District of Connecticut
Press releases recorded for this federal judicial district.
Bank Manager Admits Stealing More Than $500K from Customer AccountsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARRIE CAESAR, 46, of New Britain, pleaded guilty today in New Haven federal court to embezzling funds from Webster Bank Corporation.
According to court documents and statements made in court, CAESAR was a long-time employee of Webster Bank where she served in a variety of roles, including bank teller, account manager and, most recently, as manager of the Avon branch office. Between 2003 and 2016, CAESAR withdrew at least $535,600 from account holders’ certificate of deposit (CD) accounts at Webster Bank, without the knowledge or consent of the account holders, used the embezzled funds for her own purposes, and took steps to conceal her misconduct.
CAESAR targeted primarily six customers, all of whom were at least 79 years old and with whom she had developed a relationship as an account manager.
CAESAR pleaded guilty to one count of theft, embezzlement and misapplication by a bank officer and employee, an offense that carries a maximum term of imprisonment of 30 years. She is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on May 8, 2017.
CAESAR is released on a $150,000 bond.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Stamford Man Sentenced to More Than 5 Years in Federal Prison for Illegally Possessing FirearmRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHARLES BARNES, 35, of Stamford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 63 months of imprisonment, followed by three years of supervised release, for illegally possessing a loaded firearm.
According to court documents and statements made in court, on December 29, 2015, Stamford Police stopped a car BARNES was driving. A subsequent search of the vehicle revealed a Berretta 9 millimeter pistol loaded with 12 rounds of ammunition, which was found in the glove box. The search also revealed 16 bags of marijuana packaged for sale.
Prior to December 2015, BARNES had sustained a felony conviction for possession of marijuana with intent to sell, and two felony convictions for second degree assault. 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.
BARNES has been detained since December 29, 2015. On November 17, 2016, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Stamford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Indictment Charges Drug Company Manager with Engaging in a Kickback Scheme Related to Fentanyl Spray PrescriptionsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on February 8, 2017, a federal grand jury in New Haven returned an indictment charging JEFFREY PEARLMAN, 49, of Edgewood, N.J., with engaging in a kickback scheme that defrauded federal healthcare programs.
According to the indictment, from approximately September 2012 until December 2015, PEARLMAN was employed by Insys Therapeutics, an Arizona-based pharmaceutical company that manufactured and sold Subsys, a fentanyl-based sublingual spray that was approved by the Food and Drug Administration solely for the management of breakthrough pain in cancer patients. The company first hired PEARLMAN as a sales representative and subsequently promoted him to the position of District Sales Manager (DSM). As a DSM, PEARLMAN was responsible for managing the company’s sales representatives who called on licensed healthcare providers in Connecticut, New York, New Jersey and Rhode Island.
The indictment alleges that PEARLMAN and the sales representatives he managed induced certain physicians, advanced practice registered nurses (APRNs) and physicians’ assistants to prescribe Subsys by paying them to participate in hundreds of sham “Speaker Programs.” The Speaker Programs, which were typically held at high-end restaurants, were ostensibly designed to gather licensed healthcare professionals who had the capacity to prescribe Subsys and educate them about the drug. In truth, the events were usually just a gathering of friends and co-workers, most of whom did not have the ability to prescribe Subsys, and no educational component took place. “Speakers” were paid a fee that ranged from $1,000 to several thousand dollars for attending these dinners. At times, the sign-in sheets for the Speaker Programs were forged, with PEARLMAN’s knowledge, so as to make it appear that the programs had an appropriate audience of healthcare professionals.
The indictment alleges that Insys Therapeutics paid one Connecticut healthcare provider who participated in these sham Speaker Programs a total of approximately $83,500 in illegal kickbacks in order to induce the provider to prescribe the company’s fentanyl spray over similar medications. PEARLMAN authorized these payments.
It is alleged that PEARLMAN personally profited from this scheme through inflated quarterly bonuses he received that were based in large part on the sales results of the sales representatives he managed.
It is further alleged that this illegal kickback scheme caused millions of dollars of losses to federal healthcare programs.
The indictment charges PEARLMAN with one count of conspiracy to violate the anti-kickback law, an offense that carries a maximum term of imprisonment of five years and a fine of up to $250,000.
PEARLMAN was arrested a criminal complaint on September 29, 2016. He is released on a $200,000 bond.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation, with the assistance of the Drug Enforcement Administration’s Tactical Diversion Squad. The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Richard M. Molot.
U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force (203) 785-9270 or 1-800-HHS-TIPS.
Gang Member Pleads Guilty to Robbery and Firearm Charges Related to 2011 MurderRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on February 8, 2017, TREVOR MURPHY, also known as “Snookie,” 28, of West Haven, pleaded guilty before Chief U.S. District Judge Janet C. Hall in New Haven to federal robbery and firearm charges related to the murder of Joseph Zargo on December 23, 2011.
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. MURPHY was a member of RSGB.
According to court documents and statements made in court, MURPHY ordered a quantity of ecstasy from Joseph Zargo as part of a plan to rob him of drugs and cash. Just after midnight on December 23, 2011, MURPHY met Zargo on Houston Street in New Haven. After MURPHY took ecstasy pills from Zargo, he pulled out a firearm. When Zargo reached into his pocket, MURPHY shot Zargo once in the chest. Zargo died later that morning.
MURPHY pleaded guilty to one count of interference with commerce by robbery, an offense that carries a maximum term of imprisonment of 20 years, and one count of using a firearm during and in relation to a crime of violence, an offense that carries a consecutive term of imprisonment of at least 10 years and a maximum term of imprisonment of life.
Under the terms of a binding plea agreement, if accepted by the court, the parties have agreed that a term of imprisonment of 360 months is an appropriate sentence in this case.
Chief Judge Hall scheduled sentencing for May 3, 2017.
MURPHY has been detained since his arrest on September 30, 2015.
This investigation is being 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.
Groton Man Sentenced to More Than 5 Years in Federal Prison for Gun and Drug OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LORENZO MALCOLM, 28, of Groton, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 66 months of imprisonment, followed by three years of supervised release, for gun and drug offenses.
According to court documents and statements made in court, on March 1, 2016, MALCOLM was arrested in Groton after a search of his person revealed five individually-wrapped packages of cocaine, one baggie containing crack cocaine and two individually-wrapped baggies of heroin. In addition, a search of a vehicle in which MALCOLM had been a passenger revealed a gym bag that contained a .22 caliber Sig Sauer pistol and seven rounds of ammunition, and a small backpack that contained more than 300 grams of heroin, marijuana and drug paraphernalia.
MALCOLM has been detained since his arrest. On November 9, 2016, he pleaded guilty to one count of possession with intent to distribute cocaine, and one count of possession of a firearm in furtherance of a drug trafficking crime.
This investigation has been conducted by the Town of Groton Police Department and the Regional Community Enhancement Task Force. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Avon Man Pleads Guilty to Federal Charges Stemming from Hartford Soccer Stadium ProjectRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MITCHELL ANDERSON, 52, of Avon, pleaded guilty today before U.S. District Court Judge Stefan R. Underhill in Bridgeport to fraud and money laundering charges stemming from a scheme involving the redevelopment of Dillon Stadium in Hartford and a plan to bring a professional soccer team to the city.
According to court documents and statements made in court, in September 2014, the City of Hartford entered into a professional services agreement with ANDERSON’s company, Premier Sports Management Group (“PSMG”), to secure a professional soccer team and to develop a new, 9,000 seat facility at the Dillon Stadium location. Under the terms of the agreement, PSMG was entitled to receive $775,000 for serving as the project manager for the $12 million plan. In February 2015, ANDERSON joined with a business partner who agreed to be the majority owner of the professional soccer team. ANDERSON and his business partner represented to various city officials that PSMG and the partner’s consulting company had merged for purposes of completing the Dillon Stadium project and securing the professional soccer team.
Beginning in approximately March 2015, ANDERSON submitted invoices to the city for reimbursement to PSMG sub-contractors working on the project. However, rather than pay the total amounts owed to PSMG’s subcontractors, ANDERSON and his business partner directed more than $1 million that PSMG received from the city to themselves, their businesses and other entities not related to the Dillon Stadium project. ANDERSON and his business partner also secured invoices from subcontractors who had not performed work for the project, which ANDERSON caused to be submitted to the city as if the work had been performed. ANDERSON then illegally used the proceeds of the fraud in a series of bank transactions to pay individuals and companies for expenses unrelated to the Dillon Stadium project.
ANDERSON pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, an offense that carries a maximum term of imprisonment of 20 years, and one count of conducting illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years. Judge Underhill scheduled sentencing for May 1, 2017.
ANDERSON has agreed to make restitution in the total amount of $1,134,595.37 to the City of Hartford and two subcontractors of the Dillon Stadium project.
ANDERSON was arrested on June 23, 2016, as is released on a $100,000 bond.
This matter is being investigated by the Connecticut Public Corruption Task Force, notably the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The Task Force also includes members from the U.S. Department of Housing and Urban Development- Office of Inspector General, the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Postal Inspection Service. The Hartford Police Department is also assisting the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Douglas Morabito.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Three Men Plead Guilty to Charges Related to Armed Robberies of West Haven Post Office and Hamden BankRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that three men have pleaded guilty in Hartford federal court to charges related to the armed robberies of the Allingtown Post Office in West Haven and the Wells Fargo Bank in Hamden on April 21, 2016.
On February 2, MALCOLM HAYNES, also known as “Black,” 26, of New Haven, pleaded guilty to one count of armed robbery of a postal employee and one count of armed bank robbery. On January 25, DERRICK WHITE, also known as “Fly,” 52, of Hamden, pleaded guilty to one count of armed bank robbery. On January 30, HOWARD BOOKERT, 19, of Hamden, pleaded guilty to one count of armed robbery of a postal employee.
According to court documents and statements made in court, on the morning of April 21, 2016, HAYNES, WHITE, BOOKERT and another male drove in WHITE’s vehicle to the vicinity of the Allingtown Post Office located at 75 Farwell Avenue in West Haven. HAYNES, who was armed with a .22 caliber rifle, WHITE and BOOKERT then entered the post office. HAYNES pointed the rifle at individuals who were in the lobby and the clerk behind the counter and directed them to stay away from the door. WHITE then hopped over the counter, waved the postal clerk away from her station, removed the cash drawer from the counter and handed it to BOOKERT. The robbers then fled with the drawer, which contained approximately $491.
In the afternoon of April 21, 2016, the four individuals drove to a branch of Wells Fargo Bank located at 1647 Whitney Avenue in Hamden. HAYNES, again armed with the rifle, WHITE and the other male entered the bank. HAYNES pointed the rifle in the direction of various employees as WHITE went behind the counter and removed approximately $9,287 from teller drawers. During the robbery, the other male brandished what appeared to be a small black semi-automatic pistol.
WHITE and BOOKERT were apprehended in New Haven on April 21, 2016. HAYNES was arrested on May 23, 2016.
HAYNES, WHITE and BOOKERT, who have been detained since their arrests, are scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on May 3, April 19 and May 4, respectively.
Each of the charges carries a maximum term of imprisonment of 25 years.
The fourth male was charged in state court and his case remains pending.
This matter has been investigated by the West Haven Police Department, Hamden Police Department, New Haven Police Department, Federal Bureau of Investigation, and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
West Haven Man Sentenced to 3 Years in Federal Prison for Illegally Possessing FirearmsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROHAN A. JAMES-DENNIE, JR., 22, of West Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 36 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.
According to court documents and statements made in court, on November 1, 2015, a Connecticut State Trooper stopped a vehicle that JAMES-DENNIE was operating erratically in Essex. A subsequent search of the vehicle revealed a .380 caliber handgun with a hollow point bullet in the magazine of the weapon, approximately one-half kilogram of marijuana and more than $3,400 in cash. The firearm had been reported stolen during a residential burglary in 2013.
On January 12, 2016, West Haven Police stopped a vehicle that JAMES-DENNIE was operating. A search of the vehicle and JAMES-DENNIE’s person revealed a .22 caliber handgun loaded with six rounds of ammunition, more than 200 grams of marijuana and nearly $5,000 in cash. The firearm’s serial number was partially obliterated.
JAMES-DENNIE was arrested on state charges in both of these instances and was released on bond.
On July 7, 2016, the Connecticut Intelligence Center (CTIC) issued a statewide “Officer Safety” notification regarding JAMES-DENNIE after a post on JAMES-DENNIE’s Facebook page included “We need to just start shooting cops RS that’s the only way…100100.”
JAMES-DENNIE was arrested the following day in East Haven on a federal criminal complaint charging him firearm and drug offenses. At the time of his arrest, he had $3,500 in cash and three grams of marijuana in his pocket. A search of an apartment connected to JAMES-DENNIE revealed an additional 17 grams of marijuana and a laser attachment for a gun.
JAMES-DENNIE has been detained since his federal arrest. On October 11, 2016, he pleaded guilty to one count of possession of a firearm by an unlawful user of a controlled substance.
This matter was investigated by the FBI’s New Haven Safe Streets Task Force, Connecticut State Police, West Haven Police Department and East Haven Police Department. The FBI Task Force includes participants from the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction.
U.S. Attorney Daly thanked the assistance and cooperation of the State’s Attorneys for the Judicial District of Middlesex and the Judicial District of Ansonia/Milford.
This case was prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
Wethersfield Resident Admits Operating Investment SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANTHONY G. SCIARRA, 53, of Wethersfield, formerly of Marlborough, waived his right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of wire fraud stemming from an investment scheme that defrauded individuals and couples of more than $874,000.
According to court documents and statements made in court, from 2001 until May 2012, SCIARRA operated AGS Financial, through which he offered insurance, securities and other financial products. In approximately May 2012, the Connecticut Department of Insurance revoked SCIARRA’s insurance license.
Between approximately 2007 and July 2015, SCIARRA held himself out as a bona fide insurance agent and financial advisor when, in fact, he was not. Through AGS Financial, and later through an entity he described as “Westport Enterprises,” SCIARRA solicited investments from various victim-investors with promises of high annual investment returns ranging from 4 percent to 12 percent or more. SCIARRA falsely represented to investors that he would invest their funds in a bond fund and/or a cigarette distribution business. Instead of investing any of the invested money as promised, SCIARRA diverted funds for his personal use, including to pay for restaurant meals and department store purchases, and to pay loans and other personal bills. The investigation revealed that SCIARRA also made large cash withdrawals from ATMs and at Foxwoods Casino. SCIARRA also used some of the funds to make “interest” payments to other victim-investors.
During the scheme, SCIARRA made false statements to certain victim-investors, both in person and by e-mail, in an attempt to explain the various delays in the purported interest payments. In addition to telling victim-investors that their funds had been invested as represented, SCIARRA sought to prevent the discovery of the scheme by issuing partial payments to the victim-investors as a partial return of the principal and monies that were then due. Eventually, these payments stopped and the scheme was discovered.
Through this scheme, SCIARRA defrauded at least 12 victim-investors of approximately $874,000.
Judge Shea scheduled sentencing for April 26, 2017, at which time SCIARRA faces a maximum term of imprisonment of 20 years. He is released on a $100,000 bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation, with the Assistance of the Connecticut Department of Banking, Securities Division. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Two Charged with Distributing Heroin Involved in Southeastern Connecticut OverdosesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that the investigation of two drug overdose deaths in May 2016 has resulted in federal heroin distribution charges against NESTOR SANTANA, also known as “Beans,” 29, of New London, and JAMES BUTLER, 23, of Montville.
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.
SANTANA and BUTLER were arrested today on federal criminal complaints charging each with possession with the intent to distribute, and distribution of, heroin. They appeared before U.S. Magistrate Judge Joan G. Margolis in New Haven and were ordered detained. The charge carries a maximum term of imprisonment of 20 years.
As alleged in court documents and statements made in court, in the early morning hours of May 29, 2016, members of the Groton Police Department and emergency services personnel responded to a Groton motel room on the report of a suspected drug overdose. The victim, a 17-year-old female, was administered two doses of Narcan (Naloxone), which were deemed unsuccessful, before she was transported to the hospital and died later that morning.
The investigation revealed that Ramon Gomez, also known as “B.I.,” who knew the victim was under the age of 18, brought the victim to the motel to engage in prostitution. On the morning of May 28, 2016, Gomez sold a quantity of heroin to another individual who then distributed the heroin to the victim. It is alleged that SANTANA supplied Gomez with the heroin that caused the death of the victim.
On May 31, 2016, members of the Montville Police Department responded to an apartment on Route 32 for an “untimely death” investigation. Upon arrival, officers found a deceased 34-year-old female lying face down on the bathroom floor.
The Connecticut’s Office of the Chief Medical Examiner subsequently determined the cause of the 34-year-old female’s death to be “Acute Ethanol and Fentanyl Intoxication.”
It is alleged that the victim was supplied with heroin/fentanyl by BUTLER, who in turn was supplied by Gomez, who in turn was supplied by SANTANA.
In August and September 2016, investigators made controlled purchases of heroin from SANTANA. SANTANA was arrested on state charges on September 29, 2016. A search of his residence at the time of his arrest revealed an additional quantity of heroin and items used to process and package narcotics.
Gomez, 41, of Uncasville, has pleaded guilty to federal sex trafficking of a minor and heroin distribution offenses. He awaits sentencing.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Drug Enforcement Administration, Connecticut State Police, Groton Police Department, Montville Police Department, New London Police Department, Statewide Narcotics Task Force – East, and the Regional Community Enhancement Task Force.
This matter is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Manchester Man Sentenced to 70 Months in Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID GIL-GRANDE, 29, of Manchester, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 70 months of imprisonment, followed by four years of supervised release, for trafficking 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 GIL-GRANDE received shipments of cocaine, secreted in sealed coffee cans, from Puerto Rico. He then supplied the cocaine to individuals who converted much of it into crack cocaine, and distributed both forms of the drug in the area of Barbour Street in Hartford.
GIL-GRANDE secreted cash generated from his drug trafficking in resealed coffee cans and then shipped the cans back to Puerto Rico. He also drove large amounts of cash to New York City where it would be sent to Puerto Rico. On January 6, 2016, GIL-GRANDE was stopped as he drove to New York. A subsequent search of his vehicle revealed approximately $92,000.
Twenty individuals were charged as a result of the investigation.
GIL-GRANDE has been detained since his arrest on January 21, 2016. On November 8, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine.
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 Squad and the Drug Enforcement Administration are providing valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Hartford Cocaine Trafficker Sentenced to 5 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that TODD VERNON, 42, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 60 months of imprisonment, followed by five years of supervised release, for trafficking cocaine. VERNON also was ordered to pay a $50,000 fine.
According to court documents and statements made in court, Raul Chavez headed a cocaine trafficking operation that smuggled cocaine from Mexico into El Paso, Texas, and then transported the drug to Connecticut and elsewhere. The investigation revealed that the Chavez organization had been supplying multiple kilograms of cocaine to VERNON since approximately 2004, and Tyshawn Welborn, of Bloomfield, since approximately 2010. The shipments, which would typically be in the range of 30 to 40 kilograms, were sent regularly from El Paso multiple times per year. VERNON and Welborn distributed the drug through a network of individuals.
In 2014, the Chavez organization attempted to find an additional source of supply for its Hartford area cocaine customers. In July 2014, a DEA confidential source met Andrew Duron, also known as “Chavo,” in North Carolina. During the meeting, Duron told the confidential source that he wanted to purchase up to 50 kilograms of cocaine for $28,000 per kilogram. On August 14, 2014, Duron, the confidential source and an undercover DEA agent met in New Jersey where Duron agreed to purchase 25 kilograms of cocaine. In subsequent conversations with the confidential source, Duron stated that he wanted an extra $1000 per kilogram as a side deal. They agreed on a total price of $725,000 for 25 kilograms of cocaine.
The investigation revealed that this cocaine shipment was destined for both VERNON, who had prepaid for approximately 13 kilograms of cocaine, and Welborn.
On August 23, 2014, Duron met the undercover DEA agent at a location in Wethersfield. Duron told the undercover agent that his associates were in Connecticut and that Duron and the undercover agent would need to travel to a store parking lot near Bradley International Airport to verify that the money was in place. Duron and the undercover agent then drove in separate vehicles to a store parking lot on Kennedy Road in Windsor. Duron met with Raul Chavez and another associate in the store. A short time later, a third associate arrived in a Jeep Wrangler, met the undercover agent in the parking lot, showed him a duffel bag and said it contained “half” of the money. Shortly thereafter, investigators arrived at the scene and arrested Duron, Raul Chavez and his associates.
Investigators also recovered from the Jeep a duffel bag containing approximately $284,000 in cash, and a loaded .38 caliber revolver. The cash had been picked up from Welborn earlier that day.
After word reached Raul Chavez’s son, Christopher Chavez, that his father and others had been arrested, Christopher Chavez coordinated the diversion of a shipment of 34 kilograms of cocaine, which was en route to Connecticut, to a high-level drug distributor in Cleveland, Ohio.
VERNON was arrested on August 26, 2015. On September 7, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.
VERNON, a citizen of Canada, faces deportation proceedings when he is released from prison.
Raul Chavez, Christopher Chavez, Duron and Welborn also pleaded guilty. On September 22, 2015, Duron, of El Paso, was sentenced to 84 months of imprisonment; on October 7, 2016, Christopher Chavez, of El Paso, was sentenced to 60 months of imprisonment; on December 21, 2016, Welborn, also known as “Black,” was sentenced to 84 months of imprisonment and a $200,000 fine, and on January 11, 2017, Raul Chavez was sentenced to 144 months of imprisonment and a $250,000 fine.
This investigation has been conducted by the Drug Enforcement Administration’s Hartford Task Force, including personnel from the DEA Hartford Resident Office and the Bristol, Hartford, Manchester, New Britain, Newington, and Wethersfield Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and Amy C. Brown.
Shelton Man Admits Robbing 4 Connecticut BanksRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SCOTT TAYLOR, 47, of Shelton, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of bank robbery and admitted that he robbed four branches of Chase Bank last year.
According to court documents and statements made in court, TAYLOR robbed the Chase Bank at 184 Main Street in Westport on June 2, 2016; the Chase Bank at 1561 Boston Post Road in Milford on June 24, 2016; the Chase Bank at 50 Washington Street in Norwalk on July 6, 2016, and the Chase Bank at 1855 Main Street in Stratford on July 13, 2016. During each of the robberies, TAYLOR handed a teller a note demanding cash, and told the teller that he had a gun.
TAYLOR stole a total of approximately $23,300 during the first three robberies, and $1,000 during the July 13 robbery. He was arrested at the Stratford train station shortly after the July 13 robbery in possession of $998 in cash and 33 folds of heroin.
TAYLOR is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on May 3, 2017, at which time he faces a maximum term of imprisonment of 20 years. The parties have recommended a sentence of 188 months of imprisonment.
TAYLOR has been detained since his arrest.
This investigation has been conducted by the Federal Bureau of Investigation and the Westport, Milford, Norwalk and Stratford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
U.S. Attorney Daly thanked the assistance and cooperation of the State’s Attorneys for the Judicial Districts of Ansonia/Milford, Fairfield and Stamford/Norwalk.
Hartford Crack 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 on January 27, 2017, EDUARDO ZAYAS, also known as “Za,” 38, of East Hartford, was sentenced by U.S. District Judge Victor A. Bolden in Bridgeport to 65 months of imprisonment, followed by three years of supervised release, for possessing crack cocaine and a firearm.
According to court documents and statements made in court, in September 2014, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department initiated an investigation into narcotics distribution, firearms trafficking and acts of violence carried out by members and associates Los Solidos in Hartford’s South End. The investigation, which included the use of court-authorized wiretaps and controlled purchases of heroin, crack cocaine and firearms, resulted in federal charges against approximately 30 individuals.
On May 15, 2015, Hartford Police arrested ZAYAS after he traveled to a parking lot to meet his drug supplier who was in possession of approximately 320 grams of crack. A subsequent search of an apartment on New Britain Avenue in Hartford that was connected to ZAYAS revealed a .25 caliber handgun, a magazine with four live .25 caliber rounds, approximately 52 grams of crack, items used to process and package narcotics, and $4,120 in cash.
ZAYAS has been detained since his federal arrest on June 15, 2015. On May 5, 2016, he pleaded guilty to one count of possession with intent to distribute 28 grams or more of cocaine base (“crack”).
Judge Bolden also ordered ZAYAS to forfeit a 2005 Acura RL, a 2002 GMC Denali, and the cash that was seized at the time of his arrest in May 2015.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics unit, Major Crimes unit, Shooting Task Force and South Conditions Unit have provided valuable assistance to the investigation, and the U.S. Marshals Service and Capitol Region Emergency Response Team (CREST) assisted with the arrests.
This case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Members of Los Solidos attended call-ins that were held in April 2014 and August 2014.
Connecticut U.S. Attorney’s Office Collects More Than $792 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
New Haven - U.S. Attorney Deirdre M. Daly today announced that the U.S. Attorney’s Office for the District of Connecticut collected $792,906,133.31 in criminal and civil actions in Fiscal Year 2016. Of this amount, $783,664,236.82 was collected in criminal actions and $9,241,896.49 was collected in civil actions.
This year’s recovery is particularly large as a result of a single criminal fine in the amount of $772,290,000 paid by Alstom S.A., a French power and transportation company that has a U.S. subsidiary with headquarters in Connecticut. This Office in collaboration with the Criminal Division of the Department of Justice prosecuted Alstom for violations of the Foreign Corrupt Practices Act.
The Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. This amount in collections represents more than five times the approximately $2.93 billion of the Department’s combined appropriations for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“This past fiscal year, our Office’s dedicated attorneys and staff helped to recover over $792 million,” said U.S. Attorney Daly. “We are gratified that these funds are returned directly to victims of crime, provide needed services for these victims and fund ongoing federal, state and local law enforcement efforts. One of our primary missions is to seek justice for victims, remove ill-gotten gains from wrongdoers and protect the integrity of important government programs.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
In addition, the U.S. Attorney’s office in Connecticut, working with partner agencies and divisions, collected $5,375,890 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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.
For more information about the U.S. Attorney’s Office for the District of Connecticut, please visit www.justice.gov/ct.
Citizen of Mexico Pleads Guilty to Illegally Reentering U.S. After DeportationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALBERTO SILVA-GARCIA, 42, a citizen of Mexico recently residing in Norwalk, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of illegal reentry of a removed alien.
According to court documents and statements made in court, SILVA-GARCIA was deported from the U.S. to his native Mexico in March 1999 after sustaining a domestic violence conviction in California. Between March 1999 and April 2004, SILVA-GARCIA was encountered multiple times in California by immigration agents, twice while in custody following his apprehension and conviction for controlled substance violations, and on several other occasions following his apprehension at the U.S. border for falsely claiming U.S. citizenship. On 11 documented occasions, SILVA-GARCIA was removed to Mexico by foot.
In August 2009, SILVA-GARCIA was arrested for motor vehicle offenses in Norwalk. He was subsequently charged with illegal reentry in U.S. District Court in Connecticut and was sentenced to 12 months of imprisonment. In December 2010, SILVA-GARCIA was again removed to Mexico.
SILVA-GARCIA illegally reentered the U.S. and, in March 2015, was charged with larceny and burglary offenses in superior court in Norwalk. The charges stemmed from a crime spree involving the theft of construction tools and equipment from job sites and parked construction vehicles. He pleaded guilty and was sentenced to three years of incarceration.
SILVA-GARCIA has been detained in ICE custody since October 2016.
Judge Meyer scheduled sentencing for April 25, 2017, at which time SILVA-GARCIA faces a maximum term of imprisonment of 10 years.
This matter has been investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE). The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Former RMBS Trader Convicted of Securities Fraud after RetrialRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), 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 JESSE C. LITVAK, 42, of Boca Raton, Fla., guilty of one count of securities fraud stemming from trading in residential mortgage-backed securities (RMBS).
The jury returned a verdict of guilty on one count of securities fraud, and a verdict of not guilty on nine counts of security fraud. The trial before Chief U.S. District Judge Janet C. Hall began on January 5 and the jury returned its verdict this morning.
“Once again, a jury of his peers has rejected Mr. Litvak’s claims that he engaged in acceptable sales practices, and determined that his lies were, in fact, criminal behavior,” said U.S. Attorney Daly. “I thank SIGTARP and the FBI for their outstanding work on this investigation and related cases. Our criminal investigation of individuals and institutions involved in fraudulent RMBS trading activities remains active and ongoing. We are confident that these prosecutions have acted as a forceful disincentive to market participants tempted to commit securities fraud.”
“The jury’s verdict confirms that Jeffries trader Jesse Litvak’s sales tactics are not merely distasteful negotiating practices but a crime,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “SIGTARP is sworn to protect taxpayer dollars and the jury found today that Litvak defrauded a customer trading in a TARP program. SIGTARP, partnering with U.S. Attorney Deirdre Daly and her dedicated team, uncovered that this Wall Street trader lied to customers, all to secretly profit at the expense of customers trading with taxpayer dollars. SIGTARP and U.S. Attorney Daly’s office uncovered the full extent of Litvak’s crime by looking deal by deal. In this mortgage backed securities market that has no transparency on current market prices, everyone should look at their own conduct and above all, be honest in their dealings. After Litvak’s indictment, some broker dealers changed practices to prevent this type of fraud. Those who did not should do so now. SIGTARP and U.S. Attorney Daly stand united in vigilance against crime in this market.”
“Mr. Litvak’s jury trial conviction today is yet again evidence that justice prevails over greed, deceit and criminal behavior,” said FBI Special Agent in Charge Ferrick.
According to the evidence introduced during the trial, in response to the 2008 financial collapse, the U.S. Department of Treasury introduced the Legacy Securities Public-Private Investment Program (PPIP), and used billions of dollars of bailout money from the Troubled Asset Relief Program (TARP) to restart the trading markets for many troubled securities, including certain kinds of RMBS. The program created nine PPIP funds, and more than 100 firms applied to manage the funds.
LITVAK was a senior trader and managing director at Jefferies & Co, Inc. (“Jefferies”), a global securities and investment banking firm headquartered in New York. Jefferies also had a trading floor in Stamford, Conn., where LITVAK and other members of its Mortgage and Asset-Backed Securities trading group worked.
The jury found that LITVAK engaged in a scheme to defraud. As a broker-dealer, only LITVAK – not the bond seller or buyer – knew the selling and asking prices of the parties. In the count of conviction, LITVAK exploited this information by misrepresenting to his PPIP fund victim the price Jefferies paid for a RMBS bond in order to increase Jefferies’ profit on the trade.
Securities fraud carries a maximum term of imprisonment of 20 years.
Chief Judge Hall scheduled sentencing for April 21, 2017, at which time LITVAK faces a maximum term of imprisonment of 20 years.
LITVAK has been released on bond since his arrest on January 28, 2013.
On March 7, 2014, LITVAK was convicted after trial of 10 counts of securities fraud, one count of TARP fraud and three counts of making false statements to the government. LITVAK appealed his conviction and, on December 8, 2015, the U.S. Court of Appeals for the Second Circuit reversed the judgment of conviction as to the TARP fraud and making false statement charges, and remanded the matter for a new trial on the securities fraud charges.
The investigation of this matter revealed that members of Jefferies’ management in the fixed income division became aware that Jefferies employees were making misrepresentations to customers and did nothing to stop it. Jefferies has cooperated with the federal criminal investigation and paid a total penalty of $25 million as part of a non-prosecution agreement with the government. The penalty included up to $11 million in restitution to victims and up to a $4,200,402 penalty to the U.S. Securities and Exchange Commission (SEC). Jefferies also addressed deficiencies in the compliance and ethics practices and policies of its Mortgage and Asset-Backed Securities Trading group. These measures included Jefferies’ agreement to retain an Independent Compliance Consultant to conduct a review of Jefferies’ policies and procedures for detecting and preventing fraud in connection with the purchase or sale of RMBS.
This matter has been investigated by SIGTARP and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Jonathan Francis, Heather Cherry and William Nardini.
Wethersfield Man Pleads Guilty to Heroin Distribution Charge Stemming from 19-Year-Old's Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARLOS CARRILLO, 19, of Wethersfield, 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, 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.
CARRILLO is scheduled to be sentenced by Senior U.S. District Judge Alfred V. Covello on April 20, 2017, at which time he faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Drug Enforcement Administration and the Wethersfield Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jennifer P. Laraia and Michael E. Runowicz.
Bridgeport Man Sentenced to Prison for Distributing Fentanyl-Laced Heroin to Overdose VictimsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ERICK DELGADO, 39, of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 13 months of imprisonment, followed by three years of supervised release, for distributing fentanyl-laced heroin that led to overdoses in April 2016.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in the morning of April 25, 2016, Bridgeport Police and medical personnel responded to a location on Washington Avenue on a report of a possible drug overdose. The overdose victim was revived with two doses of Narcan and was transported to the hospital. A friend of the victim, who was with the victim at the time and contacted medical professionals after the overdose, told investigators that he and the victim purchased heroin from an individual he knew as “Eric” in the area of Brooks Street and Ogden Street in Bridgeport. The victim subsequently identified DELGADO as the source of the heroin he used.
In the evening of April 25, 2016, Monroe Police and emergency medical personnel responded to a report of an unresponsive 48-year-old male at a residence in Monroe. The victim was pronounced dead at the scene. A subsequent interview with an acquaintance of the victim revealed that, on April 25, the victim and his acquaintance traveled to the area of Brooks Street and Ogden Street where the victim purchased heroin from DELGADO.
The Office of the Chief Medical Examiner subsequently determined the victim’s cause of death to be acute fentanyl intoxication.
On May 3, 2016, an individual working with law enforcement contacted DELGADO to arrange the purchase of heroin. When the individual and an undercover officer arrived in the area of Brooks Street and Ogden Street, they were met by DELGADO’s brother, Anoris Delgado, who subsequently provided them with 20 bags of heroin. The undercover officer purchased another 20 bags of heroin from Anoris Delgado on May 20.
DELGADO has been detained since his arrest on June 21, 2016. On October 27, 2016, he pleaded guilty to one count of distribution of heroin.
On October 25, 2016, Anoris Delgado pleaded guilty to the same charge. He awaits sentencing.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the Monroe and Bridgeport Police Departments. The 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 is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Wallingford Woman Sentenced to Prison for Distributing Heroin to Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRITTANY ESPOSITO, 28, of Wallingford, 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. Judge Covello also ordered ESPOSITO to pay a $1,000 fine.
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 May 14, 2016, Old Saybrook Police and emergency medical personnel responded to a report of a suspected overdose at an apartment on Main Street in Old Saybrook. The victim, a 26-year-old male, was pronounced deceased at the scene. Investigators seized the victim’s iPhone, one empty wax paper fold and several syringes.
The investigation, which included the analysis of numerous text messages, revealed that ESPOSITO purchased heroin for the victim on credit and then provided the heroin to the victim on May 13, 2016.
ESPOSITO was arrested on June 16, 2016. On November 17, 2016, she pleaded guilty to one count of distribution of heroin.
This matter was investigated by the DEA’s New Haven Tactical Diversion Squad and the Old Saybrook Police Department, with support and assistance of the Middlesex State’s Attorney’s Office. The 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.
This case was prosecuted by Assistant U.S. Attorney Robert M. Spector.
U.S. Attorney Settles ADA Complaints with Connecticut Department of Developmental ServicesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached an Americans with Disabilities Act (“ADA”) settlement with the Connecticut Department of Developmental Services (“DDS”) to ensure that DDS provides effective communication for individuals with disabilities.
The settlement agreement resolves three ADA complaints filed by the State’s Office of Protection and Advocacy for Persons with Disabilities on behalf of two individuals who are hearing impaired. The complaints allege that DDS failed to provide effective communication during certain programs and meetings by failing to make available sign language interpreters or appropriate auxiliary aids. DDS is working with the U.S. Department of Justice to develop and amend its policies and practices to ensure compliance with the ADA and the Department’s implementing regulations.
“Individuals who have disabilities must not be denied equal access to the services offered by the State of Connecticut because of their disability,” said U.S. Attorney Daly. “We commend DDS for voluntarily agreeing to enter this settlement agreement, and to ensure they are providing effective communication to persons who are hearing impaired.”
The ADA requires “public entities,” including local governments and state agencies, to ensure effective communication with qualified individuals with disabilities. Under this agreement, a person who is deaf or hard of hearing will be able to benefit from the same services as every other person. For individuals who are deaf or hard of hearing, auxiliary aids include qualified sign language or oral interpreters, use of relay services, computer-assisted real time transcription, and, for simple communications, the exchange of written notes.
The settlement agreement specifically requires DDS to:
- Conduct a detailed audit of its services to make sure individuals who are deaf or hard of hearing are being provided with effective communication during all programs and services;
- Ensure that appropriate auxiliary aids and services, including qualified interpreters, and specifically tactile interpreters, are made available to all individuals who are deaf or hard of hearing;
- Set aside funding to ensure that auxiliary aids and services are timely provided to clients;
- Ensure its policies and practices are nondiscriminatory, and provide effective communication for people with communication disabilities, including the provision of sign language interpreters;
- Post a notice of the policy in public areas;
- Train staff on the policies.
This matter was handled by Assistant U.S. Attorneys Ndidi N. Moses and Vanessa Roberts Avery, with the assistance of the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Individuals who believe that they may have been victims of discrimination can file a complaint with the U.S. Attorney’s Office at 203-821-3700. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Additional information about the ADA can be found at www.ada.gov, or by calling the Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
Fairfield Country Landscaper Sentenced to 18 Months in Prison for Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DONALD BIAGI, JR., 55, of Fairfield, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 18 months of imprisonment, followed by one year of supervised release, for tax evasion.
According to court documents and statements made in court, BIAGI is the sole owner of Don Biagi Landscaping. BIAGI, through Don Biagi Landscaping, generated business income by providing landscaping and snowplowing services to commercial and residential customers in Fairfield County. BIAGI regularly negotiated client checks at banks for cash rather than depositing the checks into his business bank accounts. Between 2008 and 2010, BIAGI cashed approximately 574 client checks, ranging in amounts from $10.52 to $15,604.50, in the total amount of approximately $848,750.
BIAGI, who acted as his own bookkeeper, did not disclose to his tax return preparer the client checks he cashed and some of the client checks he deposited into his business account between 2008 and 2010. As a result, a total of $1,321,305 in business gross receipts were not reported on BIAGI’s federal tax returns for 2008, 2009, and 2010, resulting in his substantially under-reporting his taxable income. BIAGI failed to report approximately 62 percent of his business’s gross receipts in 2008, approximately 47 percent of the gross receipts in 2009, and approximately 60 percent of the gross receipts in 2010.
Judge Covello ordered BIAGI to pay $445,579 in back taxes, and additional penalties and interest that have accrued on his unpaid taxes. BIAGI made a $50,000 payment toward his restitution today.
On September 29, 2016, BIAGI pleaded guilty to one count of tax evasion. He was ordered to report to prison on April 1, 2017.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
New York Woman Sentenced to Prison for Operating Unemployment Benefits Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that THERESA A. FREEMAN, 65, last residing in Yonkers, N.Y., was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 18 months of imprisonment, followed by three years of supervised release, for defrauding unemployment insurance programs in a “fictitious employer scheme.”
According to court documents and statements made in court, FREEMAN filed incorporation paperwork with the State of Connecticut for “Tribal Organic Products,” which she claimed was an internet business that she operated from an address in Trumbull, Connecticut. The business was, in fact, a fictitious company that did not engage in any business activity. In December 2012, FREEMAN’s son, Sean E. Montiero, filed a claim with the Connecticut Department of Labor for unemployment insurance benefits, claiming that he was laid off from Tribal Organic Products. Between January 2013 and July 2013, Montiero received approximately $13,474 in unemployment insurance benefits from the State of Connecticut.
The investigation revealed that FREEMAN also operated similar fictitious employer schemes that defrauded both the Pennsylvania Department of Labor and Industries and the North Carolina Department of Commerce, Division of Employment Security of $16,253 and $14,136, respectively.
Judge Arterton ordered FREEMAN to pay restitution in the amount of $43,863.
FREEMAN has been detained since her arrest on May 5, 2016. On September 20, 2016, she pleaded guilty to one count of conspiracy to commit wire fraud.
FREEMAN has a prior federal conviction in the District of South Carolina for mail fraud stemming from similar conduct. In that case, she was found to have committed the same unemployment benefits fraud offense in South Carolina, Connecticut, Hawaii, Florida and New York, and was sentenced to 15 months of imprisonment.
Montiero has pleaded guilty and awaits sentencing.
This investigation was conducted by the U.S. Department of Labor – Office of Inspector General; Connecticut Department of Labor; Office of the Chief State’s Attorney; Pennsylvania Department of Labor and Industries; North Carolina Department of Commerce, Division of Employment Security; and the Yonkers Police Department.
This case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Easton Man Pleads Guilty to Defrauding Distressed Homeowners, Evading TaxesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TIMOTHY W. BURKE, also known as “Bill Burke,” “William Burke,” “Kerry Saunders,” “Pat Riley,” “Jim Caldwell,” “Jim Saunders,” “Tom Morrisey,” “Jimmy,” “Phil Burke,” “Phil,” “Burt,” “James Burke,” and “M. Soler,” 65, formerly of Easton, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to fraud and tax evasion offenses stemming from a long-running fraud scheme that targeted distressed homeowners.
According to court documents and statements made in court, between approximately 2010 and November 2015, BURKE engaged in a scheme to defraud individuals, mortgage lenders and the U.S. Department of Housing and Urban Development (HUD) by falsely representing to homeowners who were in, or facing, foreclosure on their homes that he would purchase their homes and pay off their mortgages. The distressed homeowners agreed to sign various documents, including quitclaim deeds, indemnification agreements, management agreements and third party authorization letters, which BURKE presented to them on the understanding that, by signing the documents, they would be able to walk away from their homes without the burdens of their mortgage or other costs associated with home ownership. BURKE also told homeowners that the process of negotiating with the lenders can take time and that, in the meantime, to ignore any notices regarding foreclosure. After he gained control of these houses, BURKE rented out the properties to tenants by advertising the properties on craigslist.com and other means and falsely representing to tenants that BURKE owned the property.
BURKE or one of his agents then collected rent from tenants, in person, and BURKE used the funds for his own benefit. BURKE failed to negotiate with the homeowners’ mortgage lender or pay expenses associated with the home, including the homeowner’s mortgages and property taxes, and he failed to pay any rental income he was collecting to the homeowners. Many of the properties BURKE purportedly purchased were ultimately foreclosed upon by the mortgage lender.
BURKE undertook extensive efforts to disguise his true identity, and hide his criminal past, from his victims through the use of multiple aliases and business entities, and to conceal the sources of and expenditures from his criminal proceeds. BURKE has been associated with multiple entities, including Quality Asset Management Services, LLC; Birmingham Investments, LLC; the Birmingham Group of Companies; Saunders Associates; New Haven Investments; Realty Partners Group; Preston Associates II; Landlord Maintenance Services, LLC; Turnkey Construction Services LLC; The Complete Handyman, LLC; and Woodbridge Associates.
In addition, between 1994 and 2012, BURKE evaded paying approximately $403,726 in federal taxes.
In 2002, BURKE was indicted by a federal grand jury in New Jersey on charges of conspiracy, mail fraud, and equity skimming. BURKE subsequently pleaded guilty to conspiracy to commit both equity skimming and mail fraud, and he was sentenced to 60 months in prison, followed by three years of supervised release. BURKE was released from federal custody in approximately August 2007 and began his federal supervised release at that time. One of the special conditions of BURKE’s supervised release was that he refrain from employment in the real estate business or mortgage industry. Based on his motion for early termination of his supervised release, the New Jersey federal court terminated his supervised release approximately one year early in August 2009.
Today, BURKE pleaded guilty to one count of mail fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years. Judge Shea scheduled sentencing for April 18, 2017.
BURKE has been detained since his arrest on November 19, 2015.
This matter is being investigated by Internal Revenue Service – Criminal Investigation Division, the U.S. Department of Housing and Urban Development – Office of Inspector General, and U.S. Postal Inspection Service, with the critical assistance of the Middletown, Plainville, Easton and Coventry Police Departments, the Connecticut State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys David T. Huang and Sarah P. Karwan.
HSI Investigation Shuts Down Heroin Trafficking OperationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) in Boston, today announced the five individuals were arrested over the weekend in Hartford and charged with federal heroin trafficking offenses.
As alleged in the criminal complaint, on October 21, 2016, the Baldwin County Sheriff’s Office in Alabama conducted a motor vehicle stop of a car hauler that was carrying a 2012 Chevrolet Malibu. A search of the Malibu revealed that it contained a hidden compartment (“trap”), which is commonly used to conceal and transport illegal contraband, including narcotics, firearms and currency. The investigation revealed that the car was registered to ONEL ARANA-GERVACIO.
The complaint further alleges that law enforcement officials obtained court authorization to install tracking devices on the vehicle and, between October 2016 and January 2017, HSI agents observed it at various locations in Connecticut and Rhode Island. On January 17, agents located the vehicle at 1091 Maple Avenue in Hartford. On January 20, surveillance officers observed activity on another vehicle located at the Maple Avenue residence consistent with manipulating a mechanical hidden compartment. Officers then observed ARANA placing two duffel bags into that second vehicle and then driving off in the vehicle with MODESTO BARETT-MEDINA. At approximately 8:30 p.m., a Hartford Police cruiser pulled the car over. The vehicle also contained a hidden trap, but a search revealed no contraband.
ERISON PERALTA, LUZ CRUZ and her daughter, CAROL AMPARO, were then located inside of 1091 Maple Avenue. The complaint alleges that a search of the residence revealed at least six kilograms of heroin, approximately 500 grams of cocaine and a “finger press,” which is used to process bulk quantities of heroin into 10-gram-bags known as “fingers.” Agents also seized drug distribution materials, including sifters, grinders, scales, vacuum sealers and kilo wrappers, which were coated in heroin residue and field-tested positive for the presence of fentanyl. Agents then searched the Malibu, which was located in the garage of 1091 Maple Avenue, and recovered approximately $260,000 in cash from inside the trap.
The complaint charges ARANA, BARETT, PERALTA, CRUZ and AMPARO with possession with intent to distribute one kilogram or more of heroin, and conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin. Both offenses carry a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
CRUZ and AMPARO are also charged with maintaining a drug-involved premises, an offense that carries a maximum term of imprisonment of 20 years.
The five defendants appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford. ARANA, 39, a citizen of Mexico; BARETT, 47, a citizen of the Dominican Republic, and PERALTA, 39, a citizen of the Dominican Republic, were ordered detained.
CRUZ, 46, and AMPARO, 20, were released on $50,000 bonds.
U.S. Attorney Daly stressed that a criminal complaint is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations (HSI), the Hartford Police Department and the Connecticut State Police, with the assistance of the Baldwin County (Ala.) Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
Former Greenwich Resident Who Stole More Than $700K in Fraud Scheme Sentenced to 4 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that, on January 20, DEBRA BIAGI, 50, of Fogelsville, Pa., formerly of Greenwich, was sentenced by U.S. District Judge Jeffrey Alker Meyer in New Haven to 48 months of imprisonment, followed by three years of supervised release, for stealing more than $700,000 from her employer and related companies and individuals.
According to court documents and statements made in court, BIAGI was employed by HB Nitkin Group of Greenwich, a privately owned business engaged in real estate management and development. BIAGI served as an assistant to the chairman of the company with responsibilities that included managing the accounts payable for the company.
From approximately February 2014 to December 2015, BIAGI defrauded the company, as well as key company individuals and members of their families who retained financial and banking information at the company. As part of the scheme, BIAGI created fraudulent invoices made out to fictitious companies detailing charges for items such as masonry, carpentry, electrical and plumbing work. She then used victims’ checkbooks to make checks out to the fictitious companies, purportedly to pay the fraudulent invoices. BIAGI then deposited the checks into her personal bank account, at times endorsing the check with an illegible signature to hide her misconduct, and subsequently withdrew the monies for her personal use.
To keep track of which invoices were fictitious and which checks were made to fictitious companies, BIAGI often included her initials “DB” in the fabricated company name listed on the invoice and check. BIAGI then noted the fictitious company as the payee in the relevant accounting records at the company and filed the fabricated invoices as business record. BIAGI also, as needed, misappropriated the signature stamp of the company’s chairman and used it to “sign” the misappropriated checks and to falsely suggest that the paid expenditure was both legitimate and authorized.
In addition, at different times during the scheme, BIAGI simply stole checks from employees of the company and either made the checks to cash, or endorsed to cash checks that already listed a payee.
In total, BIAGI stole $711,074.39 during the course of this scheme.
Judge Meyer ordered BIAGI to make full restitution.
On August 26, 2016, BIAGI pleaded guilty to one count of wire fraud.
This matter was investigated by the Federal Bureau of Investigation and Greenwich Police Department, and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Wallingford Man Charged with Distributing Fentanyl and SteroidsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIEL GUILLEN, 28, of Wallingford, was arrested yesterday on a federal criminal complaint charging him with distributing fentanyl and anabolic steroids. 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.
GUILLEN appeared today before U.S. Magistrate Judge Joan G. Margolis in New Haven and was ordered detained.
As alleged in court documents, on August 31, 2016, the Wallingford Police Department and medical personnel responded to a residence after a report of an untimely death of a 30-year-old male. At the scene, officers seized 12 wax paper folds, eight of which contained a powdery substance. The State of Connecticut Forensics Laboratory subsequently reported that the substance tested positive for the presence of fentanyl. The investigation revealed that GUILLEN had provided the drugs to the victim shortly before the victim’s death. The investigation also revealed that GUILLEN sold anabolic steroids.
The complaint charges GUILLEN with possession with intent to distribute, and distribution of fentanyl, an offense that, given GUILLEN’s criminal history, carries a maximum term of imprisonment of 30 years. The complaint also charges GUILLEN with possession with intent to distribute, and distribution of, anabolic steroids, 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’s New Haven Tactical Diversion Squad, Wallingford Police Department, U.S. Postal Inspection Service and State of Connecticut Department of Parole and Community Services. The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
New York Woman Pleads Guilty to Stealing More Than $700K in Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROSEMARIE COLLAZO, 51, of Yonkers, N.Y., waived her right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of wire fraud stemming from her theft of more than $700,000 from her employer.
According to court documents and statements made in court, COLLAZO was employed by Abbey National Treasury Services, PLC, in Stamford. As part of her job, COLLAZO assisted in arranging for payments to vendors and others. COLLAZO collected invoices as they came into the company and presented the collected invoices to her supervisor to approve payment. Her supervisor then reviewed the items and signed off on the payments. COLLAZO then entered the payment information into the company’s accounts payable program, which generated payment checks. Next, COLLAZO created packets that included the invoice, an authorization form and the payment check related to the specific invoice. After the packets had been reviewed and the appropriate signatures obtained from her supervisors, COLLAZO mailed the checks to vendors.
Between 2010 and 2016, COLLAZO prepared 144 fraudulent duplicate invoice packages and submitted an equivalent number of checks for authorizing signatures for payments that she knew had already been processed and paid. She then deposited the checks into her personal bank account.
In addition, on at least three other occasions, COLLAZO misappropriated a vendor refund check that had been sent the company, and endorsed the check for deposit into her personal bank account.
In total, COLLAZO stole $772,242 during the course of this scheme.
Judge Underhill scheduled sentencing for April 14, 2017, at which time COLLAZO faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Federal Bureau of Investigation and Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Man Sentenced to 18 Months in Prison for Violating Federal Sex Offender Registration LawsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that THOMAS EDWARD DONALDSON, 54, last residing in Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 18 months of imprisonment, followed by five years of supervised release, for violating federal sex offender registration laws.
The Sex Offender Registration and Notification Act (“SORNA”), which was passed by Congress in 2006 as part of the Adam Walsh Act, provides a comprehensive set of minimum standards for sex offender registration and notification in the United States and seeks to strengthen the nationwide network of sex offender registration and notification programs. In part, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.According to court documents and statements made in court, on April 8, 2005, DONALDSON was sentenced in Hartford federal court to five years of imprisonment, followed by five years of supervised release, for engaging in sexually explicit conversations, from his computer in Maryland, with an undercover agent who he thought was a 13-year-old girl, and then traveling to Connecticut to meet the “girl” to engage in sexual activity. After his release from prison, DONALDSON was found in violation of his supervised release and, on March 13, 2013, was sentenced to an additional three months of imprisonment and one year of supervised release.
DONALDSON had initially complied with Connecticut Sex Offender Registry requirements while he resided in Hartford after his release from prison. However, in late 2013, he failed to respond to an address verification request and a subsequent notice of violation sent by the Sex Offender Registry Unit, and a federal investigation was initiated to locate him.
On February 5, 2016, DONALDSON was arrested in Hartford pursuant to a federal probation violation warrant. After he was apprehended, he was sentenced to an additional six months in prison for again violating his supervised release.
DONALDSON has been detained since his arrest. On October 25, 2016, he pleaded guilty to one count of failing to register as a sex offender.
This matter was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Hartford Attorney Pleads Guilty to Money Laundering Charges Stemming from Stock "Pump and Dump" SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that COREY BRINSON, 36, of Hartford, waived his right to indictment and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to a money laundering charge stemming from his involvement in a securities fraud scheme.
According to court documents and statements made in court, between approximately October 2010 and July 2016, BRINSON, a licensed attorney, served as the nominal “securities counsel” for several companies whose securities were marketed and sold to the investing public by Christian Meissenn and Meissenn’s business associates in a stock “pump and dump” scheme. Meissenn and his associates induced investors to purchase securities by making false and misleading representations about the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. After selling their own shares at a profit, the scheme’s participants allowed the price of the securities to fall, leaving investors with worthless and unsalable stock. As a result, victim investors lost millions of dollars.
As part of the scheme, BRINSON, who did not have any experience with securities and securities markets, signed, or permitted others to affix his signature to, false and misleading attorney opinion letters that were designed to provide assurances to securities transfer agents and prospective investors. Among other things, the opinion letters falsely certified that BRINSON, as an attorney, had adequately reviewed corporate records and filings and was satisfied with the adequacy of the companies’ public disclosures. The opinion letters were then provided to securities transfer agents and prospective investors. BRINSON also received deposits of millions of dollars in proceeds of securities transactions into his Interest on Lawyer Trust Account (“IOLTA”). Rather than use the proceeds to purchase securities and fund operations at the underlying companies, Meissenn and others directed BRINSON to distribute nearly all the money to what proved to be relatives, associates and shell companies associated with Meissenn and his associates.
BRINSON knew that approximately $3 million that passed through his IOLTA were the proceeds of this illegal securities scheme. In exchange for providing his services, BRINSON received approximately five percent of the proceeds that passed through his IOLTA. In addition, BRINSON also received payment for preparing the false opinion letters. As a result of these activities, BRINSON’s personal gain was a total of approximately $200,000.
BRINSON pleaded guilty to one count of engaging in a monetary transaction in property derived from specified unlawful activity, which carries a maximum term of imprisonment of 10 years. Judge Meyer scheduled sentencing for April 14, 2017.
BRINSON surrendered his law license in November 2016.
On November 8, 2016, Meissenn pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of tax evasion. He awaits sentencing.
This ongoing investigation is being conducted by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments. The matter is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Peter S. Jongbloed.
Redding Woman Sentenced to Prison for Stealing More Than $400K from EmployerRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that LISA LANDMAN, 48, of Redding, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to three months of imprisonment, followed by three years of supervised release, for embezzling more than $400,000 from her employer. Judge Bolden also ordered LANDMAN to serve the first six months of her supervised release in home confinement.
According to court documents and statements made in court, LANDMAN was the bookkeeper for a Connecticut company. Between November 2010 and November 2013, LANDMAN defrauded her employer by authorizing and initiating at least 33 wire transfers from the company’s business bank account into her own personal credit card account. In total, LANDMAN transferred $410,410.02. from the company’s account to her personal credit card account and used the funds for personal purchases including jewelry, clothing, vacations, spa treatments, fitness equipment and entertainment tickets.
On September 19, 2016, LANDMAN pleaded guilty to one count of wire fraud.
This matter was investigated by the U.S. Secret Service, the Stamford Police Department and the Connecticut Financial Crimes Task Force. The case was prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Pennsylvania Man Pleads Guilty to 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., pleaded guilty today in Bridgeport federal court to federal charges stemming from 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.
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. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny in Hartford on April 13, 2017, at which time he faces a mandatory minimum term of imprisonment of seven years and a maximum term of imprisonment of life.
Hennix, of Easton, Pa., Davis, of Allentown, Pa., Houston, of Allentown, and Gay, of the Bronx, N.Y., also pleaded guilty to federal 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, and, on February 8, 2016, Hennix was sentenced to 171 months of imprisonment. Houston awaits sentencing.
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 has been 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 is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Joseph Vizcarrondo.
New Hartford Company to Pay $200K Fine for Failing to Report Clean Air Act Violations to EPARead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Tyler Amon, Special Agent in Charge of EPA’s Criminal Investigation Division for New England, announced that SCP MANAGEMENT, LLC, pleaded guilty before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of failing to notify or report to the U.S. Environmental Protection Agency as required under the Clean Air Act. Following SCP MANAGEMENT’s guilty plea, Judge Underhill immediately imposed sentence and ordered the company to pay a $200,000 fine.
According to court documents and statement made in court, Syntac Coated Products, LLC (“Old Syntac”) operated a manufacturing facility located at 29 Industrial Park Road in New Hartford from 2007 until April 19, 2013, when it sold all of its assets, including its trade name to Syntac Coated Products, LLC (“New Syntac”). Since April 19, 2013, Old Syntac has continued to exist under the name of SCP MANAGEMENT, LLC.
Old Syntac designed and manufactured specialty adhesive films for various applications used in the automotive, electronics and medical industries. In its manufacturing process, the company used three adhesive coating lines. When operating, those coating lines emitted volatile organic compounds (VOCs), some of which were also hazardous air pollutants that are suspected to cause cancer or other serious health effects. Beginning in 2008, the company controlled its emissions of VOCs and hazardous air pollutants from its coating lines with two catalytic oxidizers. Catalytic oxidizers produce chemical reactions that generate heat and promote the oxidation of VOCs to carbon dioxide and water. The company replaced its catalytic oxidizers with a regenerative thermal oxidizer in April 2013.
The Clean Air Act requires the EPA to create a list of the important categories of stationary sources of air pollution, and to establish federal standards of performance for new sources within these categories. These New Source Performance Standards (“NSPS”) apply to newly constructed sources or those that undergo major upgrades or modifications. As required under the NSPS, Old Syntac performed an initial performance test on each catalytic oxidizer in 2008 to demonstrate that VOC emissions from its coating lines were captured and properly controlled. Following the performance tests, the company was required to monitor, record and report the gas temperature upstream and downstream of each incinerator catalyst bed continuously during coating operations in order to demonstrate that the incinerator continued to function properly over time. Every six months, the company was required to submit a report to the EPA that identified any three-hour periods during which the average temperature difference across the catalyst bed in each of its catalytic oxidizers was less than 80 percent of the average temperature difference of the device during the performance test. If no such three-hour periods occurred during the reporting period, the company was required to say so in the report.
Between 2008 and April 2013, Old Syntac used paper temperature charts to record the upstream and downstream temperatures of its catalytic oxidizers during coating operations. Each day, a new temperature chart was installed and the chart for the previous day was removed, reviewed and preserved. On numerous occasions the temperature charts showed that the temperature difference across the catalyst bed was less than 80 percent of the average temperature difference of the device during the performance test. The company also performed tests of its catalyst blocks that indicated the catalysts were likely not destroying all of the VOCs emitted during its production processes. The company failed to file any reports with the EPA, as required under the Clean Air Act, regarding the temperature readings of the oxidizers. Had it done so, EPA could have investigated the company’s compliance further and required additional performance testing.
In addition to paying a $200,000 criminal fine, SCP MANAGEMENT will make a Community Service Payment of $200,000 to the National Fish and Wildlife Foundation, a nonprofit organization that will use the funds for projects and initiatives benefitting air quality in Connecticut. Additionally, SCP MANAGEMENT has acknowledged that, on one or more occasions between 2008 and April 2013, Old Syntac had the potential to emit hazardous air pollutants in excess of “major source” thresholds. Because of the EPA’s “Once In, Always In” policy concerning major sources of air pollutants, New Syntac or any successor entity will be filing an application for a permit under Title V of the Clean Air Act, which will subject the company to heightened regulatory and reporting requirements going forward.
“When Syntac noticed its catalytic oxidizers may not be functioning properly, it failed to report that information to the EPA,” said U.S. Attorney Daly. “A report would have triggered a regulatory review. Not reporting resulted in a criminal investigation. Hopefully, this prosecution will serve as a warning to corporations that if they ignore signs they are polluting the air we breathe, they risk federal prosecution.”
“To protect the surrounding community, the EPA relied on SCP Management to report on the hazardous air pollutants emitted from their Connecticut facility,” said EPA Special Agent in Charge Amon. “The company knowingly failed to report information that showed its emission control equipment was not operating properly, avoided regulatory oversight under the Clean Air Act and garnered an unfair economic benefit over its competitors.”
This matter was investigated by the U.S. Environmental Protection Agency with assistance from the Connecticut Department of Energy and Environmental Protection. The case was prosecuted by Assistant U.S. Attorney Sarala V. Nagala and Special Assistant U.S. Attorney Peter Kenyon.
Waterbury Man Sentenced to 27 Months in Federal Prison for Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that ALVIN LOPES, 40, of Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 27 months of imprisonment, followed by four years of supervised release, distributing 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 March 2016, the Ansonia Police Department and DEA received information that Jamar Jones, also known as “Mitch,” was selling heroin in and around Ansonia and Waterbury, and that some of the heroin distributed by Jones had led to a non-fatal overdose. Officers made multiple controlled purchases of heroin from Jones, and then from LOPES when the investigation revealed that he was working with Jones to distribute heroin.
LOPES has been detained since his arrest on August 10, 2016. On October 14, 2016, he pleaded guilty to one count of conspiracy to distribute heroin.
Jones, of Ansonia, also has pleaded guilty and awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration and the Ansonia Police Department. This case was prosecuted by Assistant U.S. Attorney Robert M. Spector.
Former East Hartford Resident Admits Robbing More than $21K from USPS Employee in HartfordRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DION EDWARD THOMPSON, 39, formerly of East Hartford, pleaded guilty yesterday in Hartford federal court to robbing a U.S. Postal Service employee in Hartford in September 2014.
According to court documents and statements made in court, on September 9, 2014, THOMPSON, and another man who was armed with what appeared to be a firearm, robbed a U.S. Postal Service employee of U.S. Postal Service funds at the Barry Square Post Office, located at 645 Maple Avenue in Hartford. The robbery occurred as the employee was loading the Post Office’s daily proceeds into a postal vehicle, which was parked at the loading dock. Approximately $21,817 in cash, checks and money orders was stolen during the robbery.
THOMPSON pleaded guilty to one count of robbery of a U.S. Postal Service employee, which carries a maximum term of imprisonment of 10 years. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on April 20, 2017.
THOMPSON is currently detained.
This investigation is being conducted by the U.S. Postal Inspection Service with the assistance of the Hartford Police Department and the Colorado Springs (Colo.) Police Department. The case is being prosecuted by Assistant U.S. Attorneys Deborah R. Slater and Douglas P. Morabito.
East Lyme Man Pleads Guilty to Heroin Distribution Charge Stemming from Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that CHRISTOPHER STEVENS, 25, of East Lyme, waived his right to be indicted and pleaded guilty today in New Haven federal court to one count of distribution of heroin. This prosecution is part of an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, early in the morning of June 4, 2016, East Lyme Police and emergency medical personnel responded to a vehicle parked on the side of a road with its engine running and found a 25-year-old male slumped over dead in the driver’s seat, and a young child in the rear seat. Investigators also found a torn wax paper baggy in the man’s hand and several other baggies under his body.
The Office of the Chief Medical Examiner for the State of Connecticut subsequently determined that the victim died from acute heroin and fentanyl toxicities.
The investigation revealed that, shortly before he overdosed, the victim met STEVENS at STEVENS’ East Lyme residence, and STEVENS provided heroin to the victim at that time.
The charge of distribution of heroin carries a maximum term of imprisonment of 20 years. STEVENS is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on April 12, 2017.
This matter is being investigated by the Drug Enforcement Administration’s Tactical Diversion Squad with the assistance of the East Lyme Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Jennifer P. Laraia and Michael E. Runowicz.
Bridgeport Man Charged with Distributing Heroin Involved in Woman's OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that RAMON L. KILLINGS, also known as “Blade,” 39, of Bridgeport, was arrested today on a federal criminal complaint charging him with distributing heroin. The charge stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
After his arrest, KILLINGS appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was ordered detained.
As alleged in court documents, 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. 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.
It is alleged that, when he was arrested this morning, KILLINGS possessed quantities of heroin and crack cocaine.
The complaint charges KILLINGS with possession with intent to distribute, and distribution of, 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’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.
Puerto Rico Man Sentenced to 66 Months in Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSE TORRES SERRANO, 30, of Bayamon, Puerto Rico, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 66 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, on November 19, 2015, the U.S. Department of Homeland Security (“HSI”) in San Juan, Puerto Rico, contacted HSI agents in Hartford and relayed information that two packages containing an approximate combined weight of 5.27 kilograms of cocaine were destined for locations in Waterbury and Middletown. The investigation revealed that SERRANO was responsible for the shipping of the packages from Puerto Rico and was the intended recipient of both packages. SERRANO, who had travelled from Puerto Rico to receive the packages and distribute the cocaine, was arrested at the Waterbury address on November 20, 2015.
SERRANO has been detained since his arrest. On September 16, 2016, he pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine.
This matter was investigated by Homeland Security Investigations, the Middletown Police Department and the Connecticut State Police, with the support and assistance of the Middlesex State’s Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Robert M. Spector and Senior Assistant State’s Attorney Eugene Calistro, who was cross-designated as a Special Assistant U.S. Attorney in this matter.
Hartford Man Sentenced to 3 Years in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ERIC ORTIZ, also known as “Nice,” 35, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 36 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, in September 2014, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department initiated an investigation into narcotics distribution, firearms trafficking and acts of violence carried out by members and associates Los Solidos in Hartford’s South End. The investigation, which included the use of court-authorized wiretaps and controlled purchases of heroin, crack cocaine and firearms, resulted in federal charges against approximately 30 individuals.
In October 2014 and again on three occasions in May 2015, ORTIZ sold crack cocaine to an individual working with law enforcement.
ORTIZ was arrested on June 15, 2015. In January 2016, Hartford Police Department’s Vice and Narcotics unit conducting surveillance in the vicinity of Park Street observed ORTIZ, who was released on bond, engaged in the sale of crack cocaine. His bond was revoked on February 3, 2016.
On August 17, 2016, ORTIZ pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack”).
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics unit, Major Crimes unit, Shooting Task Force and South Conditions Unit have provided valuable assistance to the investigation, and the U.S. Marshals Service and Capitol Region Emergency Response Team (CREST) assisted with the arrests.
This case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Members of Los Solidos attended call-ins that were held in April 2014 and August 2014.
Connecticut Home Health Agency and its Owners Pay $5.25 Million to Settle False Claims Act ViolationsRead the Press Release
United States Attorney Deirdre M. Daly and Connecticut Attorney General George Jepsen today announced that Family Care Visiting Nurse and Home Care Agency, LLC (Family Care VNA), and David A. Krett and Rita C. Krett, R.N., B.S.N., owners of Family Care VNA, have entered into a civil settlement with the federal and state governments in which they will pay approximately $5.25 million to resolve allegations that they violated the federal and state False Claims Acts. Family Care VNA has offices in Stratford, Woodbridge, Norwalk and Meriden, and provides home health services in Fairfield, New Haven, Hartford and Middlesex Counties.
“Home Health Care providers and other providers who fraudulently bill the Medicaid program drive up the cost of health care for all of us,” said U.S. Attorney Daly. “The U.S. Attorney’s office is committed to working with our state counterparts to vigorously pursue health care providers that submit fraudulent claims to government health care programs.”
“Medicaid providers who choose to participate in the Connecticut Medical Assistance Program have a responsibility to ensure that they are in compliance with all applicable laws and regulations and are truthful when they submit claims for payment for services to the Medicaid program,” Attorney General Jepsen said. “We will continue to work to hold accountable those who seek to defraud our taxpayer-funded healthcare programs. I am grateful to our partners in this investigation, especially the U.S. Attorney's Office for the District of Connecticut, the U.S. Department of Health and Human Services Office of Inspector General and Office of Investigations, the Connecticut Medicaid Fraud Control Unit and the Connecticut Department of Social Services Office of Quality Assurance, for their coordination and work in this case, and for the continued cooperation between agencies, both state and federal, as we work to protect our public healthcare programs.”
The allegations against Family Care VNA involve fraudulent billing to Medicaid for certain home health services. The services in question included 60-day assessments, billed pursuant to the Healthcare Common Procedure Coding System code S9123. According to the Healthcare Common Procedure Coding System, this service must be performed by a registered nurse.
It is alleged that Family Care VNA regularly billed S9123 codes when a registered nurse did not provide the assessments as required by Medicaid. Family Care VNA, with the knowledge and at the direction of its owners, regularly billed S9123 claims to Medicaid knowing a registered nurse had not performed the 60-day assessment as required by Medicaid. Additionally, it is alleged Family Care VNA, with the knowledge of its owners, submitted claims to Medicaid for patients who were or may have been dually eligible for Medicare and Medicaid, without first following required procedures for submitting claims to Medicare.
To settle allegations under the federal and state False Claims Acts, Family Care VNA, David Krett and Rita Krett have paid $5,253,908.54, which covers the time period from January 1, 2009 through April 30, 2016. Family Care, VNA, David Krett and Rita Krett also have entered into a Corporate Integrity Agreement with the Office of Inspector General for the U.S. Department of Health and Human Services.
This matter was investigated by Lawrence Marini, Forensic Fraud Examiner for the Connecticut Attorney General’s Office, with the assistance of the Connecticut Department of Social Services, and by the Office of Inspector General for the U.S. Department of Health and Human Services. The case was prosecuted by Assistant Attorney General Karla Turekian and Assistant Attorney General Antonia Conti of the Connecticut Office of the Attorney General, and by Assistant U.S. Attorney Anne F. Thidemann and Auditor Kevin Saunders of the U.S. Attorney’s Office.
U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at (203) 785-9270 or 1-800-HHS-TIPS.
Bank Manager Indicted on Embezzlement ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on January 6, 2017, a federal grand jury in New Haven returned an indictment alleging that CARRIE CAESAR, 46, of New Britain, embezzled funds from her employer, Webster Bank Corporation, where she served as bank manager of the Avon branch office.
According to the indictment and statements made in court, between approximately 2003 and 2016, CAESAR withdrew money from account holders’ certificate of deposit (CD) accounts at Webster Bank, without the knowledge or consent of the account holders, used the embezzled funds for her own purposes, and took steps to conceal her misconduct.
The indictment charges CAESAR with one count of embezzlement by a bank officer or employee, an offense that carries a maximum term of imprisonment of 30 years.
On January 10, 2017, CAESAR appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford, entered a plea of not guilty and was released on a $150,000 bond.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
U.S. Attorney Statement on National Human Trafficking Awareness DayRead the Press Release
The President has designated January as National Slavery and Human Trafficking Prevention Month, and the U.S. Attorney’s Office for the District of Connecticut continues to prioritize human trafficking offenses, which are among the most heinous crimes the Office prosecutes. Federal prosecutors focus their resources on prosecuting the sex trafficking of minors, but also investigates cases involving the sex trafficking of particularly vulnerable adults and labor trafficking.
In November 2015, we announced the formation of the Connecticut Human Trafficking Task Force. The Task Force is composed of special agents from Homeland Security Investigations, the Federal Bureau of Investigation, and the U.S. Department of Labor; investigators from the Connecticut State Police; officers from 16 police departments throughout the state; and representatives from State’s Attorneys’ Offices, and is led by Assistant U.S. Attorney Sarala V. Nagala, Deputy Chief of the Major Crimes and National Security Unit, and Assistant U.S. Attorney David Novick, Chief of the Financial Fraud and Public Corruption Unit.
In recent history, the Office has prosecuted 28 defendants for violations of the human trafficking laws, and in 2016, indicted or obtained guilty pleas from five defendants for sex trafficking. In 2016, in separate cases, Jordan Anate and Romane St. Christopher McKenzie were each sentenced to 10 years in federal prison for engaging in the sex trafficking of minors. In another case, Ramon Gomez pleaded guilty to sex trafficking of a minor in a case where the 17-year-old minor died from an overdose of heroin that was supplied by Gomez.
Members of the U.S. Attorney’s Office routinely participate in trainings for law enforcement officers, hospital workers, school groups and community organizations regarding human trafficking. In January 2017 alone, prosecutors will take part in hotel worker training sponsored by the Connecticut Lodging Association, law enforcement training at the Connecticut Police Officer Standards and Training Academy, and hospital worker training at St. Francis Hospital in Hartford.
Today, as part of National Human Trafficking Awareness Day, I and other members of my Office wore blue in conjunction with the Department of Homeland Security’s Blue Campaign, to stand in solidarity with victims of human trafficking worldwide. The U.S. Attorney’s Office thanks our governmental and non-governmental victim services providers, including the Department of Children and Families and the International Institute of Connecticut, for the critical work they do to help individuals transition from victims to survivors.
Human traffickers, particularly those who prey on children, exploit the most vulnerable segments of our society. We will continue to devote significant federal resources to investigate and prosecute those who profit from the abuse and exploitation of our children.
Deirdre M. Daly
U.S. Attorney for the District of Connecticut
January 11, 2017Shelton Man Sentenced to 46 Months in Federal Prison for Distributing Heroin to Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that JORGE MORALES, also known as “Capone,” 30, of Shelton, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 46 months of imprisonment, followed by three years of supervised release, for distributing heroin. Judge Bolden also ordered MORALES to serve the first six months of supervised release in home confinement.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 15, 2016, a 21-year-old woman was found unresponsive at her Bridgeport residence and was transported to the hospital. She has since died. Bridgeport Police recovered two baggies of suspected heroin packaged in glassine baggies from the bed next to where the victim was located. The baggies were marked with a particular brand stamp. A cellular telephone seized from the victim revealed numerous calls and text messages between the victim and MORALES in the days leading up the victim’s overdose.
On April 15, 2016, law enforcement conducted a controlled purchase of heroin, in baggies marked with the same brand stamp, from MORALES.
MORALES has been detained since his arrest on April 20, 2016. On July 13, 2016, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
This investigation was conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad with the assistance of the Bridgeport, Derby, Shelton, Monroe, Middlebury and Woodbridge Police Departments. The 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. This case was prosecuted by Assistant U.S. Attorney Robert M. Spector.
El Paso Man Sentenced to 12 Years in Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAUL CHAVEZ, 57, of El Paso, Texas, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 144 months of imprisonment, followed by five years of supervised release, for trafficking cocaine. CHAVEZ also was ordered to pay a $250,000 fine.
According to court documents and statements made in court, CHAVEZ headed a cocaine trafficking operation that smuggled cocaine from Mexico into El Paso, Texas, and then transported the drug to Connecticut and elsewhere. The investigation revealed that the Chavez organization had been supplying multiple kilograms of cocaine to Hartford-area distributors since approximately 2004. The shipments, which would typically be in the range of 30 to 40 kilograms, were sent regularly from El Paso multiple times per year.
In 2014, the Chavez organization attempted to find an additional source of supply for its Hartford area cocaine customers. In July 2014, a DEA confidential source met Andrew Duron, also known as “Chavo,” in North Carolina. During the meeting, Duron told the confidential source that he wanted to purchase up to 50 kilograms of cocaine for $28,000 per kilogram. On August 14, 2014, Duron, the confidential source and an undercover DEA agent met in New Jersey where Duron agreed to purchase 25 kilograms of cocaine. In subsequent conversations with the confidential source, Duron stated that he wanted an extra $1000 per kilogram as a side deal. They agreed on a total price of $725,000 for 25 kilograms of cocaine.
The investigation revealed that this cocaine shipment was destined for Tyshawn Welborn, also known as “Black,” of Bloomfield, and Todd Vernon of Hartford, the latter of whom prepaid for approximately 13 kilograms of cocaine.
On August 22, 2014, CHAVEZ and others met with Welborn at a restaurant in East Windsor where they discussed the pick-up of money from Welborn the following day and its delivery to a location to be determined.
On August 23, 2014, Duron met the undercover DEA agent at a location in Wethersfield. Duron told the undercover agent that his associates were in Connecticut and that Duron and the undercover agent would need to travel to a store parking lot near Bradley International Airport to verify that the money was in place. Duron and the undercover agent then drove in separate vehicles to a store parking lot on Kennedy Road in Windsor. Duron met with CHAVEZ and another associate in the store. A short time later, a third associate arrived in a Jeep Wrangler, met the undercover agent in the parking lot, showed him a duffel bag and said it contained “half” of the money. Shortly thereafter, investigators arrived at the scene and arrested Duron, CHAVEZ and his associates.
Investigators also recovered from the Jeep a duffel bag containing approximately $284,000 in cash, and a loaded .38 caliber revolver. The cash had been picked up from Welborn earlier that day.
After word reached CHAVEZ’s son, Christopher Chavez, that his father and others had been arrested, Christopher Chavez coordinated the diversion of a shipment of 34 kilograms of cocaine, which was en route to Connecticut, to a high-level drug distributor in Cleveland, Ohio.
CHAVEZ has been detained since his arrest. On March 11, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.
Duron, Welborn, Vernon and Christopher Chavez also pleaded guilty. On September 22, 2015, Duron, of El Paso, was sentenced to 84 months of imprisonment; on October 7, 2016, Christopher Chavez, of El Paso, was sentenced to 60 months of imprisonment, and on December 21, 2016, Welborn was sentenced to 84 months of imprisonment. Vernon awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration’s Hartford Task Force, including personnel from the DEA Hartford Resident Office and the Bristol, Hartford, Manchester, New Britain, Newington, and Wethersfield Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and Amy C. Brown.
Stafford Springs Man Sentenced to 18 Months in Federal Prison for Defrauding U.S. VeteransRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN J. SIMON, JR., also known as “Buzzy Simon,” 69, of Stafford Springs, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 18 months of imprisonment, followed by three years of supervised release, for defrauding U.S. veterans.
According to court documents and statements made in court, from March 2009 to August 2010, SIMON, a Vietnam War veteran, engaged in a scheme to defraud four military veterans by representing that, in exchange for money, he could assist them in obtaining increased benefits from the Department of Veterans Affairs (“VA”). The veterans suffer from service-related disabilities and/or are chronically ill. SIMON falsely represented that the money the veterans provided to him would be used to pay for the services of an attorney or other expenses. With respect to one veteran, SIMON also falsely told him that he would assist the veteran in obtaining Social Security benefits.
SIMON did not initiate any claims for the four veterans and he did not incur any legal or other expenses on behalf of the veterans. Rather, he kept the money for his personal use.
As part of the plea agreement, SIMON has agreed that he defrauded 11 other military veterans and one non-veteran by representing that he could obtain new or increased benefits from the VA or Social Security Administration.
In total, SIMON defrauded 16 victims of approximately $525,521.
SIMON also structured approximately $36,000 in cash deposits into his bank account from October 2009 to June 2010. The funds structured were payments he had received from the fraud scheme. At the time, SIMON knew that the bank was required to issue a report for a currency transaction in excess of $10,000, and that by conducting his financial transactions in amounts less than $10,000.01, he intended to evade the transaction reporting requirements.
Federal law requires all financial institutions to file a Currency Transaction Report (“CTR”) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
SIMON was arrested on a criminal complaint on May 15, 2013. On October 3, 2016, he pleaded guilty to one count of mail fraud and one count of structuring currency transactions.
In October 2010, the IRS seized $210,085.58 from SIMON’s bank account. The seized funds will be used to pay restitution to SIMON’s victims. Judge Shea ordered SIMON to pay $315,435.42 in additional restitution.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division and the U.S. Department of Veterans Affairs, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
New Haven Man Sentenced to 57 Months in Prison for Role in Fraudulent Oxycodone Prescription RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALEJANDRO PROSPER, also known as “Pun,” 36, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 57 months of imprisonment, followed by four years of supervised release, for his role in a scheme to distribute oxycodone that was obtained through fraudulent prescriptions.
According to court documents and statements made in court, in 2012, members of the Drug Enforcement Administration’s New Haven Tactical Diversion Squad began an investigation into a drug trafficking organization that manufactured fraudulent prescriptions for oxycodone and distributed the drug in the greater New Haven area. As part of the conspiracy, members of organization obtained the personal identifying information of medical practitioners and used the information to create fraudulent prescriptions. Conspiracy members also purchased legitimate prescriptions for oxycodone from individuals. The organization then used individuals, or “runners,” to fill the fraudulent prescriptions at pharmacies throughout Connecticut. Once a runner provided his or her personal information to a member of the organization, the runner’s information was kept on file and used to create other fraudulent prescriptions.
PROSPER purchased large quantities of illegally-obtained oxycodone from Julian Cintron and David Thompson, and sold the pills, as well as other narcotics, to his own customers.
The investigation revealed that, between February 2013 and September 2015, the organization stole the personal identifying information of more than 50 doctors and medical professionals and fraudulently obtained more than 80,000 oxycodone pills. Investigators identified more than 800 fraudulent prescriptions passed by members of the organization using more than 270 different “patient” names.
Nearly all of the runners employed by the conspiracy held state-sponsored medical insurance, so the costs of the prescriptions were billed to Medicaid. Members of the drug trafficking organization then sold the oxycodone for $20 to $30 per 30 milligram pill.
On October 18, 2016, PROSPER pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute oxycodone.
Eleven individuals have been charged as a result of the investigation.
Cintron and Thompson, both of New Haven, pleaded guilty and await sentencing.
The DEA Tactical Diversion Squad includes members from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Amy C. Brown and Robert M. Spector.
Hartford Crack Dealer Sentenced to 5 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT MINNIFIELD, also known as “B.O.” and “Slim,” 32, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine. Judge Thompson also ordered MINNIFIELD to perform 100 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. MINNIFIELD and others targeted during the investigation were affiliated with groups and gangs who have been involved in acts of violence. The investigation revealed that MINNIFIELD and others sold crack cocaine in the area of Edgewood Street and Albany Avenue. In June and July 2015, law enforcement made controlled purchases of crack from MINNIFIELD.
On September 23, 2016, MINNIFIELD 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”).
MINNIFIELD’s criminal history includes multiple state felony convictions, including convictions for assault, firearm offenses and sale of narcotics. He was on special parole at the time of this federal offense, and is currently serving the balance of his state sentence. He will begin his federal sentence when he is released from state custody.
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.
Former Torrington Resident Admits Role in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARIO PASCUAL AQUINO, 36, formerly of Torrington, pleaded guilty today in Hartford federal court to one count of theft of public money stemming from his role in a stolen identity tax refund fraud scheme.
According to court documents and statements made in court, AQUINO was involved in a conspiracy to fraudulently obtain U.S. Treasury tax refund checks made payable to individuals other than themselves, whose personal identifying information was stolen by co-conspirators. Typically, the individuals whose identities were stolen were citizens of Puerto Rico.
Between October 2011 and March 2013, AQUINO cashed approximately $650,000 worth of fraudulently-obtained tax refund checks at a check cashing store in Torrington. He also opened his own check cashing store in Hartford, Mega Money Transfers, and, in 2011 and 2012, proceeded to cash more than 300 fraudulently-obtained refund checks valued at a total of $750,926 through that store. Finally, Aquino sold six fraudulently-obtained refund checks valued at a total of $60,929 to an undercover agent. He also provided the undercover agent with a fraudulent Connecticut driver license in the name of an identity theft victim.
AQUINO is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on April 6, 2017, at which time he faces a maximum term of imprisonment of 10 years, a fine of up to approximately $2.9 million, and an order of restitution.
AQUINO, who most recently resided in Pasadena, Texas, has been detained since his arrest on May 31, 2016.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations, U.S. Postal Inspection Service, Waterbury Police Department, Hartford Police Department and Pasadena (Tex.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
Windsor Man Pleads Guilty to Distributing Child PornographyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JONATHAN RHOADES, 32, formerly of Windsor, pleaded guilty yesterday before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of distribution of child pornography.
According to court documents and statements made in court, in December 2014, a member of the Connecticut State Police’s Computer Crimes squad, operating in an undercover capacity, accessed a peer-to-peer file sharing network and downloaded six videos of minors engaging in sexually explicit conduct from an Internet Protocol (IP) address that was subsequently linked to RHOADES’s residence in Windsor.
On March 10, 2015, law enforcement officers executed a search warrant RHOADES’s residence and seized a desktop computer, laptop computer and other items. Forensic analysis of the seized computers revealed at least 1,535 images and 49 videos of child pornography, most of which featured children younger than the age of five.
RHOADES has been detained since his arrest on related state charges on March 18, 2015. On November 10, 2015, a federal grand jury in Hartford returned an indictment charging RHOADES with one count of distribution of child pornography.
Judge Meyer scheduled sentencing for March 28, 2017, at which time RHOADES faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
This matter has been investigated by the Connecticut State Police and Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Previously Convicted Felon Pleads Guilty to Fraud Charge, Admits Violating Supervised ReleaseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN VOLOSHIN, 60, formerly of New Haven and Woodbridge, pleaded guilty today in Hartford federal court to one count of wire fraud and also admitted to violating a condition of his federal supervised release.
On May 17, 2012, U.S. District Judge Robert N. Chatigny sentenced VOLOSHIN to 33 months of imprisonment and three years of supervised release for operating multiple fraud schemes that caused losses of more than $1.5 million to individuals and lenders. As part of the schemes, VOLOSHIN forged signatures and used fabricated bank account statements, tax returns, mortgage releases and loan applications. VOLOSHIN was released from prison on May 16, 2014, and began serving a three-year term of supervised release.
Shortly after his release from prison, in an attempt to gain permission from the U.S. Probation Office to travel to London, VOLOSHIN repeatedly lied to and misled his supervising probation officer by concocting a bogus job for a real estate concern in London. On November 7, 2014, Judge Chatigny sentenced VOLOSHIN to an additional nine months of imprisonment and 27 months of supervised release for violating the terms and conditions of his federal supervised release.
VOLOSHIN was released from prison on June 8, 2015, and began serving his 27-month term of supervised release.
According to court documents and statements made in court, beginning in the fall of 2015, VOLOSHIN engaged in another fraud scheme by soliciting money from individuals and representing that the money would be fully invested to generate very high returns. Although VOLOSHIN did invest some of the victims’ money, he used substantial portions of the victims’ money for personal expenses, including a $20,000 payment toward a luxury apartment in Manhattan, and for plastic surgery, fine dining, retail shopping and alcohol.
VOLOSHIN has been detained since his arrest on May 26, 2016.
VOLOSHIN pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years and a fine of up to $250,000. He also admitted to one violation of the terms and conditions of his federal supervised release, which carries a maximum term of imprisonment of two years. He is scheduled to be sentenced by Judge Chatigny in Hartford on May 4, 2017.
The matter is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Marc H. Silverman and David T. Huang.