District of Connecticut
Press releases recorded for this federal judicial district.
U.S. Attorney Announces First Assistant U.S. Attorney, Other Office Leadership PositionsRead the Press Release
U.S. Attorney John H. Durham today announced that Leonard C. Boyle has returned to the U.S. Attorney’s Office to serve as First Assistant United States Attorney, the office’s second-ranking position.
Since July 2009, Mr. Boyle served as Deputy Chief State’s Attorney where he supervised all prosecutions and investigations conducted by the Office of the Chief State’s Attorney. Mr. Boyle previously served in the U.S. Attorney’s Office from 1986 to 1998, the last four years of which he was Chief of the Criminal Division. After a short time in private practice, Mr. Boyle returned to government service in April 1999 as a Special Attorney to the U.S. Attorney General and investigated and prosecuted corrupt relationships between law enforcement personnel and organized crime figures in the Boston area. From January 2003 to August 2004, Mr. Boyle served in the U.S. Attorney’s Office as Counsel to the U.S. Attorney, and also supervised the Office’s Corporate Fraud Unit.
U.S. Attorney Durham notes that in addition to Mr. Boyle’s earlier work as a federal prosecutor, his wealth of law enforcement and management experience includes previous service as the Director of the FBI’s Terrorist Screening Center in Washington, D.C., from March 2007 to February 2009, and as Commissioner of Connecticut’s Department of Public Safety from August 2004 to March 2007.
Mr. Boyle graduated from the University of Hartford in 1980, and from the University of Connecticut School of Law in 1983. From 1975 to 1980, Mr. Boyle was a police officer for the Town of East Hartford.
“Len Boyle is a true public servant, and we and the entire Department of Justice are tremendously fortunate that he has decided to bring his legal skill, extraordinary judgment and decades of professional experience back to our Office,” said U.S. Attorney Durham.
In addition to the appointment of Mr. Boyle as First Assistant U.S. Attorney, U.S. Attorney Durham announced a change to the supervisory structure of the office, and the appointment of several Assistant U.S. Attorneys to office leadership positions.
U.S. Attorney Durham has appointed Susan L. Wines as Executive Assistant United States Attorney. Ms. Wines has been an Assistant U.S. Attorney in the District of Connecticut since December 2007, prosecuting complex white collar crime, elder fraud and tax matters. Prior to joining the office, she was in private practice in Los Angeles and, from 1997 to 2002, was an Assistant U.S. Attorney in the Central District of California where she prosecuted many violent offenders, including members and associates of the Mexican Mafia.
For several years, the office’s Criminal Division, which continues to be led by Assistant U.S. Attorney William J. Nardini, has included three program-based units: National Security and Major Crimes, Violent Crimes and Narcotics, and Financial Fraud and Public Corruption. The Criminal Division now comprises four units, as the National Security and Major Crimes Unit has been separated into two groups: National Security and Cybercrime, which is responsible for prosecuting matters involving international and domestic terrorism, customs enforcement and identity theft, and the rapidly expanding problem of sophisticated cybercrimes, and Major Crimes, which will be responsible for prosecuting matters including immigration, child exploitation, human trafficking, civil rights and hate crimes, government program fraud and environmental crimes.
U.S. Attorney Durham has appointed Peter S. Jongbloed as Chief of the National Security and Cybercrime Unit and Vanessa Richards as Deputy Chief. Sarah P. Karwan has been elevated to the position of Chief of the Major Crimes Unit and Sarala V. Nagala will serve as Deputy Chief.
The Violent Crimes and Narcotics Unit (VCN), which includes Project Safe Neighborhoods (PSN) prosecutions, the Organized Crime and Drug Enforcement Task Force (OCDETF), and violent crime, gangs and narcotics investigations, and will continue with S. Dave Vatti as Chief of the unit. Assistant U.S. Attorney Michael J. Gustafson has been named as a new Deputy Chief of the unit and will serve as PSN Coordinator, overseeing firearms prosecutions that seek to deter the illegal possession of guns and reduce gun and gang violence. Anthony E. Kaplan, has been named as the second Deputy Chief of the Unit, and will serve as OCDETF Coordinator, which targets major drug trafficking operations responsible for the distribution of large quantities of narcotics by major drug trafficking organizations.
Within the VCN Unit, Assistant U.S. Attorney Patrick F. Caruso has been named Opioid Coordinator, with responsibilities that include managing the Office’s HEAT program and other outreach efforts, prosecuting cases related to the overprescribing and dispensing of opioids, and leading the Office’s statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
The Financial Fraud and Public Corruption Unit is responsible for investigating matters involving securities and investor fraud, public corruption, bank fraud and embezzlement, mortgage fraud, tax fraud, health care fraud, bankruptcy fraud and Foreign Corrupt Practices Act violations. David E. Novick continues to serve as Chief of the unit, and Michael S. McGarry remains as Deputy Chief.
U.S. Attorney Durham also announced that John B. Hughes remains the longstanding Chief of the Civil Division. In the Civil Division, Assistant U.S. Attorney Michelle McConaghy continues to lead the Defensive Unit, which defends claims filed against the U.S., including tort, medical malpractice, employment discrimination, immigration and foreclosures. Assistant U.S. Attorney Richard Molot heads the Civil Division’s Affirmative Civil Enforcement and Civil Rights Unit, which pursues claims on behalf of the U.S. in cases involving health care fraud, defense contractor fraud, drug diversion, forfeitures and environmental violations.
U.S. Attorney Durham also notice that Sandra S. Glover and Marc H. Silverman continue as Chief of Appeals and Deputy Chief of Appeals, respectively.
“Throughout my career, I have never failed to be impressed by the number of incredibly bright and talented individuals who choose federal service and work in our Office, and the professionalism with which they do their jobs,” said U.S. Attorney Durham. “Every member of this supervisory team and their colleagues are committed to making Connecticut a safer and better place to live, and every day I’m proud to work by their side in the cause of justice.”
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 68 Assistant U.S. Attorneys and 57 staff members at offices in New Haven, Bridgeport and Hartford.
New Haven Man Sentenced to 40 Months in Federal Prison for Illegally Possessing Firearm and AmmunitionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ROBERT EPPS, 25, of New Haven, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 40 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm and ammunition.
According to court documents and statements made in court, on August 28, 2017, EPPS participated in the sale of a stolen Smith and Wesson .223 caliber semi-automatic rifle and two rifle magazines containing a total of 39 rounds of .223 caliber ammunition. On that date, EPPS transported the rifle and ammunition to a parking lot in New Haven. He then removed the firearm and ammunition from the trunk of his vehicle and handed the items to another person who, in turn, handed them to the purchaser.
EPPS’ criminal history includes state felony convictions for narcotics distribution and identity theft.
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 February 2, 2018, EPPS pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Avi M. Perry.
Waterbury Man Pleads Guilty to Federal Child Exploitation OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that HARRY BRIGHT, also known as “Buddy Bright,” 78, of Waterbury, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of distribution of obscene matter to a minor.
According to court documents and statements made in court, in November 2017, the National Center for Missing and Exploited Children (NCMEC) contacted Homeland Security Investigations (HSI) to report that NCMEC had been notified by Facebook’s Trust and Safety team that BRIGHT was enticing a 15-year-old female through Facebook instant messaging to engage in sexual activity, and was planning on traveling to the Philippines on December 4, 2017, to meet the minor victim. The investigation revealed that BRIGHT started communicating with the minor victim in late August 2017, sent her sexually explicit messages and requested that she send him nude photographs of herself. In September 2017, BRIGHT sent the minor victim nude pictures of himself.
The investigation further revealed that BRIGHT had engaged in sexually explicit conversations with at least two other 15-year-old females in the Philippines through Facebook, and that he sent one of those minor victims a nude picture of himself.
BRIGHT was arrested on a federal criminal complaint on December 4, 2017.
BRIGHT is scheduled to be sentenced by U.S. District Judge Michael P. Shea on September 11, 2018, at which time he faces a maximum term of imprisonment of 10 years. He is released on a $75,000 bond pending sentencing.
This matter is being investigated by Homeland Security Investigations and is be being prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
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.
Stamford Man Sentenced to 5 Years in Federal Prison for Trafficking CocaineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RICHARD ROTANTE, 57, of Stamford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 60 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, on August 18, 2017, Stamford Police arrested ROTANTE on the basis of three sales of cocaine that ROTANTE had made to an individual cooperating with law enforcement. On that date, a search of ROTANTE’s person, residence and two of his vehicles revealed approximately 1.5 kilograms of cocaine, items used to process and package narcotics, and $68,923 in cash.
On December 5, 2017, ROTANTE pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine.
ROTANTE has a previous federal conviction for distributing cocaine. On April 25, 2007, he was sentenced in New Haven federal court to 12 months and one day of imprisonment, eight months of home confinement, and a fine of $3,500.
ROTANTE, who is released on a $150,000 bond, was ordered to report to prison on July 11, 2018.
This matter was investigated by the Stamford Police Department and the Federal Bureau of Investigation, with the assistance of the Stamford State’s Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Sarah Karwan.
New London Man Pleads Guilty to Federal Drug Trafficking ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BASHON WHITLEY, 27, of New London, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to count of conspiracy to possess with intent to distribute heroin, cocaine and 28 grams or more of cocaine base (“crack”).
According to court documents and statements made in court, on March 3, 2017, a court-authorized search of a New London apartment connected to WHITLEY and his uncle revealed approximately 14.5 grams of heroin, approximately 27 grams of cocaine, approximately 177 grams of crack cocaine, items used to process and package narcotics for street sale, a .380 caliber semiautomatic handgun, ammunition and $9,180 in cash. WHITLEY and his uncle were arrested on state charges at that time.
Judge Meyer scheduled sentencing for August 27, 2018, at which time WHITLEY faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
WHITLEY has been detained since his federal arrest on January 24, 2018.
WHITLEY’s uncle has been charged with federal narcotics trafficking and firearm possession offenses and is detained while awaiting trial. 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 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 Natasha M. Freismuth.
Former Connecticut Attorney Admits to Stealing over $1.3 Million from Clients, Friends and Family MembersRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that THOMAS M. MURTHA, 62, of Birmingham, Michigan and formerly of Newtown, Connecticut, pleaded guilty today in Hartford federal court to one count of wire fraud related to his theft of more than $1.3 million from victims.
According to court documents and statements made in court, MURTHA operated a law practice under the name Maher & Murtha LLC in Bridgeport. Beginning in approximately November 2011, MURTHA stole at least $1.3 million from more than 20 individuals, including law clients, friends and family members. More than $516,000 of the stolen funds were for the benefit of an individual with mental health issues. As part of the scheme, MURTHA submitted false or forged documents to victims. He also incurred charges on credit cards in the names of others without their knowledge or permission.
The investigation revealed that MURTHA used some of the stolen funds in connection with the purchase of a $725,000 house in Birmingham, Michigan.
In September 2016, MURTHA resigned from the bar after three grievance complaints were filed against him. He was arrested on a federal criminal complaint on April 5, 2017, and a grand jury returned a multi-count indictment against him on August 16, 2017.
MURTHA is scheduled to be sentenced by U.S. District Judge Michael P. Shea on September 11, 2018, at which time he faces a maximum term of imprisonment of 20 years.
MURTHA has agreed to pay total restitution of at least $1,364,119.15, and to forfeit his interests in the house in Michigan and a 2.11 carat diamond engagement ring that the government has seized.
MURTHA is released on a $10,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Greenwich Police Department, with the assistance of the Connecticut Office of Chief Disciplinary Counsel. The case is being prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and David T. Huang.
Waterbury Man Involved in Credit Card "Bust-Out" Scheme is SentencedRead the Press Release
John H, Durham, United States Attorney for the District of Connecticut, announced that JANZAYB KHAN, 29, of Waterbury, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to five years of probation for his involvement in a credit card “bust-out” scheme that defrauded more than a dozen financial institutions, and for attempting to cover up his role during a bankruptcy proceeding.
According to the court documents and statements made in court, KHAN provided his personal information to a co-conspirator so that the co-conspirator could obtain credit cards in KHAN’s name. In total, the co-conspirator obtained 31 credit cards in KHAN’s name from more than a dozen financial institutions. In many cases, the credit card applications contained false statements about KHAN’s income, assets, address and employment history. Then, within a short period in January 2013, nearly all of the available credit on the cards were rapidly utilized or “busted out.” More than $59,000 was spent on cash advances, gift cards and precious metals. Some of the proceeds from the cash advances were deposited and/or transferred to bank accounts in the name of KHAN’s co-conspirator and/or the co-conspirator’s relatives.
In addition, almost $70,000 was charged in sham transactions at three merchants, who then issued checks from the proceeds that were later deposited into bank accounts in the name of the co-conspirator and/or the co-conspirator’s relatives.
The co-conspirator paid KHAN approximately $10,000 in cash for his role in the scheme.
After the bust-out, there was more than $165,954 in accumulated debt on the 31 cards in KHAN’s name. In June 2013, KHAN filed for Chapter 7 bankruptcy in U.S. Bankruptcy Court and attempted to discharge all of his credit card debt. In his bankruptcy court filings, KHAN falsely stated that the majority of his debt was due to gambling losses as casinos. KHAN also made a number of other false statements under oath during an examination by the U.S. Trustee in his bankruptcy case. The U.S. Bankruptcy Court later denied the discharge of KHAN’s debts.
KHAN was arrested on a federal criminal complaint on April 4, 2017. On December 11, 2017, he pleaded guilty to one count of conspiracy to commit bank fraud and one count of making a false oath in a bankruptcy proceeding.
This matter is being investigated by the U.S. Secret Service and is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Greenwich Store Agrees to Comply with ADA and Permit Service AnimalsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with The UPS Store #1217 in the Riverside section of Greenwich (the “Riverside UPS Store”), to resolve allegations that the store was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by an individual with disabilities alleging that the Riverside UPS Store required her to remove her service animal from the store as a condition of service. As a result of the settlement agreement, the store is in the process of posting signage indicating “Service Animals Welcome,” implementing a “Service Animal Policy,” which includes the types of legally permissible inquiries store employees may make of a customer who enters the store with a service animal, and training employees regarding the policy. Additionally, the Riverside UPS Store will compensate the complainant in the amount of $1,000.
Under federal law, private entities that own or operate places of “public accommodation,” including retail stores, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages and civil penalties.
U.S. Attorney Durham noted that the owner of the Riverside UPS Store has worked cooperatively with the U.S. Attorney’s Office to promptly address the ADA issues without litigation.
“The Americans with Disabilities Act ensures that individuals are able to access our state’s retail stores, service establishments and other places of public accommodation,” said U.S. Attorney Durham. “The U.S. Attorney’s Office is committed to enforcing the ADA, which requires businesses to appropriately serve the diverse populations of patrons who live, work and visit Connecticut. We appreciate the Riverside UPS Store’s commitment to increasing access to its store for individuals with disabilities who require service animal assistance.”
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Citizen of Mexico Sentenced to 3 Years for Trafficking Heroin and Fentanyl, Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JESUS GOMEZ-VALDIVIA, 39, a citizen of Mexico, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment for drug trafficking and immigration offenses.
According to court documents and statements made in court, on October 12, 2017, the Drug Enforcement Administration received information that GOMEZ was couriering narcotics on a flight that had departed Los Angeles International Airport and would be arriving at Tweed New Haven Airport later that day. DEA Agents traveled to Tweed New Haven Airport and, after the flight landed, identified two pieces of luggage that GOMEZ had checked. Agents then met GOMEZ in the baggage claim area after he retrieved his luggage. GOMEZ was arrested after investigators discovered that nearly two kilograms of heroin and approximately 500 grams of fentanyl had been sewed into one of the suitcases.
The investigation also revealed that GOMEZ was deported from the U.S. to Mexico in November 2001, and subsequently reentered the U.S. illegally.
On December 13, 2017, GOMEZ pleaded guilty to one count of possession with intent to distribute controlled substances and one count of reentry of a removed alien.
GOMEZ has been detained since his arrest. He will be deported to Mexico when he is released from prison.
This matter was investigated by the Drug Enforcement Administration with the assistance of the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Torrington Man Involved in Medicaid Fraud Scheme is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MAURICE SHARPE, 46, of Torrington, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to five years of probation for committing health care fraud.
According to court documents and statements made in court, in February 2011, SHARPE and his mother, Patricia Lafayette, and another individual formed Family First Community Support Services, LLC, a social services agency located in Torrington. SHARPE was the office manager for the agency. Lafayette and the other individual approached Anne Charlotte Silver, a licensed clinical social worker who owned and operated Silver Counseling Services, LLC, in Canton and Bantam. Lafayette and the other individual proposed a scheme to Silver to defraud Medicaid by permitting Lafayette and the other individual to bill Medicaid for psychotherapy services using Silver’s Medicaid provider number. The services were either performed by unlicensed individuals or not performed at all. Under the scheme, Silver kept 25 percent of the proceeds, and paid the remaining 75 percent to Lafayette and the other individual.
Medicaid was defrauded of approximately $1.6 million through this scheme, of which Lafayette received more than $1.2 million.
On December 13, 2016, SHARPE pleaded guilty to one count of health care fraud and admitted that he submitted claims to Medicaid for psychotherapy services that falsely represented that Silver had personally provided the services. SHARPE also admitted that he submitted hundreds of claims to Medicaid for psychotherapy services purportedly provided to SHARPE’s family members, including SHARPE’s children and nieces and nephews, when no such services were ever provided. SHARPE also assisted in the preparation of records that falsely documented the nature and extent of the services received by his family members.
Judge Bolden ordered SHARPE to restitution of $211,131.
Lafayette and Silver also pleaded guilty to health care fraud for their roles in the scheme. On April 27, 2017, Lafayette was sentenced to 21 months of imprisonment and six months of home confinement. On May 8, 2017, Silver was sentenced to 10 months of imprisonment. Lafayette and Silver were ordered to pay restitution of $1.6 million.
This matter is being prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
This case has been jointly investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office, with assistance from the Connecticut Attorney General’s Office. U.S. Attorney Durham thanked the Connecticut Department of Social Services for their role in identifying the fraudulent scheme and supporting the investigation and prosecution of the case.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Stamford Refuse Company Owner Pleads Guilty to Failing to File Tax ReturnsRead the Press Release
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 WAYNE MARGARUM, SR., 71, of Stamford, pleaded guilty today in Hartford federal court to two counts of willful failure to file an income tax return.
According to court documents and statements made in court, for more than 40 years, MARGARUM has owned and operated Margarum Refuse, providing garbage removal services for customers in the Stamford area and parts of Westchester County, New York. The business services approximately 600 to 700 clients with fees ranging from $25 to $60 per month. Neither MARGARUM nor his business has filed tax returns for the tax years 2004 until the present.
In pleading guilty, MARGARUM has agreed to make $356,330 in restitution to the U.S. Treasury, and to cooperate with the IRS to pay all outstanding taxes, interest and penalties.
MARGARUM is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 19, 2018, at which time he faces a maximum term of imprisonment of two years and a maximum fine of approximately $700,000.
MARGARUM is released on bond pending sentencing.
This matter has been investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Hartford Man Pleads Guilty to Selling Heroin and Fentanyl to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JOSE GONZALEZ, also known as “Montana,” “Beat Montana” and “Carl Montana,” 22, of Hartford, pleaded guilty yesterday in Hartford federal court to one count possession with intent to distribute, and distribution of, 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 10:30 a.m., on April 26, 2017, East Hartford Police and emergency medical personnel were dispatched to a residence on Main Street in East Hartford on a report of an unconscious male who was not breathing. First responders located 20-year-old male on the couch in the living room and pronounced him deceased. At the scene, investigators located and collected drug paraphernalia, several empty wax baggies, and the victim’s cellphone.
The Office of the Chief Medical Examiner subsequently determined that the victim’s death was caused by “acute intoxication due to the combined effects of alprazolam, fentanyl and heroin.”
The investigation, which has included witness interviews and analysis of the victim’s cellphone, revealed that the victim traveled to Hartford the night before his death and purchased heroin/fentanyl from GONZALEZ. Analysis of another individual’s cellphone revealed that GONZALEZ sold heroin and fentanyl from at least December 2016 through April 2017.
GONZALEZ was arrested on a federal criminal complaint on November 30, 2017.
GONZALEZ is scheduled to be sentenced by U.S. District Judge Michael P. Shea on August 15, 2018, at which time he faces a maximum term of imprisonment of 20 years. He has been detained since his arrest.
This matter is being investigated by the Drug Enforcement Administration’s Hartford Task Force, East Hartford Police Department and Monroe Police Department. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Bridgeport Grocery Store Owner Pleads Guilty to Federal Tax ChargeRead the Press Release
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 SAMIR FATTAH, 55, of Oxford, waived his right to be indicted and pleaded guilty today in New Haven federal court to one count of filing a false tax return.
According to court documents and statements made in court, FATTAH and his father jointly own Abu-Goush Market, doing business as International Farmers Market (“AGM”), a grocery store in Bridgeport. FATTAH was responsible for AGM’s day-to-day operations, including making cash deposits to AGM’s business bank accounts. During 2011, 2012 and 2014, without his father’s knowledge and approval, FATTAH deposited hundreds of thousands of dollars of AGM’s net cash receipts into his personal bank accounts. FATTAH used some of the funds to pay AGM’s business expenses, but embezzled a total of $213,086 through this scheme.
FATTAH failed to pay federal income taxes on the embezzled income for the 2011, 2012 and 2014 tax years resulting in a total tax loss of $54,067.
FATTAH is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on August 16, 2018, at which time he faces a maximum term of imprisonment of three years and a fine of up to $100,000. FATTAH also has agreed to repay the U.S. Treasury $54,067 in restitution for the taxes he failed to pay, and additional penalties and interest that have accrued on his unpaid taxes.
FATTAH is released on bond pending sentencing.
This matter has been investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Two Men Guilty of Federal Charges Related to Large-Scale Fencing OperationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found GEORGE J. CONNELLY, JR., 48, of New Haven, and WILLIAM REIDELL, 41, of Branford, guilty of federal offenses related to their role in a large-scale fencing operation. The trial before U.S. District Judge Michael P. Shea began on May 10 and the jury returned the guilty verdicts this afternoon.
According to the evidence at trial, CONNELLY and Paul Muzyka operated a licensed secondhand store, Ace Amusements, located at 42 Kimberly Avenue in New Haven. At Ace Amusements, CONNELLY and Muzyka knowingly purchased stolen property from “boosters,” who typically were shoplifters with opioid addictions. The boosters stole the goods from retail stores such as Home Depot, Target, CVS, and Lowe’s, and sold the goods at Ace Amusements for approximately one-third of their retail prices. CONNELLY and Muzyka then resold the stolen goods at Ace Amusements, and also online at websites such as eBay. CONNELLY and Muzyka also sold property to resellers, including REIDELL, who then resold the property online using online websites.
The trial evidence showed at least $1.5 million in sales on eBay from 2007 to 2016 by individuals, including REIDELL, who purchased stolen items at Ace Amusements to resell online.
The jury found CONNELLY and REIDELL guilty of one count of conspiracy to commit the interstate transport of stolen property, an offense that carries a maximum term of imprisonment of five years. The jury also found CONNELLY guilty of two counts, and REIDELL guilty of one count, of interstate transport of stolen property, an an offense that carries a maximum term of imprisonment of 10 years on each count. The jury found CONNELLY not guilty of one count of interstate transport of stolen property.
CONNELLY and REIDELL are released on $100,000 bonds pending sentencing. Sentencing dates are not yet scheduled.
On March 16, 2018, Muzyka, of North Haven, pleaded guilty to one count of conspiracy to commit the interstate transport of stolen property and one count of interstate transport of stolen property. He awaits sentencing.
This investigation has been conducted by the Federal Bureau of Investigation, with assistance from the Connecticut State Police, U.S. Marshals Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut Department of Correction, Connecticut Chief State’s Attorney’s Office, and the New Haven, North Haven, Milford, West Haven, Wallingford, Hamden and Orange Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and David T. Huang.
Hartford Man Who Distributed Fentanyl is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MELVIN CORREA, 51, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to approximately five months of imprisonment, time already served, and five years of supervised release, for distributing fentanyl.
According to court documents and statements made in court, between September 24 and October 9, 2016, overdose deaths in Southington, Montville, Manchester and East Hartford were connected to heroin/fentanyl being distributed in dose bags marked with a specific brand stamp. In late October 2016, law enforcement learned that CORREA was selling fentanyl in bags marked with the same brand stamp in Hartford.
On November 3, 2016, as part of a controlled purchase of heroin/fentanyl, CORREA told an undercover police officer that he had bags of the drug marked with the same brand stamp, but cautioned that it was “good stuff” and “real strong,” and that someone had died two days earlier by overdosing on it. Later that day, the undercover officer met CORREA at 109 Franklin Avenue and purchased 200 bags of “heroin” for $600. On November 7, 2016, the undercover officer purchased another 300 bags of the drug from CORREA for $900. The bags bore the same brand stamp on those recovered from the scenes of the identified overdose deaths.
Subsequent laboratory testing of the purchased drugs revealed that the bags contained only fentanyl
As investigators sought to identify CORREA’s source of supply, they made additional purchases of fentanyl from CORREA. During some of the transactions, CORREA was assisted by his associate, Jovii Valentin.
CORREA and Valentin were arrested on December 22, 2016.
CORREA was detained until his release on bond on May 25, 2017. On November 2, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, fentanyl.
Valentin pleaded guilty to the same charge on November 8, 2017, and awaits sentencing. He has been detained since his arrest.
This matter was investigated by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The FBI Task Force includes members of the FBI, 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.
Windsor Woman Who Embezzled $190,000 from Employer Sentenced to PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that REBECCA BLOCK, 43, of Windsor, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 12 months and one day of imprisonment, followed by one year of supervised release, for embezzling approximately $190,000 from her former employer and failing to pay federal income taxes on the embezzled income.
According to court documents and statements made in court, BLOCK was employed by PG Life Planning Associates, Inc. in West Hartford. Between 2010 and 2013, BLOCK stole from the company by issuing more than 200 checks payable to herself and depositing those checks into her personal bank account. She concealed the embezzlement from her employer by disguising the payments in PG Life’s internal accounting records as legitimate business expenses. BLOCK embezzled approximately $190,399 over the approximately four-year period, and failed to report a total of $42,004 in income taxes on her 2010 through 2013 federal tax returns.
On February 20, 2018, BLOCK pleaded guilty to one count of filing a false tax return.
Judge Underhill ordered BLOCK to make restitution in amount of $190,399 to PG Life, and $42,004, plus applicable interest and penalties, to the IRS.
BLOCK, who is released on a $40,000 bond, was ordered to report to prison on August 15, 2018.
This investigation was conducted by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Hartford Man Guilty of Sex Trafficking of MinorsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a federal jury in New Haven today found TONEY KELSEY, also known as “Blaze,” 26, of Hartford, guilty of sex trafficking of minors. The trial before Chief U.S. District Judge Janet C. Hall began on May 15.
According to the evidence at trial, in late May 2015, KELSEY recruited a 17-year-old female to work in prostitution with the profits to be split evenly between them. On the day they met, KELSEY engaged in sexual activity with the minor victim. KELSEY posted advertisements on the Backpage and Cityvibe websites soliciting customers for the minor victim, and the minor victim saw prostitution clients at hotels in the greater Hartford area in May and June 2015. The minor victim was then recovered by law enforcement.
In November 2016, KELSEY used his Facebook account to contact a second minor victim, who was 15 years old at the time. KELSEY asked the minor victim if she wanted to earn “fast money” giving “sexual favors” to clients and promised the minor victim $300 per hour. The minor victim represented that she was 17 years old and KELSEY responded “Cool u old enough.” KELSEY picked up the minor victim at her house and took her to his Hartford residence. From there, KELSEY arranged “missions,” or prostitution appointments, for the minor victim, and KELSEY drove her to the appointments. During this time, KELSEY, the minor victim and two other individuals were involved in a car accident. The next day, KELSEY had arranged prostitution appointments for the minor victim at the Cityside Inn on the Berlin Turnpike in Wethersfield. At the motel, one prospective client arranged by KELSEY decided not to engage in sexual activity with the minor victim because of the scars on her face sustained during the car accident.
On the morning of November 18, 2016, KELSEY left the minor victim and another female at the Cityside Inn. Wethersfield Police recovered the minor victim near the motel.
The jury found KELSEY guilty of one count of conspiracy to commit sex trafficking of a minor and two counts of sex trafficking of minors.
During the trial, the jury also heard evidence of a third minor victim, a 17-year-old girl that KELSEY contacted through a social media application in May 2016. KELSEY posted a photograph of the minor victim on Backpage, where he solicited prostitution clients for her. He then drove the minor victim to two prostitution appointments.
KELSEY has been detained since his arrest by Wethersfield Police on related state charges on November 30, 2016.
Chief Judge Hall scheduled sentencing for August 14, 2018, at which time KELSEY faces a minimum term of imprisonment of 10 years and a maximum term of life imprisonment.
This investigation has been conducted by the Federal Bureau of Investigation, Connecticut State Police, Homeland Security Investigations, Wethersfield Police Department and Hartford Police Department, through the Connecticut Human Trafficking Task Force. The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and Marc H. Silverman.
Windsor Locks Man Pleads Guilty to Federal Drug Trafficking and Money Laundering OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OSCAR MONTOYA, 62, of Windsor Locks, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to drug trafficking and money laundering offenses related to the distribution of heroin and various prescription medications.
According to court documents and statements made in court, beginning in approximately 1998, MONTOYA’s wife, Christina Miles, who is a retired nurse, illegally possessed, dispensed and sold prescription medication and other controlled substances. MONTOYA knew of Miles’ illegal activity and, at Miles’ direction, dispensed pills to at least one of Miles’ drug customers. MONTOYA also was aware that family members outside of Connecticut were mailing pills to Miles at their Windsor Locks residence, and that his wife was selling the pills for profit.
On August 4, 2016, members of the North Central Narcotics Task Force and the DEA conducted a court-authorized search of Miles and MONTOYA’s residence at 350 North Street in Windsor Locks and seized a large quantity of various prescription medications, approximately two pounds of marijuana, $10,093 in cash and more than $13,000 in gift cards. Miles and MONTOYA were arrested on state charges after the search.
The investigation revealed that, through this drug trafficking conspiracy, Miles and MONTOYA amassed more than $700,000 in a number of individual and jointly held bank accounts. The investigation also revealed that, in April 2017, Miles and MONTOYA used $17,359 of drug proceeds to purchase 11 U.S. Postal Service money orders and a bank cashier’s check payable to a New Jersey-based moving company for a planned move from Connecticut to New Mexico.
Miles and MONTOYA were arrested on federal charges on November 16, 2017. On February 2, 2018, another court-authorized search of their North Street residence revealed additional drug evidence and $41,904 in cash.
MONTOYA pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, oxymorphone, hydrocodone and alprazolam, an offense that carries a maximum term of imprisonment of 20 years, and one count of engaging and attempting to engage in a monetary transaction affecting interstate commerce, involving criminally derived property of a value greater than $10,000, an offense that carries a maximum term of imprisonment of 10 years.
In pleading guilty, MONTOYA agreed to forfeit his interest in the Windsor Locks residence and $767,056.74 seized from the residence and multiple bank accounts.
Judge Meyer scheduled sentencing for September 4, 2018. MONTOYA has been detained since his federal arrest.
Miles pleaded guilty to the same charges on May 15, 2018, and is detained while awaiting sentencing. She also has agreed to forfeit her interest in the Windsor Locks residence and the seized money.
This matter is being investigated by the Drug Enforcement Administration’s Tactical Diversion Squad and the U.S. Marshals Service with the valuable assistance of the North Central Narcotics Task Force and the Windsor Locks, Enfield, Vernon, East Windsor, Manchester and Suffield Police Departments. The case is being prosecuted by Assistant U.S. Attorneys David X. Sullivan and Patrick F. Caruso.
Former Hamden Police Officer Pleads Guilty to Steroid Distribution ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BRYAN KELLY, 46, of East Haven, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of possession with intent to distribute anabolic steroids.
According to court documents and statements made in court, in December 2017, the Statewide Narcotics Task Force West conducted a court-authorized search of an individual’s residence in Hamden and seized approximately 25,000 pills and 530 vials of anabolic steroids. Subsequent analysis of the individual’s cell phone revealed numerous text messages relating to KELLY’s purchase and redistribution of steroids. At the time of the search, KELLY was a police officer with the Hamden Police Department.
The investigation revealed that KELLY purchased steroids from his source of supply since approximately October 2016. He personally used some of the steroids and distributed some to friends and colleagues.
The offense carries a maximum term of imprisonment of 10 years and a fine of up to $500,000. A sentencing date is not scheduled.
KELLY is released on a promise to appear pending sentencing. He has retired from the Hamden Police Department.
This matter is being investigated by the Connecticut State Police, Statewide Narcotics Task Force West, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan with the assistance of the State’s Attorney for the New Haven Judicial District.
West Hartford Healthcare Facility Agrees to Increase Accessibility in Order to Comply with ADARead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached settlement agreements with ProHealth Physicians, Inc. (“ProHealth”) and Udolf 631, LLC (“Udolf Properties”) to resolve allegations that a ProHealth office in West Hartford was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreements resolve an ADA complaint filed by an individual with disabilities alleging that the ProHealth office, located at 631 Quaker Lane South in West Hartford, was not accessible to individuals with physical disabilities. ProHealth leases the premises from Udolf Properties.
ProHealth and Udolf Properties are in the process of making the changes to the Quaker Lane office required by the settlement agreements, which include improving the accessibility of the facility’s entrances and access routes, increasing the number of accessible parking spaces and adding a van accessible parking space, adding accessible features to restrooms, reducing barriers for patients to access check-in and check-out areas, ensuring access to all patient areas of the facility, and adding an accessible exam table and method for ensuring access to diagnostic testing facilities for individuals with disabilities. Udolf Properties will make improvements over the next six months and ProHealth will continue to make improvements over the next two years.
Under federal law, professional offices of health care providers and their landlords are considered “public accommodations” and are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
U.S. Attorney Durham noted that the leadership of both ProHealth and Udolf Properties have worked cooperatively and collaboratively with the U.S. Attorney’s Office to expeditiously address the ADA issues without litigation and to make comprehensive changes to the Quaker Lane office facility to improve accessibility.
“The Americans with Disabilities Act ensures that individuals are able to access the offices of health care providers and other public accommodations,” said U.S. Attorney Durham. “We appreciate the willingness of ProHealth and Udolf Properties to greatly increase the accessibility and usability of the Quaker Lane office for individuals with disabilities.”
Any member of the public who wishes to file a complaint alleging that the office of a health care provider or any other place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Nigerian National Charged in Phishing Scheme that Victimized Groton School EmployeesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that a federal grand jury in New Haven returned an indictment today charging OLUKAYODE IBRAHIM LAWAL, 35, a citizen of Nigeria residing in Smyrna, Georgia, with fraud and identity theft offenses stemming from a scheme to obtain the personal identifying information of school employees in Connecticut and elsewhere.
On May 9, 2018, LAWAL was arrested on a federal criminal complaint at his residence. He appeared before a U.S. magistrate judge in Atlanta and was ordered detained pending his transfer to the District of Connecticut.
As alleged in the charging documents, special agents from the FBI’s cybercrime squad in New Haven and the IRS have been investigating “phishing” emails that were sent to various school districts in Connecticut last year. In March 2017, an employee of the Groton Public Schools received an email that appeared to be sent by another Groton school system employee. The email contained a request to send W-2 tax information for all employees of the school system. The recipient of the email responded by sending copies of the W-2 information for approximately 1,300 Groton Public Schools employees. After the W-2 information was emailed, approximately 100 suspicious Forms 1040 were filed electronically with the IRS in the names of victims of the Groton phishing scheme. The 100 tax returns claimed tax refunds totaling $491,737. Approximately three of the returns were processed, and $23,543 in fraudulently-obtained funds were electronically deposited into various bank accounts.
It is alleged that LAWAL controlled or used certain email accounts involved in this phishing scheme, and that he participated in the scheme to obtain the Groton school system employees’ personal identifying information and use it for personal gain.
The indictment charges LAWAL with one count of conspiracy to commit wire fraud and one count of wire fraud, offenses that carry a maximum term of imprisonment of 20 years. The indictment also charges LAWAL with one count of aggravated identity theft, an offense that carries a mandatory consecutive term of imprisonment of at least two years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
It is alleged that LAWAL entered the U.S. on a visitor’s visa on November 24, 2016, and failed to depart on his scheduled departure date of December 1, 2016.
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 Sarala V. Nagala and Stephen B. Reynolds.
U.S. Attorney Durham thanked the FBI and IRS in Atlanta, and the U.S. Attorney’s Office for the Northern District of Georgia, for their valuable assistance in this matter.
Community Renewal Team Pays $362,000 to Settle False Claims Acts AllegationsRead the Press Release
United States Attorney John H. Durham and Connecticut Attorney General George Jepsen today announced that COMMUNITY RENEWAL TEAM and its president, LENA RODRIGUEZ, have entered into a civil settlement agreement with the United States and the State of Connecticut and have paid $362,000 to resolve allegations that they violated the federal and state False Claims Acts.
Community Renewal Team (“CRT”) is a Hartford-based community action agency that receives both federal and state grant funding. The majority of CRT’s funding has come from federal agencies including the U.S. Department of Health and Human Services (“HHS”), the U.S. Department of Housing and Urban Development (“HUD”) and the U.S. Department of Energy (“DOE”). Federal funds are awarded to CRT directly and indirectly through various state agencies and, in some cases, federal funding is combined with state funding and allocated to CRT. Rodriguez has been the president of CRT since January 2006.
The United States and State of Connecticut allege that, from June 2009 through November 2010, Rodriguez directed that certain CRT employees work on a state funded grant program, called “Home Solutions,” while charging their time to federal grants funded by HHS, HUD and DOE, as well as other state grants passed through the Connecticut Department of Social Services. In addition, between October 2009 and September 2010, CRT improperly charged the time of a budget analyst to a Head Start grant when the employee was working on other unrelated programs. Finally, between June 2010 and April 2013, a CRT program manager for the HHS-funded Eviction and Foreclosure Prevention Program misappropriated $18,500 for her personal use.
To resolve the governments’ allegations under the federal and state False Claims Acts, CRT and Rodriguez have paid $362,000.
“Recipients of federal grants must adhere to the regulations applicable to those grants and manage federal funds efficiently,” said U.S. Attorney Durham. “Failure to do so can result in significant consequences.”
“We take very seriously our responsibility to safeguard taxpayers by eliminating fraud in our public programs,” said Attorney General Jepsen, “and I appreciate the continued partnership with Connecticut’s U.S. Attorney to protect public funds.”
This investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General; U.S. Department of Housing and Urban Development, Office of Inspector General, and U.S. Department of Energy, Office of Inspector General.
The matter was handled within the U.S. Attorney’s Office by Assistant U.S. Attorney Ndidi N. Moses and Auditor Susan N. Spiegel. The Office of the Attorney General for the State of Connecticut was represented by Assistant Attorney General Christopher M. Haddad.
Windsor Locks Woman Pleads Guilty to Federal Drug Trafficking and Money Laundering OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that CHRISTINE MILES, 59, of Windsor Locks, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to drug trafficking and money laundering offenses related to the distribution of heroin and various prescription medications.
According to court documents and statements made in court, beginning in approximately 1998, MILES and others conspired to possess and distribute heroin, oxymorphone, hydrocodone and alprazolam. MILES is a retired nurse.
On August 4, 2016, members of the North Central Narcotics Task Force and the DEA conducted a court-authorized search of MILES’ residence at 350 North Street in Windsor Locks and seized a large quantity of various prescription medications, approximately two pounds of marijuana, $10,093 in cash and more than $13,000 in gift cards. MILES was arrested on state charges at that time.
The investigation revealed that, through this drug trafficking conspiracy, MILES and her husband amassed more than $700,000 in a number of individual and jointly held bank accounts. The investigation also revealed that, after her arrest on state drug charges in August 2016, MILES used $17,359 of drug proceeds to purchase 11 U.S. Postal Service money orders and a bank cashier’s check payable to a New Jersey-based moving company for a planned move from Connecticut to New Mexico.
MILES was arrested on federal charges on November 16, 2017, and she has been detained since her arrest. On February 2, 2018, another court-authorized search of her North Street residence revealed additional drug evidence and $41,904 in cash.
MILES pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, oxymorphone, hydrocodone and alprazolam, an offense that carries a maximum term of imprisonment of 20 years, and one count of engaging and attempting to engage in a monetary transaction affecting interstate commerce, involving criminally derived property of a value greater than $10,000, an offense that carries a maximum term of imprisonment of 10 years.
In pleading guilty, MILES agreed to forfeit her interest in her Windsor Locks residence and $767,056.74 seized from the residence and multiple bank accounts.
Judge Meyer scheduled sentencing for August 7, 2018.
This matter is being investigated by the Drug Enforcement Administration’s Tactical Diversion Squad and the U.S. Marshals Service with the valuable assistance of the North Central Narcotics Task Force and the Windsor Locks, Enfield, Vernon, East Windsor, Manchester and Suffield Police Departments. The case is being prosecuted by Assistant U.S. Attorneys David X. Sullivan and Patrick F. Caruso.
Waterbury Man Charged with Child Pornography OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned an indictment charging YEHUDI MANZANO, 33, of Waterbury, with production and transportation of child pornography.
As alleged in the indictment, on or about August 21, 2016, MANZANO sexually assaulted a 15-year-old female victim in Connecticut, video recorded the assault with his cell phone, and uploaded the video to his Google account.
The indictment was returned on May 3, 2018, and was unsealed yesterday when MANZANO surrendered to authorities. MANZANO appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport yesterday afternoon and entered a plea of not guilty to the charges. He was released on a $300,000 bond and electronic GPS monitoring.
On November 10, 2016, MANZANO was arrested on related state charges.
The charge of production of child pornography carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, and the charge of transportation of child pornography carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 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 and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Statement of U.S. Attorney John H. Durham in Recognition of National Police WeekRead the Press Release
In my 40-year career as a state and federal prosecutor, I have had the pleasure of working side by side with hundreds of federal, state and local law enforcement officers in the cause of justice. As a group, they are the finest people anyone could hope to know and work with. I have the greatest respect and admiration for these men and women, whose mission encompasses the most dangerous work undertaken in our communities.
A quote attributed to George Orwell reminds us of the debt we owe to members of law enforcement: “We sleep safe in our beds because rough men stand ready in the night to visit violence on those who would do us harm.”
In 1962, President Kennedy signed a proclamation designating today, May 15, as Peace Officers Memorial Day, and the week surrounding this date as National Police Week, to honor federal, state and municipal officers who made the ultimate sacrifice in the line of duty. So far this year, 53 brave men and women of law enforcement have lost their lives in service to the citizens of the United States. That figure includes Connecticut State Police Trooper First Class Kevin M. Miller, who was tragically killed in a vehicle crash on I-84 in Tolland on March 29.
Please take a moment today to remember them, and their families and loved ones who live with their loss.
I also encourage all to take some time this year to visit the Connecticut Law Enforcement Memorial, located at the Connecticut Police Academy in Meriden. The Memorial, which was dedicated in 1989, recognizes the sacrifice of 139 men and women of law enforcement who died in service to the people of Connecticut. This year, three more names will be added to the memorial, including Trooper Miller.
While most of us are fortunate to be able to live our lives freely without fear for our physical safety, too many of us take for granted that, in times of trouble, the police will be there to protect us from harm. For this, we owe a debt of gratitude to all officers, detectives, troopers and agents, who put themselves at risk every day for the safety of our communities, for our peace of mind, and for the security of our loved ones. It has been, and continues to be, my great honor to be able to work with all of them.
New Haven Man Pleads Guilty to Distributing Heroin and FentanylRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALEX BORRERO, also known as “Red,” 50, of New Haven, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of possession with intent to distribute, and distribution of, 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, on February 28, 2017, the Wallingford Police Department and emergency medical personnel responded to a report of an untimely death of a 25-year-old male at a residence in Wallingford. At the scene, officers seized drug and non-drug evidence, including the victim’s cellphone and six empty wax folds bags that contained a white powder residue.
The Connecticut Office of the Chief Medical Examiner determined that the victim’s death was caused by a combination of fentanyl and alprazolam (Xanax).
The investigation revealed that BORRERO, who had been selling heroin and fentanyl in the New Haven area, was the source of the fentanyl involved in the overdose death of the victim. The investigation also revealed that another of BORRERO’s drug customers, a 31-year-old male, died of an overdose in Branford on May 18, 2017.
BORRERO was arrested on a federal criminal complaint on October 23, 2017. At the time of his arrest, he possessed approximately 30 grams of heroin and approximately $1,900 in cash.
Judge Underhill scheduled sentencing for August 7, 2018, at which time BORRERO faces a maximum term of imprisonment of 30 years. BORRERO is released on a $50,000 bond pending sentencing.
BORRERO’s criminal history includes multiple convictions, including a federal conviction for conspiracy to possess with intent to distribute heroin. In 1998, he was sentenced in the U.S. District Court for the Middle District of Florida, in Orlando, to 188 months of imprisonment. He was released from federal prison in 2011.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and the Wallingford and Branford Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Michael S. McGarry.
Colorado Attorney Involved in Stock "Pump and Dump" Scheme Sentenced to 3 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIANE DALMY, 63, of Denver, Colorado, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for her role in a securities fraud scheme.
According to court documents and statements made in court, DALMY, an attorney, performed securities-related legal work on behalf of several public companies, including Mammoth Energy Group, Inc., a company that later became known as Strategic Asset Leasing Inc.; and Fox Petroleum, Inc. (the “Subject Companies”). Between approximately January 2009 and July 2016, DALMY conspired with others, including William Lieberman, of Boca Raton, Florida, and Christian Meissenn, of Suffield, Connecticut, to defraud investors through a stock “pump and dump” scheme. During the course of the conspiracy, DALMY acted largely at Lieberman’s direction.
As part of the scheme, Lieberman, Meissenn and others induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. The issuing companies, which were essentially shell companies with virtually no legitimate business activities, were controlled by Lieberman and others. After the hype led to artificially-inflated share prices for the company’s stock, Lieberman, Meissenn and others sold their own large positions in the stock at a profit. They then ended the promotion and allowed the share price to plummet, leaving investors holding worthless and unsalable stock. As a result, victim investors lost millions of dollars.
DALMY participated in the conspiracy by writing, and permitting Lieberman to write in her name, fraudulent opinion letters that were used to unrestrict the co-conspirators’ stock so that the stock could be freely traded on the open market (without having to register the stock with the Securities and Exchange Commission). The opinion letters were materially false in various respects, including as to whether the issuing company was a shell company, whether the shareholder was an affiliate of the issuer, whether the transactions described in the letters actually had occurred, and whether DALMY had performed the due diligence that she described in the letters. DALMY also ghost-wrote similarly fraudulent opinion letters for the Subject Companies in another Colorado attorney’s name and permitted Lieberman to do so. These included “adequacy” letters that were posted on a website maintained by an electronic securities marketplace. In general, an “adequacy” letter, which is intended to be relied upon by investors in making investment decisions, accompanies a public filing by an issuer and states that, after appropriate investigation, it is the authoring attorney’s opinion that adequate current information about the issuer is publicly available for investors to review.
At times, DALMY provided the co-conspirators with capital by advancing money from her Lawyer Trust Account (“IOLTA”). These funds belonged to other clients of DALMY’s law practice who did not know that their funds had been advanced to the co-conspirators by DALMY.
Finally, between February 2015 and July 2016, DALMY laundered a portion of the proceeds of the scheme on behalf of the co-conspirators. DALMY helped Lieberman to incorporate and open bank accounts for a private company, Queen Asia Pacific Ltd. (“Queen Asia”), which was controlled by Lieberman. These bank accounts were used to receive proceeds of the scheme from a brokerage account in Queen Asia’s name. DALMY periodically received money in Queen Asia’s bank accounts, transferred those funds to her IOLTA, and then transferred the funds again to Lieberman, Meissenn, and their network of stock promoters. In total, DALMY laundered approximately $825,000 on behalf of the co-conspirators through Queen Asia’s bank accounts and her IOLTA.
DALMY’s total gain from her participation in this conspiracy, and related legal work for the Subject Companies, was approximately $30,000.
Judge Meyer ordered DALMY to pay $2 million in restitution.
On February 6, 2018, DALMY pleaded guilty to one count of conspiracy.
Lieberman, Meissenn and four other individuals also pleaded guilty to various offenses stemming from this scheme.
On January 20, 2017, Corey Brinson, a Hartford-based attorney, was sentenced to 36 months of imprisonment and, on September 27, 2017, Damian Delgado, also known as “Michael Neumann,” of Orlando, Florida, was sentenced to 84 months of imprisonment. On May 7, 2018, Brian Ferraioli, of Sayville, N.Y., and Thomas Heaphy, Jr., of East Moriches, N.Y., were each sentenced to 72 months of imprisonment for their roles in this scheme and an unrelated investment fraud scheme. Meissenn and Lieberman await sentencing.
DALMY, who is released on a $100,000 bond, was ordered to report to prison on June 14, 2018.
This investigation is being conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments. This case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Citizens with information that may be helpful to this ongoing investigation, or who believe they may have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311.
Colorado Attorney Involved in Stock "Pump and Dump" Scheme Sentenced to 3 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIANE DALMY, 63, of Denver, Colorado, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for her role in a securities fraud scheme.
According to court documents and statements made in court, DALMY, an attorney, performed securities-related legal work on behalf of several public companies, including Mammoth Energy Group, Inc., a company that later became known as Strategic Asset Leasing Inc.; and Fox Petroleum, Inc. (the “Subject Companies”). Between approximately January 2009 and July 2016, DALMY conspired with others, including William Lieberman, of Boca Raton, Florida, and Christian Meissenn, of Suffield, Connecticut, to defraud investors through a stock “pump and dump” scheme. During the course of the conspiracy, DALMY acted largely at Lieberman’s direction.
As part of the scheme, Lieberman, Meissenn and others induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. The issuing companies, which were essentially shell companies with virtually no legitimate business activities, were controlled by Lieberman and others. After the hype led to artificially-inflated share prices for the company’s stock, Lieberman, Meissenn and others sold their own large positions in the stock at a profit. They then ended the promotion and allowed the share price to plummet, leaving investors holding worthless and unsalable stock. As a result, victim investors lost millions of dollars.
DALMY participated in the conspiracy by writing, and permitting Lieberman to write in her name, fraudulent opinion letters that were used to unrestrict the co-conspirators’ stock so that the stock could be freely traded on the open market (without having to register the stock with the Securities and Exchange Commission). The opinion letters were materially false in various respects, including as to whether the issuing company was a shell company, whether the shareholder was an affiliate of the issuer, whether the transactions described in the letters actually had occurred, and whether DALMY had performed the due diligence that she described in the letters. DALMY also ghost-wrote similarly fraudulent opinion letters for the Subject Companies in another Colorado attorney’s name and permitted Lieberman to do so. These included “adequacy” letters that were posted on a website maintained by an electronic securities marketplace. In general, an “adequacy” letter, which is intended to be relied upon by investors in making investment decisions, accompanies a public filing by an issuer and states that, after appropriate investigation, it is the authoring attorney’s opinion that adequate current information about the issuer is publicly available for investors to review.
At times, DALMY provided the co-conspirators with capital by advancing money from her Lawyer Trust Account (“IOLTA”). These funds belonged to other clients of DALMY’s law practice who did not know that their funds had been advanced to the co-conspirators by DALMY.
Finally, between February 2015 and July 2016, DALMY laundered a portion of the proceeds of the scheme on behalf of the co-conspirators. DALMY helped Lieberman to incorporate and open bank accounts for a private company, Queen Asia Pacific Ltd. (“Queen Asia”), which was controlled by Lieberman. These bank accounts were used to receive proceeds of the scheme from a brokerage account in Queen Asia’s name. DALMY periodically received money in Queen Asia’s bank accounts, transferred those funds to her IOLTA, and then transferred the funds again to Lieberman, Meissenn, and their network of stock promoters. In total, DALMY laundered approximately $825,000 on behalf of the co-conspirators through Queen Asia’s bank accounts and her IOLTA.
DALMY’s total gain from her participation in this conspiracy, and related legal work for the Subject Companies, was approximately $30,000.
Judge Meyer ordered DALMY to pay $2 million in restitution.
On February 6, 2018, DALMY pleaded guilty to one count of conspiracy.
Lieberman, Meissenn and four other individuals also pleaded guilty to various offenses stemming from this scheme.
On April 13, 2017, Corey Brinson, a Hartford-based attorney, was sentenced to 36 months of imprisonment and, on September 27, 2017, Damian Delgado, also known as “Michael Neumann,” of Orlando, Florida, was sentenced to 84 months of imprisonment. On May 7, 2018, Brian Ferraioli, of Sayville, N.Y., and Thomas Heaphy, Jr., of East Moriches, N.Y., were each sentenced to 72 months of imprisonment for their roles in this scheme and an unrelated investment fraud scheme. Meissenn and Lieberman await sentencing.
DALMY, who is released on a $100,000 bond, was ordered to report to prison on June 14, 2018.
This investigation is being conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments. This case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Citizens with information that may be helpful to this ongoing investigation, or who believe they may have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311.
Ellington Psychiatrist and Mental Health Clinic Pay over $800,000 to Settle False Claims Act AllegationsRead the Press Release
United States Attorney John H. Durham and Connecticut Attorney General George Jepsen today announced that DR. ERUM SHAHAB and WAIRE, LLC, doing business as ELLINGTON BEHAVIORAL HEALTH (“EBH”), have entered into a civil settlement agreement with the federal and state governments in which they will pay $805,071 to resolve allegations that they violated the federal and state False Claims Acts.
SHAHAB, a psychiatrist, is the owner of EBH, a psychiatric medical practice located in Ellington, Connecticut. As part of SHAHAB and EBH’s treatment of patients with substance use disorders, SHAHAB and EBH regularly conducted urine drug screening tests on urine samples collected from patients treated at the practice. Urine drug screening tests use a single sample of a patient’s urine to test for multiple classes of drugs. Although the test screens a patient’s urine for multiple classes of drugs, Medicare considers it a single test that should be billed only once per patient encounter.
The government alleges that SHAHAB and EBH submitted claims to Medicare for multiple units of urine drug screening tests when they knew or should have known that only one unit of service could be billed per patient encounter. By coding their claims using multiple units instead of a single unit, SHAHAB and EBH received hundreds of thousands of dollars from the Medicare program that they were not entitled to receive.
In addition, the government alleges that SHAHAB and EBH submitted claims to the Medicaid program for urine drug screening tests when the urine samples were either never actually tested at all or were tested weeks or months after the samples were collected from the Medicaid beneficiaries.
To resolve the governments’ allegations under the federal and state False Claims Acts, SHAHAB and EBH have agreed to pay $805,071, which covers claims submitted to the Medicare program from January 1, 2011 to September 30, 2013, and claims submitted to the Medicaid program from January 1, 2014 to June 30, 2014.
A complaint against SHAHAB and EBH was filed in the U.S. District Court in Connecticut under the qui tam, or whistleblower, provisions of the both the federal and state False Claims Acts. The relator (whistleblower), Dr. David Simon, a former employee at EBH, will receive a share of the proceeds of the settlement in the amount of $99,113.
The whistleblower provisions of both the federal and state False Claims Acts provide that the whistleblower is entitled to receive a percentage of the proceeds of any judgment or settlement recovered by the government.
“Physicians and their medical practices must carefully code their claims, honestly bill for services, and ensure that taxpayers’ health care dollars are properly spent,” said U.S. Attorney Durham. “The U.S. Attorney’s Office and our federal and state investigative partners will hold to account all health care providers who submit false claims to federal health care programs.”
This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; the U.S. Postal Service, Office of Inspector General, and the Defense Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot, and by Assistant Attorney General Gregory O’Connell of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Illegal Alien Pleads Guilty to Trafficking Fentanyl Laced Heroin, Illegal ReentryRead the Press Release
PROVIDENCE, RI – A Dominican national who had previously been convicted in federal court in Boston in 1998 for trafficking cocaine, sentenced to 72 months in federal prison and ordered deported, pleaded guilty in U.S. District Court in Providence today to reentering the county illegally and conspiring to possess and distribute nearly 300 grams of fentanyl laced heroin.
Juan Manuel Bautista Arias’ drug trafficking activity in Hartford, Conn., was identified by the Rhode Island FBI Safe Streets Task Force during an investigation into a drug trafficking organization that regularly imported kilograms of heroin and cocaine from Mexico via the Southwest border of the United States directly into Rhode Island and Massachusetts.
The investigation, dubbed “Operation Triple Play,” in reference to three brothers who entered the country illegally and allegedly ran the drug trafficking operation, was dismantled by law enforcement in April 2017. The investigation resulted in the arrest of 16 individuals, at least 9 of which have been determined to have been in the United States illegally. Numerous kilograms of heroin, fentanyl and cocaine, substantial amounts of cash, and at least 9 vehicles were seized.
Appearing in U.S. District Court in Providence, R.I., Bautista admitted that shortly after he was released from a prison in Bani, Dominican Republic, on an unrelated criminal matter, he was illegally brought to the United States by the Rhode Island and Massachusetts based drug trafficking organization. The organization provided him with an apartment in Hartford, Conn., from which he ran a heroin and cocaine drug distribution operation, at their direction.
In April 2017, law enforcement a executed a court authorized search warrant at Bautista’s residence and seized nearly 287 grams of heroin laced with fentanyl, and $3,200 in cash. Bautista was found to be in possession of a fraudulent Puerto Rican birth certificate. Bautista’s fingerprints had been surgically altered.
Bautista, who pleaded guilty to conspiracy to possess and distribute 100 grams or more of heroin and illegal reentry, is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr. on July 26, 2018.
Bautista’s guilty plea is announced by United States Attorney Stephen G. Dambruch and Special Agent in Charge of the FBI Boston Field Division Harold H. Shaw.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
United States Attorney Stephen G. Dambruch acknowledges and thanks the United States Attorney’s Office for the District of Connecticut for their assistance in the government’s case against Juan Manuel Bautista Arias.
Operation Triple Play is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation initiated by the FBI Safe Streets Task Force. Under the direction of the FBI, the participating agencies in this investigation include the Drug Enforcement Administration (Providence and Boston Resident Agencies); Immigration and Customs Enforcement; Rhode Island State Police; Providence Police Department; Woonsocket Police Department; Central Falls Police Department; Cranston Police Department; Warwick Police Department and; the Rhode Island Department of Corrections.
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Norwalk Man Sentenced to 41 Months in Federal Prison for Trafficking Cocaine and Illegally Possessing GunsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEPHEN MAZZO, 34, of Norwalk, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 41 months of imprisonment, followed by three years of supervised release, for trafficking cocaine and illegally possessing firearms. Judge Bryant also ordered MAZZO to pay a $5,000 fine.
According to court documents and statements made in court, the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force received information that MAZZO was trafficking cocaine in the Stamford area. On May 31, 2017, investigators conducting surveillance on MAZZO observed him exit a Norwalk hotel carrying a plastic shopping bag that he had not been carrying when he had entered the hotel. Law enforcement stopped MAZZO’s vehicle a short time later on Route 15 south in Stamford. A search of the vehicle and the plastic shopping bag revealed more than 400 grams of cocaine. MAZZO was arrested on state charges at that time.
Investigators returned to the hotel and determined that MAZZO had met with Dominick Pacifico, who had been residing at the hotel for several weeks. A search of Pacifico’s hotel room revealed items used to package drugs for distribution, and a search of Pacifico’s vehicle revealed approximately 959 grams of cocaine separated in multiple packages for distribution, and $34,525 in cash.
A search of MAZZO’s residence revealed a semi-automatic pistol, a multi-caliber rifle, a 12-gauge shotgun, and shotgun shells. As a result of his previous state convictions for felony drug offenses, MAZZO is prohibited from possessing firearms and ammunition.
On February 15, 2018, MAZZO pleaded guilty to one count of possession with intent to distribute cocaine, and one count of possession of firearms and ammunition by a convicted felon.
MAZZO, who is released on a $200,000 bond, was ordered to report to prison on June 21.
On December 7, 2017, Pacifico pleaded guilty to one count of possession with intent to distribute, and distribution of, 500 grams or more of cocaine. On March 9, 2018, he was sentenced to 60 months of imprisonment.
The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members of the DEA, Connecticut State Police and the Norwalk, Stamford, Stratford and Milford Police Departments.
This case was prosecuted Assistant U.S. Attorney Joseph Vizcarrondo.
Indictment Charges Hartford Man with Gun and Drug OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a grand jury in Hartford has returned a four-count superseding indictment charging RAHEEN THOMPSON, 38, of Hartford, with firearm and drug offenses.
The superseding indictment was returned on April 18, 2018. THOMPSON appeared yesterday before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and pleaded not guilty to the charges.
As alleged in the indictment and court documents, in the early morning of August 7, 2016, Hartford Police officers arrested THOMPSON after they encountered him in a parked car outside of a nightclub in possession of a loaded .380 caliber pistol and distribution quantities of marijuana and pentylone.
The indictment alleges that THOMPSON has been previously convicted in federal court of conspiracy to distribute and to possess with intent to distribute cocaine base (“crack”), and in state court of multiple felony 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.
The indictment charges THOMPSON with one count of possession with intent to distribute pentylone, an offense that carries a maximum term of imprisonment of 20 years; one count of possession with intent to distribute marijuana, an offense that carries a maximum term of imprisonment of five years; 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 a firearm in furtherance of a drug trafficking crime, an offense that carries mandatory consecutive sentence of at least five years of imprisonment.
THOMPSON has been detained since his arrest.
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 investigation is being conducted by the Federal Bureau of Investigation’s Violent Crime Task Force and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Bridgeport Man Sentenced to 4 Years in Prison for Distributing Heroin and Fentanyl to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PERRY DeSHAZO, also known as “Hov” and “Amafia Hov,” 27, of Bridgeport, was sentenced today by U.S. District Judge Jeffery A. Meyer in New Haven to 48 months of imprisonment, followed by three years of supervised release, for distributing heroin and fentanyl to an overdose victim in 2016.
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, on December 2, 2016, at approximately 1:35 a.m., Bridgeport Police responded to St. Vincent’s Medical Center after a report of a suspicious death. Hospital staff told officers that a 40-year old female had been dropped off at the hospital and was dead upon arrival.
The Office of the Chief Medical Examiner subsequently determined that the victim’s death was caused by “acute intoxication due to the combined effects of fentanyl, heroin and alcohol.”
The investigation, which included witness interviews and analysis of cell phone records and social media sites, revealed that DeSHAZO supplied the narcotics consumed by the victim shortly before her death.
DeSHAZO has been detained since his arrest on July 17, 2017. On January 2, 2018, he pleaded guilty to one count of distribution of heroin and fentanyl.
DeSHAZO’s criminal history includes multiple convictions, and he was on state probation at the time of this offense.
This matter was investigated by the DEA New Haven Task Force and the Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis and Peter Markle.
Windsor Woman Who Defrauded Medicaid Program is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, and Chief State’s Attorney Kevin T. Kane today announced that BEVERLY COKER, 70, of Windsor, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to five years of probation for defrauding Connecticut’s Medicaid program.
According to court documents and statements made in court, COKER owned and operated New Beginnings Family Center, a behavioral health practice with an office located in Hartford. In May 2010, Ronnette Brown, of Bristol, and another individual approached COKER and proposed a collaboration with COKER’s practice. Under the proposal, Brown and the other individual would provide services to children and families through We-MPACT, a social services practice they operated in Bristol. COKER was to provide supervision to Brown and the other individual, for which COKER would be paid 30 percent of the proceeds. COKER knew that Brown and Sharpe were not licensed to provide psychotherapy, but understood that they were working toward becoming licensed.
Although COKER never provided supervision to Brown and the other individual, she submitted claims to Medicaid for psychotherapy services provided to We-MPACT’s clients using her provider number. Pursuant to their agreement, COKER paid Brown and others at We-MPACT approximately 70 percent of the amount of money she received from Medicaid. Beginning in January 2011, Brown and the other individual began billing Medicaid directly using COKER’s provider number. COKER ended her relationship with We-MPACT in November 2011.
Through this scheme, COKER and Brown defrauded Medicaid of approximately $214,555.
On April 8, 2016, COKER pleaded guilty to one count of health care fraud.
On May 26, 2017, a jury found Brown guilty of 23 counts of health care fraud and one count of conspiracy to commit health care fraud, stemming from this scheme and related fraudulent billing of Medicaid for psychotherapy services that were not performed. On April 19, 2018, Judge Bolden sentenced Brown to 48 months of imprisonment and ordered her to pay restitution in the amount of $2,033,962.
Three other individuals have been charged and convicted of health care fraud offenses stemming from this investigation.
This matter has been jointly investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office, with assistance from the Connecticut Attorney General’s Office. U.S. Attorney Durham also thanked the Connecticut Department of Social Services for their role in identifying the fraudulent scheme and supporting the investigation and prosecution of the case.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
This matter is being prosecuted by Assistant U.S. Attorneys David J. Sheldon and Christopher W. Schmeisser.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Stratford Man Pleads Guilty to Federal Gun Charge Stemming from Domestic Violence IncidentRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that MATTHEW PETROVITCH, 38, of Stratford, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, on September 26, 2017, Stratford Police responded to PETROVITCH’s residence after a female victim reported that PETROVITCH had physically assaulted her and threatened her with a firearm while she was holding a young child. After PETROVITCH was taken into custody, officers searched the residence and seized an AK-74 semiautomatic rifle, a short-barreled shotgun, and more than 350 rounds of assorted ammunition.
The short-barreled shotgun was not registered to him in the National Firearms Registration and Transfer Record, as required.
In March 2000, PETROVITCH was convicted in state court of conspiracy to commit assault in the first degree, and robbery in the third 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.
When he is sentenced, PETROVITCH faces a maximum term of imprisonment of 10 years. PETROVITCH is detained pending sentencing.
On April 24, 2018, PETROVITCH pleaded guilty in Bridgeport Superior Court to state charges related to this incident.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Stratford Police Department. The case is being prosecuted by Assistant U.S. Attorney Alina P. Reynolds, in coordination with the State’s Attorney for the Fairfield Judicial District.
Wallingford Man Charged with Bankruptcy Fraud and Identity Theft OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JOEL C. RILEY, 46, of Wallingford, was arrested yesterday on a criminal complaint charging him with bankruptcy fraud, identity theft, and conspiracy to commit bankruptcy fraud and identity theft.
As alleged in the complaint, on December 15, 2016, RILEY visited an attorney claiming that he had power of attorney for another individual (the “victim”) who was ill, and that he wanted to file a bankruptcy petition on the victim’s behalf. The attorney told RILEY that the attorney needed to meet with the victim in person to confirm her identity. After several delays, on June 6, 2017, RILEY and a woman claiming to be the victim met with the attorney at his office. The woman presented a Connecticut driver’s license in the name of the victim as identification. That same day, the parties 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.
The complaint further alleges that, 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.
It is further alleged that 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.
After his arrest, RILEY appeared before U.S. Magistrate Judge Robert M. Spector in New Haven and was released on a $100,000 bond and electronic monitoring.
Bankruptcy fraud, identity theft, and conspiracy each carries a maximum term of imprisonment of five years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
New Haven Man Sentenced to 57 Months in Federal Prison for Illegally Possessing Loaded HandgunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TREYVON BATTLE, also known as “Joker,” 27, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 57 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 July 31, 2017, BATTLE fled from a rental truck as a New Haven Police officer was conducting a traffic stop of the vehicle on Ella T. Grasso Boulevard. Pursuing officers located BATTLE and observed him carrying and then discarding a firearm on Truman Street. Officers apprehended BATTLE shortly thereafter, and then collected the firearm, which was a semiautomatic 9mm handgun loaded with 18 rounds of ammunition. The gun also had an obliterated serial number.
On August 26, 2010, BATTLE was convicted in state court for the felony offense of “No Pistol Permit” and “Assault Personnel,” on which he received a sentence of 10 years of incarceration, with five years to serve, followed by five years of probation.
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.
BATTLE has been detained since his arrest. On February 7, 2018, he pleaded guilty to one count of possession of a firearm and ammunition by a previously convicted felon.
The matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorneys Rahul Kale and Jocelyn Courtney Kaoutzanis.
Groton Man Pleads Guilty to Selling Narcotics to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ULPIANO LUGO, 37, of Groton, waived his right to be indicted and pleaded guilty today before Senior U.S. District Judge Alfred V. Covello in Hartford to one count of distribution of heroin and/or cocaine.
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, on April 22, 2017, at approximately 7:37 p.m., Groton City Police and emergency medical personnel responded to a residence in Groton and found an unresponsive 37-year-old male in the bedroom of the residence. The victim was pronounced deceased at the scene. Officers collected from the bedroom one used syringe that was one-third full of an unknown liquid, a bent metal spoon with an off-white residue on the surface, one plastic bag with powder residue, and the victim’s cellphone.
Subsequent analysis of the powder residue revealed the presence of heroin and cocaine, and text messages from the victim’s cellphone confirmed that the victim had ordered narcotics from LUGO in the days before the victim’s death.
Judge Covello scheduled sentencing for August 1, 2018, at which time LUGO faces a maximum term of imprisonment of 20 years. LUGO is detained pending sentencing.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and the Groton City Police Department. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Two Long Island Men Sentenced to 6 Years in Prison for Participating in Two Investment Fraud SchemesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that two Long Island residents were sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven for their roles in two separate investment fraud schemes. THOMAS HEAPHY, Jr., 43, of East Moriches, N.Y, and BRIAN FERRAIOLI, 41, of Sayville, N.Y., were each sentenced to 72 months of imprisonment, followed by three years of supervised release.
According to court documents and statements made in court, for several years, Heaphy, Ferraioli and others defrauded investors through a stock “pump and dump” scheme. As part of the scheme, Heaphy, Ferraioli and their co-conspirators induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. The issuing companies were essentially shell companies with virtually no legitimate business activities. Heaphy and Ferraioli’s numerous misrepresentations induced investors to purchase securities, thus causing the share price of the securities to become artificially inflated. Certain co-conspirators then sold their own preexisting positions in the securities at a profit. They then allowed he price of the securities to fall, leaving investors with worthless and unsalable stock. As a result, victim investors lost millions of dollars.
Heaphy and Ferraioli received approximately 25 percent of all money that they induced individuals to invest, and gained approximately $719,000 and $1.25 million, respectively, from the scheme. They disguised the income by having the funds flow through the trust accounts of various attorneys, including Corey Brinson in Connecticut, into bank accounts in the name of various shell entities under their control, and failed to pay federal income taxes on most of the income.
In the summer of 2016, after Heaphy and Ferraioli learned that they were under federal investigation for their roles in the stock pump and dump scheme, they became involved in the promotion and sale of securities of Waters Club Worldwide, Inc. and Waters Club Holdings, Inc. (collectively, “Waters Club”), which provided yacht charter services to customers. From approximately August 2016 to February 2017, Heaphy and Ferraioli solicited prospective investors to purchase shares of Waters Club stock purportedly in advance of an initial public offering (“IPO”).
Heaphy and Ferraioli represented that Waters Club intended to form a membershipbased “time share” club with a fleet of yachts that members jointly owned and could use for yachting vacations. They stated that investors’ money would be used to develop the business and fund the operations of Waters Club, and that Heaphy and Ferraioli were being compensated with stock for recruiting investors. In truth, Heaphy and Ferraioli received approximately half of all the money they induced investors in Waters Club to invest. Due in part to the payments to Heaphy and Ferraioli, Waters Club lacked the capital to develop its membership-based club, Waters Club did not pursue an IPO, and the shares purchased by investors were unsalable.
Heaphy and Ferraioli recruited at least 12 investors to pay a total of at least $1,289,500 for shares of Waters Club stock. One of the victims of the Waters Club scheme was a Connecticut resident who paid $475,000 to Waters Club. Heaphy’s total gain from the scheme was $307,658 and Ferraioli’s total gain was $297,546.
At least six Waters Club victim-investors have also been identified as victims of the earlier stock pump and dump scheme.
Heaphy and Ferraioli each pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of tax evasion related to the stock pump and dump scheme, and one count of conspiracy to commit mail and wire fraud related to the Waters Club investment scheme.
Judge Meyer ordered Heaphy to pay total restitution of $6,738,539, and Ferraioli to pay total restitution of $6,896,927. The restitution orders include restitution owed to victims of the schemes, and to the Internal Revenue Service.
Judge Meyer ordered Heaphy and Ferraioli, who are released on bonds, to report to prison on July 9.
On January 20, 2017, Brinson, of Hartford, pleaded guilty to one count of engaging in a monetary transaction in property derived from specified unlawful activity. On April 13, 2017, he was sentenced to 36 months of imprisonment.
This investigation has been conducted by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments. This case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Two Long Island Men Sentenced to 6 Years in Prison for Participating in Investment Fraud SchemesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that two Long Island residents were sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven for their roles in two separate investment fraud schemes. THOMAS HEAPHY, Jr., 43, of East Moriches, N.Y, and BRIAN FERRAIOLI, 41, of Sayville, N.Y., were each sentenced to 72 months of imprisonment, followed by three years of supervised release.
According to court documents and statements made in court, for several years, Heaphy, Ferraioli and others defrauded investors through a stock “pump and dump” scheme. As part of the scheme, Heaphy, Ferraioli and their co-conspirators induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. The issuing companies were essentially shell companies with virtually no legitimate business activities. Heaphy and Ferraioli’s numerous misrepresentations induced investors to purchase securities, thus causing the share price of the securities to become artificially inflated. Certain co-conspirators then sold their own preexisting positions in the securities at a profit. They then allowed he price of the securities to fall, leaving investors with worthless and unsalable stock. As a result, victim investors lost millions of dollars.
Heaphy and Ferraioli received approximately 25 percent of all money that they induced individuals to invest, and gained approximately $719,000 and $1.25 million, respectively, from the scheme. They disguised the income by having the funds flow through the trust accounts of various attorneys, including Corey Brinson in Connecticut, into bank accounts in the name of various shell entities under their control, and failed to pay federal income taxes on most of the income.
In the summer of 2016, after Heaphy and Ferraioli learned that they were under federal investigation for their roles in the stock pump and dump scheme, they became involved in the promotion and sale of securities of Waters Club Worldwide, Inc. and Waters Club Holdings, Inc. (collectively, “Waters Club”), which provided yacht charter services to customers. From approximately August 2016 to February 2017, Heaphy and Ferraioli solicited prospective investors to purchase shares of Waters Club stock purportedly in advance of an initial public offering (“IPO”).
Heaphy and Ferraioli represented that Waters Club intended to form a membership-based “time share” club with a fleet of yachts that members jointly owned and could use for yachting vacations. They stated that investors’ money would be used to develop the business and fund the operations of Waters Club, and that Heaphy and Ferraioli were being compensated with stock for recruiting investors. In truth, Heaphy and Ferraioli received approximately half of all the money they induced investors in Waters Club to invest. Due in part to the payments to Heaphy and Ferraioli, Waters Club lacked the capital to develop its membership-based club, Waters Club did not pursue an IPO, and the shares purchased by investors were unsalable.
Heaphy and Ferraioli recruited at least 12 investors to pay a total of at least $1,289,500 for shares of Waters Club stock. One of the victims of the Waters Club scheme was a Connecticut resident who paid $475,000 to Waters Club. Heaphy’s total gain from the scheme was $307,658 and Ferraioli’s total gain was $297,546.
At least six Waters Club victim-investors have also been identified as victims of the earlier stock pump and dump scheme.
Heaphy and Ferraioli each pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of tax evasion related to the stock pump and dump scheme, and one count of conspiracy to commit mail and wire fraud related to the Waters Club investment scheme.
Judge Meyer ordered Heaphy to pay total restitution of $6,738,539, and Ferraioli to pay total restitution of $6,896,927. The restitution orders include restitution owed to victims of the schemes, and to the Internal Revenue Service.
Judge Meyer ordered Heaphy and Ferraioli, who are released on bonds, to report to prison on July 9.
On January 20, 2017, Brinson, of Hartford, pleaded guilty to one count of engaging in a monetary transaction in property derived from specified unlawful activity. On April 13, 2017, he was sentenced to 36 months of imprisonment.
This investigation has been conducted by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments. This case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Stamford Resident Charged with Trafficking Synthetic OpioidRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that GILBERTO VALENTIN, also known as “Miguel Perez-Sanchez,” 28, of Stamford, has been charged by federal criminal complaint with possession with intent to distribute U-47700, a synthetic opioid.
VALENTIN, who was arrested on May 4, appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was ordered detained.
As alleged in court documents, law enforcement identified VALENTIN as a suspected drug supplier of a heroin distributor residing in Albany, New York. On May 4, 2018, the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Stamford Police Department conducted a search of VALENTIN’s residence at 69 Turn of River Road and seized a shoebox containing approximately 1,950 glassine folds of suspected narcotics packaged for resale. Preliminary testing of the seized substance indicated the presence of a synthetic opioid known as U-47700, commonly referred to by the street name “pinks.” The shoebox also contained approximately 51 grams of a compressed powder, consistent with heroin/ fentanyl and their derivatives, which has not yet been tested for safety reasons.
The charged offense carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Stamford Police Department, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
North Branford Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL BAUER, 36, of North Branford, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of possession of child pornography.
According to court documents and statements made in court, on December 10, 2015, the Federal Bureau of Investigation conducted a court-authorized search of BAUER’s North Branford residence and seized approximately 19 electronic devices, including external hard drives. A forensic examination of the seized devices revealed more than 600 images and videos of child pornography, including images and videos depicting children younger than 12 engaged in sexually explicit conduct. Some of the images and videos depict sadistic and masochistic conduct.
BAUER is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on August 1, 2018, at which time he faces a maximum term of imprisonment of 20 years.
BAUER is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
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.
Mexican National Sentenced to 5 Years in Federal Prison for Cocaine Trafficking and Immigration OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LUIS PALACIOS ORTIZ, 44, a citizen of Mexico, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 60 months of imprisonment, followed by 10 years of supervised release, for cocaine trafficking and immigration offenses.
According to court documents and statements made in court, on February 13, 2017, the Connecticut State Police stopped a car that PALACIOS ORTIZ was driving on I-84 East near Waterbury. A subsequent search of the vehicle revealed approximately 4.5 kilograms of cocaine.
PALACIOS ORTIZ has been convicted of at least six federal immigration offenses since 1999, and he was previously deported from the U.S. multiple times, the last time occurring in September 2015.
PALACIOS ORTIZ has been detained since his arrest on February 13, 2017. On February 15, 2018, he pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine, and one count of reentry of a removed alien. He will be deported after he serves his 60-month prison term.
This matter was investigated by the Drug Enforcement Administration and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
41-Count Indictment Charges 10 Alleged Latin Kings Members and Associates with Drug and Gun OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, and Hartford Police Chief David Rosado today announced the unsealing of a 41-count indictment charging 10 alleged members and associates of the Almighty Latin Kings Nation with narcotics offenses related to the distribution of heroin, fentanyl and crack cocaine in Hartford. The indictment also charges four of the defendants with firearm offenses stemming from a shooting incident last year in Hartford’s South End.
The indictment, which was returned by a grand jury in Hartford on May 1 and unsealed today, stems from a joint law enforcement investigation headed by the Federal Bureau of Investigation’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.
Charged in the indictment are:
WILSON VELEZ, a.k.a. “Wiso,” 33, of Newington
MIGUEL CLAUDIO, a.k.a. “Mega,” 35, of Hartford
JOSHUA AMARAL, a.k.a. “Ill Child,” 33, of Hartford
ANGEL CABRERA, 23, of Hartford
SAMMY DIAZ, a.k.a. “Shorty,” 30, of Meriden
CRUZ FERNANDEZ, a.k.a. “Blood,” 27, of Hartford
JOSE RODRIGUEZ, a.k.a. “Juice,” 47, of Hartford
FRANKIE VEGA, a.k.a. “Lips,” 33, of Hartford
MIGUEL MARTINEZ, a.k.a. “Nitro,” 33, of Hartford
MARIO MERCADO, a.k.a. “Taz,” 33, of HartfordClaudio, Diaz, Fernandez, Rodriguez, Vega, and Mercado were arrested today. They appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford and are detained.
Velez was arrested on related narcotics offenses on December 7, 2017, and was subsequently released on bond. He was arrested again on April 5, 2018, and his bond was revoked after the court determined there was probable cause that Velez committed additional offenses while he was released. Amaral and Cabrera are incarcerated in state custody. Martinez is still being sought.
The indictment alleges that between April 2017 and April 2018, Velez, Claudio, Amaral, Cabrera, Diaz, Fernandez, Rodriguez and Vega conspired to distribute and to possess with intent to distribute heroin, fentanyl, cocaine and cocaine base (“crack cocaine”). If convicted of conspiracy, based on the type and quantity of narcotics charged, Velez faces a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; Claudio and Rodriguez face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and Amaral, Cabrera, Diaz, Fernandez and Vega face a maximum term of imprisonment of 20 years.
In addition to the conspiracy count, Velez, Claudio, Amaral, Cabrera, Fernandez, Vega, Martinez and Mercado are each charged with one or more counts of possession and/or distribution of various controlled substances. Velez also is charged with one count of employing a minor to distribute heroin and fentanyl, and Diaz and Vega are charged in one or more counts with using a telephone to facilitate the distribution of heroin and/or fentanyl.
The indictment also charges Velez, Claudio, Amaral and Cabrera with firearms offenses stemming from a shooting incident that occurred on April 28, 2017, in the area of Franklin Avenue and Barker Street in Hartford. If convicted of using and carrying a firearm in relation to, and furtherance of, a drug trafficking crime, these defendants face a mandatory consecutive 10-year term of imprisonment. In addition, Martinez is charged with being a convicted felon in possession of a firearm on June 8, 2017, an offense that carries 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 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’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
West Haven Man Sentenced to 27 Months in Prison for Distributing Fentanyl to Bridgeport Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN RODRIGUEZ, 37, of West Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 27 months of imprisonment, followed by four years of supervised release, for distributing fentanyl to a Bridgeport man who overdosed on the drug in 2015.
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, shortly after midnight on November 7, 2015, Bridgeport Police and emergency medical personnel responded to a residence in Bridgeport after a 29-year-old male had been found unresponsive by his roommate. The victim was transported by ambulance to the hospital where, after several attempts to revive him, he was pronounced dead.
The investigation, which included witness interviews and analysis of text message communication, revealed that RODRIGUEZ supplied what he believed to be heroin to the victim the day before the victim died.
A post-mortem toxicology report found fentanyl, marijuana and several anti-depressant drugs in the victim’s system, and the Office of the Chief Medical Examiner for the State of Connecticut concluded that the victim died from acute fentanyl intoxication.
RODRIGUEZ was arrested on a federal criminal complaint on September 22, 2016. On December 12, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the West Haven and Bridgeport Police Departments. The case was prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Jocelyn Courtney Kaoutzanis.
Oxford Restaurant to Make Changes to Comply with Americans with Disabilities ActRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with Fritz’s Snack Bar in Oxford to resolve allegations that the restaurant was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by an individual with disabilities alleging that Fritz’s Snack Bar was not accessible for individuals with physical disabilities. The restaurant is in the process of making the changes required by the settlement agreement, including adding accessible parking, ensuring that there is an accessible entry route to the restaurant, increasing the number of accessible dining seats within the restaurant and in the patio area, ensuring that the patio area has an accessible entrance, and ensuring that the surface of the patio has a stable, firm and slip resistant surface so that it is accessible for individuals with mobility disabilities. Fritz’s Snack Bar will continue to make improvements over the next nine months.
Under federal law, private entities that own or operate places of “public accommodation,” including restaurants, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
U.S. Attorney Durham noted that the owners of Fritz’s Snack Bar have worked cooperatively and collaboratively with the U.S. Attorney’s Office to address the ADA issues without litigation.
“The Americans with Disabilities Act ensures that individuals are able to access and enjoy the state’s restaurants and other places of public accommodation,” stated U.S. Attorney Durham. “Our Office is committed to enforcing the ADA, which requires businesses to appropriately serve the diverse populations of patrons who live, work, and visit Connecticut. We appreciate the cooperation of the owners of Fritz’s Snack Bar and their commitment to increase the accessibility of their restaurant.”
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Registered Investment Advisor Charged with Stealing More Than $1 Million in Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Shelly A. Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, today announced that a federal grand jury in New Haven returned a 12-count indictment yesterday charging LEON C. VACCARELLI, 41, of Waterbury, with fraud and money laundering offenses stemming from an investment scheme that defrauded individuals of more than $1 million.
VACCARELLI appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven, entered a plea of not guilty to the charges, and was released on a $100,000 bond.
As alleged in the indictment, VACCARELLI, was a registered representative of The Investment Center, a brokerage company, and was an investment adviser associated with IC Advisory Services, Inc. He also was the owner and only member of LWLVACC, LLC, and conducted business through an entity named Lux Financial Services. Using these various entities, VACCARELLI operated a financial advisory and brokerage service through which he offered investment advice and sold investments and securities to individuals and families in the Waterbury area.
Between approximately 2011 and 2017, it is alleged that VACCARELLI defrauded victim investors of more than $1 million by falsely representing that he would invest his clients’ money in IRA rollover accounts, money market accounts, certificates of deposit (“CDs”), or other types of interest-earning investments. However, instead of investing customers’ funds as he had represented, VACCARELLI deposited customer funds into his own personal account and business bank accounts, commingled those funds with his own money, and used the funds to pay both business and personal expenses, including tuition and mortgage payments. In some instances, he also used customer funds to make bogus “interest payments” to other victim-investors.
The indictment charges VACCARELLI with three counts of mail fraud, and six counts of wire fraud, offenses that carry a maximum term of imprisonment of 20 years on each count. The indictment also charges VACCARELLI with three counts of money laundering, an offense that carries a maximum term of imprisonment of 10 years on each count.
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 and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
In a parallel action, the Securities and Exchange Commission brought related civil charges against VACCARELLI.
New Haven Man Sentenced to More Than 10 Years for Illegal Gun Possession, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEVEN SINGH, also known as “Smurf,” 39, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 122 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, on June 14, 2017, the FBI executed a search warrant at SINGH’s resident on Hallock Street in New Haven and seized approximately five grams of crack cocaine, narcotics paraphernalia, and a Taurus 9mm semi-automatic pistol containing a magazine loaded with 10 rounds of ammunition.
This is SINGH’s fourth federal conviction. In June 2011, he was sentenced in Bridgeport federal court to concurrent sentences of 24 months of imprisonment and five years of supervised release for two crack cocaine distribution offenses and, in July 2015, he was sentenced to 38 months of imprisonment and three years of supervised release for illegally possessing ammunition and violating the conditions of his supervised release imposed when he was sentenced in 2011. He was released from federal prison in March 2016.
SINGH also has been convicted in state court for narcotics, weapons, assault, and reckless endangerment offenses.
SINGH has been detained since his arrest on June 14, 2017. On November 16, 2017, he pleaded guilty to one count of possession of a firearm by a previously convicted felon, and admitted that he violated the conditions of his supervised release.
Judge Shea sentenced SINGH to 110 months of imprisonment for the firearm offense, and a consecutive 12 months of imprisonment for violating his supervised release.
This matter was investigated by the Federal Bureau of Investigation and the New Haven Police Department, and was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Hartford Man Sentenced to 46 Months in Prison for Distributing Drugs to 2 Overdose VictimsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that RUBEN MORALES, 45, of Hartford, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 46 months of imprisonment, followed by five years of supervised release, for distributing drugs involved in two overdose deaths in December 2016.
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, on December 24, 2016, Hartford police officers and emergency medical personnel responding to reports of unresponsive individuals discovered two male overdose victims in different locations on Zion Street in Hartford. A 33-year-old victim was pronounced deceased shortly after he was discovered in the rear parking lot of an apartment complex on Zion Street. At the scene, officers seized various items of drug-related paraphernalia. Officers found a 25-year-old victim on the rear porch of an apartment on Zion Street. The victim was transported to the hospital and later pronounced deceased.
The Connecticut Office of the Chief Medical Examiner subsequently determined that the 33-year-old victim’s death was caused by a combination of cocaine, heroin and fentanyl, and the 25-year-old victim’s death was caused by a combination of cocaine, ethanol and fentanyl.
The investigation revealed that MORALES supplied fentanyl-laced heroin that both victims consumed shortly before they died.
In January and February 2017, members of the FBI’s Northern Connecticut Violent Crime Gang Task Force conducted seven controlled purchases of heroin from MORALES. Subsequent lab analysis confirmed the presence of fentanyl in six of the seven controlled purchases.
MORALES was arrested on a federal complaint on February 16, 2017. On January 29, 2018, he pleaded guilty to one count of distribution of heroin and fentanyl.
Judge Bryant ordered MORALES, who is released on a $100,000 bond, to report to prison on June 6.
The FBI’s Northern Connecticut Violent Crime Gang Task Force includes members from the FBI, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. This case was prosecuted by Assistant U.S. Attorney Natasha Freismuth.
Hamden Man Sentenced to 30 Months in Federal Prison for Drug and Gun OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that MIQUEL LEWIS, 21, of Hamden, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by three years of supervised release, for narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, on September 6, 2017, LEWIS was arrested after members of the DEA New Haven Task Force and Hamden Police Department conducted a court-authorized search of LEWIS’s Hamden residence and seized 510 bags of heroin, approximately five grams of crack cocaine, narcotics paraphernalia, a loaded .38 caliber revolver and a loaded .45 caliber revolver. A subsequent search of a rental vehicle located in the driveway of the residence revealed a loaded .40 caliber firearm, which had been reported stolen in New Haven.
On January 30, 2018, LEWIS pleaded guilty to one count of possession of heroin and cocaine base (“crack”) with intent to distribute, and one count of possession of a firearm by a convicted felon.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This case was prosecuted by Assistant U.S. Attorney H. Gordon Hall.