District of Connecticut

David B. Fein, United States Attorney for the District of Connecticut, announced that KEVIN WALLIN, 61, of Waterbury, pleaded guilty today before Senior United States District Judge Alfred V. Covello in Hartford to one count of conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine (“meth”).

According to court documents and statements made in court, this matter stems from a joint investigation by the Drug Enforcement Administration and the Connecticut State Police’s Statewide Narcotics Task Force.  The investigation, which included the use of court-authorized wiretaps, controlled purchases of meth, physical surveillance and the use of an undercover officer, revealed that WALLIN received shipments of meth from individuals in California on consignment with the understanding that he would pay his sources with proceeds generated by his distribution of the drug.  After receiving the shipments of meth, he distributed the drug to other dealers and sold it to his own customers.

On six occasions between September 2012 and January 2013, WALLIN sold meth to the undercover officer.

In pleading guilty, WALLIN admitted that he received and distributed 1.7 kilograms of meth.

Judge Covello has scheduled sentencing for June 25, 2013, at which time WALLIN faces a maximum term of imprisonment of life and a fine of up to $10 million.

WALLIN has been detained since his arrest on January 3, 2013.  A court-authorized search of WALLIN’s residence on that date revealed meth, drug paraphernalia and drug packaging materials.

Four other individuals have been charged as a result of this investigation and are currently awaiting trial.  As to these defendants, U.S. Attorney Fein 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 prosecuted by Assistant United States Attorneys Patrick Caruso and H. Gordon Hall.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

David B. Fein, United States Attorney for the District of Connecticut, announced that CARL G. KOPLIN, 55, of Tolland, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 51 months of imprisonment, followed by five years of supervised release, for receiving and distributing child pornography.  KOPLIN also was ordered to pay a fine of $10,000.

“This defendant’s appalling collection of child pornography was one of the largest that we have seen here in Connecticut,” stated U.S. Attorney Fein. “It’s reprehensible that a practicing physician who held such an important position of trust in the community victimized so many children by collecting and trading sexually explicit images of them.  This Office is committing to working with the FBI, Connecticut Child Exploitation Task Force and our other law enforcement partners to protect children by stemming the distribution of these images and vigorously prosecuting offenders.”

According to court documents and statements made in court, a special agent with the Northern Virginia Resident Agency of the Washington Field Office of the Federal Bureau of Investigation used a publicly available Internet file sharing program to download approximately 300 images and videos of child pornography from the shared directories of a user with an Internet Protocol (IP) address that was subsequently identified as belonging to a subscriber at KOPLIN’s residence in Tolland.

On July 9, 2010, federal agents searched KOPLIN’s home and seized a desktop computer, storage media and other computer components.  KOPLIN was arrested on that date after he admitted to agents that he used a file sharing program to trade images of child pornography, and that he was responsible for any child pornography found as a result of the search of his residence.

Subsequent forensic analysis of the seized items revealed thousands of images and videos depicting child pornography, totaling more than 800 gigabytes in size. 

Prior to his arrest, KOPLIN was employed as a family practice physician in Vernon. 

KOPLIN has been in home confinement under electronic monitoring by the U.S. Probation office since the date of his arrest.  On August 29, 2012, he pleaded guilty to one count of receipt of child pornography.

This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies.  The case was prosecuted by Assistant United States Attorneys Ray Miller, Sarala Nagala and Deborah Slater.

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]

David B. Fein, United States Attorney for the District of Connecticut, today announced that MICHAEL UNDERHILL, 42, of Norwalk, was sentenced yesterday by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 108 months of imprisonment for distributing narcotics and for violating the conditions of his supervised release from a prior narcotics conviction.

According to court documents and statements made in court, in March 1998, UNDERHILL was sentenced in U.S. District Court in New Haven to 144 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.  He was released from federal prison in October 2007 and began serving his term of supervised release.

On September 25, 2010, Bridgeport Police attempted to pull over UNDERHILL’s vehicle.  UNDERHILL accelerated away from police, subsequently crashed his vehicle into the rear of a residence in Fairfield and fled on foot.  He was apprehended a short time later.  Law enforcement officers recovered quantities of crack cocaine, cocaine, heroin, marijuana and Ecstacy, all packaged for sale, from the scene of UNDERHILL’s arrest, and a search of UNDERHILL’s person revealed more than $4000 in cash.

In August 2012, while UNDERHILL was released on bond awaiting disposition of the charges in this case, DEA agents executed a search warrant at UNDERHILL’s residence and found additional quantities of crack, cocaine and heroin.

On January 3, 2013, UNDERHILL pleaded guilty to one count of conspiracy to possess with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).

Judge Eginton sentenced UNDERHILL to 60 months of imprisonment on the narcotics offense, and a consecutive 48 months of imprisonment for the supervised release violation.

This matter was investigated by the Bridgeport Police Department and the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force.  The case was prosecuted by Assistant United States Attorney H. Gordon Hall.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

David B. Fein, United States Attorney for the District of Connecticut, announced that RAYMOND CARSON, also known as “Dirt,” 38, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 63 months of imprisonment, followed by three years of supervised release, for distributing heroin.

CARSON is one of 108 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 CARSON conspired with others to purchase and redistribute heroin.

CARSON’s criminal history includes numerous felony convictions, including two convictions for possession of narcotics, one conviction for sale of narcotics, and seven weapon convictions, including firearm offenses.  He was on state parole at the time of the heroin distribution offense.

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]

David B. Fein, United States Attorney for the District of Connecticut, announced that DERRICK BAILEY, also known as “Fry,” 44, of Hartford, was sentenced today by United States District Judge Janet C. Hall in New Haven to 105 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.

This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End.  As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.  The investigation revealed that BAILEY distributed crack cocaine to co-defendants who redistributed the drug to numerous street-level dealers, including gang members, in the area of Enfield Street in Hartford.

BAILEY’s criminal history includes multiple narcotics-related felony convictions, as well as a firearms conviction.

BAILEY has been detained since his arrest on May 9, 2012.  On January 2, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack cocaine”).

This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department and the Connecticut Department of Correction.  The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

David B. Fein, United States Attorney for the District of Connecticut, announced that PATRICK J. WEGNER, 36, of Bristol, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 11 months of imprisonment for violating the conditions of his supervised release that followed a 2007 conviction for possession of child pornography.

According to court documents and statements made in court, on June 20, 2007, Judge Burns sentenced WEGNER to 46 months of imprisonment, followed by five years of supervised release, for possessing child pornography.  WEGNER was released from the custody of the Bureau of Prisons in December 2009 and he began serving his term of supervised release.  As special conditions of his supervised release, WEGNER was required to register as a sex offender and not to associate with any child under the age of 18 except in the presence of a responsible adult who is aware of the nature of his offense and who has been approved by the United States Probation Office.

On March 11, 2013, the U.S. Probation Office learned that WEGNER was residing with a woman who was babysitting two children, at the children’s home, while the children’s parents were away on vacation.  The parents of the children were not aware that a registered sex offender was staying at their home, and WEGNER had not notified the U.S. Probation Office or the Connecticut State Police Sex Offender Registry of his new address.

Previously, on April 29, 2010, Judge Burns sentenced WEGNER to two months of imprisonment after he was found to have violated his supervised release by being in the presence of children without supervision on more than one occasion in February and March 2010, and by not being truthful when questioned by a U.S. Probation officer.

At the conclusion of today’s court proceeding, WEGNER was taken into the custody of the U.S. Marshals Service to begin serving his 11-month sentence.

This case was prosecuted by Assistant United States Attorney Edward Chang with the assistance of law student intern Lauren Biksacky.

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]

March 26, 2013

David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that LAURENTIU CRISTIAN BUSCA, 28, a citizen of Romania, was sentenced today by United States District Judge Janet C. Hall in New Haven to 60 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.

BUSCA 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 BUSCA was heavily involved in the phishing conspiracy between 2004 and 2006, and analysis of his email accounts revealed that BUSCA possessed more than 10,000 stolen debit or credit card account numbers.  In addition to trafficking the stolen information, BUSCA possessed and shared various tools used for phishing, including files used to create counterfeit Internet sites and software needed to produce counterfeit credit and debit cards.

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 seven-year 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 BUSCA.

The first three defendants to face charges were extradited from Bulgaria, Croatia and Canada.  Following the ratification in 2010 of an amended treaty on mutual legal assistance between Romania and the United States, BUSCA and six other defendants were extradited from Romania.  BUSCA was extradited in December 2011.

On November 20, 2012, BUSCA pleaded guilty to one count of conspiracy to commit access device fraud.  Eight of the other extradited defendants also have pleaded guilty, and one was convicted after trial in December 2012.  Nine defendants are still being sought.

This matter is being investigated by the Federal Bureau of Investigation in New Haven, Conn.

U.S. Attorney Fein 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 Attorneys Edward Chang and Sarala Nagala.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 26, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that ERIC GOMES, also known as “Goober Dust,” 46, of Hartford, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 92 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine in Hartford.

This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End.  As a result of the nine-month investigation, which included court-authorized wiretaps and controlled purchases of narcotics, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.

According to court documents and statements made in court, GOMES and others conspired to distribute crack cocaine in Hartford’s lower Vine Street area, as well as in other locations in Hartford and East Hartford.

GOMES’s criminal history includes 14 felony convictions.  On November 28, 2012, he pleaded guilty to one count of conspiracy to possess and distribute 28 grams or more of cocaine base (“crack cocaine”).

This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction.  The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 22, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that JOHN B. MAIA, 73, of Waterbury, pleaded guilty today before Chief United States District Judge Alvin W. Thompson in Hartford to one count of making a false statement to federal law enforcement agents investigating his filing of false tax returns.

According to court documents and statements made in court, on April 14, 2010, MAIA submitted to a voluntary interview with special agents of the Internal Revenue Service – Criminal Investigation who were conducting an investigation into whether MAIA had overstated deductions for charitable contributions and listed fictitious business expenses on his federal tax returns from 2005 through 2008.  During the interview, MAIA falsely stated that the charitable contributions and business expenses were legitimate and that he had provided supporting documentation for the charitable contributions and business expenses to his tax preparer.

Chief Judge Thompson has scheduled sentencing for June 18, 2013, at which time MAIA faces a maximum term of imprisonment of five years and a fine of up to $250,000.

This case is being investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant United States Attorneys Christopher Mattei and Eric Glover.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 21, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that PHILIP NEY, 62, of Northford, was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to 18 months of imprisonment, followed by one year of supervised release, for failing to pay taxes on more than $640,000 in income.

According to court documents and statements made in court, NEY owns and operates Empire Restoration Company in Northford, which provides residential and commercial roofing services, as well as snow plowing services.  From 2004 through 2008, part of the income derived from those services was deposited into NEY’s business checking account and part was deposited into his passbook savings accounts.  When preparing his federal tax returns for the 2004 to 2008 tax years, NEY’s tax return preparers asked him to report all of his business income.  However, NEY did not provide his tax preparers with information related to business income that he had deposited into three savings accounts.  For the 2004 through 2008 tax years, NEY failed to report on his tax returns a total of $640,581 in income that had been deposited into his savings accounts.

On November 26, 2012, NEY waived his right to indictment and pleaded guilty to one count of filing a false federal income tax return.  In pleading guilty, NEY admitted that on April 15, 2009, he signed and filed his 2008 U.S. Individual Income Tax Return, Form 1040, which falsely reported Schedule C gross business receipts of $529,934 and the amount of tax due of $28,544.  In fact, NEY’s actual gross business receipts for 2008 were $771,615 and he should have paid $107,377 in federal income tax.

As part of the resolution of this case, NEY has agreed to pay $192,671 in back taxes, plus penalties and interest, for the 2004 through 2008 tax years.

NEY was ordered to report to prison on June 3, 2013.

This matter was investigated by the Internal Revenue Service – Criminal Investigation and was prosecuted by Assistant United States Attorney Peter S. Jongbloed.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 20, 2013

David B. Fein, United States Attorney for the District of Connecticut announced that DANIEL MONTEIRO, 33, of Wolcott, pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to a federal conspiracy charge stemming from a scheme to direct illegal campaign contributions into the campaign of a candidate for the U.S. House of Representatives. 

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.

Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, Paul Rogers, who owned a RYO smoke shop with two locations in Waterbury, Harry Raymond “Ray” Soucy, David Moffa and others engaged in a scheme to direct conduit campaign contributions into the campaign of a candidate for the U.S. House of Representatives.  The candidate was also a member of the Connecticut General Assembly.  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 Rogers and other conspirators reimbursed them with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.

In November and December 2011, the conspirators made four $2,500 conduit contributions to the Campaign.  MONTEIRO, a Waterbury business owner, was aware of the purpose of the contributions and that the contributions were being made in the names of others.

On approximately January 31, 2012, the Campaign Committee submitted to the Federal Election Commission (“FEC”) a report of the Campaign Committee’s receipts and disbursements for the period October 1, 2011 through December 31, 2011.  The report falsely stated the source and amount of the four $2,500 contributions that were received and deposited by the Campaign Committee during that time period.

In the spring of 2012, the conspirators made additional illegal campaign contributions totaling $17,500.  MONTEIRO provided one check in exchange for $2,500 in cash, and two of MONTEIRO’s employees provided $2,500 checks in exchange for reimbursement.

MONTEIRO pleaded guilty to one count of conspiracy to make false statements to the FEC and to impede the FEC’s enforcement of federal campaign finance laws.  Judge Arterton has scheduled sentencing for June 12, 2013, at which time MONTEIRO faces a maximum term of imprisonment of five years and a fine of up to $250,000.

Rogers, Soucy and Moffa have also pleaded guilty to charges related to this scheme and await sentencing.

As to the four other individuals who have been charged as a result of this investigation, U.S. Attorney Fein stressed that an indictment is not evidence of guilt.  Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This matter is being investigated by the Federal Bureau of Investigation 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]

March 20, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that DERRICK BROCK, also known as “Easy,” 26, of New Haven, was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to 57 months of imprisonment, followed by three years of supervised release.  On November 6, 2012, BROCK pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).

According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force, the New Haven Police Department and the Connecticut State Police into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven.  During the investigation, BROCK, who was identified as a member of the Grape Street Crips, was intercepted over a court-authorized wiretap discussing the acquisition and distribution of crack cocaine with co-defendants in New Haven and Rhode Island.

BROCK was ordered not to associate with any of his co-defendants during his term of supervised release.

On April 9, 2012, a grand jury returned an indictment charging 18 individuals, including BROCK, with narcotics distribution offenses stemming from this investigation.  To date, nine of the defendants have pleaded guilty.  The other nine defendants are detained while awaiting trial.

With respect to the defendants awaiting trial, U.S. Attorney Fein stressed that an indictment is not evidence of guilt.  Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This case was being investigated by the FBI’s New Haven Safe Streets Task Force, which includes officers from the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction.  The investigation was significantly assisted by the Connecticut State Police, the United States Marshals Service and the Westerly (R.I.) Police Department.

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 case is being prosecuted by Assistant United States Attorneys Anthony E. Kaplan and H. Gordon Hall.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 20, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that TASHIANY MARTIN, 38, was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to two years and one day of imprisonment.  On December 20, 2012, a jury found MARTIN guilty of one count of making false statements in a passport application and one count of aggravated identity theft.

According to the evidence introduced during the trial, in 2002, MARTIN, a citizen of Jamaica, obtained a New York driver’s license and a New York birth certificate by using the name of a former friend.  In 2008, MARTIN used those documents to apply for a United States passport at the Connecticut Passport Agency in Norwalk.

The evidence at trial further revealed that MARTIN also used her friend’s identity in 2002 when she successfully applied for and obtained a U.S. passport and, in 2003, when she successfully applied for and obtained a job as a licensed practical nurse at a Rochester, N.Y. nursing home.  MARTIN’s friend was a licensed practical nurse, but MARTIN was not.

MARTIN has been detained since her arrest on January 17, 2012.  She faces deportation proceedings after she serves her prison term.

This matter was investigated by the United States Department of State, Bureau of Diplomatic Security. The case was prosecuted by Assistant United States Attorneys Henry Kopel and Ray Miller.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 19, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that EDWARD PREZIOSO, also known as “Wu Loc,” 25, of Westerly, R.I., was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to 18 months of imprisonment, followed by one year of supervised release.  On December 14, 2012, PREZIOSO pleaded guilty to one count of using a telephone to facilitate a narcotics felony.

According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force, the New Haven Police Department and the Connecticut State Police into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven.

On February 6, 2012, PREZIOSO was intercepted over a court-authorized wiretap discussing the acquisition and distribution of crack cocaine with a co-defendant in New Haven.

On April 9, 2012, a grand jury returned an indictment charging 18 individuals, including PREZIOSO, with narcotics distribution offenses stemming from this investigation.  To date, nine of the defendants have pleaded guilty.  The other nine defendants are detained while awaiting trial.

With respect to the defendants awaiting trial, U.S. Attorney Fein stressed that an indictment is not evidence of guilt.  Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This case was being investigated by the FBI’s New Haven Safe Streets Task Force, which includes officers from the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction.  The investigation was significantly assisted by the Connecticut State Police, the United States Marshals Service and the Westerly (R.I.) Police Department.

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 case is being prosecuted by Assistant United States Attorneys Anthony Kaplan and Gordon Hall.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 19, 2013

David B. Fein, 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 DAVID CSANADI, 36, of Newtown, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 240 months of imprisonment, followed by 15 years of supervised release, for producing child pornography.

According to court documents and statements made in court, in 2006 and 2007, CSANADI sexually abused three female children, videotaped the abuse and maintained the tapes at his home in Newtown.  All three children were prepubescent minors under the age of 12 at the time of the abuse.  One child was approximately 18 months old at the time of the abuse.

In addition to filming and maintaining video tapes of the sexual abuse that he inflicted on female children, CSANADI downloaded from the Internet and obtained other images and videos of child pornography on his home computer.

“Working with the FBI, the Connecticut Child Exploitation Task Force and our other law enforcement partners, the U.S. Attorney’s Office is committed to protecting children from sexual exploitation and removing sexual predators from the community,” stated U.S. Attorney Fein.  “I commend the Newtown and Monroe Police Departments for their investigative efforts, and the Danbury State’s Attorney’s Office for the critical assistance it has provided to the investigation and prosecution of this heinous but important case.”

“The sexual abuse of children and production of child pornography are detestable crimes, and the harsh reality of it all is that those who commit these unspeakable crimes live and work among us,” stated Special Agent in Charge Mertz.  “The Connecticut Child Exploitation Task Force’s devotion to identifying those who commit these monstrous crimes and to bringing them to justice remains, and always will remain, resolute.”

CSANADI has been detained since April 15, 2011, when he was arrested and charged with multiple state child sexual exploitation offenses.

On November 2, 2012, CSANADI pleaded guilty in federal court to one count of production of child pornography.  In January 2013, he pleaded guilty in state court to the charges of sexual assault in first degree, illegal sexual contact with a minor and possession of child pornography.  CSANADI is scheduled to be sentenced in state court next month.

This matter was investigated by the Federal Bureau of Investigation, Connecticut Child Exploitation Task Force, and the Newtown and Monroe Police Departments.  The case was prosecuted by Assistant United States Attorneys Neeraj Patel and Krishna 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]

March 19, 2013

David B. Fein, United States Attorney for the District of Connecticut, today announced that The Learning Clinic, a private school in Brooklyn, Conn., has agreed to pay $35,000 as compensation to a family for denying a child access to the school with his service animal.  The school also has agreed to train its employees and adopt new policies to ensure compliance with the provisions of the Americans with Disabilities Act (ADA).

The Learning Clinic is a private school in Brooklyn that offers educational and clinical services through residential boarding and day school programs.  The settlement resolves a Department of Justice investigation into the school’s service animal policies and practices under the ADA and the Fair Housing Act (FHA).  The Department of Justice initiated this investigation after the parents of a minor child attending the school alleged that the school discriminated against their child on the basis of disability by denying the child equal access to the school’s campus with his service dog.  The school failed to provide reasonable modifications to permit the child to attend school accompanied by his service dog and to live with his service dog in his room on TLC’s campus.

Under Title III of the ADA, schools are places of public accommodation and must reasonably modify policies, practices, and procedures, to allow children with disabilities equal access to education, school services, and school facilities.  In addition, the FHA prohibits discrimination in school housing based on race, color, religion, national origin, sex, disability, and familial status.

This matter was handled by Assistant United States Attorney Ndidi Moses of the District of Connecticut, with the assistance of the Disability Rights and Housing Sections of the U.S. Department of Justice Civil Rights Division.

Individuals who believe that they may have been victims of discrimination can file a complaint with the U.S. Attorney’s Office by calling 203-821-3700.  Additional information about the ADA can be found at www.ada.gov, or by calling the Department’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD).

Complaints about housing discrimination can also be made by phone to the Housing Discrimination Tip Line at 1-800-896-7743 or by email at [email protected].

More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 18, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that DOUGLAS CARTELLI, also known as “Douglas Martin,” 42, of Killingworth, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 40 months of imprisonment, followed by three years of supervised release, for engaging in an extensive tax evasion scheme.

According to court documents and statements made in court, since 1992, CARTELLI has owned and operated several Connecticut-based concrete companies including DMC Concrete Corp., Commercial Concrete Construction LLC, Commercial Concrete NE LLC and Commercial High Rise Concrete LLC.  As part of a scheme to avoid withholding and paying employee taxes, CARTELLI routinely characterized his employees as “independent contractors.”  After the U.S. Department of Labor and Internal Revenue Service began an investigation of DMC Concrete, CARTELLI continued to misclassify employees as independent contractors and took steps to make it more difficult for the Department of Labor and the IRS to monitor his companies’ payroll.  CARTELLI used a convenience store in Middletown that provided him with cash so he, in turn, could pay his employees in cash, and the store owner was reimbursed by checks from CARTELLI’s business checking accounts.  Between July 2004 and February 2008, the store owner received checks from CARTELLI totaling more than $1.15 million.

CARTELLI also convinced the owner of a Middletown liquor store to cash payroll checks for his employees.  Each Friday from July 2005 to March 2006, Commercial Concrete NE wired payroll funds into the store’s business checking account.  CARTELLI’s employees would go to the store, provide their payroll checks to the store owner and receive cash.  The store owner would then return the payroll checks to CARTELLI.  During this time period, the store owner withdrew more than $1.266 million in cash that CARTELLI had wired to the liquor store’s bank account.

Over the course of several years, CARTELLI attempted to thwart investigators and evade paying taxes and penalties by twice changing the name of his business and falsely representing to the IRS that he no longer owned the businesses, by writing business checks to his wife or to cash, and by using business checks to pay for numerous personal expenses, including credit card bills, personal real estate taxes and high-end renovations of his home.

The IRS has determined that CARTELLI’s under-reporting of employee wages and payroll taxes, his failure to withhold employment taxes and his failure to pay penalties related to this conduct has resulted in loss to the IRS of more than $3.45 million.

CARTELLI also failed to file personal income tax returns for the 2004 through 2007 tax years, during which he had total taxable income of approximately $959,936.25, resulting in loss to the IRS of $275,275.

Judge Thompson ordered CARTELLI to cooperate with the IRS to resolve his outstanding tax liability.

On March 21, 2011, CARTELLI waived his right to indictment and pleaded guilty to three counts of tax evasion.

This matter was investigated by the U.S. Department of Labor, Office of Inspector General, and the Internal Revenue Service – Criminal Investigation.  The case was prosecuted by Assistant United States Attorneys Christopher W. Schmeisser and Sarah P. Karwan.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 18, 2013

David B. Fein, 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, today announced that PAUL E. BRENNAN III, 44, formerly of Old Saybrook, has been charged by criminal complaint with bank fraud.  BRENNAN, who is currently detained in state custody, appeared on March 15 before United States Magistrate Judge Joan G. Margolis in New Haven.

As alleged in the criminal complaint, from at least 2009 until at least 2011, BRENNAN engaged in a check fraud scheme through which he defrauded and attempted to defraud numerous financial institutions.  During the course of the scheme, BRENNAN convinced individuals to cash checks for him using their bank accounts even though he knew that the checks were drawn on closed accounts or accounts with a zero balance and would be returned for nonpayment.  BRENNAN also passed fraudulent checks at several check cashing businesses in Connecticut.

The charge of bank fraud carries a maximum term of imprisonment of 30 years.

U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt.  The defendant is entitled to have this matter presented to a grand jury and, in the event an indictment is returned, he is entitled to a trial at which it will be the Government’s burden to prove guilt beyond a reasonable doubt.

Citizens with information that may be helpful to the investigation are encouraged to contact FBI Special Agent Daniel S. Harkness at (860) 439-6107.

This matter is being investigated by the Federal Bureau of Investigation with assistance from the Old Saybrook Police Department.  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]

March 18, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that MEHMET AYDIN, 42, a citizen of Turkey last residing in Miller Place, N.Y., was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 59 months of imprisonment for his participation in an ATM skimming scheme across southern New England.

According to court documents and statements made in court, between February 2011 and July 2011, AYDIN, Ahmet Cilek, Gabriella Graham and others conspired to install “skimming” devices on automated teller machines (“ATMs”) at 11 banks and one credit union in Connecticut, Massachusetts and Rhode Island.  The devices were able to capture the information  encoded on the magnetic strips of bank cards used by ATM customers.  The co-conspirators also placed devices on the ATMs that contained hidden pinhole cameras, which recorded the personal identification numbers that bank customers keyed into the ATMs to gain access to their accounts.  The co-conspirators used the stolen information captured by the skimming devices and pinhole cameras to create counterfeit bank cards that allowed them to withdraw funds from the customers’ accounts.

As a result of this scheme, approximately 500 bank accounts were victimized and financial institutions have suffered losses of approximately $336,057.64.  As part of his sentence, AYDIN was ordered to make full restitution, jointly and severally with his co-defendants.

AYDIN has been detained since his arrest on November 2, 2011.  On April 12, 2012, he pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft.

Cilek and Graham also pleaded guilty.  On June 14, 2012, Graham was sentenced to 45 months of imprisonment.  Cilek awaits sentencing.

This investigation has been conducted by the Connecticut Financial Crimes Task Force, which includes members of the United States Secret Service, United States Postal Inspection Service, United States Department of State, Bureau of Diplomatic Security, Internal Revenue Service – Criminal Investigation, Connecticut State Police, and the Greenwich, Hartford, Stamford, Shelton and Stratford Police Departments.  U.S. Attorney Fein specifically recognized the efforts of the Greenwich Police Department, Darien Police Department, U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security, and U.S. Secret Service in Boston and Providence for their assistance in the investigation and prosecution of this matter.

This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 15, 2013

David B. Fein, 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, and Hartford Police Chief James C. Rovella today announced that a federal grand jury sitting in Hartford returned an indictment yesterday charging KERONN MILLER, also known as “Fresh,” 22, of Hartford, with the 2010 murder of Ian Francis of Hartford.

According to court documents and statements made in court, on December 21, 2010, Ian Francis was shot multiple times while sitting in his vehicle on Sigourney Street in Hartford.  Francis succumbed to his injuries on January 15, 2011.

The indictment alleges that MILLER and others, known and unknown to the grand jury, murdered Francis with the intent to prevent the attendance of appearance of a person at a federal proceeding and to prevent Francis and another person from communicating with a federal law enforcement officer or judge about the commission or possible commission of a federal crime, namely, narcotics trafficking.

The indictment further alleges that MILLER conspired with others, known and unknown to the grand jury, to commit this offense.

The charges of witness tampering murder and conspiracy to commit witness tampering murder carry a mandatory lifetime term of imprisonment or death, should the government seek the death penalty in this matter.

MILLER was arrested on a federal arrest warrant on November 7, 2012.  He has been detained since his arrest.

This indictment followed a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes and Gang Task Force and the Hartford Police Department’s Major Crimes Division.

U.S. Attorney Fein stressed that an indictment is not evidence of guilt.  Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This case is being prosecuted by Assistant United States Attorney Brian P. Leaming.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 14, 2013

The United States Attorney for the District of Connecticut announced that three men involved in illegal gambling businesses pleaded guilty yesterday before United States District Judge Vanessa L. Bryant in Hartford.  THOMAS UVA IV, also known as “Little T,” 32, of Stamford, pleaded guilty to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO) and one count of money laundering, JOHN LIQUORI, 43, of North Haven, pleaded guilty to one count of RICO conspiracy, and JOHN COLELLO, 54, of Stamford, pleaded guilty to one count of operating an illegal gambling business.

According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, UVA, LIQUORI, COLELLO and 17 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs in Stamford and Hamden.  UVA and LIQUORI are alleged associates of the Gambino organized crime family.

The investigation, which included the use of court-authorized wiretaps, revealed that UVA, LIQUORI, COLELLO and others were 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.  In addition, UVA and others operated a card gambling club at 514 Glenbrook Road in Stamford, and LIQUORI and others operated a card gambling club at 2965 State Street in Hamden. Certain other co-conspirators also operated a gambling club at 859 East Main Street in Stamford.

FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.

UVA, LIQUORI and COLELLO are each scheduled to be sentenced on June 3, 2013.  UVA faces a maximum term of imprisonment of 40 years, LIQUORI faces a maximum term of imprisonment of 20 years and COLELLO faces a maximum term of imprisonment of five years.

Five other defendants have pleaded guilty to charges stemming from this investigation.  As to defendants who are awaiting trial, 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 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]

March 14, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that DARRIN FOSTER, 46, formerly of the Bronx, N.Y., was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 41 months of imprisonment, followed by three years of supervised release, for embezzling more than $1 million from his Connecticut employer.

According to court documents and statements made in court, FOSTER worked as the Chief Financial Officer for a hedge fund based in Westport.  As CFO, FOSTER had access to his employer’s bank accounts, was authorized to make business-related charges on the corporate American Express card and was entrusted to pay the American Express bill.  From approximately September 2004 to July 2010, FOSTER made thousands of unauthorized charges for personal expenses on his employer’s American Express account.  He then arranged for telephonic payments of his unauthorized charges to be made from the hedge fund’s bank accounts.

Through this scheme, FOSTER made a total of $1,093,856.20 in unauthorized personal charges.

FOSTER was arrested by the New York State Police in Yonkers on May 27, 2012.  On October 16, 2012, he pleaded guilty to one count of wire fraud.

This matter was investigated by the United States Secret Service and was prosecuted by Assistant United States Attorney Susan Wines.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 14, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that RICHARD ECCLESTON STEPHENS, 38, a citizen of Jamaica last residing in New Britain, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 18 months of imprisonment for illegally reentering the United States after he was deported.

According to court documents and statements made in court, STEPHENS was deported from the U.S. to his native Jamaica in April 2001 after he was convicted in Connecticut state court for selling narcotics.  He illegally reentered the U.S. and, in June 2004, was arrested in Hartford for interfering/resisting arrest.  At the time of his arrest he provided several false names to law enforcement.  STEPHENS’ true identity was subsequently determined and he was deported to Jamaica in October 2004.

STEPHENS again illegally reentered the U.S.  On September 5, 2012, he was arrested by the Wethersfield Police Department and charged with multiple narcotics offenses and motor vehicle violations.  On that date, he also provided law enforcement with false identifying information.

STEPHENS has been detained since his arrest by U.S. Immigration and Customs Enforcement on September 6, 2012.  On December 18, 2012, 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.  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]

March 13, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that ALAN EMMETT BRADLEY, 57, of Norwalk, Conn., and Ocoee, Fla., pleaded guilty today before United States District Judge Vanessa L. Bryant in Hartford to one count of health care fraud.

According to court documents and statements made in court, BRADLEY, a certified alcohol and drug abuse counselor, obtained the Medicaid identification numbers of various Medicaid clients and used the identification numbers to submit hundreds of claims to Connecticut’s Department of Social Services.  The claims alleged that BRADLEY performed 75 to 80-minute individual psychotherapy sessions to these Medicaid clients at his office in Norwalk.  Hundreds of these counseling sessions did not occur and, for many of them, BRADLEY was actually living and attending school in Florida.

The Connecticut Medicaid program is a joint federal-state program designed primarily to finance the provision of medical services to the indigent.  It is administered in Connecticut by the Department of Social Services, and is also supervised by the federal Centers for Medicare and Medicaid Service.

Through this scheme, BRADLEY defrauded the Connecticut Medicaid program of $151,898.75.

BRADLEY was arrested in Florida on May 17, 2012.  He has been detained since November 29, 2012, after he was found to have violated certain conditions of his pretrial release.

Judge Bryant has scheduled sentencing for June 5, 2013, at which time BRADLEY faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.

This matter is being investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation.  The case is being prosecuted by Special Assistant United States Attorney Michael Ahearn, Assistant United States Attorney David Sheldon and Auditor Kevin Saunders.

U.S. Attorney Fein 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]

March 13, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that CARL HAILEY, also known as “Squirt,” 48, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 30 months of imprisonment, followed by five years of supervised release, for distributing heroin.

HAILEY is one of 108 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 HAILEY conspired with others to purchase and redistribute heroin.

HAILEY was on state special parole at the time of this offense, and he has been detained in state custody since February 14, 2012, for violating his parole.  His maximum release date from state custody is January 22, 2014.

Judge Burns ordered HAILEY to begin serving his 30-month federal sentence after his release from state custody. 

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 invaluable 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]

March 12, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that THOMAS THORNDIKE, 62, a Woodbury-based tax preparer, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 72 months of imprisonment, followed by one year of supervised release, for engaging in tax fraud over the course of several years.

According to court documents and statements made in court, THORNDIKE was the founder and owner of Cornerstone Financial Services of Woodbury, LLC (“CFS”), a tax preparation and financial services business.  As the owner of CFS, THORNDIKE prepared federal tax returns for individuals and businesses in exchange for payment of a fee.  In the course of preparing many of his clients’ tax returns, THORNDIKE improperly reduced the amount of tax due in a variety of ways, including falsely claiming deductions for charitable contributions, and falsely claiming deductions for job expenses.

THORNDIKE also offered clients an opportunity to purchase audit insurance.  Purchasers of audit insurance could elect to be represented by THORNDIKE in connection with any Internal Revenue Service audit of their individual federal income tax returns.  If clients were audited by the IRS, THORNDIKE would provide them with blank Goodwill receipts as well as instructions as to how they should create a list of charitable donations that would correspond with the donation value THORNDIKE had entered on their returns.  He also would direct his clients to create mileage logs that would support deductions he had entered for employment-related travel.

In addition, THORNDIKE prepared tax returns for his two sons that improperly identified cash payments from him to his children as wages.  He also claimed hundreds of thousands of dollars in improper business deductions, including, but not limited to, wage expenses for his children, which actually were personal payments to them; more than $8,000 in personal carpentry work; and a $27,983 “sale of business property” loss stemming from THORNDIKE’s selling of an engagement ring after his marriage engagement had broken off.

In December 2008, the IRS notified THORNDIKE that he was the subject of an IRS audit examining his preparation of tax returns for the tax years 2006 and 2007.  In connection with the audit, THORNDIKE assisted in the preparation of, and then submitted to the IRS, falsified documents to support the false deductions claimed on tax returns that were subject to the audit.

The IRS has estimated that THORNDIKE’s clients received in excess of $1 million in tax refunds to which they were not entitled.

Judge Thompson ordered THORNDIKE to pay $64,026.69 in back taxes, penalties and interest for tax losses related to his own fraudulent returns.  THORNDIKE’s clients are required to resolve their own tax liability with the IRS. 

This case has been investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant United States Attorneys Christopher Mattei and Eric Glover.    

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 11, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced PAUL D’AMBROSIO, 49, of Waterbury, waived his right to indictment and 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 August 8, 2012, a Hartford Police detective assigned to the Connecticut Child Exploitation Task Force logged into a publicly available Internet file sharing program and downloaded approximately 50 images and 10 videos of child pornography from shared directories maintained by D’AMBROSIO.  On August 30, 2012, Task Force agents searched D’AMBROSIO’s residence and seized a laptop computer and related components.  A forensic search of the computer revealed more than 600 images and videos of child pornography, including images of children under the age of 12 engaged in sexually explicit conduct and images of children engaging in sadistic or masochistic conduct.

Judge Arterton has scheduled sentencing for June 3, 2013, at which time D’AMBROSIO faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.

D’AMBROSIO has been released on bond under electronic monitoring by the United States Probation Office since his arrest on August 30, 2012.

This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies, including the Hartford Police Department.  The Waterbury Police Department also assisted the investigation.  The case is being prosecuted by Assistant United States Attorney Sarala V. Nagala.

The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies.  For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.

This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

To report cases of child exploitation, please visit www.cybertipline.com.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 11, 2013

On Friday, March 8, the United States Attorney’s Office for the District of Connecticut hosted its annual United States Attorney’s Office Law Enforcement Awards Ceremony.  The ceremony at the City of New Haven’s aldermanic chambers recognized more than 170 individuals for their investigative efforts in more than two dozen significant federal criminal prosecutions and civil cases in Connecticut over the past year.  The cases demonstrate the broad variety of work performed by local, state and federal law enforcement agencies in Connecticut.  Several unit awards and special awards were also presented during the ceremony.

“The cases and individuals recognized are but a sampling of the wide variety of excellent work that has been done by law enforcement in Connecticut,” stated U.S. Attorney Fein.  “I congratulate our award recipients, each of whom has served the District and our Nation with distinction and integrity.  Their dedication to the cause of justice makes Connecticut a better and safer place to live.”

More than 50 of the award recipients are members of local police departments from across Connecticut.
The Civil Division Unit Award was presented to Andrew Freeman, who recently retired as Deputy Managing Counsel of the U.S. Postal Service’s Northeast Area Law Office.  Special Agent John Keaney of the U.S. Department of Housing and Urban Development, Office of Inspector General, received the Financial Fraud and Public Corruption Unit award for his expertise during several mortgage fraud investigations.  FBI Supervisory Special Agent Jon S. Hosney received the National Security and Major Crimes Unit Award for his supervision of the FBI’s Joint Terrorism Task Force, and the Violent Crimes and Narcotics Unit Award was presented to a team of individuals who have been instrumental in coordinating “Project Longevity,” a statewide anti-violence initiative that was launched in New Haven in 2012.  Award recipients include Assistant Chief Achilles Generoso and Sergeant Al Vasquez of the New Haven Police Department, Connecticut Parole officers Frank Viera and Levonne Perez Sutton, and Connecticut Probation Officers Brian Coco and Leonard Jahad.

U.S. Attorney Fein also presented three special awards during the ceremony.  Stamford Police Sergeant Richard Gasparino, who was shot and seriously wounded during a drug investigation in December 2010, received the U.S. Attorney’s Medal of Valor; FBI Special Agent James J. Wines, who coordinates the Connecticut Child Exploitation Task Force, received the U.S. Attorney’s Award for Outstanding Investigator, and the U.S. Marshals Service in Connecticut received the U.S. Attorney Award for Outstanding Partnership.

The United States Attorney’s Office is charged with enforcing federal criminal laws in Connecticut, and with representing the federal government in civil litigation in the District.  The District is composed of more than 60 Assistant United States Attorneys and approximately 55 staff members at offices in New Haven, Hartford and Bridgeport.  Please visit www.justice.gov/usao/ct for more information.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 11, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that NIDA WILLIAMS, also known as “N-Dog,” 35, of Bloomfield, was sentenced today by United States District Judge Janet C. Hall in New Haven to 108 months of imprisonment, followed by five years of supervised release, for his role in a Hartford crack cocaine distribution ring.

This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End.  As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.

According to court documents and statements made in court, the investigation revealed that Clinton Hill Weston, also known as “Ack,” supplied WILLIAMS and Dana Adams, also known as “Soul,” with 125-gram and 63-gram quantities of crack cocaine.  WILLIAMS and Adams then distributed the crack to numerous street-level dealers, including gang members, who primarily distributed the drug in the area of Enfield Street in Hartford.

WILLIAMS was arrested on April 19, 2012.  A subsequent search of his Bloomfield residence revealed more than 29 grams of crack cocaine and 14 rounds of ammunition.

WILLIAMS has been detained since his arrest.  On December 17, 2012, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack cocaine”).

Weston and Adams also pleaded guilty and are currently serving prison terms of 152 months and 156 months, respectively.

This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department and the Connecticut Department of Correction. 

The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 7, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that JAYQUAN FANIEL, 28, of Hartford, was sentenced today by United States District Judge Janet C. Hall in New Haven to 126 months of imprisonment, followed by eight years of supervised release, for distributing crack cocaine and for violating the conditions of his supervised release from a previous federal conviction.

This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End.  As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.

According to court documents and statements made in court, on April 23, 2012, an individual working with law enforcement purchased approximately 3.5 grams of crack cocaine from FANIEL at FANIEL’s Garden Street residence.  On April 27, 2012, investigators conducted a court-authorized search of the residence and recovered approximately 148 grams of crack cocaine, a digital scale, $1889 in cash and a loaded 9mm semi-automatic pistol.

FANIEL has been detained since his arrest on April 27, 2012.  On October 9, 2012, he pleaded guilty to one count of possession with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).

FANIEL’s criminal history includes a federal conviction in 2005 related to his distribution of crack cocaine in Hartford for which he received a 60-month sentence.  He was released from prison in 2009 and was serving a term of supervised release at the time of this most recent offense.

Judge Hall sentenced FANIEL to 120 months for distributing crack cocaine, and a consecutive six-month sentence for violating the conditions of his supervised release.

This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction.  The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 6, 2013

David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal jury in Bridgeport has found MATTHEW WALLACE, 31, of Westerly, R.I., formerly of Ledyard, guilty of one count of receiving child pornography and one count of possessing child pornography.  The trial before Senior U.S. District Judge Warren W. Eginton began on March 4 and the jury returned its verdict this afternoon after deliberating for approximately two hours.

According to the evidence disclosed during the trial, on January 19, 2010, a Milford Police detective assigned to the Connecticut Child Exploitation Task Force logged into a peer-to-peer Internet file sharing network and downloaded several images of child pornography from an Internet Protocol (“IP”) address assigned to WALLACE at his Ledyard residence.  On May 28, 2010, law enforcement agents conducted a court-authorized search of WALLACE’s residence and seized computers and hard drives.  Forensic examination of the seized items revealed more than 500 images and videos of children engaged in sexually explicit conduct.

Judge Eginton has scheduled sentencing for May 29, 2013, at which time WALLACE faced a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.

WALLACE has been released on a $100,000 bond since his arrest on December 16, 2010.  Following today’s verdict, Judge Eginton ordered WALLACE to be confined to his home.  A hearing has been scheduled for March 13, 2013, to determine if WALLACE will be allowed to remain released on bond, or if he will be detained until his sentencing.

This matter has been investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies, including the Milford Police Department.  The Connecticut State Police and the Ledyard Police Department have provided valuable assistance to the investigation.  The case is being prosecuted by Assistant United States Attorneys Ray Miller and Neeraj 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]

March 6, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that OSCAR CUAPIO-RODRIGUEZ, also known as Oscar Zuapio-Rodriguez and Pedro Cuapio-Rodriguez, 39, a citizen of Mexico last residing in Clinton, was sentenced today by United States District Judge Janet C. Hall in New Haven to approximately three months of imprisonment, time already served, for illegally reentering the United States after he was deported.

According to court documents and statements made in court, CUAPIO-RODRIGUEZ was deported from the U.S. to his native Mexico in 1998 and again in 2005.  In 2006, he illegally reentered the U.S without first obtaining the consent of the Attorney General of the United States or his successor, the Secretary for the Department of Homeland Security, to reapply for admission into the U.S.

CUAPIO-RODRIGUEZ has been detained since November 4, 2012, when he was arrested in Clinton and charged with theft of a credit card.  He was transferred into federal custody on November 26, 2012.

On January 29, 2013, CUAPIO-RODRIGUEZ 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.  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]

March 4, 2013

David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, today announced that three individuals who had been on trial in Hartford federal court have pleaded guilty to various offenses stemming from two separate investment schemes.

On February 25, ROBERT RIVERNIDER, 47, of Wellington, Fla., pleaded guilty to two counts of conspiracy and 16 counts of wire fraud, and his sister, LORETTA SENECA, 50, of Boynton Beach, Fla., pleaded guilty to one count of conspiracy and one count of wire fraud.  On March 1, ROBERT PONTE, 59, of Stonington, Conn., pleaded guilty to two counts of conspiracy, 14 counts of wire fraud and two counts of tax evasion.  The trial before United States District Judge Robert N. Chatigny began on February 7.

“As the overwhelming evidence in this trial revealed, Rivernider and Ponte recruited individuals to invest their money by making false promises of guaranteed, high returns,” stated U.S. Attorney Fein.  “Their investment program was nothing more than a Ponzi scheme, which left several investors in financial ruin.  With the assistance of Ms. Seneca, these defendants also engaged in a real estate investment scheme that defrauded more individuals, as well as lending institutions.  The U.S. Attorney’s Office is committed to working with the FBI, IRS-CI and our other law enforcement partners to root out financial schemes to protect the investing public.”

“The FBI conducted an extensive investigation into the various conspiracies orchestrated by the three defendants, conspiracies designed with no goal other than to enrich themselves at the expense of other individuals and banks alike,” stated FBI Special Agent in Charge Mertz.  “Cases like this are only successful with the teamwork of our federal partners.  The IRS was instrumental to this investigation, as was the United States Attorney’s Office, which was exceptional in presenting a case at trial that resulted in three guilty pleas before even concluding its case.”

According to court documents and the evidence disclosed during the trial, between approximately June 2005 and April 2008, RIVERNIDER and PONTE conspired to defraud several victim investors by misrepresenting that the investors’ monies would be invested in legitimate, high-return investments.  As part of the conspiracy, RIVERNIDER and PONTE used the Internet and other means to market a debt payment program typically called “No More Bills” through The Hudson Group, an entity that PONTE established.  With the “No More Bills” program, RIVERNIDER and PONTE sought victim investors to invest monies with them, funds that the victim investors typically would raise through home equity lines of credit, or would borrow from 401K plans.

RIVERNIDER and PONTE materially misrepresented that investors would receive a substantial investment return, typically a monthly repayment on the invested  monies of approximately seven to ten percent of their initial investment; that the returns would continue for a period substantially longer than needed to recoup the initial investment and result in a return substantially greater than the initial investment; that the victim investors’ existing debts and  home equity lines of credit, if taken out to fund the investment, would be repaid in full from investment returns, and that the victim investors’ monies were being invested offshore in legitimate high-return investments, including investments in foreign currency exchanges, hedge funds, or other high-yield ventures.  Instead of investing the funds as promised, RIVERNIDER and PONTE used the funds to pay their and their extended families’ living expenses, as well as the preexisting debts of other investors.

Through this first scheme, investors lost at least $3 million.

In a second scheme, between approximately November 2006 and December 2007, RIVERNIDER, PONTE, and SENECA engaged in a real estate investment conspiracy that defrauded both lenders and individuals they recruited.  As part of the scheme, RIVERNIDER, PONTE, and others recruited victim borrowers to take out financing to purchase various investment properties, primarily in Tennessee and Florida, with financing from victim lenders.  RIVERNIDER and PONTE typically represented to borrowers that these properties would be passive investments and that PONTE and RIVERNIDER would be responsible for the details of the purchase, rental, maintenance and payment of the mortgages on the properties.  The co-conspirators made false representations to the victim borrowers that RIVERNIDER and PONTE would arrange for the purchase of the properties by the borrowers at markedly discounted values.  In fact, RIVERNIDER and PONTE frequently marked up the purchase price of the properties to the victim borrowers, often by as much as 25 percent, without disclosing the increase in the purchase price.  RIVERNIDER, PONTE and others also falsely represented that the investment properties would return to the victim borrowers sufficient monies to cover the carrying costs, as well as reduce the borrowers’ other debt burden.

RIVERNIDER, PONTE, SENECA and others victimized lenders by making multiple false representations in loan applications and other documents provided to the victim lenders.  SENECA, a trained mortgage broker, was actively involved in the real estate transactions, including organizing and gathering many of the materials needed by the victim lenders, gathering certain information from the victim borrowers, providing certain comparables based on properties brokered by RIVERNIDER to be used for purportedly independent appraisals, and a range of other background tasks necessary for the lenders to make the loans.

This scheme involved at least 100 properties, and the investigation has revealed that the victim lending institutions have suffered nearly $20 million in losses.

When they are sentenced, RIVERNIDER and PONTE face a maximum term of imprisonment of 20 years for conspiring on the first investment fraud scheme, and RIVERNIDER, PONTE and SENECA face a maximum term of imprisonment of 30 years for conspiring on the real estate investment scheme.  The wire fraud charges also carry maximum terms of imprisonment of 20 or 30 years.  In addition, the tax evasion counts against PONTE carry a maximum term of imprisonment of five years on each count.

This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.  The case is being prosecuted by Assistant United States Attorneys John H. Durham and Christopher W. Schmeisser.

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 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]

March 4, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that BRUCE DAMICO, 35, formerly residing in Hartford, Providence, R.I., and Queens, N.Y., pleaded guilty today before United States District Judge Stefan R. Underhill in Bridgeport to one count of sex trafficking of a minor.

“The federal penalties for the sex trafficking of minors are appropriately severe, and the U.S. Attorney’s Office and our law enforcement partners are committed to prosecuting these crimes and seeking lengthy sentences,” stated U.S. Attorney Fein.  I commend the FBI and Bloomfield Police for the coordinated effort that has brought this defendant to justice.”

According to court documents and statements made in court, DAMICO recruited, harbored and transported women and girls to engage in prostitution.  As a part of his prostitution business, DAMICO posted Internet advertisements offering the women and girls for commercial sex acts, and DAMICO was paid by each woman and girl $100 per day for maintaining the advertisements.  DAMICO booked hotel rooms where the women and girls would engage in commercial sex acts, and he transported, or arranged the transportation of, the women and girls to prostitution appointments.

In pleading guilty, DAMICO admitted that between June 2009 and January 2010, his prostitution enterprise knowingly employed a girl who was under the age of 18.  DAMICO posted pictures of the minor victim on the Internet to advertise her prostitution services, and he and others working for him transported the minor victim between Connecticut and surrounding states to engage in prostitution.

Judge Underhill has scheduled sentencing for May 24, 2013, at which time DAMICO faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.

DAMICO has been detained since his arrest by the Bloomfield Police on January 22, 2010.

This matter is being investigated by the Federal Bureau of Investigation and the Bloomfield Police Department.  The case is being prosecuted by Assistant United States Attorney David E. Novick.

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]

March 1, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that MAUREEN CLARK, 58, of Stonington, was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to 87 months of imprisonment, followed by three years of supervised release, for her role in an investment fraud scheme that defrauded several individuals out of more than $1.7 million.  On July 12, 2012, a jury found CLARK guilty of multiple conspiracy, wire fraud and money laundering offenses related stemming from the scheme.

“This defendant engaged in a four-year investment fraud and money laundering scheme,” stated U.S. Attorney Fein.  “She told numerous lies to defraud investors of more than $1.7 million, and then used the stolen funds for her own purposes.  The U.S. Attorney’s Office and our partners at the FBI are committed to prosecuting fraudsters who prey on the investing public.”

According to the evidence at trial, CLARK and her co-conspirator, Christopher Plummer, holding themselves out as “Authorized Members” of New England Resorts, LLC, falsely represented to investors and potential investors that they owned and/or controlled hundreds of acres of land in Lakeshore, Miss., a portion of which purportedly was zoned for casinos and residential properties.  CLARK falsely represented to the investors that she and Plummer would be building a resort community with two million square feet of casino gaming, hotels, condominiums, and a medical facility.  They also falsely represented that the partners of the company had invested several hundred million dollars of their own funds in buying land and options on land in and around the town of Lakeshore.

In soliciting funds for the “Lakeshore Development Project,” CLARK and Plummer sent e-mails and attachments to victim investors that falsely represented that major Wall Street investment firms had confirmed that they would partner in the Project.  For instance, in June 2007, Plummer sent an e-mail to an individual stating, in part, that a “take out” situation with a major Wall Street firm would result in a buyout of the property for $1.5 billion.  In fact, there was no such “take out” plan.  CLARK also sent numerous e-mails indicating that she was getting financing from overseas sources.  These representations were false.

Evidence at trial further established that CLARK solicited investors on lengthy conference calls on which she made numerous misrepresentations for the purpose of acquiring funds.  A number of victims also testified at trial that they met with CLARK and Plummer at the Lighthouse Inn in New London, were told about the casino project, and were convinced by them to invest their money.

After receiving the funds, CLARK and Plummer did not invest the money as represented and instead diverted a significant portion of investors’ funds for their own personal use and benefit, including writing checks to cash, paying the expenses of McGrath Hotels (doing business as the Lighthouse Inn), and making mortgage payments on a property in Stonington.

As a result of this scheme, victim investors suffered losses of approximately $1.7 million.

CLARK was found guilty of one count of conspiracy to commit wire fraud, 13 counts of wire fraud, and six counts of money laundering.  She was found not guilty of one count of wire fraud.

On January 26, 2012, Plummer pleaded guilty to one count of conspiracy to commit wire fraud stemming both from this scheme and another scheme through which he defrauded a victim-investor of approximately $179,000.  On October 15, 2012, he was sentenced to 51 months of imprisonment.  Plummer also has forfeited his interest in a 4.35 acre parcel of property in Stonington, an automobile, and funds that have been seized during the investigation.

This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Michael S. McGarry and Senior Litigation Counsel Richard J. Schechter.

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]

March 1, 2013

David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found MANOKUS FIELDS, also known as “Fresh,” 30, of New Haven, guilty of conspiracy to distribute 280 grams or more of cocaine base (“crack cocaine”).  The jury returned the verdict today following a three-day trial before Senior United States District Judge Ellen Bree Burns.   

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. 

From June 2010 through October 2010, FIELDS was intercepted over the wiretap regularly arranging to meet Jackson and others at locations in Newhallville and New Haven’s Fair Haven neighborhood to purchase “8-balls” (3.5 grams) of crack cocaine.  FIELDS then divided the crack into 27 individual packages containing approximately one-tenth of a gram, which he sold to customers for $10 each.

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 only count with which he was charged.

At sentencing, FIELDS faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.

Forty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation.  Forty-six of those individuals have been convicted.  The trial of the last remaining defendant is scheduled for April 2013.

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 Robert M. Spector and Christopher M. Mattei.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

March 1, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that MIGUEL ALAMO, 36, of East Hartford, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 96 months of imprisonment, followed by five years of supervised release, for trafficking cocaine.

According to court documents and statements made in court, on April 28, 2010, as part of an undercover operation, investigators seized 15 kilograms of cocaine that were intended for delivery to ALAMO.  ALAMO was arrested the following day.  A subsequent search of ALAMO’s East Hartford residence revealed more than 12 kilograms of cocaine, drug packaging and processing materials, and $27,840 in cash.

ALAMO has been detained since his arrest on April 29, 2010.  On June 1, 2011, he pleaded guilty to one count of conspiracy to possess and distribute five kilograms or more of cocaine.

This matter was investigated by the Drug Enforcement Administration, with the assistance of the Federal Bureau of Investigation and Homeland Security Investigations.

The case was prosecuted by Assistant United States Attorney Geoffrey M. Stone.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

February 28, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that two Bridgeport men involved in gang-related narcotics trafficking were sentenced today by United States District Judge Janet Bond Arterton in New Haven.  JOSEPH REYES, also known as “Fat Joe,” “Deep” and “RJ,” 28, was sentenced to 300 months of imprisonment, followed by 10 years of supervised release, and RICHARD DANIELS, also known as “Po” and “Wap,” 30, was sentenced to 228 months of imprisonment, followed by 10 years of supervised release.  DANIELS was also ordered to pay a $1000 fine.

On August 30, 2012, a jury found REYES and DANIELS guilty of one count of conspiracy to possess with intent to distribute one kilogram or more of heroin and 280 grams or more of cocaine base (“crack cocaine”), and one count of conspiracy to maintain a drug-involved premises.  REYES was also found guilty of one count of possession of a firearm by a previously convicted felon.

This matter stems from “Operation Slim Fast,” a joint law enforcement investigation that focused on two drug trafficking organizations, one that operated out of Bridgeport and one that operated out of Bridgeport, Puerto Rico, and Springfield, Mass.  In 2010, members of the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force initiated an investigation of narcotics trafficking activity in and around the Marina Village Housing Complex in Bridgeport that focused primarily on the Marina Village Bloods, a violent narcotics trafficking organization.  Members of the Marina Village Bloods have been responsible for, or connected to, multiple shootings in Bridgeport.

The evidence at trial established that REYES, DANIELS and others, who were members of the Sex, Money, Murder set of the Marina Village Bloods, sold large quantities of narcotics from an abandoned residence at 105/107 Johnson Street, which is located across from the street from the Marina Village Housing Complex.  On multiple occasions, REYES and DANIELS were intercepted over court-authorized wiretaps discussing their narcotics trafficking activities.  The wiretapped conversations further revealed that members of the Marina Village Bloods alternately referred to the Johnson Street residence as the “kitchen,” “trap” or “white house.”

The evidence at trial also established that REYES, who has multiple previous felony convictions, possessed firearms, including a Taurus .40 caliber handgun that was purchased for him by a co-defendant who had no prior felony convictions.

It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.

REYES and DANIELS have been detained since their arrests on January 5, 2011.

As a result of this investigation, 19 individuals have been charged in federal court with various narcotics and firearms related offenses, and law enforcement officers seized approximately four kilograms of cocaine, one kilogram of crack cocaine, a quantity of heroin, an SKS assault rifle, five handguns and more than $150,000 in cash.

This matter was investigated by the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force – which is composed of personnel from the FBI and the Bridgeport, Norwalk and Trumbull Police Departments – with assistance from the United States Marshals Service, Internal Revenue Service – Criminal Investigation, Drug Enforcement Administration, Connecticut State Police, and Hartford, Stratford and Stamford Police Departments.

The case is being prosecuted by Assistant United States Attorneys Tracy Dayton, Doug Morabito and Jonathan Freimann.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

February 28, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that ANGELINA VELASQUEZ, 46, of Trumbull, pleaded guilty today before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to one count of bank fraud.

According to court documents and statements made in court, VELASQUEZ was employed as the payroll and human resources coordinator for a victim company.  From approximately September 2007 to November 2009, VELASQUEZ manipulated her employer’s payroll system and caused the company to generate approximately 350 unauthorized payroll checks, totaling approximately $247,570, in the names of 87 different employees at the company.  She then intercepted the checks before delivery to the employees, forged their signatures on the back of the checks, deposited and cashed the checks at two banks and used the proceeds for her own personal use.

In addition, VELASQUEZ assisted individuals by preparing and submitting personal income tax returns and, in 2009, she defrauded an individual out of her tax refund of $5,146.

VELASQUEZ is scheduled to be sentenced by United States District Judge Janet C. Hall on May 23, 2013, at which time VELASQUEZ faces a maximum term of imprisonment of 30 years.

This case is being investigated by the Shelton Police Department, the United States Secret Service, and the Connecticut Financial Crimes Task Force, which includes federal, state and local law enforcement agencies.  The case is being prosecuted by Assistant United States Attorney Neeraj N. Patel.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

February 28, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that WOLFE T. MIKELIC, of Fishkill, N.Y., was sentenced today by United States District Judge Janet C. Hall in New Haven to 42 months imprisonment, followed by five years of supervised release, for conspiring to possess and distribute more than 100 kilograms of marijuana.  MIKELIC also was ordered to pay a fine of $20,000.  He pleaded guilty to the offense on April 2, 2012.

According to court documents and statements made in court, in early 2010, troopers with the Nebraska State Patrol stopped a vehicle that contained approximately $351,000 in cash, apparent drug records, photographs of marijuana grows and shipping documents that identified an address in Branford, Conn., as a possible destination for items being shipped by commercial carriers.  After being contacted by the Nebraska State Patrol, Branford Police established surveillance of the Branford location, which was a storage facility.

On January 29, 2010, MIKELIC was stopped by Branford Police officers and Drug Enforcement Administration agents as he drove from the storage facility.  A search of MIKELIC’s vehicle revealed $40,000 in cash, and a search of the storage facility revealed approximately 150 pounds of marijuana packaged in one-pound, heat-sealed plastic bags. A subsequent search of MIKELIC’s New York residence revealed six pounds of marijuana, approximately $34,000 in cash, a money counting machine, a scale, drug records and information that led investigators to another storage location in New York.  A search of that location revealed an additional 38 pounds of marijuana in one-pound, heat-sealed bags.

All of the seized funds have been forfeited.

MIKELIC has been detained since February, 10, 2011, when his bond was revoked.

This matter was investigated by the Branford Police Department and the Drug Enforcement Administration’s New Haven Task Force, which includes officers from the Branford, Hamden, Ansonia, New Haven, West Haven and Meriden Police Departments.  The Nebraska State Patrol provided valuable assistance to the investigation.

This case was prosecuted by Assistant United States Attorney Michael E. Runowicz.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

February 28, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that WILLIAM FITZGERALD, also known as “Quay,” 32, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 33 months of imprisonment, followed by three years of supervised release, for distributing marijuana.

FITZGERALD is one of 108 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, FITZGERALD conspired with others to purchase and redistribute between 20 and 40 kilograms of marijuana.

FITZGERALD has been detained since his arrest on May 22, 2012.  On November 6, 2012, he pleaded guilty to one count of conspiracy to distribute marijuana.

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 invaluable 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]

February 28, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that WILLIE ANTONIO SAMUEL-BALDAYAQUEZ, 31, a citizen of the Dominican Republic, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 12 months and one day of imprisonment for illegally reentering the United States after being deported.

According to court documents and statements made in court, SAMUEL-BALDAYAQUEZ entered the United States illegally in 1998.  In January 2009, he was deported to the Dominican Republic following a 2008 conviction in Connecticut Superior Court for sale of a controlled substance, an aggravated felony under immigration law.

In November 2009, SAMUEL-BALDAYAQUEZ reentered the United States without first obtaining the consent of the Attorney General of the United States or his successor, the Secretary for the Department of Homeland Security, to reapply for admission into the United States.

On June 13, 2011, SAMUEL-BALDAYAQUEZ was arrested by the Norwalk Police Department.  He has been detained since his arrest.  On December 6, 2012, 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.  The case was prosecuted by Assistant United States Attorney Douglas P. Morabito.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

February 27, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that WILBUR TATE III, 48, of Dacula, Ga., was arrested today on a federal criminal complaint charging him with conspiracy to commit bank bribery while he was an executive at U.S. Bank in Ohio.  TATE appeared today before U.S. Magistrate Judge Linda T. Walker in Atlanta and was released on a $50,000 bond.

According to the complaint and court documents filed in related cases, Oxford Collection Agency 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 Collection Agency executives engaged in a multi-year scheme to defraud its lender, investors and clients.  The investigation also revealed that Oxford Collection Agency was actively involved in bribing bank officials.

The complaint alleges that TATE, an Assistant Vice President of U.S. Bank in Ohio from January 2004 through February 2011, was in charge of outsourcing collection accounts to collection agencies, including Oxford Collection Agency.  Beginning in approximately August 2008 and continuing for more than two years, Oxford Collection Agency executives engaged in a bribery scheme with TATE in order to obtain and retain the business of U.S. Bank.  As part of the scheme, Oxford executives initially provided TATE with boxes of expensive cigars, and subsequently sent TATE monthly cash payments of between $2,500 and $5,000, which were hidden in cigar boxes and mailed to TATE’s residence in Mason, Ohio.

U.S. Bank received funds through the Troubled Asset Relief Program (TARP). 

U.S. Attorney Fein also 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 ongoing investigation is being conducted 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, Special U.S. Attorney John McReynolds and Deputy U.S. Attorney Deirdre Daly, with the assistance of the U.S. Attorney’s Office for the Northern District of Georgia.

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]

February 26, 2013

David B. Fein, United States Attorney for the District of Connecticut, today announced that WISLA EXPRESS, LLC, a New Britain-based transportation company, and its office manager, DARIUSZ SZTEBOROWSKI, 49, of Rocky Hill, have pleaded guilty to federal charges related to their falsification and destruction of driver records required to be maintained under federal motor carrier safety regulations for inspection.

“Federal regulations on passenger-carrying vehicles exist to keep drivers, passengers and American highways safe,” stated U.S. Attorney Fein.  “Transportation companies and their employees who violate these important laws face federal prosecution.”

According to court documents and statements made in court, WISLA EXPRESS, located at 157 Broad Street in New Britain, is a commercial motor carrier that employs drivers to operate vans and minibuses to transport individuals to and from airports, and tour buses carrying passengers to locations outside of Connecticut. SZTEBOROWSKI, a manager of WISLA EXPRESS, was responsible for the day-to-day operations of the company, including scheduling driving assignments and maintaining the company’s driving records.

The Federal Motor Carrier Safety Administration (“FMCSA”), a division of the U.S. Department of Transportation, administers and enforces the federal commercial motor vehicle laws and regulations to ensure that commercial motor vehicle carriers and drivers fully comply with the responsibilities imposed on them to operate their vehicles in a safe and unimpaired manner.  Federal regulations prohibit drivers from driving in excess of certain maximum allowable driving hours over defined periods, and require commercial motor carriers to maintain truthful and accurate driving records.

Between September 2008 and September 2011, SZTEBOROWSKI scheduled and assigned drivers to trips knowing that the drivers would be exceeding the regulated limits of on-duty driving time, and also instructed drivers and others to falsify driving logs by recording that the drivers were off-duty during times when they were, in fact, driving.  In order to pay drivers for time actually spent working for WISLA, STZEBOROWSKI instructed drivers to submit separate pay sheets and notes that accurately detailed their hours.  SZTEBOROWSKI then destroyed the pay sheets and other documentation that accurately recorded the drivers’ hours.

In response to an FMCSA investigation of WISLA that was initiated in August 2010, SZTEBOROWSKI produced the falsified driver logs and withheld other records that would conflict with the logs.

On February 22, 2013, SZTEBOROWSKI pleaded guilty before U.S. Magistrate Judge Donna F. Martinez in Hartford to one count of submitting a false statement to the U.S. Department of Transportation. 

Yesterday, WISLA pleaded guilty before Judge Martinez to the same charge.

Sentencing has been scheduled for May 17, 2013.  SZTEBOROWSKI faces a maximum term of imprisonment of five years and fine of up to $250,000.  He also has agreed to a three-year term of supervised release during which he cannot be involved, directly or indirectly, in WISLA or any other business under the jurisdiction of the U.S. Department of Transportation.

WISLA faces a maximum term of probation of five years and a fine of up to $500,000.

U.S. Attorney Fein commended the investigative efforts of the agents of the New England Regional Office of the U.S. Department of Transportation, Office of Inspector General, and the Federal Motor Carrier Safety Administration.  The Connecticut Department of Motor Vehicles Commercial Safety Division has provided valuable assistance to the investigation.

This matter is being prosecuted by Assistant United States Attorneys Felice M. Duffy and David E. Novick.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

February 26, 2013

David B. Fein, 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, today announced that a federal grand jury sitting in New Haven has returned a 19-count indictment charging three executives of New Stream Capital, LLC, a Ridgefield-based hedge fund, with conspiracy, securities fraud and wire fraud offenses.

DAVID BRYSON, 44, of Ridgefield, BART GUTEKUNST, 61, of Weston, and RICHARD PEREIRA, 40, of Ridgefield, surrendered this morning to the FBI in New Haven.  BRYSON and GUTEKUNST were managing partners and principals at New Stream Capital, LLC, (“New Stream”) and PEREIRA was the Chief Financial Officer.  The defendants appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford and pleaded not guilty to the charges.  BRYSON and GUTEKUNST were released on $5 million bonds and PEREIRA was released on a $300,000 bond.  The indictment, which was returned on February 22, was unsealed at that time.

“As alleged, fearing the loss of their fund’s largest investor, these defendants orchestrated a scheme to deceive investors in order to obtain and maintain investments,” stated U.S. Attorney Fein.  “The U.S. Attorney’s Office and our many partners on the Connecticut Securities, Commodities and Investor Fraud Task Force are committed to protecting investors and the integrity of American capital markets.”

“It goes without saying that investing carries certain risks,” stated FBI Special Agent in Charge Mertz.  “Those risks, however, should not include any chance that hedge fund managers or other investment professionals are lying to or deceiving their investors about the current state of investments.  Investors have a right to full disclosure.  Today’s arrests underscore the FBI’s continuing commitment to investigate those who provide material misrepresentations to investors.”

According to the indictment and statements made in court, in November 2007, New Stream launched new feeder funds, one based in the United States (“U.S. Fund”) and a series of funds based in the Cayman Islands (“Cayman Fund”).  New Stream also announced that its existing Bermuda Fund would be closing, and all foreign investors would have to move their investments into the Cayman Fund.  Rather than transfer into the new structure, New Stream’s largest investor placed a redemption on its whole investment in the Bermuda Fund in March 2008.  At risk of losing their largest investor, it is alleged that BRYSON, GUTEKUNST and PEREIRA set in motion a scheme to secretly keep the Bermuda Fund open and give priority to Bermuda Fund investors in an effort to reverse the redemption.  As part of the scheme, BRYSON, GUTEKUNST and PEREIRA had New Stream staff secretly reorganize the fund structure so as to effectuate the priority change.

The indictment further alleges that New Stream failed to inform investors who had transferred from the Bermuda Fund into the Cayman Fund that the Bermuda Fund was remaining open or that it was being given priority over the Cayman Fund.  Moreover, New Stream continued to market New Stream to investors by concealing from them the magnitude of the actual pending redemptions and by using deceptive marketing materials that failed to disclose the existence of New Stream’s Bermuda Fund.

Each of the defendants is charged with one count of conspiracy, 10 counts of securities fraud and eight counts of wire fraud.  The conspiracy charge carries a maximum term of imprisonment of five years, and the securities fraud and wire fraud charges carry a maximum term of imprisonment of 20 years on each count.

This matter is being investigated by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General, with the assistance of the Securities and Exchange Commission.  The case is being prosecuted by Assistant United States Attorneys Liam Brennan and 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 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]

February 25, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that DARIO PABEY, 32, of Waterbury, pleaded guilty today before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to one count of bank robbery for his role in the August 2012 robbery of TD Bank in Killingworth.

According to court documents and statements made in court, in the afternoon of August 6, 2012, Jennifer Jacques drove PABEY and another man to the TD Bank on Route 81 in Killingworth.  PABEY and his co-defendant then entered the bank wearing masks and demanded that everyone lie on the floor.  PABEY used zip ties to tie the hands of one bank employee.  After taking money from the bank, as well as money and other items from bank customers, PABEY grabbed a customer and forced him out of the bank.  PABEY and his co-defendant fled in the customer’s vehicle, which was abandoned a short distance from the bank at a pre-planned location where Jacques was waiting.  Jacques then drove PABEY and his co-defendant away from the bank while they changed out of the clothes they had worn during the robbery.

The investigation has revealed that $43,573 was stolen from the bank and its patrons during the robbery.
PABEY is scheduled to be sentenced by United States District Judge Janet C. Hall on May 20, 2013, at which time PABEY faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.

PABEY has been detained since his arrest on September 7, 2012.

Jacques has pleaded guilty and awaits sentencing.

This matter is being investigated by the Federal Bureau of Investigation and the Connecticut State Police.  The case is being prosecuted by Assistant United States Attorneys Ray Miller and Sarala Nagala.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

February 25, 2013

The United States Attorney for the District of Connecticut announced that TODD ROBERTS, 47, of Old Saybrook, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to three years of probation for obstructing a federal audit.  ROBERTS and his physical therapy practice, ROBERTS PHYSICAL AND AQUATICS THERAPY, also have entered into a civil settlement agreement with the government in which they will pay $328,828 to resolve allegations that they violated the False Claims Act.

According to court documents and statements made in court, on January 23, 2009, a Medicare contractor informed ROBERTS PHYSICAL AND AQUATICS THERAPY, located at 210 Main Street in Old Saybrook, that the contractor was performing an audit of the practice.  ROBERTS instructed an employee to delay the audit by telling the contractor that medical records were stored at a nonexistent storage facility.  ROBERTS then rented a storage unit at a local facility and used the delay to alter and augment patient records.  Specifically, ROBERTS, and an employee at his direction, created and added patient progress notes when no notes had been created at the time of service.  The notes made it appear as though Medicare beneficiaries had obtained direct, one-on-one service from a licensed physical therapist when, in fact, some of the services had been rendered by unlicensed auxiliary personnel.

On September 25, 2012, ROBERTS waived his right to indictment and pleaded guilty to one count of obstructing a federal audit.

The civil allegations against ROBERTS and ROBERTS PHYSICAL AND AQUATIC THERAPY involve improper billing to Medicare for physical and aquatic therapy services between April 2007 and March 2010.  The Medicare program only pays for outpatient therapy services that are provided by qualified personnel.  Personnel qualified to provide outpatient therapy services are limited to physicians, licensed physical therapists, and licensed physical therapy assistants. The Medicare program does not pay for physical therapy services provided by supportive personnel, such as physical therapy aides, athletic trainers or student trainees.  In addition, Medicare regulations and policies make it clear that therapeutic procedures require direct, one-on-one contact between the licensed therapist and the patient.

The government alleges that ROBERTS and ROBERTS PHYSICAL AND AQUATIC THERAPY regularly billed Medicare for direct, one-on-one therapeutic procedures when such services were not provided.  At the clinic, physical therapists and physical therapy assistants would routinely provide therapy services to multiple patients at the same time.  Nevertheless, the services provided to each patient were billed as if the physical therapist or physical therapy assistant had provided direct, one-on-one care.  For example, patients were routinely left alone to perform exercises in the aquatic therapy pool, with no direct, one-on-one contact with licensed personnel.

In addition, Medicare regulations and policies make it clear that physical therapy services must be thoroughly and accurately documented in the patients’ medical chart.  Therapy services are only payable when the medical record consistently and accurately records the covered therapy services.  The government alleges that ROBERTS and ROBERTS PHYSICAL AND AQUATIC THERAPY routinely failed to document their therapy services.  This was particularly egregious during the first six months of its operation, when the clinic did not have any documentation at all showing that the services in question were actually provided.

To resolve their liability under the False Claims Act, ROBERTS AND ROBERTS PHYSICAL AND AQUATIC THERAPY will pay $328,828 for conduct occurring between April 5, 2007 and March 31, 2010.

In addition, ROBERTS and ROBERTS PHYSICAL AND AQUATIC THERAPY have entered into a six-year Integrity Agreement with the U.S. Department of Health and Human Services that is designed to ensure future compliance with the requirements of the Medicare program, including the proper rendering of therapy services and the submission of only valid claims to Medicare for payment.

In entering into the civil settlement agreement, ROBERTS AND ROBERTS PHYSICAL AND AQUATIC THERAPY did not admit liability.

Judge Underhill required ROBERTS, as conditions of his probation, to comply with the terms of the Integrity Agreement and to pay the entire $328,828.

This matter was investigated by the Office of Inspector General for the Department of Health and Human Services, the Federal Bureau of Investigation, and the Office of the Inspector General for the Department of Veterans Affairs.  The case was prosecuted by Assistant United States Attorneys David J. Sheldon and Richard M. Molot, and Auditor Susan Spiegel.

People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

February 25, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that HASSAN MUHAMMAD, also known as “Hadi,” 24, of Hartford, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 21 months of imprisonment, followed by one year of supervised release, for his role in a Hartford crack cocaine distribution ring.

This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End.  As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.

According to court documents and statements made in court, Joshua Easterling and Kyshiifa Boyd distributed large quantities of crack cocaine in Hartford’s lower Vine Street area, as well as in other locations in Hartford and East Hartford.  In February 2012, MUHAMMAD was intercepted over a court-authorized wiretap ordering a distribution quantity of crack cocaine from Easterling.

The Hartford Police Department has identified MUHAMMAD as being a member of the AVE street gang.

On November 21, 2012, MUHAMMAD pleaded guilty to one count of using a telephone to facilitate a drug trafficking felony offense.

Easterling and Boyd have also pleaded guilty and await sentencing.

This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department and the Connecticut Department of Correction.  The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

February 22, 2013

David B. Fein, United States Attorney for the District of Connecticut, today announced that DAMARIS PERALTA, 45, of Stamford, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 24 months of imprisonment, followed by three years of supervised release, for her involvement in a tax fraud and identity theft scheme.

According to court documents and statements made in court, between October and December 2010, PERALTA, Hector Medina and others were involved in a conspiracy through which they obtained at least 35 U.S. Treasury income tax refund checks by filing fraudulent tax returns, with false W-2 forms attached, on behalf of citizens of Puerto Rico without their knowledge or consent.  As part of the scheme, Matilde Fabian-Pichardo used her position as a bank teller in Stamford to cash the fraudulent checks presented to her by Medina and others by using the legitimate accounts of bank customers.  Medina kept the majority of the proceeds of the scheme and paid PERALTA and others for their assistance.

This scheme resulted in a loss of approximately $185,000 to the Internal Revenue Service.  In addition, members of the conspiracy cashed fraudulently obtained state tax refund checks from New York and North Carolina, resulting in an additional loss of approximately $13,000.

PERALTA was ordered to pay, jointly and severally with her co-defendants, restitution in the amount of $198,425.57.

PERALTA has been detained since May 23, 2012.  On October 24, 2012, she pleaded guilty to one count of conspiracy to defraud the Internal Revenue Service.

Medina and Fabian-Pichardo also have pleaded guilty.  On October 2, 2012, Medina was sentenced to 27 months of imprisonment.  Fabian-Pichardo awaits sentencing.

This investigation is being conducted by the Internal Revenue Service – Criminal Investigation, U.S. Secret Service, U.S. Postal Inspection Service, Greenwich Police Department, Stamford Police Department and the Connecticut Financial Crimes Task Force.

The case is being prosecuted by Assistant United States Attorneys Douglas Morabito and Ndidi Moses.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]

February 22, 2013

David B. Fein, United States Attorney for the District of Connecticut, today announced that DANILO ALVARADO-CARBAJAR, 29, a citizen of El Salvador, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 37 months of imprisonment for illegally reentering the United States following his deportation.

According to court documents and statements made in court, ALVARADO-CARBAJAR was deported from the United States to his native El Salvador in May 2007 following a state conviction for sexual assault in the second degree.  In approximately May 2012, ALVARADO-CARBAJAR illegally reentered the U.S. without first obtaining the consent of the Attorney General of the United States or his successor, the Secretary for the Department of Homeland Security, to reapply for admission into the U.S.

On June 22, 2012, ALVARADO-CARBAJAR was arrested by the Norwalk Police Department on a state probation violation.  Subsequent investigation revealed that ALVARADO-CARBAJAR was in the country illegally.  He has been detained since his arrest.

On December 13, 2012, ALVARADO-CARBAJAR pleaded guilty to one count of illegal reentry of a removed alien.

This matter was investigated by U.S. Immigration and Customs Enforcement, Criminal Alien Program.  The case was prosecuted by Assistant United States Attorney Neeraj N. Patel.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]