District of Connecticut
Press releases recorded for this federal judicial district.
Convicted Felon Who Illegally Reentered the U.S. After Being Deported Is SentencedRead the Press Release
February 28, 2013David 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]Bank Executive Charged with Receiving Bribes from Oxford Collection AgencyRead the Press Release
February 27, 2013David 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]New Britain Transportation Company, Manager, Admit Falsifying and Destroying Driving RecordsRead the Press Release
February 26, 2013David 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]Fairfield County Hedge Fund Executives Charged with Conspiracy, Securities Fraud and Wire Fraud OffensesRead the Press Release
February 26, 2013David 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]Waterbury Man Admits Role in Killingworth Bank RobberyRead the Press Release
February 25, 2013David 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]Old Saybrook Physical Therapist Is Sentenced, Agrees to Pay $328,828 to Resolve False Claims Act LiabiltyRead the Press Release
February 25, 2013The 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]Hartford Man Involved in Crack Distribution Ring Sentenced to 21 Months in Federal PrisonRead the Press Release
February 25, 2013David 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]Stamford Woman Sentenced to Two Years in Federal Prison for Role in Tax Fraud and Identity Theft SchemeRead the Press Release
February 22, 2013David 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]Citizen of El Salvador Sentenced to 37 Months in Federal Prison for Illegally Reentering the U.S.Read the Press Release
February 22, 2013David 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]Former Connecticut Resident Sentenced to 37 Months in Prison for Mortgage Fraud OffensesRead the Press Release
February 21, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that ERIC S. SCHERZ, 44, of Stuart, Fla., formerly of Barkhamsted, was sentenced yesterday by United States District Judge Vanessa L. Bryant in Hartford to 37 months of imprisonment, followed by three years of supervised release, for mortgage fraud offenses.
According to court documents and statements made in court, in October 2007, SCHERZ secured a $417,000 mortgage loan to finance the purchase of a property in Barkhamsted. In April 2008, SCHERZ created a fraudulent release of mortgage on the property stating that the lender, a fictitious company SCHERZ created, had received full payment of the loan. SCHERZ subsequently filed the fraudulent release of mortgage with the Town of Barkhamsted.
SCHERZ stopped making payments on his mortgage in March 2009 but, in April 2009, he made three fraudulent payments via wire transfer to his mortgage lender that he knew would be and were, in fact, reversed for insufficient funds.
In May 2009, SCHERZ sold the Barkhamsted property for $299,000 to a buyer who relied on the fraudulent release of mortgage as being genuine. At the time of the sale, SCHERZ’s unpaid principal balance on his mortgage was $410,718.56. SCHERZ did not use any of the $299,000 from the fraudulent sale to his pay his outstanding mortgage debt.
On January 6, 2012, SCHERZ waived his right to indictment and pleaded guilty to three counts of wire fraud.
SCHERZ has previously served a 70-month federal term of imprisonment for his role in a mortgage fraud scheme in Florida in the 1990s.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Michael J. Gustafson.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Bishop of Trumbull Church Pleads Guilty to Investor Fraud OffensesRead the Press Release
February 20, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that JULIUS C. BLACKWELDER, 59, of North Dakota, formerly of Stratford, pleaded guilty today before Senior United States District Judge Ellen Bree Burns in New Haven to federal wire fraud and money laundering offenses stemming from an investor fraud scheme.
“This defendant abused his position of trust as a leader in his church to defraud fellow church members and others out of hundreds of thousands of dollars, much of which he used to construct a waterfront home,” stated U.S. Attorney Fein. “I commend the U.S. Postal Inspection Service, SIGTARP, IRS-Criminal Investigation, Connecticut Department of Banking and our other law enforcement partners who are working diligently to protect investors by identifying and rooting out fraudulent financial schemes.”
According to court documents and statements made in court, beginning in 2005, BLACKWELDER persuaded individuals to invest their money with him as part of an investment pool known as the “Friend’s Investment Group.” At the time, BLACKWELDER was the Bishop of the Bridgeport Ward of the Church of Jesus Christ of Latter-day Saints located in Trumbull, and he solicited investments from, among others, members of his congregation.
BLACKWELDER misrepresented to investors that he would invest their money in safe, long-term commodities futures contracts, and that he was an experienced and successful commodities investor. In some instances, BLACKWELDER guaranteed investors’ principal and a specific return on their investment. He documented his misrepresentations to investors in promissory notes, offering memoranda, and account updates that he prepared.
In fact, BLACKWELDER used investors’ money to pay his own expenses, which included repaying earlier investors in the scheme, building a waterfront home in Stratford, and repaying personal bank loans, including a line of credit from a Troubled Asset Relief Program (TARP) recipient bank.
Through this scheme, BLACKWELDER defrauded investors of more than $400,000.
BLACKWELDER pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of money laundering, which carries a maximum term of imprisonment of 10 years. Judge Burns has scheduled sentencing for May 15, 2013.
This matter is being investigated by the United States Postal Inspection Service, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Internal Revenue Service – Criminal Investigation, and the State of Connecticut Department of Banking. The case is being prosecuted by Assistant United States Attorney Jonathan N. Francis and Deputy United States Attorney Deirdre M. Daly.
The Connecticut Securities, Commodities and Investor Fraud Task Force investigates matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Federal Jury Finds Two Guilford Women Guilty of Overseeing “gifting Tables” Pyramid SchemeRead the Press Release
February 20, 2013David B. Fein, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal jury in Hartford has found DONNA BELLO, 56, and JILL PLATT, 65, both Guilford, guilty of conspiracy, tax and wire fraud offenses related to their involvement in a pyramid scheme known as “Gifting Tables.” The trial before Chief United States District Judge Alvin W. Thompson began on January 24 and the jury returned its verdict this afternoon after deliberating for approximately two hours.
“As the jury’s swift verdict of guilty on all counts makes clear, ‘Gifting Tables’ are pyramid schemes and illegal, plain and simple,” stated U.S. Attorney Fein. “These defendants enriched themselves while fraudulently misrepresenting material facts about the Gifting Tables and conspired to hide their income from the IRS. I commend the agents of IRS Criminal Investigation for their thorough investigation of this matter, which is ongoing.”
“I’m pleased to see that the jury saw that the ultimate purpose was the enrichment of the defendants,” stated IRS Criminal Investigation Special Agent in Charge Offord. “IRS Criminal Investigation remains committed to investigating schemes like these in an effort to protect the financial well-being of the American public and to ensure that everyone pays their fair share of taxes.”
According to the evidence presented during the trial, a Gifting Table is configured as a four-level pyramid, with eight participants assigned to the bottom row, four participants assigned to the third row, two participants assigned to the second row, and one participant assigned to the top row. The top row participant is referred to as the “Dessert,” the two participants on the second row as “Entrees,” the four participants on the third row as “Soup and Salads,” and the eight participants on the bottom row as “Appetizers.” To join a Gifting Table, new participants were required to pay $5,000, typically cash, to the Dessert, that is, the participant occupying the top position on the pyramid. The $5,000 payment, which was fraudulently characterized as a gift, secured the new participant a position as an Appetizer on the bottom row. Participants moved from the bottom row of the pyramid and progressed through a Gifting Table by recruiting additional people to join. When eight new participants joined a Gifting Table, each having made a $5,000 “gift” to the person occupying the Dessert position at the top of the pyramid, the Dessert left the Gifting Table and kept the $40,000 paid by the eight new participants. That particular Gifting Table was then split, with the two participants occupying the Entree position on the second row moving to the top position (Dessert) of two new pyramids. The other incumbent members of the Gifting Table moved up a row on one of the two newly-formed pyramids, and the search for 16 new participants began. The success of the Gifting Tables depended on new participants joining and making the $5,000 “gift.”
From approximately 2008 to 2011, BELLO and PLATT oversaw and profited from this Gifting Tables pyramid scheme. The defendants recruited individuals to join the scheme, prepared and distributed materials to recruits that contained false representations, and misrepresented to recruits and participants that Gifting Tables was not a pyramid scheme. Also, in May 2010, the defendants attempted to intimidate a participant who had questioned the legality of the Gifting Table scheme.
BELLO and PLATT also conspired to defraud the Internal Revenue Service by misrepresenting to recruits and participants that monies given and received during the scheme were legally considered tax-free “gifts” under the IRS code and that lawyers and accountants had approved Gifting Tables as legal ventures that generated tax-free proceeds. In addition, BELLO and PLATT filed false tax returns that failed to report income generated from the scheme.
Evidence at trial included several emails, including an email sent by Platt in March 2009 that told a participant: “It’s sort of a joke that I refer to our freezer as the ATM.” Later in March 2009, Bello complained to Hopkins and another individual about two recruits, stating: “They have had enough parties. Its [sic] costing us a small fortune in their food and wine delights. No more parties until they commit with the cash.”
In June 2009, Bello sent an email that said “I am not a . . . saint . . . . I’m teaching you all how to make an extra 80 grand a year . . . . Isn’t that enough?”
Later in October 2009, Bello emailed a participant and indicated “as women we like our own stash. Keep it in a safe. Keep it quiet because rather not have red flags raised. Hiring accountants and atterneys [sic] is costly.”
The jury found BELLO and PLATT guilty of one count of conspiracy to commit wire fraud, which carries a maximum term of imprisonment of 20 years, one count of conspiracy to commit to defraud the IRS, which carries a maximum term of imprisonment of five years, and 11 counts and four counts of wire fraud, respectively, charges that carry a maximum term of imprisonment of 20 years. Finally, BELLO was found guilty of two counts and PLATT of one count of filing a false tax return, a charge that carries a maximum term of imprisonment of three years.
“During the trial, the jury heard evidence that other Gifting Tables continue to operate in Connecticut,” stated U.S. Attorney Fein. “The jury’s verdict today is fair notice to anyone participating on Gifting Tables that any money received is taxable income and that they may be involved in an illegal pyramid scheme.”
Chief Judge Thompson has scheduled sentencing for May 15, 2013.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation, and is being prosecuted by Assistant United States Attorneys Douglas P. Morabito and Peter S. Jongbloed.
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]East Haven Woman Charged with Threatening Violent Attack at Gateway Community CollegeRead the Press Release
February 20, 2013David 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 FBI, today announced that AMANDA C. BOWDEN, 19, of East Haven, has been charged by federal criminal complaint with falsely threatening to carry out a violent attack at Gateway Community College in New Haven.
“As alleged, this defendant made a series of threats that described in great detail her intention to carry out a suicidal mass murder at a community college in New Haven,” stated U.S. Attorney Fein. “All threats of this nature will be viewed as serious by this office and prosecuted to the full extent of federal law. I commend the FBI’s Joint Terrorism Task Force and the New Haven and East Haven Police Departments for their swift investigation of this matter.”
“The FBI’s investigations into threats of violence will be swift and thorough,” stated FBI Special Agent in Charge Mertz. “In this day and age, the making of any threat will not and cannot be tolerated. There will be consequences. The Agents and Task Force Officers assigned to the New Haven Division’s Joint Terrorism Task Force and the U.S. Attorney’s Office did an outstanding job in addressing this threat from the time it was first reported to the FBI until the successful arrest of the subject.”
As alleged in the criminal complaint, between approximately February 4 and February 16, 2013, BOWDEN made numerous telephonic threats, initially through text messaging with a cooperating witness and subsequently through text messaging and verbal conversations with an undercover law enforcement agent, discussing her plans to commit a suicidal mass shooting and bombing at Gateway Community College in New Haven. In these communications, BOWDEN claimed to possess firearms and to have constructed at least two napalm-based bombs at her residence.
BOWDEN was arrested yesterday on state charges. At that time, investigating agents conducted a court-authorized search of BOWDEN’s East Haven residence. No firearms or explosive devices or related materials were found during the search.
BOWDEN appeared today before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport and is detained pending a hearing that is scheduled for March 1.
BOWDEN is charged with one count of false information and hoaxes. The charge carries a maximum term of imprisonment of five years and a fine of up to $250,000.
U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, the New Haven Police Department and the East Haven Police Department. The FBI’s JTTF includes participants from the Department of Homeland Security, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation, Naval Criminal Investigative Service, Connecticut State Police, Bridgeport Police Department, Norwich Police Department and the New York Police Department.
The case is being prosecuted by Assistant United States Attorney Henry K. Kopel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Man Pleads Guilty to Federal Narcotics ChargeRead the Press Release
February 19, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that RODNEY SNAPE, 32, of New Haven, pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to one count of possessing cocaine base ("crack cocaine").
According to court documents and statements made in court, this matter stems from an FBI New Haven Safe Streets Task Force investigation into drug trafficking and associated violence in the Hill area of New Haven. From October to December 2012, an individual working with law enforcement made four purchases of a total of approximately 52 grams of crack cocaine from SNAPE.
Judge Arterton has scheduled sentencing for May 17, 2013, at which time SNAPE faces a maximum term of imprisonment of 20 years and a fine of up to $1 million.
This matter is being investigated by the FBI New Haven Safe Streets Task Force, which is composed of agents and officers with the Federal Bureau of Investigation, New Haven, Milford and Hamden Police Departments, and the Connecticut Department of Correction.
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]New Haven Man Pleads Guilty to Federal Narcotics Conspiracy ChargeRead the Press Release
February 15, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that CORNELL STREATER, also known as “Messy,” 21, of Shelton Avenue, New Haven, pleaded guilty yesterday before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to one count of conspiracy to possess and 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.
STREATER is scheduled to be sentenced by Senior United States District Judge Warren W. Eginton on May 9, 2013, at which time STREATER faces a maximum term of imprisonment of 20 years and a fine of up to $1 million.
On April 9, 2012, a grand jury returned an indictment charging 18 individuals, including STREATER, with narcotics distribution offenses stemming from this investigation. To date, nine of the defendants have pleaded guilty. The other nine defendants are detained while awaiting trial.
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]New Haven Drug Dealer Sentenced to Five Years in Federal PrisonRead the Press Release
February 15, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that JAVIER SERRANO, also known as “Javi,” 21, of New Haven, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by four years of supervised release, for distributing narcotics in New Haven.
According to court documents and statements made in court, in April 2011, the Bureau of Alcohol, Tobacco, Firearms and Explosives, in conjunction with the Drug Enforcement Administration and the New Haven Police Department’s Tactical Narcotics Unit, began an intensive investigation into drug dealing in the vicinity of 36 Maltby Place in the Fair Haven section of New Haven. The investigation, which included the use of court-authorized wiretaps, law enforcement surveillance and controlled purchases of crack cocaine and cocaine from a number of individuals, revealed that SERRANO and others operated an open-air narcotics market where they sold crack cocaine, cocaine, and heroin to customers on a daily basis.
SERRANO has been detained since his arrest on November 16, 2011. On October 1, 2012, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 28 grams or more of cocaine base (“crack”), a quantity of cocaine and a quantity of heroin.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the New Haven Police Department’s Tactical Narcotics Unit. The Stamford Police Department has provided critical assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys Anthony E. Kaplan and Marc H. Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Milford Man Sentenced to Five Years in Federal Prison for Distributing Child PornographyRead the Press Release
February 15, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that ROLAN SOSA, 36, of Milford, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment for receiving and distributing child pornography. SOSA also was ordered to pay a $20,000 fine.
According to court documents and statements made in court, on November 16, 2011, detectives assigned to the Connecticut Child Exploitation Task Force in New Haven logged into a publicly available Internet file sharing program and downloaded 14 images of child pornography from a shared directory maintained by SOSA.
On December 15, 2011, SOSA was arrested at his residence in Milford. On that date, law enforcement agents also seized SOSA’s laptop computer. Subsequent analysis of the seized computer revealed 110 images and 134 video files of child pornography. Included in his collection of child pornography were images of children under the age of 12 engaged in sexually explicit conduct. Forensic review also revealed that SOSA distributed child pornography images and videos through the file sharing program located on his computer.
SOSA has been detained since his arrest. On October 9, 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 Attorney Henry Kopel.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Controller of Stamford Company Charged with Embezzlng More Than $1 MillionRead the Press Release
February 14, 2013David 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 THOMAS J. TUREY, 63, of Norwalk, was arrested today on a federal criminal complaint charging him with wire fraud.
As alleged in the criminal complaint, from 1995 until January 2013, TUREY served as the controller for a market research company located in Stamford. As controller, TUREY’s responsibilities included aggregating the company’s monthly revenue and expense results, managing the company’s accounts receivable, performing financial analysis and reporting, and overseeing the company’s bookkeeper. TUREY also was responsible for the company’s general ledger and was in charge of conducting the company’s bank reconciliations. Between 2010 and 2012, TUREY wrote approximately 100 checks totaling approximately $1.2 million to himself from his employer’s principal operating account and deposited the checks into his personal bank account. The majority of the embezzled funds were subsequently transferred into TUREY’s online brokerage account.
The complaint further alleges that TUREY has embezzled additional funds from his employer. The investigation is ongoing.
TUREY surrendered today to the FBI in Bridgeport. He appeared before United States Magistrate Judge William I. Garfinkel in Bridgeport and was released on a $300,000 bond.
The charge of wire fraud carries a maximum term of imprisonment of 20 years.
U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Paul A. Murphy.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Connecticut Resident Admits Running Multimillion Dollar Investment Fraud SchemeRead the Press Release
February 14, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that GARRETT L. DENNISTON, 62, formerly of Sandy Hook, Conn., and Boothbay Harbor, Maine, waived his right to indictment and pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to one count of wire fraud stemming from his operation of a multimillion dollar investment fraud scheme.
“This defendant operated an investment fraud scheme by representing to investors that he ran a successful investment business and could offer them a special ‘friends and family’ deal investing in companies for a guaranteed return of their investment plus a high rate of interest,” stated U.S. Attorney Fein. “I commend the FBI and the Greenwich Police Department for shutting down this scheme, and I urge the investing public to be extremely skeptical of any promises of risk-free investments and guaranteed returns.”
According to court documents and statements made in court, from approximately 2005 to 2012, DENNISTON defrauded individuals through a Connecticut company called ConsensusOne, LLC, by holding himself out to potential investors as operating a successful investment business specializing in mergers and acquisitions, and by convincing individuals to make investments in phony stock options or other similarly non-existent investments. During the scheme, DENNISTON told investors that their money would be used to invest in one of the companies that he or his investment business owned and, specifically, that their money would be used to purchase stock options (or promissory notes) convertible into the company’s stock at a substantial discount to the value of the stock on the date of conversion.
DENNISTON also told investors that the companies were on the verge of being sold or had already been sold in deals that were closing on an accelerated schedule. He further indicated that an investment was refundable if the deal did not close, and that he and his company would guarantee the investments, so that the investments were risk-free. DENNISTON also told people that the investment was being offered to them as part of a “friends and family” deal pursuant to which he had access to a limited pool of stock options that would yield a guaranteed return on investment.
In reality, DENNISTON did not invest his victims’ funds in stock options or in any other legitimate investments. Rather, he spent the money on his own personal and business expenses, as well as for other unauthorized uses. DENNISTON used some money for gifts to family members, and spent additional amounts on airfare, hotels, restaurants, country club memberships, golf and ski outings, mortgage and rent payments, cable and telephone bills, furniture, home renovation costs, and other personal living expenses.
Through this investment scheme, DENNISTON defrauded more than 50 victims out of a total of more than $2.5 million. Individual investment amounts ranged from a few thousand dollars to nearly $500,000.
DENNISTON concealed his fraudulent activities by preparing fake legal documents and forging signatures of those documents. At times, he also used one investor’s funds to repay other investors.
DENNISTON has been detained since his arrest on September 19, 2012.
Judge Arterton has scheduled sentencing for June 11, 2013, at which time DENNISTON faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Securities, Commodities and Investor Fraud Task Force, notably the Greenwich Police Department. The case is being prosecuted by Special Assistant United States Attorney Kerry L. Quinn.
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]Paralegal Who Filed Fraudulent Visa Applications for Foreign Nationals Is SentencedRead the Press Release
February 13, 2013David B, Fein, United States Attorney for the District of Connecticut, announced that FERNANDO GONCALVES, 56, a citizen of Brazil who formerly resided in Bethany, was sentenced today by United States District Judge Michael P. Shea in Hartford to approximately 7 and one-half months of imprisonment, time already served, for filing fraudulent visa applications for foreign nationals.
According to court documents and statements made in court, GONCALVES, a practicing attorney in Brazil, served as the office manager and paralegal at a law practice in Stamford that assisted persons in obtaining immigration benefits, including employment authorization and permanent resident status. GONCALVES’s responsibilities included meeting with potential clients, preparing documents for submission to various state and federal agencies, and collecting monies paid by clients for legal representation by the law firm. In his position as office manager and paralegal, GONCALVES knowingly filed fraudulent employment-based visa applications for foreign nationals.
Specifically, GONCALVES obtained money from foreign nationals by preparing and submitting approximately eight fraudulent I-485 forms (Application to Register Permanent Residence or Adjust Status). GONCALVES was paid more than $7,000 by each foreign national for whom he performed immigration services. Each of the applications submitted on behalf of the eight individuals contained false statements and fraudulent documents in support of the application, including false rental agreements, false affidavits, false employment experience and false letters.
GONVALVES has been detained since his arrest on June 28, 2012, at JFK International Airport, after he returned to the United States from Brazil. On September 18, 2012, he waived his right to indictment and pleaded guilty to one count of document fraud.
This matter was investigated by ICE Homeland Security Investigations and the U.S. Department of Labor, Office of Inspector General. 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]Newtown Man Admits Producing Child PornographyRead the Press Release
February 13, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that EDWARD F. WILSON, 29, of Newtown, pleaded guilty today before United States Magistrate Judge Thomas P. Smith in Hartford to one count of production of child pornography.
According to court documents and statements made in court, in approximately 2011 and 2012, WILSON sexually abused a female child, filmed and photographed the abuse with an iPhone and maintained the videos and images on his home computer. The victim was approximately four years old at the time of the abuse.
In addition to filming, photographing and maintaining videos and images of the sexual abuse that he inflicted on the female child, WILSON traded via email hundreds of other images and videos of child pornography and maintained a collection of child pornography on his home computers.
WILSON is scheduled to be sentenced by United States District Judge Vanessa L. Bryant on May 1, 2013, at which time WILSON faces a mandatory minimum term of imprisonment of 15 years, a maximum term of imprisonment of 30 years and a fine of up to $250,000.
WILSON has been detained in state custody since his arrest on April 13, 2012, for first-degree possession of child pornography, obscenity and promoting a minor in an obscene performance. On July 10, 2012, he was arrested on 22 additional state charges, including six counts of first-degree sexual assault, five counts of fourth-degree sexual assault and 11 counts of risk of injury. The state charges are pending.
This case is being investigated by the Connecticut State Police Computer Crimes Unit, the Newtown Police Department, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant United States Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Man Sentenced to Two Years in Federal Prison for Distributing MarijuanaRead the Press Release
February 13, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that KAI JACKSON, also known as “Killer Kai,” 31, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 24 months of imprisonment, followed by two years of supervised release, for distributing marijuana.
JACKSON 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 JACKSON conspired with others to purchase and redistribute between 2.5 and five kilograms of marijuana.
JACKSON has been detained since his arrest on May 22, 2012. On November 16, 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]Hartford Man Involved in Crack Distribution Ring Sentenced to Four Years in Federal PrisonRead the Press Release
February 13, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that EARL DAVIS, 54, of Hartford, was sentenced today by United States District Judge Janet C. Hall in New Haven to 48 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, Dana Adams and others supplied crack cocaine to numerous street-level dealers, including gang members, who primarily distributed the drug in the area of Enfield Street in Hartford. Adams utilized lower-level dealers, including DAVIS, to bring customers to him in exchange for money or a quantity of crack cocaine. DAVIS would also provide information to Adams regarding police activity in the area. DAVIS was regularly intercepted on court-authorized wiretaps discussing drug trafficking activity and facilitating the distribution of crack cocaine.
DAVIS has been detained since his arrest on May 8, 2012. On November 28, 2012, he pleaded guilty to one count of using a telephone to facilitate a drug trafficking felony.
On January 31, 2013, Adams was sentenced to 156 months of imprisonment for distributing crack cocaine and for violating the conditions of his supervised release from a previous federal conviction.
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]Connecticut Man Sentenced to More Than 15 Years in Federal Prison for Operating Mortgage Fraud SchemeRead the Press Release
February 12, 2013The United States Attorney for the District of Connecticut announced that WILLIAM A. TRUDEAU, JR., 50, Norwalk, was sentenced today by United States District Judge Janet C. Hall in New Haven to 188 months of imprisonment, followed by five years of supervised release, for operating a mortgage fraud scheme in Fairfield County. In addition, TRUDEAU’s wife, HEATHER BLISS, 37, was sentenced today to 30 months of imprisonment, followed by three years of supervised release, for her role in the scheme. BLISS was also ordered to pay a fine of $12,500.
On October 9, 2012, a jury found Trudeau guilty of one count of conspiracy to commit bank fraud, mail fraud and wire fraud, and one count of wire fraud. On July 30, 2010, BLISS pleaded guilty to one count of conspiracy to commit wire fraud.
According to the evidence and witness testimony during TRUDEAU’s trial, in 2004, TRUDEAU and Joseph Kriz, a real estate attorney in Wilton, formed Aspetuck Building & Development through which TRUDEAU, Kriz and others intended to purchase, develop and sell properties. TRUDEAU was an unnamed principal in the business. BLISS was employed as a paralegal for Kriz and, in that capacity, had responsibility for preparing and maintaining all legal and bank documents related to real estate transactions handled by Kriz.
From approximately February 2004 to April 2010, TRUDEAU conspired with BLISS, Kriz, Fred Stevens, Thomas Preston and others to defraud federally insured financial institutions and mortgage lenders. As part of the scheme, TRUDEAU and his co-conspirators submitted false mortgage loan applications to financial institutions to obtain mortgages on various properties in Fairfield County in order to develop and sell the properties for profit, and to pay off debts owed to “hard money” lenders from whom they had previously obtained high interest loans. The mortgage applications, which included false income information and omitted the mortgage applicants’ true indebtedness, caused the financial institutions to issue mortgage loans on properties that TRUDEAU and his co-conspirators would not have otherwise been qualified to purchase, allowing the applicants to qualify for mortgages that far exceeded their ability to repay the loans.
As a paralegal, BLISS prepared and maintained numerous fraudulent mortgage documents involved in the scheme. She also overstated her income on mortgages for which she had personally applied, and applied for new mortgages within 60 days of receiving prior mortgages knowing that the earlier mortgage would not be revealed when BLISS’s credit report was run by the financial institution to which she applied.
BLISS also nominally owned Huntington South Associates, LLC, a shell company that TRUDEAU used to pay for personal expenses and to secure loans fraudulently. During the scheme, BLISS used mortgage funds that were wired into Huntington South Associates’ bank account as her “business income” on mortgage loan applications in order to qualify for additional mortgages, including a $1.3 million mortgage on a property in Westport.
As a result of a 2003 federal conviction for fraud and tax offenses, TRUDEAU was prohibited from owning or operating any business that was not in his own name, from incurring new credit charges or opening additional lines of credit without prior approval from the U.S. Probation Office, and he was required to release all of his financial information to the Probation Office. He also was ordered to pay more than $450,000 in restitution. According to the evidence and testimony at his trial, TRUDEAU’s name did not appear on any documentation related to the loans or the properties for which the loans were obtained, and money was hidden in bank accounts that were not in TRUDEAU’s name in part to prevent the collection of his court-ordered restitution.
Toward the end of the conspiracy, TRUDEAU, with the assistance of others, sought additional monies from a private lender purportedly to complete construction on one of the properties. TRUDEAU claimed to have a signed purchase contract for the property when, in truth, he did not. The evidence at trial established that TRUDEAU took the money for uses unrelated to the completion of the property.
Through this scheme, TRUDEAU and his co-conspirators fraudulently obtained more than $4 million in mortgage loans to purchase six properties in Westport and Newtown. To date, mortgage lenders have lost more than $1.9 million. In addition, during the scheme, TRUDEAU defrauded private lenders of a total of more than $1 million, and Kriz stole approximately $3.5 million from his IOLTA account. More than $1.2 million of the stolen IOLTA account funds were deposited into the bank account of Huntington South Associates and used during the conspiracy.
TRUDEAU and BLISS will be ordered to pay restitution of more than $4.2 million.
TRUDEAU, whose criminal history includes approximately 13 felony convictions, has been detained since August 9, 2011, when his bond was revoked.
Kriz, Stevens and Preston have pleaded guilty to charges related to their involvement in this scheme and await sentencing.
This matter was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Rahul Kale and Christopher Schmeisser.
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]Former Owner of Bolton Flooring Business Pleads Guilty to Federal Tax ChargeRead the Press Release
February 6, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that ALAN MISKUNAS, 51, of Hebron, waived his right to indictment and pleaded guilty today before United States District Judge Michael P. Shea in Hartford to one count of filing a false tax return. MISKUNAS formerly owned Bolton Flooring Center in Bolton.
According to court documents and statements made in court, during the 2003 and 2004 tax years, MISKUNAS filed income tax returns with the Internal Revenue Service that under-reported Bolton Flooring Center’s gross business receipts by approximately one-half, resulting in his failure to pay more than $64,000 in personal income taxes due on that unreported income. MISKUNAS also did not file tax returns for the 2005 and 2006 tax years and failed to pay more than $88,000 in taxes owed for those years.
Judge Shea has scheduled sentencing for May 2, 2013, at which time MISKUNAS faces a maximum term of imprisonment of three years and a fine of up to $250,000. MISKUNAS also must make restitution to the IRS totaling more than $152,000, plus applicable interest and penalties.
This matter was investigated by the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Henry K. Kopel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Three Men Charged with Drug and Firearm Offenses After Fbi Hartford Gang Task Force InvestigationRead the Press Release
February 5, 2013David 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 FBI, announced that a federal grand jury in Hartford returned a 17-count indictment today charging VINCENT NELSON, also known as “June,” 27, of Hartford, STEVEN GRANGER, 27, of Hartford, and HECTOR ALFONSO, 31, of East Hartford, with various narcotics distribution and firearms possession offenses.
The matter stems from an investigation led by the FBI’s Northern Connecticut Violent Crimes Gang Task Force, which includes representatives of the FBI, Connecticut State Police, the Hartford Police Department and the Connecticut Department of Correction, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The indictment alleges that between November 2012 and January 2013, NELSON and GRANGER conspired to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”). The indictment also charges NELSON and GRANGER with multiple counts and ALFONSO with one count of possession with intent to distribute, and distribution of, various quantities of crack cocaine. NELSON is also charged with one count of possession with intent to distribute heroin and one count of possession with intent to distribute cocaine.
In addition, the indictment charges NELSON with possessing three firearms in furtherance of a drug trafficking crime, and with possession of firearms and ammunition by a convicted felon. GRANGER is also charged with one count of possession of ammunition by a previously convicted felon.
NELSON, GRANGER and ALFONSO have been detained since their arrests on January 23, 2013. On that date, court-authorized searches of NELSON’s residence at 2 Warner Street Extension and GRANGER’s residence at 52 Elliott Street resulted in the seizure of three handguns, assorted ammunition, body armor, approximately 500 grams of crack cocaine, approximately 170 grams of cocaine and more than $45,000 in cash.
The indictment seeks the forfeiture of the seized firearms, ammunition and cash, as well as two vehicles.
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 Attorney Brian P. Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Newington Man Admits Stealing Firearms from Colebrook ResidenceRead the Press Release
February 5, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that MICHAEL KENNEDY, also known as “Chavo,” 25, of Newington, pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to one count of possession of firearms by a previously convicted felon.
According to court documents and statements made in court, on May 9, 2011, KENNEDY and Edward N. Ortiz, also known as “Heavy,” of New Britain, entered a residence in Colebrook and stole 12 firearms. The investigation has revealed that the majority of the stolen firearms were later sold to others, including street-level drug dealers.
Prior to May 2011, KENNEDY had been convicted of multiple felony offenses, including possession of narcotics, robbery, larceny and violation of a protection order.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
KENNEDY is scheduled to be sentenced by United States District Judge Robert N. Chatigny on April 30, 2013, at which time KENNEDY faces a maximum term of imprisonment of 10 years and a fine of up to $250,00.
KENNEDY is currently detained in state custody on unrelated charges.
On September 27, 2012, Ortiz pleaded guilty to one count of conspiracy to steal firearms and possess stolen firearms, and one count of possession of firearms by a previously convicted felon. He awaits sentencing and is also detained.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police and the New Britain Police Department. The case is being prosecuted by Assistant United States Attorney Jonathan S. Freimann.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Man Who Robbed New Haven Bank Sentenced to Nine Years in Federal PrisonRead the Press Release
February 5, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that DOUGLAS HUTCHINGS, 41, of New Haven, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 108 months of imprisonment, followed by three years of supervised release, for bank robbery.
According to court documents and statements made in court, on March 8, 2012, HUTCHINGS entered the TD Bank located at 466 Foxon Boulevard in New Haven, approached a teller and handed her a note stating “Please just the money No gets hurt.”
After the teller provided HUTCHINGS with $7,444 in U.S. currency, HUTCHINGS ran out of the bank and entered the driver’s side of a minivan. He then drove away at a high rate of speed and engaged New Haven Police officers in a chase that ended when the minivan crashed in the vicinity of Hallock Street and Colombus Avenue in New Haven. HUTCHINGS was apprehended a short distance from the accident scene.
HUTCHINGS has been detained since his arrest on March 8, 2012. On August 6, 2012, he pleaded guilty to one count of bank robbery.
HUTCHINGS’s extensive criminal history includes convictions for manslaughter, assault, larceny and arson.
This matter was investigated by the Federal Bureau of Investigation and the New Haven Police Department. The case was prosecuted by Assistant United States Attorney Anthony E. Kaplan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Middlefield Resident Sentenced to 20 Years in Federal Prison for Possessing Child PornographyRead the Press Release
February 5, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that RICHARD C. POUPART, 53, formerly of Middlefield, Conn., and Newport, Maine, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 240 months of imprisonment, followed by a lifetime term of supervised release, for possessing child pornography. The penalties in this matter were enhanced based on POUPART’s previous conviction for sexual assault of a minor.
“This defendant has a history of sexually assaulting minors, and this significant sentence will protect children from future harm,” stated U.S. Attorney Fein. “I commend the U.S. Postal Inspection Service and the Shelton and Milford Police Departments for their expert investigation of this matter.”
According to court documents and statements made in court, in September 2007, members of the Shelton Police Department executed a state search warrant at POUPART’s Middlefield residence and seized computers, zip drives, compact discs and other electronic storage media. Subsequent forensic examination of the seized items revealed images and videos of child pornography, including images that POUPART took of one of his minor female relatives in 2003.
On June 17, 1991, POUPART was convicted in Vermont state court of sexually assaulting a 14-year-old girl.
On July 15, 2009, in Connecticut Superior Court in Derby, POUPART was convicted of two counts of sexual assault in the fourth degree. The two victims in that case were POUPART’s minor female relatives, and the conduct occurred in 2006 and 2007.
POUPART has been detained in federal custody since August 6, 2010. On May 25, 2012, he pleaded guilty to one count of possession of child pornography.
This matter was investigated by the United States Postal Inspection Service, the Shelton Police Department and the Milford Police Department. The case was prosecuted by Assistant United States Attorneys Anastasia King and Neeraj Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Ridgefield Woman Charged with Embezzling from Fairfield Housing AuthorityRead the Press Release
February 1, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned an indictment charging ELIZABETH JO GUTIERREZ, 47, of Ridgefield, with one count of theft concerning programs receiving federal funds. The indictment alleges that GUTIERREZ embezzled $30,000 from the Fairfield Housing Authority.
The indictment was returned on January 23, 2013, and GUTIERREZ appeared yesterday before United States Magistrate Judge Donna F. Martinez in Hartford, pleaded not guilty to the charge and was released on a $50,000 bond.
The Fairfield Housing Authority administers federal housing programs for the U.S. Department of Housing and Urban Development with the mission of providing affordable housing for eligible low-income families and the elderly. According to the indictment, GUTIERREZ served as the Executive Director of the Fairfield Housing Authority from approximately July 2010 to December 2011. In the summer of 2011, GUTIERREZ issued two checks, each in the amount of $15,000, from the Fairfield Housing Authority’s checking account and subsequently deposited them into her own checking account.
The charge of theft concerning programs receiving federal funds carries a maximum term of imprisonment of 10 years.
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.
The case has been assigned to United States District Judge Robert N. Chatigny in Hartford.
This matter is being investigated by the Department of Housing and Urban Development – Office of Inspector General. The case is being prosecuted by Special Assistant United States Attorney Sean Beaty.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Head of New Haven Narcotics Trafficking Ring Pleads GuiltyRead the Press Release
February 1, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that JOSEPH JACKSON, also known as “Mighty” and “M.I.,” 37, of New Haven, pleaded guilty today before United States Magistrate Judge Joan G. Margolis in New Haven to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack cocaine”).
This matter stems from a joint law enforcement investigation conducted in 2010 by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug trafficking organization that was headed by JACKSON and centered in the Newhallville section of New Haven and Hamden. At the time, JACKSON was one of the principal suppliers of crack cocaine in and around New Haven. The investigation revealed that JACKSON purchased multiple kilograms of cocaine from various sources of supply, and then converted a large majority of the cocaine into crack cocaine. JACKSON then provided distribution quantities of crack to others who sold it on his behalf and gave the proceeds to JACKSON. At times, JACKSON sold crack and powder cocaine to his own customers.
JACKSON was arrested on October 28, 2010. On that date, federal agents executed search warrants at various locations, including JACKSON’s residence on Winchester Avenue in New Haven and a West Haven apartment that JACKSON used to process, store and package narcotics. A search of the Winchester Avenue residence revealed a Taurus .40 caliber pistol with an obliterated serial number, crack cocaine and cash. A search of the West Haven apartment revealed one kilogram of cocaine, 150 grams of crack packaged for distribution, multiple cell phones, drug packaging materials and cash.
JACKSON is scheduled to be sentenced by Senior United States District Judge Ellen Bree Burns on May 2, 2013, at which time JACKSON faces a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
If the binding plea agreement filed today is accepted by the Court, JACKSON will be sentenced to 25 years of imprisonment.
JACKSON also has agreed to forfeit two automobiles and two motorcycles seized during the investigation.
Forty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation.
This matter was investigated by the FBI New Haven Safe Streets Task Force (composed of members of the New Haven, Milford and Hamden Police Departments and the Connecticut Department of Correction), the Drug Enforcement Administration’s New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments. The United States Marshals Service also has assisted the investigation.
The investigation was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs.
This matter is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Hartford Crack Dealer Sentenced to 13 Years in Federal PrisonRead the Press Release
February 1, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that DANA ADAMS, also known as “Soul,” 42, of Hartford, was sentenced yesterday by United States District Judge Janet C. Hall in New Haven to 156 months of imprisonment, followed by five 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, ADAMS and others supplied crack cocaine to numerous street-level dealers, including gang members, who primarily distributed the drug in the area of Enfield Street in Hartford. On April 19, 2012, searches of residences on Bellevue, Enfield, Townley and Sharon Streets in Hartford, all of which ADAMS was suspected of using for his drug trafficking activities, revealed crack cocaine, drug paraphernalia, narcotics packaging materials and cash.
ADAMS’s criminal history includes multiple felony narcotics convictions, including a previous federal conviction in 2004 related to his distribution of crack cocaine in Hartford. ADAMS was incarcerated for more than four years on that conviction, and he was serving a term of supervised release at the time of this most recent offense.
ADAMS has been detained since his arrest on April 19, 2012. On November 6, 2012, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack cocaine”).
Judge Hall sentenced ADAMS to 138 months of imprisonment for conspiring to distribute crack cocaine, and a consecutive 18-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]East Hampton Man Charged with Placing Fake Bomb in Front of East Hampton Middle SchoolRead the Press Release
February 1, 2013David 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 FBI, today announced that a federal grand jury in Hartford returned an indictment yesterday charging SEAN DORAN, 20, of East Hampton, with one count of intentionally conveying false or misleading information and a hoax by leaving a fake bomb device at the front doors of East Hampton Middle School in East Hampton on January 12, 2013.
The indictment was unsealed today during DORAN’s initial appearance and arraignment before United States Magistrate Judge Donna F. Martinez in Hartford. DORAN pleaded not guilty to the charge and was released on a $50,000 bond.
“As alleged, the defendant purposefully placed a fake bomb right at the door of a Connecticut middle school,” stated U.S. Attorney Fein. “Hoaxes threaten the sense of security that children and teachers are entitled to enjoy in their school. This indictment should be a clear signal that all threats to schools will be vigorously investigated by my office.”
“The indictment of Mr. Doran should be a warning to those individuals who choose to disrupt and threaten everyday public life, hoax or no hoax,” stated FBI Special Agent in Charge Mertz. “Placing a hoax bomb in a public location is criminal. Placing it outside a school is absolutely appalling. The FBI and its law enforcement partners will work tirelessly to bring to justice those responsible for such criminal conduct.”
If convicted of the charge, DORAN faces a maximum term of imprisonment of five years and a fine of up to $250,000.
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.
The case has been assigned to Chief United States District Judge Alvin W. Thompson in Hartford.
This matter is being investigated by the Federal Bureau of Investigation’s JTTF, the East Hampton Police Department, the New Haven Police Department and the Connecticut State Police. The case is being prosecuted by Special Assistant United States Attorney Anjna R. Kapoor.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Stratford Doctor Pays $700,000 to Settle False Claims Act AllegationsRead the Press Release
January 31, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that JAMES P. RALABATE, MD, a physician, and his professional corporation, PRIMARY CARE ASSOCIATES P.C., which is located at 2890 Main Street in Stratford, have entered into a civil settlement with the government in which they will pay $700,000 to resolve allegations that RALABATE violated the False Claims Act.
The allegations against RALABATE involve fraudulent billing to Medicare occurring over a five-year period for medical services allegedly provided at various nursing homes in Connecticut. The government alleges that RALABATE billed Medicare for high-level physician services when the services of a physician were not medically necessary. The medical records did not provide documentation necessary to meet the detailed history, examination or medical decision-making requirements necessary to justify the high level of physician care. At times, there was no medical record documenting RALABATE’s visit.
The government further alleges that RALABATE billed Medicare for services he supposedly provided to patients in nursing homes when the patients were, in fact, not present in the nursing homes. Instead, the patients had been transferred to local hospitals for treatment. Yet RALABATE billed government health care programs as if he had provided medical services in the nursing homes.
To resolve their liability under the False Claims Act, RALABATE and his professional corporation will pay $700,000 in order to reimburse the Medicare programs for conduct occurring between January 1, 2006 and August 31, 2011.
In addition, RALABATE has agreed to be subject to an Integrity Agreement with the Office of Inspector General for the U.S. Department of Health and Human Services.
“Health care providers that overcharge Medicare drain critical funds from the Medicare program and increase health care costs,” U.S. Attorney Fein stated. “The U.S. Attorney’s office is committed to vigorously pursuing physicians and other health care providers who submit fraudulent claims to federal health care programs. Providers who submit false claims to the government face serious monetary and administrative sanctions.”
Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $5,500 to $11,000 for each false claim.
This case was investigated by the Office of Inspector General for the U.S. Department of Health and Human Services. The case was prosecuted by Assistant United States Attorney Anne F. Thidemann, with the assistance of Auditor Kevin A. Saunders.
In entering into the settlement agreement, RALABATE and PRIMARY CARE ASSOCIATES P.C. did not admit liability.
U.S. Attorney Fein encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force 203-777-6311 or 1-800-HHS-TIPS.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Newington Resident Charged with Orchestrating Extensive Mortgage Fraud SchemeRead the Press Release
January 31, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that FILIPPOS (“FILIP”) MILIOS, 54, of Newington, was arrested today on a federal criminal complaint charging him with bank fraud stemming from his alleged involvement in an extensive mortgage fraud scheme in the greater Hartford area.
According to statements made in court, it is alleged that MILIOS led and organized a multi-year mortgage fraud scheme to purchase and sell houses using straw borrowers and false or fictitious loan applications, employment verifications, bank statements, and pay stubs. MILIOS purchased numerous homes and then sold them at a significantly higher sales price to straw borrowers that he and his co-conspirators recruited. In addition, it is alleged that MILIOS used his own funds to make the down payments on behalf of the borrowers, and that he made payments outside of closing to the straw borrowers and his co-conspirators.
This alleged scheme involved more than 40 fraudulent mortgages exceeding $10 million and losses exceeding $5 million.
Following his arrest this morning, MILIOS appeared before United States Magistrate Judge Donna F. Martinez in Hartford and was released on a $100,000 bond.
U.S. Attorney Fein noted that the investigation into these alleged schemes is ongoing and asked individuals who have information that may helpful to the investigation to contact the U.S. Department of Housing and Urban Development – Office of Inspector General at (860) 240-4800.
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.
This case is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service, and the United States Postal Inspection Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney David T. Huang and Paul H. McConnell.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]Head of Debt Collection Agency Sentenced to Five Years in Prison for Role in Multi Million Fraud SchemeRead the Press Release
January 30, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that RICHARD PINTO, 68, of Wellington, Fla., was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by five years of supervised release, for his role in a mulitimillion dollar fraud scheme at Oxford Collection Agency, where PINTO served as Chairman of the Board. Judge Underhill also ordered to PINTO to serve the first three years of his supervised release in home confinement, and to pay restitution of approximately $12.3 million.
“Over several years, this defendant orchestrated a substantial fraud through which his company stole millions of dollars from clients, lenders and investors,” stated U.S. Attorney Fein. “We are committed to working with IRS-Criminal Investigation, the FBI, SIGTARP, and the other members of the Connecticut Securities, Commodities and Investor Fraud Task Force to root out financial fraud and prosecute responsible individuals.”
According to court documents and statements made in court, Oxford Collection Agency (“Oxford”) was a private financial services company that engaged in accounts receivables management, primarily debt collecting, with offices in New York, Pennsylvania and Florida. Businesses and other entities contracted with Oxford to collect debts on their behalf. Oxford’s clients included, among others, an educational institution, a laboratory, a computer company and various banks. Oxford collected debts from consumers under the pretense that it would report all such collections to its clients and remit the appropriate amount to the client. However, PINTO and other Oxford executives routinely caused Oxford to collect debts that were never remitted to its clients. The co-conspirators referred to these unremitted collections as a client’s “backlog.” To hide the backlog, co-conspirators would make periodic fraudulent collection reports to certain clients that under-reported the amount of funds collected. PINTO and others diverted various funds from their client remittances and used them for their own ends.
Certain co-conspirators also transferred money from one client trust account to another client account, from Oxford’s operating account to a client account, or from a client account to Oxford’s operating account to cover various shortfalls and backlogs or to improperly use collections to directly fund Oxford’s operations.
Starting in April 2007, Oxford secured a line from credit from Connecticut-based Webster Bank, a bank that received funds through the Troubled Asset Relief Program (TARP), without informing Webster Bank about its significant client backlogs or outstanding payroll taxes. PINTO and others sent falsified financial statements to Webster Bank, eventually increasing the credit line to $6 million, and laundered funds from the credit line to promote the ongoing fraud scheme against their clients. During that same period, PINTO and others also solicited millions of dollars in investments from various investors, without ever disclosing to their investors the existence of their backlogs. Some of the investor funds were deposited into PINTO’s personal bank account without investor knowledge.
Oxford’s victims lost more than $12 million as a result of this scheme.
The investigation also has revealed that Oxford sometimes obtained and retained business with its banking clients by paying bribes and kickbacks to bank officials.
On May 11, 2012, PINTO pleaded guilty to one count of conspiracy to commit wire fraud, bank fraud and money laundering, and one count of wire fraud.
Four other Oxford executives including PINTO’s son, Chief Executive Officer Peter Pinto, Vice-President of Finance and Chief Financial Officer Randall Silver, Executive Vice President Charles Harris, and Chief Operations Officer Carlos Novelli, have pleaded guilty to charges stemming from this scheme. They await sentencing.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Connecticut Securities, Commodities and Investor Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney Liam Brennan, Special U.S. Attorney John McReynolds and Deputy U.S. Attorney Deirdre Daly.
In December 2010, the U.S. Attorney’s Office and several law enforcement and regulatory partners announced the formation of the Connecticut Securities, Commodities and Investor Fraud Task Force, which is investigating matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Felon Who Possessed Loaded Sawed-off Rifle in New Haven Sentenced to 63 Months in Federal PrisonRead the Press Release
January 30, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that JOSEPH DONABY, also known as “Bummy Jack,” 32, of New Haven, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 63 months of imprisonment, followed by three years of supervised release, for possessing a loaded sawed-off rifle.
According to court documents and statements made in court, on June 23, 2011, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) received information that an individual known as “Bummy Jack” was attempting to sell a sawed-off shotgun for $350. At the direction of law enforcement, an individual called Bummy Jack’s cell phone to arrange a meeting in the area of Whalley Avenue and Blake Street in New Haven to conduct a transaction of the firearm. However, in the late afternoon of June 23, while they were en route to the meet location, ATF Task Force Officers heard radio transmissions related to the arrest of an individual who was in possession of a sawed-off firearm in the area of the designated meet location.
At approximately 6:00 p.m. on June 23, New Haven Police Department Dispatch notified officers via police radio that “Shot Spotter” had detected one gun shot on Blake Street in between Osborn Avenue and Diamond Street. Shot Spotter is a computerized system that has sensors throughout New Haven capable of detecting the location of gun shots through the monitoring of sound waves. New Haven Police officers responding to the area saw DONABY walking quickly on Blake Street across Osborn Avenue. As officers approached DONABY, he began to run. DONABY then removed a large brown and black firearm from his waist area in the vicinity of 96 Blake Street, refused orders to “drop the gun,” and threw the firearm over a fence. He then attempted to climb the fence and made further attempts to resist arrest before he was ultimately subdued by officers and placed under arrest.
New Haven Police subsequently recovered a sawed-off Weatherby, model Mark XXII, .22 caliber semi-automatic rifle, loaded with seven rounds of ammunition, in the area where DONABY had discarded a firearm.
Further investigation revealed that the number of a cell phone that was in DONABY’s possession at the time of his arrest is the same number used by ATF Task Force officers to arrange the firearm transaction with Bummy Jack earlier that day.
Prior to June 2011, DONABY had sustained several state convictions and a federal conviction for possession of a firearm by convicted felon. 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.
DONABY has been incarcerated since his arrest on June 23, 2011. On November 15, 2012, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. The case was prosecuted by Assistant United States Attorney Tracy Lee Dayton.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Bridgeport Men Involved in Gang-related Narcotics Trafficking Sentenced to PrisonRead the Press Release
January 30, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that two men involved in a violent narcotics trafficking ring in Bridgeport were sentenced earlier this week in New Haven federal court to lengthy prison terms.
On January 28, United States District Judge Janet Bond Arterton sentenced STEFAN WINSTON, also known as “Cuda” and “Pooh,” 31, to 165 months of imprisonment and five years of supervised release. On January 29, Judge Arterton sentenced ALEXIS RAMOS, also known as “Snake Rattle,” 31, to 100 months of imprisonment and four years of supervised release.
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.
According to court documents and statements made in court, WINSTON, RAMOS and others were members of the Sex, Money, Murder set of the Marina Village Bloods and 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, gang members 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 investigation revealed that, in addition to narcotics trafficking, WINSTON was involved in the straw purchase of two firearms, and also possessed and used firearms on a regular basis. At the time of his arrest on January 5, 2011, WINSTON possessed an assault rifle and a handgun, both of which were loaded.
On August 16, 2011, WINSTON pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and 28 grams or more of cocaine base (“crack cocaine”). His criminal history includes multiple felony convictions, including convictions for unlawful possession of a firearm and armed robbery.
On August 14, 2012, RAMOS pleaded guilty to one count of conspiracy to possess with intent to distribute 28 grams or more of cocaine base. His criminal history includes multiple convictions for sale and possession of narcotics and possession of weapons.
WINSTON and RAMOS 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, 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]New Haven Man Sentenced to 70 Months in Federal Prison for Distributing HeroinRead the Press Release
January 29, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that QUIYON REED, also known as “Gutter,” 29, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 70 months of imprisonment, followed by four years of supervised release, for distributing heroin.
REED 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.
According to court documents and statements made in court, in the fall of 2011, REED assisted a co-defendant’s large-scale drug trafficking operation. REED packaged heroin for street sale and served his co-defendant’s drug customers. The investigation also revealed that REED had access to firearms stored at one of his co-defendant’s residences.
REED has been detained since his arrest on May 17, 2012. On October 25, 2012, he pleaded guilty to one count of conspiracy to distribute 100 grams or more of heroin.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided invaluable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Citizen of Jamaica Admits Illegally Reentering the U.S. After DeportationRead the Press Release
January 29, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that HAROLD ANTHONY SOLTAU, 43, a citizen of Jamaica last residing in Bridgeport, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Thomas P. Smith in Hartford to one count of illegal reentry of a removed alien.
According to court documents and statements made in court, SOLTAU was deported from the United States to Jamaica in June 1990 after he was convicted of a felony drug trafficking offense. He subsequently 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.
SOLTAU has been detained since his arrest on July 31, 2012.
SOLTAU is scheduled to be sentenced by Senior United States District Judge Alfred V. Covello on April 23, 2013, at which time SOLTAU faces a maximum term of imprisonment of 20 years.
This case was investigated by U.S. Immigration and Customs Enforcement and is being prosecuted by Assistant United States Attorney Felice M. Duffy.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former East Hampton Teacher Sentenced to 10 Years in Prison for Child Sexual Exploitation OffensesRead the Press Release
January 28, 2013David B. Fein, United States Attorney for the District of Connecticut, and Bruce M. Foucart, Special Agent in Charge of Homeland Securities Investigations (HSI) Boston, announced that RICHARD D. HENDRICKS, 32, of Ashford, was sentenced today by Senior United States District Judge Ellen Breen Burns in New Haven to 121 months of imprisonment, followed by five years of supervised release, for child sexual exploitation offenses. HENDRICKS was formerly employed as a computer teacher at the East Hampton Middle School in East Hampton, Conn.
“This solemn but important prosecution revealed that the defendant, a middle school teacher, paid for and viewed live webcasts showing the sexual abuse of children overseas, and voyeuristically photographed and videotaped female students in his classroom,” said U.S. Attorney Fein. “His criminal behavior represents an extreme violation of trust, which we at the U.S. Attorney’s Office, along with our law enforcement investigative partners, are committed to combatting.”
“The receipt and of possession of child pornography by a teacher is one of the most heartbreaking violations of trust imaginable,” said HSI Special Agent in Charge Foucart. “We have an obligation to ensure that individuals who hold positions of trust in our community are held accountable for their actions. Today’s sentence is a stern reminder about the consequences awaiting those who use the Internet to sexually exploit innocent children.”
According to court documents and statements made in court, a national HSI investigation revealed that HENDRICKS purchased Internet access to live sex shows involving minors from approximately October 2009 to April 2010. The abusive shows originated in the Philippines.
On June 6, 2011, HSI agents seized two laptop computers, one desktop computer and two external hard drives from HENDRICKS’s residence. Subsequent forensic evaluation revealed that HENDRICKS used his computer to receive numerous images and video files of child pornography, including images of children under the age of 12, and images portraying sadistic or masochistic conduct or other depictions of violence.
Investigators also discovered numerous images and videos of HENDRICKS’ students at East Hampton Middle School. While many of the pictures were related to HENDRICKS’ duties as yearbook advisor, investigators discovered that HENDRICKS secretly took voyeuristic photos and videos of female students in his classroom. He also manipulated some of these images to enhance their visibility, and used a software program to attempt to visualize the private areas of clothed girls.
During the course of the investigation, parental notification was made when investigators identified children who HENDRICKS secretly photographed or video recorded. With parental consent, agents conducted dozens of forensic interviews of the children.
HENDRICKS has been detained since his arrest on June 9, 2011. On January 19, 2012, he pleaded guilty to one count of receipt of child pornography.
This matter was investigated Homeland Security Investigations, with the assistance of the Connecticut State Police and the East Hampton Police Department. The case was prosecuted by Assistant United States Attorneys Ray Miller and Deborah Slater.
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]Connecticut Rmbs Trader Charged with Securities Fraud, Defrauding Tarp ProgramRead the Press Release
January 28, 2013David B. Fein, United States Attorney for the District of Connecticut, and Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), announced that a federal grand jury sitting in New Haven has returned a 16-count indictment charging JESSE C. LITVAK, 38, of New York, N.Y., with securities fraud, Troubled Asset Relief Program (TARP) fraud and making false statements to the federal government. The indictment alleges that LITVAK, while a registered broker-dealer and managing director at Jefferies & Co., Inc., engaged in a scheme to defraud customers on residential mortgage-backed securities (RMBS) trades. LITVAK’s victims are alleged to have included numerous investment funds, including six funds that the Department of Treasury established in 2009, as part of the federal government’s response to the financial crisis.
The indictment was returned on January 25, 2013, and LITVAK was arrested at his home this morning by SIGTARP agents.
This prosecution has been brought in coordination with the RMBS Working Group, and relates to alleged fraud committed against the government in response to the financial crisis through the pooling and sale of RMBS. The RMBS Working Group is a joint federal and state initiative created last year to investigate those responsible for misconduct contributing to the financial crisis. RMBS were pools of mortgages deposited into trusts and then sold as securities to investors who were to receive a stream of income from the mortgages packaged in the RMBS.
“As alleged, the defendant defrauded six funds established by Treasury and funded principally with government bailout money,” said U.S. Attorney Fein. “Illegally profiting from a federal program designed to assist our nation in recovering from one of our worst economic crises is reprehensible. I commend SIGTARP for its diligent work on this ongoing investigation. The U.S. Attorney’s Office and our RMBS Working Group partners are committed to investigating fraud and abuse that helped lead to the 2008 financial crisis, as well any fraud related to the government’s response to the crisis.”
“As most Americans tried to keep their heads above water during the financial crisis, Jesse Litvak is charged with trying to profit from the taxpayer-funded bailout known as TARP,” said Special Inspector General for TARP Christy Romero. “The charges paint a picture of Litvak shamelessly lying to dupe the Government into overpaying for mortgage securities with bailout funds. Today’s charges should stand as a warning to all who target bailout money: We will work with our partners to uncover and stop bailout crime, and to investigate, prosecute, and punish those responsible. I want to commend United States Attorney David Fein for his commitment to fighting TARP-related crime.”
As detailed in the indictment, in 2009, the U.S. Department of Treasury began the Legacy Securities Public-Private Investment Program (PPIP), in response to the financial crisis, using more than $22 billion of bailout money from TARP to restart the trading market for certain kinds of RMBS, among other troubled securities. Over 100 firms applied to manage one of the nine PPIP funds established under the program, each of which received between $1.4 billion and $3.7 billion of bailout money from TARP to invest alongside private capital.
According to the indictment, LITVAK was a senior trader and managing director at Jefferies & Co, Inc. (“Jefferies”), a global securities and investment banking firm headquartered in New York. Jefferies also has a trading floor in Stamford, Conn., where LITVAK and other members of its Mortgage and Asset-Backed Securities trading group worked. The indictment alleges that LITVAK engaged in a scheme to defraud based on two different types of misrepresentations. In certain transactions, LITVAK misrepresented the RMBS seller’s asking price to the buyer, or misrepresented the buyer’s price to the seller, keeping the difference between the price paid by the buyer and the price paid to the seller for Jefferies. In other transactions, LITVAK misrepresented to the RMBS buyer that bonds held in Jefferies’ inventory were being offered for sale by a fictitious third-party seller invented by LITVAK, which allowed LITVAK to charge the buyer an extra commission that Jefferies was not entitled to.
Through these schemes, it is alleged that LITVAK defrauded six PPIP funds and multiple private investment funds of a total of more than $2 million.
The indictment charges LITVAK with 11 counts of securities fraud, which carry a maximum term of imprisonment of 20 years on each count, one count of TARP fraud, which carries a maximum term of imprisonment of 10 years, and four counts of making false statements to the federal government, which carry a maximum term of imprisonment of five years on each count.
The case is assigned to United States District Judge Janet C. Hall in New Haven.
Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group, a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis. The RMBS Working Group, which is chaired by Attorney General Eric Holder, brings together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, ten U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission, the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the Federal Housing Finance Agency’s Office of Inspector General, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and more than ten state Attorneys General offices around the country.
This case is being prosecuted by Assistant United States Attorneys Jonathan Francis and Eric Glover.
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.
The RMBS Working Group is led by five co-chairs: Assistant Attorney General for the Justice Department’s Criminal Division Lanny Breuer, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division Stuart Delery, U.S. Attorney for the District of Colorado John Walsh, Director of Enforcement for the SEC Robert Khuzami and New York State Attorney General Eric Schneiderman. The RMBS Working Group Coordinator is Matthew Stegman. For more information about the RMBS Working Group and the 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]New Haven Drug Dealer Sentenced to More Than Five Years in Federal PrisonRead the Press Release
January 24, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that JOHNNY SERRANO, also known as “BeBe,” 24, of New Haven, was sentenced yesterday by United States District Judge Robert N. Chatigny in Hartford to 70 months of imprisonment, followed by four years of supervised release, for distributing narcotics in New Haven.
According to court documents and statements made in court, in April 2011, the Bureau of Alcohol, Tobacco, Firearms and Explosives, in conjunction with the Drug Enforcement Administration and the New Haven Police Department’s Tactical Narcotics Unit, began an intensive investigation into drug dealing in the vicinity of 36 Maltby Place in the Fair Haven section of New Haven. The investigation, which included the use of court-authorized wiretaps, law enforcement surveillance and controlled purchases of crack cocaine and cocaine from a number of individuals, revealed that SERRANO and others operated an open-air narcotics market where they sold crack cocaine, cocaine, and heroin to customers on a daily basis.
SERRANO has been detained since his arrest on November 16, 2011. On October 1, 2012, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 28 grams or more of cocaine base (“crack”) and a quantity of cocaine.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the New Haven Police Department’s Tactical Narcotics Unit. The Stamford Police Department has provided critical assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys Anthony E. Kaplan and Marc H. Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Heroin Trafficker Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
January 24, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that JUAN RUANO, 49, a citizen of Guatemala last residing in Stamford, was sentenced today by United States District Judge Janet C. Hall in New Haven to 130 months of imprisonment, followed by five years of supervised release, for trafficking heroin.
According to court documents and statements made in court, on December 19, 2011, RUANO and his wife, Saira Ruano, were arrested in the parking lot of a Windsor Locks hotel moments after taking delivery of luggage containing approximately 11 kilograms of heroin. The heroin was secreted in 15 cans marked as refried beans that had been smuggled into the United States from Guatemala City, Guatemala. A search of RUANO’s car revealed a black plastic trash bag containing $18,000 in cash intended for other members of the conspiracy who arranged the transport the heroin.
Subsequent investigation revealed that from approximately May 2010 through December 2011, more than $200,000 in currency exchanges were transacted on joint back accounts owned by RUANO and his wife.
RUANO has been detained since his arrest on December 19, 2011. On September 28, 2012, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin.
RUANO has forfeited the $18,000 seized at the time of his arrest.
On December 4, 2012, Saira Ruano pleaded guilty to structuring financial transactions to avoid currency reporting requirements. She awaits sentencing.
This matter has been investigated by the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Protection, with the assistance of the Drug Enforcement Administration.
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]Middlebury Man Admits Role in Bribery and Illegal Campaign Finance SchemeRead the Press Release
January 23, 2013David B. Fein, United States Attorney for the District of Connecticut announced that PAUL ROGERS, 40, of Middlebury, pleaded guilty today before United States Magistrate Judge Joan G. Margolis in New Haven to one count of devising a scheme to bribe a public official, and one count of conspiring to make false statements to the Federal Election Commission (“FEC”) and to impede the FEC’s enforcement of federal campaign finance laws. The charges stem 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.
ROGERS owned a RYO smoke shop with two locations in Waterbury. Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, ROGERS and others engaged in scheme to direct $27,500 in 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. ROGERS and his co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign. These individuals wrote checks to the campaign in their own names, and ROGERS and his co-conspirators reimbursed them with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.
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 four $2,500 contributions that were received and deposited by the Campaign Committee during that time period.
ROGERS is scheduled to be sentenced by United States District Judge Janet Bond Arterton on March 20, 2013, at which time ROGERS faces a maximum term of a maximum term of imprisonment of 20 years for devising a scheme to bribe a public official, and a maximum term of imprisonment of five years for conspiring to make false statements to the FEC and to impede the FEC’s enforcement of federal campaign finance laws.
ROGERS is the third defendant to plead guilty to charges related to this scheme. On July 24, 2012, Harry Raymond “Ray” Soucy pleaded guilty to one count of devising a scheme to bribe a public official, and one count of conspiring to make false statements to the FEC and to impede the FEC’s enforcement of federal campaign finance laws. On November 2, 2012, David Moffa pleaded guilty to one count of conspiring to make false statements to the FEC and to impede the FEC’s enforcement of federal campaign finance laws. Soucy and Moffa also await sentencing.
Five other individuals have been charged as a result of this investigation. 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 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]Hartford Man Pleads Guilty to Illegal Firearm Possession ChargeRead the Press Release
January 23, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that ALEXANDER GARAY, 36, of Hartford, pleaded guilty today before United States District Judge Vanessa L. Bryant in Hartford to one count of possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, on May 22, 2012, GARAY was arrested after he engaged Hartford police officers in a car chase during which he nearly hit an officer, threw bags of heroin out of his car window and forced another individual’s vehicle off the road. A subsequent search of GARAY’s vehicle revealed a Taurus 9 millimeter pistol and an additional quantity of heroin.
The firearm GARAY possessed had been reported stolen from its legal owner in 2006.
Prior to May 2012, GARAY had been convicted of multiple felony offenses, including weapon in a motor vehicle (twice), criminal possession of a firearm, sale of hallucinogens/narcotics, possession of narcotics (twice), and stealing a firearm.
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.
Judge Bryant has scheduled sentencing for March 20, 2013, at which time GARAY faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
GARAY has been detained since his arrest by Hartford Police on May 22, 2012.
This case was investigated by the Hartford Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorneys Jonathan S. Freimann and Michelle McConaghy.
The Project Safe Neighborhoods Initiative is aimed at reducing gun and gang violence, deterring illegal possession of guns, and improving the safety of residents of Connecticut’s cities.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Plainville Man Who Received and Distributed Child Pornography Sentenced to Two Years in PrisonRead the Press Release
January 18, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that STEVEN DONALD LEWIS, 23, of Plainville, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 24 months of imprisonment, followed by 10 years of supervised release, for receiving and distributing child pornography.
According to court documents and statements made in court, on November 9, 2010, a Bristol Police Department detective assigned to the Connecticut Computer Crimes Task Force in New Haven logged into a publicly available Internet file sharing program and downloaded 34 images of child pornography from a shared directory maintained by LEWIS. On December 8, 2010, LEWIS was arrested at his dormitory residence at the University of Connecticut. On that date, law enforcement agents also seized LEWIS’s laptop computer.
Analysis of the seized computer revealed thousands of images and videos of child pornography. Included in his collection of child pornography were images of children under the age of 12 engaged in sexually explicit conduct. Forensic review also revealed that LEWIS distributed child pornography images and videos through the file sharing program located on his computer.
On August 13, 2012, LEWIS waived his right to indictment and pleaded guilty to one count of receiving child pornography.
LEWIS has been released on bond under supervision of the United States Probation Office since shortly after his arrest. He has been ordered to report to prison on March 1, 2013.
This case was investigated by the Federal Bureau of Investigation, the United States Secret Service and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant United States Attorney Sarala V. Nagala.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Dea and State Police Bust Meth Distribution RingRead the Press Release
January 16, 2013David B. Fein, United States Attorney for the District of Connecticut, John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration for New England, and Colonel Danny R. Stebbins of the Connecticut State Police, today announced that a federal grand jury sitting in Bridgeport has returned an indictment charging three Connecticut men and two California residents with conspiring to distribute methamphetamine. The indictment was returned on January 15, 2013.
According to 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 has included the use of court-authorized wiretaps, controlled purchases of methamphetamine, physical surveillance and the use of an undercover officer. The investigation revealed KEVIN WALLIN of Waterbury allegedly received shipments of methamphetamine from individuals in California. On six occasions between September 2012 and January 2013, it is alleged that the undercover officer purchased methamphetamine from WALLIN.
“This case is a model for cooperation between federal and state law enforcement agencies,” stated U.S. Attorney Fein. “The hard work of the DEA and the Connecticut State Police in this case resulted in the dismantling of what we allege was a significant methamphetamine distribution organization that spanned from California to Connecticut.”
The indictment charges the following five individuals with one count of conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine, and 50 grams of actual methamphetamine:
KEVIN WALLIN, 61, of Golden Hill Street, Waterbury
KENNETH DEVRIES, also known as "Lyme," 52, of Golden Hill Street ,Waterbury
MICHAEL NELSON, 40, of Buckland Hills Drive, Manchester
CHAD McCLUSKEY, 43, of San Clemente, Calif.,
KRISTEN LASCHOBER, 47, of Laguna Niguel, Calif.The indictment also charges WALLIN with six counts of possession with intent to distribute methamphetamine.
WALLIN and DEVRIES were arrested on criminal complaints on January 3, 2013. According to statements made in court, a court-authorized search of WALLIN's residence on that date revealed suspected methamphetamine, as well as items that government alleges are drug paraphernalia and drug packaging materials.
McCLUSKEY and LASCHOBER were arrested on criminal complaints in Las Vegas, Nev., on January 10, 2013.
NELSON was arrested yesterday after the indictment was returned.
All five defendants are currently detained, and the investigation is ongoing.
If convicted of the charge of conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine, and 50 grams of actual methamphetamine, each of the defendants faces a minimum term of imprisonment of 10 years, a maximum term of imprisonment of life and a fine of up to $10 million. If convicted of the charge of possession with intent to distribute methamphetamine, WALLIN faces a maximum term of imprisonment of 20 years and a fine of up to $1 million, on each count.
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]Vermont Man Sentenced to Three Years in Federal Prison for Illegal Firearms DealingRead the Press Release
January 15, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that KYLE FARACE, 26, of Brattleboro, Vt., was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 36 months of imprisonment for dealing firearms without a license. FARACE also was ordered to serve three years of supervised release and perform 150 hours of community service after his release from prison.
According to court documents and statements made in court, on at least three separate occasions between April and June 2011, FARACE, who is not a licensed firearms dealer, transferred five firearms to someone he believed to be a convicted felon and who resided in a different state.
It is a violation of federal law for a person to engage in the business of dealing in firearms without a license, to sell firearms to a convicted felon, or to transfer a firearm to a person residing in a different state.
On January 6, 2012, FARACE pleaded guilty to one count of dealing in firearms without a license. When he pleaded guilty, FARACE also admitted that he illegally possessed and distributed marijuana in April and May 2011.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Hartford Police Department, the East Hartford Police Department and the Connecticut Department of Revenue Services. The ATF and DEA in Burlington, Vt., the Addison County (Vt.) Sheriff’s Department, and the United States Attorney’s Office for the District of Vermont assisted the investigation of this matter.
The case was prosecuted by Assistant United States Attorneys Jonathan S. Freimann and Ndidi Moses.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New York Woman Indicted for Lying to Federal Agents Investigating Newtown Fundraising FraudRead the Press Release
January 15, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Bridgeport returned an indictment today charging NOUEL ALBA, 37, of Bronx, N.Y., with making false statements to FBI agents in connection with their investigation into a fraudulent fundraising scheme related to the Newtown school shooting tragedy.
The indictment alleges that ALBA used her Facebook account, telephone calls and text messages to falsely claim to be an aunt of a shooting victim and supply fictitious details about the aftermath of the tragedy in order to solicit donations on the pretext that she was collecting on behalf of the family for the child’s “funeral fund.” At ALBA’s instruction, donor-victims sent money to a PayPal account controlled and accessed by ALBA. The indictment further alleges that, when contacted by FBI Special Agents investigating fundraising and charity scams related to the Newtown school shooting, ALBA falsely stated that she did not post information related to Newtown on her Facebook account, have contact with anyone about such postings, or recently access her PayPal account.
The indictment charges ALBA with one count of making false statements to federal agents, an offense that carries a maximum term of imprisonment of five years and a fine of up to $250,000.
ALBA was arrested on a criminal complaint on December 27, 2012, and she has been released on a $50,000 bond since the date of her arrest.
“Investigators continue to monitor the Internet to uncover other fundraising scams arising from this tragedy, and any individuals who attempt to profit through these schemes will be prosecuted,” stated U.S. Attorney Fein.
U.S. Attorney Fein noted that potential federal charges associated with fraudulent fundraising and charity schemes include wire fraud (18 USC 1343, 20-year maximum prison term), access device fraud (18 USC 1029, 10-year maximum prison term) and interstate transportation of stolen property (18 USC 2314, 10-year maximum prison term).
Individuals with knowledge of Newtown-related fundraising schemes are encouraged to contact the FBI in Connecticut at 203-777-6311.
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 is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Jonathan Francis.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]