain mortgage loans. He submitted fraudulent invoices, work authorizations and wire transfer instructions to a settlement agent in Florida, each of which purported to be from a construction company for restoration on the properties. In fact, the construction company was fictitious and no work was performed on the properties. Following the closing on each property, the settlement agent wire transferred loan proceeds, in amounts that corresponded to the price for restoration work, to a bank account in Southington that it believed belonged to the fictitious construction company, but was actually held by certain of PAPALE’s family members. A total of $360,307.23 was transferred to PAPALE’s family members in this manner.
Based on PAPALE’s representations, a member of PAPALE’s family then turned the majority of the fraudulently obtained loan proceeds over to PAPALE, who deposited them into his own bank account. PAPALE transferred $255,500 in fraudulently obtained loan funds from his bank account to an investment trading account.
PAPALE pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of money laundering, which carries a maximum term of imprisonment of 10 years. Judge Burns has scheduled sentencing for November 5, 2013.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Jonathan N. Francis and Michael S. McGarry.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New York Man Sentenced to More Than Three Years in Federal Prison for Distributing MarijuanaRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ALEXANDER LAPPIN, 34, of Brooklyn, N.Y., was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 37 months of imprisonment, followed by three years of supervised release, for distributing marijuana. Judge Arterton also ordered LAPPIN to pay a $3,600 fine and to forfeit $105,825.
According to court documents and statements made in court, this matter stems from a Drug Enforcement Administration and Connecticut State Police Statewide Narcotics Task Force investigation into a large-scale marijuana growing and trafficking organization that operated in the greater Danbury area and had ties to New York, Massachusetts, and Vermont. Between June 2011 and June 2012, the drug trafficking organization conspired to manufacture, sell, and distribute more than 1,000 kilograms of marijuana.
The investigation, which included the use of court-authorized wiretaps, revealed that LAPPIN was selling multi-kilogram quantities of marijuana to Nicolas Calamaras of New Fairfield, who distributed the drug to numerous individuals in the Danbury area.
Thirteen individuals were charged a result of the investigation, during which investigators seized marijuana, more than $520,000 in cash, 10 firearms, vehicles and real property.
LAPPIN was arrested on June 14, 2012. On that date, investigators seized more than $105,000 in cash from his Brooklyn apartment.
LAPPIN has been detained since his arrest. On May 13, 2013, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute more than 100 kilograms of marijuana.
Calamaras has pleaded guilty and awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration and the Connecticut State Police Statewide Narcotics Task Force Northwest Office. The case is being prosecuted by Assistant United States Attorneys Tracy L. Dayton and David X. Sullivan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Connecticut Landlords Ordered to Pay More Than $100k for Discriminating Against Prospective TenantsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Bryan Greene, Acting Assistant Secretary of Fair Housing and Equal Opportunity for the U.S. Department of Housing and Urban Development, today announced that a federal judge in New Haven has found the owners of a property in Windsor Locks, Conn., liable for violating the Fair Housing Act by discriminating against prospective tenants based on their race.
In October 2011, the United States brought an action against Merline Hylton, the owner of 5 Townline Road in Windsor Locks, her husband Clifton Hylton and Hylton Real Estate Management (HREM), after the Connecticut Fair Housing Center filed a complaint with the U.S. Department of Housing and Urban Development on behalf of alleged victims of discrimination. In March 2013, U.S. District Judge Janet C. Hall presided over a bench trial in the matter.
On May 1, 2013, Judge Hall issued a ruling that found that the defendants had violated the Fair Housing Act by refusing to rent to tenants based on their race; discriminating in the terms, conditions, or privileges of renting to prospective tenants based on their race; and making discriminatory statements based on race regarding the rental of their property. Merline Hylton was ordered to pay compensatory damages for the actions of her husband and HREM, and Clifton Hylton and HREM were ordered to pay compensatory and punitive damages to the victims totaling $76,091.05. Judge Hall found that Clifton Hylton acted with evil motive and showed no remorse for his conduct, justifying an award of punitive damages.
On July 26, 2013, Judge Hall also ordered the defendants to pay attorneys’ fees in the amount of $37,422 to the Connecticut Fair Housing Center, who represented the victims and tried the case with the United States.
“Discrimination in housing in Connecticut will not be tolerated and those who discriminate will be aggressively pursued,” stated Acting U.S. Attorney Daly. “We will not hesitate to take enforcement action where a person’s federal rights are denied.”
“Racial discrimination in housing not only violates the law and our commonly-held moral precepts as Americans, it also causes great economic and social harm to the family denied the opportunity to live in the neighborhood of their choice,” stated HUD Acting Assistant Secretary Greene. “HUD and the Department of Justice will continue to enforce the fair housing laws to ensure that everyone with the wherewithal to pay has equal access to America's neighborhoods.”
In addition to awarding monetary damages, Judge Hall ordered that the defendants complete three hours of fair housing training each year, post signs on their dwellings indicating that their dwellings are available on a non-discriminatory basis, and report to the government any complaints alleging discrimination filed by their tenants.
This case was prosecuted by Assistant United States Attorney Ndidi N. Moses and Timothy Bennett-Smyth from the Connecticut Fair Housing Center.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Individuals who believe that they may have been victims of housing discrimination can file a complaint with the U.S. Attorney’s Office at 203-821-3700, call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Three Charged with Participating in Mortgage Fraud SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in Hartford has returned an indictment charging three individuals with participating in a mortgage fraud scheme involving the purchase of more than 40 properties throughout Connecticut. The seven-count indictment, which was unsealed today, charges FILIPPOS MILIOS, also known as “Filip,” 54, of Newington, MALGORZATA KARAS-GOLKA, also known as “Margaret,” 45, of Newington, and CARMELINDA MAROTTA, also known as “Linda,” 44, of Manchester, with conspiracy and fraud offenses.
According to the indictment, from approximately June 2005 to at least November 2008, MILIOS, KARAS-GOLKA, MAROTTA and others conspired to commit mail and bank fraud by defrauding banks and mortgage lenders in obtaining dozens of mortgages for the sale of properties owned by MILIOS and KARAS-GOLKA. Some of the loans involved in the scheme were insured through the Federal Housing Administration (“FHA”).
The indictment alleges that the mortgage fraud conspiracy involved the use of straw borrowers, false mortgage applications, false HUD-1 forms, fraudulent down payments, and false verification forms in connection with the purchase of more than 40 houses in Hartford, New Haven and Middlesex counties. As part of the scheme, MILIOS, MAROTTA and others recruited or identified borrowers to purchase properties from MILIOS, KARAS-GOLKA and their co-conspirators. MILIOS is alleged to have made the down payments on behalf of the borrowers recruited to purchase the properties he and his co-conspirators were selling.
The indictment also alleges that MILIOS, KARAS-GOLKA and MAROTTA falsely represented to the lenders that a borrower intended to occupy a property as a primary residence. Part of the conspiracy involved borrowers submitting mortgage applications to purchase multiple properties as primary residences.
The indictment alleges that MILIOS paid money to borrowers, mortgage brokers, and recruiters, including MAROTTA, which was not disclosed to the mortgage lenders. MILIOS and MAROTTA also concealed from the lenders MAROTTA’s involvement in several fraudulent transactions and her receipt of a portion of the seller’s proceeds.
The indictment further alleges that MILIOS engaged in a money laundering conspiracy with Gabriel Serrano, a closing attorney. In the course of many of the fraudulent closings involving MILIOS’s sale to borrowers, Serrano received mortgage proceeds from banks and mortgage lenders. Serrano would frequently disburse some of those proceeds to private lenders who had loaned MILIOS money to purchase those properties.
MILIOS, KARAS-GOLKA and MAROTTA are charged with one count of conspiracy to commit mail and bank fraud, as well as separate counts of bank fraud. Each of these charges carries a maximum term of imprisonment of 30 years. MILIOS and KARAS-GOLKA are also charged with separate counts of mail fraud. Each of these charges carries a maximum term of imprisonment of 20 years.
The indictment also charges MILIOS with conspiracy to commit money laundering, a charge that carries a maximum term of imprisonment of 10 years, and KARAS-GOLKA with making a false statement to federal agents in March 2013, a charge that carries a maximum term of imprisonment of five years.
MILIOS was originally charged by criminal complaint in January 2013.
The three defendants appeared today before U.S. Magistrate Judge Thomas P. Smith in Hartford, pleaded not guilty to the charges and were released on bond.
On August 6, 2013, Serrano waived his right to indictment and pleaded guilty to one count of conspiracy to commit mail and bank fraud, and one count of conspiracy to commit money laundering. He awaits sentencing.
As to MILIOS, KARAS-GOLKA and MAROTTA, Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys David T. Huang and Paul H. McConnell.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Man Pleads Guilty to Role in Crack Distribution RingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MUJAHID MUHAMMED, also known as “Doughboy,” 28, of New Haven, pleaded guilty before Chief United States District Judge Alvin W. Thompson in Hartford to one count of conspiracy to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”).
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 into drug distribution and related gang activity in The Hill neighborhood of New Haven. The investigation, which included the use of court-authorized wiretaps, revealed that MUHAMMED regularly obtained large quantities of crack cocaine from sources in New York City, and that he and other members and associates of the Southside Bloods street gang distributed the drug in the New Haven area.
Chief Judge Thompson has scheduled sentencing for October 30, 2013, at which time MUHAMMED faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Six of the 10 individuals charged as a result of the result of the investigation have pleaded guilty. As to the four defendants who are awaiting trial, Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter has been investigated by the FBI’s New Haven Safe Streets Task Force, including the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorneys Anthony Kaplan and Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Canaan Man Admits Involvement in Organized Crime-controlled Gambling RingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSEPH BOREA, 56, of New Canaan, pleaded guilty today before United States District Judge Vanessa L. Bryant in Hartford to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations (RICO) Act stemming from his involvement in organized-crime controlled gambling businesses.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, BOREA, Dean DePreta, Richard Uva and 17 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs. As part of the conspiracy, DePreta and Uva were involved in the collection and payment of “tribute” payments to Gambino organized crime family associates in New York.
The investigation, which included the use of court-authorized wiretaps, revealed that DePreta operated a large-scale sports bookmaking business in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica. Uva served as the “master agent” for the bookmaking operation.
In addition, DePreta, Uva and others operated card gambling clubs in Stamford and Hamden where a house percentage, commonly referred to as a “rake,” was collected from every hand played.
BOREA collected gambling debts for DePreta and Uva.
Judge Bryant has scheduled sentencing for October 30, 2013, at which time BOREA faces a maximum term of imprisonment of 20 years. He also has agreed to forfeit $75,000.
BOREA has been released on bond since his arrest on June 13, 2013.
DePreta and Uva have pleaded guilty and await sentencing.
FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
To date, the defendants who have pleaded guilty have agreed to forfeit a total of more than $1.4 million.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorneys Hal Chen and Peter Jongbloed.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]West Hartford Attorney Pleads Guilty to Participating in Mortgage Fraud and Money Laundering ConspiraciesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that GABRIEL SERRANO, 47, of West Hartford, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to conspiracy charges stemming from his role in an extensive mortgage fraud scheme. SERRANO, an attorney, is a partner in the law firm of Serrano & Serrano, LLC.
According to court documents and statements made in court, from approximately June 2005 to at least November 2008, SERRANO was involved in a mortgage fraud conspiracy that involved the use of straw borrowers, false mortgage applications, false HUD-1 forms, fraudulent down payments, and false verification forms for the purchase of numerous houses in Hartford, New Haven, and Middlesex counties. SERRANO served as the closing attorney on at least two dozen fraudulent transactions.
SERRANO often served as the closing attorney when a co-conspirator purchased properties with financing from private lenders. Later, when SERRANO’s co-conspirator sold many of the properties to a buyer, SERRANO usually represented the buyer. In connection with many of the transactions where SERRANO’s co-conspirator sold properties, SERRANO knew that his co-conspirator, and not the borrower, had provided the required down payment checks on behalf of the borrower. SERRANO often released the seller’s proceeds checks to his co-conspirator before receiving a down payment, and he knew that his co-conspirator would use the seller’s proceeds checks to obtain the down payment check for the same transaction. In this way, contrary to what SERRANO led the mortgage lenders to believe, the borrowers were purchasing the properties with no down payment funds of their own.
In addition, some of the borrowers purchased multiple properties from SERRANO’s co-conspirator and represented to the mortgage lenders that they were purchasing each of the properties as primary residences. SERRANO knew that the borrowers did not intend to use the properties as primary residences.
In the course of many of the fraudulent closings involving his co-conspirator’s sale to borrowers, SERRANO received mortgage proceeds from banks and mortgage lenders. SERRANO would frequently disburse some of those proceeds to private lenders who had loaned his co-conspirator money to purchase those properties.
SERRANO has agreed that the loss attributable to his conduct is approximately $3.5 million.
SERRANO pleaded guilty to one count of conspiracy to commit mail and bank fraud, a charge that carries a maximum term of imprisonment of 30 years, and one count of conspiracy to commit money laundering, a charge that carries a maximum term of imprisonment of 10 years. He is scheduled to be sentenced by Chief United States District Judge Alvin W. Thompson on October 29, 2013.
This case is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service, and the United States Postal Inspection Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys David T. Huang and Paul H. McConnell.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Man Charged with Federal Crack Cocaine, Marijuana and Firearms OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Hartford returned an indictment today charging FRANK D. GOMEZ, 34, of New Haven, with crack cocaine, marijuana and firearms offenses.
As alleged in the four-count indictment, on July 14, 2013, GOMEZ possessed with intent to distribute 28 grams or more of crack cocaine and a quantity of marijuana. The indictment further alleges that GOMEZ, a previously convicted felon, also possessed a loaded .380 caliber Kel-Tec semi-automatic pistol in furtherance of his drug trafficking activities.
The indictment charges GOMEZ with possession with intent to distribute 28 grams or more of cocaine base (“crack”), which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and with possession with intent to distribute marijuana, which carries a maximum term of imprisonment of 20 years. The indictment also charges GOMEZ with possession of a firearm in furtherance of drug trafficking, which carries a mandatory consecutive prison term of five years, and possession a firearm by a convicted felon, which carries a maximum term of imprisonment of 10 years. If GOMEZ is determined to be an Armed Career Criminal based on his prior criminal record, he faces a mandatory term of imprisonment of 15 years and a maximum term of life.
Acting U.S. Attorney Daly stressed that an Indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case has been assigned to U.S. District Judge Janet C. Hall in New Haven.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the New Haven Police Department. The case is being prosecuted by Assistant United States Attorney John H. Durham.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Crack Dealer Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that RUFUS HUNTER, also known as “Trip,” and “Triple Black,” 31, of New Haven, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 130 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
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 into drug distribution and related gang activity in The Hill neighborhood of New Haven. The investigation, which included the use of court-authorized wiretaps, revealed that members and associates of the Southside Bloods were distributing large quantities of crack cocaine. Phone calls intercepted during the course of the investigation revealed that HUNTER was at the center of a crack distribution ring and a member of the Bloods, which at the time was feuding with the rival Grape Street Crips. Between December 2011 and April 2012, investigators made four controlled purchases of crack cocaine from HUNTER.
On May 31, 2012, investigators executed a search and seizure warrant at a West Haven residence associated with HUNTER and seized a loaded .45 caliber pistol and a nine millimeter pistol, both of which have been identified as belonging to HUNTER.
On April 16, 2013, HUNTER pleaded guilty to one count of conspiracy to possess with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
This matter has been investigated by the FBI’s New Haven Safe Streets Task Force, including the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorneys Anthony Kaplan and Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Fci Danbury Employee Pleads Guilty to Sexual Abuse ChargeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that STEVEN WOLFF, 45, of the Bronx, N.Y., pleaded guilty today before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to one count of sexual abuse of a ward.
According to court documents and statements made in court, WOLFF, while employed as a Utilities Systems Repair Operator Foreman by the Federal Bureau of Prisons at the Federal Correctional Institution in Danbury, engaged in sexual acts with one of the female inmates at the prison. On multiple occasions between July 2011 and November 27, 2011, WOLFF and the victim met privately in the boiler area of the prison facility and engaged in sexual intercourse. In addition, WOLFF provided contraband including hair dye, candy, greeting cards and over-the-counter medication to the inmate. Contraband was also provided to another inmate who acted as a lookout during the illicit sexual activity.
WOLFF is scheduled to be sentenced by Senior United States District Judge Warren W. Eginton in Bridgeport on October 29, 2013, at which time WOLFF faces a maximum term of imprisonment of 15 years of imprisonment and a fine of up to $250,000.
This case was investigated by the Department of Justice Office of Inspector General and is being prosecuted by Assistant United States Attorney Anastasia E. King.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Trumbull Man Admits Involvement in Organized Crime-controlled Gambling RingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that RICHARD UVA, also known as “Big Baldy,” 44, of Trumbull, formerly of Stamford, pleaded guilty today before United States Magistrate Judge Thomas P. Smith in Hartford to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations (RICO) Act stemming from his involvement in organized-crime controlled gambling businesses.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, UVA, Dean DePreta and 18 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs in Stamford and Hamden. UVA and DePreta are alleged associates of the Gambino organized crime family.
The investigation, which included the use of court-authorized wiretaps, revealed that UVA assisted DePreta’s operation of a large-scale sports bookmaking business in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica. UVA served as the “master agent” for the bookmaking operation.
In addition, DePreta, UVA and others operated a card gambling club at 2965 State Street in Hamden, where a house percentage, commonly referred to as a “rake,” was collected from every hand played. UVA supervised the club’s operation.
In pleading guilty, UVA also admitted that he committed acts of extortion while participating in this racketeering enterprise. UVA collected “tribute” payments from independent sports bookmakers operating in Connecticut, which payments were subsequently delivered to Gambino Family associates in New York.
UVA is scheduled to be sentenced by United States District Judge Vanessa L. Bryant on October 24, 2013, at which time he faces a maximum term of imprisonment of 20 years. He also has agreed to forfeit $250,000.
UVA has been released on bond since his arrest on June 13, 2013.
DePreta has pleaded guilty and awaits sentencing.
FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
To date, the defendants who have pleaded guilty have agreed to forfeit more than $1.3 million.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorneys Hal Chen and Peter Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Norwalk Man Impersonated Organized Crime Figures to Extort $200,000 from Fairfield County BusinessmanRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that JOSEPH CASOLO, 45, of Norwalk, waived his right to indictment and pleaded guilty yesterday before United States Magistrate Judge Thomas P. Smith in Hartford to one count of extortion.
According to court documents and statements made in court, between approximately September 2010 and December 2011, CASOLO extorted money from a small-business owner in Fairfield County by impersonating organized crime figures. CASOLO threatened the victim in person, in phone conversations and in text messages using multiple personas, repeatedly stating or implying that if the victim failed to make the extortion payments, the victim, the victim’s spouse, and the victim’s daughter would be harmed with violence. CASOLO also enlisted the assistance of an individual who identified himself as “Lorenzo,” the organized crime family’s “enforcer,” and made multiple threatening calls to the victim at CASOLO’s direction.
The investigation has revealed that the victim made more than $200,000 in cash payments to CASOLO as a result of his threats. CASOLO shared a portion of these funds with the individual who played the role of “Lorenzo.”
CASOLO, who has been detained since his arrest on November 20, 2012, is scheduled to be sentenced by United States District Judge Vanessa L. Bryant in Hartford on October 24, 2013. CASOLO faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorney Hal Chen.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Willimantic Man Indicted for Escaping from Halfway HouseRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Hartford returned an indictment today charging SAMUEL VASQUEZ, 26, formerly of Willimantic, with escape from the custody of the Attorney General.
The indictment alleges that, on July 12, 2013, VASQUEZ escaped from custody at Watkinson House Residential Reentry Center in Hartford.
VASQUEZ had been confined to Watkinson House RRC to complete his term of incarceration after being convicted in 2011 in U.S. District Court of unlawful dealing in firearms.
If convicted, VASQUEZ faces a maximum term of imprisonment of five years and a fine of up to $250,000.
VASQUEZ was arrested in Willimantic on July 25, 2013 and is currently detained.
Acting 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 United States Marshals Service and is being prosecuted by Assistant United States Attorney Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Westport Woman Sentenced to Prison for Embezzling More Than $1.8 Million from Foundations, EmployerRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that SOOZI FOLSOM, 55, of Westport, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 46 months of imprisonment, followed by five years of supervised release, for embezzling more than $1.3 million from three charitable foundations, and approximately $500,000 from her employer.
According to court documents and statements made in court, FOLSOM worked as the financial manager for a Westport-based accounting and law firm that had been retained by three charitable foundations. From approximately September 2008 to November 2011, she generated at least 124 fraudulent checks drawn on the bank accounts of the foundations and made payable to “Groundhog, LLC,” an entity she controlled. FOLSOM forged the signature on the fraudulent checks, signing the name of an individual with signatory authority on the foundations’ bank accounts, and then converted the monies to her own personal use. FOLSOM covered up the fraud by manipulating transactions in the accounting software systems that handled the foundations’ accounting and bookkeeping. Through this scheme, FOLSOM stole more than $1.3 million from bank accounts belonging to the three charitable foundations.
The investigation also revealed that FOLSOM had embezzled approximately $500,000 from her employer.
Judge Bryant ordered FOLSOM to pay restitution in the total amount of $1,836,973.11.
On September 17, 2012, FOLSOM waived her right to indictment and pleaded guilty to one count of bank fraud. She has been detained since that date.
This matter was investigated by the United States Secret Service and the Westport Police Department. The case was prosecuted by Assistant United States Attorney Susan Wines.
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Tom Carson
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[email protected]Madison Man Admits Defrauding Banks to Keep Equipment Financing Business AfloatRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the FBI, and Phil Hall, Acting Special Agent in Charge of IRS Criminal Investigation in New England, announced that WILLIAM LECKEY, 47, of Madison, waived his right to indictment and pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to engaging in a scheme to defraud financial institutions of more than $1 million.
“This defendant repeatedly lied to banks defrauding them of over a million dollars,” stated Acting U.S. Attorney Daly. “He did so in hopes of salvaging his business. Bank fraud schemes are never the right course of action for struggling business owners. Those who ignore this advice may well find themselves facing federal criminal charges.”
“As is evident by today’s guilty plea, Mr. Leckey took a series of calculated steps to mislead financial institutions and commit bank fraud for the purpose of keeping afloat his financing business,” stated FBI Special Agent in Charge Mertz. “Mr. Leckey’s conduct was self-serving and without regard for the considerable harm he has caused the victim banks.”
“IRS Criminal Investigation uses all its investigative tools to uncover financial fraud schemes,” stated IRS-CI Acting Special Agent in Charge Hall. “With today’s guilty plea, William Leckey admitted he defrauded financial institutions of over $1million and used those funds for operating capital for his business. IRS Criminal Investigation is proud to bring our forensic accounting skills to this joint investigation to help uncover this and other types of financial crime.”
According to court documents and statements made in court, from approximately 2002 until 2012, LECKEY was the President and owner of Anchor Capital Services, Inc. (“ACS”), which provided financing to companies looking to purchase heavy equipment, such as tractor trailer trucks, dump trucks, backhoes and other similar types of equipment. ACS provided its customers with high interest rate leases, and funded the transactions through lines of credit it had available with various financial institutions. ACS would draw down on the lines of credit it had with these financial institutions by pledging its lease agreements and the related equipment as collateral. After each deal was funded by the financial institutions, ACS’s customer would make monthly payments to ACS on the lease, and ACS would use those funds to pay down the line of credit with the bank.
In pleading guilty, LECKEY admitted that he and others engaged in a long-running fraud scheme to obtain money from financial institutions to use as operating capital for ACS. As part of the scheme, LECKEY and others made false representations to the financial institutions that ACS had entered into lease transactions with customers for specified pieces of heavy equipment when, in fact, they knew that no such lease transaction had been conducted or the transaction never transpired after the lease had been signed. As a result of these false statements, the financial institutions funded these nonexistent transactions in amounts well in excess of $100,000 on a number of occasions. On one occasion in October 2010, LECKEY created a bogus customer to serve as the purported lessee of the equipment, and proceeded to defraud the financial institution into releasing $150,000 to ACS.
As a result of this scheme, ACS received more than $1 million from financial institutions on its letters of credit.
LECKEY pleaded guilty to one count of conspiracy to commit bank fraud. Judge Arterton has scheduled sentencing for October 28, 2013, at which time LECKEY faces a maximum term of imprisonment of 30 years.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Paul A. Murphy.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Groton Man Sentenced to More Than Six Years in Federal Prison for Sex Trafficking of A MinorRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that SAMUEL RIVERA, 23, of Groton, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 78 months of imprisonment, followed by seven years of supervised release, for sex trafficking of a minor.
According to court documents and statements made in court, Samuel Rivera and his former wife, Dana Rivera, arranged for the prostitution of a 16-year-old girl. The Riveras posted advertisements on the Internet, took calls of prospective customers, booked hotel rooms, and transported the minor victim to and from prostitution calls in southeastern Connecticut, Rhode Island and New Hampshire. In May and June 2011, the minor victim saw approximately five or six customers a day. The Riveras split the money the victim earned and gave none of it to the victim.
Samuel Rivera has been detained since his arrest on November 16, 2012. On February 19, 2013, he pleaded guilty to one count of conspiracy to commit sex trafficking.
Dana Rivera pleaded guilty to the same charge and, on May 8, 2013, she was sentenced to 78 months of imprisonment and seven years of supervised release.
This matter was investigated by the Federal Bureau of Investigation with the assistance of the Stonington Police Department. The case was prosecuted by Assistant United States Attorney David E. Novick.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]East Hampton Man Who Placed Fake Bomb in Front of East Hampton Middle School Is SentencedRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that SEAN DORAN, 21, of East Hampton, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to three years of probation for placing a fake bomb device at the front doors of East Hampton Middle School on January 12, 2013. DORAN also was ordered to perform 150 hours of community service and pay a $1,500 fine.
According to court documents and statements made in court, at approximately 8:00 a.m. on January 12, 2013, custodians at the East Hampton Middle School arrived to find a device leaning against the front doors of the school. The device was a rectangular box, approximately 12 inches by eight inches by four inches in size, taped together with orange and red duct tape, and a white egg timer on top. School employees contacted the East Hampton Police Department, which subsequently notified the Connecticut State Police Bomb Squad. The Bomb Squad arrived on the scene and determined that the device did not contain any explosives.
A review of the East Hampton Middle School’s surveillance video revealed that DORAN placed the fake bomb at the doors of the school at approximately 1:47 a.m. that day.
On April 22, 2013, DORAN pleaded guilty to one count of intentionally conveying false or misleading information and a hoax.
This matter was investigated by the Federal Bureau of Investigation’s JTTF, the East Hampton Police Department, the New Haven Police Department and the Connecticut State Police. The case was prosecuted by Special Assistant United States Attorney Anjna R. Kapoor.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]Citizen of Jamaica Sentenced to Prison for Illegally Reentering U.S. After DeportationRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ANDREW JOHNSON, also known as “Andrew Heron,” 39, a citizen of Jamaica, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 14 months of imprisonment for illegally reentering the United States after he was deported.
According to court documents and statements made in court, JOHNSON entered the U.S. legally as a visitor in 1991, but overstayed the terms of his visa without authorization. In December 2002, he was removed from the U.S. to Jamaica after serving a two-year state sentence for sale of controlled substance. JOHNSON illegally reentered the U.S. and was arrested by the Bridgeport Police Department in December 2007 for interfering and resisting arrest. He was subsequently deported Jamaica a second time.
JOHNSON again illegally reentered the U.S. and was apprehended by U.S. Immigration and Customs Enforcement agents on December 19, 2012.
JOHNSON has been detained since his arrest. On May 16, 2013, he pleaded guilty to one count of illegal reentry of a removed alien.
Judge Bryant ordered JOHNSON to pay a $20,000 fine if he again reenters the U.S.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant United States Attorney Deborah R. Slater.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Brookfield Man Sentenced to 27 Months in Federal Prison for Distributing OxycodoneRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that KYLE M. LUTRUS, 28, of Brookfield, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 27 months of imprisonment, followed by three years of supervised release, for distributing oxycodone. LUTRUS was also ordered to pay a $2,000 fine, and to forfeit $60,000 and a 2005 Honda Accord, which he used to facilitate his drug trafficking activity.
According to court documents and statements made in court, in late 2011, Brookfield Police received information that LUTRUS was involved in the illegal distribution of oxycodone. Between February 2012 and April 2012, LUTRUS made multiple sales of oxycodone to an individual working with law enforcement and an undercover DEA Task Force officer. A total of 343 pills were purchased from LUTRUS during the course of the investigation.
LUTRUS was arrested on December 20, 2012. On May 15, 2013, he pleaded guilty to one count of conspiracy to distribute and to possess with the intent to distribute oxycodone.
This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Brookfield Police Department. The case was prosecuted by Assistant United States Attorneys David X. Sullivan and Michael E. Runowicz.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Shelton Man Involved in Illegal Sports Betting Ring Sentenced to Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DOMENICO MANCHISI, also known as “Dom,” 65, of Shelton, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to six months of imprisonment, followed by one year of supervised release, for his involvement in an illegal sports bookmaking operation. MANCHISI also was ordered to pay a fine of $20,000 and to forfeit $20,000.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, MANCHISI and 19 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs in Stamford and Hamden that were controlled by the Gambino Crime Family of La Cosa Nostra.
The investigation, which included the use of court-authorized wiretaps, revealed that MANCHISI was involved in a large-scale sports bookmaking operation in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica. MANCHISI regularly collected the cash proceeds of a sports book operating in the New Haven area and transported the cash to individuals in Stamford.
FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
On March 28, 2013, MANCHISI pleaded guilty to one count of operating an illegal gambling business.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorneys Hal Chen and Peter Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Attorney Charged with Participating in Extensive Insurance Fraud ConspiracyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that a federal grand jury in New Haven has returned a nine-count indictment charging attorney JOSEPH P. HADDAD, 65, of Orange, with federal offenses related to his participation in an extensive insurance fraud scheme.
The indictment was returned on July 25, 2013 and was unsealed today. HADDAD appeared this afternoon before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport, entered a plea of not guilty and was released on a $150,000 bond.
This matter stems from “Operation Running Man,” a 14-month undercover fraud investigation headed by the Federal Bureau of Investigation. The investigation included the use of recordings of an undercover special agent meeting with HADDAD, various doctors and chiropractors in relation to auto-accident personal injury litigation.
As alleged in the indictment, HADDAD, a Bridgeport-based personal injury attorney, conspired with chiropractors and others to defraud several insurance companies by exaggerating the auto accident injuries of HADDAD’s clients, and the cost of their medical care, to justify larger monetary settlements with the insurance companies. As part of the scheme, the co-conspirators fabricated medical records, prescribed unnecessary pain medication, performed unnecessary chiropractic treatment, ordered and billed for diagnostic tests of questionable medical value, and overstated injuries or permanent partial disabilities that were allegedly caused by the accidents.
“This kind of blatant fraud drives up the cost of insurance for all people,” stated Acting U.S. Attorney Daly. “With the help of the FBI, the U.S. Attorney’s Office is committed to uncovering these schemes and prosecuting those who are the most responsible, especially corrupt attorneys and doctors who drive these schemes and profit the most in direct violation of their professional oaths.”
“The level of detail and orchestration alleged in this conspiracy to defraud automobile insurance companies is wrought with unadulterated greed and avarice,” stated FBI Special Agent in Charge Mertz. “As an attorney, Mr. Haddad is an officer of the court and, therefore, privileged and entrusted with upholding its laws and ethical canons. Instead, because of his selfish actions, Mr. Haddad is now a defendant in federal court and faced with some very serious charges.”
The indictment alleges that, between December 2006 and February 2010, HADDAD conspired in the scheme with Francisco R. Carbone, who had been licensed to practice medicine until his license was revoked by the State of Connecticut in March 2005, and with Dr. Mark Kirshner, who owned and operated two chiropractor offices in Bridgeport and one in Stamford.
As part of the scheme, it is alleged that HADDAD would pay “runners” to locate and deliver to him clients for his personal injury practice. Because state law barred attorneys from hiring runners in personal injury cases, HADDAD attempted to hide this practice by paying the runners in cash. Dr. Kirshner regularly met with HADDAD to provide him with thousands of dollars in cash and, in return, HADDAD reimbursed Kirshner with checks written from his business account. HADDAD often included on the checks false memo lines suggesting that the checks were for medical expenses incurred by his clients. During the course of the conspiracy, it is alleged that Kirshner gave HADDAD more than $100,000 in cash. HADDAD also paid runners with checks directly from his client trust account, often disguising these payments as “independent investigative services.”
The indictment further alleges that HADDAD regularly instructed clients to see Carbone for purported medical treatment, even though HADDAD was aware that Carbone had lost his medical license. Carbone provided HADDAD’s clients with prescription pain medication, even if the medication was not needed and, in reports, fabricated the clients’ injuries, medical conditions and permanent partial disability ratings. In multiple instances, Carbone did no medical examination at all. Carbone billed the victim insurance carriers in his name or in the name of another physician for services he allegedly rendered, and provided prescriptions, bills, medical reports and final reports to HADDAD, who submitted the documents to the victim carriers to support requests for settlement.
It is further alleged that HADDAD referred clients to Dr. Kirshner’s Bridgeport chiropractor offices, which operated under the name Health First Medical, P.C., and that Kirshner often permitted HADDAD to influence the course of patients’ medical treatments by acquiescing to HADDAD’s instructions that a patient receive more treatment and diagnostic tests despite the questionable need for both. Kirshner and other chiropractors at Health First, including Jennifer Netter, established a protocol to treat patients in HADDAD’s cases for six months, regardless of medical need, and would not resolve treatment of patients unless instructed to do so by HADDAD. Netter and others at Health First often falsified medical records by indicating that they had examined the patients when they had not, and by misrepresenting that patients’ pain complaints and other symptoms continued. After the six-month period, each patient would receive a permanent partial disability rating, regardless of the permanence of the medical condition. If a patient had received a permanency rating for a prior accident, the protocol was to give a higher or different disability rating for the present accident.
Kirshner also owned a diagnostic testing company, Midas Medical LLC, and instructed his employees to conduct Nerve Conduction Velocity (NCV) tests whenever a patient’s symptoms could potentially implicate testing, even though he knew the test results would not change the course of treatment. It is alleged that HADDAD and Kirshner arranged for Carbone to order the tests, believing that, if ordered by a doctor, the tests would be given greater weight by the victim insurance companies and increase the likelihood of higher settlement payments. It is further alleged that HADDAD summoned at least one chiropractor to his office so that Kirshner could explain that the chiropractor would receive a kickback of several hundred dollars for each referral of HADDAD’s clients for NCV testing. Kirshner’s office would provide to HADDAD a bill of approximately $2,000 for each NCV test, and HADDAD would submit the bills to the victim carriers as part of settlement discussions.
As disclosed during today’s court proceeding, more than 10 insurance carriers lost a total of approximately $2.5 million as a result of this fraud scheme.
The indictment charges HADDAD with one count of conspiracy to commit mail fraud and eight counts of mail fraud. If convicted, HADDAD faces a maximum term of imprisonment of 20 years on each count.
Carbone, Kirshner, Netter, two other chiropractors and a licensed doctor of osteopathic medicine have pleaded guilty to charges stemming from this scheme. Each awaits sentencing.
As to HADDAD, Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the National Insurance Crime Bureau, the Metropolitan Property and Casualty Insurance’s Special Investigation Unit and the Travelers Insurance Company.
The case is being prosecuted by Assistant United States Attorneys Christopher W. Schmeisser and Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Bridgeport Men Charged with Drug-related MurderRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned an eight-count indictment charging JOHNNIE JEFFERSON, also known as “Jeezy,” 23, and TRUMAINE HEARST, also known as “Man,” 19, both of Bridgeport, with murder, robbery, drug and firearms offenses related to the October 2012 death of Dawayne Cobb in Bridgeport.
On October 10, 2012, at approximately 6:20 p.m., the body of Dawayne Cobb was discovered in the driver seat of an idling vehicle in the vicinity of 220 Sunshine Circle in Bridgeport. Cobb had gunshot wounds in his shoulder and abdomen.
The indictment alleges that, on October 10, 2012, JEFFERSON and HEARST drove together to Sunshine Circle in order to meet Cobb, murdered him and stole marijuana from him. JEFFERSON and HEARST transported the stolen marijuana to a Bridgeport residence and subsequently distributed it amongst themselves and others.
The indictment charges JEFFERSON and HEARST with causing the death of Dawayne Cobb through the use of a firearm. This charge carries a mandatory lifetime term of imprisonment or death, should the government seek the death penalty in this matter.
The indictment also charges both defendants with conspiracy to use a firearm during and in relation to crimes of violence and drug trafficking crimes, use of a firearm during and in relation to crimes of violence, conspiracy to interfere with commerce by robbery, interference with commerce by robbery, conspiracy to possess with intent to distribute marijuana, possession with intent to distribute marijuana, and use of a firearm during and in relation to drug trafficking crimes.
The indictment was returned on July 23, 2013. JEFFERSON and HEARST are currently in state custody.
This matter is being investigated by Bridgeport Police Department and the FBI’s Bridgeport Safe Streets Task Force, which includes the Bridgeport, Norwalk, Trumbull and Fairfield Police Departments. The case is being prosecuted by Assistant United States Attorneys Tracy Dayton and Rahul Kale.
Acting 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.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Waterbury Man Sentenced to 30 Months in Federal Prison for Trading Child PornographyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that PAUL D’AMBROSIO, 49, of Waterbury, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by six years of supervised release, for trading child pornography on the Internet.
According to court documents and statements made in court, on August 8, 2012, a Hartford Police detective assigned to the Connecticut Child Exploitation Task Force logged into a publicly-available Internet file sharing program and downloaded approximately 50 images and 10 videos of child pornography from shared directories maintained by D’AMBROSIO. On August 30, 2012, Task Force agents searched D’AMBROSIO’s residence and seized a laptop computer and related components. A forensic search of the computer revealed hundreds of images and videos of child pornography, including images of children under the age of 12 engaged in sexually explicit conduct and images of children engaging in sadistic or masochistic conduct.
D’AMBROSIO was arrested on August 30, 2012. On March 11, 2013, he pleaded guilty to one count of receipt and distribution of child pornography.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies, including the Hartford Police Department. The Waterbury Police Department also assisted the investigation. The case was prosecuted by Assistant United States Attorney Sarala V. Nagala.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
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:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Man Sentenced to Seven Years in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DENIS WILLIAMS, also known as “Blanco,” 33, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 84 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, in May 2011, the DEA received information that WILLIAMS was supplying crack cocaine and heroin to numerous drug customers in New Haven. On June 2, 2011, law enforcement officers stopped a vehicle that WILLIAMS was driving and seized approximately three grams of crack packaged for street sale in 14 individually-wrapped bags. A subsequent search of his Chatham Street residence revealed approximately 23 grams of crack, a handgun and $4946 in cash.
WILLIAMS, whose criminal history includes multiple prior felony drug convictions, has been detained since his arrest on June 2, 2011. On May 10, 2013, he pleaded guilty to one count of possession with intent to distribute cocaine base (“crack cocaine”).
This matter was investigated by the DEA New Haven Task Force, which includes participants from the New Haven, Hamden, West Haven, Branford, Meriden and Ansonia Police Departments. The case was prosecuted by Assistant United States Attorney S. Dave Vatti.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]Stamford Resident Sentenced to Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DIMITRIOS KARIPIDIS, 54, a citizen of Greece last residing in Stamford, was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to 18 months of imprisonment, 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 trafficking of oxycodone, cocaine and marijuana in Fairfield County. In February 2012, KARIPIDIS was intercepted over a court-authorized wiretap engaging in discussions involving the illegal distribution of cocaine.
Sixteen individuals have been charged as a result of this investigation.
KARIPIDIS has been detained since his arrest on June 12, 2012. On May 1, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.
KARIPIDIS faces deportation proceedings at the conclusion of his sentence.
This matter is being 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 and Stratford Police Departments. The case is being prosecuted Assistant United States Attorneys Peter Markle and Vanessa Richards.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Norwalk Man Involved in Illegal Sports Bookmaking Operation Sentenced to Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that FRANK POTOLICCHIO, JR., 34, of Norwalk, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to four months of imprisonment, followed by three years of supervised release, for his involvement in an illegal sports bookmaking operation. POTOLICCHIO also was ordered to forfeit $100,000.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, POTOLICCHIO and 19 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs in Stamford and Hamden that were controlled by the Gambino Crime Family of La Cosa Nostra.
The investigation, which included the use of court-authorized wiretaps, revealed that POTOLICCHIO was involved in a large-scale sports bookmaking operation in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica.
FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
On February 13, 2013, POTOLICCHIO pleaded guilty to one count of operating an illegal gambling business.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorneys Hal Chen and Peter Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Jury Finds Former Chairman of the Mashantucket Pequot Tribal Nation Guilty of EmbezzlementRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Peter Y. Kim, Special Agent in Charge, U.S. Department of the Interior, Office of Inspector General, Eastern Region, today announced that a federal jury in New Haven has found MICHAEL THOMAS, 45, the former Chairman of the Mashantucket Pequot Tribal Council, guilty of embezzling from the Mashantucket Pequot Tribal Nation. The trial before United States District Judge Janet Bond Arterton began on July 22 and the jury returned its verdict after deliberating for less than two hours.
“Mr. Thomas abused his position as Chairman of the Mashantucket Pequot Tribal Nation by charging over $100,000 in unauthorized personal expenses to the Nation,” stated Acting U.S. Attorney Daly. “These fraudulent expenses continued even after they were discovered and he was told to stop. The U.S. Attorney’s Office is committed to prosecuting corrupt officials at all levels of government – federal, state, local and tribal. I thank the FBI and the Department of the Interior’s Office of Inspector General for their work in uncovering this misuse of federal funds.”
“Mr. Thomas’ systematic theft of tribal and federal monies to support a lifestyle of excess is egregious,” stated FBI Special Agent in Charge Mertz. “Today’s verdict underscores the importance of investigating and prosecuting the blatant misappropriation of federal dollars, especially during these austere fiscal times.”
“This case is a reflection of the Inspector General’s continued involvement in Indian Country and our dedication to insure the integrity of all U.S. Department of the Interior funded programs,” stated DOI-OIG Special Agent in Charge Kim.
According to the evidence at trial, between October 2007 and April 2009, THOMAS used an American Express card that was issued to him by the Mashantucket Pequot Tribal Nation (“MPTN”) to be used for official MPTN government purposes to make more than $100,000 in unauthorized personal expenses. THOMAS used the card to pay for monthly satellite television service for his home, to pay for satellite radio service for his vehicle, to purchase personal computers, to pay for mobile phone service for other individuals, and to pay for a car service to transport his mother to kidney dialysis treatments. THOMAS knew that the expenses were personal, and that his use of the credit card was in violation of a Tribal Council Resolution.
The jury found THOMAS guilty of one count of theft from an Indian tribal organization and two counts of theft from an Indian tribal government receiving federal funds.
Judge Arterton has scheduled sentencing for October 22, 2013, at which time THOMAS faces a maximum term of imprisonment of 25 years and a fine of up to $750,000. THOMAS also faces forfeiture of $102,393.34 and two personal computers.
This matter is being investigated by the Federal Bureau of Investigation and United States Department of Interior – Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Christopher Mattei and Douglas Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Canton Man Sentenced to More Than 17 Years in Federal Prison for Producing Child PornographyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MICHAEL CRAWFORD, 36, of Canton, was sentenced today by United States District Judge Michael P. Shea in Hartford to 210 months of imprisonment, followed by a lifetime term of supervised release, for producing child pornography.
“The U.S. Attorney’s Office aggressively prosecutes child exploitation crimes, and this lengthy prison sentence should send a loud and clear message that the penalties associated with these crimes are appropriately severe,” stated Acting U.S. Attorney Daly. “I commend Homeland Security Investigations, the Connecticut State Police and the Canton Police Department for investigating this matter and protecting children from future harm by this defendant.”
According to court documents and statements made in court, in July 2012, law enforcement officers discovered that an individual from Connecticut had been posting photographs of children on a Russian file-sharing website. On July 5, 2012, officers executed a state search warrant at CRAWFORD’s residence. On that date, CRAWFORD admitted that he posted images to the Russian website, that he had taken photographs of a three-year-old minor victim and posted them on the site, and that he had exchanged photographs of the minor victim in order to receive better photos from others in trade. A subsequent search of CRAWFORD’s email account revealed seven sexually explicit photographs of the minor victim taken by CRAWFORD. CRAWFORD had e-mailed four of the images to other individuals.
In addition to the pictures of the minor victim that he had taken, CRAWFORD’s email account contained approximately 777 images and 24 videos of child pornography.
CRAWFORD has been detained since his arrest on January 9, 2013. On May 1, 2013, he pleaded guilty to one count of production of child pornography.
This matter was investigated by Homeland Security Investigations, with assistance from the Connecticut State Police and the Canton Police Department. The case was prosecuted by Assistant United States Attorneys Sarala V. Nagala and Anastasia E. King.
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:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two New Haven Drug Dealers Sentenced to Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that two men involved in New Haven-area drug trafficking were sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven. EZEL BUCHANAN, also known as “E.Z.,” 34, of Hamden, was sentenced to 72 months of imprisonment, followed by five years of supervised release, and JERMAINE GALBERTH, also known as “Maine,” 27, of New Haven, was sentenced to 24 months of imprisonment, followed by three years of supervised release.
BUCHANAN and GALBERTH and more than 100 other individuals were charged as a result of “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. The investigation revealed that BUCHANAN conspired with others to purchase and redistribute crack cocaine, and that GALBERTH conspired to distribute heroin.
On September 27, 2012, BUCHANAN pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack cocaine”). BUCHANAN’s criminal history includes six felony convictions, including four felony drug convictions.
On April 15, 2013, GALBERTH pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
This matter is being 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 have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Stamford Resident Sentenced to More Than Five Years in Federal Prison for Distributing CocaineRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that FRANK N. POTOLICCHIO, 63, of Monroe, formerly of Stamford, was sentenced on Friday, July 19, by United States District Judge Janet C. Hall in New Haven to 66 months of imprisonment, followed by four years of supervised release, for distributing cocaine. Judge Hall also ordered POTOLICCHIO to forfeit $60,000.
According to court documents and statements made in court, POTOLICCHIO was the leader of a Stamford-based drug trafficking ring. The investigation, which included the use of court-authorized wiretaps and physical surveillance, revealed that POTOLICCHIO and his co-conspirators acquired cocaine from Florida and sold it in smaller quantities to customers in Fairfield County.
On April 28, 2011, a search of POTOLICCHIO’s Avery Street residence revealed more than 200 grams of cocaine, narcotics packaging material, a 9mm handgun and approximately $7,158 in cash. An examination of POTOLICCHIO’s computer also revealed records of his cocaine sales and profits.
On April 1, 2013, POTOLICCHIO pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force and the Stamford Police Department. The Task Force is composed of members of the FBI, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police.
The case is being prosecuted by Assistant United States Attorney Hal Chen.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Waterbury Man Sentenced to 10 Years in Federal Prison for Illegally Possessing, Selling FirearmsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ROBERTO SANTIAGO, 28, of Waterbury, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 120 months of imprisonment, followed by three years of supervised release, for illegally possessing and selling firearms.
According to court documents and statements made in court, on August 2, 2011, SANTIAGO sold a semi-automatic handgun in exchange for $400 to an individual working with law enforcement. On August 9, 2011, SANTIAGO sold a semi-automatic rifle and 250 rounds of ammunition to an undercover officer for $1,500. Both of the firearms were manufactured outside of Connecticut.
Prior to August 2011, SANTIAGO had sustained six felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce.
On October 22, 2012, SANTIAGO pleaded guilty to one count of possession of a firearm by a previously convicted felon.
SANTIAGO has been detained in state custody since his August 31, 2011 arrest on several unrelated state charges. On November 1, 2011, he received an effective state sentence of four years--which he is currently serving--for five felony convictions and one misdemeanor conviction. The federal sentence imposed today will run concurrently to the remainder of SANTIAGO’s state sentence.
This matter was investigated by the Drug Enforcement Administration, with substantial assistance provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Marc H. Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Man Sentenced to More Than Four Years in Prison for Distributing NarcoticsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that CORNELL STREATER, also known as “Messy,” 21, of New Haven, was sentenced yesterday by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 50 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
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, the New Haven Police Department and the Connecticut State Police into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven.
On April 9, 2012, a grand jury returned an indictment charging 18 individuals, including STREATER, with narcotics distribution offenses stemming from this investigation. To date, nine of the defendants have pleaded guilty. The other nine defendants are detained while awaiting trial.
STREATER has been in custody since his arrest on April 17, 2012. On February 14, 2013, he pleaded guilty to one count of conspiracy to possess and distribute cocaine base (“crack cocaine”).
With respect to the defendants awaiting trial, Acting 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.
The investigation in this case was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs.
This case is being prosecuted by Assistant United States Attorneys Anthony Kaplan and Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Connecticut Man Sentenced to 70 Months in Federal Prison for Mailing Threatening LettersRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ROLAND PREJEAN, also known as “Gary Joseph Gravelle,” 46, formerly of Thomaston and Morris, Conn., was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to 70 months of imprisonment, followed by three years of supervised release, for mailing numerous threatening letters.
According to court documents and statements made in court, in early September 2010, PREJEAN mailed a threatening letter to the Thomaston Post Office claiming that he had planted a hidden bomb on a remote timer in the Post Office. The letter resulted in the evacuation of the Thomaston Post Office as well as the Thomaston Town Hall and a Thomaston Public School, which were in the immediate vicinity of the Post Office. Bomb technicians from the Connecticut State Police Emergency Services Unit searched the post office for explosive or incendiary devices with negative results.
In addition, PREJEAN mailed a letter to a Connecticut Superior Court Judge in New London that included a substance that was represented to be “Liquid Anthrax,” and he sent threatening letters to a private individual and a probation officer in Connecticut. In those letters PREJEAN threatened to kill numerous people, including a federal employee.
At today’s sentencing, the government also presented evidence of more than 50 other threatening letters that PREJEAN mailed both prior to his arrest and while he was detained in federal custody.
PREJEAN has been detained since his arrest in North Dakota on September 7, 2010. On January 10, 2013, he pleaded guilty to one count of using the U.S. Mail to communicate a bomb threat and four counts of mailing threatening communications.
Acting U.S. Attorney Daly commended the substantial efforts and cooperation of the several agencies involved in this investigation including the Federal Bureau of Investigation in New Haven, Minneapolis, and Bismarck; the United States Postal Inspection Service in Connecticut and North Dakota; the United States Marshals Service in Connecticut; the Connecticut State Police Emergency Services Unit and the Thomaston Police Department.
Acting U.S. Attorney Daly also acknowledged the assistance provided by the U.S. Attorney’s Office for the District of North Dakota.
This case was prosecuted by Assistant United States Attorney David E. Novick.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Bridgeport Man Charged with Federal Firearm OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that Rev. PAUL GOTTA, 55, of Bridgeport, formerly of East Windsor, was arrested today by the Bureau of Alcohol, Tobacco, Firearms and Explosives on federal firearm charges.
GOTTA is charged in a federal criminal complaint with aiding and abetting both the unlawful transport of a firearm in interstate commerce and the purchase of a handgun by a juvenile. The maximum penalty for these offenses is five years of imprisonment and a $250,000 fine.
GOTTA is detained pending a hearing that is scheduled for July 25 at 2:00 p.m. before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport.
Acting United States Attorney Daly stressed that an arrest is not evidence of guilt. Charges are only allegations, and that every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Windsor Police Department. The case is being prosecuted by Assistant United States Attorney Robert M. Spector and Special Assistant United States Attorney Natasha M. Dye.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Norwalk Resident Sentenced to 30 Months in Federal Prison for Trafficking NarcoticsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSE MENDEZ-LUNA, 31, was sentenced yesterday by United States District Judge Janet C. Hall in New Haven to 30 months of imprisonment and a three year term of supervised release for trafficking narcotics.
According to court documents and statements made in court, on March 27, 2012, New York Police Department officers conducting a narcotics trafficking investigation contacted the Drug Enforcement Administration in Bridgeport with information that individuals operating out of 18-20 Taylor Avenue and 20 Woodbury Avenue in Norwalk had just received a multiple-kilogram shipment of cocaine. Based upon this information, on the morning of March 28, members of the DEA Bridgeport High Intensity Drug Trafficking Area Task Force and the Norwalk Police Department’s Special Services Division executed a court-authorized search of 20 Woodbury Avenue and encountered MENDEZ-LUNA, Hector Valle and others. In a bedroom that MENDEZ-LUNA had been using, officers located a 9-millimeter firearm, a magazine with four rounds of ammunition, approximately 262 grams of cocaine, two digital scales, narcotics packaging materials and nine cell phones. A search of Valle’s bedroom revealed quantities of cocaine and heroin, drug ledgers and approximately $8,000 in cash. Approximately one ounce of heroin was also recovered from the kitchen of the residence.
A subsequent court-authorized search of 18-20 Taylor Avenue yielded approximately five kilograms of heroin, 10 pounds of Methamphetamine, $279,000 in cash, one handgun, ammunition and narcotics packaging materials.
MENDEZ-LUNA, a citizen of Venezuela, has been detained since his arrest on March 28, 2012. On April 17, 2013, he pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine.
Valle also has pleaded guilty and awaits sentencing.This matter was investigated by Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force, which is composed of members of the Bridgeport, Milford, Norwalk, Stamford, Stratford and Westport Police Departments. The investigation was significantly assisted by the Norwalk Police Department’s Special Services Division and the New York Police Department.
This case is being prosecuted by Assistant United States Attorney Sarah Karwan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]