District of Connecticut
Press releases recorded for this federal judicial district.
Shelton 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 HULL, 60, of Shelton, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of receipt of child pornography.
According to court documents and statements made in court, on May 31, 2017, Homeland Security Investigations (HSI) agents conducted a court-authorized search of HULL’s Shelton residence and seized approximately 16 electronic devices, including computers and external hard drives. A forensic examination of the seized devices revealed approximately 13 images and 126 videos of child pornography, including images and videos depicting children younger than 12 engaged in sexually explicit conduct.
The investigation also revealed that HULL had a video camera installed in his bathroom, which captured images of individuals, including children, who used his bathroom.
Judge Underhill scheduled sentencing for April 24, 2018, at which time HULL faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
HULL has been detained since his arrest on May 31, 2017.
This matter is being investigated by Homeland Security Investigations 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.
Hartford Man Pleads Guilty to Distributing Heroin and Fentanyl Involved in 2 Overdose DeathsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that RUBEN MORALES, 44, of Hartford, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court to one count of 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 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 six controlled purchases of heroin from MORALES. Subsequent lab analysis confirmed the presence of fentanyl in some of the heroin purchased.
MORALES was arrested on a federal complaint on February 16, 2017.
MORALES is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on May 2, 2018, at which time he faces a maximum term of imprisonment of twenty years. He is released on a $100,000 bond pending sentencing.
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 is being prosecuted by Assistant U.S. Attorney Natasha Freismuth.
Fairfield Man Who Sold Heroin and Fentanyl to Deep River Overdose Victim Sentenced to PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN VIBBERT, 37, of Fairfield, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for distributing heroin and fentanyl involved in an overdose death.
This prosecution is part of 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, in the early hours of May 31, 2016, Connecticut State Police and emergency medical personnel responded to a residence in Deep River and found an unresponsive 35-year-old male. Although CPR was performed and Narcan was administered, the man was pronounced deceased at the scene.
The investigation, which has included analysis of the victim’s cellphone and a witness interview, revealed that, on May 30, 2016, the victim contacted VIBBERT to purchase heroin. The victim then drove to a restaurant near I-95 in Bridgeport where he met VIBBERT to complete the purchase.
The Office of the Chief Medical Examiner determined the victim’s cause of death to be “acute heroin and fentanyl toxicities.”
VIBBERT was arrested on a criminal complaint on March 27, 2017. On August 23, 2017, he pleaded guilty to one count of distribution of heroin and fentanyl.
VIBBERT, who is released on a $50,000 bond, was ordered to report to prison on April 30.
This matter was investigated by the Drug Enforcement Administration and the Connecticut State Police, with the assistance of the Monroe Police Department. The case was prosecuted by Assistant U.S. Attorneys Lauren Clark and Michael McGarry.
New Haven Woman Sentenced to 2 Years in Federal Prison for Role in Heroin Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WANDA PISCIL, 52, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 24 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad targeted a New Haven-based heroin trafficking organization led by Bienvenido Gonzalez, also known as “Antonio” and “Julian,” and his brother, Antonio Gonzalez, also known as “Bienve.” The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, revealed that the Gonzalez brothers regularly purchased bulk quantities of heroin from suppliers located in the Bronx, New York, and sold the heroin through a network of redistributors, including PISCIL, in New Haven and elsewhere.
The investigation resulted in federal charges against 24 individuals.
PISCIL was arrested on March 16, 2017. On November 1, she pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribution of, heroin.
Bienvenido and Antonio Gonzalez previously pleaded guilty to related charges and await sentencing.
The DEA’s New Haven Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments. The New Haven, East Haven and West Haven Police Departments, together with the U.S. Coast Guard, provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Patrick F. Caruso.
Manchester Man Who Threatened Federal Probation Officer Sentenced to 41 Months in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PETER J. SANTOS, 41, of Manchester, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 41 months of imprisonment, followed by two years of supervised release, for threatening a federal official. On June 2, 2017, a jury found SANTOS guilty of the offense.
According to the evidence presented during the trial, in January 2014, SANTOS was sentenced in the Southern District of New York to 25 months of imprisonment, followed by three years of supervised release, for conspiring to transport stolen goods, conspiring to receive stolen goods and conspiring to commit wire fraud. On December 31, 2015, after completing his period of incarceration, he began serving his three-year period of supervised release, which was transferred to the U.S. Probation Office in the District the Connecticut.
While on supervised release, SANTOS tested positive for controlled substances on multiple occasions. On August 31, 2016, SANTOS appeared before U.S. District Judge Janet Bond Arterton in New Haven for a supervised release violation hearing. Judge Arterton revoked SANTOS’ supervised release and imposed a penalty of six months of imprisonment to be followed by 24 months of additional supervised release. As the U.S. Marshals were walking SANTOS out of the courtroom, SANTOS looked at his supervising U.S. Probation Officer and stated “When I get out, I’m coming for you.” The Probation Officer responded, “Excuse me?” SANTOS responded, “You heard me.”
After they left the courtroom, a Deputy U.S. Marshal said to SANTOS, “That’s not smart.” SANTOS responded by stating that he did not care and he was tired of it, adding that, “Everyone has to meet their maker whether it is by me or some other way.”
The investigation revealed that SANTOS made additional threats while he was incarcerated on the supervised release violation.
SANTOS has been detained since his arrest on January 30, 2017.
This matter was investigated by the U.S. Marshals Service and was prosecuted by U.S. Attorney John H. Durham.
Eight Individuals Charged with Deceptive Trading Practices Executed on U.S. Commodities MarketsRead the Press Release
Eight individuals who allegedly engaged in various deceptive trading practices on commodities markets in the United States have been publicly charged with federal crimes. Seven of the eight individuals were charged with the crime of spoofing, an illegal trading practice that can be used to manipulate the commodities markets. Other than the individuals identified today, only three other individuals have ever been publicly charged with the crime of spoofing. Of those identified today, five were traders employed by global financial institutions, two were traders at large commodities trading firms, and one was the owner of a technology consulting firm.
The enforcement actions were announced by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Assistant Director Chris Hacker of the FBI’s Criminal Investigative Division and Director James McDonald of the U.S. Commodity Futures Trading Commission’s (CFTC) Division of Enforcement.
The charges announced today aggressively target, among other things, the practice of spoofing, which was allegedly employed in various forms by these defendants and/or their co-conspirators to manipulate the market for futures contracts traded on the Chicago Mercantile Exchange (CME), the Chicago Board of Trade (CBOT), and the Commodity Exchange Inc. (COMEX). The defendants and their co-conspirators are alleged to have defrauded market participants and manipulated these markets by placing hundreds, and in some cases, thousands of orders that they did not intend to trade, or “spoof orders,” to create the appearance of substantial false supply and demand and to induce other market participants to trade at prices, quantities, and times that they otherwise would not have traded. According to the charging documents, the spoof orders often had the effect of artificially depressing or artificially inflating the prices of futures contracts traded on CME, CBOT, and COMEX. In order to take advantage of the artificial price levels created by their spoof orders, the defendants and/or their co-conspirators are alleged to have executed real, genuine orders to buy (at the artificially low prices) or to sell (at the artificially high prices) in order to generate trading profits or to illicitly mitigate other trading losses.
“As alleged, the defendants in these cases engaged in sophisticated schemes or trading practices aimed at defrauding individuals and entities trading on U.S. futures exchanges,” said Acting Assistant Attorney General Cronan. “Conduct like this poses significant risk of eroding confidence in U.S. markets and creates an uneven playing field for legitimate traders and investors. The Department and our law enforcement partners will use all of the tools at our disposal, including cutting-edge data analysis, to detect these types of schemes and to bring those who engage in them to justice. Protecting the integrity of our markets remains a significant priority in our fight against economic crime.”
“The FBI has taken enforcement action against multiple commodities traders who, for their own personal gain, were spoofing trades through electronic trading platforms,” said Deputy Assistant Director Chris Hacker. “Their deceptive trading artificially affected the perception of supply and demand in the market and took away a level playing field for investors. We ask for those who observe indicators of this type of fraud to come forward to law enforcement so that we can stop those who attempt to exploit our financial system.”
“Spoofing is a particularly pernicious example of bad actors seeking to manipulate the market through the abuse of technology,” said Director McDonald. “The technological developments that enabled electronic and algorithmic trading have created new opportunities in our markets. At the CFTC, we are committed to facilitating these market-enhancing developments. But at the same time, we recognize that these new developments also present new opportunities for bad actors. We are equally committed to identifying and punishing these bad actors. The CFTC’s enforcement program is built around the twin goals of holding wrongdoers accountable and deterring future misconduct. We believe these goals are best achieved when we hold accountable not just companies, but also the individuals involved. As these cases show, we will work hard to identify and prosecute the individual traders who engage in spoofing, but we will also seek to find and hold accountable those who teach others how to spoof, who build the tools designed to spoof, or who otherwise aid and abet the wrongdoing. These cases should send a strong signal that we at the CFTC are committed to identifying individuals responsible for unlawful activity and holding them accountable.”
Northern District of Illinois
Six individuals have been charged in four cases with spoofing and/or manipulative conduct charged in the Northern District of Illinois including:
- James Vorley, 37, of the United Kingdom, and Cedric Chanu, 39, a French citizen, are charged in a criminal complaint with conspiracy, wire fraud, commodities fraud, and spoofing offenses in connection with executing a scheme to defraud involving both solo and coordinated spoofing on the COMEX while they were employed as precious metals traders at a leading global financial institution. Vorley was based in London, United Kingdom and Chanu was based in London, and the Republic of Singapore.
- Edward Bases, 55, of New Canaan, Connecticut, and John Pacilio, 53, of Southport, Connecticut, are charged in a criminal complaint with commodities fraud in connection with an alleged scheme to engage in both solo and coordinated spoofing on the COMEX when they were employed as precious metals traders at a leading global financial institution. Bases is also charged with spoofing offenses. Bases and Pacilio were based in New York City.
- Jitesh Thakkar, 41, of Naperville, Illinois, is charged in a criminal complaint with conspiracy and spoofing offenses alleging that Thakkar developed a software program that was used by Thakkar’s co-conspirator to engage in spoofing through the placement of thousands of orders on the CME when Thakkar was the founder and principal of Edge Financial Technologies Inc. (“Edge”), an information technology consulting firm located in Chicago, Illinois.
- Jiongsheng (“Jim”) Zhao, 30, of Australia, is charged in a criminal complaint with wire fraud, commodities fraud, making false statements to the CME, and spoofing offenses when he was a trader at a proprietary trading firm located in Sydney, Australia. According to the complaint, data analysis identified hundreds of instances of spoofing by Zhao on the CME between approximately July 2012 and March 2016. Additionally, the complaint alleges that Zhao made false written statements to the CME after being confronted with allegations of his disruptive trading practices.
District of Connecticut
- Andre Flotron, 53, a Swiss national currently residing in Wayne, New Jersey, has been charged in an indictment in the District of Connecticut with conspiracy to commit spoofing, wire fraud, and commodities fraud when he was a UBS AG precious metals trader at UBS’s trading desks in Stamford, Connecticut and Zurich, Switzerland. The indictment also alleges that Flotron trained and instructed another UBS trader in the practice of using spoof orders.
Southern District of Texas
- Krishna Mohan, 33, of New York, New York, is charged in a criminal complaint filed in the Southern District of Texas with commodities fraud and spoofing offenses when he was employed as a programmer and trader at a proprietary trading firm in Chicago, Illinois. According to the complaint, data analysis identified that Mohan engaged in a pattern of spoofing over a thousand times in a two-month period.
Today’s enforcement actions were led and coordinated by the Criminal Division Fraud Section’s Securities and Financial Fraud Unit and the U.S. Attorney’s Office for the District of Connecticut, in conjunction with special agents from FBI Offices in New York, Chicago, Connecticut, and Houston, and with invaluable assistance from the Fraud Section’s partners at the U.S. Attorney’s Office for the Northern District of Illinois, the U.S. Attorney’s Office for the Southern District of Texas, the U.S. Postal Inspection Service and the CFTC’s Division of Enforcement. The cases are being prosecuted by Assistant Chiefs Nicholas Surmacz and Carol Sipperly and Trial Attorneys Michael O’Neill, Matthew Sullivan, Jeffrey Le Riche, Michael Rinaldi, Cory Jacobs, and Mark Cipolletti of the Fraud Section’s Securities and Financial Fraud Unit, along with Assistant U.S. Attorney Avi Perry of the U.S. Attorney’s Office for the District of Connecticut.
A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Individuals who believe that they may be a victim in these cases should visit the Fraud Section’s Victim Witness website or call 889-549-3945 for more information.
To obtain information on the CFTC’s resolutions with three global financial institutions, please go to: http://www.cftc.gov/PressRoom/PressReleases/index.htm.
Bridgeport Man Sentenced to 6 Years in Prison for Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ROBERT BOWENS, 34, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 76 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on April 22, 2017, Connecticut State Police stopped a vehicle BOWENS was operating on I-95 in Bridgeport. BOWENS attempted to flee and, during a struggle with troopers, produced a 9mm handgun. Troopers knocked the firearm from BOWENS’ hand, but BOWENS broke free, jumped into an SUV that had arrived at the scene, and the vehicle fled. BOWENS was apprehended on May 9.
BOWENS’ criminal history includes state felony convictions for possession with intent to sell, criminal possession of a weapon, and forgery. He also has a prior federal conviction for possession of a firearm by a previously convicted felon, for which he was sentenced, in May 2009, to 57 months of imprisonment.
BOWENS has been detained since his arrest. On November 6, 2017, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut State Police, with the assistance of the U.S. Marshals Connecticut Violent Fugitive Task Force and the Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
New Britain Man Sentenced to More Than 5 Years in Federal Prison for Supplying Crack to Hartford GangRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL CHAPMAN, also known as “Nice” and “Mizzo,” 26, of New Britain, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 66 months of imprisonment, followed by five years of supervised release, for supplying crack cocaine to a Hartford drug trafficking organization.
According to court documents and statements made in court, this matter 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’s Parkville neighborhood, and related overdoses. The investigation specifically targeted criminal activity being committed by members and associates of the Orange Street Killas (OSK), which operated principally in the area of Orange, Cherry and Arbor Streets. The investigation followed a series of reports of shots fired in the area, and a homicide that was committed on Cherry Street in October 2015. The prosecution was built on court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, all of which revealed that OSK members acquired heroin and crack cocaine and then sold the narcotics on the streets of Hartford.
The investigation revealed CHAPMAN converted cocaine to crack cocaine and supplied the drug to the OSK drug trafficking organization for street sale.
On February 10, 2017, investigators arrested CHAPMAN and several of his codefendants. On that date, a search of CHAPMAN’s New Britain residence revealed a firearm and a quantity of crack.
CHAPMAN has been detained since his arrest. On November 3, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute 28 grams or more of cocaine base (“crack”).
CHAPMAN’s criminal history includes convictions for larceny, possession of narcotics, weapon in a motor vehicle, and violation of probation.
Sixteen individuals were charged as a result of the investigation.
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 U.S. Marshals Service, 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.
Former Hartford Resident Pleads Guilty to Heroin Distribution ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NORBERTO RODRIGUEZ, also known as “Primo,” 44, formerly of Hartford, pleaded guilty today in New Haven federal court to one count of distribution of heroin.
According to court documents and statements made in court, law enforcement received information that RODRIGUEZ was selling heroin and crack cocaine in the area of Madison Street in Hartford. On June 9, 2016, investigators made a controlled purchase of 51 wax folds of heroin from RODRIGUEZ at a location on Franklin Avenue in Hartford. Laboratory analysis of the purchased substance revealed the presence of heroin, acetylfentanyl and furanyl fentanyl.
RODRIGUEZ was arrested on a federal criminal complaint on June 5, 2017. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on April 20, 2018, at which time he faces a maximum term of imprisonment of 20 years.
RODRIGUEZ, who currently resides in Waterbury, is released on a $50,000 bond pending sentencing.
This investigation has been conducted by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the U.S. Marshals Service, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
New Haven Man Who Possessed Stolen Firearm is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL BALDWIN, 20, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to one day of imprisonment, time already served, and three years of supervised release, for possessing a stolen firearm. Judge Bryant also ordered BALDWIN to perform 120 hours of community service while on supervised release.
According to court documents and statements made in court, on April 10, 2016, Hamden Police arrested BALDWIN after he and other individuals fled from police in a stolen car. After a pursuit, the vehicle crashed into a pole and BALDWIN, who had not been driving, fled from officers on foot. He was subsequently taken into police custody. A search of BALDWIN’s person revealed a plastic bag containing crack cocaine packaged for street sale, and a makeshift firearm holster around his stomach. Officers also located and seized a Springfield Armory XD .40 caliber handgun that had been discarded next to the crashed vehicle.
The firearm had previously been reported stolen from a residence in Hamden.
On April 5, 2017, BALDWIN pleaded guilty to one count of possession of a stolen firearm.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hamden Police Department. The case was prosecuted by Assistant U.S. Attorneys Natasha Freismuth and Peter Markle.
New Haven Man Pleads Guilty to Heroin Distribution Charge Stemming from Shelton Overdose DeathRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that COREY SENIOR, 26, of New Haven, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of possession with intent to distribute, and distribution of, heroin.
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 27, 2017, the Shelton Police Department and emergency medical services responded to a Shelton residence after a report of a suspected drug overdose of a 34-year-old female. The victim was pronounced deceased at the scene. Officers seized drug and non-drug evidence, including bags that appeared to have contained heroin, and a hypodermic needle. Investigators also seized the victim’s cellphone.
On April 28, 2017, the victim’s cellphone received a text from SENIOR and an officer, posing as the victim, arranged to purchase heroin from SENIOR. Shelton Police arrested SENIOR later that day after he arrived at the victim’s residence in possession of suspected heroin.
The investigation revealed that SENIOR had provided heroin to the victim shortly before the victim’s death.
SENIOR was arrested on a federal criminal complaint on May 16, 2017.
SENIOR faces a maximum term of imprisonment of 20 years. A sentencing date is not scheduled.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force and the Shelton Police Department. This case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Hartford Man Sentenced to 5 Years in Federal Prison for Role in Heroin Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARCUS TYSON, 32, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by four years of supervised release, for his role in a heroin distribution ring.
According to court documents and statements made in court, in 2016, the East Hartford Police Department received information that individuals were packaging and selling heroin from an apartment at 50 Forest Street in Hartford, and that there were guns in the apartment. A law enforcement investigation in August and September 2016 confirmed drug activity at the location.
On September 13, 2016, members of the Hartford Police Department, East Hartford Police Department and the FBI’s Northern Connecticut Violent Crimes Task Force executed a search warrant at the apartment and encountered TYSON, Byron Rivera and Ronald Perez inside. A search of the apartment revealed more than 39,000 bags of heroin, approximately 283 grams of unpackaged heroin, three fentanyl patches, scales and other items used in the processing and packaging of heroin, two handguns and numerous rounds of ammunition. TYSON, Rivera and Perez were arrested at that time.
On June 2, 2017, TYSON pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin. Rivera and Perez also have pleaded guilty. On August 29, 2017, Rivera was sentenced to 60 months of imprisonment. Perez awaits sentencing.
The FBI Task Force includes members of the U.S. Marshals Service, 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.
Bridgeport Man Pleads Guilty to Distributing Heroin to Seymour Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RICHARD ESTABA, also known as “Raw,” 23, of Bridgeport, 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.
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 July 9, 2017, Seymour Police and emergency medical personnel responded to a residence in Seymour on a report of a suspected drug overdose. In the bathroom of the residence, responders encountered a 29-year-old male who was not breathing and did not have a pulse. The male was pronounced deceased. Investigators seized the victim’s cellphone, multiple folds of suspected heroin marked with two different brand stamps, and other drugs. Subsequent cell phone analysis and witness interviews determined that ESTABA supplied the heroin consumed by the victim shortly before he was found dead.
The Connecticut Office of the Chief Medical Examiner determined that the victim’s death was caused by acute intoxication due to the combined effects of cocaine, etizolam, fentanyl, flubromazolam and heroin.
In August 2017, investigators made a controlled purchase of 10 wax folds of heroin from ESTABA. The folds were marked with a brand stamp that was found on some of the wax folds at the victim’s residence.
ESTABA was arrested on September 20, 2017. On that date, he possessed approximately 400 folds of heroin and $1,300 in cash.
Judge Underhill scheduled sentencing for April 18, 2018, at which time ESTABA faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and the Seymour and Shelton Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Watertown Man Pleads Guilty to Conspiracy Offense Related to Bribery SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that KEVIN DUNN, 49, of Watertown, waived his right to be indicted and pleaded guilty yesterday in New Haven federal court to a conspiracy offense related to a bribery scheme.
According to court documents and statements made in court, DUNN is the president of Delmar Electrical Contractors in Watertown. Javed Choudhry was employed by a construction company in the Stamford area. Between approximately 2011 and 2014, DUNN paid between $200,000 to $300,000 in bribes to Choudhry, either directly or through another contractor, to receive approximately $21 million in contracts on construction projects in Stamford.
DUNN pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on April 16, 2018.
DUNN is released on a $150,000 bond.
On May 16, 2017, Choudhry, of Glastonbury, pleaded guilty to conspiracy and tax offenses stemming from this scheme. He awaits sentencing.
This investigation is being conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Stamford Woman Charged with Fraud Offense Stemming from Embezzlement SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a grand jury in New Haven returned an indictment yesterday charging CANDACE RISPOLI, 31, of Stamford, with one count of wire fraud stemming from an embezzlement scheme.
RISPOLI appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $100,000 bond.
As alleged in the indictment, from approximately January 2012 until June 2016, RISPOLI was employed by Lodestone Management Consultants, later known as Infosys Consulting (the “Company”). Beginning in approximately 2013, RISPOLI worked for the Company from former home in East Haven, which she shared with her then-boyfriend, Michael Miano. In her capacity as a Company employee, RISPOLI had an American Express credit card to use to pay for travel, entertainment and other business expenses incurred by the Company’s employees and potential employees.
The indictment alleges that, from approximately 2013 until June 2014, RISPOLI wrongfully charged her own and Miano’s personal expenses to the Company’s American Express card. RISPOLI also wrongfully transferred funds from the Company’s American Express card to PayPal and Venmo accounts controlled by RISPOLI and Miano. To conceal her scheme, RISPOLI altered the Company’s American Express account statements and created false billing summaries, which she emailed to the Company’s accounting firm.
It is alleged that RISPOLI and Miano stole at least $800,000 as part of this scheme.
If convicted of the charge in the indictment, RISPOLI faces 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 each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
On September 1, 2017, Miano, 31, of Branford, waived his right to be indicted and pleaded guilty to one count of conspiracy to commit wire fraud. He is released on a $100,000 bond pending sentencing.
This investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Heather Cherry and Jonathan Francis.
Leader of New Haven Heroin Trafficking Ring Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ANTONIO GONZALEZ, also known as “Bienve,” 47, of New Haven, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of conspiracy to possess with intent to distribute, and distribution of, one kilogram or more of heroin.
According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad targeted a New Haven-based heroin trafficking organization led by GONZALEZ and his brother, Bienvenido Gonzalez. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, revealed that the Gonzalez brothers regularly purchased bulk quantities of heroin from suppliers located in the Bronx, New York, and sold the heroin through a network of redistributors in New Haven and elsewhere.
The investigation resulted in federal charges against 24 individuals.
ANTONIO GONZALEZ has been detained since his arrest on March 16, 2017. Judge Meyer scheduled sentencing for April 12, 2018, at which time GONZALEZ faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Bienvenido Gonzalez pleaded guilty to the same charge on November 30, 2017. As part of his plea, he agreed to forfeit $10,000 in cash that was seized from a stash house he operated in East Haven, his interest in a New Haven barbershop located on Farren Street in New Haven, a Dodge Ram truck, and two race cars. He awaits sentencing.
The DEA’s New Haven Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments. The New Haven, East Haven and West Haven Police Departments, together with the U.S. Coast Guard, provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Patrick F. Caruso.
West Hartford Man Sentenced to Prison for Distributing Fentanyl and PCP to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEPHEN MALDONADO, also known as “Chewy,” 31, of West Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 12 months and one day of imprisonment, followed by three years of supervised release, for distributing fentanyl and PCP to an overdose victim in 2016. Judge Underhill also ordered MALDONADO to pay restitution to the victim’s family to cover the victim’s funeral expenses.
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 March 25, 2016, Bristol Police and emergency medical personal responded to a Bristol residence on a report of an untimely death and encountered a deceased 24-year-old female on a bed in the residence. At the scene, officers seized drug and non-drug evidence, including the victim’s cellphone, numerous wax folds that are typically used to package heroin, and two Naloxone injectors (one used and one unused) contained within an overdose kit. A witness at the scene reported that the victim had recently sought medical assistance for bleeding from the ears.
The Connecticut Office of the Chief Medical Examiner subsequently determined that the victim died from fentanyl and PCP intoxication.
The investigation revealed that MALDONADO provided drugs to the victim shortly before her death. The victim’s cellphone contained numerous text messages between MALDONADO and the victim. In one text message sent the day before she was found dead, the victim stated “Omg! Im bleeding out my ears!! Wat did u giv me?”
MALDONADO was arrested on May 26, 2016. On September 26, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of, fentanyl and phencyclidine (“PCP”).
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the Bristol Police Department. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Stratford Man Sentenced to 18 Months in Prison for Role in Large-Scale Fencing OperationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MATTHEW HARWOOD, 43, of Stratford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 18 months of imprisonment, followed by three years of supervised release, for his role in a large-scale fencing operation. Judge Shea also ordered HARWOOD to pay a $35,000 fine and perform 100 hours of community service while on supervised release.
According to court documents and statements made in court, between January 2012 and December 2014, HARWOOD participated in a conspiracy to purchase stolen property from “boosters,” who typically were shoplifters with opioid addictions, and then resell the property at online websites. HARWOOD, his co-conspirator Andrew Sacco, and others instructed the boosters to steal certain items from retail stores such as Petco, Staples, Walmart, and Bed Bath & Beyond, and paid cash for the stolen items at approximately one-third of their retail price. At times, HARWOOD provided expenses for car rentals and spending money for overnight or out-of-state trips to steal products.
After receiving the stolen merchandise, HARWOOD and Sacco stored the merchandise at multiple locations, including HARWOOD’s former residence in Durham, Sacco’s former residence in Durham, and business locations in North Haven. HARWOOD and Sacco then sold the stolen products at online sites, including eBay and Amazon.
Through this scheme, retailers lost more than $3.9 million.
On November 3, 2016, HARWOOD pleaded guilty to one count of conspiracy to commit the interstate transport of stolen property and one count of interstate transport of stolen property.
HARWOOD also has forfeited the house in Durham where he formerly resided, and two mutual fund accounts in his name.
HARWOOD, who is released on a $100,000 bond, was ordered to report to prison on March 19, 2018.
Sacco pleaded guilty to the same charges and, on December 6, 2017, was sentenced to 48 months of imprisonment.
This matter has been investigated by 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 David T. Huang and John T. Pierpont, Jr.
Bank Manager Sentenced to Prison for Stealing More Than $500K from Customer AccountsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CARRIE CAESAR, 47, of New Britain, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 12 months and one day of imprisonment, followed by four years of supervised release, for embezzling funds from Webster Bank Corporation.
According to court documents and statements made in court, CAESAR was a long-time employee of Webster Bank where she served in a variety of roles, including bank teller, account manager and, most recently, as manager of the Avon branch office. Between 2003 and 2016, CAESAR withdrew at least $535,600 from account holders’ certificate of deposit (CD) accounts at Webster Bank, without the knowledge or consent of the account holders, used the embezzled funds for her own purposes, and took steps to conceal her misconduct.
CAESAR targeted primarily six customers, all of whom were at least 79 years old and with whom she had developed a relationship as an account manager.
Judge Thompson ordered CAESAR to pay $535,600 in restitution to the bank.
On February 13, 2017, CAESAR pleaded guilty to one count of theft, embezzlement and misapplication by a bank officer and employee.
CAESAR, who is released on a $150,000 bond, was ordered to report to prison on March 20, 2018.
This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Bridgeport Man Sentenced to 30 Months in Prison for Stolen Postal Money Order and Check Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that BERNARD HARRIS, 33, of Bridgeport, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by three years of supervised release, for participating in two fraud schemes.
According to court documents and statements made in court, the first scheme involved the theft of postal money orders. Marc Anthony Alexander, formerly of Stratford and Oxford, and his wife, Rachael Alexander, also known as Rachael Vierling, devised a scheme to steal blocks of blank postal money orders from the U.S. Post Office in Old Greenwich. The Alexanders and others then imprinted the money orders with various denominations using a computer font designed to make them appear to be authentic. The Alexanders recruited HARRIS into the scheme to organize others to cash the money orders, or deposit them into numerous bank accounts, either at an ATM or at a teller window. HARRIS recruited at least five individuals and paid them a portion of the proceeds. He then turned the bulk of the money over to the Alexanders. The Alexanders compensated HARRIS by giving him additional money orders that he cashed and converted to his own use.
The loss from this scheme was $313,570.
HARRIS, Marc Alexander and Rachael Alexander were charged by indictment and arrested on April 26, 2016. On September 8, 2016, HARRIS pleaded guilty to one count of conspiracy to commit wire fraud.
On December 30, 2016, while he was released on bond, HARRIS went to a Waterbury check cashing business and presented a $3860 check that was allegedly issued by the Connecticut Department of Children and Families. HARRIS provided his driver’s license as identification and provided two references, including the name of his federal pretrial services officer and his federal public defender. He also cashed a second check from DCF.
On May 8, 2017, HARRIS pleaded guilty to one count of wire fraud stemming from the fraudulent check scheme and was remanded into custody.
Marc and Rachael Alexander pleaded guilty to charges related to the postal money order scheme and a separate scheme that involved the fraudulent sale of financed vehicles. On April 11, 2017, Marc Alexander was sentenced to 96 months of imprisonment. Rachael Alexander awaits sentencing.
This investigation has been conducted by the Connecticut Financial Crimes Task Force¸ U.S. Postal Service Office of Inspector General, U.S. Postal Inspection Service, U.S. Secret Service, Federal Bureau of Investigation, Westport Police Department and Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Hartford Man Guilty of Multiple Narcotics OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on January 12, a federal jury in New Haven found STANLEY REDDICK, 34, of Hartford, guilty of multiple drug offenses.
According to the evidence introduced during a two-day trial before U.S. District Judge Jeffrey A. Meyer, on two occasions in April 2017, investigators made controlled purchases of a total of approximately 110 grams of crack cocaine from REDDICK.
REDDICK was arrested on May 3, 2017. On that date, a search of REDDICK’s Ashford Street residence and his person revealed approximately 32 grams of crack, 42 grams of heroin, nine grams of a mixture of heroin, fentanyl, and cocaine, and items used to process and package narcotics for street sale. Investigators also found a key to an inoperative vehicle that was parked behind the residence, a subsequent search of which revealed a 9mm firearm and approximately 28 grams of fentanyl.
The jury found REDDICK guilty of two counts of possession with intent to distribute and distribution of 28 grams or more of cocaine base (“crack”), one count of possession with intent to distribute heroin, one count of possession with intent to distribute cocaine base, and one count of possession with intent to distribute fentanyl. The jury found REDDICK not guilty of one count of possession of a firearm in furtherance of a drug trafficking crime.
A sentencing date is not scheduled.
REDDICK has been detained since his arrest.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, and the Hartford Police Department’s Focused Violence Reduction Team. The case is being prosecuted by Assistant U.S. Attorneys Marc H. Silverman and Michael J. Gustafson.
Ecuadorian National Sentenced to Prison for Passport FraudRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MANUEL ANTONIO GUAMAN, 34, a citizen of Ecuador last residing in Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to six months of imprisonment and three years of supervised release for passport fraud.
According to court documents and statements made in court, GUAMAN is a native and citizen of Ecuador. On or about August 2, 2006, he submitted in person an application for a U.S. passport, in the name of another individual, at a U.S. Post Office in Waterbury. Claiming to be this individual, GUAMAN presented to the passport acceptance agent a Puerto Rican birth certificate and a Connecticut identity card. Neither the birth certificate nor the identity card reflected the defendant’s true identity. GUAMAN signed the passport application under oath claiming to be this other individual. This passport was issued and used by GUAMAN to travel between the U.S. and Ecuador in 2012.
On October 23, 2014, GUAMAN submitted a passport renewal application, and provided the previous passport as proof of his identity and U.S. citizenship. On December 31, 2015, after conducting an investigation, law enforcement interviewed GUAMAN while he was incarcerated in a Connecticut Department of Correction facility. GUAMAN admitted that he had signed and submitted the above-referenced passport renewal application, and that he was not the person whom he had claimed to be in the application.
On July 11, 2017, GUAMAN pleaded guilty to one count of use of a passport secured by false statement and one count of making a false statement in a passport application.
GUAMAN is currently serving a state sentence for assault in the first degree. He will be removed to Ecuador after serving his state and federal prison terms.
This case was investigated by the U.S. Department of State, Bureau of Diplomatic Security. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Tobacco Wholesalers Charged with Defrauding State of ConnecticutRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, on January 10, a grand jury in Bridgeport returned a 13-count indictment charging PAVAN VASWANI, 39, of West Haven, and RISHI MALIK, 45, formerly of Fairfield, with engaging in a conspiracy to defraud the State of Connecticut of millions of dollars in taxes due on tobacco products imported into the state.
VASWANI and MALIK were arrested yesterday and appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport. MALIK was detained pending a detention hearing that is scheduled for January 16. VASWANI was released on a $250,000 bond.
As alleged in the indictment, VASWANI has operated KDV Discounts LLC, a wholesale tobacco business based in Bridgeport. MALIK previously operated the business as Connecticut Discounts LLC before selling it to VASWANI in 2012. Between 2013 and 2017, VASWANI filed false tax forms with the Connecticut Department of Revenue Services that underreported his taxes due. He then paid over those lower amounts instead of taxes actually owed. MALIK conspired with VASWANI through means including forming a Pennsylvania company, Discount Deals, to acquire smokeless tobacco that was imported into Connecticut without payment of taxes.
It is alleged that the State of Connecticut was defrauded of approximately $5.8 million through this scheme.
The indictment charges VASWANI and MALIK with one count of conspiracy to commit wire fraud and to violate the Contraband Cigarette Trafficking Act (“CCTA”), an offense that carries a maximum term of imprisonment of five years. The indictment also charges VASWANI with 12 counts and MALIK with four counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years, on each count.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Connecticut Department of Revenue Services, Criminal Investigations Division. The case is being prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and Michael S. McGarry.
Plainfield Man Sentenced to 30 Months in Federal Prison for Distributing Fentanyl to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that GEORGE KINNEY, 35, of Plainfield, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for distributing 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 August 31, 2016, the Plainfield Police Department responded to a report of an untimely death of a 38-year-old female at a hotel in Plainfield. At the scene, officers seized drug and non-drug evidence, including bags that appear to have contained heroin and/or fentanyl that were located in a bathroom garbage can. The investigation revealed that KINNEY had provided the drugs to the victim and her boyfriend shortly before the victim’s death.
The Connecticut Office of the Chief Medical Examiner subsequently determined that the victim died due to the combined effects of ethanol and fentanyl.
KINNEY was arrested on May 9, 2017. At the time of his arrest, KINNEY possessed 40 bags of heroin on his person, and another 150 bags that were hidden in secret compartment in his pickup truck. The seized bags contained heroin and fentanyl, and most had identical labeling to the bags found in the victim’s hotel room.
Judge Bolden ordered KINNEY to forfeit his truck, a 2008 Ford F150 XL.
KINNEY has been detained since his arrest. On October 18, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin and fentanyl.
KINNEY’s criminal history includes convictions for drug trafficking and a domestic violence offense.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the Plainfield Police Department. The case was prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Dental Management Company Benevis and its Affiliated Kool Smiles Dental Clinics to Pay $23.9 Million to Settle False Claims Act Allegations Relating to Medically Unnecessary Pediatric Dental ServicesRead the Press Release
WASHINGTON – The Justice Department announced today that it has settled False Claims Act allegations against dental management company Benevis LLC (formerly known as NCDR LLC) and more than 130 of its affiliated Kool Smiles dental clinics for which Benevis provides business management and administrative services. Under the agreement, Benevis and the Kool Smiles clinics will pay the United States and participating states a total of $23.9 million, plus interest, to resolve allegations that they knowingly submitted false claims for payment to state Medicaid programs for medically unnecessary dental services performed on children insured by Medicaid.
“Billing Medicaid programs for dental procedures that are not necessary contributes to the soaring costs of healthcare,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When healthcare providers put vulnerable patients at risk by performing medically unnecessary procedures to achieve financial goals, we will take action.”
The United States alleged that between January 2009 and December 2011, Benevis and Kool Smiles clinics located throughout 17 states knowingly submitted false claims to state Medicaid programs for medically unnecessary pulpotomies (baby root canals), tooth extractions, and stainless steel crowns, in addition to seeking payment for pulpotomies that were never performed. The United States alleges that Kool Smiles clinics routinely pressured and incentivized dentists to meet production goals through a system that disciplined “unproductive” dentists and awarded “productive” dentists with substantial cash bonuses based on the revenue generated by the procedures they performed. According to the government’s allegations, Kool Smiles clinics ignored complaints from their own dentists regarding overutilization. In addition, the United States further alleged that Kool Smiles clinics located in Texas knowingly submitted false claims to the Texas Medicaid Program for First Dental Home (FDH), a program intended to provide a comprehensive package of dental services aimed at improving the oral health of children under three years of age. These clinics are alleged to have submitted false claims for FDH services that were not fully provided.
Of the $23.9 million to be paid by Benevis and its affiliated Kool Smiles clinics, the federal government will receive a total of $14,244,073.49, plus interest, and a total of $9,655,926.51, plus interest, will be returned to individual states, which jointly funded improper claims submitted to state Medicaid programs.
“The allegations in these cases are particularly egregious because they involved medically unnecessary dental services performed on children,” said John H. Durham, U.S. Attorney for the District of Connecticut. “Exploiting needy children for financial gain is inexcusable. The U.S. Attorney’s Office in Connecticut is committed to aggressively pursuing health care providers that submit fraudulent claims to government health care programs.”
The government’s investigation was initiated by five lawsuits filed under the whistleblower provision of the False Claims Act, which permits private citizens to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. Four of the cases are currently pending in the District of Connecticut and one is pending in the Western District of Texas. As part of today’s resolution, three of the whistleblowers—former Kool Smiles employees Adam Abendano, Poonam Rai, and Robin Fitzgerald—will receive payments totaling more than $2.4 million from the federal share of the settlement.
“When providers accept federal funds for reimbursement, they have a duty and responsibility to provide the best care possible to the patient, especially when their patients are economically disadvantaged children,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “The United States Attorney’s Office for the Southern District of Texas will aggressively prosecute healthcare providers who fail to provide care as required when it adversely affects the taxpayers.”
“The conduct of Kool Smiles reached across state lines to impact many patients, many of them vulnerable children,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “I want to thank our law enforcement partners for their tireless effort and dedication in bringing about this nationwide resolution.”
“Today’s settlement sends a very clear signal: Fraud in the federal healthcare system will not be tolerated,” said U.S. Attorney John F. Bash for the Western District of Texas. “Especially when that fraud involves performing unnecessary procedures on kids—here, unnecessary baby root canals and tooth extractions, among other procedures—we will not hesitate to use every tool at our disposal to punish those who break the law.”
“It is intolerable when health care companies seek to boost profits by defrauding Medicaid and exploiting children," said Special Agent in Charge Phillip M. Coyne, HHS-OIG. "Systematically performing and billing for medically unnecessary dental procedures undermines the well-being of these young patients, corrupts the impartiality of medical decision-making, and diverts money from taxpayer-funded health care programs designed to pay for legitimate medical needs.”
The settlement with Benevis and its affiliated Kool Smiles clinics was the result of a collaborative effort among federal and state agencies. The Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the District of Connecticut, Southern District of Texas, Eastern District of Virginia, and Western District of Texas handled the cases, with substantial assistance from the National Association of Medicaid Fraud Control Units (NAMFCU). The Civil Division and NAMFCU coordinated the nationwide investigation, which was conducted by the Office of Inspector General for the Department of Health and Human Services, the Department of Defense Criminal Investigative Service, and NAMFCU.
The cases are captioned United States, et al., ex rel. Abendano v. NCDR, LLC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Greenwald v. Kool Smiles Dentistry PC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Rai, et al. v. Kool Smiles Dentistry PC, et al., 3:17-cv-834 (JBA) (D. Conn.); United States, et al., ex rel. Bowne v. KS-VAP, PC, et al., 3:16-cv-369 (JBA) (D. Conn.); and United States, et al., ex rel. Alves, et al. v. NCDR, LLC, et al., SA-13-CV-0760H (W.D. Tex.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
In the District of Connecticut, the investigation was handled by Assistant U.S. Attorney Richard M. Molot.
Dental Management Company Benevis and Its Affiliated Kool Smiles Dental Clinics to Pay $23.9 Million to Settle False Claims Act Allegations Relating to Medically Unnecessary Pediatric Dental ServicesRead the Press Release
The Justice Department announced today that it has settled False Claims Act allegations against dental management company Benevis LLC (formerly known as NCDR LLC) and more than 130 of its affiliated Kool Smiles dental clinics for which Benevis provides business management and administrative services. Under the agreement, Benevis and the Kool Smiles clinics will pay the United States and participating states a total of $23.9 million, plus interest, to resolve allegations that they knowingly submitted false claims for payment to state Medicaid programs for medically unnecessary dental services performed on children insured by Medicaid.
“Billing Medicaid programs for dental procedures that are not necessary contributes to the soaring costs of healthcare,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When healthcare providers put vulnerable patients at risk by performing medically unnecessary procedures to achieve financial goals, we will take action.”
The United States alleged that between January 2009 and December 2011, Benevis and Kool Smiles clinics located throughout 17 states knowingly submitted false claims to state Medicaid programs for medically unnecessary pulpotomies (baby root canals), tooth extractions, and stainless steel crowns, in addition to seeking payment for pulpotomies that were never performed. The United States alleges that Kool Smiles clinics routinely pressured and incentivized dentists to meet production goals through a system that disciplined “unproductive” dentists and awarded “productive” dentists with substantial cash bonuses based on the revenue generated by the procedures they performed. According to the government’s allegations, Kool Smiles clinics ignored complaints from their own dentists regarding overutilization. In addition, the United States further alleged that Kool Smiles clinics located in Texas knowingly submitted false claims to the Texas Medicaid Program for First Dental Home (FDH), a program intended to provide a comprehensive package of dental services aimed at improving the oral health of children under three years of age. These clinics are alleged to have submitted false claims for FDH services that were not fully provided.
Of the $23.9 million to be paid by Benevis and its affiliated Kool Smiles clinics, the federal government will receive a total of $14,244,073.49, plus interest, and a total of $9,655,926.51, plus interest, will be returned to individual states, which jointly funded improper claims submitted to state Medicaid programs.
“The allegations in these cases are particularly egregious because they involved medically unnecessary dental services performed on children,” said U.S. Attorney John H. Durham for the District of Connecticut. “Exploiting needy children for financial gain is inexcusable. The U.S. Attorney’s Office in Connecticut is committed to aggressively pursuing health care providers that submit fraudulent claims to government health care programs.”
The government’s investigation was initiated by five lawsuits filed under the whistleblower provision of the False Claims Act, which permits private citizens to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. These cases are currently pending in the District of Connecticut and the Western District of Texas. As part of today’s resolution, three of the whistleblowers—former Kool Smiles employees Adam Abendano, Poonam Rai, and Robin Fitzgerald—will receive payments totaling more than $2.4 million from the federal share of the settlement.
“When providers accept federal funds for reimbursement, they have a duty and responsibility to provide the best care possible to the patient, especially when their patients are economically disadvantaged children,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “The United States Attorney’s Office for the Southern District of Texas will aggressively prosecute healthcare providers who fail to provide care as required when it adversely affects the taxpayers.”
“The conduct of Kool Smiles reached across state lines to impact many patients, many of them vulnerable children,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “I want to thank our law enforcement partners for their tireless effort and dedication in bringing about this nationwide resolution.”
“Today’s settlement sends a very clear signal: Fraud in the federal healthcare system will not be tolerated,” said U.S. Attorney John F. Bash for the Western District of Texas. “Especially when that fraud involves performing unnecessary procedures on kids—here, unnecessary baby root canals and tooth extractions, among other procedures—we will not hesitate to use every tool at our disposal to punish those who break the law.”
“It is intolerable when health care companies seek to boost profits by defrauding Medicaid and exploiting children," said Special Agent in Charge Phillip M. Coyne, HHS-OIG. "Systematically performing and billing for medically unnecessary dental procedures undermines the well-being of these young patients, corrupts the impartiality of medical decision-making, and diverts money from taxpayer-funded health care programs designed to pay for legitimate medical needs.”
The settlement with Benevis and its affiliated Kool Smiles clinics was the result of a collaborative effort among federal and state agencies. The Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the District of Connecticut, Southern District of Texas, Eastern District of Virginia, and Western District of Texas handled the cases, with substantial assistance from the National Association of Medicaid Fraud Control Units (NAMFCU). The Civil Division and NAMFCU coordinated the nationwide investigation, which was conducted by the Office of Inspector General for the Department of Health and Human Services, the Department of Defense Criminal Investigative Service, and NAMFCU.
The cases are captioned United States, et al., ex rel. Abendano v. NCDR, LLC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Greenwald v. Kool Smiles Dentistry PC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Rai, et al. v. Kool Smiles Dentistry PC, et al., 3:17-cv-834 (JBA) (D. Conn.); United States, et al., ex rel. Bowne v. KS-VAP, PC, et al., 3:16-cv-369 (JBA) (D. Conn.); and United States, et al., ex rel. Alves, et al. v. NCDR, LLC, et al., SA-13-CV-0760H (W.D. Tex.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
New York Man Pleads Guilty to Marijuana Trafficking ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that GUSTAVO GARCIA, 29, of Queens, New York, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of conspiracy to possess with intent to distribute marijuana.
According to court documents and statements made in court, in June and July 2017, GARCIA delivered between approximately 120 to 130 pounds of marijuana to William Reyes in Stamford, including approximately 40 pounds of marijuana that GARCIA sold to Reyes for approximately $80,000 and delivered in July.
GARCIA was arrested on October 3, 2017. On that date, a search of GARCIA’s residence revealed approximately two pounds of marijuana, narcotics paraphernalia, $93,560 in cash, and approximately $100,000 in jewelry that was purchased with marijuana trafficking proceeds.
Reyes was arrested on July 26, 2017. On that date, investigators conducted court-authorized searches of Reyes’ Stamford residence and a residence in Lagrangeville, N.Y., that Reyes and another individual used to grow, process and distribute marijuana. A search of the Stamford residence revealed approximately 18 kilograms of marijuana, paraphernalia associated with narcotics distribution, and $71,004 in cash, and a search of the Lagrangeville residence revealed 140 marijuana plants and related equipment.
Judge Arterton scheduled sentencing for April 4, 2018, at which time GARCIA faces a maximum term of imprisonment of five years. GARCIA also has agreed to forfeit the cash and jewelry that investigators seized at the time of his arrest.
GARCIA is released on a $250,000 bond pending sentencing.
Reyes pleaded guilty to the same charge on January 5 and awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration, Stamford Police Department and New York State Police. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Sarala V. Nagala.
Former East Hartford Resident Sentenced to More Than 6 Years in Prison for Robbing USPS EmployeeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DION EDWARD THOMPSON, 40, formerly of East Hartford, and Colorado Springs, Colorado, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 78 months of imprisonment, followed by three years of supervised release, for robbing a U.S. Postal Service employee in Hartford in September 2014.
According to court documents and statements made in court, on September 9, 2014, THOMPSON, and another man who was armed with what appeared to be a firearm, robbed a U.S. Postal Service employee of U.S. Postal Service funds at the Barry Square Post Office, located at 645 Maple Avenue in Hartford. The robbery occurred as the employee was loading the Post Office’s daily proceeds into a postal vehicle, which was parked at the loading dock. Approximately $21,817 in cash, checks and money orders was stolen during the robbery.
On January 17, 2017, THOMPSON pleaded guilty to one count of robbery of a U.S. Postal Service employee.
THOMPSON’s criminal history includes numerous convictions.
This investigation has been conducted by the U.S. Postal Inspection Service with the assistance of the Hartford Police Department and the Colorado Springs Police Department. The case was prosecuted by Assistant U.S. Attorneys Deborah R. Slater and Douglas P. Morabito.
Essex Man Admits to Using Dark Web to Buy and Sell DrugsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Shelly A. Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that PETER CEPLENSKI, 47, of Essex, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court to using the dark web to acquire and distribute various controlled substances.
According to court documents and statements made in court, an investigation headed by the U.S. Postal Inspection Service and Drug Enforcement Administration revealed that CEPLENSKI used the dark web to buy and sell various drugs. On September 6, 2017, investigators searched a package containing approximately 1,000 alprazolam (Xanax) tablets that was being mailed to CEPLENSKI. On September 7, CEPLENSKI was arrested on a federal criminal complaint after investigators delivered the package to his residence. On that date, a search of the residence revealed approximately 500 tablets that CEPLENSKI believed contained fentanyl, and a second package containing approximately 1,000 alprazolam tablets.
CEPLENSKI admitted that he had shipped a quantity of fentanyl powder to another individual who had the ability to manufacture pills, and who then shipped fentanyl pills back to CEPLENSKI. The seized pills that CEPLENSKI believed contained fentanyl actually contained no controlled substances.
After CEPLENSKI’s arrest, law enforcement officers seized two additional packages as part of the investigation. One package contained what CEPLENSKI believed were amphetamine pills but were, in fact, pills that contained methamphetamine. The second package, which had been mailed from Pakistan, contained what appeared to be 61 oxycodone tablets. A lab test of the pills confirmed that they contained heroin, not oxycodone.
CEPLENSKI pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, oxycodone, methamphetamine, fentanyl and alprazolam, an offense that carries a maximum term of imprisonment of 20 years. He also has agreed to forfeit $40,642.25, and multiple laptops, iPads and iPhones that were seized from his at the time of his arrest.
CEPLENSKI is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on April 4, 2018. He is released on bond pending sentencing.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Stamford Man Pleads Guilty to Marijuana Trafficking OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIAM REYES, also known as “Big Head,” 36, of Stamford, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of conspiracy to possess with intent to distribute marijuana.
According to court documents and statements made in court, in the summer of 2017, REYES and John Koukouras utilized a residence located at 40 Guernsey Hill Road in Lagrangeville, New York, to grow, process and distribute marijuana. The investigation revealed that REYES was also being supplied by an individual in New York City with large quantities of marijuana. In July 2017, the marijuana supplier delivered approximately 40 pounds of marijuana to REYES in exchange for approximately $80,000.
REYES was arrested on July 26, 2017. On that date, investigators conducted court-authorized searches of REYES’ Stamford residence and the Lagrangeville residence. A search of the Stamford residence revealed approximately 18 kilograms of marijuana, paraphernalia associated with narcotics distribution, and $71,004 in cash, and a search of the Lagrangeville residence revealed 140 marijuana plants and related equipment.
Judge Arterton scheduled sentencing for March 30, 2018, at which time REYES faces a maximum term of imprisonment of five years. REYES also has agreed to forfeit his interest in both the $71,004 in cash seized from his residence, and a 2012 Toyota Camry.
REYES has been detained since his arrest.
Koukouras, of Eugene, Oregon, pleaded guilty to the same charge on November 15, 2017, and awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration, Stamford Police Department and New York State Police. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Sarala V. Nagala.
Shelton Attorney Pleads Guilty to Child Exploitation OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PETER G. KRUZYNSKI, 51, of Shelton, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of enticement of a minor to engage in sexual activity.
According to court documents and statements made in court, KRUZYNSKI used his mobile phone and text messaging to entice a male victim, who was under the age of 16, to engage in sexual activity. Specifically, KRUZYNSKI sent text messages to the victim asking him to come to KRUZYNSKI’s home, where KRUZYNSKI then engaged in sexual activity with the victim. In addition, on one occasion in December 2014, KRUZYNSKI used his phone to take photographs of the victim engaged in sexually explicit conduct. The victim was under the age of 18, and therefore a minor under federal law, at the time the photographs were taken.
Judge Meyer scheduled sentencing for March 28, 2018, at which time KRUZYNSKI faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
KRUZYNSKI was arrested on a federal criminal complaint on September 16, 2016. He has been in custody since October 24, 2016, when his bond was revoked for failing to comply with his release conditions.
KRUZYNSKI is also charged with related state offenses.
KRUZYNSKI is an attorney who had a law practice in Shelton. On December 15, 2016, he was suspended from the practice of law on an interim basis following his arrest in this case.
This matter is being investigated by the Federal Bureau of Investigation and the Shelton 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.
Nigerian National Admits Role in Business E-Mail Compromise SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ADEYEMI ODUFUYE, also known as “Micky,” “Micky Bricks,” “Yemi,” “GMB,” “Bawz,” and “Jefe,” 31, a citizen of Nigeria, pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to fraud and identity theft offenses stemming from a business e-mail compromise scheme.
According to court documents and statements made in court, the FBI has been investigating a business compromise scheme in which ODUFUYE and others targeted CEOs, CFOs, controllers and others at U.S. businesses using sophisticated cyber techniques to defraud the businesses of millions of dollars. As part of this scheme, in late 2015, ODUFUYE and others sent or caused to be sent dozens of e-mails to the controller of a company in Torrington, Connecticut. In the e-mails, ODUFUYE posed at the real CEO of the victim company and instructed the controller to send multiple wire transfers exceeding a total of $1 million from the company’s accounts to various individuals and purported entities. The company then sent five wire transfers totaling more than $500,000 to accounts in Virginia, Florida, Washington, D.C., and Hong Kong.
The investigation revealed that ODUFUYE and others controlled multiple e-mail and social media accounts used in the scheme and, in certain instances, sent e-mails and attachments containing malware to the intended recipients.
The investigation further revealed that ODUFUYE and others also targeted a company headquartered in Waterbury, Connecticut, as part of this scheme.
To date, the FBI has identified 36 wire confirmations in e-mail accounts utilized by ODUFUYE and others from September 2015 to May 2016, totaling more than $1.6 million. This figure does not include the more than $500,000 in wire transfers from the victim company in Connecticut.
ODUFUYE pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of aggravated identity theft, which carries a mandatory consecutive term of imprisonment of at least two years. Chief Judge Hall scheduled sentencing for March 28, 2018.
On December 19, 2016, ODUFUYE was arrested in the United Kingdom where he was a student at Sheffield Hallam University in Sheffield, England. He was extradited from the U.K. to the U.S. and is detained.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Cyber Task Force. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
U.S. Attorney Durham thanked the Department of Justice’s Office of International Affairs, the United Kingdom’s National Crime Agency, and the United Kingdom’s Metropolitan Police for their assistance in this case.
To contact the Connecticut Cyber Task Force, please call the FBI in New Haven at 203-777-6311.
Massachusetts Man Sentenced to Prison for Role in Heroin Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JULIO FLORES, 39, of Webster, Mass., was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 18 months of imprisonment, followed by four years of supervised release, for his role in a heroin trafficking ring.
According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad targeted a New Haven-based heroin trafficking organization. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, revealed that members of the organization regularly purchased bulk quantities of heroin from suppliers located in the Bronx, New York, and sold the heroin through a network of redistributors, including FLORES, in New Haven and elsewhere. FLORES distributed heroin in Massachusetts.
The investigation resulted in federal charges against 24 individuals.
FLORES was arrested on March 16, 2017. On that date, investigators seized $18,180 from a safe that he controlled.
On October 11, 2017, FLORES pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin.
The DEA’s New Haven Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments. The New Haven, East Haven and West Haven Police Departments, together with the U.S. Coast Guard, provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Patrick F. Caruso.
Bridgeport Man Pleads Guilty to Distributing Heroin and Fentanyl to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that PERRY DESHAZO, also known as “Hov” and “Amafia Hov,” 27, of Bridgeport, pleaded guilty yesterday before U.S. District Judge Jeffery A. Meyer in New Haven to one count of 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 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.
Judge Meyer scheduled sentencing for March 27, 2018, at which time DESHAZO faces a maximum term of imprisonment of 20 years.
DESHAZO has been detained since his arrest on July 17, 2017.
This matter is being investigated by the DEA New Haven Task Force and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis and Peter Markle.
Waterbury Man Charged with Middlebury Armed RobberiesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ZACHARY PROVOST, 32, of Waterbury, has been charged by federal criminal complaint with committing two armed robberies in Middlebury last month.
PROVOST has been detained since his arrest on state charges on December 9, 2017. He appeared today before U.S. Magistrate Judge Joan G. Margolis in New Haven and was ordered detained.
As alleged in the criminal complaint, at approximately 10:00 a.m. on December 8, 2017, PROVOST robbed the Mobil gas station, located at 750 Straits Turnpike in Middlebury, and the Dunkin’ Donuts located inside the Mobil gas station. PROVOST first robbed the Mobil by pointing what appeared to be firearm at the cashier and ordering the cashier to give him the contents of the cash register. The cashier unlocked the cash register and PROVOST took approximately $578 in cash from the register. PROVOST also demanded and received cigarettes valued at approximately $131, from the cashier. PROVOST then walked to the Dunkin’ Donuts counter, displayed a handgun to the cashier and took approximately $350 in cash from the cash register.
It is further alleged that law enforcement identified PROVOST from surveillance images, and that PROVOST is also a suspect in multiple bank robberies.
On December 9, 2017, PROVOST was arrested by Waterbury Police officers after they responded to a call of an overdose of a woman at a motel in Waterbury. Officers were able to revive the overdose victim, who had been staying in the same room as PROVOST.
The complaint charges PROVOST with Hobbs Act Robbery, an offense that carries a maximum term of imprisonment of 20 years.
This ongoing investigation is being conducted by the Federal Bureau of Investigation, the Waterbury Police Department and other state and local law enforcement agencies. This case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
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.
Uzbek National Living in New Britain Charged with Immigration OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, announced that SIDIKJON MAMADJONOV, 31, a citizen of Uzbekistan residing in New Britain, was arrested today on a criminal complaint charging him with immigration offenses.
MAMADJONOV appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.
As alleged in court documents, MAMADJONOV immigrated to the U.S. in February 2009 and became a lawful permanent resident in September 2010. On September 8, 2014, MAMADJONOV submitted to U.S. Citizenship and Immigration Services an Application for Naturalization, Form N-400.
It is alleged that, on November 20, 2017, in an interview with the FBI, MAMADJONOV stated that on a trip to Turkey in May 2013, he was informed that his brother Saidjon had died in May or June 2013 while fighting in Syria with the “Nusra” group, which was affiliated with ISIS. When MAMADJONOV returned from Turkey, he received a FedEx package that contained what he believed to be Saidjon’s iPhone. The iPhone contained several videos and photographs depicting Saidjon in Syria. MAMADJONOV recalled a video in which Saidjon stated, “Join us brother, we are here.” Also contained on the phone were photographs of Saidjon cleaning weapons in military dress while armed with a weapon, as well as a photograph of Saidjon’s dead body and his bloodied face.
The complaint alleges that in FBI interviews on May 14 and May 29, 2014, and on November 28, 2014, MAMADJONOV responded to questions about the trip he took to Turkey in May 2013, and questions about his brother, Saidjon Mamadjonov. During all three interviews, MAMADJONOV stated that Saidjon Mamadjonov was still alive when he knew he was dead.
It is further alleged that in an FBI interview on August 17, 2016, MAMADJONOV stated that he did not know the whereabouts of Saidjon, had not overheard any discussions of Uzbeks in the U.S. going over to Syria to fight, and was not aware of any Uzbeks travelling to Syria.
It is alleged that in response to Part 11, Question 10 of the Form N-400 MAMADJONOV submitted in September 2014, “Have you ever been a member of, or in any way associated (either directly or indirectly) with: C. A terrorist organization?” MAMADJONOV responded “No.” Also, in response to Part 11, Question 31 of Form N-400, “Have you ever given any Government official information that was materially false, fraudulent or misleading?” MAMADJONOV responded “No.” MAMADJONOV signed the form below the statement “I certify, under penalty of perjury under the laws of the United States of America, that this application, and the evidence submitted with it, are all true and correct.”
It is further alleged that, on October 27, 2016, in an interview with a U.S. Citizenship and Immigration Services officer regarding his Form N-400, MAMADJONOV again provided false statements and concealed information about his association with a member of a known terrorist organization. At the conclusion of the interview, he swore an oath under penalty of perjury that his responses were true.
The complaint charges MAMADJONOV with the unlawful procurement of naturalization, and making a false oath or declaration under penalty of perjury, offenses that carry a maximum term of imprisonment of 10 years. The complaint also charges MAMADJONOV with making false statements on a naturalization application, an offense that 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’s Joint Terrorism Task Force, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation Division, U.S. Citizenship and Immigration Services, New Britain Police Department and Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito, with the assistance of the National Security Division’s Counterterrorism Section.
Stratford Tax Preparer Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that JUAN SILVA, 37, of Stratford, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to preparing false federal income tax returns.
According to court documents and statements made in court, SILVA operated Oficina Hispana, a multi-service business that included tax return preparation. Between approximately 2011 and 2017, SILVA falsified itemized deductions and unreimbursed employee business expenses on numerous returns that he prepared for clients. In addition, for the 2011, 2012 and 2013 tax years, SILVA made substantial deposits of business receipts from his tax preparation business into his personal bank accounts, and failed to report to the IRS a total of more than $306,000 in income.
SILVA pleaded guilty to one count of aiding and assisting the filing of a false tax return. At sentencing, he faces a maximum term of imprisonment of three years, a fine of up to approximately $300,000, and restitution of $143,693. A sentencing date is not scheduled.
The IRS is taking action to recover unpaid taxes from SILVA’s clients.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Lawful Permanent Resident from Uzbekistan Charged with Immigration OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, announced that SIDIKJON MAMADJONOV, 31, a citizen of Uzbekistan residing in New Britain, was arrested today on a criminal complaint charging him with immigration offenses.
MAMADJONOV appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.
As alleged in court documents, MAMADJONOV was admitted to the U.S. in February 2009 and became a lawful permanent resident in September 2010. On September 8, 2014, MAMADJONOV submitted to U.S. Citizenship and Immigration Services an Application for Naturalization, Form N-400.
The complaint alleged that, on November 20, 2017, in an interview with the FBI, MAMADJONOV stated that on a trip to Turkey in May 2013, he was informed that his brother Saidjon had died in May or June 2013 while fighting in Syria with the “Nusra” group, which was affiliated with ISIS. When MAMADJONOV returned from Turkey, he received a FedEx package that contained what he believed to be Saidjon’s iPhone. The iPhone contained several videos and photographs depicting Saidjon in Syria. MAMADJONOV recalled a video in which Saidjon stated, “Join us brother, we are here.” Also contained on the phone were photographs of Saidjon cleaning weapons in military dress while armed with a weapon, as well as a photograph of Saidjon’s dead body and his bloodied face.
The complaint alleges that in FBI interviews on May 14 and May 29, 2014, and on November 28, 2014, MAMADJONOV responded to questions about the trip he took to Turkey in May 2013, and questions about his brother, Saidjon Mamadjonov. During all three interviews, MAMADJONOV stated that Saidjon Mamadjonov was still alive when he knew he was dead.
The complaint further alleged that in an FBI interview on August 17, 2016, MAMADJONOV stated that he did not know the whereabouts of Saidjon, had not overheard any discussions of Uzbeks in the U.S. going over to Syria to fight, and was not aware of any Uzbeks travelling to Syria.
The complaint alleged that in response to Part 11, Question 10 of the Form N-400 MAMADJONOV submitted in September 2014, “Have you ever been a member of, or in any way associated (either directly or indirectly) with: C. A terrorist organization?” MAMADJONOV responded “No.” Also, in response to Part 11, Question 31 of Form N-400, “Have you ever given any Government official information that was materially false, fraudulent or misleading?” MAMADJONOV responded “No.” MAMADJONOV signed the form below the statement “I certify, under penalty of perjury under the laws of the United States of America, that this application, and the evidence submitted with it, are all true and correct.”
The complaint further alleged that, on October 27, 2016, in an interview with a U.S. Citizenship and Immigration Services officer regarding his Form N-400, MAMADJONOV again provided false statements and concealed information about his association with a member of a known terrorist organization. At the conclusion of the interview, he swore an oath under penalty of perjury that his responses were true.
The complaint charges MAMADJONOV with the unlawful procurement of naturalization, and making a false oath or declaration under penalty of perjury, offenses that carry a maximum term of imprisonment of 10 years. The complaint also charges MAMADJONOV with making false statements on a naturalization application, an offense that 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’s Joint Terrorism Task Force, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation Division, U.S. Citizenship and Immigration Services, New Britain Police Department and Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito, with the assistance of the National Security Division’s Counterterrorism Section.
Killingly Man Who Provided Firearm to Convicted Felon is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALBERT BONNER, 31, of Killingly, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to eight months of imprisonment, followed by two years of supervised release, for providing a firearm to a convicted felon.
According to court documents and statements made in court, on January 4, 2017, law enforcement officers removed a loaded Beretta 9mm Nano handgun and an improvised explosive device from the Killingly home of Blain Kollbeck The handgun had an obliterated serial number, and was repainted orange. The investigation revealed that BONNER was the registered owner of the gun, and that BONNER provided the gun to Kollbeck, who BONNER knew was a convicted felon.
On July 31, 2017, BONNER pleaded guilty to one count of providing a firearm to a convicted felon.
Kollbeck, 33, was arrested on a federal criminal complaint on January 10, 2017. On December 18, he pleaded guilty to one count of possession of a firearm by a previously convicted felon. He is released on $100,000 bond pending sentencing, which is scheduled for March 12, 2018.
This matter has been investigated by the Connecticut State Police and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Citizen of Mexico Pleads Guilty to Heroin Trafficking OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE DAVID SILVA PESTANO, 33, a citizen of Mexico, pleaded guilty today before U.S. District Judge Vanessa L. Bryant in Hartford to heroin trafficking charges.
According to court documents, SILVA PESTANO and others conspired to traffic multi-kilogram quantities of heroin from Mexico to the Bridgeport, Connecticut area. On multiple occasions between approximately April 2015 and March 2017, SILVA PESTANO personally transported more than 30 kilograms of heroin into Connecticut.
On February 14, 2017, SILVA PESTANO was arrested in Nogales, Arizona, after he crossed the border on a motorcycle carrying 11.94 kilograms of heroin in a concealed compartment.
On March 16, 2017, a grand jury in Hartford returned an indictment charging SILVA PESTANO and six other individuals with conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, and related offenses. SILVA PESTANO also was charged in the District of Arizona with possession with intent to distribute one kilogram or more of heroin. The Arizona case was transferred to the District of Connecticut for further prosecution.
SILVA PESTANO pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, and one count of possession with intent to distribute one kilogram of heroin.
Judge Bryant scheduled sentencing for March 22, 2018, at which time SILVA PESTANO faces a mandatory minimum term of imprisonment of 10 years maximum term of imprisonment of life.
SILVA PESTANO has been detained since his arrest.
This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, and Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Alina Reynolds.
Investigation of 3 Overdoses Leads to Heroin Distribution Charges against Waterbury ManRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that ANDRE REED, 25, of Waterbury, was arrested today on a criminal complaint charging him with heroin distribution offenses.
REED appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.
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 March 1, 2016, at approximately 11:39 p.m., Danbury Police responded to a service station on the report of a woman in medical distress in a restroom. At the location, officers observed the victim on her knees, with her face on the floor, taking a deep gasping breath every 20 seconds. The victim also was holding a syringe. The victim was transported to the hospital, where she was placed on life support. She has since recovered from the overdose.
It is alleged that REED supplied heroin to another individual who then sold it to the victim.
On December 29, 2016, at approximately 6:53 a.m., Torrington Police and emergency personnel responded to a Torrington residence on the report of an unresponsive female at the residence. Efforts to resuscitate the victim, who was 29, were not successful. Investigators seized drug and non-drug evidence indicating that the death was an opioid overdose. Investigators also seized the victim’s cell phone.
On December 29, 2016, at approximately 8:28 a.m., Torrington Police and paramedics responded to another Torrington residence on the report of an unresponsive female. The victim, who was 21, was pronounced deceased at the scene. Investigators seized drug and non-drug evidence, including multiple empty “folds,” which are commonly used to package heroin. Investigators also seized the victim’s cell phone.
As alleged in the complaint, analysis of the cell phones seized from the two Torrington overdose victims revealed that the 21-year-old victim contacted REED to purchase heroin on December 28, 2016. Minutes later, the 21-year-old victim sent a text message to the 29-year-old victim that said “I already called my dude he’s around.”
The complaint charges REED with possession with intent to distribute and distribution of heroin, and conspiracy to distribute heroin. Both offenses carry 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 Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Torrington, Danbury and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Hartford Woman Sentenced to 2 Years in Prison for Role in Heroin Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ZULEYMA CRUZ, 29, of Hartford, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 24 months of imprisonment, followed by three years of supervised release, for her role in a heroin trafficking operation.
According to court documents and statements made in court, this matter stems from a Drug Enforcement Administration Hartford Task Force investigation into a drug trafficking organization that distributed large quantities of heroin in the Hartford area. The investigation revealed that CRUZ allowed members of the organization to store heroin, cocaine, drug packaging materials and cash at her Wayland Street apartment, and allowed her apartment to be used to process and package narcotics for street sale.
CRUZ and several co-conspirators were arrested on June 4, 2015. On that date, a search of CRUZ’s apartment revealed a bag of cocaine, approximately 400 bags of heroin, a heroin stamp, six boxes containing hundreds of stamped bags for packaging heroin, and other items used to process and package heroin for street sale.
On February 17, 2017, CRUZ pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin.
CRUZ is currently incarcerated in state custody. In September 2015, she was sentenced in Manchester Superior Court to a total effective sentence of seven and one-half years of incarceration on convictions for manslaughter with a motor vehicle and assault with a motor vehicle.
Judge Bryant ordered CRUZ to begin serving the 24-month federal sentence when she is released from state custody.
Six other individuals were charged as a result of this investigation.
This matter has been investigated by the Drug Enforcement Administration’s Hartford Task Force with the assistance of the Connecticut State Police. The DEA Task Force includes participants from the Bristol, East Hartford, Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Willimantic and Windsor Locks Police Departments, and the Food and Drug Administration. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Glastonbury Man Charged with Child Exploitation OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford returned an indictment yesterday charging JAMES RIPBERGER, 62, of Glastonbury, with one count of receipt of child pornography.
As alleged in court documents and statements made in court, on October 12, 2017, law enforcement officers conducted a search of RIPBERGER’s Glastonbury residence and seized computers and electronic storage devices. Preliminary analysis of the seized items revealed more than 125 images and videos of child pornography.
If convicted of receipt of child pornography, RIPBERGER faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
RIPBERGER has been in federal custody since December 15, 2017, when he was arrested on a federal criminal complaint.
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 ongoing investigation is being conducted by Homeland Security Investigations, the Glastonbury Police Department and the Connecticut Center for Digital Investigations. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Danbury Man Pleads Guilty to Heroin Distribution Charge Stemming from Overdose DeathRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE GREGORY CHARON, also known as “Yoshi,” 31, of Danbury, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of distribution of heroin.
This prosecution is part of 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 9, 2017, the Danbury Police Department responded to Danbury residence on a report of an untimely death of a woman. Investigators collected from the scene three cellphones, a bottle of methadone and an empty glassine bag marked with a particular brand stamp. Testing of the contents of the bag confirmed that it contained heroin.
The Office of the Chief Medical Examiner determined that the victim died on April 8, 2017, as a result of a methadone and benzodiazepine (Xanax) overdose.
In May 2017, investigators made two controlled purchases of heroin from CHARON. Several of the bags of heroin purchased on both occasions were marked with the same brand stamp that was on the empty bag found in the overdose victim’s residence.
CHARON was arrested on a federal criminal complaint on September 12.
The charge of distribution of heroin carries a maximum term of imprisonment of 20 years. CHARON is scheduled to be sentenced by U.S. District Judge Michael P. Shea on March 12, 2018.
This matter has been investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, the Danbury Police Department and the Darien Police Department. The Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk and Milford Police Departments, and the Connecticut State Police. This case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and David C. Nelson.
Citizen of Guatemala Pleads Guilty to Reentering U.S. after Being Deported for Sex Assault ConvictionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIMAS ESCOBAR, 41, a citizen of Guatemala last residing in New Britain, pleaded guilty today in New Haven federal court to one count of reentry of a removed alien.
According to court documents and statements made in court, ESCOBAR was admitted to the U.S. as a lawful permanent resident in November 2004.
In October 2011, ESCOBAR was convicted in Bristol Superior Court of sexual assault in the second degree and was sentenced to eight years of incarceration, execution suspended after 18 months, and 10 years of probation. He also was subject to mandatory sex offender registration.
In May 2013, ESCOBAR was deported from the U.S. to Guatemala.
On June 7, 2017, Plainville Police alerted ICE to ESCOBAR’s presence in the U.S. On June 14, ICE officers arrested ESCOBAR following a traffic stop in New Britain.
ESCOBAR has been detained since his arrest. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on March 15, 2018, at which time he faces a maximum term of imprisonment of 20 years.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Stratford Man Sentenced to 30 Months in Prison for Distributing Heroin Involved in Overdose DeathRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAYMOND J. GORDON, also known as “X-RAY,” 30, of Stratford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 30 months of imprisonment, followed by five years of supervised release, for distributing heroin involved in an overdose death last year.
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 10, 2016, Stratford Police and emergency medical personnel responded to a Stratford residence after receiving a report of an unresponsive 22-year-old female. The female, who was in her bedroom, was pronounced deceased. Responding officers collected wax folds containing suspected heroin, a hypodermic needle and other drug paraphernalia from the bedroom. Investigators also seized the victim’s cellphone. The investigation revealed that the victim purchased heroin from GORDON shortly before she died.
GORDON has been detained since his arrest on May 16, 2017. On August 29, he pleaded guilty to one count of distribution of heroin.
This matter was investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Stratford Police Department. The task force includes personnel from the Bridgeport, Milford, Norwalk, Stamford and Stratford Police Departments, and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Shelton Man Pleads Guilty to Defrauding Owner of Stamford Ice Skating RinkRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MARK J. ZITO, 55, of Shelton, waived his right to be indicted and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of wire fraud.
According to court documents and statements made in court, from October 1999 to August 2014, ZITO was the general manager of Stamford Twin Rinks, an ice skating facility in Stamford. The facility is owned and operated by RivCan Associates, LLC (“RivCan”). ZITO was responsible for managing and overseeing the ice skating facility’s operations, and he had a written contract with RivCan in which he would be paid commissions for securing agreements from third party vendors to place advertising at the ice skating facility. ZITO created and utilized AAZ Consulting, an unincorporated entity controlled by him, to bill RivCan for these commissions.
During his employment, ZITO submitted to RivCan numerous fraudulent invoices, primarily for services that RivCan neither requested nor authorized, or for commissions that were either fraudulent or grossly inflated. As general manager, ZITO approved the payment of these invoices and directed his subordinates to issue him checks payable to AAZ Consulting.
The total loss from ZITO’s illegal conduct is $490,468.81, which also includes funds he received by claiming payments for purportedly maintaining and updating the skating rink facility’s internet website, and through unauthorized benefits in the form of excess salary payments, excess vacation pay, and cellular telephone reimbursements.
Chief Judge Hall scheduled sentencing for March 19, 2018, at which time ZITO faces a maximum term of imprisonment of 20 years. ZITO is released on bond pending sentencing.
This matter has been investigated by the U.S. Secret Service, Stamford Police Department, Connecticut State Police, and Connecticut Financial Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Plainfield Man Pleads Guilty to Producing Child PornographyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RYAN STONE, 30, of Plainfield, pleaded guilty today in Hartford federal court to one count of production of child pornography.
According to court documents and statements made in court, between March 30 and April 1, 2017, STONE took sexually explicit photographs and video of a six-year-old girl.
STONE is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on March 21, 2018, at which time he faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years.
STONE has been in state custody since April 19 when he was arrested for criminal trespass in the first degree and criminal violation of a restraining order.
This matter is being investigated by Homeland Security Investigations and the Plainfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Nigerian Nationals Charged with Operating Business Compromise SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that two Nigerian nationals have been charged with various federal offenses stemming from a business e-mail compromise scheme.
OLUMUYIWA YAHTRIP ADEJUMO, also known as “Ade,” “Slimwaco,” “Waco,” “Waco Jamon,” “Hade” and “Hadey,” 32, was arrested on a federal criminal complaint on November 16, 2017, in Toledo, Ohio, where he was living as a lawful permanent resident of the U.S. The complaint charges ADEJUMO with conspiracy to commit wire fraud, and wire fraud. ADEJUMO, who has been detained since his arrest, made his initial appearance in the District of Connecticut today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven.
ADEYEMI ODUFUYE, also known as “Micky,” “Micky Bricks,” “Yemi,” “GMB,” “Bawz,” and “Jefe,” 31, was arrested in the United Kingdom on December 19, 2016. ODUFUYE had been residing in Sheffield, England, where he was a student at Sheffield Hallam University. On December 20, 2016, a federal grand jury in New Haven returned a seven-count indictment charging ODUFUYE and another individual with one count of conspiracy, five counts of wire fraud, and one count of aggravated identity theft. ODUFUYE was extradited from the U.K. to the U.S. and is detained while awaiting trial. The other individual in the indictment has not been apprehended, and his identity has not been publicly revealed.
As alleged in court documents, the FBI has been investigating a business compromise scheme in which ADEJUMO, ODUFUYE and others targeted CEOs, CFOs, controllers and others at U.S. businesses using sophisticated cyber techniques to defraud the businesses of millions of dollars. As part of this scheme, in late 2015, ADEJUMO, ODUFUYE and others sent or caused to be sent dozens of e-mails to the controller of a company in Torrington, Connecticut. In the e-mails, ODUFUYE posed at the real CEO of the victim company and instructed the controller to send multiple wire transfers exceeding a total of $1 million from the company’s accounts to various individuals and purported entities. Because of these fraudulent emails, the company sent five wire transfers totaling more than $500,000 to accounts in Virginia, Florida, Washington, D.C., and Hong Kong. The investigation has revealed that ADEJUMO and ODUFUYE controlled multiple e-mail and social media accounts used in the scheme.
It is further alleged that the co-conspirators sent e-mails and attachments containing malware to the intended recipients.
It is alleged that ODUFUYE and others also targeted a company headquartered in Waterbury, Connecticut, as part of this scheme.
To date, the FBI has identified 36 wire confirmations in e-mail accounts utilized by the alleged co-conspirators from September 2015 to May 2016, totaling more than $1.6 million. This figure does not include the more than $500,000 in wire transfers from the victim company in Connecticut.
Each charge of wire fraud and conspiracy to commit wire fraud carries a maximum term of imprisonment of 20 years. Aggravated identity theft 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 the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Cyber Task Force. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
U.S. Attorney Durham thanked the Department of Justice’s Office of International Affairs, the United Kingdom’s National Crime Agency, and the United Kingdom’s Metropolitan Police for their assistance in this case.
To contact the Connecticut Cyber Task Force, please call the FBI in New Haven at 203-777-6311.
Hartford Man Charged with Robbery and Firearm OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on November 30, 2017, a federal grand jury in Hartford returned a six-count indictment charging ISAIAH HALLIDAY, 18, of Hartford, with robbery and firearm offenses stemming from a scheme that victimized several individuals who sought to purchase items over mobile classifieds web apps.
HALLIDAY has been detained since his arrest on November 17. He appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven, entered a plea of not guilty to the charges, and was ordered detained.
According to court documents and statements made in court, between September and November 2017, more than a dozen robberies have occurred in Hartford during which individuals lured would-be customers with real or nonexistent items posted to mobile classifieds web apps, such as Offer Up, Letgo and Craigslist, through the use of a fake account. Upon arrival, the customers were robbed of money and cell phones. In all of the robberies, assailants brandished what victims described to be a firearm.
It is alleged that on November 11, 2017, Hartford Police officers responded to a location on Blue Hills Avenue in response to a report of a male suffering from a gunshot wound. Upon arrival, the victim stated that he had traveled to Mansfield Street in Hartford to meet with an individual he contacted on Offer Up to purchase an iPhone. When he arrived, an individual, who was subsequently identified as HALLIDAY, approached the front passenger door of his vehicle and pointed a black handgun at him. After the victim attempted to drive away, HALLIDAY fired one round at him, striking him in the right forearm.
The indictment charges HALLIDAY with two counts of interference with commerce by robbery, for robberies that occurred on September 19 and October 16; one count of attempt to interfere with commerce by robbery and one count of use of a firearm in relation to a crime of violence, for the robbery that occurred on November 11 describe above; one count of attempt to interfere with commerce by robbery for another attempted robbery on November 11, and one count of attempt to interfere with commerce by robbery on November 17.
Each of the robbery offenses carries a maximum term of imprisonment of 20 years, and the firearm offenses carries a consecutive term of imprisonment of at least 10 years and a maximum term of imprisonment of life.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.