District of Connecticut
Press releases recorded for this federal judicial district.
Wethersfield Woman Sentenced to 2 Years in Prison for Stealing $1.7 Million from Computer Software CompanyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PENNY ROY, 46, of Wethersfield, 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 stealing $1.7 million from her former employer, a Connecticut-based computer software company. ROY also failed to pay taxes on the stolen funds.
According to court documents and statements made in court, ROY used her position as the software company’s payroll manager to insert her own bank account information into the profiles of other employees. She then processed fraudulent expense reimbursements and payroll payments in other employees’ names with the payments flowing into her own bank account. In total, ROY stole $1.7 million and was fired after the company discovered her fake payments.
To hide her theft, ROY failed to declare the stolen money on her tax returns, depriving the Internal Revenue Service of over $600,000 in tax revenues. As part of her sentence, ROY was ordered to make full restitution to the software company and the Internal Revenue Service.
On August 21, 2015, ROY pleaded guilty to wire fraud and tax charges.
This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Avi M. Perry.
Sex Offender Sentenced to 16 Years in Prison for Child Enticement OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRYAN WHITE, 40, of New London, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 198 months of imprisonment, followed by a lifetime of supervised release, for attempting to entice a minor to engage in illegal sexual activity.
According to court documents and statements made in court, in June and July 2016, WHITE used a cellular phone and Chat Bazaar, a video chatting service, to communicate with a 13-year-old female in New Jersey. In text messages, the minor victim repeatedly told WHITE her age. WHITE responded by saying that “age is just a number to deny u things” and that he is a “child lover.” The text exchanges with the victim were sexually explicit, and WHITE requested that the victim travel from New Jersey to Connecticut to engage in sexual activity with him.
On June 16, 2016, the victim’s father discovered the texts with WHITE on the victim’s phone and reported it to local police. A law enforcement officer then assumed the minor’s identity to continue to correspond with WHITE. Between June 29 and July 5, 2016, WHITE repeatedly asked the undercover officer, posing as the victim, to come to Connecticut and described the sexual activity he wanted to engage in with the victim. The undercover officer agreed to take a bus from New Jersey to Connecticut. WHITE explained that he would be at the bus terminal wearing a yellow “MICHIGAN” shirt and that he would bring condoms and pina colada wine coolers to the bus station.
On July 5, 2016, WHITE was arrested at the New London bus station at the designated time wearing the clothes that he said he would be wearing. At the time of his arrest, WHITE was in possession of a condom and two bottles of alcoholic beverages.
In 2004, WHITE was convicted in state court of risk of injury based on his conduct in approaching two children who were walking to their aunt’s house in Waterbury and asking them if he could see one of them naked. A few months later, during his participation in a sex offender evaluation, WHITE disclosed that he sexually assaulted a nine-year-old boy on multiple occasions over a four-month period. He was convicted of sexual assault in the first degree and received a sentence of 12 years of incarceration. WHITE was released from prison in November 2015 and, from December 10, 2015 until April 4, 2016, he resided at an inpatient sex offender treatment facility. He was then transferred to a residential program and, while under court supervision, began communicating with the minor victim.
WHITE has been detained since his arrest on July 5, 2016. On February 22, 2017, he pleaded guilty to one count of attempted enticement of a minor to engage in unlawful sexual activity.
This matter was investigated by Homeland Security Investigations, the Burlington County (N.J.) Prosecutor’s Office, the Florence (N.J.) Township Police Department, the New London Police Department and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
New Haven Man Admits Role in Large-Scale Fencing OperationRead the Press Release
Deirdre M. Daly, 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 ANDREW SACCO, 44, of New Haven and formerly of Durham, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to charges stemming from his participation in a large-scale fencing operation.
According to court documents and statements made in court, between January 2012 and December 2014, SACCO participated in a conspiracy to purchase stolen property from “boosters,” who typically were shoplifters with opioid addictions, and then resold the property at online websites. SACCO, his co-conspirator Matthew Harwood, 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.
After receiving the stolen merchandise, SACCO and Harwood stored the merchandise at multiple locations, including SACCO’s former residence in Durham and business locations in North Haven. SACCO and Harwood then sold the stolen products at online sites, including eBay and Amazon.
Through this scheme, retailers lost more than $3.9 million.
SACCO pleaded guilty to one count of conspiracy to commit interstate transport of stolen property, which carries a maximum term of imprisonment of five years, and one count of interstate transport of stolen property, which carries a maximum term of imprisonment of 10 years.
In pleading guilty, SACCO also agreed to forfeit the house in Durham where he formerly resided.
SACCO has been released on a $100,000 bond since his arrest on July 15, 2016.
Judge Shea has scheduled sentencing for September 13, 2017.
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. He awaits sentencing.
This matter is being 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.
Leader of New Haven Heroin Ring Sentenced to More Than 12 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WILSON VASQUEZ, also known as “Will” and “Pancho,” 44, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 151 months of imprisonment, followed by four years of supervised release, for heading a large heroin distribution ring.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into the distribution of heroin in New Haven. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of heroin, revealed that VASQUEZ obtained bulk quantities of heroin, processed and packaged the drug with several co-conspirators, and then distributed the drug through a network of street-level distributors operating in the area of Ferry Street, Grand Avenue and Blatchley Avenue in New Haven’s Fair Haven neighborhood.
During the investigation, law enforcement seized approximately 500 grams of raw heroin, three handguns and five vehicles. In addition, bank accounts containing more than $300,000 have been frozen.
Seventeen individuals were charged as a result of this investigation. All 17 have pleaded guilty.
VASQUEZ has been detained since his arrest on July 15, 2015. On September 20, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Patrick Caruso.
Bethel Man Sentenced to 5 Years in Prison for Distributing Heroin and Cocaine that Contributed to 2 Overdose DeathsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that PAUL MIGNANI, 51, of Bethel, was sentenced yesterday by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by three years of supervised release for his conviction on one count of possession with intent to distribute, and distribution of cocaine and heroin. In imposing a sentence above the guideline range, Judge Meyer noted that MIGNANI had distributed cocaine and heroin involved in two overdose deaths and that one of the victims had died in MIGNANI’s bedroom. On March 28, 2017, MIGNANI waived his right to be indicted and pleaded guilty before Judge Meyer in New Haven.
According to court documents and statements made in court on July 31, 2016, Bethel Police responded to a report of a possible heroin overdose and found an unresponsive 54-year-old female. The victim was pronounced deceased shortly thereafter. The investigation revealed that MIGNANI distributed heroin, fentanyl and cocaine that was consumed by the victim shortly before her death. This toxic combination according to the Connecticut Chief Medical Examiner was the cause of this victim’s death.
On December 11, 2016, members of the Bethel Police and medical personnel responded to a report of an unresponsive 25-year old female at MIGNANI’s residence. The victim was pronounced deceased. Investigators seized three empty heroin folds from the victim’s purse, and six empty heroin folds from the victim’s jacket. MIGNANI provided heroin and cocaine to the victim that contributed to her untimely death.
On December 12, 2016, investigators conducted a court-authorized search of MIGNANI’s residence and seized three plastic bags of cocaine, each of which contained approximately one gram of the drug. Investigators also seized $1,531 in cash and multiple cellphones from the residence. MIGNANI was arrested on state charges on that date.
On December 28, 2016, after a federal criminal complaint was issued for MIGNANI, he was arrested and detained on federal charges stemming from his distribution of cocaine. According to statements made in court, MIGNANI was a drug dealer with approximately 10 customers to whom he regularly sold over several hundred grams of heroin and cocaine in total.
This case stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the Bethel Police Department, with assistance from the States Attorney’s Office for the Judicial District of Danbury. The DEA Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Robert M. Spector.
New Haven Man Who Brandished Gun Outside Nightclub Sentenced to 3 Years in PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EDWARD FULTON, 34, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 36 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, in the early morning hours of March 12, 2016, a New Haven Police detective working an extra duty assignment at a nightclub on Hamilton Street observed FULTON outside the club pointing a handgun at a group of people shortly after the club had closed for the evening. The detective drew his service revolver and ordered FULTON to drop his weapon, at which time FULTON put the gun in his sweatshirt and kept walking. The detective ordered FULTON to stop, FULTON eventually complied and the firearm was seized.
The firearm, a Cobra nine millimeter derringer, was cocked and loaded with two rounds of ammunition. It had been reported stolen in New Haven in 2015.
FULTON’s criminal history includes multiple felony convictions for robbery and firearm offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
FULTON has been detained since his arrest on March 12, 2016. On March 13, 2017, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Peter D. Markle.
East Windsor Woman Sentenced to 30 Months for Committing Crimes after Sentencing for Prior OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALIYAH THERESA JULIATE DAVIS, also known as Theresa Juliate Sutherland, 36, of East Windsor, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by three years of supervised release, for committing multiple federal offenses while awaiting incarceration after a prior federal conviction.
According to court documents and statements made in court, on December 17, 2014, DAVIS, who was then known as Theresa Sutherland, was sentenced in Hartford federal court to 51 months of imprisonment, followed by three years of supervised release, for engaging in a fraud and identity theft scheme at an insurance company where she was employed. As part of her sentence, DAVIS was ordered to pay total restitution of $400,000 to the victim insurance company and three previous employers that she defrauded.
Beginning in January 2015, DAVIS, through her attorney, made five separate motions to postpone her prison report date based on her claims of a diagnosis of terminal cancer and heart conditions. In association with her court motions, DAVIS submitted letters from various medical professionals detailing her claimed medical conditions. DAVIS created the letters and forged the medical professionals’ signatures. DAVIS’s prison report dates were continued based on these fraudulent submissions.
In March 2015, DAVIS changed her name from Theresa Juliate Sutherland to ALIYAH THERESA JULIATE DAVIS. DAVIS subsequently received a new Social Security number and Connecticut driver’s license under her new identity.
On April 19, 2016, DAVIS submitted an application for a U.S. passport at the U.S. Postal Service facility on Weston Street in Hartford. On the application where it states “Have you ever applied for or been issued a U.S. Passport Book or Passport Card?” DAVIS marked an “X” in the “No” box. In 2007, DAVIS applied for and received a U.S. passport when she was known as Theresa Juliate Sutherland.
At various times between December 2014 and September 2016, DAVIS was employed at a local insurance company and local hospitals. From May 28, 2016 to September 10, 2016, while she was employed at an insurance company and then a hospital under her new identity, DAVIS received $9,808 in unemployment compensation from the State of Connecticut under her previous identity.
On December 12, 2016, DAVIS pleaded guilty to one count of wire fraud, one count of knowingly making a false statement on a passport application, one count of making a false statement, and one count of aggravated identity theft.
Judge Arterton ordered DAVIS to begin serving her sentence after she completes her previous 51-month sentence.
DAVIS has been detained since September 17, 2016.
This matter was investigated by the U.S. Department of State, Diplomatic Security Service, U.S. Department of Labor – Office of Inspector General, Office of the Chief State’s Attorney, Connecticut Department of Labor and East Windsor Police Department. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Norwalk Drug Dealer Sentenced to More Than 3 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTHONY SCULLARK, also known as “A.J.” and “Ace,” 31, of Norwalk, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 40 months of imprisonment, followed by three years of supervised release, for distributing heroin, and for violating the conditions of his supervised release from a prior federal conviction.
This matter stems from an investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, Stamford Police Department, Norwalk Police Department and Connecticut State Police. The investigation included court-authorized wiretaps, controlled purchases of narcotics and physical surveillance.
According to court documents and statements made in court, in May 2016, SCULLARK was intercepted over a wiretap ordering 10 “sleeves” or “bricks” (1000 dosage units) of heroin from Kenneth Brickhouse, also known as “K.E.”
On October 4, 2016, SCULLARK was arrested after he conducted a drug transaction in the parking lot of a Norwalk business. A search of SCULLARK’s person, vehicle and residence revealed approximately 65 bags of heroin, 19 small knotted bags of crack cocaine, $1,695 in cash, and eight cellphones.
SCULLARK has been detained since his arrest.
On October 8, 2013, SCULLARK was sentenced in Bridgeport federal court to 21 months of imprisonment and three years of supervised release for conspiring to possess with intent to distribute, and to distribute crack cocaine. His term of supervised release began on July 23, 2014.
On December 5, 2016, SCULLARK pleaded guilty to one count of possession with intent to distribute heroin, and to violating the conditions of his supervise release.
Brickhouse pleaded guilty and, on March 9, 2017, Judge Bolden sentenced him to 10 years of imprisonment.
The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk, Milford and Trumbull Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Heather Cherry.
Two Men Convicted of Staging Car Accidents in Eastern Connecticut as Part of Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, 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 federal jury in New Haven has found MACKENZY NOZE, 32, and JONAS JOSEPH, 33, also known as “James,” both residents of Norwich, guilty of fraud and conspiracy offenses related to their staging of car accidents for the purpose of defrauding automobile insurance companies. The trial before U.S. District Judge Jeffrey Alker Meyer began on June 5 and the jury returned verdicts of guilty on all counts on the indictment this afternoon.
According to the evidence presented during the trial, between April 2011 and February 2014, NOZE, JOSEPH, and others conspired to stage approximately 50 car crashes in eastern Connecticut for the purpose of defrauding automobile insurance companies and enriching themselves. A high percentage of these planned crashes were single-vehicle accidents on remote roads where there were no witnesses other than the occupants of the crashed vehicle. After each staged accident, the defendants filed fraudulent property damage and bodily injury claims with various automobile insurance companies. They then collected payouts on the fraudulent claims from the victim insurance companies. These payouts typically ranged from approximately $10,000 to $30,000 per accident.
The jury found NOZE and JOSEPH guilty of one count of conspiracy to commit mail and wire fraud, NOZE guilty of eight counts of mail or wire fraud, and JOSEPH guilty of five counts of mail or wire fraud. The charges carry a maximum term of imprisonment of 20 years on each count. NOZE is scheduled to be sentenced on September 1 and JOSEPH is scheduled to be sentenced on September 5.
After the verdict, Judge Meyer ordered NOZE, who is a citizen of Haiti and lawful permanent residence of the U.S., detained pending sentencing.
JOSEPH is released on a $10,000 bond.
Five other individuals charged as a result of this investigation have pleaded guilty and await sentencing.
This matter has been investigated by the Federal Bureau of Investigation, the Norwich Police Department, and the National Insurance Crime Bureau. The case is being prosecuted by Assistant U.S. Attorneys Avi Perry and Michael J. Gustafson.
New Haven Man Sentenced to 7 Years in Federal Prison for Heroin Distribution, Gun Possession OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SAMUEL ALBARRAN, also known as “Sam Dog,” 34, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 85 months of imprisonment, followed by five years of supervised release, for heroin distribution and firearm possession offenses.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into the distribution of heroin in New Haven. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of heroin, revealed that ALBARRAN’s brother, Wilson “Pancho” Vasquez, obtained bulk quantities of heroin, processed and packaged the drug with several co-conspirators, and then distributed the drug through a network of street-level distributors operating in the area of Ferry Street, Grand Avenue and Blatchley Avenue in New Haven’s Fair Haven neighborhood.
A series of intercepted calls during the investigation revealed that ALBARRAN agreed to supply Vasquez with 300 grams of heroin.
Law enforcement officers first attempted to arrest ALBARRAN on July 15, 2015. On that date, a search of a New Haven residence connected to ALBARRAN revealed distribution quantities of heroin, cocaine and marijuana; a kilogram press and heroin packaging materials; 9mm and .380 caliber firearms; 9mm ammunition, and more than $21,000 in cash.
ALBARRAN remained a fugitive until February 11, 2016, when he was apprehended in East Haven. He has been detained since his arrest.
On September 15, 2016, ALBARRAN pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.
Seventeen individuals were charged as a result of this investigation. All 17 have pleaded guilty.
Vasquez is scheduled to be sentenced on June 21, 2017.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Patrick Caruso.
Hartford PCP Dealer Sentenced to More Than 5 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that GARRETT J. CARTER, also known as “Little Man,” 30, of Hartford, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 70 months of imprisonment, followed by four years of supervised release, for distributing PCP.
According to court documents and statements made in court, in January 2016, Hartford Police received information of a significant PCP distributor operating in the Heath Street area of Hartford’s South End. A Hartford Police officer working in an undercover capacity subsequently made multiple purchases of PCP from an individual who was being supplied by CARTER. On March 24, 2016, CARTER was arrested after he arrived at a location on Heath Street to deliver PCP to his distributor. At the time of his arrest, CARTER possessed 28 ounce-sized bottles of PCP, each weighing approximately 22.5 grams. In total, the vials contained approximately 630 grams of PCP, or approximately 126,000 five milligram doses of the drug.
CARTER has been detained since his arrest. On February 6, 2017, he pleaded guilty to one count of possession with intent to distributed 100 grams or more of phencyclidine (PCP).
This matter was investigated by the Hartford Police Vice, Intelligence and Narcotics Unit and the FBI’s Northern Connecticut Violent Crimes Task Force. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Former Nomura RMBS Trader Convicted of Fraud ConspiracyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found MICHAEL GRAMINS, 33, of New York, N.Y., guilty of conspiracy to commit securities and wire fraud.
According to the evidence at trial, GRAMINS was an Executive Director on the Residential Mortgage Backed Securities (“RMBS”) Desk at Nomura Securities International (“Nomura”) in New York where he principally oversaw Nomura’s trading of bonds composed of sub-prime and option ARM loans. GRAMINS engaged in a conspiracy to defraud customers of Nomura by fraudulently inflating the purchase price at which Nomura could buy a RMBS bond to induce their victim-customers to pay a higher price for the bond, and by fraudulently deflating the price at which Nomura could sell a RMBS bond to induce their victim-customers to sell bonds at cheaper prices, causing Nomura to profit illegally. GRAMINS trained subordinates to lie to customers, provided them with the language to use in deceiving customers, and encouraged them to engage in the practice.
The victims of this scheme included hedge funds, insurance companies, and asset managers from Connecticut and elsewhere.
On March 6, 2017, GRAMINS and two other former New York-based bond traders for Nomura, Ross Shapiro and Tyler Peters, were each charged in a third superseding indictment with one count of conspiracy, two counts of securities fraud and six counts of wire fraud. A trial before U.S. District Judge Robert N. Chatigny began on May 8, 2017. Today, the jury found GRAMINS guilty of one count of conspiracy, and not guilty of one count of securities fraud and five counts of wire fraud. The jury could not reach a verdict as to one count of securities fraud and one count of wire fraud.
The jury also found Shapiro not guilty of two counts of securities fraud and six counts of wire fraud, but could not reach a verdict as to the conspiracy count. The jury found Peters not guilty of all nine counts of the indictment.
“This has been a demanding prosecution, and I thank the jury for its service,” U.S. Attorney Deirdre M. Daly said. “I also commend SIGTARP, the FBI, the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Housing Finance Agency’s Office of Inspector General for their outstanding investigative work in this and related cases. Our investigation into fraudulent trading practices in the RMBS and other financial markets has had a marked impact on the industry and will continue.”
When sentenced, GRAMINS faces a maximum term of imprisonment of five years.
This matter has been investigated by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Federal Bureau of Investigation, the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Housing Finance Agency’s Office of Inspector General.
The case is being prosecuted by Assistant U.S. Attorneys Liam Brennan, Heather Cherry, and David Novick.
Bridgeport Man Charged with Distributing CarfentanilRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, and Norwalk Police Chief Thomas Kulhawik today announced that CHARLES THELUSMA, 43, formerly of Bridgeport, has been arrested on a federal criminal complaint charging him with possession with intent to distribute, and distribution of, heroin, carfentanil and U47700.
Carfentanil is an opioid that is 10,000 times more potent than morphine and 100 times more potent than fentanyl, which is itself 50 times more potent than heroin. It is typically used as a tranquilizing agent for elephants and other large mammals. U47700 is a synthetic opioid that is approximately seven times stronger than morphine.
As alleged in court documents, on two occasions in March and May 2017, law enforcement coordinated a controlled purchases of heroin from THELUSMA. In both instances, an individual working for THELUSMA completed the drug transactions at predetermined locations in Bridgeport. On May 24, 2017, law enforcement conducted a controlled purchase of three bundles heroin (30 dose bags) from THELUSMA in exchange for $200. THELUSMA directed the purchaser to a hotel in Elmsford, N.Y. to complete the transaction. Laboratory analysis of the drugs purchased on May 24 confirmed the presence of heroin, carfentanil and U47700.
THELUSMA was arrested on June 13, 2017, at the hotel in Elmsford, where he had been residing. He appeared yesterday before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was ordered detained. The charge carries a maximum term of imprisonment of 20 years.
“This is the first federal prosecution involving carfentanil in Connecticut,” said U.S. Attorney Daly. “We will continue to devote numerous federal resources to battle the scourge of opioid abuse and distribution, and our commitment becomes stronger as these illegal drugs become more sinister and deadly. This investigation is ongoing.”
“Those suffering from opioid addiction need access to treatment and recovery,” said DEA Special Agent in Charge Ferguson. “But those responsible for the distribution of heroin and deadly synthetic opioids like carfentanil and U-47700 need to be held accountable for their actions. This investigation demonstrates the strength of collaborative law enforcement in Connecticut and our strong partnership with the U.S. Attorney’s Office to aggressively seek and bring to justice anyone who distributes these poisons.”
“I would like to commend my officers for their excellent work on following up with this investigation in regards to this very dangerous drug,” said Chief Kulhawik. “I also thank the DEA and U.S. Attorney’s Office for their valuable assistance and partnership in working on this case which lead to the arrest.”
U.S. Attorney Daly 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 stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force (HIDTA) and Norwalk Police Department. The HIDTA Task Force includes participants from the Connecticut State Police and the Norwalk, Stamford, Stratford, Milford and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorney Amy C. Brown.
Two Men Who Defrauded Banks in Connection with USDA Export Financing Program Sentenced to PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two men involved in a multimillion dollar scheme to defraud banks participating in a USDA-backed export financing program were sentenced yesterday in New Haven federal court. Chief U.S. District Janet C. Hall sentenced BRETT C. LILLEMOE, 47, of Minneapolis, Minn., to 15 months of imprisonment and PABLO CALDERON, 61, Darien, Conn., to five months of imprisonment and five months of home confinement. Chief Judge Hall also ordered both men to serve a three-year term of supervised release, and to pay restitution in the amount of $18 million and forfeit more than $1.5 million of ill-gotten gains.
On November 9, 2016, a federal jury convicted LILLEMOE and CALDERON of conspiracy and fraud offenses. According to court documents, statements made in court and the evidence introduced during the trial, LILLEMOE and CALDERON submitted fraudulent documents to two United States banks in connection with a USDA loan guarantee program by which the USDA provides credit guarantees. The credit guarantees are part of the USDA Export Credit Guarantee Program (GSM-102), which is designed to encourage financing of commercial exports of U.S. agricultural products. The GSM-102 program guarantees credit extended by U.S. financial institutions to approved foreign banks. As part of the program, the Commodity Credit Corporation (CCC), which is an agency and instrumentality of the USDA, enters into payment guarantees (“credit guarantees”) with the goal of encouraging exports of U.S. agricultural products, including products of American farmers and American ranchers.
The credit guarantees are designed to encourage exports to buyers in foreign countries – mainly developing countries. The program operates in cases where credit is necessary to increase or maintain U.S. exports to a foreign market and where U.S. financial institutions might otherwise be unwilling to provide financing without the guarantee backed by the U.S. government. In providing the credit guarantee facility, the CCC seeks to expand market opportunities for U.S. agricultural exporters and assist long-term market development for U.S. agricultural commodities.
In connection with the GSM-102 program, a foreign importer that has contracted to buy U.S. agricultural products can apply for a letter of credit (“LOC”) from a foreign bank that has been approved by the USDA’s Foreign Agricultural Service (FAS). The foreign bank then issues a letter of credit in favor of the U.S. exporter. The U.S. exporter then, consistent with the requirements of the GSM-102 program, presents proper shipping documents to an approved U.S. financial institution, including a copy of an original bill of lading, certificate of origin, and evidence of export. The U.S. financial institution then provides funds to the U.S. exporter which, in exchange, assigns the rights to the proceeds payable under the letter of credit from the foreign bank to the U.S. financial institution in the same dollar-denominated amount, less any fees. If the foreign bank defaults on its payments to the U.S. financial institution, the U.S. financial institution may submit a claim to the USDA FAS under the guarantee for up to 98 percent of the payment amount owed at the time of the default.
Between September 2007 and January 2012, LILLEMOE, CALDERON and others defrauded various U.S. financial institutions, including Deutsche Bank A.G. and Colorado-based CoBank ACB, by presenting false and altered shipping documents, including altered bills of lading, in connection with securing funding on loans guaranteed by the GSM-102. As part of the scheme, LILLEMOE and CALDERON established multiple entities with separate names for the purpose of obtaining a greater share of the allocation of guarantees from the GSM-102 program, and used multiple bank accounts in the names of the various entities in order to further create the appearance that the entities were operating as separate and unrelated entities. The defendants then, in various ways, paid for, or otherwise acquired, bills of lading and other shipping documents for shipments of agricultural products that they did not physically ship and for which they did not participate in the physical movement of the products in any capacity.
LILLEMOE entered into agreements with foreign banks, including International Industrial Bank (IIB) in Russia, to provide them capital that would be made available to them from a U.S. financial institution through the use of the GSM-102 program. LILLEMOE subsequently obtained letters of credit from the foreign banks. LILLEMOE, CALDERON and others then altered copies of certain shipping documents, including bills of lading marked “Copy non negotiable,” by whiting out portions of the documents, stamping the word “original” on the documents, and adding shading on certain sections of the bills of lading. The defendants also prepared and executed documents termed “commercial invoices” purporting to represent sales of agricultural commodities between entities that they controlled, as well as between entities that they controlled and other entities.
The defendants then used these fraudulent documents to obtain millions of dollars from U.S. banks in connection with the GSM-102 program, and then provided the funds to the foreign banks in exchange for a percentage fee for themselves and their various entities. Although the foreign banks were contractually obligated to repay the funds to the U.S. by virtue of the letters of credit issued to the U.S. financial institutions, in a number of instances, the banks failed to do so. Nevertheless, LILLEMOE, CALDERON and their various entities retained more than $2.2 million in fees they had collected in connection with the GSM-102 transactions and in some instances, sent a portion of those fees to various financial backers in places such as Singapore.
The foreign banks defaulted on more than $25 million of the many loans guaranteed as a result of LILLEMOE and CALDERON’s scheme. Those losses, which were originally suffered by the victim U.S. banks, were ultimately reimbursed by the USDA because of the GSM-102 guarantees.
After a month-long trial, the jury found LILLEMOE and CALDERON guilty of one count of conspiracy to commit wire fraud and bank fraud, and LILLEMOE guilty of five counts and CALDERON guilty of one count of wire fraud.
This matter was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Department of Agriculture, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Michael S. McGarry, John H. Durham and John T. Pierpont, Jr.
Meriden Man Charged with Trafficking Cocaine and HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that LUIS MARTELL, also known as “Fat Boy,” 34, of Meriden, was arrested yesterday on a federal criminal complaint charging him with trafficking cocaine and heroin.
MARTELL appeared yesterday before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport and was ordered detained.
As alleged in court documents, in late October 2016, law enforcement intercepted two parcels containing suspected narcotics that had been mailed from southern California to two different addresses in Meriden. On November 2, 2016, a court-authorized search of the parcels revealed a total of approximately 6.5 kilograms of cocaine and approximately 1.06 kilograms of heroin.
On November 2, 2016, Jose Davila, also known as “Flaco,” visited a post office in Meriden to inquire about one of the parcels. On November 3, 2016, law enforcement made a controlled delivery of the second parcel to its intended address. The residents of the house accepted the parcel on behalf of Justin Doherty and contacted Doherty on his cellphone. Doherty then arrived at the house in a car driven by Davila. Doherty and Davila were arrested at that time.
It is alleged that MARTELL coordinated the shipment of the parcels containing cocaine and heroin, and paid Doherty and Davila to accept the parcels on his behalf.
The complaint charges MARTELL with conspiracy to possess with intent to distribute five or more kilograms of cocaine and one or more kilogram of heroin, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
U.S. Attorney Daly 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.
On January 20, 2017, a grand jury in Bridgeport returned a three-count indictment charging Davila, 32, and Doherty, 24, both of Meriden, with related offenses. They are awaiting trial.
This matter is being investigated by the Drug Enforcement Administration, U.S. Postal Inspection Service and Meriden Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Hartford Man Sentenced to 34 Months in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANDRE CARTAGENA, 29, of Hartford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 34 months of imprisonment, followed by one year of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department that targeted a drug trafficking organization operating in Hartford’s North End that was distributing crack and powder cocaine. The investigation revealed that David Gil-Grande, of Manchester, received shipments of cocaine, secreted in sealed coffee cans, from Puerto Rico. He then supplied the cocaine to Anthony Shelton, also known as “Pretty,” Gerard Brown, also known as “Goldie,” and others, who converted much of the cocaine into crack and distributed both forms of the drug in the area of Barbour Street in Hartford.
The investigation, which included court-authorized wiretaps, revealed that Brown supplied crack cocaine to CARTAGENA who then sold the drug to his own customers.
Twenty individuals were charged as a result of the investigation.
CARTAGENA has been detained since his arrest on February 2, 2016. On March 9, 2017, he pleaded guilty to one count of using a telephone to facilitate a drug trafficking felony.
CARTAGENA’s criminal history includes six narcotics-related convictions and convictions for assault and criminal mischief. He was on state probation while he engaged in the criminal conduct that resulted in this federal prosecution.
Gil-Grande, Shelton and Brown have pleaded guilty to related charges. On January 31, 2017, Gil-Grande was sentenced to 70 months of imprisonment. Shelton and Brown await sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and the Drug Enforcement Administration have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Connecticut U.S. Attorney's Office Celebrates Annual U.S. Attorney's AwardsRead the Press Release
The United States Attorney’s Office for the District of Connecticut hosted its annual United States Attorney’s Office Law Enforcement Awards Ceremony this morning in New Haven. The ceremony at the City of New Haven’s aldermanic chambers recognized more than 160 federal agents, police officers and community members for their investigative efforts and other contributions to approximately 30 significant federal criminal prosecutions and civil cases in Connecticut.
The highlighted cases demonstrate the broad variety of work performed by local, state and federal law enforcement agencies in Connecticut. Approximately 60 of the award recipients are members of local police departments from across Connecticut.
“Today, we proudly recognize our law enforcement partners and community members for their exceptional achievements this past year and their courageous dedication to ensuring the safety and security of our communities,” said U.S. Attorney Deirdre M. Daly. “These award recipients have served the people of Connecticut and our nation with distinction and integrity, and it has been my sincere honor to work with them in the cause of justice.”
Several special awards were presented to law enforcement officers, state employees and community members during the ceremony.
The U.S. Attorney’s Award for Outstanding Investigator was presented to Sergeant Karl Jacobson of the New Haven Police Department for his many years as an exceptional law enforcement officer, his work on behalf of Project Longevity and his command of the NHPD’s Intelligence Unit.
The U.S. Attorney’s Award for Outstanding Partnership was presented to the Connecticut Forensic Science Laboratory, under the leadership of Dr. Guy Vallaro, for its critical assistance in numerous firearm, drug and violent crime investigations.
The U.S. Attorney’s Outstanding Community Award was presented to Amarjit Singh, Swaranjit Singh Khalsa and Maninder Arora, members of the Sikh community who have volunteered hundreds of hours to Department of Justice cultural awareness trainings for police officers across the state.
U.S. Attorney’s Outstanding Task Force Officer Awards were presented to Detective Matthew Greenstein of the Connecticut State Police, Detectives Josh Lewis and Abhilash Pillai of the Hartford Police Department, Officer Brian McPadden of the Shelton Police Department, Detective Michael Chaves of the Monroe Police Department, and Officer Jeffrey Poulin of the Wethersfield Police Department.
The Civil Division Unit Award was presented to the attorneys and staff of the State of Connecticut’s Office of Protection and Advocacy for their work to ensure that people with disabilities have equal access to public facilities and programs, educational opportunities, hospitals, employment, voting, recreational activities, housing and financial institutions.
The National Security and Major Crimes Unit Award was presented to Special Agent Wendy Bowersox of the FBI’s Violent Crimes Against Children Squad for her dedicated investigative work in child exploitation and sex trafficking cases.
The Financial Fraud and Public Corruption Unit Award was presented to FBI Special Agent Jeff Waterman for his exceptional work on significant public corruption investigations since 2009.
The Violent Crimes and Narcotics Unit Award was presented to the U.S. Attorney’s Office Heroin Education Action Team (HEAT), notably 12 HEAT participants who have had a child or other family member die from an opioid overdose. During the 2016-2017 school year, HEAT delivered opioid awareness presentations that reached more than 20,000 high school and middle school students across Connecticut. They also traveled to cities and towns throughout the State for evening presentations to parents and other community members concerned about the opioid epidemic and the dangers of prescription pill abuse.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 63 Assistant U.S. Attorneys and approximately 52 staff members at offices in New Haven, Hartford and Bridgeport.
Bronx Man Who Supplied Eastern Connecticut Drug Ring Sentenced to More Than 6 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSE MIRANDA, also known as “Omar,” 52, of the Bronx, N.Y., was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 74 months of imprisonment, followed by three years of supervised release, for trafficking heroin and cocaine. Judge Bolden also ordered MIRANDA to pay a $5,000 fine.
According to court documents and statements made in court, in October 2015, the DEA, Willimantic Police Department and Connecticut State Police initiated an investigation into a Willimantic-based narcotics trafficking ring after several overdoses in the region. The investigation, which included the use of confidential informants, physical surveillance, controlled purchases of drugs and court authorized wiretaps on five cellular telephones utilized by the co-conspirators, revealed that MIRANDA was supplying large quantities of heroin and cocaine to individuals in eastern Connecticut and Rhode Island, including Carlos Alberto Lopez-Zelada, of Willimantic, and Persio Hernandez, of North Windham. In Connecticut, Lopez-Zelada converted a portion of the cocaine he received into crack cocaine. Lopez-Zelada, Hernandez and other co-conspirators then distributed heroin, cocaine and crack cocaine in the Willimantic area.
MIRANDA was arrested on June 23, 2016, after he was intercepted threatening to shoot a co-conspirator who refused to pay him for a quantity of heroin that Miranda had provided to the individual on consignment.
MIRANDA also disclosed on a wiretap intercept that he had been involved in drug trafficking for “25 years.”
MIRANDA has been detained since his arrest. On December 9, 2016, he pleaded guilty to one count of conspiracy to distribute heroin and cocaine.
Lopez-Zelada and Hernandez were arrested on July 6, 2016, and subsequently pleaded guilty to related charges. They are detained while awaiting sentencing.
This matter is being prosecuted by Assistant U.S. Attorneys Patrick Caruso, David Nelson and Amy Brown.
Bristol Woman Pleads Guilty to Participating in IRS Impersonation ScamRead the Press Release
United States Attorney Deirdre M. Daly and Treasury Inspector General for Tax Administration (TIGTA) Special Agent in Charge William Kalb announced that NANCY J. FRYE, 51, of Bristol, pleaded guilty today in Hartford federal court to one count of conspiracy to commit wire fraud related to her involvement in an IRS impersonation scam that defrauded more than 500 victims in the United States and Canada.
An IRS impersonation scam is operated by individuals who falsely represent themselves as employees of the IRS to obtain money from victims. Typically, those executing the fraudulent scheme make unsolicited telephone calls to people and tell them that they are IRS agents or officers calling on behalf of the IRS. During the calls, the impersonator tells the call recipient that the recipient has an outstanding debt with the IRS that must be paid immediately. The impersonator then threatens persons with either arrest or a lawsuit if they do not immediately settle the bogus IRS debt. Victims are instructed to wire money to individuals they believe are employees of the IRS in order to avoid the threatened action.
According to court documents and statements made in court, in October 2015, FRYE received phone calls and text messages from individuals who successfully recruited her to pick up money that was wired through MoneyGram and Western Union and to deposit the money into specific bank accounts. FRYE, in turn, recruited Douglas Martin and others to assist her in picking up wired funds from locations in central Connecticut. FRYE then deposited the money that she collected into the bank accounts.
Between October 2015 and May 2016, FRYE, and others working at her direction, received approximately $583,000 in wired funds from approximately 527 victims.
FRYE and Martin were arrested on September 15, 2016.
FRYE is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 20, 2017, at which time FRYE faces a maximum term of imprisonment of 20 years.
Martin, 52, of Bristol, pleaded guilty to the same charge on May 18, 2017, and awaits sentencing.
Since October 2013, TIGTA has received reports of more than 1.9 million impersonation related calls with more than 10,400 victims reporting losses of over $56 million.
This matter is being investigated by the Treasury Inspector General for Tax Administration (TIGTA) of the U.S. Department of the Treasury and U.S. Postal Inspection Service. The U.S. Attorney gratefully acknowledges the assistance provided by the Rocky Hill Police Department, Bristol Police Department, and New York State Department of Taxation and Finance.
The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
U.S. Attorney Daly stated that the investigation is ongoing and encouraged individuals who receive impersonation calls, including those who have been victimized by this scheme, to report the information at https://www.treasury.gov/tigta/contact_report_scam.shtml.
Pennsylvania Man Sentenced to 19 Years in Federal Prison for Role in Kidnapping, Jewelry Store RobberyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TIMOTHY FORBES, 35, of Allentown, Pa., was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 228 months of imprisonment, followed by five years of supervised release, for his role in a violent kidnapping and jewelry store robbery in April 2013.
According to court documents and statements made in court, at approximately 9:00 p.m. on April 11, 2013, Kasam Hennix, William Davis, Christopher Gay and Jeffrey Houston, all of whom were wearing masks and gloves and two of whom were armed with handguns, broke into an apartment on Gravel Street in Meriden, Conn., bound four victims with duct tape and covered their heads with pillowcases, towels and jackets. Hennix, Davis, and Houston then forced two of the victims into a victim’s vehicle and drove to Lenox Jewelers in Fairfield, Conn., where the two victims worked. FORBES traveled to Fairfield in a separate vehicle, and Gay remained in the Meriden apartment to guard the two other victims.
After Hennix, Davis and Houston arrived at the Fairfield store, they stole jewelry, watches and loose diamonds with a total replacement value of more than $3 million. They then fled in the victim’s car, leaving the two victims bound inside the store. Hennix, Davis and Houston abandoned the victim’s vehicle and got into FORBES’ vehicle. One of the defendants called Gay to advise him that they had successfully carried out the robbery and that he should leave the apartment. The defendants then fled the state.
The five defendants were arrested in May 2013.
Investigators determined that FORBES, Houston and Gay had traveled from Pennsylvania to Connecticut on several occasions in the weeks prior to the robbery in order to track the victims’ movements between Lenox Jewelers in Fairfield and their residence in Meriden. In addition, FORBES and Gay placed a GPS on one of the victim’s vehicles in an effort to make it easier to track him.
On January 19, 2017, FORBES pleaded guilty to one count of kidnapping, one count of interference with commerce by robbery and one count of use of a firearm during and in relation to a crime of violence.
Hennix, of Easton, Pa., Davis, of Allentown, Pa., Houston, of Allentown, and Gay, of the Bronx, N.Y., also pleaded guilty to related charges. On April 17, 2015, Davis was sentenced to 176 months in prison; on January 27, 2016, Gay was sentenced to 102 months in prison; on February 8, 2016, Hennix was sentenced to 171 months of imprisonment, and, on April 26, 2017, Houston was sentenced to 90 months of imprisonment.
The defendants have been ordered to pay restitution of more than $3.1 million, and have forfeited gemstones, jewelry, watches, a vehicle, and more than $127,000 in cash seized from them at the time of their arrests.
FORBES has been involved in at least three other similar jewelry store robberies, including one that occurred in York, Pa., in July 2012. During that robbery, one of FORBES’ co-defendants shot the owner of the store, permanently disabling him. On March 23, 2016, FORBES was sentenced in the Middle District of Pennsylvania to 14 years of imprisonment for his role in that robbery.
This matter was investigated by the U.S. Marshals Service, Federal Bureau of Investigation, Fairfield Police Department and Meriden Police Department. U.S. Attorney Daly also acknowledged the assistance provided by the U.S. Marshals Service and FBI in New York and Pennsylvania; the York, Allentown and Bethlehem Police Departments in Pennsylvania, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
This case was prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
Former Windsor Resident Charged with Federal Tax OffensesRead the Press Release
Deirdre M. Daly, 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 CRAIG FRANCIS, also known as Horus Durjaya Bey, 44, formerly of Windsor, has been charged by indictment with one count of filing a false tax return and one count of obstructing the administration of federal tax laws.
The indictment was returned by a grand jury in New Haven on February 11, 2015. FRANCIS, who is alleged to have absconded, was arrested on June 7, 2017, in Kissimmee, Florida. The indictment was unsealed on that date. After his arrest, FRANCIS appeared before U.S. Magistrate Judge Karla R. Spaulding in Orlando and was ordered detained pending his removal to the District of Connecticut.
According to the indictment, in February 2009, FRANCIS filed a federal income tax return falsely claiming that he was entitled to a $255,904 tax refund, and the Internal Revenue Service issued the refund before discovering the falsity of the tax return. The indictment also alleges that FRANCIS promptly spent the fraudulently obtained funds and engaged in various acts to avoid paying the funds back, including filing a false amended tax return, and submitting a series of false bonds to the IRS, which had no value but purported to pay off FRANCIS’s debt to the IRS.
If convicted of the charges, FRANCIS faces a maximum term of imprisonment of six years.
U.S. Attorney Daly stressed that an indictment 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 Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Henry Kopel with the assistance of the U.S. Attorney’s Office for the Middle District of Florida.
Hartford Man Sentenced to 46 Months in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JIMMIE SMITH, also known as “Prime,” 44, of Hartford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 46 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department that targeted a drug trafficking organization operating in Hartford’s North End that was distributing crack and powder cocaine. The investigation revealed that David Gil-Grande, of Manchester, received shipments of cocaine, secreted in sealed coffee cans, from Puerto Rico. He then supplied the cocaine to Anthony Shelton, also known as “Pretty,” Gerard Brown, also known as “Goldie,” and others, who converted much of the cocaine into crack and distributed both forms of the drug in the area of Barbour Street in Hartford. Brown supplied both crack and cocaine to SMITH, and SMITH also converted cocaine into crack. He then sold the drugs to his own customers.
Twenty individuals were charged as a result of the investigation.
SMITH has been detained since his arrest on February 9, 2016. On February 14, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).
SMITH has a criminal history that began in 1993 and includes eight felony convictions, including a conviction for first degree assault on which he was sentenced to 54 months of imprisonment. He also was on state probation while he engaged in the criminal conduct that resulted in this federal prosecution.
Gil-Grande, Shelton and Brown have pleaded guilty to related charges. On January 31, 2017, Gil-Grande was sentenced to 70 months of imprisonment. Shelton and Brown await sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and the Drug Enforcement Administration have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
East Hartford Resident Charged with Obstructing Tax LawsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, William Kalb, Special Agent in Charge for the Treasury Inspector General for Tax Administration (TIGTA), and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that a federal grand jury in New Haven returned an indictment today charging RAYMOND McLAUGHLIN, also known as “Shakir Ra Ade Bey” and “Shakir Ade Bey,” 34, of East Hartford, with one count of obstructing the administration of federal tax laws, and one count of making a false statement.
McLAUGHLIN was arrested yesterday on a federal criminal complaint and is detained. An arraignment and bond hearing is scheduled for June 12 at 3:30 p.m. before U.S. Magistrate Judge Joan G. Margolis in New Haven.
As alleged in court documents, in March 2009, McLAUGHLIN and his wife refinanced the mortgage for their East Hartford residence, taking out a $233,371 refinancing loan. McLAUGHLIN and his wife failed to make a single mortgage payment for approximately six years thereafter while they resided in the home. In April 2011, the mortgage holder filed a foreclosure lawsuit in state court and, in December 2012, Judge Robert F. Vacchelli granted an Order of Foreclosure against McLAUGHLIN. On April 23, 2014, Judge Vacchelli denied the eleventh of McLAUGHLIN’s motions to vacate, reopen or otherwise set aside the foreclosure judgment. The next day, McLAUGHLIN mailed packages containing documents related to his foreclosure proceedings to both the U.S. Treasury Department in Washington, D.C., and the Internal Revenue Service in Austin, Texas. The packages included IRS Forms 1099-OID and 1099-A for the 2014 tax year that falsely claimed that McLAUGHLIN had paid $332,204.25 to Judge Vacchelli and the Connecticut state courts. The packages also contained an IRS Form 1096 on which McLAUGHLIN stated and declared under the penalties of perjury that he had examined the submissions and that they were true, correct and complete, when, in fact, he knew that he had not made a payment of any kind to either Judge Vacchelli or the courts.
If convicted of the charges, MCLAUGHLIN faces a maximum term of imprisonment of eight years.
U.S. Attorney Daly stressed that an indictment 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 Treasury Inspector General for Tax Administration and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Henry Kopel.
Former Bankruptcy Attorney Admits to Stealing Millions from ClientsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PETER RESSLER, 70, of Woodbridge, waived his right to be indicted and pleaded guilty today before Senior U.S. District Judge Alfred V. Covello in Hartford to embezzling millions of dollars from his bankruptcy clients, and to related fraud offenses.
According to court documents and statements made in court, RESSLER, an attorney with a bankruptcy practice based in New Haven, defrauded numerous clients in various ways. First, RESSLER took retainers from at least 30 clients for various legal matters on their behalf, including protection under Chapters 7, 11, and 13 of the bankruptcy code. Although RESSLER represented that he would hold the funds in trust until he provided legal services, he used the monies for other expenses.
In addition, RESSLER required certain clients who were seeking a Chapter 11 or Chapter 13 reorganization to deposit funds and represented that such monies would be held in trust for purposes of the anticipated reorganization. RESSLER obtained the funds after he had filed formal bankruptcy actions, which created relevant bankruptcy estates for which he had a continuing duty to maintain client assets under his control and to give appropriate accountings to the U.S. bankruptcy court. RESSLER was entrusted with hundreds of thousands of dollars from at least 10 businesses involved with Chapter 11 reorganizations. Instead of holding the funds in trust, he used the monies for other purposes.
As part of both Chapter 11 and Chapter 13 filings, RESSLER submitted multiple documents to the bankruptcy court that represented the status of a debtor’s assets and liquidity, including the debtor-in-possession monthly operating reports. In various instances, RESSLER had already improperly dissipated a portion of a client/debtor’s assets and knew that operating reports filed for certain clients contained false representations, which misled both the bankruptcy court and creditors as to a debtor’s true financial condition. When asked directly in hearings as to whether certain assets existed in certain accounts, RESSLER falsely represented that certain assets existed, when he knew that they did not.
RESSLER also engaged in “work outs” where he would attempt to settle a client’s debts with creditors without relying on the protections of bankruptcy. As part of this process, RESSLER requested that his clients deposit with him funds and represented that he would hold the funds in trust and then use them to settle disagreements with financial institutions or other creditors, such as the IRS, or for some other purpose on behalf of his clients. The investigation revealed that RESSLER took $64,000 from a client purportedly to purchase property; $180,000 from a client to hold money in escrow; $45,000 from another client purportedly to buy back a home in foreclosure; $100,000 from a client to hold money in escrow; $97,000 from a client to hold money in escrow; $102,000 and $50,000 from two other clients purportedly to settle tax obligations with the IRS; at least $199,000 from a client to negotiate a settlement with the IRS; $141,000 from a client to settle debts with IRS and a lender; and $165,000 from a client purportedly to negotiate a loan modification with a lender. In each instance, RESSLER used the monies for other purposes.
In the spring of 2016, the U.S. bankruptcy court identified criminal conduct by RESSLER in cases involving debtors that were his clients. In one case, the debtor entrusted RESSLER with $450,000, which were proceeds of a legal settlement, to be held by RESSLER’s firm for the benefit of the debtor and its creditors. In a second case, the debtor entrusted RESSLER’s firm with approximately $321,409. In both cases, most of the deposited funds were used by RESSLER for other purposes than on behalf of the relevant clients.
In total, RESSLER misappropriated at least $3.4 million in client funds and used the money for personal and family living expenses, to cover the expenses of his practice, and to fund payments relating to other clients and other bankruptcy estates from which he had previously improperly taken monies.
RESSLER pleaded guilty to one count of wire fraud, two counts of embezzlement from a bankruptcy estate, and one count of bankruptcy fraud. Judge Covello scheduled sentencing for September 6, 2017, at which time RESSLER faces a maximum term of imprisonment of 35 years and a fine of up to approximately $6.8 million.
RESSLER has been released on a $100,000 bond since his arrest on April 25, 2016. He resigned from the Connecticut bar in March 2016.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Waterbury Man Sentenced to 27 Months in Prison for Distributing Fentanyl to Naugatuck Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AURELLE HUCKABEE, 22, of Waterbury, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 27 months of imprisonment, followed by three years of supervised release, for distributing fentanyl to an overdose victim. 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, in the early morning of July 7, 2016, Naugatuck Police and emergency medical personnel responded to a Naugatuck residence on a report of a suspected overdose. The victim, a 31-year-old male, was transported to the hospital where he was pronounced deceased. Investigators seized two bags of suspected heroin and/or fentanyl, as well as the victim’s cellphone, from the scene.
The Office of the Chief Medical Examiner subsequently determined that the victim died as a result of “acute fentanyl intoxication.”
The victim’s cellphone contained hundreds of text messages between the victim and HUCKABEE. The text messages revealed that HUCKABEE regularly supplied heroin to the victim in the weeks preceding the victim’s death.
HUCKABEE has been detained since his arrest on January 4, 2017. On March 9, 2017, he pleaded guilty to one count of distribution of heroin.
This matter was investigated by the DEA’s New Haven Tactical Diversion Squad and the Naugatuck Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
This case was prosecuted by Assistant U.S. Attorney Patrick F. Caruso.
Long Island Man Sentenced to Prison for Trading Guns for DrugsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SCOTT LIFF, 47, of East Williston, New York was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 18 months of imprisonment, followed by three years of supervised release, for selling guns in exchange for drugs.
According to court documents and statements made in court, on November 18, 2012, New Haven Police officers arrested an individual for criminal possession of a weapon. The individual said he purchased the firearm from an individual on the streets of Bridgeport. The gun was registered to LIFF. On December 24, 2013, Norwalk Police officers arrested an individual for a shooting. This individual also possessed a firearm registered to LIFF. Officers then interviewed LIFF, who falsely told them that the firearms had been stolen and that he had not reported their theft.
The investigation revealed that LIFF had a crack cocaine addiction during the time at which he owned the firearms. LIFF subsequently admitted to law enforcement that he had sold as many as 10 guns, including an assault rifle, to drug dealers in Bridgeport and elsewhere in exchange for crack cocaine.
On July 27, 2015, LIFF pleaded guilty to one count of possession of a firearm by an unlawful user of a controlled substance.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosive, Norwalk Police Department and New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Vanessa Richards.
Illinois Man Admits to Traveling to Connecticut to Engage in Sex with MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ARTURO CASTRO, 52, of Wilmette, Illinois, pleaded guilty yesterday in Bridgeport federal court to one count of use of an interstate facility to persuade a minor to engage in unlawful sexual activity.
According to court documents and statements made in court, in approximately December 2013, CASTRO began communicating with a 15-year-old female in Connecticut through “Chess with Friends,” and online app. Using the app’s chat option, CASTRO asked the minor victim to send him naked photographs of herself, and subsequently enticed the minor victim to create videos depicting the minor victim engaged in sexually explicit conduct and send those videos to CASTRO. In March 2014, CASTRO traveled from Illinois to Connecticut and engaged in illicit sexual activity with the minor victim.
CASTRO has been detained since his arrest on December 13, 2016.
CASTRO is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on August 28, 2017, at which time he faces a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
CASTRO is a citizen of Mexico and a lawful permanent resident of the U.S.
This investigation has been conducted by Homeland Security Investigations in New Haven and Chicago, and the Clinton (Conn.) Police Department. 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 Who Distributed Fentanyl Involved in Overdose of East Haddam Teen Pleads GuiltyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HECTOR RAUL CINTRON, also known as “G” and “Big G,” 23, of Hartford, pleaded guilty today in Hartford federal court 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, in the morning of March 19, 2016, Connecticut State Police and emergency medical personnel responded to a residence in East Haddam on the report of an “untimely death.” The victim, an 18-year-old male, was pronounced dead at the scene. At the scene, State Police seized the victim’s cell phone and multiple glassine bags containing powder residue. The investigation revealed that Kerry Scanlan, of Avon, arranged to purchase heroin from CINTRON in Hartford. On March 18, 2016, the victim drove to Avon, picked up Scanlan and then drove to Hartford to purchase heroin from CINTRON.
On April 4, 2016, the Office of the Chief Medical Examiner issued a report listing the victim’s cause of death as “acute fentanyl intoxication.”
On two occasions in November 2016, CINTRON sold approximately 200 bags of heroin to an individual working with law enforcement.
CINTRON was arrested on December 15, 2016.
CINTRON is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 20, 2017, at which time he faces a maximum term of imprisonment of 20 years. He is released on a $50,000 bond.
Scanlan pleaded guilty to a related charge and awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration, Connecticut State Police Statewide Narcotics Task Force East, and East Haddam Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Hartford Crack Dealer Sentenced to More Than 6 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHARLES JERNIGAN, also known as “CJ” and “Snooze,” 23, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 78 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine. Judge Thompson also ordered JERNIGAN to perform 50 hours of community service.
This matter stems from a joint investigation by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Vice, Intelligence and Narcotics Unit into gang-related narcotics trafficking in Hartford’s North End. JERNIGAN and others targeted during the investigation were affiliated with groups and gangs who have been involved in acts of violence. The investigation revealed that JERINGAN and others sold crack cocaine in the area of Edgewood Street and Albany Avenue. Between June and August 2015, law enforcement made controlled purchases of crack from JERNIGAN and his associates.
JERNIGAN has been detained since his arrest on September 17, 2015. On November 22, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 28 grams or more of cocaine base (“crack cocaine”).
JERNIGAN’s criminal history includes multiple drug-related convictions. He also is a victim of two gang-related shootings.
This matter was investigated by the Federal Bureau of Investigation, 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.
Rhode Island Man Admits to Traveling to Connecticut to Engage in Sex with MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NICHOLAS MURPHY, 27, of Exeter, R.I., pleaded guilty today in Hartford federal court to one count of traveling to engage in illegal sexual activity with a minor.
Accord to court documents and statements made in court, MURPHY communicated with a minor victim through online platforms including Facebook. The victim told MURPHY that she was 16 years old when, in fact, she was younger than 16, but older than 13. In May and June 2015, MURPHY travelled from Rhode Island to Connecticut to meet the victim. On at least one occasion during this time, MURPHY engaged in illicit sexual conduct with the minor victim in his truck.
On the evening of September 16, 2015, after communicating on Facebook, MURPHY drove from Rhode Island to Connecticut to meet the victim. MURPHY knew that the victim was sneaking out of her home without her parents’ knowledge to meet him. MURPHY picked up the victim in his truck and then drove to a secluded area where he and the victim engaged in illicit sexual conduct.
MURPHY is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 13, 2017, at which time he faces a maximum term of imprisonment of 30 years.
MURPHY was arrested on related state charges on May 9, 2016. He is released on a $150,000 bond.
This matter has been investigated by the Federal Bureau of Investigation, Plainfield Police Department, Rhode Island State Police and the U.S. Air Force’s Office of Special Investigations. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Physical Therapist Sentenced for Obstruction and Tax Fraud OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIELLE FAUX, 49, of Weston, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to two years of probation, the first six months of which FAUX must spend in home confinement, for obstruction and tax fraud offenses. Judge Underhill also ordered FAUX to perform 100 hours of community service and pay a $3,000 fine.
According to court documents and statements made in court, FAUX owned and operated Danielle Faux PT, LLC, a physical therapy clinic located at 27 Lois Street in Norwalk. In August 2009, a contractor for the Medicare program conducting an audit of FAUX’s physical therapy practice contacted FAUX and requested records of 40 claims for physical therapy that FAUX had submitted to Medicare. The requested records included appropriate documentation to support the services billed, including the physical therapy progress notes, physical therapy flow sheet/activity sheets, and any additional documentation verifying medical necessity for the physical therapy procedures. Because no patient progress notes or similar records existed that would support many of the Medicare claims, FAUX instructed a physical therapist working for her to create detailed notes in the patient files that were requested in the audit, and FAUX similarly created such records.
In addition, from 2008 through 2011, FAUX skimmed checks and cash proceeds from her physical therapy practice and did not declare the skimmed proceeds on her federal income tax returns. Through this conduct, FAUX avoided paying $77,640 in taxes over the four-year period.
Judge Underhill ordered FAUX to pay full restitution to the Internal Revenue Service.
On September 22, 2016, FAUX pleaded guilty to one count of obstruction of a federal audit, and one count of making false statement on a federal income tax return.
In a related civil matter, FAUX agreed to pay $50,000 to settle allegations that she and her practice submitted false records to the Medicare program in violation of the False Claims Act.
This investigation was conducted by the Federal Bureau of Investigation, U.S. Department of Health and Human Services – Office of the Inspector General, and Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorneys David J. Sheldon and Richard M. Molot.
New York Man Charged After Greenwich Overdose Sentenced to 16 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ISAIAH HART, 22, of Brooklyn, N.Y., was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 16 months of imprisonment, followed by three years of supervised release, for distributing heroin. Judge Shea also ordered HART to perform 96 hours of community service while he is on supervised release.
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, in the early morning of December 8, 2015, Greenwich Police officers and emergency medical personnel responded to a Greenwich residence on the report of an unresponsive man. The man, who was 26, was pronounced dead. Within the residence, officers located and found opened and unopened wax folds (“bags”) with a green colored label “Emerald City” stamped on them.
The Connecticut Department of Emergency Services and Public Protection’s Division of Scientific Services later analyzed the unopened bags and determined the powder contained heroin, and according to the Connecticut Chief Medical Examiner’s Office, the victim’s death was caused by acute heroin toxicity.
Investigators determined that, shortly before his death, the victim had contacted “Tony” to order heroin in response to a Craig’s List advertisement for “dog food.” The victim then drove from Greenwich to Brooklyn and purchased two bundles (20 bags) of heroin from HART for $185.
HART was arrested on a federal criminal complaint on April 14, 2016. On February 22, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
HART has related drug charges pending in Brooklyn stemming from his selling heroin, in bags stamped “Emerald City,” to an undercover law enforcement officer on December 8, 2015. He is scheduled to be sentenced on June 5 in King’s Country Supreme Court in Brooklyn and is expected to receive a two-year sentence.
HART, who had been released on bond, was remanded at the conclusion of today’s court proceeding.
This matter was investigated by the DEA’s New Haven Task Force and the Greenwich Police Department. The Task Force includes DEA agents and task force officers from the North Haven, East Haven, West Haven, New Haven, Hamden, Branford, Ansonia, Derby and Meriden Police Departments. U.S. Attorney Daly also acknowledged the significant assistance of the New York Police Department in this investigation.
This case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Manchester Man Convicted of Threatening Federal Probation OfficerRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found PETER J. SANTOS, 41, of Manchester, guilty of one count of threatening a federal official. The trial before U.S. District Judge Alvin W. Thompson began on May 30 and the jury returned the verdict this afternoon.
According to the evidence at 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.
Judge Thompson scheduled sentencing for August 29, 2017, at which time SANTOS faces a maximum term of imprisonment of six years.
This matter has been investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney John H. Durham.
Connecticut Business Owner Pleads Guilty to Export ViolationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that IMRAN KHAN, 43, of North Haven, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court to violating U.S. export law.
According to court documents and statements made in court, from at least 2012 to December 2016, KHAN and others were engaged in a scheme to purchase goods that were controlled under the Export Administration Regulations (“EAR”) and export those goods without a license to Pakistan, in violation of the EAR. KHAN conducted business as Brush Locker Tools or as Kauser Enterprises-USA. When asked by U.S. manufacturers about the end-user for a product, KHAN either informed the manufacturer that the product would remain in the U.S., or he completed an end-user certification indicating that the product would not be exported.
After the products were purchased, they were shipped by the manufacturer to KHAN’s North Haven residence or Cerda Market in New Haven, a business owned by KHAN. The products were then shipped to Pakistan on behalf of either the Pakistan Atomic Energy Commission (“PAEC”), the Pakistan Space & Upper Atmosphere Research Commission (“SUPARCO”), or the National Institute of Lasers & Optronics (“NILOP”), all of which were listed on the U.S. Department of Commerce Entity List. KHAN never obtained a license to export any item to the designated entity even though he knew that a license was required prior to export.
KHAN pleaded guilty to one count of violating the International Emergency Economic Powers Act. In pleading guilty, KHAN specifically admitted that, between August 2012 and January 2013, he procured, received and exported to PAEC an Alpha Duo Spectrometer without a license to do so.
KHAN is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on August 25, 2017, at which time he faces a maximum term of imprisonment of 20 years. KHAN has been released on a $100,000 bond since he was arrested on December 13, 2016.
“The U.S. Attorney’s office in Connecticut is committed to working with our law federal law enforcement partners to ensure that sensitive technology, manufactured in the U.S. and elsewhere, does not fall into the wrong hands,” said U.S. Attorney Deirdre Daly. “Repeated violations of our export laws will be prosecuted to the full extent of the law.”
“The illegal exportation of sensitive technology to prohibited entities such as PAEC, SUPARCO and NILOP, poses a significant threat to our national security,” said Leigh-Alistair Barzey, Special Agent-in-Charge of the Defense Criminal Investigative Service (DCIS), Northeast Field Office. “Today’s guilty plea demonstrates DCIS’s ongoing commitment to work in partnership with the DOJ, FBI, HSI, Commerce Export Enforcement and the Postal Inspection Service, to protect our national security by prosecuting those who violate our export laws.”
This matter is being investigated by the Defense Criminal Investigative Service, Federal Bureau of Investigation, Homeland Security Investigations, U.S. Postal Inspection Service and the U.S. Department of Commerce’s Office of Export Enforcement. The case is being prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
Owner of Defunct Food Distribution Business Pleads Guilty to Defrauding Restaurant GroupsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MARK BERLIN, 63, of Boca Raton, Florida, waived his right to be indicted and pleaded guilty yesterday in Bridgeport federal court to one count of wire fraud related to his defrauding three restaurant groups of more than $3.5 million.
According to court documents and statements made in court, BERLIN owned and operated Fairfield Food Services, LLC, a Bridgeport-based food distribution business that bought meat, fish and other foods from wholesale vendors and then sold the items to restaurants and retail food distributors (“retail victims”). On a routine basis, BERLIN met with representatives for the retail victims to pitch them specific sales opportunities. Between April 2012 and April 2015, BERLIN made various misrepresentations to secure the sales, including claiming that he had arrangements with wholesale suppliers to obtain “futures contracts” from the wholesalers, and that the retail victims could “lock in” low prices if they paid for products in advance with delivery at a later date. BERLIN regularly told the retail victims that he had a “great deal” on particular products and the customers had to pay him fast in order to obtain the deals. BERLIN provided the retail victims with “Bill and Hold” invoices purportedly reflecting specific monies to be paid to the wholesale suppliers for products at the prices indicated. The retail victims then paid the “Bill and Hold” invoices in full with an understanding that the products or the futures contracts for products were being purchased from the suppliers.
The investigation revealed that BERLIN did not have “locked in” prices or “futures contracts” with wholesale suppliers, and BERLIN frequently used retail victims’ payments simply to cover his business’s immediate cash flow needs. In fact, instead of paying wholesalers before products were delivered, BERLIN typically did not pay the wholesalers for 30 or 60 days after products were delivered.
By April 2015, BERLIN was unable to keep the scheme afloat and stopped providing products to the retail victims. Shortly thereafter, Fairfield Food Services declared bankruptcy and closed its business. The Fairfield Food Services’ bankruptcy filing lists a total of approximately $5.3 million owed to three restaurant groups that paid BERLIN in advance for products, and hundreds of thousands of dollars owed to wholesale suppliers for products for which Fairfield Food Services had already taken delivery.
In pleading guilty, BERLIN contends that not all of the approximately $5.3 million owed to his retail victims was obtained by fraud. The government’s position is that BERLIN obtained at least $3.5 million and as much as $5.3 million by fraud.
BERLIN is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on August 25, 2017, at which time he faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
New Milford Man Involved in Extortion Scheme Sentenced to 30 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HOWARD HAMMER, 45, of New Milford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by three years of supervised release, for his role in an extortion scheme.
According to court documents and statements made in court, in late December 2015 to early January 2016, James Broderick, of New Milford, lent an individual approximately $1,500 with an understanding that the individual was required to pay Broderick $1,500, plus an additional $500 in interest, within four days of the initial loan. When the individual failed to pay the loan within four days, Broderick asked HAMMER to assist him in collecting on the loan. HAMMER then sent text messages to the victim that threatened harm to the victim if he failed to pay his debt. HAMMER took screen shots of the threatening text messages and forwarded them to Broderick. HAMMER and Broderick also discussed taking the victim’s car either as payment for the debt or as punishment for failure to pay the debt.
On January 25, 2016, members of the New Milford Police Department received a 911 call and responded to a local hotel where they found the victim of this extortion scheme, beaten and bloodied, in a room at the hotel. The victim had been stabbed eight times in back, causing internal injuries, and had suffered severe fractures to his skull and facial bones. The investigation revealed that members of the Hells Angels motorcycle club had stabbed the victim and beaten him with a hammer in connection with this extortion scheme.
HAMMER has been detained since his arrest on May 27, 2016. On December 2, 2016, he pleaded guilty to one count of conspiracy to participate in the collection and attempted collection of an extension of credit by extortionate means.
Broderick pleaded guilty to the same charge on December 7, 2016. He awaits sentencing.
This matter has been investigated by the FBI Violent Crime Task Force, New Milford Police Department and Connecticut State Police Western District Major Crime Squad. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
Postal Clerk Charged with Stealing MailRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging ANA GUITY, 30, of West Haven, with three counts of theft of mail matter by a U.S. postal employee.
The indictment was returned on May 18, 2017. GUITY appeared yesterday before U.S. Magistrate Judge William I. Garfinkel in Bridgeport, entered a plea of not guilty to the charges and was released on a $25,000 bond.
As alleged in the indictment and statements made in court, GUITY was employed by the U.S. Postal Service as a window clerk at post offices in Westbrook and Chester. In late 2016 and early 2017, GUITY stole numerous letters from the mail, primarily greeting cards that she suspected would contain gift cards or cash.
If convicted, GUITY faces maximum term of imprisonment of five years and a fine of up to $250,000 on each count of the indictment.
U.S. Attorney Daly stressed that an indictment 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.
GUITY is a citizen of Honduras and a lawful permanent resident of the U.S.
This matter is being investigated by the U.S. Postal Service Office of Inspector General and is prosecuted by Assistant U.S. Attorney Ray Miller.
Hartford Man Charged with Distributing Heroin and Fentanyl to Rocky Hill Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EDWIN ESCRIBANO, also known as “Bebo,” 25, of Hartford, was arrested yesterday on a federal criminal complaint charging him with distributing heroin and fentanyl. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
ESCRIBANO appeared yesterday before U.S. Magistrate Judge Donna F. Martinez in Hartford and was ordered detained pending a detention hearing currently scheduled for June 2 at 12:30 p.m.
As alleged in court documents, on September 14, 2016, the Rocky Hill Police Department and emergency medical personnel responded to a restaurant on a report of a male who had overdosed and was not breathing. The male, who was 29 years old, was pronounced deceased at the scene. Officers seized drug and non-drug evidence, including a cellophane tourniquet and syringe in the restaurant bathroom that ultimately tested positive for the presence of heroin and fentanyl. The investigation, which included analysis of the victim’s cellphone, revealed that ESCRIBANO had provided the drugs to the victim shortly before the victim’s death.
The complaint charges ESCRIBANO with possession with intent to distribute, and distribution of fentanyl and heroin, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly 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 and the Rocky Hill Police Department. This case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Gang Member Sentenced to More Than 9 Years in Federal Prison for Racketeering and Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROY ISIAH JACKSON, also known as “I,” 22, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 110 months of imprisonment, followed by five years of supervised release, for racketeering and firearm offenses stemming from his participation in a violent New Haven-based street gang.
This matter stems from an investigation into a criminal enterprise known as the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang that operated in New Haven from 2011 through 2015, which was engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. In addition to distributing crack cocaine and other narcotics in and around New Haven, members and associates of the RSGB transported crack and heroin to Bangor, Maine, and sold the drugs in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms, brought the firearms back to New Haven and distributed them to gang members. To date, approximately 22 members and associates of the Connecticut faction of the RSGB been charged and convicted of federal narcotics and firearms offenses in Connecticut and Maine.
On February 14, 2017, JACKSON, a member of the RSGB, pleaded guilty to one count of engaging in a pattern of racketeering activity, one count of attempted assault with a dangerous weapon in aid of racketeering, and one count of carrying a firearm during and in relation to a crime of violence.
In pleading guilty, JACKSON admitted that, on March 19, 2012, he was involved in an exchange of gunfire with a rival gang on South Genesee Street in New Haven. Although approximately 30 shots were fired during the incident, no one was injured. He also admitted that, on May 30, 2012, he and others, armed with firearms, committed a home invasion robbery of a residence located on Putnam Street in New Haven, during which they threatened the residents and removed a safe containing an amount of cash from the home.
JACKSON also participated in the trafficking of crack cocaine in Connecticut and Maine, and he sold crack in Maine in exchange for firearms that he and others transported to Connecticut.
This investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Robert Spector, Peter Markle and Jocelyn Kaoutzanis. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
East Hartford Man Charged with Sex Trafficking of a MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging ALEXANDER PEDRAZA, 26, of East Hartford, with one count of sex trafficking of a minor.
The indictment was returned on May 24, 2017, and was unsealed on May 26 when PEDRAZA was arrested. Following his arrest, PEDRAZA appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and entered a plea of not guilty to the charges. PEDRAZA was ordered detained pending a bond hearing that will be scheduled for later this week.
According to the indictment, PEDRAZA recruited, harbored and transported a minor victim, who was under the age of 18, to engage in commercial sex acts between approximately March 5 and March 12, 2017.
If convicted of the offense, PEDRAZA faces a mandatory minimum term of imprisonment of 10 years and a maximum term of life imprisonment.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the East Windsor Police Department, through the Connecticut Human Trafficking Task Force. The case is being prosecuted by Assistant U.S. Attorneys Neeraj N. Patel and Sarala V. Nagala.
Bristol Woman Convicted of Defrauding Medicaid ProgramRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, and Chief State’s Attorney Kevin T. Kane today announced that on May 26, a jury in Bridgeport convicted RONNETTE BROWN, 44, of Bristol, on 23 counts of health care fraud and one count of conspiracy to commit health care fraud. The trial before U.S. District Judge Victor A. Bolden began on May 22 and the jury returned a verdict of guilty on all counts of the indictment on Friday afternoon.
According to the evidence at trial, Brown owned and operated WeMPACT, LLC, a social services business with offices in Bristol and Torrington. Between August 2010 and April 2014, Brown billed Medicaid for psychotherapy services that were not performed. In addition to that scheme, Brown separately conspired with Beverly Coker and another unnamed individual to bill Medicaid for psychotherapy services that represented Coker had performed the services when, in fact, the services were provided by unlicensed individuals, or were not provided at all.
According to court documents and statements made in earlier court proceedings, Coker, a licensed clinical social worker, owned and operated New Beginnings Family Center, LLC, in Hartford. On April 8, 2016, Coker, of Windsor, waived her right to indictment and pleaded guilty to one count of health care fraud, admitting that between October 2010 and November 2011, she engaged in a scheme to defraud Medicaid by permitting Brown and another individual to bill Medicaid for psychotherapy services using Coker’s Medicaid provider number. The services were either performed by unlicensed individuals or not performed at all. Under the scheme, Coker kept 30 percent of the proceeds, and paid the remaining 70 percent to Brown and the other individual. As part of her plea, Coker admitted to defrauding Medicaid of approximately $214,555 through the scheme.
Judge Bolden scheduled sentencing for August 18, 2017, at which time Brown faces a maximum term of imprisonment of 10 years on each count of health care fraud, and a maximum term of imprisonment of five years on the conspiracy count. She has been released on a $100,000 bond since her arrest on May 23, 2016.
Coker awaits sentencing. Three other individuals were charged and convicted of health care fraud offenses stemming from this investigation.
“This conviction is the latest example of the successful efforts of the Connecticut Medicaid Fraud Working Group,” said Attorney Daly. “Through that group, federal and state law enforcement and representatives of state agencies combine our efforts to detect, investigate, and prosecute Medicaid fraud through criminal and civil prosecutions. In this particular case, federal agents worked alongside our partners from the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office, and were supported by the State Attorney General’s Office and the Connecticut Departments of Health (DPH) and Social Services (DSS). This seamless coordination ensures that the Connecticut Medicaid program is protected from unscrupulous providers. We look forward to continuing the teamwork with our state and federal partners to ensure that every dollar spent by the Medicaid program goes to provide much-needed medical services to Medicaid clients.”
“Being a health care provider in the Medicaid program is a privilege, not a right,” said HHS-OIG Special Agent in Charge Coyne. “When Ronnette Brown conspired to enrich herself by billing the government for services never provided or provided by unqualified professionals, she violated the basic trust that taxpayers extend to healthcare professionals. Our agents continue to work with Medicaid Fraud Control Units to root out such fraud schemes, which undermine the financial health of government health care programs and the public’s trust in medical professionals.”
“This is yet another example of how much we can achieve when agencies at all levels of government work together in collaboration,” said Chief State’s Attorney Kane. “This conviction will hopefully put all health care providers on notice that we are committed at all levels of government to detecting, investigating and prosecuting fraud that steals scarce resources from the programs that serve people in need.”
This matter has been jointly investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office, with assistance from the Connecticut Attorney General’s Office. U.S. Attorney Daly also thanked the Connecticut Department of Social Services for their role in identifying the fraudulent scheme and supporting the investigation and prosecution of the case.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
This matter is being prosecuted by Assistant U.S. Attorneys David J. Sheldon and Christopher W. Schmeisser.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Virginia Man Admits to Falsely Certifying Bridge Inspection VehiclesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CAROL “CASEY” SMITH, 56, of Chester, Virginia, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Stefan R. Underhill in Bridgeport to a federal charge related to his false certification of bridge inspection vehicles.
According to court documents and statements made in court, Under Bridge Inspection (“UBI”) vehicles are vehicles that contain a moveable boom with a platform. The vehicles are used to conduct inspections of bridges by positioning the vehicle on top of the bridge and, using the boom, lifting a platform carrying inspectors alongside or beneath a bridge deck. “Company A” rents or leases bridge access equipment, including UBI vehicles, to engineering companies and government agencies for use on bridge inspection and bridge maintenance projects. Company A’s UBI vehicles travel on interstate highways to job locations throughout the U.S. Company A has several locations, including one in Connecticut.
SMITH was the president and chief surveyor for Virginia-based Martin Enterprizes, Inc. (“MEI”). Between January 2012 and January 2015, SMITH falsely represented that he, as the chief surveyor for MEI, examined the UBI vehicles in Company A’s fleet on an annual basis. During that time, SMITH created 165 Certificates of Unit Text/Examination of Material Handling Device (the “Certificate of Inspection”) for UBI vehicles in Company A’s fleet. As part of the Certificate of Inspection, SMITH verified that he personally examined the specified UBI vehicle and that the UBI vehicle met federal requirements. SMITH also issued 165 annual stickers representing that he had inspected the UBI Vehicles, and he knew that an employee or employees of Company A would affix the stickers to the UBI vehicles, and that those UBI vehicles would be driven on interstate highways and used on jobs throughout the U.S., including Connecticut.
Between 2012 and 2015, in exchange for the Certificates of Inspection for the UBI vehicles, as well as other vehicles in its fleet, Company A paid SMITH a total of $76,400.
SMITH pleaded guilty to one count of making a false statement, which carries a maximum term of imprisonment of five years. A sentencing date is not scheduled.
This matter is being investigated by the U.S. Department of Transportation – Office of Inspector General and the U.S. Department of Labor – Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
New Haven Man Sentenced to 10 Years in Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HALBY LOPEZ, also known as “Harv,” 41, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 120 months of imprisonment, followed by five years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, in the fall of 2015, the DEA New Haven Task Force initiated an investigation into a cocaine trafficking organization headed by LOPEZ. Omar Polanco-Mendez and Bernardo Roman-Rolan were the second and third in command, respectively. The investigation revealed that LOPEZ, Polanco-Mendez and Roman-Rolan were obtaining bulk quantities of cocaine from multiple suppliers and redistributing the cocaine to a network of New Haven-area street-level dealers. The investigation included court-authorized wiretaps, controlled purchases of drugs and the seizure of multiple kilograms of cocaine.
Between January 2016 and March 2016, LOPEZ, with the assistance of Polanco-Mendez, arranged for the delivery of approximately seven kilograms of cocaine. LOPEZ used the La Familia Barber Shop located on Howard Avenue in New Haven, which he owned and operated, to distribute cocaine.
On March 24, 2016, a grand jury in New Haven returned a 13-count indictment charging LOPEZ, Polanco-Mendez, Roman-Rolan and seven other individuals with various narcotics offenses. All of the defendants pleaded guilty.
LOPEZ has been detained since his arrest on March 11, 2016. On September 14, 2016, he pleaded guilty to one count of conspiracy to distribute more than five kilograms of cocaine.
LOPEZ’s criminal history includes convictions for drug trafficking, weapons possession and burglary.
On February 24, 2017, Polanco-Mendez was sentenced to 120 months of imprisonment. On March 2, 2017, Roman-Rolan was sentenced to 68 months of imprisonment.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This matter is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Jennifer Laraia.
Waterbury Man Sentenced to 6 Years in Prison for Distributing Heroin Involved in Fatal OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JAMES HAYES, also known as “T.Y.,” 33, of Waterbury, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 72 months of imprisonment, followed by five years of supervised release, for distributing heroin that contributed to the overdose death of a Monroe woman 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 June 16, 2016, Monroe Police and emergency medical personnel responded to a residence in Monroe on report of a possible heroin overdose and found an unresponsive 32-year-old female on the floor of her bedroom. The victim was pronounced deceased shortly thereafter. Investigators seized various items that were located in the bedroom, including several empty wax folds and one wax fold that contained suspected heroin. The investigation revealed that HAYES distributed heroin that was consumed by the victim shortly before her death.
HAYES has been detained since his arrest on August 22, 2016. On January 20, 2017, he pleaded guilty to one count of distribution of heroin.
Judge Bryant ordered HAYES to forfeit $710 in cash seized from him at the time of his arrest.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, Monroe Police Department and Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorney Robert M. Spector.
Meriden Man Sentenced to 37 Months in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JULIUS NELSON, 32, of Meriden, was sentenced yesterday by Senior U.S. District Judge Alfred V. Covello in Hartford to 37 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department that targeted a drug trafficking organization operating in Hartford’s North End that was distributing crack and powder cocaine. The investigation revealed that David Gil-Grande, of Manchester, received shipments of cocaine, secreted in sealed coffee cans, from Puerto Rico. He then supplied the cocaine to Anthony Shelton, also known as “Pretty,” and others, who converted much of the cocaine into crack and distributed both forms of the drug in the area of Barbour Street in Hartford. Shelton supplied crack to NELSON who then sold the drug to his own customers.
Twenty individuals were charged as a result of the investigation.
NELSON was arrested on February 2, 2016. On February 7, 2017, he pleaded guilty to one count of possession with intent to distribute cocaine base (“crack cocaine”).
NELSON’s criminal history includes convictions for felony assault, conspiracy to commit robbery, and multiple convictions for selling drugs.
Gil-Grande and Shelton have pleaded guilty to related charges. On January 31, 2017, Gil-Grande was sentenced to 70 months of imprisonment. Shelton awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and the Drug Enforcement Administration have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Attorney Sentenced to 3 Years in Federal Prison for Participating in Life Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID QUATRELLA, 62, of Trumbull, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 36 months of imprisonment, followed by three years of supervised release, for participating in a scheme to defraud insurance companies into issuing insurance policies on the lives of elderly people for the benefit of QUATRELLA and other investors. The scheme is known as a stranger-originated life insurance (“STOLI”) scheme.
According to court documents and statement made in court, between approximately June 2008 and January 2016, QUATRELLA and others, including insurance brokers based in California, New Jersey and Florida, assisted elderly persons in applying for multimillion dollar life insurance policies. QUATRELLA, who is an attorney, and his co-conspirators offered the insureds the promise of free life insurance for two years, after which QUATRELLA and his co-conspirators would attempt to sell the policy and provide a share of the proceeds to the insured. The insured was not obligated to pay anything and was commonly told that the premiums were being borrowed from a third-party source. As part of the scheme, QUATRELLA and others recruited investors to finance the payment of premiums on the life insurance policies, with the understanding that the investors would earn a profit upon the sale of the policy.
QUATRELLA and his co-conspirators then caused to be submitted to various life insurance providers applications containing false and misleading information, and which failed to disclose the third-party premium funding arrangements for the policies.
QUATRELLA and his co-conspirators received large commissions from the providers as a result of the issuance of insurance policies on the lives of the insureds, and QUATRELLA personally profited approximately $272,000 as a result of the scheme. QUATRELLA and his co-conspirators attempted to sell the life insurance policies to life settlement investment funds or brokers but, in certain cases, they could not find a buyer and the policies lapsed.
Although the insurance companies were exposed to a total loss of nearly $15 million as a result of this scheme, no death benefits were paid on any of the policies.
On January 4, 2017, QUATRELLA pleaded guilty to one count of conspiracy to commit wire fraud. He also has agreed to forfeit $272,000, and a restitution order will be entered after further court proceedings.
QUATRELLA has voluntarily surrendered his law license.
QUATRELLA, who is released on bond, was ordered to report to prison on July 28, 2017.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Avi M. Perry.
Bridgeport Man Pleads Guilty to Distributing Heroin Involved in Stratford Woman's OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAMON L. KILLINGS, also known as “Blade,” 39, of Bridgeport, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of 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, in the early morning of December 4, 2016, Stratford Police responding to a 911 call encountered a 33-year-old female who had died from a suspected drug overdose in the bedroom of a residence in Stratford. Responding officers collected wax folds containing suspected heroin, a hypodermic needle and other drug paraphernalia from the bedroom. The investigation revealed that the victim’s boyfriend purchased heroin from KILLINGS the previous evening, and then he and the victim injected the heroin he had purchased.
In December 2016 and January 2017, law enforcement made controlled purchases of heroin from KILLINGS.
On January 18, 2017, KILLINGS was arrested on a federal criminal complaint. At the time of his arrest, he possessed quantities of heroin and crack cocaine.
KILLINGS is scheduled to be sentenced by Senior U.S. District Judge Alfred V. Covello on August 16, 2017, at which time he faces a maximum term of imprisonment of 20 years. He is released on a $20,000 bond.
This matter has been 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 Norwalk, Stamford, Stratford, Milford and Bridgeport Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
New Haven Man Sentenced to 2 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SHAQUILLE PEARSON, 23, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 24 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 June 30, 2016, officers from the New Haven Police Department executed a search and seizure warrant at PEARSON’s residence on Button Street in New Haven. In the residence, an officer encountered PEARSON who was holding a sneaker that contained a loaded 9mm pistol. A subsequent search of the residence also revealed a .380 handgun that was hidden in another sneaker.
Prior to June 2016, PEARSON was convicted of state felony offenses, including carrying a dangerous weapon and third degree burglary. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
PEARSON has been detained since his arrest on June 30, 2016. On March 1, 2017, he pleaded guilty to one count of possession of a firearm by a convicted felon.
Chief Judge Hall ordered PEARSON not to interact or communicate with any members of the “Slut Wave” street gang while he is on supervised release.
This matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Peter D. Markle.
Wethersfield Man Sentenced to Prison for Distributing Heroin Involved in 19-Year-Old's Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARLOS CARRILLO, 20, of Wethersfield, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to six months of imprisonment, followed by three years of supervised release, for distributing heroin involved an overdose death of a Wethersfield teenager last summer. Judge Covello also ordered CARRILLO to pay restitution of $10,524.02 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 July 16, 2016, Wethersfield Police and emergency medical personnel responded to a residence in Wethersfield and found an unresponsive 19-year-old female on a bed in a bedroom of the home. The victim was pronounced deceased at the scene. Investigators located a torn wax paper packet under the female’s body and another packet on the nightstand. Subsequent laboratory testing of the contents of the packets confirmed the presence of heroin.
The investigation revealed that earlier on July 16, 2016, the victim and a juvenile friend met with CARRILLO in the parking lot of a Wethersfield motel and purchased two bags of heroin from CARRILLO for 10 dollars.
CARRILLO was arrested on a federal criminal complaint on August 2, 2016. On January 26, 2017, he pleaded guilty to one count of distribution of heroin.
This matter was investigated by the Drug Enforcement Administration and the Wethersfield Police Department. The case was prosecuted by Assistant U.S. Attorneys Jennifer P. Laraia and Michael E. Runowicz.
Singapore Shipping Company Admits to Probation ViolationRead the Press Release
Hartford, Conn. – Singapore-based ODFJELL ASIA II PTE LTD (“OAII”), which was convicted in 2014 of violating the Act to Prevent Pollution from Ships, has admitted to violating the conditions of its probation, announced Deirdre M. Daly, U.S. Attorney for the District of Connecticut, and Jeffrey H. Wood, Acting Assistant Attorney General of the Environment and Natural Resources Division (ENRD). As a result, OAII’s term of probation, which was scheduled to conclude this month, was extended by one year, and the company has agreed to additional probation conditions.
On May 14, 2014, U.S. District Judge Vanessa L. Bryant in Hartford sentenced OAII to a three-year term of probation and a total criminal penalty of $1.2 million dollars for violating the Act to Prevent Pollution from Ships (“APPS”). The APPS is the U.S. law that implements the International Convention for the Prevention of Pollution from Ships (“MARPOL”). A special condition of probation required OAII to implement remedial environmental measures as part of an Environmental Management System Plan (EMS/P). As part of the EMS/P, OAII was required to implement enhanced procedures for internal reporting of violations.
On May 16, 2016, a crewmember reported to OAII that, while he was serving onboard OAII's vessel Bow Santos, there may have been a MARPOL compliance issue involving the disposal of machinery-space bilge water in December 2015. OAII reported the possible MARPOL compliance issue to U.S. authorities and conducted an internal investigation. During OAII’s internal investigation, the vessel’s chief engineer, Oswaldo Dela Torre Salazar, denied any knowledge of, or involvement in, any MARPOL violations. Upon completion of its internal investigation, OAII was unable to determine whether a MARPOL violation occurred.
The U.S. and OAII agree that there was a breakdown in OAII’s internal reporting system in that it took more than six months before any crewmember of the Bow Santos reported the alleged incident to OAII. OAII also agrees that the breakdown in OAII’s internal reporting system constitutes a probation violation because the EMS/P’s internal reporting system had not been fully implemented as required by the special conditions ordered by the court.
As a result of this violation, on May 15, 2017, Judge Bryant ordered that OAII’s term of probation be extended for one year. During the additional year of probation, the Bow Santos will undergo an environmental audit, and OAII must notify the U.S. Probation Office, the U.S. Department of Justice and the U.S. Coast Guard if Oswaldo Dela Torre Salazar is serving onboard an OAII vessel bound for a U.S. port.
This case was investigated by the U.S. Coast Guard Sector Long Island Sound, Coast Guard Investigative Service, and Coast Guard office of Investigations and Analysis (CG-INV). This matter is being prosecuted by Assistant U.S. Attorney Ray Miller from the U.S. Attorney’s Office for the District of Connecticut, and Trial Attorney Stephen Da Ponte in the Environmental Crimes Section of the Environment and Natural Resources Division of the Department of Justice.