District of Connecticut

John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned indictments charging RORY MOCARSKY, 47, and DAVID BOURNE, 37, both of Hartland, with firearms offenses.

As alleged in court documents and statements made in court, on December 6, 2018, Connecticut State Police responded to Mocarsky’s residence in Hartland after reports of gunfire and explosions at the property, and after viewing a YouTube video showing Mocarsky and Bourne engaged in activities involving firearms and explosives.  A search of the property revealed an 8mm rifle, three .22 caliber rifles, a suspected homemade silencer, ammunition, a suspected improvised explosive device (“IED”), suspected post-blast IED devices and fragments, suspected explosive materials, and other electronic devices.  A related search of a location in the Tunxis State Forest in East Hartland, where Mocarsky and Bourne had recorded explosions, revealed metal fragments, a section of PVC pipe, and PVC pipe fragments from a suspected IED.

It is alleged that Mocarsky was convicted of a state felony drug offense in 1994.  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 May 7, 2019, the grand jury returned an indictment charging Mocarsky with one count of possession of firearms by a convicted felon.  Mocarsky was originally arrested on a federal criminal complaint on April 17, 2019.  He is released on a $10,000 bond and will be arraigned on the indictment on May 17.

Also on May 7, the grand jury returned an indictment charging Bourne with two counts of possession of unregistered destructive devices.  Bourne was arrested yesterday.  He appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford, entered a plea of not guilty to the charges and is detained pending a detention hearing that is scheduled for May 14.

Each of the charges carry a maximum term of imprisonment of 10 years.

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 matter is being investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco Firearms and Explosives, and Connecticut State Police.  The cases are being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven returned a 16-count indictment yesterday charging GARY JOSEPH GRAVELLE, also known as Roland Prejean, 51, last residing in New Haven, with threatening to kill, injure and intimidate people and explode property in Connecticut and elsewhere.

As alleged in the indictment, in September 2018, Gravelle used the U.S. mail, e-mail and telephone to threaten to harm people and explode property in Connecticut, Vermont and Washington.  Certain letters that Gravelle mailed contained a white powdery substance and statements that the substance was Anthrax, a biological agent and toxin.  Gravelle made threats to various mental health providers and facilities in New Haven, U.S. Probation Officers, a U.S. District Court Judge, an international airport in Vermont, a federal prison in Washington, occupants of a building in Old Saybrook, a credit union in Bristol, and organizations and religious centers in Connecticut.  He also sent a letter threatening to kill the President of the United States.

Gravelle was arrested on September 8, 2018, for violating the terms of his federal supervised release.  He was under federal supervision when he allegedly committed the offenses charged in the indictment, having been convicted and sentenced in 2013 for offenses stemming from his sending threatening communications.  He has been detained since his arrest.

The indictment charges Gravelle with 12 counts of maliciously conveying false information about an explosive, an offense that carries a maximum term of imprisonment of 10 years on each count; three counts related to the sending of hoax Anthrax letters, and offense that carries a maximum term of imprisonment of five years on each count, and one count of making threats against the President, an offense that carries a maximum term of imprisonment of five years.

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

This matter is being investigated by the Federal Bureau of Investigation, U.S. Marshals Service, U.S. Secret Service, and U.S. Postal Inspection Service.  The U.S. Attorney extends his appreciation to the U.S. Bureau of Prisons, Connecticut State Police, Connecticut Department of Energy and Environmental Protection, and many local police and fire departments for their assistance in this matter that directly affected various communities, including departments from Bristol, Guilford, Groton, Hartford, Middletown, New Haven, Old Saybrook and Southington, Yale University, and Burlington, Vermont.  This case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.

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 RYAN GRAY, 24, of Waterbury, with possession of a firearm a by a convicted felon.

The indictment was returned on April 24, 2019.  Gray appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the offense. He has been detained since his arrest by Waterbury Police on January 30, 2019.

As alleged in the Indictment, on January 30, 2019, Gray possessed two loaded handguns.

It is further alleged that Grays’s criminal history includes state felony convictions for firearms, robbery and larceny 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.

If convicted of the offense, Gray faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.

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 matter is being investigated by the Bureau of Alcohol, Tobacco Firearms and Explosives and the Waterbury Police Department.  The case is being prosecuted by Assistant U.S. Attorney Heather Cherry.

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.

John H. Durham, United States Attorney for the District of Connecticut, today announced that, on May 1, 2019, a federal grand jury in New Haven returned an indictment charging CESAR RUBEN YLLESCAS, 45, a citizen of Peru last residing in Hartford, with one count of illegally reentering the U.S. after being deported.

Yllescas was arrested yesterday in Hartford.  He appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford, entered a plea of not guilty to the charge and was ordered detained.

As alleged in court documents and statements made in court, on August 1, 2014, Yllescas was arrested by Hartford Police for possession of narcotics.  On December 21, 2015, he pleaded guilty in state court to the drug offense and to a charge of failing to appear for a related court appearance.  After serving approximately six months of imprisonment, he was removed to Peru in June 2016.

If convicted of the charge of illegal reentry, Yllescas faces a maximum term of imprisonment of 20 years.

U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.

This matter is being investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.  The case is being prosecuted by Assistant U.S. Attorney Margaret E. Maigret.

John H. Durham, United States Attorney for the District of Connecticut, announced that James Lebel, 40, formerly of Brooklyn, Connecticut, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for cashing more than $60,000 in stolen postal money orders.

According to court documents and statements made in court, Lebel was married to Michelle Barbeau, who was employed by the U.S. Postal Service at the Wauregan Post Office in Plainfield.  Between April and September 2017, Lebel and Barbeau conspired to take 179 blank U.S. Postal money orders from the Wauregan Post Office and imprint them in various denominations.  Lebel then cashed more than $60,355 in fraudulently imprinted postal money orders at a post office in Hartford.

Lebel’s criminal history includes convictions for harassment, larceny, sexual assault, burglary and narcotics offenses.

Lebel has been detained since his arrest on September 19, 2018.  On January 15, 2019, he pleaded guilty to one count conspiracy to commit wire fraud.

Barbeau pleaded guilty to the same charge on January 16, 2019.  On April 10, she was sentenced to three years of probation and eight months of home confinement.

Lebel and Barbeau were ordered to pay full restitution.

This matter was investigated by the U.S. Postal Service, Office of the Inspector General.  The case was prosecuted by Assistant U.S. Attorney Ray Miller.

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 JOSEPH GRIFFIN, 42, of Hartford, with two counts of possession with intent to distribute, and distribution of, fentanyl. 

As alleged in the indictment, on two occasions in January 2019, Griffin possessed and distributed fentanyl. 

The indictment was returned on April 2, 2019, and Griffin was arrested today.  He appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford, entered a plea of not guilty to the charges and was released on a $50,000 bond.

Griffin has been on federal supervised release since December 2017.  Prior to beginning his term of federal supervision, Griffin served a 10-year sentence for a federal narcotics conviction related to his distribution of crack cocaine.

If convicted of the new charge, Griffin faces a maximum term of imprisonment of 20 years in prison.  He also faces additional penalties if he is found to have violated the conditions of his supervised release.

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

This matter is being investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, with the assistance of the U.S. Marshals Service and Hartford Police Department.  The case is being prosecuted by Assistant U.S. Attorney David T. Huang and First Assistant U.S. Attorney Leonard C. Boyle.

John H. Durham, United States Attorney for the District of Connecticut, announced that KELVIN PETERS, 42, of Hartford was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 37 months of imprisonment, followed by three years of supervised release, for illegally possessing a loaded handgun.

According to court documents and statements made in court, on May 9, 2018, Enfield Police stopped a car in which Peters was a passenger.  A search of the vehicle revealed two loaded firearms, a Bersa Thunder 380 handgun and a High Point Model C9 9mm pistol with an obliterated serial number.  Peters admitted in an interview with officers that the guns were his.

Peters’ criminal history includes multiple convictions in state court for drug offenses, and a 2004 federal conviction for possession of a firearm by a convicted felon for which he was sentenced to seven years in prison.

Peters has been detained since his federal arrest on August 1, 2018.  On October 15, 2018, he pleaded guilty to one count of possession of firearms by a convicted felon.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Enfield Police Department.  The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.

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.

John H. Durham, United States Attorney for the District of Connecticut, announced that ADAM CLARKE, 38, of Norwich, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to three years of probation, six months of home confinement and a $750 fine for assisting a drug dealer while Clarke was working as a state judicial marshal.

According to court documents and statements made in court, in 2017, law enforcement conducted a long-term investigation into the distribution of drugs in the Norwich and New London area.  On multiple occasions in October 2017, Clarke was intercepted on a court-authorized wiretap discussing the distribution of heroin and prescription narcotics.  The investigation revealed that Clarke, who was employed as a state judicial marshal, received prescription pills from a known drug dealer while he was at work, assisted the drug dealer in avoiding detection by law enforcement by identifying law enforcement actions and vehicles, and agreed to broker at least one heroin transaction between the drug dealer and a third party.

On October 25, 2018, Clarke pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, heroin.

Clarke is no longer employed as a state judicial marshal.

This matter was investigated by the Federal Bureau of Investigation and the Norwich, Waterford and Town of Groton Police Departments.  This case was prosecuted by Assistant U.S. Attorney David C. Nelson.

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, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to a fraud offense stemming from 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.

In pleading guilty, Nwoke agreed that the loss related to his role in the scheme is at least $109,100.  The government believes that the loss attributable to Nwoke is over $1.8 million.

Nwoke was arrested in Mauritius on May 8, 2018.  He was extradited to the U.S. on May 25, 2018, and is detained.

Nwoke pleaded guilty to one count of conspiracy to commit wire fraud, an offense that carries a maximum term of imprisonment of 20 years.  Judge Hall scheduled sentencing for August 5, 2019.

Nwoke has agreed to a restitution order of $662,053.87.

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 has been investigated by the Federal Bureau of Investigation and the Connecticut Cyber Task Force.  The case is being 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.

John H. Durham, United States Attorney for the District of Connecticut, today announced that FABIOLA BASTIAN MOJICA, 38, a citizen of Mexico most recently residing in Stamford, pleaded guilty today in Hartford federal court to reentry of a removed alien.  It is Bastian Mojica’s third conviction for illegal reentry.

According to court documents and statements made in court, in May 2003, Bastian Mojica, who at the time was a lawful permanent resident of the U.S., was convicted in Stamford superior court of possession of a hallucinogen/marijuana.  Bastian Mojica’s lawful permanent residence status was revoked and, in November 2003, she was removed to Mexico.

In October 2005, Bastian Mojica was arrested by Greenwich Police and was subsequently convicted in state court of evading responsibility resulting in injury/property damage, and possession of marijuana.  She was also charged and convicted in federal court of reentry of a removed alien.  In January 2008, Bastian Mojica was removed to Mexico.

In July 2008, Bastian Mojica was arrested in Stamford.  She was again removed to Mexico in August 2008.

In January 2010, Bastian Mojica was apprehended by the U.S. Border Patrol in Columbus, New Mexico.  She was subsequently charged in the District of New Mexico with illegal reentry of a removed alien, and with violating the conditions of her supervised release related to her prior conviction for illegal reentry.  She was convicted of both offenses and, following the completion of her sentence, was removed to Mexico in April 2011.

On October 23, 2018, Bastian Mojica was arrested by Stamford Police for a motor vehicle violation, and was subsequently charged with failure to appear.  On March 7, 2019, after her identity was confirmed through a fingerprint analysis, she was arrested on a federal criminal complaint charging her with illegal reentry.  She has been detained since her federal arrest.

Bastian Mojica is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on July 17, 2019, at which time she faces a maximum term of imprisonment of 10 years.

The investigation was conducted by the Department of Homeland Security, Immigration and Customs Enforcement.  The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.

John H. Durham, United States Attorney for the District of Connecticut, today announced that SCOTT BODNAR, also known as “Pep,” 40, of Ansonia, TERRELL GIVENS, 34, of Beacon Falls, and DONALD BURNS, 61, of Milford, have pleaded guilty to federal offenses related to their involvement in a large-scale marijuana trafficking conspiracy.

According to court documents and statements made in court, in 2016, the Federal Aviation Administration began investigating a Piper single-engine aircraft, owned by Burns, 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.  Investigators determined that the marijuana was intended for Bodnar, Givens and others to distribute in Connecticut. 

The investigation revealed that, over a period of approximately two years, members of the conspiracy earned millions of dollars by trafficking nearly two tons of marijuana from California to Connecticut.   Bodnar, Givens and others also laundered approximately $6 million to purchase marijuana in California, pay for their travel to and from California, and pay Burns to transport the marijuana.

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.  Givens pleaded guilty to the same charges on May 3.  Today, Burns pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 1,000 kilograms or more of marijuana.  At sentencing, each defendant faces a maximum term of imprisonment of life.

In pleading guilty, the defendants 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 is being investigated by the Drug Enforcement Administration, the Federal Aviation Administration’s Law Enforcement Assistance Program (LEAP), the Internal Revenue Service – Criminal Investigation Division, and the Stratford, Bridgeport and Derby Police Departments.

The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Marc Silverman.

John H. Durham, United States Attorney for the District of Connecticut, announced that DAVID REICHARD, 30, of Stamford, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to a charge stemming from his role in a conspiracy to manufacture and distribute counterfeit oxycodone pills containing fentanyl analogues.

According to court documents and statements made in court, Reichard’s associates purchased fentanyl analogues from suppliers in China.  Reichard and his associates then pressed the drug into counterfeit oxycodone pills and mailed the pills to customers who had purchased them on dark web markets. 

On April 3, 2018, a court-authorized search of a Stamford residence revealed numerous pills containing approximately 330 grams of fentanyl and acetyl fentanyl, approximately 40 grams of fentanyl analogues in powder form, three pill presses, instructions on how to prepare the fentanyl analogue Carfentanil, a hazardous material suit, a gas/respirator-type mask, and numerous U.S. Postal mail envelopes.

Reichard was arrested on a federal criminal complaint on April 13, 2018.  Today, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, fentanyl analogue, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.  Judge Underhill scheduled sentencing for July 29, 2019.

This investigation is being conducted by the U.S. Postal Inspection Service, Drug Enforcement Administration, Connecticut State Police and Stamford Police Department, with the assistance of the Albanian State Police.  The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

John H. Durham, United States Attorney for the District of Connecticut, today announced that, on May 3, 2019, BARBARA MARCH, 73, of Bridgeport, pleaded guilty before U.S. District Judge Kari A. Dooley in Bridgeport to escaping from federal custody.

According to court documents and statements made in court, in October 2006, March was sentenced in the District of Columbia to 15 years of imprisonment for mailing baked goods laced with rat poison to Supreme Court justices, FBI officials and military leaders.  On April 26, 2018, March signed out of the halfway house in Washington, D.C., where she was completing her sentence, and failed to return as scheduled.  She was arrested in Bridgeport on October 9, 2018.

Judge Dooley scheduled sentencing for June 24, 2019, at which time March faces a maximum term of imprisonment of five years.  March has been detained since her arrest.

On May 10, 2018, a federal grand jury in the District of Columbia returned an indictment charging March with one count of escape from custody.  The case was transferred to the District of Connecticut for further prosecution.

This case is being prosecuted by Assistant U.S. Attorney Margaret E. Maigret.

John H. Durham, United States Attorney for the District of Connecticut, today announced that CHARLES WILKERSON, 37, of Waterbury, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to one count of distribution of 28 grams or more of cocaine base (“crack”).

According to court documents and statement made in court, in May and June 2018, law enforcement made four controlled purchases of crack cocaine from Wilkerson in Waterbury.  One of the crack cocaine sales involved approximately 34 grams of crack.

Wilkerson was arrested on a federal criminal complaint on August 16, 2018.

Judge Shea scheduled sentencing for August 5, 2019, at which time Wilkerson faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.  Wilkerson is released on a $200,000 bond pending sentencing.

Wilkerson’s criminal history includes several state convictions, including five convictions for distributing narcotics.  At the time of the drug sales in May and June 2018, Wilkerson was released on bond after being arrested in Torrington for distributing crack and other offenses.

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Federal Bureau of Investigation and Waterbury Police Department.  The case is being prosecuted by Assistant U.S. Attorney Natasha Freismuth.

John H. Durham, United States Attorney for the District of Connecticut, today announced that a grand jury in Hartford has returned an indictment charging WILLIAM MOORE, 39, of Waterbury, with drug trafficking and firearm offenses.

The indictment was returned on April 10, 2019.  Moore appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and pleaded not guilty to the charges.  He has been detained since February 25, 2019, when he was arrested on related state charges.

The indictment alleges that, on February 25, 2019, Moore possessed heroin and crack cocaine that he intended to distribute, and a Glock, Model 23, .40 caliber semi-automatic handgun.

It is further alleged that Moore’s criminal history includes felony convictions in New York for assault in the first degree and assault in the second degree.  It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce.

The indictment charges Moore with one count of possession of cocaine base (“crack”) and heroin with intent to distribute, an offense that carries a maximum term of imprisonment of 20 years; one count of unlawful possession of a firearm by a convicted felon, and offense that carries a maximum term of imprisonment of 10 years, and one count of possession of a firearm in furtherance of drug trafficking, an offense that carries a mandatory consecutive term of imprisonment of at least five years.

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 case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Waterbury Police Department.  The case is being prosecuted by Assistant United States 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.

John H. Durham, United States Attorney for the District of Connecticut, today announced that a grand jury in Hartford has returned an indictment charging RAEKWON OVERSTREET, 23, of Waterbury, with possession of a firearm by a convicted felon.

The indictment was returned on April 10, 2019.  Overstreet appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and pleaded not guilty to the charge.  He has been detained since February 19, 2019, when he was arrested on related state charges.

The indictment alleges that, on February 19, 2019, Overstreet possessed a Springfield 9mm firearm.  Prior to that date, Overstreet was convicted in state court of conspiracy to commit robbery in the first degree.

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

If convicted of the charge, Overstreet faces a maximum term of imprisonment of 10 years.

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 case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Waterbury Police Department.  The case is being prosecuted by Assistant United States 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.

John H. Durham, United States Attorney for the District of Connecticut, today announced that CALVIN VAUGHN, also known as “Squeaks,” 35, of New Britain was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 34 months of imprisonment, followed by five years of supervised release, for drug trafficking and firearm possession offenses.

This matter stems from a joint investigation headed by the DEA New Haven Task Force into a central Connecticut cocaine and crack cocaine trafficking ring.  The investigation, which included the use of court-authorized wiretaps, controlled purchases of crack cocaine and seizures of cocaine and cash proceeds, revealed that Westley Northrup, also known as “Piff,” operated a cocaine and crack cocaine trafficking ring while he was incarcerated in state custody at the Cheshire Correctional Institution.  Northrup conspired with Carlos Roman, also known as “Frizz,” of Middletown, to purchase cocaine from suppliers, including Omar Rivera of New Britain, convert some of the cocaine to crack cocaine, and then distribute crack and cocaine through a network of dealers, including Vaughn.

Vaughn and others involved in this narcotics trafficking conspiracy were arrested on July 26, 2017.  On that date, investigators executed multiple search warrants and seized approximately seven kilograms of cocaine, several pounds of marijuana, four firearms, and nearly $100,000 in cash.  One of the firearms was found in the bathroom of Vaughn’s New Britain residence.

Vaughn’s criminal history includes felony convictions for narcotics and weapon offenses.

Vaughn has been detained since his arrest.  On June 20, 2018, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine and cocaine base (“crack”), and one count of possession of a firearm by a previously convicted felon.

Northrup, Roman and Rivera pleaded guilty to related charges.  On April 12, 2018, Roman was sentenced to 120 months of imprisonment.  Northrup and Rivera await sentencing.

This matter has been investigated by the DEA New Haven Task Force, U.S. Postal Inspection Service and the Middletown and New Britain Police Departments.  The DEA New Haven 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 H. Gordon Hall.

John H. Durham, United States Attorney for the District of Connecticut, today announced that MICHAEL RIVERA, 25, of New Britain, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 36 months of imprisonment, followed by five years of supervised release, for trafficking cocaine.

According to court documents and statements made in court, Rivera’s brother, Luis “Gordo” Cirino, coordinated the shipment of multi-kilogram quantities of cocaine through the U.S. Mail from Puerto Rico to various locations in Connecticut.  Cirino, Rivera and others then distributed the drug in central Connecticut, and also in northeastern Pennsylvania.  Investigators seized approximately 13 kilograms of cocaine during the investigation.

On October 18, 2017, a grand jury in New Haven returned an indictment charging Cirino, Rivera and six associates with cocaine trafficking offenses.

Rivera was arrested on October 25, 2017.  On January 25, 2019, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, cocaine.

Cirino also pleaded guilty and, on April 29, 2019, was sentenced to 135 months of imprisonment.

This matter has been investigated by the DEA New Haven Task Force, U.S. Postal Inspection Service and the Middletown and New Britain Police Departments.  The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.

The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.

John H. Durham, United States Attorney for the District of Connecticut, announced that GELIN STERLING, 31, of Berlin, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of aiding in the preparation of false tax returns.  

According to court documents and statements made in court, Sterling owned and operated Sterling Tax Plus, LLC, a tax preparation business.  For the 2014 through 2017 tax years, Sterling prepared tax returns for numerous clients that included false mileage expenses, false charitable donations, and other false income items.

Judge Dooley scheduled sentencing for August 5, 2019, at which time Sterling faces a maximum term of imprisonment of three years.

Sterling has agreed to pay restitution of $250,000 to the IRS.  As a result of his fraudulent conduct, many of his clients’ filed tax returns will need to be amended.  The amount of Sterling’s restitution may be reduced as his clients resolve their own tax liability with the IRS.

Sterling is released on a $100,000 bond pending sentencing.

This case is being investigated by the Internal Revenue Service – Criminal Investigation Division and the Connecticut Department of Revenue Services.   This case is being prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.

John H. Durham, United States Attorney for the District of Connecticut, announced that EDWARD WILLIAMS, 58, of Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 54 months of imprisonment, followed by three years of supervised release, for fraud and identity theft offenses stemming from a mail theft and check cashing scheme.

According to court documents and statements made in court, Williams stole checks in a variety of ways and altered or filled out the checks to make them payable to him, his co-conspirators, or stolen identities that he has used.

One victim of this scheme was a Windsor resident who had written a check payable to American Express, mailed the check with his American Express bill, and later discovered that the check had been altered and cashed for $985.30.  Another individual whose identity Williams used to cash this check and commit other crimes was subsequently wrongly arrested by a local police department.

Other victims of this scheme include a West Hartford couple who had left a holiday card containing a $15 check for their newspaper delivery person outside of their mailbox, and later discovered it had been altered and cashed for $870; a West Hartford resident who learned that she had a box of checks she ordered stolen after Williams attempted to cash one of the checks for $400; and an individual who had personal checks stolen from a book he kept at his business, and was subsequently informed that Williams had deposited four of the checks totaling more than $5,000 into a bank account Williams had opened.

In total, between August 2016 and June 2017, Williams, or his co-conspirators, successfully cashed $27,311.35 in fraudulently obtained checks.  He, or others working with him, also attempted to cash $40,861.65 in fraudulently obtained checks.

Williams has been detained since his arrest on October 18, 2017.  On November 5, 2018, Williams pleaded guilty to one count of bank fraud and one count of aggravated identity theft.

Williams’ criminal history includes 74 arrests and numerous convictions, including convictions for forgery, larceny and burglary offenses.

This matter was investigated by the U.S. Postal Inspection Service, with the assistance of several police departments, including the South Windsor and East Hartford Police Departments.  The case was prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and Elena L. Coronado.

WASHINGTON – Michael S. Flynn, executive and co-owner of an insulation contractor, pleaded guilty today in Bridgeport, Connecticut, for his role in multiple schemes to rig bids in violation of the antitrust laws and to engage in criminal fraud on insulation contracts, marking the second conviction in this ongoing investigation, the Department of Justice announced. 

According to court documents, from October 2011 and continuing until March 2018, Flynn, of Ridgefield, 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, New York, and Massachusetts.  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 and an encrypted disappearing messaging app.

“Today’s guilty plea is the second relating to a $45 million scheme to cheat New England schools, hospitals, and other businesses by agreeing to fix prices on insulation contracts in violation of the antitrust laws,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.  “As this prosecution shows, the Justice Department and our law enforcement partners, including the FBI and DCIS, will use every available resource to detect and bring to justice individuals who attempt to hide their criminal conduct by using high-tech encryption apps, burner phones, or any other means.”

“This defendant profited handsomely by colluding with other insulation contractors and inflating bids on $45 million worth of insulation jobs,” said U.S. Attorney John H. Durham for the District of Connecticut.  “The scheme victimized hospitals, universities and businesses throughout New England.  I thank the FBI, DCIS, and the Antitrust Division for their ongoing efforts to bring the perpetrators of this brazen scheme to justice.”

“Based on the great work of joint law enforcement efforts, the judicial system has clearly confirmed that crimes of deceit and fraud against hard working members of our communities will not go unpunished,” 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, can cause serious economic damage to the DoD’s resources, which ultimately harms the American taxpayer and the U.S. military.  Today’s guilty plea is the direct result of a joint effort and demonstrates the DCIS’ commitment to work with the FBI, the Antitrust Division, and the U.S. Attorney’s Office to investigate and prosecute individuals and companies that engage in fraudulent activity impacting the DoD.”

The antitrust charge announced today carries a maximum penalty of 10 years in prison and a 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, Flynn has agreed to pay restitution to the victims and to resolve civil forfeiture cases connected to the criminal charges.  Flynn agreed to settle the pending forfeiture action on his home for $327,500 and to forfeit all of his seized bank accounts.

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 Section at 212-335-8035, or visit http://www.justice.gov/atr/contact/newcase.html.

Michael S. Flynn, executive and co-owner of an insulation contractor, pleaded guilty today in Bridgeport, Connecticut, for his role in multiple schemes to rig bids in violation of the antitrust laws and to engage in criminal fraud on insulation contracts, marking the second conviction in this ongoing investigation, the Department of Justice announced. 

According to court documents, from October 2011 and continuing until March 2018, Flynn, of Ridgefield, 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, New York, and Massachusetts.  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 and an encrypted disappearing messaging app.

“Today’s guilty plea is the second relating to a $45 million scheme to cheat New England schools, hospitals, and other businesses by agreeing to fix prices on insulation contracts in violation of the antitrust laws,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.  “As this prosecution shows, the Justice Department and our law enforcement partners, including the FBI and DCIS, will use every available resource to detect and bring to justice individuals who attempt to hide their criminal conduct by using high-tech encryption apps, burner phones, or any other means.”

“This defendant profited handsomely by colluding with other insulation contractors and inflating bids on $45 million worth of insulation jobs,” said U.S. Attorney John H. Durham for the District of Connecticut.  “The scheme victimized hospitals, universities and businesses throughout New England.  I thank the FBI, DCIS, and the Antitrust Division for their ongoing efforts to bring the perpetrators of this brazen scheme to justice.”

“Based on the great work of joint law enforcement efforts, the judicial system has clearly confirmed that crimes of deceit and fraud against hard working members of our communities will not go unpunished,” 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, can cause serious economic damage to the DoD’s resources, which ultimately harms the American taxpayer and the U.S. military.  Today’s guilty plea is the direct result of a joint effort and demonstrates the DCIS’ commitment to work with the FBI, the Antitrust Division, and the U.S. Attorney’s Office to investigate and prosecute individuals and companies that engage in fraudulent activity impacting the DoD.”

The antitrust charge announced today carries a maximum penalty of 10 years in prison and a 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, Flynn has agreed to pay restitution to the victims and to resolve civil forfeiture cases connected to the criminal charges.  Flynn agreed to settle the pending forfeiture action on his home for $327,500 and to forfeit all of his seized bank accounts.

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 Section at 212-335-8035, or visit http://www.justice.gov/atr/contact/newcase.html.

John H. Durham, United States Attorney for the District of Connecticut, announced that JOSHUA AMARAL, also known as “Ill Child,” 34, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 78 months of imprisonment, followed by five years of supervised release, for firearm offenses related to a shootout in Hartford’s South End in April 2017.

According to court documents and statements made in court, this matter stems from an investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford.  The investigation revealed that Wilson Velez, also known as “Wiso,” a member of the Almighty Latin Kings Nation (“Latin Kings”), was distributing heroin and fentanyl.  Velez employed family members and other Latin Kings members and associates to process, package and distribute the drugs from apartment buildings on Hamilton Street and Elliot Street in Hartford.  During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Velez and other members of the drug trafficking organization.

On April 28, 2017, Velez, Amaral and others were involved in a shootout after they confronted a rival drug dealer in the area of Franklin Avenue and Barker Street in Hartford.  Amaral, who was armed, was shot in the leg during the gunfire exchange. 

On May 1, 2018, a grand jury returned a 41-count indictment charging Velez, Amaral and eight other members and associates of the Latin Kings.

Amaral has been detained since his arrest on state charges on September 15, 2017.  On February 5, 2019, pleaded guilty in federal court to one count of conspiracy to possess a firearm in furtherance of a drug trafficking crime, and one count of possession of a firearm in furtherance of a drug trafficking crime.

Velez was arrested on related federal narcotics offenses on December 7, 2017, and was subsequently released on bond.  He has been detained since April 5, 2018, when his bond was revoked.  On February 22, 2019, he pleaded guilty to one count of conspiracy to distribute one kilogram or more of heroin and/or 400 grams or more of fentanyl, and one count of conspiracy to use and carry a firearm in relation to, and furtherance of, a drug trafficking crime.  He awaits sentencing.

The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.

This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.

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, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to illegal reentry by a removed alien. 

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.  He has been detained since his arrest, and the state charges are pending.

The charge of illegal reentry carries a maximum term of imprisonment of 20 years.  A sentencing date is not scheduled.

This matter is being investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations.  The case is being prosecuted by Assistant U.S. Attorney Hal Chen.

John H. Durham, United States Attorney for the District of Connecticut, announced that JUSTIN C. FREEMAN, 47, of Manchester, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to eight months of imprisonment, followed by one year of supervised release, for filing tax returns that substantially underreported his income.  Judge Dooley also ordered Freeman to pay a $4,000 fine.

According to court documents and statements made in court, Freeman is an attorney who owns and operates his own law practice, The Law Offices of Justin C. Freeman, based in Hartford.  For the 2010, 2011 and 2012 tax years, Freeman signed individual federal income tax returns that underreported more than $1.2 million in income he received from his law practice.  The returns were subsequently filed by his tax preparer.

For 2010, Freeman reported $476,228 in total income, but actually earned $860,041.93.  For 2011, he reported $410,002 in total income, but actually earned $1,093,147.43.  For 2012, he reported $529,673 in total income, but actually earned $696,559.43.  The tax loss to the IRS resulting from this criminal conduct was $419,259.

On November 28, 2018, Freeman pleaded guilty to one count of filing a false tax return.

Since learning he was under criminal investigation, Freeman has paid the $419,259 he owed for the 2010 through 2012 tax years, and an additional $3,329,527 in taxes, interest and penalties for the 2013 through 2016 tax years, and estimated payments for the 2017 through 2019 tax years.  He still owes approximately $1.3 million in back taxes, interest and penalties.

Freeman, who is released on a $100,000 bond, is required to report to prison on July 1, 2019.

This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Susan L. Wines.

The Justice Department announced today that US WorldMeds LLC (USWM) has agreed to pay $17.5 million to resolve allegations that it violated the False Claims Act, 31 U.S.C. §§ 3729 et seq., by paying kickbacks to patients and physicians to improperly induce prescriptions of its drugs, Apokyn® and Myobloc®. USWM is a pharmaceutical manufacturer headquartered in Louisville, Kentucky.

“The Department of Justice is committed to ensuring that physicians’ and patients’ selection of medications is not influenced by improper financial considerations,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The nation’s health care programs and taxpayers deserve health care companies that play by the rules, including the Anti-Kickback Statute.”

“Pharmaceutical companies and other healthcare providers that pay kickbacks to patients and physicians to improperly induce drug prescriptions drive up the costs of health care and divert critical resources from the Medicare program,” said U.S. Attorney John H. Durham for the District of Connecticut. “This case originated with the filing of whistleblower lawsuits currently pending in the District of Connecticut, and the whistleblowers will be handsomely rewarded for exposing this scheme. We encourage all individuals who are aware of fraud against the government to come forward. The Connecticut U.S. Attorney’s Office will continue to pursue companies and providers that defraud federal health care programs.”

When a Medicare beneficiary obtains a prescription drug covered by Medicare Part D, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copay requirements in the Medicare program, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. Under the Anti-Kickback Statute, a pharmaceutical company is prohibited from offering, directly or indirectly, any remuneration — which includes paying patients’ copay obligations — to induce Medicare patients to purchase the company’s drugs.

USWM substantially increased the price of Apokyn in or around January 2012, a decision that resulted in a corresponding increase to Medicare patients’ copays — which for many patients exceeded $5,000 per year. The United States alleged that, from the time of the price increase through June 30, 2013, USWM illegally paid Medicare patients’ Apokyn copays through a third-party foundation. During the relevant time period, USWM allegedly knew it was the only donor to the foundation’s Parkinson’s Disease fund and that virtually all of the fund’s donations were spent on Medicare Apokyn patients. The United States alleged that these payments represented illegal inducements to patients in violation of the Anti-Kickback Statute and False Claims Act.

The United States also alleged that USWM paid kickbacks to two physicians to induce prescriptions of Apokyn and Myobloc. Specifically, the United States alleged USWM paid these physicians excessive speaking and consulting fees and provided impermissible entertainment, such as lavish meals, private plane rides, and all-expense paid trips with their spouses (including trips to the Kentucky Derby).

Contemporaneously with the False Claims Act settlement, USWM has entered into a “Corporate Integrity Agreement” with the Department of Health and Human Services, Office of Inspector General. The five-year CIA requires, among other things, that USWM implement measures designed to ensure that its promotional activities and any arrangements and interactions with third-party patient assistance programs comply with the law. In addition, the CIA requires reviews by an independent review organization, compliance–related certifications from company executives and Board members, and the implementation of a risk assessment and mitigation process.

“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the U.S. Department of Health and Human Services. “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program. Simply put, OIG’s goal is to ensure that patients receive the appropriate treatments and therapies according to their medical needs, without the corrupt or profit-driven influence of drug manufacturers.”

“Ensuring the integrity of TRICARE, the U.S. Defense Department's health care program for military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Leigh-Alistair Barzey, Special Agent-in-Charge, DCIS Northeast Field Office. “The settlement agreement announced today is the direct result of a joint investigative effort and is demonstrative of the DCIS' commitment to work with its law enforcement partners to investigate kickback schemes that divert funds from TRICARE and ensure that TRICARE patients properly receive the care and treatment that they deserve.”

The False Claims Act allegations resolved by the settlement were originally brought in lawsuits filed by whistleblowers under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers will receive $3,150,000.00 as their share of the recovery.

The investigation was conducted by the Civil Division of the Department of Justice; the U.S. Attorney’s Office for the District of Connecticut; the Department of Health and Human Services Office of Inspector General; the Food and Drug Administration, Office of Criminal Investigations; and Department of Defense Office of Inspector General, Defense Criminal Investigative Service.

The cases are captioned United States ex rel. Bennett v.US WorldMeds, LLC, The Assistance Fund, Inc. et al., No. 3:13-CV-363 (D. Conn.) and United States ex rel. Chinnapongse v.US WorldMeds, LLC, No. 3:16-cv-0080 (D. Conn.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.

The Justice Department announced today that US WorldMeds LLC (USWM) has agreed to pay $17.5 million to resolve allegations that it violated the False Claims Act, 31 U.S.C. §§ 3729 et seq., by paying kickbacks to patients and physicians to improperly induce prescriptions of its drugs, Apokyn® and Myobloc®. USWM is a pharmaceutical manufacturer headquartered in Louisville, Kentucky. 

“The Department of Justice is committed to ensuring that physicians’ and patients’ selection of medications is not influenced by improper financial considerations,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The nation’s health care programs and taxpayers deserve health care companies that play by the rules, including the Anti-Kickback Statute.”

When a Medicare beneficiary obtains a prescription drug covered by Medicare Part D, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copay requirements in the Medicare program, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. Under the Anti-Kickback Statute, a pharmaceutical company is prohibited from offering, directly or indirectly, any remuneration — which includes paying patients’ copay obligations — to induce Medicare patients to purchase the company’s drugs. 

USWM substantially increased the price of Apokyn in or around January 2012, a decision that resulted in a corresponding increase to Medicare patients’ copays — which for many patients exceeded $5,000 per year. The United States alleged that, from the time of the price increase through June 30, 2013, USWM illegally paid Medicare patients’ Apokyn copays through a third-party foundation. During the relevant time period, USWM allegedly knew it was the only donor to the foundation’s Parkinson’s Disease fund and that virtually all of the fund’s donations were spent on Medicare Apokyn patients. The United States alleged that these payments represented illegal inducements to patients in violation of the Anti-Kickback Statute and False Claims Act. 

The United States also alleged that USWM paid kickbacks to two physicians to induce prescriptions of Apokyn and Myobloc. Specifically, the United States alleged USWM paid these physicians excessive speaking and consulting fees and provided impermissible entertainment, such as lavish meals, private plane rides, and all-expense paid trips with their spouses (including trips to the Kentucky Derby).

“Pharmaceutical companies and other healthcare providers that pay kickbacks to patients and physicians to improperly induce drug prescriptions drive up the costs of health care and divert critical resources from the Medicare program,” said U.S. Attorney John H. Durham for the District of Connecticut. “This case originated with the filing of whistleblower lawsuits currently pending in the District of Connecticut, and the whistleblowers will be handsomely rewarded for exposing this scheme. We encourage all individuals who are aware of fraud against the government to come forward. The Connecticut U.S. Attorney’s Office will continue to pursue companies and providers that defraud federal health care programs.”

Contemporaneously with the False Claims Act settlement, USWM has entered into a “Corporate Integrity Agreement” with the Department of Health and Human Services, Office of Inspector General. The five-year CIA requires, among other things, that USWM implement measures designed to ensure that its promotional activities and any arrangements and interactions with third-party patient assistance programs comply with the law. In addition, the CIA requires reviews by an independent review organization, compliance–related certifications from company executives and Board members, and the implementation of a risk assessment and mitigation process. 

“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the U.S. Department of Health and Human Services. “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program. Simply put, OIG’s goal is to ensure that patients receive the appropriate treatments and therapies according to their medical needs, without the corrupt or profit-driven influence of drug manufacturers.”

"Ensuring the integrity of TRICARE, the U.S. Defense Department's health care program for military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS)," stated Leigh-Alistair Barzey, Special Agent-in-Charge, DCIS Northeast Field Office.  "The settlement agreement announced today is the direct result of a joint investigative effort and is demonstrative of the DCIS' commitment to work with its law enforcement partners to investigate kickback schemes that divert funds from TRICARE and ensure that TRICARE patients properly receive the care and treatment that they deserve."

The False Claims Act allegations resolved by the settlement were originally brought in lawsuits filed by whistleblowers under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers will receive $3,150,000.00 as their share of the recovery. 

The investigation was conducted by the Civil Division of the Department of Justice; the U.S. Attorney’s Office for the District of Connecticut; the Department of Health and Human Services Office of Inspector General; the Food and Drug Administration, Office of Criminal Investigations; and Department of Defense Office of Inspector General, Defense Criminal Investigative Service.

The cases are captioned United States ex rel. Bennett v.US WorldMeds, LLC, The Assistance Fund, Inc. et al., No. 3:13-CV-363 (D. Conn.) and United States ex rel. Chinnapongse v.US WorldMeds, LLC, No. 3:16-cv-0080 (D. Conn.).  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

John H. Durham, United States Attorney for the District of Connecticut, today announced that MICHAEL DAVIS, also known as “Clep,” “Clip,” and “Michael Smith,” 33, of New Haven, pleaded guilty yesterday before U.S. District Judge Kari A. Dooley in Bridgeport to firearm and narcotics offenses.

According to court documents and statements made in court, in December 2018, law enforcement began investigating Davis related to a threatening incident in New Haven.  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.

Davis pleaded guilty to one count of possession of a firearm by a previously convicted felon, an offense that carries a maximum term of imprisonment of 10 years, and one count of possession of heroin with intent to distribute, an offense that carries a maximum term of imprisonment of 20 years.  Judge Dooley scheduled sentencing for August 7, 2019.

This matter is being investigated by the Federal Bureau of Investigation and the New Haven Police Department.  The case is being prosecuted by Assistant U.S. Attorney Nathaniel Gentile.

John H. Durham, United States Attorney for the District of Connecticut, today announced that ISAIAH HALLIDAY, 19, of Hartford, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to robbery and firearm offenses related to a scheme that victimized several individuals who sought to purchase items over mobile classifieds web apps.

According to court documents and statements made in court, between September and November 2017, more than a dozen robberies occurred in Hartford during which individuals lured would-be customers with real or nonexistent items posted to mobile classifieds web apps, such as Offer Up, Letgo and Craigslist, through the use of a fake account.  Upon arrival, the customers were robbed of money and cell phones.  In all of the robberies, assailants brandished what victims described to be a firearm.

On November 11, 2017, Hartford Police officers responded to a location on Blue Hills Avenue in response to a report of a male suffering from a gunshot wound.  Upon arrival, the victim stated that he had traveled to Mansfield Street in Hartford to meet with an individual he contacted on Offer Up to purchase an iPhone.  When he arrived, Halliday approached the front passenger door of his vehicle and pointed a black handgun at him.  After the victim attempted to drive away, Halliday fired one round at him, striking him in the right forearm.

Halliday pleaded guilty to one count of interference with commerce by robbery, an offense that carries a maximum term of imprisonment of 20 years, and one count of use of a firearm in relation to a crime of violence, an offense that carries a consecutive term of imprisonment of 10 years to life.

In pleading guilty, Halliday admitted that he and several associates were involved in other similar armed robberies and attempted robberies between September and November 2017.

Halliday has been detained since his arrest on November 17, 2017.

Judge Meyer scheduled sentencing for August 7, 2019.

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hartford Police Department.  The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.

John H. Durham, United States Attorney for the District of Connecticut, announced that JUAN TORRES RODRIGUEZ, 39, a citizen of the Dominican Republic, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 24 months of imprisonment for identity theft.

According to court documents and statements made in court, on January 27, 2018, Torres Rodriguez posed as another individual (“the victim”) in an attempt to exchange a Puerto Rican driver’s license for a Connecticut driver’s license at the Connecticut Department of Motor Vehicles (“DMV”) office in Wethersfield.  The Puerto Rican driver’s license was in the name of the victim, and Rodriguez also presented a birth certificate and a social security card bearing the name of the victim.  The victim had not given Torres Rodriguez permission to use his means of identification.

A DMV employee recognized the submitted documents to be fraudulent and confirmed that victim’s birth certificate has been reported stolen.  Torres was arrested by the Connecticut State Police shortly thereafter.

The investigation revealed that Torres Rodriguez had been removed from the U.S. in 2001, 2013 and 2014.

Rodriguez has been detained since his arrest.  On January 22, 2019, he pleaded guilty to one count of aggravated identity theft.

This matter was investigated by the Connecticut State Police and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).  The case was prosecuted by Assistant U.S. Attorney Sarah P. Karwan.

John H. Durham, United States Attorney for the District of Connecticut, announced that LUIS CIRINO, also known as “Gordo” and “G,” 42, of New Britain, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 135 months of imprisonment, followed by five years of supervised release, for trafficking cocaine.

According to court documents and statements made in court, Cirino coordinated the shipment of multi-kilogram quantities of cocaine through the U.S. Mail from Puerto Rico to various locations in Connecticut.  Cirino and his associates then distributed the drug in central Connecticut, and also in northeastern Pennsylvania.  Investigators seized approximately 13 kilograms of cocaine during the investigation.

On October 18, 2017, a grand jury in New Haven returned an indictment charging Cirino and seven associates with cocaine trafficking offenses.  Cirino has been detained since his arrest on October 25, 2017.  On January 22, 2019, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute five kilograms or more of cocaine.

In April 2007, Cirino was sentenced in New Haven federal court to 168 months of imprisonment and five years of supervised release, for crack cocaine and firearm offenses.  In 2008, his term of incarceration was reduced to 135 months and, in 2015, it was reduced to 120 months.  He was released from custody in October 2015 and was on supervised release while he was involved in the cocaine trafficking conspiracy that led to the October 2017 indictment.

Cirino still faces additional penalties for violating the conditions of his supervised release.

This matter has been investigated by the DEA New Haven Task Force, U.S. Postal Inspection Service and the Middletown and New Britain Police Departments.  The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.

The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.

John H. Durham, United States Attorney for the District of Connecticut, announced that KENNETH J. PEDROLI, 60, of Stony Brook, New York, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to one count of conspiracy to commit mail and wire fraud related to a scheme to defraud an Illinois-based company.

According to court documents and statements made in court, between approximately February 2015 and December 2018, Pedroli conspired with an employee of an Illinois-based company (“Company A”) to defraud Company A through a scheme involving purchases of electronic components that Pedroli made from Company A for a business he operated in Islandia, New York.  As part of the scheme, Pedroli was instructed by the employee of Company A to place his orders and list prices at a fraction of Company A’s published prices.  After Pedroli’s orders were submitted to Company A at the discounted prices, the products were shipped from Company A to Pedroli.  Pedroli was instructed by the Company A employee to pay only a portion of the invoiced price and to make the payments directly to the employee, which Pedroli did.

The government contends that Company A was defrauded of more than $3 million through this scheme.

Judge Hall scheduled sentencing for July 22, 2019, at which time Pedroli faces a maximum term of imprisonment of 20 years.

Pedroli is released on a $500,000 bond pending sentencing.

This investigation is being conducted by the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorney Ray Miller. 

John H. Durham, United States Attorney for the District of Connecticut, announced that SETH WATSON, 34, of Hartford, pleaded guilty today in Hartford federal court to distributing synthetic opioids and admitted that he violated the conditions of his supervised release from a prior federal conviction.

According to court documents and statements made in court, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department received information that Watson was selling heroin and cocaine from a grocery store on Mather Street in Hartford.  In February and March 2017, investigators made four controlled purchases of purported heroin from Watson.  Laboratory testing of purported heroin purchased during the first two transactions determined that the substance was fentanyl, furanylfentanyl and U-47700.  The substance purchased during the third transaction was fentanyl and U-47700, and the substance purchased during the fourth transaction was fentanyl and heroin.

On March 28, 2019, Watson was arrested after investigators conducted a controlled purchase of narcotics from Watson and found him in possession of approximately 781 bags containing a total of approximately 21 grams of a mixture of fentanyl and heroin.  He has been detained since his arrest.

Watson pleaded guilty to one count of possession with intent to distribute and distribution of fentanyl, furanylfentanyl and U-47700, an offense that carries a maximum term of imprisonment of 20 years.  He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on July 11, 2019.

On June 4, 2015, Judge Chatigny sentenced Watson to 51 months of imprisonment, followed by three years of supervised release, for possession of ammunition by a previously convicted felon.  He was released from prison in April 2016 and was on supervised release when he distributed the opioids that led to his arrest in March 2017.

When Watson is sentenced, he faces additional penalties for violating the conditions of his supervised release.

The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.

This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.

John H. Durham, United States Attorney for the District of Connecticut, announced that CARLOS SANCHEZ, 33, formerly of Middlebury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 10 months of imprisonment, followed by five years of supervised release, for sexually abusing an inmate at the Federal Correctional Institution in Danbury (FCI Danbury).

According to court documents and statements made in court, Sanchez was employed as a correctional officer at FCI Danbury.  On two occasions in July and August 2018, Sanchez engaged in sexual activity with a female inmate at the prison.

On December 10, 2018, Sanchez pleaded guilty to one count of sexual abuse of a ward.

Sanchez who is released on a $50,000 bond, is required to report to prison on May 21, 2019.

This matter was investigated by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation.  The case was prosecuted by Assistant U.S. Attorney Anastasia E. King.

John H. Durham, United States Attorney for the District of Connecticut, announced that JONATHAN REED, 34, of Enfield, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for distributing heroin and fentanyl.

This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.

According to court documents and statements made in court, at approximately 9:52 a.m. on August 26, 2016, Enfield Police and emergency medical personnel responded to a residence in Enfield and found an unresponsive 31-year-old male slumped over a coffee table in the upstairs bedroom of the residence.  The victim was pronounced deceased.  Officers searched the immediate area and seized one empty white wax fold and six full white wax folds that contained suspected heroin.  Officers also seized the victim’s iPhone.  An analysis of text messages revealed that the victim had ordered heroin from Reed the evening before the victim died.

At approximately 8:23 p.m. on October 27, 2016, the Enfield Police Department and emergency personnel responded to another residence in Enfield and found an unresponsive 36-year-old man outside the house.  The victim was transported to the hospital for medical attention and pronounced deceased.  Officers were later able to recover the victim’s cell phone and 20 white wax folds that contained suspected heroin.  Analysis of the victim’s cell phone revealed that the victim also had purchased heroin from Reed two days before his death.

Reed was arrested on a federal criminal complaint on April 27, 2017.  On November 20, 2017, he pleaded guilty to one count of distribution of heroin and fentanyl.

The investigation revealed that Christopher Barreto, of Hartford, supplied the narcotics that Reed subsequently distributed to the overdose victims.  On December 18, 2018, Judge Shea sentenced Barreto to 46 months of imprisonment.

This matter was investigated by the Drug Enforcement Administration and the Enfield Police Department.  The case was prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.

John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that ROLANDO RUSSELL, 62, of Bridgeport, waived his right to be indicted and pleaded guilty today in Hartford federal court to 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”).  On the returns, the losses attributed to Schedule Cs totaled approximately $22.2 million, resulting in a corresponding reduction of taxes owed of up to $6.2 million.

Russell pleaded guilty to two counts of aiding and assisting the filing of a false tax return, an offense that carries a maximum term of imprisonment of three years on each count.

In pleading guilty, Russell agreed that losses suffered by the IRS as a result of his fraud totaled approximately $1.5 million.

Russell is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on August 7, 2019.

As a result of Russell’s fraudulent conduct, many of his clients’ filed tax returns will need to be amended.  Russell’s clients are required to resolve their own tax liability with the IRS.

This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.

John H. Durham, United States Attorney for the District of Connecticut, announced that ERNESTO LUIS DELGADO, also known as “Pancho,” 34, of Waterbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 120 months of imprisonment, followed by five years of supervised release, for trafficking cocaine.

According to court documents and statements made in court, Delgado was a member of a drug trafficking organization in Waterbury that received kilogram-quantities of cocaine in the U.S. Mail from a source of supply in Puerto Rico, and then distributed the drug in the Waterbury area.  Delgado and other then mailed the cash proceeds generated from the sale of the cocaine, at a rate of approximately $25,000 per kilogram, to their supplier in Puerto Rico.  On July 15, 2017, investigators seized a parcel containing $100,000 in cash that Delgado had mailed at a post office in Waterbury.

Delgado was arrested on December 1, 2017.  At the time of his arrest, he was in the process of receiving two parcels, each containing two kilograms of cocaine.

Delegado has been detained since his arrest.  On January 28, 2019, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine.

On September 12, 2018, Judge Bolden sentenced Jose L. Rivera, 41, of Waterbury, to 60 months of imprisonment and four years of supervised release for his role in this cocaine trafficking ring.

This matter was investigated by the U.S. Postal Inspection Service, Drug Enforcement Administration and Waterbury Police Department.  The case was prosecuted by Assistant U.S. Attorney S. Dave Vatti.

John H. Durham, United States Attorney for the District of Connecticut, Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation in New England, announced that ROBERT V. MATTHEWS, 61, of Palm Beach Florida, pleaded guilty today in Bridgeport federal court to conspiracy, money laundering and tax evasion offenses related to multiple schemes to defraud foreign investors and financial institutions.  In addition, Matthews’ wife, MARIA MATTHEWS, 52, pleaded guilty today in Bridgeport to tax evasion.

According to court documents and statements made in court, Robert Matthews was a real estate developer in charge of The Palm House Hotel (“PHH”), a property that he sought to develop in Palm Beach.  Robert and Maria Matthews maintained residences in both Florida and Connecticut.

The EB-5 visa program is a federal program by which foreign nationals and their families are eligible to apply for lawful permanent resident status (commonly known as a “green card”) if they meet certain requirements by investing in a development project in the U.S.  Various entities in the U.S. act as intermediaries between potential foreign investors and investment projects.  One such entity, South Atlantic Regional Center, LLC (“SARC”) in Palm Beach, Florida, advertised EB-5 projects to foreign investors, collected funds from foreign investors that were earmarked for certain development projects, and made the funding available to the respective development project.

The PHH was a development project advertised by SARC to EB-5 investors between approximately 2012 and 2014.  Robert Matthews purchased the PHH property in August 2006, and then lost the property in foreclosure in 2009.  In August 2013, Robert Matthews reacquired control of the property through an entity called Palm House, LLC.  However, Robert Matthews’ brother, Gerry Matthews, was listed in incorporation documents as owning 99 percent of Palm House, LLC, and another individual, who had secured additional financing for Robert Matthews, was listed as owning the remaining 1 percent.

In pleading guilty, Matthews admitted that he and others defrauded EB-5 investors by representing that funds from EB-5 investors would be used to develop the PHH; that certain well-known individuals would be on the PHH advisory board and certain well-known entertainers, businesspeople and politicians “will be a part of the club”; and that Gerry Matthews was a member of the Palm House, LLC management team and was the 99 percent owner of the project.  EB-5 investors invested in the PHH project by providing money to bank accounts controlled by SARC.  SARC, in turn, provided EB-5 money earmarked for PHH use into accounts controlled by Robert Matthews and his associates.

While Gerry Matthews was the nominal 99 percent owner of Palm House, LLC, Robert Matthews controlled the company.  Robert Matthews and other used EB-5 funding for purposes not related to the PHH project, including for Robert and Maria Matthews’ personal gain.  In addition, there was no evidence any of the proffered well-known individuals would be on the PHH advisory board or would be members of the club.

As part of this scheme, Robert Matthews and others moved investor funds through various bank accounts located in Connecticut and Florida.  The funds were used to pay Robert and Maria Matthews’ credit card debts, and to purchase two properties located in Washington Depot, Connecticut.  One of the Washington Depot properties was a property that Robert Matthews had previously lost in foreclosure.  Robert Matthews, Nicholas Laudano and others conspired to purchase the property out of foreclosure by concealing both the relationship between the co-conspirators, and the source of the funds used to purchase the property.

Laudano is a construction contractor who continuously worked on the development of the PHH project between approximately 2006 and 2016.  He also has operated several restaurants in Florida and Connecticut.

Since approximately 2008, Robert and Maria Matthews willfully attempted to evade paying federal income tax they owed for the 2005 and 2007 calendar years in multiple ways, including by using limited liability companies, a company bank account, and their attorney’s trust account to pay for personal expenses.  For example, in approximately November 2014, Robert Matthews caused Maria Matthews to execute documents to obtain a loan from an individual with the initials K.M.  The loan was secured by one of their Washington Depot properties, which, at the time, was in the name of a shell company.  The proceeds of this loan were eventually disbursed into an account controlled by the Robert and Maria Matthews in the name of Mirabia LLC.  Robert and Maria Matthews subsequently used the loan proceeds for personal expenses without paying any of their outstanding tax liability.

The investigation also revealed that, between approximately 2007 and 2009, Robert Matthews conspired with others in a scheme to defraud T.D. Banknorth, N.A. (now TD Bank, N.A.), out of the proceeds of a construction loan by making material misrepresentations to the bank in connection with the development of the Point Breeze Hotel in Nantucket, Massachusetts.  In addition, in June 2010, Robert Matthews conspired with others in a scheme to defraud TD Bank out of its ability to foreclose on another parcel of property in Nantucket owned by Matthews.

Finally, in pleading guilty, Robert Matthews admitted that, between approximately December 2010 and January 2013, he conspired with others to defraud JP Morgan Chase Bank N.A. by misappropriating insurance proceeds earmarked for repair of one of his Washington Depot properties.

Robert Matthews pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud, an offense that carries a maximum term of imprisonment of 30 years; one count of illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years, and one count of tax evasion, an offense that carries a maximum term of imprisonment of five years.

Maria Matthews, who is also known as “Mia Matthews,” pleaded guilty to one count of tax evasion.

Robert and Maria Matthews are released on bonds pending sentencing.  Sentencing dates are not scheduled.

On March 7, 2018, Gerry Matthews, of Middlebury, Connecticut, pleaded guilty to one count of conspiracy to commit wire fraud.  On March 12, 2018, Laudano, of Boynton Beach, Florida, pleaded guilty to one count of conspiracy to commit bank fraud and one count of illegal monetary transactions.  They await sentencing.

This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and David E. Novick.

John H. Durham, United States Attorney for the District of Connecticut, Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Wethersfield Police Chief James Cetran today announced that a federal grand jury in Hartford returned an indictment yesterday charging SAMUEL NEATHERY, 29, and DAISY FELIBERTY, 35, both of Florida, with robbing a Wethersfield bank at gunpoint in December 2018.

The indictment alleges that, on December 27, 2018, Neathery and Feliberty entered the People’s United Bank located at 436 Silas Deane Highway in Wethersfield, brandished firearms and, by force, violence and intimidation, took approximately $83,000 from the bank.

The indictment charges Neathery and Feliberty with one count of armed bank robbery, an offense that carries a maximum term of imprisonment of 25 years, and one count of brandishing a firearm during a crime of violence, an offense that carries a mandatory consecutive term of imprisonment of at least seven years.

Neathery and Feliberty are currently detained in South Carolina for alleged offenses stemming from a credit union robbery in Forest Acres, South Carolina, on February 5, 2019.

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 Federal Bureau of Investigation and the Wethersfield Police Department.  The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.

John H. Durham, United States Attorney for the District of Connecticut, announced that GLENN JAMISON, 37, of Waterbury, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to one count of possession of a firearm by a previously convicted felon.

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.

Judge Hall scheduled sentencing for July 17, 2019, at which time Jamison faces a maximum term of imprisonment of 10 years.

Jamison has been detained since his arrest on January 10, 2018.

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Federal Bureau of Investigation and Waterbury Police Department.  The case is being 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.

John H. Durham, United States Attorney for the District of Connecticut, announced that ALEXANDER CALDERON, 23, of Thomaston, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 46 months of imprisonment, followed by three years of supervised release, for trafficking heroin and crack cocaine.

According to court documents and statements made in court, in the fall of 2017, the FBI, ATF and Waterbury Police Department began an investigation into drug trafficking by suspected members of “Addicted to Money,” also known as “ATM,” a violent street gang operating in Waterbury.  The investigation, which included court-authorized wiretaps, physical surveillance and controlled purchases of heroin and crack cocaine, resulted in federal charges against Calderon and 10 other individuals.

The investigation revealed that Calderon regularly sold heroin and crack cocaine to customers.

Calderon has been detained since his arrest on July 17, 2018.  On January 15, 2019, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin and cocaine base (“crack”).

This matter is being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Waterbury Police Department’s Gang Task Force.  The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and Natasha M. Freismuth, with assistance from Cynthia Serafini and Don Therkildsen of the Waterbury State’s Attorney’s Office.

John H. Durham, United States Attorney for the District of Connecticut, Joseph W. Cronin, Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Stamford Police Chief Jonathan Fontneau today announced the unsealing of three-count indictment charging VINCENT DECARO, 29, ARBER ISAKU, 29 and DAVID REICHARD, 30, all of Stamford, with offenses related to the trafficking of fentanyl analogues.

The indictment was returned on August 7, 2018.  Decaro and Isaku, who were extradited from Albania, appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and entered pleas of not guilty to the charges.  They are detained pending trial.

As alleged in court documents and statements made in court, Decaro and Isaku purchased fentanyl analogues from suppliers in China and, working out of Decaro’s residence at 77 West Hill Circle in Stamford, pressed the drug into counterfeit oxycodone pills, which they sold to customers on dark web markets.  Reichard, who lived for a short time at Decaro’s residence, helped Decaro and Isaku press pills and mail the pills to customers.

On April 3, 2018, a court-authorized search of Decaro’s Stamford residence revealed numerous pills containing approximately 330 grams of fentanyl and acetyl fentanyl, approximately 40 grams of fentanyl analogues in powder form, three pill presses, instructions on how to prepare the fentanyl analogue Carfentanil, a hazardous material suit, a gas/respirator-type mask, and numerous U.S. Postal mail envelopes.

Prior to that date, on August 23, 2017, Isaku was arrested by the Connecticut State Police after he accepted delivery of a package containing approximately 160 grams of fentanyl at his Mitchell Street residence in Stamford.

At the time of the search of Decaro’s home in April 2018, Decaro and Isaku were in Europe.  They have been detained since September 21, 2018, when they were arrested by Albanian State Police as they were attempting to cross the border from Albania into Kosovo.  A search of an apartment in Tirana where they had been staying revealed alprazolam, fentanyl and other controlled substances; tools and dies for pressing pills, and instructions for synthesizing fentanyl.

The indictment charges Decaro, Isaku and Reichard with one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of fentanyl analogues, and Decaro and Reichard with one count of possession with intent to distribute 100 grams or more of fentanyl analogues.  Both offenses carry a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.  Isaku is also charged with one count of possession with intent to distribute fentanyl analogues, and offense that carries a maximum term of imprisonment of 20 years.

Reichard was arrested on a federal criminal complaint on April 13, 2018.  He previously entered a plea of not guilty to the charges in the indictment.

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 U.S. Postal Inspection Service, Drug Enforcement Administration, Connecticut State Police and Stamford Police Department, with the assistance of the Albanian State Police.  The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

U.S. Attorney Durham thanked the U.S. Department of Justice's Office of International Affairs and Rome Attaché Cristina Posa for coordinating the extradition proceedings in this matter. 

decaro_vincent_et_al_indictment.pdf

John H. Durham, United States Attorney for the District of Connecticut, today announced that ALBERT LEE ROBINSON, 58, of Stamford, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 42 months of imprisonment, followed by three years of supervised release, for distributing narcotics 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 16, 2004, Judge Underhill sentenced Robinson to 188 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.  Robinson was sentenced as a career offender based on prior convictions for burglary, narcotics and robbery offenses.  Robinson was released from prison in August 2017 and began serving his five-year term of supervised release.

On August 14, 2018, Stamford Police arrested Robinson on state charges after he was found in possession more than 300 bags of heroin and more than 200 bags of crack cocaine, as well as baggies of powder cocaine and a jar containing marijuana.  Officers also seized a digital scale and $2,052 in cash.

On September 5, 2018, a federal grand jury in New Haven returned an indictment charging Robinson with one count of possession with intent to distribute controlled substances.  The next day, members of the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Stamford Police Department executed a federal arrest warrant for Robinson.  At this time of his arrest, Robinson possessed a bag of powder cocaine on his person.

Robinson has been detained since his federal arrest on September 6.  On December 18, he pleaded guilty to one count of possession with intent to distribute controlled substances and admitted violating the conditions of his supervised release.

Judge Underhill sentenced Robinson to 42 months of imprisonment for distributing narcotics, and a concurrent 12-month sentence for violating the conditions of his supervised release.

This case was prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Elena L. Coronado.

John H. Durham, United States Attorney for the District of Connecticut, announced that MAYCOL CAMPOS, 37, a citizen of Guatemala last residing in Attleboro, Massachusetts, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 26 months of imprisonment, followed by three years of supervised, release, for trafficking heroin.

According to court documents and statements made in court, 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 Campos regularly acquired and distributed heroin.  On one occasion, Campos provided an associate, Mario Recinos, with approximately 50 grams of heroin that Recinos, in turn, gave to Michael Luciano of New London.  Luciano, who also received heroin from other suppliers, distributed the drug through a network of street-level dealers in southeastern Connecticut.

Campos 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 members of the conspiracy.

On December 12, 2017, a grand jury in Hartford returned a 25-count superseding indictment charging Campos, Luciano, Recinos and 18 other individuals with various heroin trafficking offenses.

On November 7, 2018, Campos pleaded guilty to one count of conspiracy to possess with intent to distribute 100 grams or more of heroin.

Campos faces immigration proceedings when he is released from prison.

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.

On November 9, 2018, Recinos, a citizen of Guatemala last residing in Rhode Island, pleaded guilty to one count of conspiracy to possess with intent to distribute 100 grams or more of heroin.  On April 9, 2019, he was sentenced to 42 months of imprisonment.  He also faces immigration proceedings at the conclusion of his sentence.

This matter is being 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.

John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL KMEC, 40, of Marlborough, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 18 months of imprisonment, followed by three years of supervised release, for operating various embezzling schemes while employed at Connecticut College in New London.

According to court documents and statements made in court, Kmec began working at Connecticut College in 2006.  In 2014, Kmec was promoted to Director of Auxiliary Services of the college.  In that position, he oversaw the print shop, bookstore, vending machines, transportation, laundry services and residence halls.  He also oversaw the Camel Card program, which is an identification and debit card used at the college.  As part of his responsibilities, Kmec oversaw approval of various third-party reimbursements for services to the college.

Beginning in approximately 2014 and ending when he was terminated by Connecticut College in April 2018, Kmec defrauded the college through various embezzlement schemes, including receiving funds from the college through fraudulent billing schemes, diverting checks to the college to a bank account he controlled, diverting money from the Camel Card program to bank accounts he controlled, and misappropriating a college laptop.  He also fraudulently deposited more than 80 reimbursement checks that a contractor for the college had issued to Connecticut College students into a bank account he controlled.

Through these schemes, Kmec stole $173,010.

On November 14, 2018, Kmec pleaded guilty to one count of wire fraud.

This matter was investigated by the Federal Bureau of Investigation and the New London Police Department, and was prosecuted by Assistant U.S. Attorney Heather Cherry.

John H. Durham, United States Attorney for the District of Connecticut, announced that JODI ZILS GAGNE, 43, of Bristol, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 46 months of imprisonment, followed by three years of supervised release, for stealing more than $169,000 from individuals for whom she served as a court-appointed conservator.

According to court documents and statements made in court, Zils Gagne, an attorney, was a court-appointed conservator for several individuals in Connecticut.  A conservator is a person appointed by the probate court to oversee the financial or personal affairs of an adult who is incapable of managing his or her finances or unable to care for himself or herself.  Beginning in approximately May 2015, Zils Gagne defrauded several conserved individuals by misappropriating their money and overbilling them.  The money that Zils Gagne misappropriated was intended for the conserved persons’ medical care, housing, bills, personal expenses, and legitimate conservator fees.  Zils Gagne also misrepresented, or failed to disclose, material facts about her conservatorship activities to the Bristol probate court and others.

Through this scheme, Zils Gagne defrauded six victims of a total of $169,402.74.  She defrauded one elderly victim of approximately $136,000, and appropriated $113,000 of that money under the guise of an “investment” when, in fact, it was a 10-year note that paid only a prime rate and was signed between her (as the victim’s conservator) and Zils Gagne’s husband.  The money was used to fund her husband’s start-up company, a Bristol-based internet radio station.  The terms and details of this transaction were only disclosed after extended proceedings in the probate court, during which Zils Gagne repeatedly lied, sometimes under oath, to the probate court.

The investigation also revealed that Zils Gagne arranged the sale of two victims’ houses to her relative for less than the appraised value of the homes.  The buyer than renovated the homes, sold them for a substantial profit, and paid Zils Gagne and her husband kickbacks.

On October 10, 2018, Zils Gagne pleaded guilty to one count of mail fraud.

Judge Bryant ordered Zils Gagne, who is released on a $50,000 bond, to report to prison on July 8.

In September 2018, a Connecticut Superior Court judge suspended Zils Gagne from the practice of law.

This matter was investigated by the Federal Bureau of Investigation and the Greenwich Police Department, with the assistance of the Connecticut Office of Chief Disciplinary Counsel and the New Britain State’s Attorney’s Office.  The case was prosecuted by Assistant U.S. Attorney David T. Huang.

John H. Durham, United States Attorney for the District of Connecticut, announced that ANDREW CUNNINGHAM, 39, formerly of Windsor, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 216 months of imprisonment, followed by 10 years of supervised release, for enticing a minor to engage in sexual activity.

According to court documents and statements made in court, in March 2017, Cunningham began communicating with a 13-year-old female on Omegle, a website and mobile application designed to pair strangers for text and video chats.  Cunningham first told the minor victim that he was 17, and later stated he was 25.  Cunningham and the minor victim then communicated via text messaging and phone calls for approximately one week.  During that time, Cunningham enticed the minor victim to send him sexually explicit images of herself, and attempted to lure her to travel to Connecticut.

Cunningham has been in state custody since May 2, 2017, when he was arrested on related state charges.  He pleaded guilty in state court to illegal sexual contact with a minor and enticement of a minor, and is currently serving a three-year state sentence.  On November 6, 2018, he pleaded guilty in federal court to one count of count of enticement of a minor to engage in illegal sexual activity.

Cunningham was a registered sex offender and was on probation at the time of the offense.  In 2014, Cunningham traveled to Illinois and engaged in sexual activity with a 14-year-old girl.  He had told the girl he was 25 years old when, in fact, he was 34 at the time.  In 2015, he was convicted in Illinois of aggravated criminal sexual abuse of a minor and was sentenced to five years in prison and two years of mandatory supervised release.  He was released from prison in December 2016.

This matter was investigated by the Federal Bureau of Investigation and the Connecticut State Police, with the assistance of Connecticut State Parole.  The case was 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.

John H. Durham, United States Attorney for the District of Connecticut, today announced that JOEL C. RILEY, 47, of Wallingford, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court to one count of bankruptcy fraud.

According to court documents and statements made in court, between approximately April 2015 and July 2016, Riley fraudulently applied for and obtained loans and lines of credit in the name of another individual (the “victim”), without the victim’s knowledge or permission, using her name and personal information.  By December 2016, the outstanding debt on those loans was approximately $211,142, and Riley did not have the intent or the ability to repay the debt.

On December 15, 2016, Riley visited an attorney claiming that he had power of attorney for the victim.  Riley informed the attorney that the victim was ill and that Riley wanted to file a bankruptcy petition on her behalf.  The attorney told Riley that the attorney needed to meet with the victim to confirm her identity.

After several delays, on June 6, 2017, Riley and a woman claiming to be the victim (“the imposter”) met with the attorney at his office.  Riley had recruited the imposter to impersonate the victim and provided the imposter with the victim’s Connecticut driver’s license, which Riley had taken from the victim without her knowledge or permission.  During the meeting with the attorney, the imposter presented the driver’s license as identification.  The parties subsequently reviewed and signed a Chapter 7 bankruptcy petition, which the attorney filed with the U.S. Bankruptcy Court for the District of Connecticut.  The petition listed unsecured debts of approximately $277,000.

Later in June 2017, the victim tried to use a department store credit card and learned that a bankruptcy petition had been filed in her name, without her knowledge and authorization.  On June 28, 2017, the victim met with the attorney and stated that she did not file for bankruptcy.  That same day, Riley sent an email to the attorney stating “I clearly owe you more than an apology and clearly have not been in the right frame of mind. I need to make this right. And I know that exposes myself. You have done so much for me and I betrayed that. Please let me know what I can do to resolve this.”  The attorney then notified the bankruptcy court. 

The victim testified in bankruptcy court that her identification had been missing from her wallet when the petition was filed.  She further testified that, other than a student loan, all of the other unsecured debt listed in the bankruptcy petition was not her debt and that Riley had impersonated her in the past in order to obtain credit.  On July 21, 2017, the bankruptcy court dismissed the false bankruptcy petition in the victim’s name.

Riley is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on August 8, 2019, at which time he faces a maximum term of imprisonment of five years.

Riley has been released on a $100,000 bond since his arrest on May 7, 2018.

This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.

John H. Durham, United States Attorney for the District of Connecticut, announced that ALCIDES ALBA-GOMEZ, 29, of Providence, Rhode Island, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for trafficking fentanyl.

According to court documents and statements made in court, on September 13, 2017, Alba-Gomez and his associate, Gabri Javier Delapaz, traveled from Rhode Island to New York to pick up narcotics from a supplier.  As they were returning to Rhode Island, the Connecticut State Police stopped their car on I-95 in Old Lyme.  A search of the car revealed a package containing approximately one kilogram of fentanyl that was hidden beneath a rear seat cushion.

Alba-Gomez, who has no prior criminal history, has been detained since his arrest on September 13, 2017.  On January 24, 2019, he pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl.

Delapaz, 27, of Providence, pleaded guilty to the same offense on January 16, 2019, and is detained while awaiting sentencing.

This matter has been investigated by the Drug Enforcement Administration, Connecticut State Police Statewide Narcotics Task Force East, and New London Police Department.

The case is being prosecuted by Assistant U.S. Attorney S. Dave Vatti.

John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL DRZAL, 29, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to six months of imprisonment, followed by 10 years of supervised release, for violating the conditions of his supervised release.

According to court documents and statements made in court, on June 29, 2012, Judge Underhill sentenced Drzal to 18 months of imprisonment and 10 years of supervised release for receipt and distribution of child pornography.  The investigation revealed that Drzal used a publicly available internet file-sharing program to receive and distribute child pornography.  In June 2011, a search of Drzal’s computer, hard drives and e-mail account revealed 1,738 image files and 685 videos of child pornography.

Drzal was released from federal prison in December 2013.

On July 22, 2018, Milford Police arrested Drzal at the Connecticut Post Mall in Milford after he was caught using a mirror to look over the top of a bathroom stall while a young boy was in the adjacent stall.  Mall security video showed that he was in the bathroom for approximately four hours.

On February 28, 2019, Drzal pleaded guilty in state court to one count of risk of injury to a minor.  He is awaiting sentencing on the state charges.

The case was prosecuted by Assistant U.S. Attorney Neeraj Patel.