District of Connecticut
Press releases recorded for this federal judicial district.
Bridgeport Man with Prior Federal Heroin Conviction Pleads Guilty to Heroin Trafficking OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEVEN HUTCHINSON, 29, of Bridgeport, pleaded guilty today in Hartford federal court to one count of possession with intent to distribute heroin.
According to court documents and statements made in court, on November 20, 2014, Hutchinson was sentenced in federal court to 60 months of imprisonment, followed by five years of supervised release, for distributing heroin in Bridgeport. He was released from federal prison on May 22, 2018.
Shortly after Hutchinson was released from prison, Stamford Police received information that Hutchinson was again selling heroin in Fairfield County. On June 21, 2018, a Stamford Police officer, acting in an undercover capacity, arranged to purchase 300 bags of heroin from Hutchinson in exchange for $1,800. Hutchinson was arrested after he arrived at a parking lot in Stamford to complete the transaction and exited his car in possession of 300 bags of heroin.
Subsequent laboratory analysis of the seized drugs revealed that the bags contained a mixture of heroin and fentanyl.
Hutchinson is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on November 19, 2019, at which time he faces a maximum term of imprisonment of 20 years. Hutchinson also faces additional penalties for violating the conditions of his supervised release from his prior federal conviction.
Hutchinson has been detained since his arrest.
This investigation has been conducted by the Stamford Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Synthetic Drug Distributor Sentenced to 6 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL YOUNG, 48, of Bridgeport, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 72 months of imprisonment, followed by three years of supervised release, for importing, manufacturing and distributing synthetic cannabinoids.
According to court documents and statements made in court, in August 2018, the U.S. Postal Inspection Service identified a suspicious package destined for Young’s Bridgeport residence. The package had been shipped from a California business that purportedly marketed and sold herbal products for smoking. A court-authorized search of the package revealed a leafy plant-like substance commonly used as a base to absorb synthetic drugs dissolved in liquid form. Investigators learned that Young has a state criminal conviction from 2015 related to the distribution of synthetic drugs, and that two international shipments containing synthetic drugs destined for Young’s residence had been seized by U.S. Customs and Border Protection in November 2016 and July 2018.
On August 21, 2018, a court-authorized search of Young’s residence revealed more than a kilogram of synthetic cannabinoids and cathinones, approximately 21 grams of Phencyclidine (PCP) in liquid form, drug packaging materials and $1,700 in cash. He was arrested on that date.
Young admitted to investigators that he had purchased the drugs online, including from suppliers in China, and that he produced and sold “K2,” which is a street name for synthetic cannabinoid. Some of Young’s customers resided outside Connecticut and found his product by viewing his advertisements on Craigslist.
Young has been detained since his arrest. On May 30, 2019, he pleaded guilty to one count of possession with intent to distribute controlled substances.
This matter was investigated by the U.S. Postal Inspection Service and the Drug Enforcement Administration, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), U.S. Customs and Border Protection and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
Romanian National Pleads Guilty to Role in Nationwide ATM Skimming ActivityRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that GEORGE DRAGUSIN, also known as “Georgio Anderini” and “Einstein,” 63, a citizen of Romania, pleaded guilty today in Hartford federal court to conspiracy and identity theft charges related to extensive ATM skimming activity that defrauded banks from coast to coast.
According to court documents and statements in court today, between February and June 2017, People's United Bank locations in Connecticut experienced approximately 35 incidents of ATM skimming at their branches. A joint law enforcement investigation revealed that Dragusin and others placed skimming devices at the ATMs to capture account numbers and personal identification numbers (“PIN numbers”) from customers who used their ATM cards at the ATMs while the devices were in place. Members of the conspiracy used the captured information to make substitute ATM cards, and then obtained money and made purchases using those cards.
People’s United Bank suffered losses of approximately $286,069 as a result of this scheme.
In pleading guilty, Dragusin admitted that he installed and removed ATM skimming equipment at several People’s United Bank locations, and used re-encoded cards and PINs to obtain money from several bank locations. Dragusin further admitted that, between March and September 2018, he participated in ATM skimming activity in Nevada, Illinois, Ohio, Indiana and California, causing multiple banks to suffer total losses of more than $645,000.
Dragusin was arrested in Hayward, California, in September 2018. He has been detained since his arrest.
Dragusin pleaded guilty to one count of conspiracy to commit bank fraud, which carries a maximum term of imprisonment of 30 years, and one count of aggravated identity theft, which carries a mandatory consecutive prison term of imprisonment of two years. He is scheduled to be sentenced by U.S. District Judge Michael P. Shea on November 15, 2019.
The investigation is being conducted by the Connecticut Financial Crimes Task Force; the U.S. Secret Service in New Haven and Las Vegas; the Greenwich Police Department; the Monroe Police Department; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI); the New York Police Department; the Las Vegas Metropolitan Police Department; the Dixon (Calif.) Police Department, and the Hayward (Calif.) Police Department.
The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Colchester Woman Pleads Guilty to Fraud Offense Stemming from Embezzlement SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that VICKI MILLER, 56, of Colchester, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a fraud offense stemming from an embezzlement scheme.
According to court documents and statements in court today, from approximately June 2017 until August 2018, Miller was employed as a bookkeeper by Greylock Property Group LLC and its owner. Beginning in approximately July 2017, Miller used her access to her employers’ bank accounts to embezzle $413,180 of their money by making withdrawals at ATMs, writing checks to herself, and transferring funds to her own accounts.
Miller pleaded guilty to one count of wire fraud, an offense that carries a maximum term of imprisonment of 20 years. As part of her plea agreement, Miller agreed to make full restitution to the victims. Judge Dooley scheduled sentencing for November 15, 2019.
Since her arrest on February 13, 2019, Miller has been released on a $50,000 bond.
The investigation was conducted by the Federal Bureau of Investigation with the assistance of the Town of Groton Police Department. The case is being prosecuted by Assistant U.S. Attorney Jonathan Francis.
Alleged Kidnapper Pleads Guilty to Making False Statements to Hide Identity, Receive Federal BenefitsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALLAN MANN, JR., also known as “Hailee Randolph DeSouza” and Hailey R. DeSouza,” 66, pleaded guilty today in New Haven federal court to a false statement offense related to his living in the U.S. under an assumed name for approximately 30 years.
As alleged in court documents, Allan Mann abducted his 21-month-old son, Jermaine Allan Mann, on June 24, 1987, during a court-ordered visit in Toronto, Canada. Allan Mann, who is a Canadian citizen, and his son subsequently entered the U.S. Allan Mann changed his name to Hailee Randolph DeSouza, changed the name of his son, and acquired counterfeit birth certificates for him and his son. Allan Mann has never applied for nor received citizenship status in the U.S.
In June 1990, Mann, using the name Hailee Randolph DeSouza, applied for and received a Social Security Number. In support of this application, Mann presented his counterfeit birth certificate. In May 2018, Mann, using his alias, applied for a replacement Social Security card.
Mann has participated in the U.S. Department of Housing and Urban Development (“HUD”) Section 8 subsidized housing program at various times since 2004. Mann most recently resided in Section 8 subsidized housing in Vernon, Connecticut. Mann has made multiple false statements on HUD forms he signed in connection with his participation in the Section 8 program, and HUD has paid approximately $126,744 in housing assistance payments on Mann’s behalf.
Mann also made multiple false statements on applications to participate in the State of Connecticut’s Medicaid program. Since January 2014, Medicaid has paid $52,970.19 in claims on behalf of Mann, and approximately $2,876.37 on behalf of his son.
Mann pleaded guilty to one count of making a false statement, an offense that carries a maximum term of imprisonment of five years. As part of his plea agreement, Mann has agreed to make restitution of $18,512.05 the Medicaid program, and $34,744 to HUD. He is scheduled to be sentenced by U.S. District Judge Janet C. Hall on November 14, 2019.
Mann has been detained since October 26, 2018, when he was arrested on a criminal complaint.
An immigration detainer has been issued, and Mann faces removal proceedings at the conclusion of his sentence. Canadian authorities have advised the U.S. government that Canada will seek to extradite Mann based on an outstanding warrant for abduction.
This matter is being investigated by the U.S. Marshals Service, U.S. Department of Housing and Urban Development – Office of Inspector General, U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Department of Health and Human Services –Office of the Inspector General, U.S. Department of State – Bureau of Diplomatic Security, Social Security Administration – Office of Inspector General, Toronto Police Service, Royal Canadian Mounted Police and the Vernon Police Department. The Missing Children Society of Canada and the National Center for Missing and Exploited Children have provided critical assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Hal Chen.
Owner of Connecticut Meat Supplier Admits Fabricating E. Coli Test ResultsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Administrator Carmen Rottenberg, U.S. Department of Agriculture’s Food Safety and Inspection Service, announced that MEMET BEQIRI, also known as Matt Beqiri, 32, of Tolland, waived his right to be indicted and pleaded guilty today in Hartford federal court to a charge related to his meat processing business’s falsification of numerous E. coli test results.
According to court documents and statements made in court, Beqiri is the owner and general manager of New England Meat Packing, LLC, located in Stafford Springs, a federally inspected business engaged in the slaughtering, processing, selling and transporting of meat and meat food products for human consumption. Pursuant to the U.S. Department of Agriculture’s (USDA) approved Hazard Analysis and Critical Control Point (HACCP) plan for New England Meat Packing, the company is required to perform one generic E. coli carcass swab for every 300 animals slaughtered and to periodically collect ground beef samples for E. coli testing.
Between November 3, 2016 and September 9, 2017, Beqiri authorized the preparation and submission in the company’s Lab Sample Report binder, which the USDA’s Food Safety Inspection Service (FSIS) reviews, a total of 36 documents relating to 52 separate carcass swabs and ground beef samples on behalf of New England Meat Packing. The 36 documents were each on the letterhead of a certified laboratory that tests food product samples to ensure safety and wholesomeness and signed by the laboratory director. The documents stated that the required E. coli testing of samples submitted by New England Meat Packing had been conducted and completed, and that all 52 samples tested negative for E. coli. In fact, none of the 52 carcass swabs and samples had been submitted or tested by the identified laboratory, or any other laboratory, and the 36 documents were fraudulently prepared using laboratory letterhead obtained from previous testing that New England Meat Packing had conducted with that laboratory.
During the investigation of this matter, Beqiri admitted to an investigator with USDA’s FSIS that the documents were fraudulent, and that his business did not collect and submit the samples to the certified laboratory because he did not correlate the potential impact on food safety with his sampling program and wanted to create the appearance he was compliant with all USDA HACCP testing requirements.
There have been no known instances of illnesses reported by anyone who consumed the meat in any of the states where the meat was distributed.
“After this defendant’s fraudulent conduct was uncovered, he admitted to an investigator that he ignored the USDA’s meat testing requirements because he considered the process to be an inconvenience and a nuisance,” said U.S. Attorney Durham. “Such reckless conduct seriously endangers public safety and will be prosecuted.”
“FSIS investigators are on the job protecting public health every day,” said Carmen Rottenberg, FSIS Administrator. “Our work is critical to protect American families and the food supply, and we will not tolerate blatant disregard for food safety laws.”
Beqiri pleaded guilty to one count of making and using a false document and aiding and abetting, a charge that carries a maximum term of imprisonment of five years. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on November 12, 2019. Beqiri is released on a $25,000 bond pending sentencing.
The plea agreement filed today in association with Beqiri’s guilty plea does not address potential civil administrative consequences for New England Meat Packing’s failure to test the meat it distributed.
The investigation was conducted by the U.S. Department of Agriculture, Food Safety and Inspection Service, Office of Investigations, Enforcement and Audit. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
New Haven Man Sentenced to 92 Months for Firearm and Drug Offenses, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that QIYON REED, also known as “Quiyon Reed” and “Gutter,” 36, of New Haven, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 92 months of imprisonment, followed by three years of supervised release, for firearm and drug offenses, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, on January 29, 2013, Reed was sentenced in New Haven federal court to 70 months of imprisonment, followed by four years of supervised release, for distributing heroin. He was released from federal prison on October 27, 2017.
On September 12, 2018, New Haven police officers executed a state search warrant at Reed’s New Haven residence and seized a loaded Heritage Manufacturing Stealth C-2000 nine-millimeter, semi-automatic handgun; a loaded Smith & Wesson MP9 Shield nine-millimeter, semi-automatic handgun; a box of .45 caliber ammunition; approximately one gram of cocaine packaged for distribution, and items used to process and package narcotics for distribution.
In addition to his prior federal conviction, Reed’s criminal history includes state convictions for possession and sale of narcotics and for carrying a dangerous weapon.
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.
Reed has been detained since his arrest on related state charges on September 12, 2018.
On May 23, 2019, Reed pleaded guilty in federal court to one count of possession of firearms by a convicted felon, and one count of possession with intent to distribute, and distribution of, cocaine.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorneys Elena L. Coronado and Marc H. Silverman.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Dominican National Who Illegally Reentered U.S. is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OLIVER JOAN UBIERA MALENO, 36, a citizen of the Dominican Republic last residing in Danbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to approximately 16 months of imprisonment, time already served, for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, in July 2002, Ubiera Maleno, who at the time was a lawful permanent resident of the U.S., was sentenced in federal court in Alaska to 37 months of imprisonment for possessing with intent to distribute a controlled substance. In December 2003, he was sentenced in state court in Harris County, Texas, to 15 years of imprisonment for possessing with intent to deliver 400 grams or more cocaine. Ubiera Maleno was removed to the Dominican Republic in August 2009 after he had served the federal sentence and a portion of the Texas sentence.
On April 19, 2018, the Danbury Police Department arrested Ubiera Maleno for drug distribution offenses.
Ubiera Maleno has been detained since his arrest. On May 1, 2019, he pleaded guilty to one count of illegal reentry by a removed alien.
The state charges against Ubiera Maleno are pending.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
Connecticut Resident Admits Arranging Fraudulent Marriages so Individuals Would Receive Green CardsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Jason J. Molina, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in Boston, and Christopher W. Fonda, Supervisory Immigration Officer for U.S. Citizenship and Immigration Services, Office of Fraud Detection and National Security, announced that JODIAN STEPHENSON, also known as “Jodian Gordon,” 35, of Bridgeport, pleaded guilty today in New Haven federal court to a conspiracy charge stemming from her arrangement of numerous fraudulent marriages so that non-U.S. citizens would receive U.S. immigration benefits.
According to court documents and statements made in court, Stephenson operated Stephenson Immigration and Legal Services, LLC, in Bridgeport. Between 2011 and 2017, Stephenson conspired with others to arrange 28 sham marriages between U.S. citizens and non-citizens residing in the U.S. for the purpose of the non-citizens’ applying for and obtaining “lawful permanent residence” (“LPR”) status, also known as a “green card.”
One of the 28 sham marriages was between Stephenson, who is a citizen of Jamaica, and a U.S. citizen.
For each of the other 27 fraudulent marriages, Stephenson found and introduced a U.S. citizen to be the non-citizen’s purported spouse and helped the couple obtain a marriage license. She also organized the marriage ceremony and celebration, and coached the couple on how to make their marriage appear to be genuine despite their neither living together nor otherwise intending to remain actually married.
As part of the scheme, Stephenson prepared several immigration documents needed as part of the non-citizen’s LPR application. She had the applicant and spouse sign the documents and, in many cases, mailed the documents to the U.S. Citizenship and Immigration Service immigration authorities for the applicant. In some cases, Stephenson or her assistants prepared other false documents for the couple, such as a false lease that portrayed the couple as living together.
Stephenson typically charged between $17,000 and $20,000 to complete this process for a non-citizen, and the citizen spouse received between $2,000 and $4,000 for his or her participation.
During the investigation, Stephenson offered to arrange a sham marriage for a federal law enforcement agent working in an undercover capacity, and help obtain a green card for the undercover agent, in exchange for a proposed fee of $20,000. In recorded conversations, Stephenson then introduced the undercover agent to a U.S. citizen and advised them about the ways they could create the appearance that they were validly married and living together as husband and wife.
Stephenson pleaded guilty to one count of conspiracy to commit immigration marriage fraud. She faces a maximum term of imprisonment of five years when she is sentenced by U.S. District Judge Michael P. Shea in Hartford. A sentencing date is not scheduled.
Stephenson has been released on a $250,000 bond since her arrest on June 22, 2018.
Six other individuals involved in this scheme previously pleaded guilty.
On December 5, 2018, Donovan Lawrence, of Milford, who operated Donovans Accounting Services, LLC, in Bridgeport, pleaded guilty to his role in this conspiracy. In addition, four U.S. citizens who entered into one or more fraudulent marriages with non-citizens, and one non-citizen who entered into a fraudulent marriage with a U.S. citizen, pleaded guilty. All await sentencing.
This investigation is being conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security. The case is being prosecuted by Assistant U.S. Attorney Henry K. Kopel.
Waterbury Man Pleads Guilty to Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE PENA, also known as “Papi,” 58, of Waterbury, pleaded guilty today in New Haven federal court to distributing heroin.
According to court documents and statements made in court, in September 2018, law enforcement received information that Pena was distributing large quantities of heroin in Waterbury. Investigators subsequently made a series of controlled purchases of heroin from Pena.
Pena was arrested on a federal criminal complaint on January 10, 2019.
Pena pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin, an offense that carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Janet C. Hall on November 11, 2019.
Pena, a citizen of the Dominican Republic and a lawful permanent resident of the U.S., is released on a $150,000 bond pending sentencing.
This investigation is being conducted by the Drug Enforcement Administration’s New Haven Task Force and the Naugatuck Police Department. The Task Force includes participants from the U.S. Marshals Service, the Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby and Middletown Police Departments. The case is being prosecuted by Assistant U.S. Attorney Nathaniel Gentile.
Hartford Man Who Threatened Tow Truck Operator Pleads Guilty to Federal Gun ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LUIS QUINTANA, 28, of Hartford, pleaded guilty today in Hartford federal court to unlawful possession of a firearm by a convicted felon.
According to court documents and statements made in court, on July 29, 2018, Quintana pointed a firearm at a tow truck operator who had started the process of towing Quintana’s car, which had been improperly parked in a private lot on Garden Street in Hartford. After the tow truck operator removed the car from the tow hitch and Quintana walked away, the victim’s partner called police. Officers responded to the scene, apprehended Quintana who was nearby, and retrieved a loaded Ruger P95 9mm millimeter handgun that Quintana had discarded as police arrived.
Quintana’s criminal history includes felony convictions for possession of narcotics with intent to sell, and carrying a pistol without a permit.
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.
Quintana is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on January 8, 2020, at which time he faces a maximum term of imprisonment of 10 years.
This investigation has been conducted by the FBI’s Connecticut Violent Crime Task Force and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Lauren Clark and Michael Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Trumbull Man Who Illegally Removed Asbestos at New Haven Property is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Tyler C. Amon, Special Agent in Charge of EPA’s Criminal Investigation Division in New England, announced that ALEKS RAKAJ, 46, of Trumbull, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to one year of probation and a $9,500 fine for illegally removing asbestos at a New Haven property.
According to court documents and statements made in court, Aleks Rakaj and his two cousins purchased a commercial property located at 206-220 Wallace Street in New Haven. Prior to purchasing the property, the realtor informed Rakaj and his cousins that the property contained asbestos. Shortly after the purchase was completed, Rakaj and his cousins failed to abide by laws and regulations concerning asbestos removal, resulting in exposure of those who were at the site to the negative health effects of asbestos.
On November 20, 2015, inspectors from the City of New Haven Health Department, conducting an unannounced inspection, discovered the illegal asbestos removal project at 206-220 Wallace Street. The inspection revealed multiple instances of illegal removal of asbestos-containing “air cell” pipe wrap and asbestos-containing “mag block” tank and boiler insulation. The workers failed to abide by legally required safety measures, failed to perform necessary wetting and failed to dispose of the asbestos-containing waste material at appropriate disposal sites. Inspectors also observed and photographed 100-150 standard garbage bags filled with unlabeled, unwetted asbestos-containing material.
On May 22, 2019, Rakaj pleaded guilty to one count of illegal asbestos removal in violation of the Clean Air Act.
Rakaj’s cousins, Rezart Rakaj, of Ansonia, and Kliton Rakaj, of Monroe, previously pleaded guilty to the same offense. On April 1, 2019, they were each sentenced to one year of probation, a fine of $9,500, and 50 hours of community service.
“The illegal removal of asbestos insulation and the associated removal of scrap pipe and boilers from old buildings continues to be a problem throughout the Northeast,” said EPA-CID Special Agent in Charge Amon. “Inhalation of asbestos fibers can result in lung cancer and it therefore poses significant health risks to all exposed. EPA will continue to hold accountable those who commit such offenses.”
This investigation was conducted by the U.S. Environmental Protection Agency, Criminal Investigation Division, with the assistance of the City of New Haven Health Department and U.S. Department of Labor, Occupational Safety and Health Administration. The case was prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and Elena L. Coronado.
New Haven Doctor Charged with Unlawfully Prescribing OxycodoneRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Brian C. Turner, Special Agent in Charge of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven returned an indictment yesterday charging DR. JENNIFER FARRELL, 37, with 35 counts of distribution of narcotics without a legitimate medical purpose.
As alleged in the indictment, Farrell was a medical resident at Yale New Haven Health (“YNHH”) in the Emergency Department from July 2017 until June 2019. From March 2018 to March 2019, Farrell wrote at least 35 prescriptions for oxycodone for non-legitimate medical purposes outside the scope of her professional practice in the name of at least five individuals. Farrell did not see any of the individuals for any medical purpose at any YNHH facility during the entire period of her residency.
If convicted, Farrell faces a maximum term of imprisonment of 20 years on each count.
Farrell was arrested on a federal criminal complaint on July 31, 2019, and is released on a $200,000 bond.
Farrell, who was living in New Haven at the time of her arrest, is currently residing in Chapel Hill, North Carolina.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Drug Enforcement Administration, Diversion Control Group, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Heather Cherry.
Middletown Man Sentenced to Prison for Trafficking Meth, Preparing False Tax ReturnsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that EUGENE CARLIN, 59, of Middletown, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 18 months of imprisonment, followed by three years of supervised release, for drug trafficking and tax offenses.
According to court documents and statements made in court, in July 2018, law enforcement executed a search warrant at Carlin’s Middletown residence and seized approximately 170 grams of d-methamphetamine hydrochloride of very high purity. Carlin subsequently admitted that, for over a year, he worked with others to distribute methamphetamine in the Middletown area.
The investigation further revealed that Carlin he helped clients to prepare and file false tax returns with the Internal Revenue Service.
In 2007, Carlin was convicted in Hartford federal court of tax evasion, and aiding in the preparation of false tax returns. That matter also involved Carlin helping clients of his tax preparation business to file false returns. In August 2007, Carlin was sentenced to 12 months and one day of imprisonment, and six months of home confinement. He also agreed to refrain, permanently, from preparing tax returns for other people.
As part of the resolution of this case, Carlin has been ordered to forfeit $100,000, which represents his proceeds from the sale of methamphetamine.
On October 26, 2018, Carlin pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, methamphetamine, and one count of aiding in the preparation of false tax returns.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, Drug Enforcement Administration’s New Haven Task Force and Middletown Police Department, with the assistance of the U.S. Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
Guilford Man Receives Additional Prison Time for Failing to Report to PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BRIAN PAGE, 45, of Guilford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to an additional three months of imprisonment for failing to surrender for service of his federal sentence.
According to court documents and statements made in court, on October 17, 2017, Judge Thompson sentenced Page to 97 months of imprisonment, followed by four years of supervised release, for his role in a scheme to distribute oxycodone that was obtained through fraudulent prescriptions. Judge Thompson ordered Page, who was released on a $200,000 bond, to surrender for service of his sentence on November 17, 2017.
Page was subsequently designated by the Bureau of Prisons to the Federal Correctional Institute at Fort Dix, New Jersey.
Page did not surrender to FCI Fort Dix on November 17, 2017. The U.S. Marshals Service located and arrested Page at a hotel in Branford on December 7, 2017. He has been detained since his arrest.
Judge Thompson ordered Page to serve three months of imprisonment, followed by six months of home confinement, when Page completes his original 97-month sentence.
This case was prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis and Anthony E. Kaplan.
Bridgeport Twins Plead Guilty to Violent Robbery and Carjacking of Ansonia Delivery DriverRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTOINE SNELL and TREYQUANE SNELL, both 20 of Bridgeport, each pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a federal robbery offense stemming from a violent robbery and carjacking of a food delivery driver in Ansonia.
According to court documents and statements made in court, on December 21, 2016, Antoine and Treyquane Snell, who are twin brothers, and a juvenile male, placed a food order with an Ansonia restaurant to be delivered to a location on Dwight Street. After the driver arrived at the location, the three males ordered the driver out of his car, attacked him and stole the car. The victim suffered serious injuries, including multiple broken bones in his face and bleeding in his brain.
The brothers each pleaded guilty to one count of Hobbs Act robbery, an offense that carries a maximum term of imprisonment of 20 years. Judge Dooley scheduled sentencing for November 6, 2019.
The brothers are detained pending sentencing.
The juvenile involved in the robbery and carjacking was charged, convicted and sentenced in state court.
This matter is being investigated by the Federal Bureau of Investigation and the Ansonia Police Department. The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Maria del Pilar Gonzalez.
Massachusetts Construction Management Company, Owner, Pay $1.3M to Settle False Claims Act AllegationsRead the Press Release
U.S. Attorney John H. Durham and officials from the U.S. Small Business Administration and U.S. General Services Administration today announced that CLASSIC SITE SOLUTIONS, INC. (“CSS”) and its owner, CHERYL SADY, have entered into a civil settlement agreement with the United States in which they will pay $1.3 million dollars to resolve allegations that they violated the False Claims Act.
CSS is a Massachusetts corporation that performs construction management and general contracting services for various federal agencies. The government alleges that CSS and Sady made false statements to the Small Business Administration (“SBA”) to obtain certification as a Historically Underutilized Business Zone (“HUBZone”) company. One of the central purposes of the HUBZone program is to support small businesses that locate in geographic areas that have historically been unable to attract businesses and jobs. The government awards certain contracts only to HUBZone-certified businesses and applies a price preference to HUBZone contractors making bids on other contracts.
The government alleges that CSS and Sady falsely claimed to the SBA that CSS’s principal office was located in a designated HUBZone when, in fact, it was not. Using the fraudulently obtained HUBZone certification from the SBA, CSS bid on and was awarded government contracts worth millions of dollars that had been set aside for qualified HUBZone companies, as well as contracts for which a price preference was available to HUBZone companies. After CSS’s fraudulently procured HUBZone certification was discovered, CSS and Sady made further false statements to federal agents about CSS’s HUBZone eligibility and the location of its principal office.
To resolve the government’s allegations, CSS and Sady have agreed to pay $1.3 million for conduct occurring between 2009 and 2015.
“Companies that make false representations to take advantage of federal government contract programs for which they don’t qualify will be held accountable,” said U.S. Attorney Durham. “We thank the SBA’s Office of Inspector General and Office of General Counsel, and the GSA Office of Inspector General, for their diligent work on this case and their efforts to protect both the integrity of the HUBZone program and taxpayer money.”
“The outcome in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office and other federal law enforcement partners to detect procurement fraud and prosecute those individuals and companies that engage in such activities,” said SBA’s General Counsel Christopher M. Pilkerton.
“A small business wishing to participate in SBA’s HUBZone Program must fulfill all the program requirements, which are designed to encourage economic development and increase employment opportunities in the distressed area,” said SBA Inspector General Hannibal “Mike” Ware. “SBA OIG will continue to aggressively pursue parties that undermine Americans’ confidence in preferential federal contracting programs for small businesses. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication to enforcing compliance in SBA’s contracting programs.”
“Entities must be truthful in their dealings with the federal government,” said Inspector General Carol Ochoa of the U.S. General Services Administration Office of Inspector General. “The GSA OIG will aggressively pursue those who make false representations to obtain federal contracts.”
Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $11,181 to $22,363 for each false claim.
This investigation was conducted by the U.S. Small Business Administration and the U.S. General Services Administration Office of Inspector General. This matter was handled by Assistant U.S. Attorney Sarah Gruber, with the assistance of Auditor Susan N. Spiegel.
Bridgeport Tax Preparer Sentenced to More Than 4 Years in Federal Prison for Preparing False Tax ReturnsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ROLANDO RUSSELL, 62, of Bridgeport, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 50 months of imprisonment, followed by one year of supervised release, for preparing false tax returns for clients.
According to court documents and statements made in court, Russell prepared approximately 1,820 federal tax returns for the 2013 through 2016 tax years through a tax return preparation practice he operated in Bridgeport. The returns claimed a total of approximately $11.26 million in refunds, of which the IRS issued approximately $10 million. An investigation revealed that many of the tax returns he prepared included false Schedule C forms (“Profit or Loss from Business”), false unreimbursed employee expenses and false charitable contributions. Based on the investigation, Russell’s false filings resulted in at least $1.5 million in losses to the IRS.
Judge Thompson ordered Russell to pay restitution of $1,501,000.
As a result of Russell’s fraudulent conduct, many of his clients’ filed tax returns for the 2013 through 2016 tax years will need to be amended. IRS notices are being sent to impacted clients.
On April 26, 2019, Russell pleaded guilty to two counts of aiding and assisting the filing of a false tax return.
Russell, who is released on a $100,000 bond, is required to report to prison on October 16.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
New Haven Man Sentenced to 45 Months in Federal Prison for Firearm and Narcotics OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL DAVIS, also known as “Clep,” “Clip,” and “Michael Smith,” 33, of New Haven, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 45 months of imprisonment, followed by three years of supervised release, for firearm and narcotics offenses.
According to court documents and statements made in court, on December 4, 2018, Davis was told to leave the premises of a New Haven bar after he argued with a bouncer. Davis then went outside, pulled a handgun out of his pants, loaded an extended magazine into the firearm and threatened to shoot the bar owner.
Davis was arrested on December 7, 2018. At the time of his arrest, he possessed distribution quantities of heroin and cocaine. A subsequent search of his vehicle revealed a Smith & Wesson SD 40 handgun.
Davis’s criminal history includes multiple felony convictions for narcotics offenses and a conviction for escape in the first degree. 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.
On April 30, 2019, Davis pleaded guilty to one count of possession of a firearm by a previously convicted felon, and one count of possession of heroin with intent to distribute.
This matter was investigated by the Federal Bureau of Investigation and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Nathaniel Gentile.
Belgian Citizen Pleads Guilty to Insider TradingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian C. Turner, Special Agent in Charge of the Federal Bureau of Investigation, announced that NICHOLAS ZANEN, 46, of Belgium, pleaded guilty today before U.S. District Judge Alvin W. Thompson to a conspiracy charge stemming from his role in an insider trading scheme.
According to court documents and statements made in court, Zanen was employed by Cheniere Energy, Inc. (“Cheniere”), a Houston-based energy company whose common stock traded on the New York Stock Exchange under the symbol LNG. Zanen was a vice president of trading in the Cheniere’s United Kingdom Branch and was based in London. Cheniere maintained written policies prohibiting the direct or indirect disclosure of confidential information and requiring employees to prevent the disclosure of such confidential information. In his position, Zanen had access to material non-public information concerning Cheniere’s deals, financings, and other business information, and he was in possession of inside information prior to public announcements.
Between November 2011 and December 2012, Zanen disclosed Cheniere inside information to a friend, Francis J. Van Steenberge, and advised him whether to buy or sell Cheniere securities with the understanding that Van Steenberge would execute the security transactions on the basis of these instructions. Zanen and Van Steenberge generated approximately $1 million through this scheme.
Zanen also caused to be made materially false and fraudulent statements to the Financial Industry Regulatory Authority (“FINRA”) that he was unaware of the circumstances under which Van Steenberge gained knowledge of Cheniere’s business activities.
On June 4, 2014, a federal grand jury in New Haven returned an indictment charging Zanen with one count of conspiracy to commit securities fraud and three counts of securities fraud. Zanen, who was living abroad in London, Singapore and Belgium, was apprehended on April 22, 2019, in Pisa, Italy. He was extradited to the U.S. on June 13, 2019.
Zanen pleaded guilty to one count of conspiracy to commit securities fraud. Judge Thompson scheduled sentencing for November 4, 2019, at which time Zanen faces a maximum term of imprisonment of five years. Zanen has been detained since his arrest.
On April 4, 2014, Van Steenberge pleaded guilty to the same offense. He awaits sentencing.
In the companion case Securities and Exchange Commission v. Nicolas Zanen and Francis J. Van Steenberge, a judgment was issued ordering Zanen to pay a civil penalty of $432,775.70 to the SEC. Zanen has paid the penalty.
This investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry. U.S. Attorney Durham thanked the U.S. Department of Justice’s Office of International Affairs for its assistance in this matter, in particular former DOJ Rome Attache’ Cristina Posa.
U.S. Attorney Durham stressed that protecting the integrity of the capital markets and ensuring that individuals comply with our nation’s securities laws is a priority of the Justice Department. Individuals who believe that they have been victimized by this insider trading scheme should contact the FBI in New Haven at 203-777-6311.
Former President of Hartford Nonprofit Who Stole from HUD Program is SentencedRead the Press Release
John H. Durham. United States Attorney for the District of Connecticut, announced that STEVEN F. HARVIN, 54, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to three years of probation, the first 60 days of which Harvin must serve in home confinement, for stealing from a U.S. Department of Housing and Urban Development (“HUD”) program. Judge Shea also ordered Harvin to perform 50 hours of community service.
According to court documents and statements made in court, the Housing Opportunities for Persons with AIDS (“HOPWA”) Program is a HUD program dedicated to the housing needs of people living with HIV/AIDS. Under the HOPWA Program, HUD makes grants to local communities, states and nonprofit organizations for projects that benefit low-income persons living with HIV/AIDS and their families. HUD is also responsible for administering the Section 8 housing program, which provides federally subsidized housing to low income tenants.
From approximately August 2015 to September 2016, Harvin served as President of Zezzo House, a non-profit organization in Hartford that provides housing for individuals and families with health challenges, including HIV/AIDS. HUD provides HOPWA funds to the City of Hartford, which in turn provides the HOPWA funds to organizations in the Hartford area, including Zezzo House. Between January and August 2016, Zezzo House received $70,722 in HOPWA funds. Harvin embezzled some of these funds through cash withdrawals, spent some of the funds on ineligible Zezzo House expenses, and he failed to account for the use of other funds.
Zezzo House also receives Section 8 funding and, during this time period, Harvin diverted funds from rent checks from Section 8 tenants to his personal use.
In total, Harvin misappropriated approximately $32,854 in HOPWA and Section 8 funds.
This matter was investigated by the U.S Department of Housing and Urban Development, Office of Inspector General, and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Hartford Man Pleads Guilty to Possessing a Loaded FirearmRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that CLETUS JONES, 39, of Hartford, pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of possession of a firearm and ammunition by a felon.
According to court documents and statements made in court, on January 23, 2018, Hartford Police officers responded to a two-car motor vehicle accident near Elizabeth Park. At the scene, officers learned that Jones had gone into the park and placed something near a tree. A search of the area uncovered a loaded Taurus .38 semi-automatic handgun. Subsequently, Jones’ DNA profile was found on the gun.
Jones’ criminal history includes felony convictions for possession of narcotics, failure to appear in the first degree, robbery in the first degree and carjacking.
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.
When he is sentenced, Jones faces a maximum term of imprisonment of 10 years. A sentencing date has not been scheduled.
Jones has been detained since his arrest on August 8, 2018.
This matter is being investigated by the Federal Bureau of Investigation and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson and Law Student Intern Owen R. Eagan.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Newington Man Pleads Guilty to Embezzling Labor Union FundsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that THOMAS POPILLO, 61, of Newington, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Hartford to one count of embezzlement and theft of labor union funds while serving as the president of the Communications Workers of America Local 81266.
According to court documents and statements made in court, from 2003 through 2017, Popillo served as the president of the Communications Workers of America Local 81266 (“CWA 81266”). He also served as the secretary-treasurer of CWA 81266 from approximately 2003 until 2015. During his tenure as a CWA 81266 officer, Popillo embezzled approximately $37,568.68 of labor union funds by receiving unauthorized checks from CWA 81266’s bank account, and by making unauthorized purchases with CWA 81266’s debit card.
When he is sentenced, Popillo faces a maximum term of imprisonment of five years. A sentencing date is not scheduled.
Popillo is released on a $25,000 bond pending sentencing.
This matter is being investigated by the U.S. Department of Labor, Office of Labor Management Standards. The case is being prosecuted by Assistant U.S. Attorney Margaret E. Maigret.
Former Connecticut Resident Sentenced to Prison for Role in Medicaid Fraud SchemesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JULIET JACOB, 50, of Wake Forest, North Carolina, formerly of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to a year and a day of imprisonment, followed by three years of supervised release, for participating in two separate Medicaid fraud schemes.
According to court documents and statements made in court, beginning in January 2012, Jacob and Toshirea Jackson operated two businesses, Transitional Development And Training (TDAT), and It Takes A Promise (ITAP), both located at 360 Fairfield Avenue in Bridgeport, which provided social and psychotherapy services. The investigation revealed that Jacob and Jackson used ITAP and TDAT to bill Medicaid for psychotherapy services that were never provided. As part of their scheme, Jacob and Jackson used the Medicaid provider numbers of two licensed health care providers who had neither rendered nor supervised any of the psychotherapy services that Jacob and Jackson billed to Medicaid. Jackson, and the two licensed providers, were employees of the Connecticut Department of Mental Health and Addiction Services (DMHAS). The two providers did not authorize Jacob and Jackson to obtain provider numbers for them at TDAT or ITAP, and were not aware that TDAT or ITAP were billing Medicaid as if the providers had personally rendered the psychotherapy services.
The investigation further revealed that, in March 2012, Nikkita Chesney, who was employed by a health care provider that provided substance abuse treatment, including a detoxification program in Bridgeport, was approached by Jackson and, at Jackson’s request, began to steal the personal identification information of Medicaid clients who were patients of her employer. The personal identifying information included the patients’ Medicaid identification number, Social Security Numbers and dates of birth. Jacob, Jackson and Chesney then used the stolen identity information to bill Medicaid for psychotherapy services purportedly provided by TDAT and ITAP, when the Medicaid clients had never received any such services from TDAT or ITAP.
Chesney stole the identity information of more than 150 Medicaid clients, and she, Jacob and Jackson successfully billed Medicaid for approximately half of those clients. The co-conspirators also fraudulently billed Medicaid for services to other clients that were never provided to those clients.
On October 18, 2018, Jacob pleaded guilty to one count of health care fraud stemming from this scheme, and a separate Medicaid fraud scheme. In that separate scheme, Jacob conspired with Ronnette Brown and Beverly Coker in 2010 and 2011 to defraud Medicaid of more than $214,000 by fraudulently billing for psychotherapy services that were not provided.
Judge Bolden ordered Jacob to pay $ 2,711,173 in restitution related to the two schemes.
Jacob, who is released on a $25,000 bond, is required to report to prison on September 20, 2019.
On December 13, 2018, Jackson, who was an employee of the Connecticut Department of Mental Health and Addiction Services, pleaded guilty to one count of health care fraud. On May 30, 2019, Judge Bolden sentenced her to 24 months of imprisonment and ordered her to pay restitution of $2,496,618.
On October 23, 2018, Chesney pleaded guilty to one count of health care fraud and one count of aggravated identity theft. On July 12, 2019, she was sentenced to seven months of imprisonment and ordered to pay restitution of $1,369,654.
On May 26, 2017, a jury found Brown guilty of 23 counts of health care fraud and one count of conspiracy to commit health care fraud. On April 19, 2018, Judge Bolden sentenced Brown to 48 months of imprisonment and ordered her to pay restitution of $2,033,962.
On April 8, 2016, Coker pleaded guilty to one count of health care fraud. On May 8, 2018, she was sentenced to five years of probation and restitution of $214,555.
Three other individuals have been charged and convicted of separate health care fraud offenses as a result of this investigation, including Maurice Sharpe, who is Jacob’s ex-husband, and Patricia Lafayette, who is Sharpe’s mother and Jacob’s former mother-in-law. In 2011, while Jacob and Sharpe were married and living with Lafayette, Jacob, Lafayette, and Sharpe formed Family First Community Support Services (Family First). Sharpe and Lafayette then engaged in a health care fraud scheme with Anne Charlotte Silver, a licensed marriage and family therapist, in which Sharpe and Lafayette used Family First to submit fraudulent claims to Medicaid for psychotherapy under Silver’s Medicaid provider number.
On July 15, 2016, Lafayette pleaded guilty to one count of health care fraud. On April 27, 2017, she was sentenced to 21 months in prison and was ordered to pay restitution of $1,661,879.
On May 2, 2016, Silver pleaded guilty to one count of health care fraud. On May 8, 2017, she was sentenced to 10 months imprisonment and ordered to pay restitution of $1,619,019.
On December 13, 2016, Sharpe pleaded guilty to one count of health care fraud. On May 24, 2018, he was sentenced to five years probation and ordered to pay $211,130 in restitution.
This case was jointly investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office and the Federal Bureau of Investigation, with assistance from the Connecticut Attorney General’s Office. U.S. Attorney Durham thanked the Connecticut Department of Social Services for their role in identifying the fraudulent scheme and supporting the investigation and prosecution of the case.
“Today’s sentencing is the final step in a five-year investigation that resulted in convictions of eight individuals involved in three separate but related schemes to defraud Medicaid of over six million dollars,” said U.S. Attorney Durham. “These convictions demonstrate the combined efforts of Connecticut’s federal and state criminal and civil law enforcement agencies, working closely with the Connecticut Department of Social Services, to identify, investigate, and prosecute individuals who commit Medicaid fraud. We will continue to vigilantly protect the federal and state dollars that support these vital health care services.”
Chief State’s Attorney Kevin T. Kane expressed his appreciation to all involved in this successful investigation and prosecution. “This is yet another example of what can be accomplished when agencies at levels of government work in collaboration to achieve their common goal,” said Chief State’s Attorney Kane. “All of these agencies worked tirelessly over several years to assure that waste, fraud and abuse in our Medicaid program is uncovered and those responsible are punished accordingly.
“We will not tolerate criminals stealing precious dollars from our federal health care programs,” said Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services Office of Inspector General. “Today’s sentence shows our commitment to working with our state and federal law enforcement partners to swiftly investigate these fraud schemes and bring criminals to justice.”
This matter was prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Rhode Island Man Sentenced to 179 Months for Trafficking Heroin into Southeastern ConnecticutRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that EDDY PENA, 30, of Providence, Rhode Island, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 179 months of imprisonment, followed by five years of supervised release, for trafficking heroin.
On February 20, 2019, a jury found Pena guilty of one count of conspiracy to distribute, and to possess with intent to distribute, one kilogram or more of heroin. Prior to his trial, on February 4, 2019, Pena pleaded guilty to two counts of possession of heroin with intent to distribute.
According to court documents, statements made in court and the evidence introduced during the trial, this matter stems from an investigation that began after several heroin overdoses in southeastern Connecticut, including two overdose deaths involving a heroin and fentanyl mix that occurred in January, 2016. The investigation, which included court-authorized wiretaps and controlled purchases of narcotics, revealed that Pena regularly supplied Michael Luciano, of New London, with large quantities of heroin. Luciano, who also received heroin from sources in Rhode Island and Massachusetts, distributed the drug through a network of street-level dealers in southeastern Connecticut. The evidence at trial also indicated that Pena supplied heroin to individuals in Providence, Rhode Island, and Fall River, Massachusetts, as early as 2012. Based on the trial evidence, Judge Shea found that Pena was responsible for the trafficking of at least 10 kilograms of heroin but less than 30 kilograms of heroin, and that Pena was the leader of a conspiracy that was extensive and involved five or more participants.
Pena has been detained since his arrest on November 14, 2017. On that date, investigators executed 12 federal search warrants and seized more than three kilograms of heroin from other members of the conspiracy, and approximately $14,000 in cash from Pena.
On December 12, 2017, a grand jury in Hartford returned a 25-count superseding indictment charging Pena, Luciano and 19 other individuals with various heroin trafficking offenses.
On June 27, 2018, Luciano pleaded guilty to one count of conspiracy to possess with intent to distribute one kilogram or more of heroin. On January 29, 2019, he was sentenced to 12 years of imprisonment.
This matter has been investigated by the Drug Enforcement Administration, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations, Connecticut State Police Statewide Narcotics Task Force East and the New London, Norwich, Waterford, Attleboro (Mass.) and Freetown (Mass.) Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Geoffrey M. Stone.
U.S. Attorney's Office Reaches ADA Settlement with East Lyme RestaurantRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with Il Pomod’Oro Restaurant in East Lyme to resolve allegations that the facility did not comply with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves ADA complaints filed by individuals with disabilities alleging that Il Pomod’Oro was not accessible for individuals with physical disabilities. The restaurant is in the process of making the changes required by the settlement agreement, including providing accessible parking spaces, ensuring that the restaurant has an accessible entrance with compliant handrails and thresholds, providing accessible dining tables throughout the restaurant, ensuring equivalent service for individuals in the restaurant’s bar area, ensuring access to the restaurant’s patio area, and designing and constructing an accessible restroom. Il Pomod’Oro will continue to make improvements over the next 18 months.
Under federal law, private entities that own or operate places of “public accommodation,” including restaurants and bars, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
“The Americans with Disabilities Act is an important part of the federal law enforcement responsibilities of the U.S. Attorney’s Office, and we are committed to enforcing the ADA to ensure that individuals with disabilities are able to access and enjoy our state’s restaurants,” said U.S. Attorney Durham. “We are pleased that Il Pomod’Oro has agreed to make changes to its facility in order to comply with the requirements of the ADA.”
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Three Individuals Charged in Oxycodone Prescription Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, and Vernon Police Chief James Kenny today announced that a federal grand jury in Hartford returned an indictment yesterday charging three individuals with offenses related to the illegal acquisition and distribution of oxycodone obtained through fraudulent prescriptions. JAYSON KEMP, 42, of East Windsor, ORAL WELBORN, 58, of Columbia, South Carolina, and MARIA PIRULLI, 42, of New Haven, were arrested this morning.
As alleged in the indictment, between 2012 and 2014, Kemp obtained blank prescription paper from employees of various Connecticut medical practices, including from Pirulli, who formerly resided in Newington and was employed as an assistant and bookkeeper at a medical practice in Hartford. Kemp kept some of the prescription paper for himself and also sold some of the prescription paper, for thousands of dollars, to other individuals, including Welborn, who formerly resided in Hartford. Kemp, Welborn and another co-conspirator then recruited “runners,” who typically were individuals who received Medicaid and Medicare benefits, to fill fraudulent prescriptions at various pharmacies. Kemp, Welborn and the other coconspirator filled out each prescription with the runner’s identifying information and forged a doctor’s signature on the prescription. The runner then filled the fraudulent prescription at a pharmacy, generally using their Medicaid or Medicare benefits, and provided the pills to Kemp, Welborn and their co-conspirator in exchange for approximately $50 per prescription. Kemp, Welborn and their co-conspirator then sold the pills to individuals suffering from opioid addictions.
It is alleged that Kemp, Welborn and their co-conspirator were responsible for filling at least 150 fraudulent prescriptions for oxycodone, almost all of which were for 150 30-mg oxycodone pills.
The indictment charges Kemp with one count of conspiracy to distribute narcotics, which carries a maximum term of imprisonment of 20 years; one count of conspiracy to commit health care fraud, which carries a maximum term of imprisonment of 10 years; and two counts of health care fraud, which carries a maximum term of imprisonment of 10 years on each count.
Welborn is charged with one count of conspiracy to distribute narcotics and one count of conspiracy to commit health care fraud, and Pirulli is charged with one count of conspiracy to distribute narcotics.
U.S. Attorney Durham 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 Drug Enforcement Administration’s New Haven Tactical Diversion Squad, the U.S. Department of Health and Human Services Office of the Inspector General, and the Vernon Police Department.
This case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Nigerian National Involved in Business E-Mail Compromise Scheme Sentenced to 3 Years in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STANLEY HUGOCHUKWU NWOKE, also known as “Stanley Banks,” “Banks,” “Hugo Banks,” “Banky,” and “Jose Calderon,” 28, a citizen of Nigeria, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 36 months of imprisonment for his role in a business e-mail compromise scheme.
According to court documents and statements made in court, Nwoke conspired with Adeyemi Odufuye and others in a business compromise scheme that targeted hundreds, if not thousands, of CFOs, controllers and others at businesses, nonprofit organizations, and schools in Connecticut and across the United States. As part of the scheme, Odufuye, Nwoke and others, including Olumuyiwa Yahtrip Adejumo, sent e-mails addressed to executives that were made to appear to be sent from the legitimate e-mail address of the CEO or other executive from the business. The emails were sent with the intent of having the recipients send or wire money to bank accounts used by members of the conspiracy.
The investigation revealed that scheme participants controlled multiple e-mail and social media accounts used in the scheme and, in certain instances, sent e-mails and attachments containing malware to the intended recipients.
In late 2015, Odufuye and others sent or caused to be sent dozens of e-mails to the controller of a company in Torrington, Connecticut. In the e-mails, Odufuye posed at the real CEO of the victim company and instructed the controller to send multiple wire transfers exceeding a total of $1 million from the company’s accounts to various individuals and purported entities. The company then sent five wire transfers totaling more than $500,000 to accounts in Virginia, Florida, Washington, D.C., and Hong Kong.
The investigation revealed that Odufuye and others also targeted a company headquartered in Waterbury, Connecticut, as part of this scheme.
Judge Hall ordered Nwoke to pay restitution of $662,053.87.
Nwoke was arrested in Mauritius on May 8, 2018, was extradited to the U.S., and has been detained since his arrest. On May 7, 2019, he pleaded guilty to one count of conspiracy to commit wire fraud.
Odufuye, formerly residing in Sheffield, United Kingdom, and Adejumo, formerly residing in Toledo, Ohio, both citizens of Nigeria, previously pleaded guilty to related charges. On December 12, 2018, Odufuye was sentenced to 45 months of imprisonment and was ordered to pay restitution of $921,497.87 to victims of the scheme. On August 17, 2018, Adejumo was sentenced to 15 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Cyber Task Force. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
U.S. Attorney Durham thanked the Department of Justice’s Office of International Affairs, the United Kingdom’s National Crime Agency, the United Kingdom’s Metropolitan Police, and the Mauritius Police Force’s Central Criminal Investigation Department for their assistance in this case.
To contact the Connecticut Cyber Task Force, please call the FBI in New Haven at 203-777-6311.
Fugitive Arrested in Norwich Pleads Guilty to Federal Gun ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LEWIS CORWISE, 29, formerly of Norwich and New York City, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on April 5, 2018, Norwich Police arrived at a Norwich residence to arrest Corwise, who had a warrant for his arrest in New York. Corwise attempted to run from police, resisted and was apprehended. At the time of his arrest, Corwise possessed a loaded Springfield xD-45 handgun, a zip lock bag containing nearly 60 grams of heroin, a small quantity of marijuana, a digital scale, five cellphones and other items.
Judge Dooley scheduled sentencing for October 24, 2019, at which time Corwise faces a mandatory term of imprisonment of at least five years.
Corwise has been detained since his arrest.
This investigation has been conducted by the Norwich Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Plainville Electrical Contractor Admits Stealing More Than $3.3 Million from EmployeesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LEE FERGUSON, 62, of Farmington, waived his right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of money laundering stemming from a scheme in which he stole more than $3.3 million from his employees.
According to court documents and statements made in court, Ferguson owns and operates Ferguson Electric and Ferguson Mechanical, both headquartered in Plainville. Between approximately 2013 and 2017, Ferguson caused to be deducted approximately $1.60 to $3.15 per hour from each of his employee’s fringe benefits package as a “third party administrator fee” for the employees’ pension plans. Ferguson knew that the funds were not used to cover any administrative fees for the employees’ pension plans. Instead, this “third party administrator fee” was paid over to TPA of Connecticut, a company that Ferguson established and controlled. TPA of Connecticut, in turn, sent the monies to DJS Associates, a Florida company that Ferguson formed for the purported purpose of performing business-consulting services for him and his companies. However, no such services were performed and Ferguson used the funds for personal expenses.
Through this scheme, Ferguson stole a total of $3,357,516 from more than 300 employees.
Judge Shea scheduled sentencing for October 24, 2019, at which time Ferguson faces a maximum term of imprisonment of 10 years.
Ferguson is released on a $50,000 bond pending sentencing.
This investigation is being conducted by the Internal Revenue Service – Criminal Investigation Division, U.S. Department of Labor – Office of Inspector General, and U.S. Department of Labor – Employee Benefits Security Administration, Boston Regional Office. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
New Haven Felon Pleads Guilty to Federal Firearm ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANDRE JOHNSON, also known as “Cuzz Crip” and “Cuzzy Blue,” 30, of New Haven, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of possession of a firearm by a convicted felon.
According to court documents and statements made in court, on February 28, 2019, law enforcement conducted a controlled purchase of a handgun an extended magazine from Johnson in exchange for $900. After the transaction, investigators seized a Taurus model PT 24/7 Pro DS 9mm, a loaded extended magazine and a loaded standard magazine that Johnson transferred during the purchase.
Johnson’s criminal history includes state felony convictions for illegal possession of an assault weapon and possession with intent to distribute a controlled substance.
Johnson has been detained since his arrest on April 11, 2019.
Judge Dooley scheduled sentencing for October 23, 2019, at which time Johnson faces a maximum term of imprisonment of 10 years.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, New Haven Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Ansonia Man Pleads Guilty to Fentanyl and Crack Distribution ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that KENTWAN ROBINSON, also known as Thomas Robinson, 26, of Ansonia, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to fentanyl and crack cocaine distribution offenses.
According to court documents and statements made in court, in November 2018, the Drug Enforcement Administration received information that Robinson was distributing fentanyl in the Bridgeport area. On three occasions between November 2018 and January 2019, investigators conducted controlled purchases of fentanyl from Robinson at various locations. During one of the transactions, Robinson also sold a quantity of crack cocaine.
Robinson was arrested at his Ansonia residence on February 6, 2019. At the time of his arrest, he possessed approximately 10 grams of fentanyl that he intended to distribute and approximately $1,800 in cash.
Robinson pleaded guilty to two counts of distribution of fentanyl, one count of distribution of fentanyl and cocaine base (“crack”), and one count of possession with intent to distribute fentanyl. Judge Arterton scheduled sentencing for October 23, 2019, at which time Robinson faces a maximum term of imprisonment of 20 years on each count.
Robinson has been detained since his arrest.
This matter has been investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Bridgeport Police Department. The Task Force includes personnel from the DEA, Connecticut State Police and Norwalk, Stamford, Stratford, Milford, Bridgeport and Trumbull Police Departments. The case is being prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
New Haven Man Admits Illegal Possession of Loaded HandgunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MAHDI HENDERSON, 25, of New Haven, pleaded guilty today in Hartford federal court to one count of possession of a firearm by a convicted felon.
According to court documents and statements made in court, on November 22, 2017, as part of an unrelated investigation, members of the New Haven and Hamden police departments executed a search warrant at a New Haven residence and encountered Henderson and three other individuals inside the residence. During the search, law enforcement discovered a loaded .22 caliber Smith & Wesson handgun under the couch where Henderson had been sitting. Subsequent forensic analysis of the handgun revealed Henderson’s DNA on the trigger of the gun.
Henderson’s criminal history includes felony convictions for assault in the first degree, possession of a pistol without a permit, and burglary in the second degree.
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.
Henderson is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant November 7, 2019, at which time he faces a maximum term of imprisonment of 10 years.
Henderson has been in state custody on unrelated charges since October 3, 2018.
This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, New Haven Police Department and Hamden Police Department, with the assistance of the Connecticut Forensic Science Laboratory. The case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
Connecticut Landlord Sentenced to Prison for Tax EvasionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTHONY A. VALENTINO, 76, of Palm City, Florida, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to nine months of imprisonment, followed by one year of supervised release, for tax evasion. Judge Dooley also ordered Valentino to pay a $10,000 fine.
According to court documents and statements made in court, Valentino is a real estate investor who owns property in Connecticut and New York, including a 100-unit apartment complex in Naugatuck, Connecticut. From 2011 to 2013, Valentino deposited more than $1.1 million of rental real estate receipts, paid in cash or checks, into his personal bank accounts in Connecticut and New York, and failed to report the receipts on his personal and partnership federal tax returns.
For the 2011 through 2013 tax years, Valentino failed to report $1,008,125 in taxable income on his tax returns, and only reported $42,815 in taxable income. As a result, he evaded payment of $302,449 in income taxes.
The investigation also revealed that, in 2013, Valentino made or caused to be made 27 cash deposits totaling $247,100 into his savings account in Connecticut. Many of the cash deposits, which ranged in amounts from $7,000 to $9,900, were made on the same day at different times, or on consecutive days.
Federal law requires all financial institutions to file a Currency Transaction Report (“CTR”) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000.
Valentino has paid restitution to the U.S. Treasury of $302,339, but still owes approximately $333,000 in tax penalties and interest. He also has forfeited $100,000 related to his structuring of cash deposits.
On March 25, 2019, Valentino pleaded guilty to one count of tax evasion.
Valentino, who is released on a $50,000 bond, is required to report to prison on October 28, 2019.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Hartford and Stamford Police Departments. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Milford Man Guilty of Marijuana Trafficking OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a jury in New Haven has found Robert Capelli, 33, of Milford, guilty of offenses related to his involvement in a large-scale marijuana trafficking conspiracy. A trial before U.S. District Judge Janet Bond Arterton began on July 22 and the jury returned a split verdict late yesterday.
According to the evidence presented during the trial and in other court proceedings, in 2016, the Federal Aviation Administration began investigating a Piper single-engine aircraft, owned by Donald Burns of Milford, that was making regular flights between Stratford, Connecticut, and northern California via the southwest United States. On June 28, 2017, Burns flew the aircraft from northern California to Lubbock, Texas. The next day, Burns flew the aircraft from Texas to Arkansas, and then to West Virginia and Connecticut, where he landed in the evening at Sikorsky Airport in Stratford. After it landed, a law enforcement search of the plane revealed approximately 400 pounds of marijuana in vacuum-sealed packages, and Burns was arrested. Investigators determined that the marijuana was intended for Capelli and others to distribute in Connecticut. Capelli and his associate, Scott Bodnar of Ansonia, were arrested later that day.
The investigation revealed that, over a period of approximately two years, Capelli and his associates earned millions of dollars by trafficking nearly two tons of marijuana from California to Connecticut. Members of the conspiracy also laundered more than $6 million to purchase marijuana in California, maintain properties for distribution in Connecticut, pay Burns to transport the marijuana, and for other expenses related to the conspiracy.
Capelli was convicted of one count of conspiracy to distribute, and to possess with intent to distribute, 100 kilograms or more of marijuana, and one count of possession with intent to distribute 100 kilograms or more of marijuana. Capelli was found not guilty of one count of conspiracy to launder monetary instruments, and one count of money laundering. Judge Arterton scheduled sentencing for October 25, 2019, at which time Capelli faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 80 years.
In addition, Capelli has forfeited approximately $90,000 to date, and additional forfeiture proceedings are pending.
On May 2, 2019, Bodnar pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 1,000 kilograms or more of marijuana, and one count of conspiracy to launder monetary instruments. On May 3, Capelli’s associate, Terrell Givens of Beacon Falls, pleaded guilty to the same charges. On May 6, Burns pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 1,000 kilograms or more of marijuana. In pleading guilty, the defendants also agreed to the forfeiture of cash and various items, including Burns’ Piper aircraft, a 2012 Toyota Camry belonging to Bodnar, and a 2009 Jaguar XF and approximately $8,000 in jewelry belonging to Givens.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force, the Federal Aviation Administration’s Law Enforcement Assistance Program (LEAP), the Customs and Border Protection’s Air and Marine Operations Center, the Internal Revenue Service – Criminal Investigation Division, the U.S. Marshals Service, the Stratford, Derby and West Haven Police Departments, and the Second Judicial Drug Task Force in Jonesboro, Arkansas.
The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Marc Silverman.
Bristol Man Charged with Federal Child Exploitation OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JEFFREY L. BACON, 60, of Bristol, was arrested today on a federal criminal complaint charging him with multiple child exploitation offenses.
Bacon appeared this afternoon before U.S. Magistrate Judge Donna F. Martinez in Hartford and was released on a $100,000 bond and electronic monitoring.
As alleged in the criminal complaint, in October 2018, Bacon began communicating with a 15-year-old-girl through the Kik messaging application after Bacon met the girl in a Kik chat group for teens. During their communications, that girl told Bacon she was a minor. Knowing that she was a minor, Bacon still sent the girl sexually explicit pictures of himself and described various sexual acts that he wanted to engage in with the girl. The girl told her mother who reported the communications to the police.
It is further alleged that, on October 30, 2018, a law enforcement officer assumed the girl’s Kik identity to continue to correspond with Bacon. Bacon asked the undercover officer, posing as the girl, to remind Bacon of her age. The officer responded with “15.” From October 30 to November 1, Bacon repeatedly sent sexually explicit pictures and videos of himself to the undercover officer. Bacon also requested sexually explicit pictures in return. During the course of their conversations, Bacon asked the undercover officer if he could pick her up from school so he could see her. Bacon suggested they could go to the mall where the girl could try on clothes while Bacon watched and engaged in a sexual act. Bacon also discussed going to a motel with the girl to engage in sexual acts with her.
On November 19, 2018, Bacon was arrested on related state charges.
It is alleged that, during a subsequent forensic examination of Bacon’s laptop computer, investigators found images of child pornography, including images depicting prepubescent females engaged in sexual acts with adults.
The complaint charges Bacon with enticing and attempting to entice a minor to engage in unlawful sexual activity, which carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, soliciting and attempting to solicit child pornography, which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years, and possession of child pornography, which carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Enfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Enfield Man with Multiple Felony Convictions Charged with Illegally Possessing Gun in HartfordRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging NATHANIEL RODRIGUEZ, 23, of Enfield, with one count of possession of a firearm and ammunition by a convicted felon.
The indictment was returned on July 10, 2019. Rodriguez appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the charge. If convicted of the offense, Rodriguez faces a maximum term of imprisonment of 10 years. Rodriguez was ordered detained pending trial.
As alleged in the indictment, on January 27, 2019, Rodriguez possessed a loaded M&P Bodyguard .380 caliber handgun. Prior to that date, Rodriguez sustained felony convictions in Massachusetts for firearms, assault, drug and witness intimidation offenses.
Rodriguez was arrested on state charges by Hartford Police in Hartford on January 27 and was subsequently released on bond. He has been detained since March 29 when he was arrested in Enfield in an unrelated case.
U.S. Attorney Durham stressed that charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. This case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Hartford Man Pleads Guilty to Fentanyl Distribution ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JONATHAN RIVERA, also known as “Gitto,” 26, of Hartford, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to one count of possession with intent to distribute 40 grams or more of fentanyl.
According to court documents and statements made in court, on December 5, 2018, Rivera was arrested in Hartford’s South End after he sold 25 bags of fentanyl mixed with crack cocaine to another individual. A subsequent search of Rivera’s Fairfield Avenue residence revealed more than 15,000 bags containing a similar mix of fentanyl and crack.
Judge Hall scheduled sentencing for October 16, 2019, at which time Rivera faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
Rivera, who was released on bond, was remanded to the custody of the U.S. Marshals Service at the conclusion of today’s court proceeding.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Gang Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Waterbury Man on Federal Supervised Release Charged with Illegally Possessing HandgunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging DESI WILLIAMS, 38, of Waterbury, with one count of possession of a firearm by a convicted felon.
The indictment was returned on July 1, 2019. Williams appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the charge. Williams was ordered detained pending trial.
As alleged in the indictment, on January 28, 2019, Williams possessed a loaded Smith & Wesson .22 caliber revolver.
It is further alleged that, in 2016, Williams was convicted in federal court of possession of a firearm by a convicted felon, and was previously convicted in state court of felony robbery, burglary and failure to appear offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Williams has been detained since January 28, 2019, when he was arrested by Waterbury Police on related charges.
If convicted of the offense, Williams faces a maximum term of imprisonment of 10 years.
Williams, who was on federal supervised release at the time of the alleged offense, also faces additional penalties if he is found to have violated the conditions of his supervised release.
U.S. Attorney Durham stressed that charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Waterbury Police Department. This case is being prosecuted by Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Citizen of the Dominican Republic Pleads Guilty to Immigration ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that FREDDY ANTONIO MARTE-JEREZ, 58, a citizen of the Dominican Republic last residing in Danbury, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of reentry of a removed alien.
According to court documents and statements made in court, in 1998, Marte Jerez’s wife filed an I-130 Petition for an Alien Relative with the Immigration and Naturalization Service (“INS”) providing documentation that she was a U.S. citizen and that she and Marte Jerez were legally married. After the petition was approved, Marte Jerez filed an I-485 Application for Permanent Residence or to Adjust Status. This application was denied based on Marte Jerez’s failure to disclose a prior narcotics conviction in the State of Rhode Island. In November 2000, Marte Jerez appeared before an Immigration Judge in Hartford and was released on bond while awaiting a hearing date.
In October 2007, Marte Jerez was convicted in Danbury Superior Court for sale of illegal drugs. On March 3, 2010, following completion of his state sentence, Marte Jerez was deported to the Dominican Republic.
Marte Jerez illegally reentered the U.S. and was arrested while using the name “Antonio Nunez” in Danbury. In December 2015, Marte Jerez was convicted in Danbury Superior Court of burglary in the third degree. He was sentenced to three years of incarceration, execution suspended, and three years of probation. Based on his use of a false identity, his arrest and conviction did not become known to U.S. Immigration and Customs Enforcement (ICE).
On March 19, 2018, Marte Jerez, using a different identity, was arrested in Danbury for motor vehicle offenses. His true identity was subsequently discovered through a fingerprint comparison and ICE took him into custody following his release from a state court appearance on June 27, 2018. He has been detained since his arrest.
When he is sentenced, Marte Jerez faces a maximum term of imprisonment of 10 years for illegal reentry. A sentencing date is not scheduled.
This investigation is being conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Waterbury Felon Sentenced to Prison for Possessing Loaded HandgunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that GLENN JAMISON, 37, of Waterbury, was sentenced yesterday by U.S. District Judge Janet C. Hall in New Haven to 25 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statement made in court, on January 10, 2018, Jamison possessed a loaded 9mm Ruger LC9 handgun in Waterbury. At the time, he was on state probation and had two outstanding warrants for his arrest.
Jamison’s criminal history includes numerous felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Jamison has been detained in state custody since his arrest on January 10, 2018. On April 24, 2019, he pleaded guilty in federal court to one count of possession of a firearm by a previously convicted felon. Jamison will not receive federal credit for approximately 16 months he served in state custody since his arrest.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Federal Bureau of Investigation and Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorney Natasha Freismuth.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Milford Man Sentenced to 30 Months in Federal Prison for Defrauding Elderly IndividiualRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CHRISTOPHER J. SAKELARAKIS, 35, of Milford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 30 months of imprisonment, followed by three years of supervised release, for an investment scheme that defrauded an elderly victim of $60,000.
According to court documents and statements made in court, Sakelarakis held himself out as having the necessary qualifications, experience and abilities to provide investment services to an elderly victim-investor. Sakelarakis falsely represented to the victim that he had a number of investment clients, that he was making a substantial profit including by day trading, and that he had a contact in an investment firm who provided him with stock tips. Sakelarakis also represented that he would invest in stocks, options and other financial instruments on behalf of the victim and that his compensation would be a commission on 10 percent of the profits.
In October 2017, the victim provided Sakelarakis with a $60,000 check. The funds were more than half of what the victim had saved for retirement. Within days after receiving and depositing the check, Sakelarakis withdrew $30,000 in cash, and then made additional cash withdrawals, including several large withdrawals at ATMs. Sakelarakis spent a portion of the funds at stores such as Armani Exchange, Foot Locker, Macy’s and Gamestop. In October and November 2017, Sakelarakis made several false representations in e-mails to the victim-investor relating to the status of the “investments” and the victim’s account. No funds were ever returned to the victim.
Judge Hall ordered Sakelarakis to pay full restitution, plus interest, to the victim.
Sakelarakis was arrested on October 15, 2018. On December 27, he pleaded guilty to one count of wire fraud.
Sakelarakis, who is released on a $60,000 bond, is required to report to prison on September 4, 2019.
This matter was investigated by the Federal Bureau of Investigation, Wilton Police Department and Greenwich Police Department, with the assistance of the Connecticut Department of Banking. The case was prosecuted by Assistant U.S. Attorney Michael S. McGarry and Law Student Intern Evan Marlow.
U.S. Attorney Durham noted that this case has been brought as part of the Justice Department’s Elder Justice Initiative (EJI). To learn more about EJI, please visit www.justice.gov/elderjustice.
Killingly Restaurant to Make Changes to Comply with Americans with Disabilities ActRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with the Golden Greek Restaurant and Pub in Killingly to resolve allegations that the restaurant was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by an individual with disabilities alleging that the Golden Greek was not accessible for individuals with physical disabilities. The restaurant is in the process of making the changes required by the settlement agreement, including adding accessible parking spaces, creating accessible entrances to the restaurant and patio area, and renovating the restaurant’s restrooms to make them accessible for individuals with disabilities. The restaurant will also implement new policies providing curbside carry out service for individuals with mobility disabilities and table service to individuals in wheelchairs in the restaurant’s bar area. The Golden Greek will continue to make improvements over the next 22 months.
Under federal law, private entities that own or operate places of “public accommodation,” including restaurants and bars, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
U.S. Attorney Durham noted that the ownership of the Golden Greek has worked cooperatively and collaboratively with the U.S. Attorney’s Office to address the ADA issues complained of without the need for litigation.
“The Americans with Disabilities Act ensures that individuals are able to access and enjoy the state’s restaurants, bars, and other places of public accommodation,” stated U.S. Attorney Durham. “The U.S. Attorney’s Office is committed to enforcing the ADA in order to ensure that places of public accommodation in the State of Connecticut are accessible for individuals with disabilities. We appreciate that the Golden Greek has agreed to take the steps outlined in the settlement agreement in order to greatly increase the accessibility of its facility,” said U.S. Attorney Durham.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Hartford Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ANTHONY PENA, 25, of Hartford, pleaded guilty yesterday before U.S. District Judge Janet Bond Arterton in New Haven to one count of unlawful possession of a firearm by a felon.
According to court documents and statements made in court, on June 24, 2018, acting on informant information, members of the Hartford Police Department responded to the area of 862 Albany Avenue. There, they found Mr. Pena in the driver’s seat of a parked vehicle. A search of the vehicle revealed a loaded Glock 21 .45 caliber firearm with an extended magazine. The firearm had been reported stolen in North Carolina in 2012.
In May 2012, Pena was convicted in state court of robbery in the first degree and conspiracy to commit robbery in the first degree. In May 2014, he was convicted of failure to appear in the first degree.
Judge Arterton scheduled sentencing for October 9, 2019, at which time Pena faces a maximum term of imprisonment of 10 years.
Pena has been detained since his federal arrest on June 24, 2018.
This matter is being investigated by the FBI’s Connecticut Violent Crime Task Force and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Connecticut Pain Management Doctor and His Practice Pay over $425K to Settle Improper Billing AllegationsRead the Press Release
U.S. Attorney John H. Durham, Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services, Office of Inspector General, and Connecticut Attorney General William Tong today announced that COMPREHENSIVE PAIN AND HEADACHE TREATMENT CENTERS, LLC (“CPHTC”) and its owner, MARK THIMINEUR, M.D., have entered into a civil settlement agreement with the federal and state governments in which they will pay more than $425,000 to resolve allegations that they improperly billed the Medicare and Connecticut Medicaid programs.
CPHTC is an interventional pain management medical practice with offices in Derby and Meriden, Connecticut. Thimineur is the owner of CPHTC.
The allegations against CPHTC and Thimineur arise out of improper billing for urine drug tests. There are various types of urine drug tests. Drug screening tests (also known as “qualitative” tests) determine the presence or absence of a drug or metabolite in a patient’s urine. “Quantitative” testing (also known as “definitive” or “confirmation” testing), provide a numerical concentration of a drug or metabolite in a patient’s urine.
It is alleged that CPHTC and Thimineur improperly submitted claims to Medicare and Medicaid for quantitative testing of patient urine samples, when such quantitative testing was not actually being performed. It is further alleged that CPHTC and Thimineur violated the federal and state False Claims Acts by submitting claims for alcohol tests and amphetamine/methamphetamine tests conducted on patients’ urine samples, when those tests were components of urine drug screening tests for which the CPHTC and Thimineur were already being paid by the Medicare and Connecticut Medicaid programs.
To resolve their liability, CPHTC and Thimineur will pay $427,691.90 to the federal and state governments for conduct occurring between May 15, 2013 and December 31, 2015.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case was prosecuted by Assistant U.S. Attorney Richard M. Molot and by Assistant Attorney General Michael Cole of the Connecticut Office of the Attorney General.
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.
Bridgeport Man Sentenced to More Than 17 Years in Federal Prison for Destroying Evidence in Heroin CaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that IVAN ROSARIO, also known as “Ghost,” 34, of Bridgeport, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 210 months of imprisonment, followed by five years of supervised release, for his role in the destruction of evidence.
According to court documents and statements made in court, an investigation revealed that Rosario headed a Bridgeport-based heroin trafficking organization that, between approximately April 2015 and March 2017, received at least 30 kilograms of heroin that had been transported from Mexico to Bridgeport hidden inside motorcycles equipped with secret compartments. The organization then distributed the drug in the Bridgeport area.
During the investigation, investigators seized approximately $100,000 from a hidden compartment in one of Rosario’s cars, and approximately $90,000 in cash that was hidden in the residences of family members.
On March 16, 2017, a grand jury in Hartford returned an indictment charging Rosario and six other individuals with heroin trafficking and related offenses.
Between March and May 2017, while he was detained in federal custody and awaiting trial, Rosario schemed to destroy potential evidence. As part of the scheme, Rosario used threats to force his child’s mother to destroy her cellphone because it contained “dangerous” information that would be used against him during trial. According to testimony at Rosario’s trial, the cellphone was discarded in the Long Island Sound.
On April 24, 2018, a jury found Rosario guilty of one count of causing or inducing any person to destroy evidence. The jury could not reach a verdict on one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, and found Rosario not guilty of one count of witness tampering and one count of possession of a firearm in furtherance of a drug trafficking crime.
Rosario has been detained since his arrest on March 3, 2017.
This matter has been investigated by the FBI’s Bridgeport Safe Streets Task Force, DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, Bridgeport Police Department and Stratford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Alina Reynolds.
West Haven Man Sentenced to 21 Months in Prison for Distributing CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RASHAAN WOOLFOLK, also known as “Booka,” 27, of West Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 21 months of imprisonment, followed by three years of supervised release, for his role in a New Haven drug trafficking ring.
According to court documents and statements made in court, in June 2017, the FBI’s New Haven Safe Streets/Gang Task Force initiated an investigation into a New Haven drug trafficking organization. The investigation, which included physical surveillance, 13 controlled purchases of narcotics, and court-authorized wiretaps on multiple phones, revealed that Woolfolk and other members of the organization were distributing crack cocaine and oxycodone in the New Haven area.
Woolfolk and several other members of the organization were arrested on federal criminal complaints on February 6, 2018. On February 8, 2018, a grand jury in New Haven returned a 30-count indictment charging Woolfolk and 18 other individuals with various offenses.
Woolfolk has been detained since his arrest. On March 18, 2019, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, cocaine base (“crack”).
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, which includes members from the New Haven Police Department, Milford Police Department, West Haven Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and David C. Nelson.
Thompson Man Charged with Kidnapping and Sexually Assaulting Massachusetts GirlRead the Press Release
U.S. Attorney John H. Durham, Chief Michael Shaw of the Webster (Mass.) Police Department, Colonel Stavros Mellekas of the Connecticut State Police, FBI Special Agent in Charge Brian C. Turner of the New Haven Division and FBI Special Agent in Charge Joseph R. Bonavolonta of the Boston Division announced that JOSHUA BESAW, 35, of Thompson, Connecticut, was arrested today on a federal criminal complaint charging him with offenses related to the kidnapping and sexual assault of 12-year-old girl.
Besaw appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and was ordered detained.
As alleged in the complaint, on May 31, 2019, Besaw encountered a 12-year-old girl (“minor victim”) at a park in Webster, Massachusetts, and enticed the minor victim to enter his vehicle. Besaw, who identified himself as “Chuck,” then drove the minor victim to a wooded area in Thompson, Connecticut, where he sexually assaulted her. After the assault, Besaw drove the minor victim to Dudley, Massachusetts, where he released the minor victim in a neighborhood that was unfamiliar to her. The minor victim then borrowed a phone from a stranger to contact her parents who picked her up and brought her to the police station to report the incident. Later that day, a sexual assault examination of the victim was conducted at a medical facility.
It is alleged that Besaw was identified as a suspect after an extensive investigation led by Webster Police with support from the Connecticut State Police, which included analysis of surveillance video collected from numerous residences and businesses in Connecticut and Massachusetts.
On July 10, 2019, investigators conducting surveillance of Besaw collected cigarette butts that Besaw had discarded. It is alleged that DNA evidence collected from the discarded cigarette butts matched DNA evidence collected from the minor victim on May 31, 2019.
The complaint charges Besaw with kidnapping, an offense that carries a mandatory minimum term of imprisonment of 20 years and a maximum term of imprisonment of life, and with transportation of a minor to engage in illegal sexual activity, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
U.S. Attorney Durham stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Webster Police Department, Connecticut State Police and Federal Bureau of Investigation, with the assistance of the Massachusetts State Police Crime Laboratory. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
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.
President of Insulation Contracting Firm Pleads Guilty to Antitrust and Fraud ChargesRead the Press Release
WASHINGTON – Paul M. Camara Jr., president and co-owner of an insulation contractor, pleaded guilty today in Bridgeport, Connecticut, for his role in schemes to rig bids in violation of the antitrust laws and engage in criminal fraud on insulation contracts, marking the third conviction in this ongoing investigation, the Department of Justice announced.
According to court documents, from October 2011 and continuing until March 2018, Camara, of Brooklyn, Connecticut, conspired with other insulation contractors to rig bids and engage in fraud on contracts for installing insulation around pipes and ducts on construction projects at universities, hospitals, and other public and private entities in Connecticut and elsewhere. The conspirators discussed prices and agreed on bids that inflated prices to their customers by at least 10%. In order to conceal their actions, the conspirators perpetrated the bid-rigging and fraud schemes using burner phones.
“Today’s guilty plea is the result of the coordinated effort by the Justice Department and our law enforcement partners, including the FBI and the Defense Criminal Investigative Service (DCIS), to root out collusion relating to a $45 million scheme to rig bids and fix prices on contracts to the detriment of taxpayer-funded schools, hospitals, and other businesses,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “This plea is a warning to contractors engaged in bid rigging and fraud that they will be held accountable.”
“This is the third insulation contractor executive to admit his involvement in this extensive bid rigging and fraud scheme,” said U.S. Attorney Durham for the District of Connecticut. “I commend the FBI, DCIS, and our colleagues at the Antitrust Division who, together, are ensuring that those responsible for these schemes are brought to justice.”
“Guilty pleas like today’s solidify a strong message from law enforcement to contractors and others engaged in deceit and fraud of the American public, that we will aggressively pursue those individuals with the full gravity of our collective resources until justice is served,” said Brian C. Turner, Special Agent in Charge of FBI’s New Haven Field Office.
“Ensuring the integrity of the U.S. Department of Defense’s (DoD) procurement process is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office. “Bid rigging and fraud schemes, such as the ones in this case, disrupts the integrity of the procurement process and betrays the public’s trust. Unethical decisions that occur within the DoD contractor community continue to strain the U.S. Defense budget, impacting DoD’s resources and the American taxpayer. Today’s guilty plea is the direct result of a joint effort and demonstrates the DCIS’ commitment to work with the FBI, the DOJ Antitrust Division and the U.S. Attorney’s Office, to investigate and prosecute individuals and companies that engage in anticompetitive and fraudulent activity impacting the DoD.”
The antitrust charge announced today carries a maximum penalty of 10 years in prison and a criminal fine of $1 million for individuals. The fraud conspiracy charge carries a maximum penalty of 20 years in prison and a fine of $250,000. The fines for the antitrust and fraud conspiracy charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. In addition to his guilty plea, Camara has agreed to pay restitution to the victims.
The ongoing investigation is being conducted by the Antitrust Division’s New York Office, the United States Attorney’s Office for the District of Connecticut, the FBI’s New Haven Division, and the Defense Criminal Investigative Service. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s New York Office at 212-335-8035, or visit http://www.justice.gov/atr/contact/newcase.html.
President of Insulation Contracting Firm Pleads Guilty to Antitrust and Fraud ChargesRead the Press Release
Paul M. Camara Jr., president and co-owner of an insulation contractor, pleaded guilty today in Bridgeport, Connecticut, for his role in schemes to rig bids in violation of the antitrust laws and engage in criminal fraud on insulation contracts, marking the third conviction in this ongoing investigation, the Department of Justice announced.
According to court documents, from October 2011 and continuing until March 2018, Camara, of Brooklyn, Connecticut, conspired with other insulation contractors to rig bids and engage in fraud on contracts for installing insulation around pipes and ducts on construction projects at universities, hospitals, and other public and private entities in Connecticut and elsewhere. The conspirators discussed prices and agreed on bids that inflated prices to their customers by at least 10%. In order to conceal their actions, the conspirators perpetrated the bid-rigging and fraud schemes using burner phones.
“Today’s guilty plea is the result of the coordinated effort by the Justice Department and our law enforcement partners, including the FBI and the Defense Criminal Investigative Service (DCIS), to root out collusion relating to a $45 million scheme to rig bids and fix prices on contracts to the detriment of taxpayer-funded schools, hospitals, and other businesses,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “This plea is a warning to contractors engaged in bid rigging and fraud that they will be held accountable.”
“This is the third insulation contractor executive to admit his involvement in this extensive bid rigging and fraud scheme,” said U.S. Attorney Durham for the District of Connecticut. “I commend the FBI, DCIS, and our colleagues at the Antitrust Division who, together, are ensuring that those responsible for these schemes are brought to justice.”
“Guilty pleas like today’s solidify a strong message from law enforcement to contractors and others engaged in deceit and fraud of the American public, that we will aggressively pursue those individuals with the full gravity of our collective resources until justice is served,” said Brian C. Turner, Special Agent in Charge of FBI’s New Haven Field Office.
“Ensuring the integrity of the U.S. Department of Defense’s (DoD) procurement process is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office. “Bid rigging and fraud schemes, such as the ones in this case, disrupts the integrity of the procurement process and betrays the public’s trust. Unethical decisions that occur within the DoD contractor community continue to strain the U.S. Defense budget, impacting DoD’s resources and the American taxpayer. Today’s guilty plea is the direct result of a joint effort and demonstrates the DCIS’ commitment to work with the FBI, the DOJ Antitrust Division and the U.S. Attorney’s Office, to investigate and prosecute individuals and companies that engage in anticompetitive and fraudulent activity impacting the DoD.”
The antitrust charge announced today carries a maximum penalty of 10 years in prison and a criminal fine of $1 million for individuals. The fraud conspiracy charge carries a maximum penalty of 20 years in prison and a fine of $250,000. The fines for the antitrust and fraud conspiracy charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. In addition to his guilty plea, Camara has agreed to pay restitution to the victims.
The ongoing investigation is being conducted by the Antitrust Division’s New York Office, the United States Attorney’s Office for the District of Connecticut, the FBI’s New Haven Division, and the Defense Criminal Investigative Service. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s New York Office at 212-335-8035, or visit http://www.justice.gov/atr/contact/newcase.html.