District of Connecticut
Press releases recorded for this federal judicial district.
Engineer Pleads Guilty to Making False Statements in Connection with Theft of Trade SecretsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JIAN MI, 38, a citizen of China and a lawful permanent resident of Rocky Hill, pleaded guilty today before United States District Judge Michael P. Shea in Hartford to one count of making a false statement to a federal law enforcement officer.
According to court documents and statements made in court, on July 22, 2011, JIAN MI knowingly made a materially false statement to agents of the Federal Bureau of Investigation by informing them that she had not shared with a competitor any advance copies of a PowerPoint presentation containing sensitive proprietary information obtained from her previous employer. At the time, she knew that she had, in fact, emailed a comprehensive PowerPoint presentation to representatives of the competitor where she was applying for a job as an engineer.
Judge Shea has scheduled sentencing for October 11, 2013, at which time JIAN MI faces a maximum term of imprisonment of five years, a maximum term of supervised release of three years, and a maximum fine of $250,000.
This matter is being investigated by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Paul H. McConnell.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Citizen of Dominican Republic Found with $369k in Drug Money Is SentencedRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOVANNY ARSENIO ROSARIO, 46, a citizen of the Dominican Republic, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 33 months of imprisonment for illegally reentering the United States after being deported.
According to court documents and statements made in court, ARSENIO ROSARIO, who had previously been deported from the U.S. after a conviction for committing an aggravated felony, was found in the U.S. on September 5, 2012. On that date, Connecticut State Troopers conducted a traffic stop in Tolland and found ARSENIO ROSARIO with two other individuals in a car that also contained 28 bundles of U.S. currency, totaling $369,346. ROSARIO subsequently stated that the money was related to drug trafficking activity.
ARSENIO ROSARIO has been detained since September 5, 2012. On December 19, 2012, he pleaded guilty to one count of illegal reentry after being removed from the United States subsequent to a conviction for commission of an aggravated felony.
This case was investigated by Homeland Security Investigations and the Connecticut State Police. The case was prosecuted by Special Assistant United States Attorney Anjna R. Kapoor and Assistant United States Attorney Paul H. McConnell.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Stratford Man Sentenced to Federal Prison for Tax EvasionRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that LENWORTH HAYNES, 55, of Stratford, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to six months of imprisonment and six months of home confinement with electronic monitoring.
According to court documents and statements made in court, HAYNES was employed as a cook at a nursing home in Trumbull and, since approximately 1996, operated his own tax preparation business. From 2006 to 2008, HAYNES evaded his personal federal income taxes by failing to declare income he earned from his tax preparation business. During those three years, HAYNES should have reported total taxable income of $255,071.38. Instead, he reported taxable income of negative $3,761, resulting in a loss to the government of $82,704.
HAYNES has been ordered to pay back taxes, plus interest and penalties.
On April 17, 2013, HAYNES pleaded guilty to one count of tax evasion.
This matter was investigated by the Internal Revenue Service – Criminal Investigation and was prosecuted by Assistant United States Attorney Susan L. Wines.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Newington Man Who Stole Firearms from Colebrook Residence Sentenced to 10 Years in PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MICHAEL KENNEDY, also known as “Chavo,” 26, of Newington, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 97 months of imprisonment, followed by 3 years of supervised release, for stealing, possessing and selling firearms. In issuing his sentence, Judge Chatigny gave KENNEDY credit for the 23 months he has already served in state prison for a total effective term of 120 months’ imprisonment.
According to court documents and statements made in court, on May 9, 2011, KENNEDY and Edward N. Ortiz, also known as “Heavy,” of New Britain, entered a residence in Colebrook and stole 12 firearms. The investigation has revealed that the majority of the stolen firearms were later sold to others, including street-level drug dealers.
Prior to May 2011, KENNEDY had been convicted of multiple felony offenses, including possession of narcotics, robbery, larceny and violation of a protection order.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
KENNEDY is currently detained. On February 5, 2013, he pleaded guilty to one count of possession of firearms by a previously convicted felon.
On September 27, 2012, Ortiz pleaded guilty to one count of conspiracy to steal firearms and possess stolen firearms, and one count of possession of firearms by a previously convicted felon. He awaits sentencing and is also detained.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police and the New Britain Police Department. The case is being prosecuted by Assistant United States Attorney Jonathan S. Freimann.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Hartford Man Admits Producing Child PornographyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ELIEZER MALDONADO, 25, of Hartford, pleaded guilty today before United States District Judge Stefan R. Underhill in Bridgeport to one count of production of child pornography.
According to court documents and statements made in court, on June 8, 2012, Homeland Security Investigations and Hartford Police conducting a child exploitation investigation executed a state search warrant at MALDONADO’s residence. On that date, MALDONADO admitted that on multiple occasions he had engaged in sexual acts with a minor victim who was under the age of 12. He also admitted that he had used a smartphone to take several photographs of the minor victim engaged in sexually explicit poses, and then posted the images to an online file-sharing service, and had traded additional images of child pornography with others via email and online storage accounts.
Investigators seized MALDONADO’s smartphone. Subsequent forensic examination of the device revealed eight images of the minor victim engaged in sexually explicit conduct. Examination of MALDONADO’s email and online storage accounts also revealed approximately 5,500 images and 267 videos of child pornography. The vast majority of these images and videos depicted prepubescent children under the age of 12.
Judge Underhill has scheduled sentencing for October 8, 2013, at which time MALDONADO faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years.
MALDONADO has been detained since his arrest on June 8, 2012.
This case is being investigated by ICE Homeland Security Investigations in Hartford, with the assistance of ICE HSI in Philadelphia, the Connecticut State Police and the Hartford Police Department. The case is being 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.projectsafechildhood.gov.
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 London Man Sentenced to 48 Months in Prison for Illegally Possessing FirearmRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ROBERT CABANBAN JR., 23, of New London, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 48 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on two occasions in September 2012, CABANBAN sold heroin to an individual at his Maple Avenue apartment. On September 26, 2012, members of the New London Police Department executed a state search warrant at CABANBAN’s residence and seized approximately 12 grams of heroin, narcotics packaging materials and a loaded, .380 caliber semi-automatic pistol. CABANBAN arrived home during the search and attempted to flee. He was apprehended a short time later and a search of his person revealed $6,220 in cash.
CABANBAN’s criminal history includes state felony convictions for possession with intent to sell narcotics and burglary in the third degree.
CABANBAN has been detained on state charges since his arrest on September 26, 2012. On April 22, 2013, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the New London Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorneys Sarah P. Karwan and Alina Reynolds.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Jury Finds Middletown Man Guilty of Narcotics and Firearm OffensesRead the Press Release
Deirdre Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found JEFF SPRUILL, 30, of Middletown, guilty of narcotics distribution and firearm offenses. The jury returned the verdict today following a two-day trial before United States District Judge Robert N. Chatigny.
According to the evidence at trial, on June 12, 2012, officers from the Middletown Police Department conducted a controlled purchase of cocaine from SPRUILL. On August 14, 2012, officers made a controlled purchase of crack cocaine from SPRUILL.
SPRUILL was arrested on August 28, 2012, after a search of his person revealed quantities of marijuana and cocaine. A subsequent search of a residence connected to SPRUILL revealed a loaded Hi-Point .40 caliber semi-automatic handgun, a loaded Hi-Point .380 caliber semi-automatic handgun and a loaded Smith & Wesson .357 Magnum revolver.
Prior to August 2012, SPRUILL had been convicted of multiple felony offenses in Connecticut, including criminal possession of a weapon and sale of hallucinogens/narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The jury found SPRUILL guilty of one count of distribution of cocaine, one count of distribution of cocaine base (“crack cocaine”), and one count of possession with intent to distribute cocaine. Each of these charges carries a maximum term of imprisonment of 20 years. The jury also found SPRUILL guilty of one count of possession of firearms by a previously convicted felon, which carries a maximum term of imprisonment of 10 years.
Judge Chatigny has scheduled sentencing for October 10, 2013.
This case was investigated by the Middletown Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is bein gprosecuted by Special Assistant United States Attorney Natasha M. Dye and Assistant United States Attorney Michael Gustafson.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Cocaine Courier Sentenced to Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that CHRISTOPHER PAPPAGALLO, 40, of Vernon, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for his role in a cocaine trafficking conspiracy.
According to court documents and statements made in court, PAPPAGALLO was paid by an associate to transport more than 100 kilograms of cocaine from California to Connecticut. PAPPAGALLO acted a courier on three different occasions, earning $10,000 for the first trip, $8,500 for the second trip and $17,000 for the third trip. PAPPAGALLO’s third trip occurred in January 2012, when he transported approximately 54 kilograms of cocaine to Connecticut.
PAPPAGALLO pleaded guilty to a cocaine conspiracy charge on April 1, 2013.
This matter has been investigated by the Drug Enforcement Administration, the New Britain Police Department and the East Central Narcotics Task Force, which includes the Manchester, South Windsor, Glastonbury and Vernon Police Departments. The case is being prosecuted by Assistant United States Attorney Geoffrey M. Stone.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that RUFUS SPEARMAN, 36, of New Haven, pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, during a police pursuit on November 10, 2012, SPEARMAN discarded a loaded .50 caliber semi-automatic pistol underneath the front porch of a residence on Clover Place in New Haven. He was apprehended a short time later and the firearm was recovered. A search of SPEARMAN’s person also revealed quantities of marijuana and Methylone, also known as “bath salts.”
SPEARMAN’s criminal history includes state felony convictions for sale of hallucinogen/narcotics, possession of a controlled substance with intent to sell, arson and conspiracy to commit arson in the first degree.
SPEARMAN has been detained since his arrest on November 10, 2012. He is scheduled to be sentenced by United States District Judge Robert N. Chatigny on October 4, 2013, at which time he faces a maximum term of imprisonment of 10 years.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. The case is being prosecuted by Assistant United States Attorney Anthony E. Kaplan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Stamford Resident Sentenced to Federal Prison for Distributing CocaineRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that SCOTT VELTRI, 34, of New York, N.Y., was sentenced today by United States District Judge Janet C. Hall in New Haven to six months of imprisonment, followed by four years of supervised release, for distributing cocaine. Judge Hall also ordered VELTRI to serve the first six months of his supervised release in home confinement, and to forfeit $30,000.
According to court documents and statements made in court, in 2009 and 2010, VELTRI, a former resident of Stamford, was part of a Fairfield County-based drug trafficking ring. The investigation, which included the use of court-authorized wiretaps and physical surveillance, revealed that VELTRI acquired cocaine from his co-conspirators and sold it in smaller quantities to customers in Fairfield County.
On March 6, 2013, VELTRI pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 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]New Haven Man Sentenced to More Than Eight Years in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JAMES JENKINS, also known as “Black,” 31, of New Haven, was sentenced yesterday by Senior United States District Judge Ellen Bree Burns in New Haven to 100 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
This matter stems from a joint law enforcement investigation conducted by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug-trafficking organization that was centered in the Newhallville section of New Haven and Hamden, and was responsible for the distribution of crack cocaine and cocaine throughout the Greater New Haven area.
According to court documents and statements made in court, from June through October 2010, JENKINS was intercepted repeatedly over a wiretap ordering distribution quantities of crack cocaine from other members of the drug trafficking organization. He then sold the drug to his own customer base for profit.
On January 28, 2013, JENKINS pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).
Forty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation. All have been convicted.
This matter was investigated by the Federal Bureau of Investigation’s New Haven Safe Streets Task Force (composed of members of members of the New Haven, Ansonia, Milford, Hamden and East Haven Police Departments, and the Connecticut State Police and the Connecticut Department of Correction), the Drug Enforcement Administration’s New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments. The United States Marshals Service also has assisted the investigation.
The investigation 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 matter is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Bridgeport Man Sentenced to Seven Years in Federal Prison for Illegally Possessing FirearmsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that AARON FREELOVE, 29, of Bridgeport, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 84 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.
According to court documents and statements made in court, on July 9, 2012, an individual purchased marijuana from FREELOVE. During the sale, FREELOVE displayed two handguns. The next day, law enforcement officers executed a search warrant at FREELOVE’s residence and recovered a Glock 10mm pistol, which was loaded with 15 rounds of ammunition and had been reported stolen, and a Ruger 9mm pistol loaded with eight rounds of ammunition. The search also revealed approximately 220 grams of marijuana.
FREELOVE has been detained since his arrest on December 18, 2012. On April 17, 2013, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
FREELOVE’s criminal history includes multiple felony convictions.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bridgeport Police Department. The case was prosecuted by Assistant United States Attorney Rahul Kale.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Sixteen Charged with Federal Narcotics Distribution Offenses After Atf-led InvestigationRead 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, today announced that a federal grand jury in Hartford has returned two indictments charging 16 individuals with federal narcotics offenses related to the distribution of crack cocaine and heroin in Connecticut.
This matter stems from a joint law enforcement investigation headed by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) into a narcotics trafficking operation headed by Luther Nance, also known as “Papers” and “Cash.” The investigation, which included numerous controlled purchases of narcotics and physical surveillance, revealed that Nance and his associates allegedly sold crack cocaine and heroin in several communities throughout Connecticut utilizing multiple bases of operation, including a house on Carroll Road in East Hartford, the Sheldon Oaks housing complex in Hartford, and an apartment on Valley Street in Willimantic.
“I want to commend the excellent work of the ATF and all of our federal, state and local law enforcement partners who have participated in this successful investigation targeting drug distribution and related criminal activity in several communities across Connecticut,” stated Acting U.S. Attorney Daly. “The U.S. Attorney’s Office is committed to using the full weight of federal law to prosecute narcotics traffickers to make our communities safer.”
“ATF’s top priority is to combat violent crime and keep communities safe,” stated ATF Acting Special Agent in Charge Croke. “The charges announced today are a prime example of what happens when ATF and our law enforcement partners work together – we successfully target, disarm and remove violent criminals from the neighborhoods in which they operate.”
A 51-count superseding indictment, which was returned on June 27, charges the following 15 individuals with conspiring to distribute cocaine base (“crack cocaine”):
LUTHER NANCE, a.k.a. “Papers” and “Cash,” 27, of Willimantic and Windsor
ANTOINE ARMOUR, a.k.a. “Slim,” 22, of East Hartford
FABIAN AUGUSTINE, a.k.a. “J” and “Fabe,” 23, of East Hartford
JAMES BROWN, a.k.a. “Decky,” 23, of East Hartford
MORGAN GILL, a.k.a. “Teck,” 23, of Hartford
MICHAEL GLENN, 29, of Wethersfield
KALONI GOODLEY, a.k.a. “Scrap,” 22, of Hartford
LEESA GRANT, 21, of Hartford
ALONZO HAMILTON JR., a.k.a. “Al,” 20, of Manchester
JAHMELL HARDING, 27, of Hartford
ANTHONY HARRINGTON, a.k.a. “Tone,” 28, of Bloomfield
MONTRELL HUFF, 35, of Unionville
WANDA SOTO, 25, of Willimantic
TYKWELL WALTON, a.k.a. “Money,” 20, of Hartford
RAYSHEQUIA WELLS, 20, of East HartfordNANCE, ARMOUR, AUGUSTINE, BROWN, GILL, HAMILTON, SOTO and WALTON are charged with conspiring to distribute 280 grams or more of crack cocaine. If convicted of this charge, each defendant faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. GLENN, GOODLEY, GRANT, HARDING, HARRINGTON, HUFF and WELLS are charged with conspiring to distribute 28 grams or more of crack cocaine. If convicted of this charge, each defendant faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
Each of the defendants, with the exception of BROWN, is also charged with at least one count of possession with intent to distribute narcotics. In addition, HARDING is charged with one count of possession of a firearm in furtherance of a narcotics trafficking crime and one count of possession of an unregistered short-barrel 12-gauge shotgun.
In a separate indictment, also returned on June 27, DAVID LYN, 32, of Hartford, is charged with five counts of possession with intent to distribute, and distribution of, cocaine base.
Nance has been detained since his arrest on February 13, 2013. The other defendants have also been arrested or are currently detained in state custody.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, the U.S. Marshals Service, the Office of the Chief State’s Attorney, the State’s Attorney for the Judicial District of Hartford, and the Hartford, Willimantic, East Hartford, Enfield and Middletown Police Departments.
The case is being prosecuted by Assistant United States Attorneys Geoffrey M. Stone and Jonathan S. Freimann.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Resident Sentenced to 54 Months in Federal Prison for Distributing Crack CocaineRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that VINCENT MESCREA, also known as “Jose Jimenez,” 43, a citizen of the Dominican Republic last residing in New Haven, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 54 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
MESCREA is one of more than 100 individuals 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 MESCREA conspired with others to purchase and redistribute heroin.
MESCREA’s criminal history includes several prior convictions, including at least two felony drug convictions.
MESCREA has been in federal custody since May 17, 2012. On February 20, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack cocaine”).
MESCREA faces deportation proceedings after he completes his prison term.
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]Man Who Ran Multimillion Dollar Investment Fraud Scheme Sentenced to More Than Eight Years in PrisonRead 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 Federal Bureau of Investigation, announced that GARRETT L. DENNISTON, 63, formerly of Sandy Hook, Conn., and Boothbay Harbor, Maine, was sentenced today by United States District Judge Janet Bond Arterton in New Haven 97 months of imprisonment, followed by three years of supervised release, for operating a multimillion dollar investment fraud scheme.
“This lengthy prison term is appropriate for an individual whose long-running scheme defrauded at least 50 victims, including close friends and family, of more than three million dollars,” stated Acting U.S. Attorney Daly. “Many investors were financially ruined. The investing public is urged to steer clear of similar ‘preferred’ investment deals, promises of risk-free investments and guarantees of a high rate of return.”
“Hopefully, today’s sentence will act as a deterrent to everyone who works in the investment world,” stated FBI Special Agent in Charge Mertz. “Those who handle investors’ money must always act in the best interests of clients and never to enrich themselves. Unfortunately, the defendant’s many victims suffered losses perhaps even more profound than those measured in dollars and cents.”
According to court documents and statements made in court, from approximately 2005 to 2012, DENNISTON defrauded individuals through a Connecticut company called ConsensusOne, LLC, by holding himself out to potential investors as operating a successful investment business specializing in mergers and acquisitions, and by convincing individuals to make investments in phony stock options or other similarly non-existent investments. During the scheme, DENNISTON told investors that their money would be used to invest in one of the companies that he or his investment business owned and, specifically, that their money would be used to purchase stock options (or promissory notes) convertible into the company’s stock at a substantial discount to the value of the stock on the date of conversion.
DENNISTON also told investors that the companies were on the verge of being sold or had already been sold in deals that were closing on an accelerated schedule. He further indicated that an investment was refundable if the deal did not close, and that he and his company would guarantee the investments, so that the investments were risk-free. DENNISTON also told people that the investment was being offered to them as part of a “friends and family” deal pursuant to which he had access to a limited pool of stock options that would yield a guaranteed return on investment.
In reality, DENNISTON did not invest his victims’ funds in stock options or in any other legitimate investments. Rather, he spent the money on his own personal and business expenses, as well as for other unauthorized uses. DENNISTON used some money for gifts to family members, and spent additional amounts on airfare, hotels, restaurants, country club memberships, golf and ski outings, mortgage and rent payments, cable and telephone bills, furniture, home renovation costs, and other personal living expenses.
Through this investment scheme, DENNISTON defrauded at least 54 victims out of a total of more than $3 million. Individual investment amounts ranged from a few thousand dollars to nearly $500,000.
DENNISTON concealed his fraudulent activities by preparing fake legal documents and forging signatures of those documents. At times, DENNISTON also used one investor’s funds to repay other investors.
DENNISTON has been detained since his arrest on September 19, 2012. On February 14, 2013, he pleaded guilty to one count of wire fraud.Judge Arterton ordered DENNISTON to pay restitution in the amount of $3,048,969.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Securities, Commodities and Investor Fraud Task Force, notably the Greenwich Police Department. The case was prosecuted by Special Assistant United States Attorney Kerry L. Quinn and Assistant United States Attorney Michael S. McGarry.
The Connecticut Securities, Commodities and Investor Fraud Task Force investigates matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
Today’s announcement is part of efforts underway by President’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Stamford Man Sentenced to More Than Seven Years in Federal Prison for Possessing Stolen FirearmRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that LONNIE WILLIAMS, 27, of Stamford, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 92 months of imprisonment, followed by three years of supervised release, for possessing a stolen firearm.
According to court documents and statements made in court, in July 2012, WILLIAMS stored a stolen Glock 9mm handgun, loaded with seven rounds of ammunition, in the base of a tree in park in Stamford.
WILLIAMS has been detained since his arrest on September 24, 2012. On April 8, 2013, he pleaded guilty to one count of possession of a stolen firearm.
WILLIAMS’s criminal history includes multiple felony convictions.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Stamford Police Department. The case was prosecuted by Assistant United States Attorneys Vanessa Williams and Rahul Kale.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Fairfield Brothers Sentenced to Federal Prison for Distributing OxycodoneRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that two New Fairfield men were sentenced today in Bridgeport federal court for trafficking oxycodone and other controlled substances. U.S. District Judge Stefan R. Underhill sentenced JASON GEORGE WITTLIN, 30, and his brother, MICHAEL WITTLIN, 24, to prison terms of 48 months and 38 months, respectively.
According to court documents and statements made in court, in approximately February 2011, the Drug Enforcement Administration, in conjunction with the Connecticut State Police/Statewide Narcotics Division and Danbury Police Department began investigating a narcotics-trafficking organization led by JASON and MICHAEL WITTLIN. The investigation, which included court-authorized wiretaps, physical surveillance and controlled drug purchases, revealed that the WITTLIN brothers were purchasing large quantities of oxycodone from several individuals, and then redistributing the narcotics to other street-level dealers and also to their own drug customers. The investigation also revealed that JASON WITTLIN purchased and redistributed marijuana.
JASON and MICHAEL WITTLIN were arrested on August 18, 2012. On that date, a search of their Milltown Road residence revealed 13 firearms and assorted ammunition from locations throughout the house.
The WITTLIN brothers have been detained since their arrests. On January 22, 2013, JASON WITTLIN pleaded guilty to one count of conspiracy to possess with intent to distribute controlled substances, namely oxycodone and oxymorphone. MICHAEL WITTLIN pleaded guilty to the same charge on April 5, 2013.
JASON WITTLIN’s criminal history includes a federal marijuana trafficking conviction in 2006, which resulted in a 21-month sentence.
This matter is being investigated by the Drug Enforcement Administration, the Connecticut State Police and the Danbury Police Department. The case is being prosecuted by Assistant United States Attorneys Tracy Lee Dayton and David X. Sullivan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Hartford Man Sentenced to 45 Months in Federal Prison for Illegally Possessing AmmunitionRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that ORLANDO NEALEY, 29, formerly of Willimantic and Hartford, was sentenced on Wednesday, July 3, by United States District Judge Robert N. Chatigny in Hartford to 45 months of imprisonment, followed by three years of supervised release, for illegally possessing ammunition.
According to court documents and statements made in court, on July 16, 2012, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) received information from the Hartford Police Department’s Shoot Team regarding five individuals who had purchased ammunition from a sporting goods store in East Hartford the previous day. All five of the individuals, including NEALEY, were convicted felons. The investigation revealed that NEALEY and others had purchased one box of 9mm ammunition, one box of .38 Special ammunition and one box of .45 Auto ammunition. Each of the boxes contained 50 rounds.
The investigation further revealed that the individuals stored firearms and ammunition in the basement of a residence on Pliny Street in Hartford. A court-authorized search of the residence revealed most of the ammunition that had been purchased on July 15, 2012, as well as a loaded 9mm handgun, a loaded .38 caliber revolver, a loaded pistol grip shotgun, and additional rounds of ammunition.
NEALEY has been detained since his arrest on July 20, 2012. On April 17, 2013, he pleaded guilty to one count of possession of ammunition by a previously convicted felon.
NEALEY’s criminal history includes felony convictions for sale of illegal drugs, possession of narcotics, larceny, burglary and violation of a protective order.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department, with the assistance of the East Hartford Police Department. The case is being prosecuted by Assistant United States Attorney Geoffrey M. Stone.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]U.S. Attorney Reaches Settlement with the Xl Center to Ensure Access for People with DisabilitiesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced a settlement agreement with the XL Center, its management companies, the City of Hartford and the State of Connecticut to resolve allegations that the XL Center failed to comply with the Americans with Disabilities Act (ADA). The ADA prohibits discrimination on the basis of disability, including mobility impairments, in places of public accommodation. The XL Center is an arena in downtown Hartford that seats more than 16,000 people and hosts various athletic and entertainment events.
Following an investigation prompted by a complaint, the XL Center parties agreed to make numerous changes, including adding accessible bathrooms and seats, improving the existing accessible seating, removing mobility impairments, installing additional safety measures, and changing policies.
The XL Center, its management companies, the City of Hartford and the State of Connecticut worked cooperatively to address the deficiencies at the Center. The United States will continue to monitor the XL Center for the next three years to ensure ongoing compliance with the ADA.
“The law appropriately mandates that all people including those with disabilities have equal access to places of public accommodation,” stated Acting U.S. Attorney Daly. “As the XL Center serves so many, we hope the Center’s significant efforts will act as a reminder to all businesses of their legal obligations under the ADA to the citizens of Connecticut. Even facilities that were built prior to the 1992 enactment of the ADA are legally required to remove all physical barriers to access so that their facilities can be enjoyed fully and equally by all people, including those that have limited mobility.”
The ADA prohibits discrimination and ensures equal opportunity for persons with disabilities in employment, state and local government services, public accommodations, commercial facilities, and transportation.
The enforcement of the ADA is a top priority of the United States Attorney’s Office for the District of Connecticut and the Justice Department’s Civil Rights Division. Individuals can file an ADA complaint with the U.S. Attorney’s Office in Connecticut by calling 203-821-3700, and also by visiting www.ada.gov/filing_complaint.htm. Additional information about the ADA and its application to places of public accommodation can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD).
This case was handled by Assistant United States Attorneys Lisa E. Perkins and David C. Nelson.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Citizen of El Salvador 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, today announced that MAURICIO ARTURO MADRID, also known as Mauricio Nava-Morales, 35, a citizen of El Salvador, was sentenced yesterday by United States District Judge Janet C. Hall in New Haven to six months of imprisonment for illegally reentering the United States after he was deported.
According to court documents and statements made in court, between September 2008 and August 2010, MADRID was removed from the United States to El Salvador on three separate occasions. MADRID again returned to the U.S. and, on July 30, 2012, he was arrested by Stamford Police and subsequently convicted of driving under the influence, second degree assault, interfering/resisting arrest and assault on personnel. On January 31, 2013, he was sentenced to six years of incarceration, suspended after 25 months.
Judge Hall ordered that MADRID begin serving his six-month federal sentence after his release from state custody.
MADRID has been detained since his arrest. On February 27, 2013, he pleaded guilty to one count of illegal reentry of a removed alien.
Since the age of 23, MADRID has been arrested at least 15 times while in the U.S.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, with the assistance of the Stamford Police Department. 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]Two-time Convicted Sex Offender Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that PETER LYNN SCHUETT, 54, of Manchester, pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to one count of receipt and distribution of child pornography.
According to court documents and statements made in court, on February 1, 2013, the Connecticut State Police, Manchester Police Department and Homeland Security Investigations executed an arrest warrant on SCHUETT for violation of Connecticut’s state sex offender registry law. Prior to execution of the warrant, SCHUETT consented to a search of his mobile phone, which revealed that he had received and distributed images and videos of child pornography.
Subsequent forensic analysis of SCHUETT’s phone and email accounts has revealed hundreds of images and videos of child pornography. The images and videos contained depictions of prepubescent minors and minors under the age of 12 engaged in sexually explicit conduct, as well as material depicting sadistic and masochistic conduct or other depictions of violence. The investigation revealed that SCHUETT also engaged in sadistic and masochistic chats with other individuals that advocated graphic violence against children.
SCHUETT has previous convictions in Texas in 2000 for possession of child pornography, and in Connecticut in 2008 for importing child pornography and promotion of a minor in an obscene performance.
Judge Arterton has scheduled sentencing for October 1, 2013, at which time SCHUETT faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 40 years. The penalties in this case are enhanced because of SCHUETT’s criminal history.
SCHUETT has been detained since his arrest on February 1, 2013.
This case is being investigated by Homeland Security Investigations, with assistance from the Connecticut State Police and the Manchester Police Department. The case is being prosecuted by Assistant United States Attorney Sarala V. Nagala.
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]Florida Resident Pleads Guilty to Role in $90 Million Pharmaceutical Theft from Connecticut WarehouseRead 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 AMED VILLA, 48, a citizen of Cuba last residing in Miami, Fla., pleaded guilty today to federal charges stemming from his participation in the theft of approximately $90 million in pharmaceuticals from a warehouse in Enfield, Conn., and $8 million in cigarettes from a warehouse in Illinois.
“The Eli Lilly theft is reportedly the largest in Connecticut history, and I commend the FBI in New Haven and the Enfield Police Department, as well as our counterparts in the Central District of Illinois and other jurisdictions, for their cooperative investigative efforts in dismantling a prolific cargo theft ring,” stated Acting U.S. Attorney Daly.
“Today’s guilty plea is the result of a most exhaustive and far-reaching investigation, highlighted by exemplary teamwork among our federal, state and local partners,” stated FBI Special Agent in Charge Mertz. “Complex investigations involving multiple agencies and jurisdictions are often difficult because they require an especially organized and coordinated effort in order to bring those responsible for crimes to justice. The tremendous investigative and prosecutive effort in this matter is evident by Villa’s guilty plea.”
According to court documents and statements made in court, between January and March 2010, VILLA and others conspired to steal pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield, Conn. The investigation revealed that, in early 2010, members of the conspiracy traveled from the Miami area to Connecticut to gather information about the warehouse facility and the surrounding area. Shortly before the theft, VILLA and another individual drove from Florida to Flushing, N.Y., where they purchased tools needed to break into the warehouse facility, and then traveled to Connecticut.
In the evening of March 13, 2010, VILLA and others traveled in a tractor trailer to the parking lot of the Eli Lilly warehouse facility, dropped off a ladder and left. Later that evening, VILLA and a co-conspirator carried the ladder to the facility, checked for security in the front area, climbed onto the roof, used the tools to cut a hole in the facility roof, dropped down into the facility and disabled the alarm system. Thereafter, VILLA and others loaded approximately 53 pallets of pharmaceuticals into the tractor trailer, which they had backed up to the loading dock of the facility.
The pallets of pharmaceuticals included thousands of boxes Zyprexa, Cymbalta, Prozac, Gemzar and other medicines, valued at approximately $90 million.
Once the conspirators returned to Miami, they packed the pharmaceuticals into moving boxes and stored them in self-storage units in the Miami area.
As part of the investigation, on October 14, 2011, law enforcement authorities searched a storage facility in Florida and recovered pharmaceuticals that had been stolen from the Enfield warehouse.VILLA also pleaded guilty to a federal theft charge from the Central District of Illinois, admitting that, on January 24, 2010, he and others stole approximately 3,512 cases of cigarettes and a cargo trailer from a warehouse in East Peoria, Ill. During this theft, the warehouse was accessed by a hole cut in the roof and the security system was bypassed. A ladder and tools were discovered near the hole in the roof. In addition, a water bottle was recovered from the floor inside the warehouse. Analysis of DNA found on the water bottle revealed that the DNA profile was consistent with VILLA. The DNA profile also matched DNA recovered during the investigation of the Eli Lilly warehouse theft.
VILLA pleaded guilty to one count of conspiracy to commit theft from an interstate shipment and two counts of theft from an interstate shipment. When he is sentenced, VILLA faces a maximum term of imprisonment of 25 years.
VILLA has been detained since his arrest on May 3, 2012.
The investigation of the Enfield warehouse theft was led by the FBI in New Haven and the Enfield Police Department, with the assistance of several other United States Attorney’s Offices and federal, state and local law enforcement agencies that have been investigating large-scale thefts of pharmaceuticals and other products. The investigation of the warehouse theft in East Peoria was led by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Peoria Police Department.
This case is being prosecuted in the District of Connecticut by Assistant U.S. Attorney Anastasia E. King, with the assistance of Assistant U.S. Attorney K. Tate Chambers of the Central District of Illinois.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Citizen of Guatemala Sentenced to 21 Months in Prison for Illegally Reentering U.S. After DeportationRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that LUSVIN LEONEL OLIVA-AQUINO, 27, a citizen of Guatemala last residing in Stamford, was sentenced yesterday by United States District Judge Robert N. Chatigny in Hartford to 21 months of imprisonment for illegally reentering the United States after he was deported.
According to court documents and statements made in court, OLIVA-AQUINO illegally entered the U.S. sometime prior to April 24, 2008, when he was arrested by the Stamford Police Department on charges of second degree sexual assault and risk of injury to a minor. The charges stemmed from OLIVA-AQUINO’s illegal sexual contact with a 13-year-old girl. He was convicted of both offenses and sentenced to eight years of incarceration, execution suspended, with one year to serve, and a total of 10 years of probation. OLIVA-AQUINO was deported to his native Guatemala in October 2009.
On October 3, 2012, OLIVA-AQUINO was arrested by Stamford Police for motor vehicle offenses.
OLIVA-AQUINO has been detained since his arrest. On February 7, 2013, he pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, with the assistance of the Stamford Police Department. 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]Shelton Man Sentenced to 30 Months in Federal Prison for Trading Child Pornography on the InternetRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ARTHUR GALLOWAY, 38, of Shelton, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by 10 years of supervised release, for trading child pornography on the Internet.
According to court documents and statement made in court, on March 14, 2012, the Connecticut State Police Computer Crimes Unit, Shelton Police Department and Federal Bureau of Investigation conducted a court-authorized search of GALLOWAY’s residence and seized a laptop computer, an external hard drive and other items. Investigators determined that GALLOWAY used the Internet to trade numerous images and video of child pornography, and he was arrested at that time.
Subsequent forensic analysis of the seized items revealed that GALLOWAY possessed 11 printed photographs, 913 images and 45 videos of children engaging in sexually explicit conduct. Some of the videos exceeded 20 minutes in length.
On January 11, 2013, GALLOWAY pleaded guilty to one count of receipt and distribution of child pornography.
This matter was investigated by the Connecticut State Police Computer Crimes Unit, the Shelton Police Department, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant United States Attorneys Felice M. Duffy and Neeraj N. Patel.
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]Former Hartford Resident Pleads Guilty to Sex Trafficking of A MinorRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that KAMAR JAMES, also known as “Sean Steppa,” “Sean Lawson” and “Akamar Lawson,” 30, a citizen of Jamaica last residing in Hartford, pleaded guilty today before United States Magistrate Judge Thomas P. Smith in Hartford to one count of sex trafficking of a minor.
According to court documents and statements made in court, in 2011, JAMES recruited a minor victim whom JAMES knew to be under the age of 18 to engage in prostitution. On multiple occasions, JAMES transported the minor victim from Connecticut to streets in New York City where the victim would meet men who would pay her for sexual encounters. JAMES also posted pictures of the minor victim on the Internet to advertise the victim’s prostitution services. He then transported the victim to hotels in the New York City area when the victim engaged in pre-arranged prostitution encounters. The victim turned over all of the proceeds from the prostitution encounters to JAMES.
JAMES is scheduled to be sentenced by United States District Judge Vanessa L. Bryant on September 19, 2013, at which time he faces a mandatory minimum term of imprisonment of 10 years and a maximum term of life.
JAMES has been detained since his arrest on February 3, 2012.
This matter has been investigated by the Federal Bureau of Investigation and the Hartford Police Department, with the assistance of U.S. Immigration and Customs Enforcement. The case is being prosecuted by Assistant United States Attorney David E. Novick.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Bishop of Trumbull Church Sentenced to 46 Months in Prison for Investment Fraud SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JULIUS C. BLACKWELDER, 59, formerly of Stratford, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 46 months of imprisonment, followed by three years of supervised release, for operating an investment fraud scheme.
According to court documents and statements made in court, beginning in 2005, BLACKWELDER persuaded individuals to invest their money with him as part of an investment pool known as the “Friend’s Investment Group.” At the time, BLACKWELDER was the Bishop of the Bridgeport Ward of the Church of Jesus Christ of Latter-day Saints located in Trumbull, and he solicited investments from, among others, members of his congregation.
BLACKWELDER misrepresented to investors that he would invest their money in safe, long-term commodities futures contracts, and that he was an experienced and successful commodities investor. In some instances, BLACKWELDER guaranteed investors’ principal and a specific return on their investment. He documented his misrepresentations to investors in promissory notes, offering memoranda and account updates that he prepared.
In fact, BLACKWELDER used investors’ money to fund his construction of a 7,000 square-foot home on the Housatonic River in Stratford, to pay other personal expenses and to repay personal bank loans, including a line of credit from a Troubled Asset Relief Program (TARP) recipient bank. BLACKWELDER also used some invested funds to pay earlier investors.
Through this scheme, BLACKWELDER defrauded investors of nearly $500,000.
One victim of BLACKWELDER’s scheme, who was nearing retirement, took out a $100,000 home equity loan on his house and withdrew $130,000 from his 401k to invest with BLACKWELDER.
“This defendant exploited his position in his church to mislead other church members into believing he was an accomplished investor who could help them protect and increase their wealth,” stated Acting U.S. Attorney Daly. “Instead, he used much of the money he took from his victims to construct a luxurious waterfront mansion so that he could live in comfort while his victims struggled to make ends meet. I want to thank the U.S. Postal Inspection Service, SIGTARP, IRS-Criminal Investigation and the Connecticut Department of Banking who investigated this matter, as well as our other law enforcement partners who are working diligently to protect investors by identifying and rooting out fraudulent financial schemes.”
On February 20, 2013, BLACKWELDER pleaded guilty to one count of wire fraud and one count of money laundering.
This matter was investigated by the United States Postal Inspection Service, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Internal Revenue Service – Criminal Investigation, and the State of Connecticut Department of Banking. The case was prosecuted by Assistant United States Attorney Jonathan N. Francis and Acting United States Attorney Daly.
The Connecticut Securities, Commodities and Investor Fraud Task Force investigates matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
Today’s announcement is part of efforts underway by the President’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Hartford Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Deirdre Daly, Acting United States Attorney for the District of Connecticut, announced that OBED FRANCO, also known as “Obie,” 23, of Hartford, pleaded guilty today before United States District Judge Janet C. Hall in New Haven to one count of possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, FRANCO was a member of a drug trafficking organization that sold heroin in the Hartford area. One of FRANCO’s heroin customers held a Connecticut pistol permit. On five occasions between February 2011 and May 2011, FRANCO and others drove the drug customer to a federally-licensed firearms dealer in East Hartford and picked out a total of eight guns for the customer to purchase. FRANCO and his other co-conspirators, including Wilson Morillo, then provided the customer with money to complete the purchases. After purchasing the firearms and leaving the store, FRANCO and his co-conspirators gave the drug customer heroin and cash in exchange for the firearms.
In May 2011, FRANCO also purchased a firearm from another heroin customer in exchange for cash and heroin.
Judge Hall has scheduled sentencing for September 18, 2013, at which time FRANCO faces a mandatory minimum term of imprisonment of five years and a maximum term of life imprisonment.
FRANCO has been detained on unrelated state charges since June 15, 2011.
On May 28, 2013, Morillo pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime. He also is detained while awaiting sentencing.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case is being prosecuted by Assistant United States Attorney Jonathan S. Freimann and Special Assistant United States Attorney Natasha Dye.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Guilford Podiatrist Pleads Guilty to Medicare FraudRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that RICHARD SOKOLOFF, 70, of Guilford, waived his right to indictment and pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to one count of health care fraud.
According to court documents and statements made in court, SOKOLOFF was a podiatrist with a practice at 652 Boston Post Road in Guilford. Between July 2008 and February 2012, SOKOLOFF engaged in a health care fraud scheme by submitting claims to Medicare for avulsion of nail plate services which were not rendered. An avulsion of nail plate service, or “nail avulsion,” is a surgical procedure to treat ingrown toenails. The procedure involves the surgical separation and removal of all or part of a toenail from the tip of the nail back to the base of the nail. Pursuant to relevant Medicare policies, the procedure is required to be performed using injectable anesthesia unless the patient is devoid of sensation or there are other extenuating circumstances. Injectable anesthesia is necessary to perform a partial or full nail avulsion to avoid causing extreme pain to the patient.
The investigation revealed that SOKOLOFF commonly provided only “routine foot care” services to his Medicare patients, such as simply trimming or clipping their toenails, but he regularly submitted claims to Medicare as if he had performed nail avulsion surgical procedures. Routine foot care is typically not a payable service under relevant Medicare regulations except in limited circumstances for patients with certain systemic conditions or other significant medical issues. SOKOLOFF also did not use an injectable anesthetic while supposedly providing nail avulsion services.
When Medicare requested that SOKOLOFF provide documentation to substantiate his nail avulsion services, SOKOLOFF created and back-dated patient progress notes to make it appear that the avulsion of nail plate services had been performed when, in fact, they had not been performed.
SOKOLOFF was paid more than $200,000 by Medicare for nail avulsion services that had not been performed.
Judge Arterton has scheduled sentencing for October 3, 2013, at which time SOKOLOFF faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
As part of the resolution of this matter, SOKOLOFF has agreed to a 10-year exclusion from all federal health care programs.
This investigation was conducted by special agents from the Office of Inspector General for the Department of Health and Human Services and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Richard M. Molot and Auditor Kevin Saunders.
Acting U.S. Attorney Daly encourages individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at (203) 777-6311 or. 1-800-HHS-TIPS.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Crack Dealer Sentenced to 41 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ROBERT MORRIS, 21, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 41 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
MORRIS is one of more than 100 individuals 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 MORRIS conspired with others to distribute crack.
MORRIS was arrested on May 22, 2012, and is currently detained. On February 4, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack”).
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]Federal Jury Convicts Wethersfield Resident of Running Fraudulent Debt Elimination SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found DEOWRAJ “DEO” BUDDHU, 70, formerly of Wethersfield, guilty of multiple charges related to his operation of a fraudulent debt elimination scheme. The trial before Chief United States District Judge Alvin W. Thompson began on June 5 and the jury returned its verdict this afternoon after deliberating for less than one hour.
“This defendant’s fictitious debt elimination scheme defrauded numerous struggling homeowners, many of whom were immigrants with little command of the English language,” stated Acting U.S. Attorney Daly. “He took thousands of dollars from his victims, knowing it would make their unsteady financial situation even worse, and used the funds to pay his own personal expenses. All distressed homeowners must steer clear of such schemes and seek legitimate assistance for financial difficulties. I want to thank IRS – Criminal Investigation and HUD-OIG for their work on this case, and our other law enforcement partners who are committed to prosecuting individuals who victimize individuals through financial fraud schemes.”
According to the evidence introduced during the trial and statements made during prior court proceedings, between February 2009 and June 2012, BUDDHU sold a debt elimination “program” to several vulnerable individuals through various businesses, including Paradise Consulting Service, Hema, Inc., and Secured Redemption. In exchange for substantial fees, BUDDHU told victims about a little-known government fund that could be used to pay off their mortgages and other debts. In fact, no such fund exists. BUDDHU advised victims to stop making payments on their mortgages and other debts, including property taxes. He also provided his victims with fictitious promissory notes, which he called “bonds,” as well as other frivolous documentation, which he told victims they could use to pay their debts. BUDDHU’s daughter, Sunita Buddhu, a licensed notary public, notarized documents provided to the victims as part of the program. Victims were directed to present the fraudulent promissory notes and other documentation to banks and other creditors.
By ceasing their mortgage payments and other obligations, BUDDHU’s victims ended up in foreclosure proceedings and are at risk of losing their homes and other assets.
BUDDHU also prepared and directed victims to file frivolous lawsuits, documents, motions, and other purported legal documents with the state courts in Connecticut and elsewhere.
The jury found BUDDHU guilty of six counts of mail fraud and seven counts of issuing, selling and presenting fictitious financial instruments. Chief Judge Thompson has scheduled sentencing for September 17, 2013, at which time BUDDHU faces a maximum term of imprisonment of 30 years on each count of mail fraud, and a maximum term of imprisonment of 25 years on each count of passing fraudulent financial instruments.
BUDDHU has been detained since his arrest on June 11, 2012.
On October 10, 2012, Sunita Buddhu, 43, pleaded guilty to one count of issuing, selling and presenting fictitious financial instruments. She has been detained since her arrest on June 13, 2012 and also awaits sentencing.
This matter was investigated by the Internal Revenue Service – Criminal Investigation and the U.S. Department of Housing and Urban Development – Office of Inspector General, with assistance from the Wethersfield Police Department.
The case is being prosecuted by Assistant United States Attorneys Lisa Perkins and Liam Brennan.
Today’s announcement is part of efforts underway by the President’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]East Windsor Gun Store Employee Pleads GuiltyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that KRYSTOPHER DIBELLA, 25, of West Suffield, pleaded guilty yesterday before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to one count of aiding and abetting the failure to make a proper entry on an ATF Form 4473, a form that must be completed by individuals who purchase firearms from federally-licensed firearms dealers.
According to court documents and statements made in court, from approximately 2008 to August 2012, DIBELLA was employed at Riverview Gun Sales, which used to be a federally-licensed firearms dealer in East Windsor. On several occasions during his employment at Riverview Gun Sales, DIBELLA transferred firearms to individuals who failed to respond to certain questions on the ATF Form 4473.
The charge against DIBELLA stems from a sale that occurred on March 15, 2010. On that date, DIBELLA failed to have a purchaser of a firearm, who was a non-immigrant alien, answer a question on the form regarding United States citizenship.Judge Fitzsimmons has scheduled sentencing for September 16, 2013, at which time DIBELLA faces a maximum penalty of one year of imprisonment, five years of probation and a $100,000 fine. The parties have agreed to recommend a sentence of three years of probation. As part of this agreement, DIBELLA will not apply for a Federal Firearms License (FFL) or to be a responsible party for an FFL for the entire probationary term.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives 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]Attorney Charged with Laundering Drug MoneyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration in New England, today announced that a federal grand jury sitting in Bridgeport has returned an indictment charging RALPH CROZIER, 61, an attorney based in Seymour, with federal money laundering offenses.
As alleged in court documents, prior to September 2011, CROZIER convinced a client to invest $30,000 in cash in a solar energy company. CROZIER knew that the cash was derived from his client’s narcotics trafficking activities.
CROZIER was arrested at his office on April 11, 2013, after he allegedly accepted an additional $11,000 in purported drug proceeds to invest on behalf of his client.
The indictment, which was returned on June 11, 2013, charges CROZIER with one count of conspiracy to launder monetary instruments and one count of attempt to launder monetary instruments. Each charge carries a maximum term of imprisonment of 20 years and a fine of up to $1 million.
CROZIER is currently released on a $200,000 bond.
Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force, which includes the Connecticut State Police and the Stratford, Stamford, Bridgeport, Norwalk and Westport Police Departments. The case is being prosecuted by Assistant United States Attorney Rahul Kale.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New York Man Who Supplied Cocaine to New Haven Drug Dealers Sentenced to 57 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that AMAURY P’DILLA, also known as “Audi,” 32, of New York, N.Y., was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 57 months of imprisonment, followed by five years of supervised release, for distributing cocaine.
P’DILLA is one of more than 100 individuals 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, between January 2011 and January 2012, P’DILLA supplied wholesale quantities of cocaine to several New Haven-based drug dealers.
On February 13, 2013, P’DILLA 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 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]New Haven Man Sentenced to More Than Eight Years for Role in Crack Cocaine Trafficking RingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MANOKUS FIELDS, also known as “Fresh,” 30, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 97 months of imprisonment, followed by five years of supervised release, for selling crack cocaine. On March 1, 2013, a jury found FIELDS guilty of conspiracy to distribute 280 grams or more of cocaine base (“crack cocaine”).
According to statements made in court and the evidence disclosed during the trial, this matter stems from a joint law enforcement investigation conducted in 2010 by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug trafficking organization that was headed by Joseph Jackson, also known as “Mighty” and “M.I.,” and centered in the Newhallville section of New Haven and Hamden. The investigation revealed that Jackson used “young boys,” some of whom were still in high school, to distribute large quantities of crack cocaine.
From June through October 2010, FIELDS was regularly intercepted over the wiretap arranging to meet one of Jackson’s associates at locations in Fairhaven and Newhallville to purchase “8-ball” quantities (3.5 grams) of crack cocaine. FIELDS then divided the crack into $10 and $20 baggies, which he sold to his own customers.
At trial, FIELDS maintained that he bought crack cocaine from the members of the conspiracy, but was not a conspirator himself. The jury rejected this defense, and convicted FIELDS on the conspiracy count, which was the only charge against him.
Forty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation. All have been convicted.
On June 18, 2013, Jackson was sentenced to 300 months of imprisonment.
This matter was investigated by the FBI New Haven Safe Streets Task Force (composed of members of the New Haven, Milford and Hamden Police Departments and the Connecticut Department of Correction), the Drug Enforcement Administration’s New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments. The United States Marshals Service also has assisted the investigation.
The investigation 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 matter is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Waterford Man on Trial for Mortgage Fraud Offenses Pleads GuiltyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JUAN VELEZ, 60, of Waterford, pleaded guilty today before United States District Judge Robert N. Chatigny in Hartford to one count of bank fraud stemming from a mortgage fraud scheme. VELEZ pleaded guilty in the middle of his trial, which began on June 17.
According to court documents and statements made in court, in 2006 and 2007, VELEZ and others engaged in a mortgage fraud scheme involving multiple properties in New London. As part of the scheme, VELEZ acquired properties from a co-defendant and other individuals and then sold the properties to another co-defendant, Flavia Mendoza, at inflated prices using fraudulently obtained mortgage loans.
In pleading guilty, VELEZ specifically acknowledged that he was involved in the fraudulent transaction of a property located at 624-626 Montauk Avenue in New London. As established in court and acknowledged by VELEZ during today’s court proceeding, when VELEZ sold the property to Mendoza there were a number of significant false statements contained in the loan paperwork, including Mendoza’s income, her intention to occupy the property as her primary residence, and the amount of money she was providing to purchase the property. Additionally, the Housing and Urban Development Settlement Statement form (“HUD-1”), which VELEZ signed, falsely stated that Mendoza had provided VELEZ with approximately $29,760 for the purchase of the property when Mendoza had not, in fact, provided any down payment money for the transaction. Based on these false statements, Mendoza obtained a mortgage loan in the amount of $492,699 from the bank.VELEZ, Mendoza and others shared the profits of this and other fraudulently obtained residential mortgage loans, which totaled more than $1.2 million.
Judge Chatigny has scheduled sentencing for September 12, 2013, at which time VELEZ faces a maximum term of imprisonment of 30 years. Mendoza also has pleaded guilty and awaits sentencing.
This matter is being investigated by the U.S. Postal Inspection Service, the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Michael S. McGarry and Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Stamford Man Pleads Guilty to Racketeering Charge Stemming from Illegal Gambling BuinessesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DOUGLAS CORBIN, 52,of Stamford, 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 Act (RICO) stemming from his involvement in organized crime-controlled illegal 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, CORBIN 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 CORBIN 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.
In addition, CORBIN and others, operated a card gambling club at 514 Glenbrook Road in Stamford, where a house percentage, commonly referred to as a “rake,” was collected from every hand played.
Judge Bryant has scheduled sentencing for September 12, 2013, at which time CORBIN faces a maximum term of imprisonment of 20 years. He also has agreed to forfeit $100,000.
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]New Haven Woman Sentenced to Three Years in Federal Prison for Distributing Crack CocaineRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that TIFFANY MARTINEZ, 24, of New Haven, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 36 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
MARTINEZ is one of more than 100 individuals 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. During the course of the investigation, MARTINEZ sold crack cocaine out of a Fair Haven residence on behalf of a co-defendant.
MARTINEZ was arrested on June 5, 2012. On January 4, 2013, she pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute 28 grams or more of cocaine base (“crack”).
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 Old Saybrook Resident Admits Operating Fraud SchemesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that PAUL E. BRENNAN, 45, formerly of Old Saybrook, Conn., and Phoenix, Ariz., waived his right to indictment and pleaded guilty yesterday before Senior United States District Judge Alfred V. Covello in Hartford to federal fraud offenses.
According to court documents and statements made in court, from approximately March 2009 to August 2011, BRENNAN convinced women with whom he was romantically involved, and other acquaintances, to cash checks for him at financial institutions knowing that the checks were drawn on closed or underfunded accounts and would be returned for nonpayment. BRENNAN also cashed, or had others cash for him, fraudulent checks at check cashing businesses in Connecticut.
Also, from approximately November 2010 to June 2011, BRENNAN defrauded individuals by pitching phony investment deals and soliciting money from victims for fraudulent business ventures. During the scheme, BRENNAN convinced one victim to give him more than $100,000 for property deals and stock market investments, and he convinced other victims to give him money for investments in fraudulently-operated businesses, including BC Property Management and B&D Powerwashing. BRENNAN also persuaded certain victims to grant him authorization to use their credit cards and lines of credit.
In total, BRENNAN’s fraud schemes victimized more than 10 individuals and caused nearly $400,000 in losses to those victims. BRENNAN used much of the money he received from his victims to pay personal expenses.
BRENNAN pleaded guilty to one count of bank fraud and one count of mail fraud. Judge Covello has scheduled sentencing for September 11, 2013, at which time BRENNAN faces a maximum term of imprisonment of 30 years on the bank fraud count and 20 years on the wire fraud count.
BRENNAN has been detained since his arrest in Arizona on February 27, 2013.This matter has been investigated by the Federal Bureau of Investigation, the Old Saybrook Police Department and the State’s Attorney for the Judicial District of New London. The case is being prosecuted by Special Assistant United States Attorney Kerry L. Quinn.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Head of New Haven Drug Trafficking Ring Sentenced to 25 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSEPH JACKSON, also known as “Mighty” and “M.I.,” 37, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 300 months of imprisonment, followed by five years of supervised release, for operating an extensive New Haven narcotics trafficking ring.
This matter stems from a joint law enforcement investigation conducted in 2010 by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug trafficking organization that was headed by JACKSON and centered in the Newhallville section of New Haven and Hamden. At the time, JACKSON was one of the principal suppliers of crack cocaine in and around New Haven. The investigation revealed that JACKSON purchased multiple kilograms of cocaine from various sources of supply, and then converted a large majority of the cocaine into crack cocaine. JACKSON then provided distribution quantities of crack to others who sold it on his behalf and gave the proceeds to JACKSON. At times, JACKSON sold crack and powder cocaine to his own customers.
Forty-seven individuals were charged in federal court with various narcotics offenses as a result of this investigation. All have been convicted.
“This significant sentence is appropriate for a defendant who operated a massive crack cocaine distribution network in New Haven, and whose multiple prior drug trafficking convictions failed to deter him from criminal behavior,” stated Acting U.S. Attorney Daly. “Hopefully, this sentence will serve as a warning to others: Drug trafficking will not be ignored and the federal penalties, especially for repeat offenders, are severe. I thank the FBI and DEA task forces and the New Haven and Hamden Police Departments for their cooperation and terrific investigative efforts.”
JACKSON’s criminal history includes seven state drug trafficking felony convictions.
Acting U.S. Attorney Daly noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.
JACKSON was arrested on October 28, 2010. On that date, federal agents executed search warrants at various locations, including JACKSON’s residence on Winchester Avenue in New Haven and a West Haven apartment that JACKSON used to process, store and package narcotics. A search of the Winchester Avenue residence revealed a Taurus .40 caliber semi-automatic pistol with an obliterated serial number, crack cocaine and cash. A search of the West Haven apartment revealed one kilogram of cocaine, 150 grams of crack packaged for distribution, multiple cell phones, drug packaging materials and cash.
As part of his sentence, Judge Burns ordered JACKSON to forfeit two automobiles, two motorcycles and approximately $72,325.
On February 1, 2013, JACKSON pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack cocaine”).
This matter was investigated by the FBI New Haven Safe Streets Task Force (composed of members of the New Haven, Milford and Hamden Police Departments and the Connecticut Department of Correction), the Drug Enforcement Administration’s New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments. The United States Marshals Service also has assisted the investigation.
The investigation 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 matter is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Connecticut Man Admits Running Investment Fraud SchemeRead 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 JONATHAN GRACIA, 24, formerly of Middletown, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Thomas P. Smith in Hartford to one count of wire fraud stemming from an investment fraud scheme.
According to court documents and statements made in court, GRACIA falsely told friends and acquaintances that he was developing a website for which he had potential buyers, and that he had developed an “app” for the iPhone, and then solicited investments and loans from his victims in connection with both of these purported ventures. GRACIA regularly told the victims that they would receive outsized returns on their investments. As part of the scheme, GRACIA created bogus documents to deceive his victims, including fake checks, bogus bank account statements and a letter that he created on what appeared to be the letterhead of a prominent Connecticut hedge fund management company. Through this scheme, GRACIA defrauded his victims of at least $200,000.
GRACIA is scheduled to be sentenced by United States District Judge Vanessa L. Bryant on September 10, 2013, at which time he faces a maximum term of imprisonment of 20 years.
GRACIA has been detained since his arrest on March 18, 2013.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Branford and Stamford Police Departments. The case is being prosecuted by Assistant United States Attorney Paul A. Murphy.
In December 2010, the U.S. Attorney’s Office and several law enforcement and regulatory partners announced the formation of the Connecticut Securities, Commodities and Investor Fraud Task Force, which is investigating matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Bank Teller Admits Stealing Money from Cd AccountsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MICHELLE LAUDATO, 35, of Farmington, waived her right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to one count of bank fraud.
According to court documents and statements made in court, between July 2009 and June 2010, LAUDATO used her position as a teller supervisor at a branch of Webster Bank in Bristol to steal more than $178,000 from the CD accounts of at least 18 bank customers. Thirteen of the 18 bank customers were between the ages of 79 and 99.
As part of the scheme, LAUDATO sometimes withdrew funds from certain CD accounts to replace funds in the CD accounts she had previously accessed. She also withdrew funds in increments of $10,000 or less to avoid currency transaction reporting requirements.
LAUDATO is scheduled to be sentenced by Chief United States District Judge Alvin W. Thompson on September 6, 2013, at which time she faces a maximum term of imprisonment of 30 years and a fine of up to $1 million.
This matter has been investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Felice M. Duffy.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Debt Collection Agency Executive Pleads Guilty to Bank Bribery ChargeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that PATRICK PINTO, 44, of Bohemia, N.Y., waived his right to indictment and pleaded guilty today before United States District Judge Stefan R. Underhill in Bridgeport to one count of conspiring to commit bank bribery while he was an executive of Oxford Collection Agency.
According to court documents and statements made in court, Oxford Collection Agency (“Oxford”) was a private financial services company that engaged in accounts receivables management, primarily debt collecting, with offices in New York, Pennsylvania and Florida. Between 2007 and 2011, Oxford executives engaged in a multi-year scheme to defraud its lender, Connecticut-based Webster Bank, as well as its investors, clients and the commercial debtors that Oxford collected from. Oxford’s victims lost more than $12 million as a result of this scheme.
The investigation also revealed that Oxford sometimes obtained and retained business with its banking clients by paying bribes and kickbacks to bank officials. As part of the scheme, PINTO, a Vice President of Oxford, and other Oxford executives made monthly payments of between $2,500 and $3,500, which were hidden in cigar boxes, to an Assistant Vice President of U.S. Bank in Ohio.
U.S. Bank and Webster Bank received funds through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP).
Judge Underhill has scheduled sentencing for September 9, 2013, at which time PINTO faces a maximum term of imprisonment of five years and a fine of up to $250,000.
PINTO has been released on a $50,000 bond since his arrest on December 7, 2012.
In May 2012, Richard Pinto, Oxford Collection Agency’s Chairman of the Board, and his son, Peter Pinto, Oxford’s President and Chief Executive Officer, each pleaded guilty to one count of conspiracy to commit wire fraud, bank fraud, and money laundering and one count of wire fraud stemming from this scheme. In December 2012, Oxford Vice-President of Finance and Chief Financial Officer Randall Silver, Executive Vice President Charles Harris, and Chief Operations Officer Carlos Novelli, also pleaded guilty to various charges.
On January 30, 2013, Richard Pinto, who is now deceased, was sentenced to 60 months of imprisonment. The other defendants await sentencing.
PATRICK PINTO is the son of the late Richard Pinto.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Connecticut Securities, Commodities, and Investor Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney Liam Brennan and Special U.S. Attorney John McReynolds.
In December 2010, the U.S. Attorney’s Office and several law enforcement and regulatory partners announced the formation of the Connecticut Securities, Commodities, and Investor Fraud Task Force, which is investigating matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The task force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service-Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll-free, 855-236-9740 or by sending an e-mail to [email protected].
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Federal Jury Finds Brookfield Podiatrist Guilty of Medicare FraudRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, Susan J. Waddell, Special Agent in Charge of U.S. Health and Human Services, Office of Inspector General for New England, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, today announced that a federal jury in Hartford has found SAMIR ZAKY, 38, of Brookfield, guilty of 14 counts of health care fraud and 14 counts of making false statements relating to health care matters. The trial before Senior U.S. District Judge Alfred V. Covello began on June 10 and the jury returned its verdict this afternoon.
“Health care fraud is a serious crime that undermines our ability to provide care to those who need it most,” stated Acting U.S. Attorney Daly. “Our Office is committed to protecting Medicare beneficiaries and taxpayers from all unscrupulous health care providers in Connecticut.”
“When health providers put personal greed ahead of the provision of quality patient services, they should expect intense scrutiny by law enforcement officials,” stated HHS-OIG Special Agent in Charge Waddell “Dr. Zaky recklessly ignored the consequences, insisting on cheating taxpayers, patients, and the Medicare program. Now he is paying the price.”
“Medicare is in place for our nation’s elderly to receive important and often vital health care services,” stated FBI Special Agent in Charge Mertz. “It is not for unscrupulous doctors and health care professionals to use as a personal slush fund. The FBI is committed to investigating fraud in both government-sponsored and private health insurance programs and urges anyone with information on a health care fraud to report it their local FBI office.”
According to the evidence at trial, ZAKY is a podiatrist who operated Affiliated Podiatrists, LLC in Brookfield. From August 2010 to July 2011, ZAKY submitted numerous claims to the Medicare program stating that he had performed nail avulsions, a surgical procedure that requires use of an injectable anesthetic and removes the entire border of a patient’s toenail. In fact, ZAKY had only clipped or trimmed the patient’s toenails.
Judge Covello has scheduled sentencing for September 10, 2013, at which time ZAKY faces a maximum term of imprisonment of 10 years on each count of health care fraud, and a maximum term of imprisonment of five years of each count of making a false statement.
The government also is seeking to forfeit more than $29,000 in cash found during a search of ZAKY’s residence in August 2010.
ZAKY has been released on bond since his arrest on November 29, 2012.
This matter is being investigated by the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys David J. Sheldon and Christopher W. Schmeisser and Auditor Kevin Saunders.
Acting U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at 203-777-6311 or 1-800-HHS-TIPS.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Men Charged with Marijuana Trafficking OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that a federal grand jury sitting in Hartford returned an indictment today charging KEVIN J. DUNBAR, 44, of Manchester, and OVES ST. ORBIN WRIGHT, 56, of Massapequa, N.Y., with marijuana trafficking offenses.
According to allegations contained in court documents, on May 19, 2013, U.S. Customs and Border Patrol (CPB) agents in western Texas conducted a search of a tractor trailer and discovered approximately 315 pounds of marijuana (approximately 143 kilograms) secreted in a shipping crate. CBP agents contacted Drug Enforcement Administration (DEA) agents in El Paso who determined that the crate was destined for a shipping facility in Enfield, Conn. On May 29, 2013, Connecticut DEA agents established surveillance at the Enfield shipping facility and observed DUNBAR and WRIGHT unpack the crate, load the contents into a van and travel to a storage facility in East Hartford, where they were arrested.
The indictment charges DUNBAR and WRIGHT with one count of conspiracy to possess with the intent to distribute 100 kilograms or more of marijuana, and one count of attempting to possess with the intent to distribute 100 kilograms or more of marijuana. Each charge carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
DUNBAR and WRIGHT have been detained since their arrests on May 29.
Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration, with the assistance of U.S. Customs and Border Patrol. The case is being prosecuted by Assistant United States Attorney Geoffrey M. Stone and Special Assistant United States Attorney Michael Ahearn.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Romanian Citizen Involved in Phishing Scheme Sentenced to More Than Six Years in Federal PrisonRead 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 Federal Bureau of Investigation, announced that DRAGOS NICOLAE DRAGHICI, 28, a citizen of Romania, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 78 months of imprisonment for participating in an extensive Internet “phishing” scheme.
A phishing scheme uses the Internet to target large numbers of unwary individuals, using fraud and deceit to obtain private personal and financial information such as names, addresses, bank account numbers, credit card numbers and Social Security numbers. Phishing schemes often work by sending out large numbers of counterfeit e-mail messages that are made to appear as if they originated from legitimate banks, financial institutions or other companies. The fraudulent email messages ask individuals to click on a hyperlink contained in the email message, which would take the individual to a counterfeit site on the Internet that purports to be the Internet site of the particular bank, financial institution or company. At the counterfeit Internet site, the individual is then asked to enter information such as the individual’s name, address and credit or debit card numbers.
According to court documents and statements made in court, in June 2005 a resident of Madison, Conn., contacted the FBI in New Haven about a suspicious email that she had received that purported to be from Connecticut-based People’s Bank. The email stated that the recipient’s online banking access profile had been locked and instructed the recipient to click on a link to a web page where the recipient could enter information to “unlock” his or her profile. The web page appeared to originate from People’s Bank, but, as the investigation revealed, was actually hosted on a compromised computer in Minnesota. Any personal identifying and financial information provided by the individual would be sent by email to individuals in Romania, or to a “collector” account, which was an email account used to receive and collect the information obtained through phishing.
DRAGHICI and others were part of a loose-knit conspiracy of individuals from Craiova, Romania, and neighboring areas that shared files, tools, and stolen information obtained through phishing. The co-conspirators used and shared a number of collector accounts, which contained thousands of email messages that contained credit or debit card numbers, expiration dates, CVV codes, PIN numbers, and other personal identification information such as names, addresses, telephone numbers, dates of birth, and Social Security numbers. The co-conspirators then used the personal and financial information to access bank accounts and lines of credit and to withdraw funds without authorization, often from ATMs in Romania.
The investigation revealed that DRAGHICI was involved in phishing from at least 2004 through 2010, harvesting email addresses, spamming, setting up counterfeit websites and collecting stolen data. DRAGHICI identified himself as “a hacker,” and he was involved in obtaining unauthorized access to computers that could be used for spamming and for hosting counterfeit websites. Analysis of DRAGHICI’s email accounts revealed more than 6,000 stolen debit or credit card account numbers.
In addition to People’s Bank, financial institutions and companies targeted by the defendants included Citibank, Capital One, Bank of America, JPMorgan Chase & Co., Comerica Bank, Regions Bank, LaSalle Bank, U.S. Bank, Wells Fargo & Co., eBay and PayPal.
This investigation has resulted in criminal charges against 19 Romanian citizens. On January 18, 2007, a grand jury in New Haven returned an indictment charging seven defendants with various offenses stemming from this scheme. On November 10, 2010, a grand jury returned a second superseding indictment charging an additional 12 defendants, including DRAGHICI.
The first three defendants to face charges were extradited from Bulgaria, Croatia and Canada. DRAGHICI and seven other defendants were extradited from Romania following the ratification in 2010 of an amended treaty on mutual legal assistance between Romania and the United States.
On December 3, 2012, DRAGHICI pleaded guilty to one count of conspiracy to commit fraud in connection with access devices.
This matter is being investigated by the Federal Bureau of Investigation in New Haven, Conn.
Acting U.S. Attorney Daly and Special Agent in Charge Mertz also acknowledged the critical assistance provided by the U.S. Department of Justice Office of International Affairs, the FBI Legal Attaché in Bucharest, Interpol, the Romanian National Police and the United States Marshals Service.The case is being prosecuted by Assistant United States Attorney Edward Chang.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Putnam Man Charged with Child Pornography OffensesRead 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 Federal Bureau of Investigation, announced that DARRICK COLLETTE, 32, of Putnam, was arrested today and charged by federal criminal complaint with receipt, distribution, and possession of child pornography.
The criminal complaint alleges that on March 19, 2013, an FBI special agent logged onto a publicly available Internet file sharing network and downloaded images and videos of child pornography from a computer connected to the network with an Internet Protocol (IP) address assigned to COLLETTE’s residence. During a search of COLLETTE’s residence this morning, law enforcement officers seized a computer and multiple external hard drives.
COLLETTE was arrested after the search.
COLLETTE appeared this afternoon before United States Magistrate Judge Thomas P. Smith in Hartford, who ordered COLLETTE detained pending a hearing that is scheduled for June 18.
If convicted of the charge of receipt and distribution of child pornography, COLLETTE faces a minimum term of imprisonment of five years, a maximum term of imprisonment of 20 years, and a fine of up to $250,000. If convicted of the charge of possession of child pornography, COLLETTE faces a maximum term of imprisonment of 20 years and a fine of up to $250,000. The penalties in this matter are enhanced because it is alleged that the defendant possessed depictions of prepubescent minors and minors under the age of 12.
Acting U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The Connecticut State Police and Putnam Police Department have assisted the investigation. The case is being prosecuted by Assistant United States Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Man Sentenced to 57 Months in Federal Prison for Distributing HeroinRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSE DeJESUS, also known as “Flaco,” 29, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 57 months of imprisonment, followed by three years of supervised release, for distributing heroin.
DeJESUS is one of more than 100 individuals 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 DeJESUS conspired with others to purchase and redistribute heroin.
DeJESUS has been in federal custody since May 21, 2012. On March 13, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
DeJESUS’s criminal history includes two prior felony convictions for selling 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]Citizen of Brazil Who Twice Reentered U.S. After Deportation Sentenced to 15 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that CHRISTIANO HENRIQUE De PAULA, also known as “Christiano DePaula,” “Christian DePaula,” and “Christiano Decamargo,” 27, a citizen of Brazil, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 15 months of imprisonment for illegally reentering the U.S. after he was deported.
According to court documents and statements made in court, De PAULA was deported from the U.S. to his native Brazil in May 2008 after his conviction in New Jersey for aggravated assault with a weapon. He illegally returned to the U.S. and, on August 25, 2008, pleaded guilty in U.S. District Court in the Southern District of Texas to illegal entry of a removed alien. De PAULA was sentenced to 20 days of imprisonment and, in October 2008, was deported to Brazil.
On June 27, 2012, De PAULA was arrested by Bridgeport Police after he was involved in an altercation with another individual at a local restaurant. De PAULA had been using the name “Christiano Decamargo.”
De PAULA has been detained since his arrest. On March 6, 2013, he pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, with the assistance of the Bridgeport Police Department. The case was prosecuted by Assistant United States Attorney Hal Chen.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]North Windham Man Sentenced to 17 Years in Prison for Producing and Distributing Child PornographyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that HEATH TRAHAN, 39, formerly of North Windham, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 204 months of imprisonment, followed by 15 years of supervised release, for producing and distributing child pornography.
According to court documents and statements made in court, TRAHAN was arrested on October 14, 2011, after investigators determined that he had emailed images of child pornography to an individual in New Jersey. At the time of his arrest, investigators seized several computers, related components and a mobile phone. Forensic analysis of the seized phone determined that TRAHAN used it to take photographs of two minor children engaging in sexually explicit conduct. Examination of the seized computers also revealed approximately 500 images and 60 videos of child pornography, which had not been produced by TRAHAN.
TRAHAN has been detained since his arrest. On December 20, 2012, he pleaded guilty to one count of production of child pornography and one count of distribution of child pornography.
This matter was investigated by Homeland Security Investigations with the assistance of the Connecticut State Police. The case was prosecuted by Assistant United States Attorneys Neeraj N. Patel and Deborah R. Slater. Assistant United States Attorney Fabiana Pierre-Louis of the District of New Jersey has assisted in the investigation and prosecution of this matter.
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]Middlebury Man Sentenced to Federal Prison for Participating in Illegal Campaign Contribution SchemeRead 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 Federal Bureau of Investigation, announced that DAVID MOFFA, 53, of Middlebury, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 24 months of imprisonment, followed by one year of supervised release, for participating in a scheme to direct illegal contributions into the campaign of a candidate for the U.S. House of Representatives. MOFFA, who is a former President of the American Federation of State, County and Municipal Employees (AFSCME), was also ordered to pay a $5,000 fine.
According to court documents and statements made in court, in August 2011, the State of Connecticut applied for a court order enjoining Roll Your Own (“RYO”) smoke shops from continuing to operate without complying with state law governing tobacco manufacturers. RYO smoke shops are retail businesses that sell loose smoking tobacco and cigarette-rolling materials and offer customers the option of paying a “rental” fee to insert the loose tobacco and the rolling materials into a RYO machine, which is capable of rapidly rolling large quantities of cigarettes. Customers did not pay a tax on the RYO cigarettes when rolled by the RYO machines, in contrast to cigarettes purchased over-the-counter.
Paul Rogers and George Tirado co-owned Smoke House Tobacco, a RYO smoke shop with two locations in Waterbury. Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, Rogers, Tirado, MOFFA, Harry Raymond “Ray” Soucy, Benjamin Hogan and others engaged in a scheme to direct conduit contributions into the campaign of Christopher Donovan, a candidate for the U.S. House of Representatives. At the time, Donovan was also the Speaker of the Connecticut House of Representatives. As part of the scheme, the co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign. These individuals permitted checks to be written in their own names to the campaign, and certain conspirators reimbursed them with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.
The investigation revealed that, on November 2, 2011, MOFFA, Rogers and another RYO smoke shop owner met at Smoke House Tobacco in Waterbury and MOFFA advised the other attendees that Soucy could help the RYO smoke shop owners prevent the enactment of harmful legislation. MOFFA then called Soucy and, shortly thereafter, Soucy arrived at Smoke House Tobacco and joined the meeting. Soucy stated that he was a “friend” of Donovan and could assist in arranging a meeting between RYO smoke shop owners and Donovan.
On November 30, 2011, MOFFA met with Soucy, Rogers and another RYO owner at Smoke House Tobacco. During the meeting, MOFFA discussed with the RYO smoke shop owners that they should make a $5,000 contribution to the Donovan for Congress campaign at a fundraising event to be held on December 8, 2011. MOFFA volunteered to serve as a conduit contributor in order conceal the fact that the RYO smoke shop owners were actually financing the contributions. On that date, MOFFA told the RYO smoke shop owners “You give me the money, I’ll give you a check.”
At a meeting at Smoke House Tobacco on December 8, 2011, Rogers and another RYO smoke shop owner provided MOFFA with $2,500 in U.S. currency. MOFFA then wrote a check for $2,500 in his wife’s name to Donovan for Congress and provided Soucy with his wife’s biographical information so that Soucy could fill in a contribution envelope provided by the campaign. Soucy, Rogers and the other shop owner then went to the fundraising event, where they delivered two $2,500 contributions, including the contribution in MOFFA’s wife’s name to the campaign. Following the event, MOFFA met the group for dinner.
On approximately January 31, 2012, the Donovan for Congress campaign submitted to the Federal Election Commission (“FEC”) a report of the campaign’s receipts and disbursements for the period October 1, 2011 through December 31, 2011. The report falsely reported that it had received a $2,500 contribution from MOFFA’s wife when, in fact, neither MOFFA nor his wife had made a contribution to the campaign.
On June 1, 2012, FBI special agents investigating this matter interviewed MOFFA. During the interview, MOFFA falsely stated that he did not receive any cash in exchange for writing the check to the Donovan for Congress campaign.
On November 2, 2012, MOFFA pleaded guilty to one count of conspiring to make false statements to the FEC and to impede the FEC’s enforcement of federal campaign finance laws.
Soucy, Rogers, Tirado, Hogan, Waterbury business owner Daniel Monteiro and Donovan for Congress campaign manager Joshua Nassi also pleaded guilty to charges related to this scheme and await sentencing. In addition, on May 21, 2013, a jury found Robert Braddock, Jr., the campaign’s finance director, guilty of one count of conspiring to make false statements to the FEC and to impede the function of the FEC, one count of accepting more than $10,000 in federal campaign contributions made by persons in the names of others and one count of causing a false report to be filed with the FEC. He also awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Eric J. Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]