District of Connecticut
Press releases recorded for this federal judicial district.
Attorney Admits Role in Life Insurance SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID QUATRELLA, 61, of Trumbull, waived his right to be indicted and pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to a conspiracy charge stemming from a scheme to defraud insurance companies into issuing insurance policies on the lives of elderly people for the benefit of QUATRELLA and other investors, also known as a stranger-originated life insurance (“STOLI”) scheme.
According to court documents and statement made in court, between approximately June 2008 and January 2016, QUATRELLA and others, including insurance brokers based in California, New Jersey and Florida, assisted elderly persons in applying for multimillion dollar life insurance policies. QUATRELLA, who is an attorney, and his co-conspirators offered the insureds the promise of free life insurance for two years, after which QUATRELLA and his co-conspirators would attempt to sell the policy and provide a share of the proceeds to the insured. The insured was not obligated to pay anything and was commonly told that the premiums were being borrowed from a third-party source. As part of the scheme, QUATRELLA and others recruited investors to finance the payment of premiums on the life insurance policies, with the understanding that the investors would earn a profit upon the sale of the policy.
QUATRELLA and his co-conspirators then caused to be submitted to various life insurance providers applications containing false and misleading information, and which failed to disclose the third-party premium funding arrangements for the policies.
QUATRELLA and his co-conspirators received large commissions from the providers as a result of the issuance of insurance policies on the lives of the insureds, and QUATRELLA personally profited approximately $272,000 as a result of the scheme. QUATRELLA and his co-conspirators attempted to sell the life insurance policies to life settlement investment funds or brokers but, in certain cases, they could not find a buyer and the policies lapsed.
QUATRELLA pleaded guilty to one count of conspiracy to commit wire fraud. Judge Thompson scheduled sentencing for April 28, 2017, at which time, QUATRELLA faces a maximum term of imprisonment of five years. QUATRELLA also has agreed to forfeit $272,000.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
East Lyme Resident Charged with Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that on December 7, 2016, a federal grand jury in New Haven returned an indictment charging REGAN TIPPETT, 41, of East Lyme, with filing false tax returns.
According to the indictment and statements made in court, TIPPETT is a partner in the bails bonds company, Statewide Bail Bonds. It is alleged that, for the 2009 through 2012 tax years, TIPPETT failed to report approximately $260,000 in taxable income that was derived from bail bond fees.
The indictment charges TIPPETT with four counts of filing a false tax return, an offense that carries a maximum term of imprisonment three years on each count.
TIPPETT appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and pleaded not guilty to the charges. He was released on a $50,000 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 has been investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Agreement Ensures Effective Communication with Hearing Impaired Individuals at John Dempsey HospitalRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that the John Dempsey Hospital, which is a part of the University of Connecticut Health Center, has entered into a voluntary resolution agreement with the U.S. Attorney’s Office for the District of Connecticut and the U.S. Department of Health and Human Services, Office for Civil Rights (OCR), to ensure effective communication with, and enhance the quality of services for, persons who are deaf or hard of hearing.
This matter was initiated by a complaint filed with the Department of Justice (DOJ) by Connecticut’s Office of Protection and Advocacy for Persons with Disabilities alleging violations of Title II of the Americans with Disabilities Act (ADA). Specifically, the complaint alleges that an individual who is deaf and communicates using American Sign Language (ASL) was discriminated against and denied an interpreter when John Dempsey Hospital failed to timely provide auxiliary aids and services during an Emergency Department visit for medical treatment. According to the complainant, she was forced to rely on her boyfriend’s limited ability to interpret her symptoms during the medical examination because her request for an ASL interpreter was denied by hospital staff. Within two days after discharge, the complainant’s symptoms had escalated, and she ultimately had an emergency appendectomy at another hospital because her appendix had burst.
Title II of the ADA prohibits public entities, including hospitals, from discrimination against qualified individuals with disabilities by excluding such individuals from participation in or denying them the benefits of the services, programs, or activities of a public entity, or subjecting them to discrimination by any public entity. A public entity is required to furnish appropriate auxiliary aids and services where necessary to afford individuals with disabilities, including applicants, participants, companions, and members of the public, an equal opportunity to participate in, and enjoy the benefits of, a service, program, or activity of a public entity. The U.S. Attorney’s Office investigates allegations of violations of the ADA and commences enforcement action as and when appropriate.
In coordination with DOJ, HHS-OCR initiated a compliance review of John Dempsey Hospital with regard to the Hospital’s policies and procedures for ensuring effective communication with individuals who are deaf or hard of hearing to determine the Hospital’s compliance with Section 504 of the Rehabilitation Act of 1973. Section 504 of the Act prohibits discrimination on the basis of disability in any program or activity receiving federal financial assistance. The investigation raised concerns about the Hospital’s policies and procedures to ensure effective communication with deaf or hard of hearing individuals.
Under the agreement, which resolves both the DOJ complaint investigation and the HHS-OCR compliance review, John Dempsey Hospital is obligated to take critical steps toward improving access to ensure communication with deaf and hard of hearing individuals is as effective as communication with those without disabilities, including revising its policies and procedures, revising its training, and performing initial and ongoing assessments of the need for auxiliary aids and services for patients and their companions who are deaf or hard of hearing.
John Dempsey Hospital also has agreed to pay the complainant $20,000 to resolve the matter.
The agreement is effective for two years, during which time both HHS-OCR and the U.S. Attorney’s Office will monitor the Hospital’s compliance.
“An important component of our federal law enforcement responsibilities is the protection of vulnerable communities, especially people struggling with disabilities,” said U.S. Attorney Daly. “Enforcement of the ADA is one of many tools we use to help achieve that goal. We are gratified with the number of ADA settlements that we have reached with public and private entities in Connecticut, and applaud the level of cooperation that these entities have demonstrated. UConn Heath Center, in particular, has already implemented a number of changes at John Dempsey Hospital that will benefit not only individuals who are deaf and hard of hearing, but others with a broad range of disabilities, and ultimately all hospital patrons and companions.”
A copy of the voluntary resolution agreement may be found at: www.ada.gov/jdh_sa.html.
This matter was handled by Assistant U.S. Attorney Vanessa Roberts Avery.
To learn more about the ADA and its application to public entities, places of public accommodation and commercial facilities, call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Former Attorney Pleads Guilty to Defrauding Clients of More Than $824KRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOHN O’BRIEN, 53, waived his right to be indicted and pleaded guilty yesterday in New Haven federal court to one count of wire fraud related to his stealing more than $824,000 from clients of his law practice.
According to court documents and statements made in court, O’BRIEN was an attorney with an office located in Fairfield. Between approximately April 2011 and June 2014, O’BRIEN defrauded four clients by using funds from one client to pay off debts owed in connection with his representation of other clients, and also to pay for personal expenses, including the tuition for one of his children at a private high school.
In approximately May 2012, O’BRIEN accepted $458,343.06 into his Interest on Lawyer Trust Account (“IOLTA”) as proceeds of a reverse mortgage taken by a client (“Client 1”) and his client’s wife, both of whom are now deceased. The funds from the reverse mortgage were intended to pay debts that would keep the client’s family business sustainable. Between June 2012 and February 2014, O’BRIEN disbursed only $204,000 to the family business. In approximately July 2013, O’BRIEN received an additional $194,636.89 from bank accounts held in the name of his client and one of his client’s children. The funds were supposed to be distributed to the client’s children. Only $104,008 was distributed. In approximately April 2014, O’BRIEN accepted $837,250 into his IOLTA as proceeds of a sale of his client’s real property. Only $470,000 of that amount was disbursed to his client’s heirs. The first check written from O’BRIEN’s IOLTA account upon receipt of the $837,250 was to a prior unrelated client for a debt owed to that client. In total, O’BRIEN defrauded Client 1 of $712,221.95.
In May 2011, O’BRIEN deposited $74,250 from a second client (“Client 2”) into his IOLTA. The money was never disbursed to the client.
In approximately September 2011, O’BRIEN agreed to represent a terminally ill woman (“Client 3”) for estate planning. Upon this client’s death in January 2013, O’BRIEN received $137,000 from the estate into his IOLTA. After the deposit, O’BRIEN paid personal expenses from the IOLTA, including his son’s private school tuition and thousands of dollars to his ex-wife. Only $112,283.20 was distributed to the heirs of O’ BRIEN’s client. Upon a review of this matter by the Connecticut Bar Statewide Grievance Committee, O’BRIEN produced fraudulent memos allegedly written to the daughter of his client requesting “release” of various amounts. One of the memos included payment to the family business of Client 1 for a $15,000 lawnmower, which was paid for from Client 3’s estate. Client 3 did not purchase a lawnmower from the family business of Client 1.
O’BRIEN represented a client (“Client 4”) in the purchase of the client’s deceased mother’s home in Westport. In two payments in August 2013 and February 2014, the client transferred to O’BRIEN approximately $199,332 for purchase of the home, which O’BRIEN was supposed to pay to the fiduciary of the estate to complete the sale. In approximately April 2014, O’BRIEN finally paid the fiduciary of the estate to complete the sale. The check to the fiduciary of Client 4’s mother’s estate was the first check written from the defendant’s IOLTA upon receipt of the $837,250 in Client 1’s real estate sale proceeds. Because of the delay in the defendant’s transfer of payment to the fiduciary of the estate, Client 4 incurred approximately $13,558.38 in storage fees for belongings while the property was unavailable for occupancy by Client 4.
While O’BRIEN was engaged in the above conduct, he made withdrawals of thousands of dollars in cash from his IOLTA. On several occasions, deposits of the same or similar amounts were made into his personal bank account on the same day that the funds were withdrawn from his IOLTA.
O’BRIEN is scheduled to sentenced by Chief U.S. District Judge Janet C. Hall on March 23, 2017, at which time he faces a maximum term of imprisonment of 20 years, a fine of up to approximately $1.6 million, and restitution in the amount of $824,747.13.
O’BRIEN resigned from the Connecticut bar in June 2015.
This matter is being investigated by the U.S. Secret Service and the Connecticut Financial Crimes Task Force, with assistance from investigators of the Connecticut Statewide Bar Grievance Committee. The case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
Overdose Investigations Lead to Heroin and Cocaine Distribution Charges against Bethel ManRead 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, today announced that PAUL MIGNANI, 51, of Bethel, was arrested last night on cocaine and heroin distribution offenses. 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.
MIGNANI is charged by criminal complaint with possession with intent to distribute, and distribution of, heroin and cocaine. The charge carries a maximum term of imprisonment of 20 years. He appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.
According the complaint, on July 31, 2016, Bethel Police responded to a residence in Bethel on report of a possible heroin overdose and found an unresponsive 54-year-old female. The victim was pronounced deceased shortly thereafter. It is alleged that MIGNANI distributed heroin that was consumed by the victim shortly before her death. In addition, on December 11, 2016, members of the Bethel Police and medical personnel responded to the report of an unresponsive 25-year old female at MIGNANI’s residence. It is alleged that MIGNANI distributed the controlled substances that were consumed by this victim shortly before her death.
On December 12, 2016, law enforcement conducted a court-authorized search of MIGNANI’s residence and seized approximately three grams of cocaine. MIGNANI was arrested on related state charges on that date.
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, and the Bethel Police Department, with assistance from the States Attorney’s Office for the Judicial District of Danbury. The DEA 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. The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
West Haven Man Admits to Falsely Certifying Asbestos Abatement Supervisor Course CompletionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Tyler C. Amon, Special Agent in Charge of EPA’s Criminal Investigation Division in New England, Patricia Ferrick, Special Agent in Charge of the Federal Bureau of Investigation in Connecticut, Thomas Muskett, Special Agent in Charge of EPA’s Office of Inspector General for the Washington Field Office, and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for the Boston Division, today announced that GUIDO A. CORTES-RODRIGUEZ, 64, of West Haven, pleaded guilty yesterday in Hartford federal court to one count of making a false statement to the federal government.
According to court documents and statements made in court, CORTES was a training instructor at North Star Center For Human Development (“North Star”), an organization that offered a variety of training courses and certification to individuals working with lead paint and asbestos. CORTES was the training manager and a primary instructor for those courses.
North Star’s lead and asbestos training courses were subject to regulation under the training provider accreditation requirements of the federal Toxic Substances Control Act (TSCA). TSCA allowed states to obtain U.S. Environmental Protection Agency (EPA) authorization to administer and enforce the standards, regulations and other requirements of the TSCA’s lead and asbestos programs, including the approval of training courses. The State of Connecticut received such authorization for asbestos and lead programs. Individuals in Connecticut who perform or supervise asbestos abatement activities must be certified by the Connecticut Department of Public Health (CT DPH). To obtain certification, an individual must successfully complete an approved 40-hour asbestos abatement supervisor initial training course. North Star applied for and received approval from CT DPH to offer a wide range of lead and asbestos training courses, including asbestos abatement supervisor initial and refresher courses.
On December 16, 2015, CORTES sent notice to the CT DPH that an asbestos abatement supervisor initial training course would be conducted at North Star’s facility in Hartford from December 27, 2015 to January 2, 2016. Further, he advised that a 32-hour lead abatement worker initial course would be conducted from January 3 to January 6, 2016 at the same location. CORTES was identified as the training manager and primary course instructor for both courses.
An undercover FBI agent attempted to attend the second course under a fictitious identity, seeking a lead abatement worker initial course completion certificate. The agent skipped the first three days of the course, and attempted to attend on January 6, 2016. Upon arrival at the facility, the agent learned that no course was being conducted at North Star that day, and further, that no classes had been conducted for weeks.
The agent called the instructor, CORTES, who agreed to meet him at the North Star facility the following day. When the agent met with CORTES on January 7, 2016, the agent indicated he was interested in trying to get work as soon as possible. CORTES provided him with a list of items he would need from the agent, including his name, mailing address, Social Security number, passport-type photos and $1,260.
Later that day, the agent returned to CORTES’s office with the listed items and CORTES met with him in a cubicle. CORTES asked various biographical questions of the agent, filled out paperwork, and provided the agent with three certificates issued to A.R.: a 40-Hour Asbestos Abatement Supervisor Initial Certification, a 32-Hour Lead Abatement Worker Initial Certification, and an OSHA 10-Hour Construction Safety Training Course. CORTES accepted $1,260 cash in payment from the agent. The agent attended no classes conducted by CORTES at North Star, received no training from CORTES in these subject areas, and did not take any examinations. The false certificates issued by CORTES to the agent were signed by CORTES, bore an individual certificate number, and otherwise appeared to meet the requirements of Connecticut’s approved lead and asbestos accreditation programs, and therefore, the federal accreditation requirements. Subsequent investigation determined that CORTES provided fraudulent training certificates on multiple occasions.
“Government regulations related to asbestos and lead abatement exist for a very important reason: To ensure that this work is done properly and safely without endangering the public health,” said U.S. Attorney Daly. “Individuals who game the system, especially those who illegally profit from it, will be prosecuted.”
“Asbestos and lead removal training providers are entrusted with keeping safe the supervisors, workers and the public that hire them,” said Special Agent in Charge Amon. “Trainers who cheat and provide false certificates will continue to be a focus for EPA enforcement since they pose too great a risk to the public health.”
CORTES is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on April 18, 2016, at which time CORTES faces a maximum term of imprisonment of five years and a fine of up to $250,000.
This matter has been investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division and Office of Inspector General, Federal Bureau of Investigation, and Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King and Special Assistant U.S. Attorney Peter Kenyon.
New Haven Man Sentenced to More Than 8 Years in Federal Prison for Trafficking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ELIO DELIMA, also known as “Victor Cuevas” and “Ely,” 39, of New Haven, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to 105 months of imprisonment, followed by four years of supervised release, for supplying heroin to a New Haven-based drug trafficking ring.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into the distribution of heroin in New Haven. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of heroin, revealed that Wilson Vasquez, also known as “Will” and “Pancho,” obtained bulk quantities of heroin from DELIMA and others, processed and packaged the drug with several co-conspirators, and then distributed the drug through a network of street-level distributors operating in the area of Ferry Street, Grand Avenue and Blatchley Avenue in New Haven’s Fair Haven neighborhood.
During the investigation, law enforcement seized approximately 500 grams of raw heroin, three handguns and five vehicles. In addition, bank accounts containing more than $300,000 have been frozen.
Seventeen individuals were charged as a result of this investigation. All 17 pleaded guilty.
DELIMA has been detained since his arrest on July 15, 2015. On September 15, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
Vasquez awaits sentencing.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Patrick Caruso.
New Haven Man Sentenced to Additional Prison Time for Violating Conditions of Supervised ReleaseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALPHONZO DIXON, also known as “Fonz,” 29, of New Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 12 months and one day of imprisonment for violating his conditions of supervised release that followed a 2014 conviction for drug and firearm offenses.
DIXON was originally charged as a result of an FBI New Haven Safe Streets Task Force, New Haven Police Department and Connecticut State Police investigation into drug distribution and related violence being committed by members and associates of the Grape Street Crips in New Haven. He subsequently pleaded guilty to possession of a firearm by a previously convicted felon and conspiracy to possess with intent to distribute crack cocaine.
On April 7, 2014, DIXON, who had been detained since March 26, 2012, was sentenced to 46 months of imprisonment, followed by three years of supervised release. He was released from prison on December 31, 2015.
On September 17, 2016, DIXON and another individual physically assaulted a man at a convenience store in New Haven.
Judge Underhill ordered DIXON to serve 22 months of supervised release when he released from federal custody.
This case was prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Anthony E. Kaplan.
New Haven Man Sentenced to 7 Years for Committing 6 Bank Robberies in Connecticut and New YorkRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JUAN CRUZ, 38, of New Haven, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 84 months of imprisonment, followed by three years of supervised release, for committing six bank robberies in Connecticut and New York last year.
According to court documents and statements made in court, CRUZ robbed the Santander Bank at 215 Grand Avenue in New Haven on October 15, 2015; the Wells Fargo Bank at 205 Church Street in New Haven on October 20, November 7 and November 21, 2015; the Bank of America at 157 Church Street in New Haven on November 9, 2015, and the Citizens Bank at 10 North Pearl Street in Albany, N.Y., on November 20, 2015. CRUZ stole a total of approximately $18,830 during the robbery spree.
CRUZ was arrested on November 21, 2015, in Chicopee, Mass. On September 22, 2016, he pleaded guilty to one count of bank robbery. He has been detained since his arrest.
This investigation was conducted by the Federal Bureau of Investigation and the New Haven Police Department, with the assistance of the U.S. Marshals Service, Chicopee (Mass.) Police Department and Albany (N.Y.) Police Department. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Illinois Man Charged with Child Exploitation OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) in Boston, and Chief Vincent DeMaio of the Clinton Police Department, announced that a federal grand jury in Bridgeport returned an indictment today charging ARTURO CASTRO, 52, of Wilmette, Illinois, with multiple child exploitation offenses.
As alleged in court documents and statements made in court, in approximately December 2013, CASTRO began communicating with a 15-year-old female in Connecticut through “Chess with Friends,” and online app. Using the app’s chat option, CASTRO asked the minor victim to send him naked photographs of herself, and subsequently enticed the minor victim to create videos depicting the minor victim engaged in sexually explicit conduct and send those videos to CASTRO. In March 2014, CASTRO traveled from Illinois to Connecticut and engaged in illicit sexual activity with the minor victim.
The indictment charges CASTRO with one count of coercion and enticement of a minor to engage in sexual activity, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; one count of travel in interstate commerce with intent to engage in illicit sexual activity with a minor, an offense that carries a maximum term of imprisonment of 30 years; and one count of receipt of child pornography, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
CASTRO was arrested on December 13, 2016, in Wilmette, Illinois. In a detention hearing earlier today in U.S. District Court for the Northern District of Illinois, in Chicago, CASTRO was detained pending trial and ordered removed to the District of Connecticut.
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 Homeland Security Investigations in New Haven and Chicago, and the Clinton (Conn.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Waterford Man Charged with Child Exploitation OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in Hartford returned an indictment today charging RICHARD BRUNO, 46, of Waterford, with one count of attempted enticement of a minor to engage in illegal sexual activity, and one count of production of child pornography.
The indictment alleges that, from April 8, 2016 to May 5, 2016, BRUNO used a cellular phone and internet-based messaging and photograph sharing services to attempt to entice a minor under 18 years of age to engage in sexual activity. The indictment further alleges that, from November 2015 through May 2016, BRUNO enticed or coerced a minor to engage in sexually explicit conduct for the purpose of producing a video depiction of such conduct.
If convicted, BRUNO faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life for attempted enticement of a minor, and a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of life for production of child pornography.
BRUNO has been on in state custody since May 19, 2016, when he was arrested on related state charges.
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, Connecticut State Police and New London Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
To report cases of child exploitation, please visit www.cybertipline.com.
Bloomfield Man Sentenced to 7 Years in Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that TYSHAWN WELBORN, also known as “Black,” 38, of Bloomfield, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 84 months of imprisonment, followed by three years of supervised release, for trafficking cocaine. WELBORN also was ordered to pay a $200,000 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 Todd Vernon of Hartford since approximately 2004, and WELBORN 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. 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 WELBORN and Vernon, the latter of whom prepaid for approximately 13 kilograms of cocaine.
On August 22, 2014, WELBORN met Chavez and others 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 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.
WELBORN was arrested on August 26, 2015. On August 22, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.
Raul Chavez, Christopher Chavez, Duron and Vernon also pleaded guilty. On September 22, 2015, Duron, of El Paso, was sentenced to 84 months of imprisonment and, on October 7, 2016, Christopher Chavez, of El Paso, was sentenced to 60 months of imprisonment. Raul Chavez and Vernon await 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.
New York Man Sentenced to 37 Months in Federal Prison for Illegally Possessing a FirearmRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JUAN QUINONES, 43, of Port Chester, N.Y, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 37 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on September 24, 2015, Stamford Police executed a court-authorized search of a local hotel room where QUINONES was staying and found a loaded Glock .45 caliber pistol and distribution quantities of heroin and crack cocaine. QUINONES was arrested at that time.
QUINONES was previously convicted of felony drug offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
QUINONES has been detained since his arrest. On September 8, 2016, he pleaded guilty to one count of possession of a firearm by a convicted felon.
The 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.
New Haven Man Sentenced to Nearly 7 Years in Federal Prison for Role in Heroin Distribution RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that VICTOR RIVERA, 44, of New Haven, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport, to 83 months of imprisonment, followed by four years of supervised release, for his role in a heroin distribution ring.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into the distribution of heroin in New Haven. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of heroin, revealed that Wilson Vasquez, also known as “Will” and “Pancho,” obtained bulk quantities of heroin, processed and packaged the drug with several co-conspirators, including RIVERA, and then distributed the drug through a network of street-level distributors operating in the area of Ferry Street, Grand Avenue and Blatchley Avenue in New Haven’s Fair Haven neighborhood.
During the investigation, law enforcement seized approximately 500 grams of raw heroin, three handguns and five vehicles. In addition, bank accounts containing more than $300,000 have been frozen.
Seventeen individuals were charged as a result of this investigation. All 17 pleaded guilty.
RIVERA’s criminal history includes a prior federal conviction in 2004 for his role in a heroin distribution conspiracy. He received a sentence of 48 months of imprisonment on that conviction, and additional prison terms after twice being found to have violated the conditions of his supervised release.
RIVERA has been detained since his arrest on July 15, 2015. On September 7, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
Vasquez awaits sentencing.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Patrick Caruso.
New Haven Man Pleads Guilty to Federal Firearm OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ISAAC LONG, 37, of New Haven, pleaded guilty yesterday in New Haven federal court to one count of possession of a firearm during and in relation to a drug trafficking crime.
According to court documents and statements made in court, on October 19, 2015, LONG was arrested by New Haven police officers after he was found in possession of a loaded Smith and Wesson nine millimeter semi-automatic pistol, and a quantity of crack cocaine that he intended to distribute.
LONG is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on March 20, 2017, at which time he faces a mandatory term of imprisonment of at least five years, which must be imposed consecutively to a state sentence that LONG is currently serving.
LONG has been detained since his arrest.
The matter has been investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Jennifer Laraia.
Ledyard Man Who Distributed Heroin Involved in Overdose Death Pleads GuiltyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TIMOTHY PAPROCKI, 33, of Ledyard, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford 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 April 12, 2016, Groton Town Police responded to a report of a medical emergency involving a 25-year-old male. The victim, who had used heroin, was transported to the hospital where he was pronounced deceased. The investigation, which has included witness interviews and the review of cellphone records and text messages, revealed that the victim had arranged to purchase heroin from PAPROCKI. PAPROCKI then purchased the heroin from Rudy Hernandez and sold it to the victim.
PAPROCKI has been detained since his arrest on April 20, 2016.
Judge Shea scheduled sentencing for March 15, 2017, at which time PAPROCKI faces a maximum term of imprisonment of 20 years.
On July 6, 2016, Hernandez, of New London, pleaded guilty to one count of distribution of heroin. On November 21, he was sentenced to 34 months of imprisonment.
This matter has been investigated by the DEA’s New Haven Tactical Diversion Squad and the Town of Groton Police Department. The Tactical Diversion Squad includes members 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.
Citizen of China Who Attempted Illegal Export of Advanced Military Computer Chips is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Mary B. McCord, Acting Assistant Attorney General for National Security, announced that JIANG YAN, 34, of Shenzhen, China, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to approximately 12 months of imprisonment, time already served, for attempting to purchase and export to China without a required license certain sophisticated integrated circuits used in military satellites and missiles, and for conspiring to sell counterfeits of those same integrated circuits to a purchaser in the United States.
According to court documents and statements made in court, YAN, Xianfeng Zuo, and Daofu Zhang each operated businesses in China that bought and sold electronic components, including integrated circuits (“ICs”). In the summer of 2015, Zuo asked YAN to locate and purchase several advanced ICs made by Xilinx Corp., which owing to their radiation tolerance for uses in space, have military applications in missiles and surveillance satellites. YAN then asked a U.S. individual to locate the Xilinx ICs and sell them to YAN. The U.S. individual explained that the ICs cannot be shipped outside the U.S. without an export license, but YAN still wished to make the purchase. When the U.S. individual expressed concern that the desired ICs would have to be stolen from military inventory, YAN proposed to supply the U.S. source with “fake” ICs that “look the same,” to replace the ones to be stolen from the military.
In November 2015, Zhang shipped from China, to the U.S. individual, two packages containing a total of eight counterfeit ICs, each bearing a counterfeit Xilinx brand label. After further discussions between YAN and the U.S. individual, YAN, Zhang, and Zuo flew together from China to the U.S. in early December 2015 to complete the Xilinx ICs purchase.
On December 10, 2015, the three conspirators drove to a location near Route 95 in Milford, Connecticut, where they planned to meet the U.S. individual, make payment, and take custody of the Xilinx ICs. Federal agents arrested all three at the meeting location.
YAN has been detained since his arrest. On March 7, 2016, he pleaded guilty to one count each of conspiracy to traffic in counterfeit goods, and attempted unlicensed export of export-controlled items.
As part of his sentence, YAN was ordered to forfeit $63,000 in cash seized incident to his arrest.
YAN will be transferred to the custody of the Department of Homeland Security and deported to China.
Zhang and Zuo also pleaded guilty. They were each sentenced to 15 months of imprisonment on July 8, 2016, and November 4, 2016, respectively.
This matter was investigated by the Defense Criminal Investigative Service, the Department of Homeland Security, the Department of Commerce, the Federal Bureau of Investigation, and the Air Force Office of Special Investigations. The case was prosecuted by Assistant U.S. Attorney Henry Kopel and National Security Division’s Counterintelligence and Export Control Section Trial Attorneys Casey Arrowood and Thea Kendler.
Hartford Man Found Guilty of Gang-Related MurderRead the Press Release
United States Attorney Deirdre M. Daly and Chief State’s Attorney Kevin T. Kane announced that a federal jury in New Haven has found ARTHUR STANLEY, also known as “Wiggs,” 27, guilty of committing the July 15, 2011 murder of Keith Washington, 23, of Windsor. The trial before U.S. District Judge Jeffrey A. Meyer began on December 5 and the jury returned its verdict this afternoon.
This matter stems from a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of the Westhell and Team Grease street gangs and gang-related violent activity. Officers and inspectors of the Cold Case Homicide Unit of the Office of the Chief State’s Attorney are participating in the investigation.
At approximately 9:28 p.m. on July 15, 2011, the Hartford Police Department received a report of shots fired in the vicinity of 67 Oakland Terrace in Hartford. Officers responding to the scene located an unconscious person lying on the front porch of the residence with an apparent gunshot wound to the head. The victim, who was subsequently identified as Keith Washington, was transported to the hospital where he succumbed to his injuries on July 17, 2011.
According to the trial evidence and testimony, STANLEY, a member of the Westhell street gang, attempted to shoot and kill a member of a rival street gang who was talking with Washington on the front porch of 67 Oakland Terrace. He missed his intended target and shot Washington instead.
STANLEY has been detained in federal custody since April 2014 when he was arrested on federal narcotics charges. On October 27, 2015, a federal grand jury in New Haven returned an indictment charging STANLEY with engaging in a Violent Crime in Aid of Racketeering.
Judge Meyer scheduled sentencing for March 14, 2017, at which time STANLEY faces a mandatory term of imprisonment of life. STANLEY previously pleaded guilty to a crack cocaine conspiracy charge, and also will be sentenced for that offense.
This ongoing investigation is being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force and the Cold Case Homicide Unit of the Office of the Chief State’s Attorney. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case is being prosecuted by Assistant U.S. Attorneys Peter S. Jongbloed and John H. Durham with the assistance of New Haven State’s Attorney Patrick Griffin, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
Chinese National Admits to Stealing Sensitive Military Program Documents from United TechnologiesRead the Press Release
Yu Long, 38, a citizen of China and lawful permanent resident of the U.S., waived his right to be indicted and pleaded guilty today in New Haven federal court to charges related to his theft of numerous sensitive military program documents from United Technologies and transporting them to China.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Deirdre M. Daly of the District of Connecticut, Special Agent in Charge Patricia M. Ferrick of the New Haven Division of the Federal Bureau of Investigation, Special Agent in Charge Matthew Etre of Homeland Security Investigations (HSI) in Boston, Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service (DCIS) Northeast Field Office, and Special Agent in Charge Danielle Angley of the U.S. Air Force Office of Special Investigations.
“Long admitted to stealing and exploiting highly sensitive military technology and documents, knowing his theft would benefit China’s defense industry and deliberately contravene the embargo on U.S. Munitions List technology the United States has imposed on China,” said Acting Assistant Attorney General McCord. “Export laws exist as an important part of our national security framework and disrupting and prosecuting this kind of economic espionage is one of the National Security Division’s highest priorities.”
“In an effort to further his own career, this defendant stole an extraordinary amount of proprietary military program information from United Technologies and transported much of that stolen information to China,” said U.S. Attorney Deirdre M. Daly. “His actions, which he knew would benefit China, not only violated his employment agreement and damaged the company, but have threatened our country's national security interests. U.S. companies continue to be targeted by those who seek to steal intellectual property, trade secrets and advanced defense technology – whether through a computer hack or cyber intrusion, or through a rogue employee. Working closely with our nation’s defense contractors, we will relentlessly investigate and prosecute those who steal, or attempt to steal, trade secrets and sensitive military information, whether for their own personal gain or for the benefit of foreign actors.”
“This case highlights the complexity in which the FBI and law enforcement are being challenged to keep the integrity of our industry intellectual property intact,” said Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation. “Investigating criminal activity of this nature will continue to be a priority.”
“These sophisticated technologies are highly sought after by our adversaries,” said Special Agent in Charge Matthew Etre of HSI Boston. “They were developed to give the United States and its allies a distinct military advantage, which is why HSI and our law enforcement partners will continue to aggressively target the individuals who steal the ideas of others and sell these items.”
“Today’s plea demonstrates the commitment of the Defense Criminal Investigative Service (DCIS) and our federal law enforcement partners to identifying those who illegally export sensitive defense information to adversarial Foreign governments,” said Craig W. Rupert, Special Agent in Charge, DCIS, Northeast Field Office. “DCIS will continue to safeguard sensitive technology and to shield America's investment in national defense by disrupting efforts of groups and individuals who try to illegally acquire our national security assets.”
“This case was enabled by the outstanding teamwork of the FBI, DCIS, HSI, AFOSI and the U.S. Attorney's office,” said Danielle Angley, Special Agent-in-Charge with the Air Force Office of Special Investigations. “In addition, it demonstrates the focus of law enforcement agencies to protect our nation's critical resources.”
According to court documents and statements made in court, from approximately May 2008 to May 2014, Long worked as a Senior Engineer/Scientist at United Technologies Research Center (UTRC) in Connecticut. Long’s employment at UTRC included work on F119 and F135 engines. The F119 engine is employed by the U.S. Air Force F-22 Raptor fighter aircraft, and the F135 engine is employed by the U.S. Air Force F-35 Lightning II fighter aircraft.
Beginning in 2013, Long expressed his intent to individuals outside UTRC to return to China to work on research projects at certain state-run universities in China using knowledge and materials he had acquired while employed at the UTRC. To that end, Long interacted with several state-run institutions in China, including the Chinese Academy of Science (CAS) and the Shenyang Institute of Automation (SIA), a state-run university in China affiliated with CAS.
During 2013 and 2014, Long was recruited by SIA and other state-run universities, during which he leveraged information that he had obtained while working at UTRC to seek employment in China, culminating in his travel to China in the possession of voluminous documents and data containing highly sensitive intellectual property, trade secrets and export controlled technology, which he had unlawfully stolen from UTRC.
In December 2013, after Long agreed in principle to join SIA, an SIA-CAS Director and an SIA-CAS Recruiter asked Long to provide documents from his work at UTRC and examples of projects on which he had worked to substantiate the claims Long made in his application, and interview with SIA. Long agreed.
On Dec. 24, 2013, Long emailed several documents to the SIA-CAS Director, including a document that contained the cover page of an export controlled UTRC presentation on Distortion Modeling dated Sept. 30, 2011.
While negotiating with SIA, Long also continued to explore other opportunities at other state-run institutions in China. In one email, Long stated: “I have made my mind to return to China, so have prepared a research plan based on my industry experience and current projects.” In the research plan, Long stated: “In the past five years, I have been working with Pratt Whitney, also other UTC business units, like UTAS (including Hamilton Sundstrand and Goodrich), Sikorsky, CCS (including Carrier and Fire & Security), and Otis. These unique working experiences have provided me a great starting point to perform R&D and further spin off business in China. I believe my efforts will help China to mature its own aircraft engines.”
On May 30, 2014, Long left UTRC. In June 2014, Long traveled to China and began working for SIA. Beginning in July 2014, digital evidence and forensic analysis indicated that Long brought with him and accessed in China a UTRC external hard drive that had been issued to him and that he unlawfully retained.
In July 2014, Long was listed as the project leader on a lengthy research plan for CAS involving fourteen other individuals. The plan was replete with references to how the proposed research and development would benefit China. The plan stated: “The three major engine companies in the world, i.e. GE, Pratt & Whitney in the US and Rolls-Royce in the UK, are all using this technology. . . Our nation lacks the ability to process high performance components, such as airplane wings, tail hooks on carrier aircrafts, and blisks . . . Because of the technology embargo imposed by western developed countries, it is very difficult for us to obtain more advanced design and manufacturing technology . . . This research project will increase our independent ability, efficiency and quality in key component manufacturing.”
On or about Aug. 12, 2014, the Document on Distortion Modeling – the same document from which Long had sent the cover page to the SIA-CAS Director on Dec. 24, 2013 – was accessed on the external hard drive. Travel records and forensic analysis confirmed that both Long and the external hard drive were in China when this file was accessed.
On Aug. 19, 2014, Long returned to the U.S. from China through John F. Kennedy International Airport in New York. During a secondary inspection screening by U.S. Customs and Border Protection (CBP) officers, Long was found in the possession of a largely completed application for work with a state-controlled aviation and aerospace research center in China. The application highlighted certain parts of Long’s work related to the F119 and F135 engines while at UTRC.
On or about Aug. 20, 2014, Long emailed an individual at a university in China, attaching an updated “achievement and future plan.” In the plan, Long discussed his work related to the F119 and F135 U.S. military fighter jet engines and stated that he also had knowledge of unpublished UTRC projects in which the U.S. Air Force had shown interest.
On Nov. 5, 2014, Long boarded a flight from Ithaca, New York to Newark Liberty International Airport in Newark, New Jersey, with a final destination of China. During Long’s layover in Newark, CBP officers inspected Long’s checked baggage and discovered that it contained sensitive, proprietary and export controlled documents from another defense contractor, Rolls Royce.
Further investigation determined that the U.S. Air Force had convened a consortium of major defense contractors, including Pratt and Rolls Royce, to work together to see whether they could collectively lower the costs of certain metals used. As part of those efforts, members of the consortium shared technical data, subject to restrictions on further dissemination. Rolls Royce reviewed the documents found in Long’s possession at Newark Liberty Airport and confirmed that it provided the documents to members of the consortium, which included Pratt. Rolls Royce further confirmed that Long was never an employee of Rolls Royce. A review of UTRC computer records indicated that Long had printed the documents while employed at UTRC.
Long was arrested on a federal criminal complaint on Nov. 7, 2014. A review of Long’s digital media seized at the time of his arrest revealed voluminous files protected by the International Traffic in Arms Regulations and Export Administration Regulations, and voluminous files proprietary to various U.S. companies. In short, the investigation revealed that Long took his laptop and the UTRC external hard drive with him to China in 2014, at which time there was a substantial body of highly sensitive, proprietary and export controlled materials present on that digital media. UTRC has confirmed that the hard drive that Long unlawfully retained and accessed in China contained not only documents and data from projects on which Long worked while employed at the company, but also from projects on which he did not work to which he would have had access.
Long pleaded guilty to one count of conspiracy to engage in the theft of trade secrets knowing that the offense would benefit a foreign government, foreign instrumentality or foreign agent, an offense that carries a maximum term of imprisonment of 15 years. He also pleaded guilty to one count of unlawful export and attempted export of defense articles from the U.S. in violation of the Arms Export Control Act, an offense that carries a maximum term of imprisonment of 20 years.
Long, who has been detained since his arrest, will be sentenced by U.S. District Judge Robert N. Chatigny in Hartford. A sentencing date has not been scheduled.
This investigation is being led by the FBI in New Haven in coordination with Homeland Security Investigations in New Haven and Newark; the Defense Criminal Investigative Service in New Haven; the U.S. Air Force’s Office of Special Investigations in Boston, Massachusetts; and, the Department of Commerce’s Boston Office of Export Enforcement. U.S. Attorney Daly and Acting Assistant Attorney General McCord also thanked the FBI in Newark, Ithaca and Syracuse, New York, the U.S. Customs and Border Protection Service in New York and Newark, and the U.S. Attorney’s Offices for the Northern District of New York and the District of New Jersey, for their efforts and assistance in this matter.
This case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Stephen B. Reynolds of the District of Connecticut, and Trial Attorneys Brian Fleming and Julie Edelstein of the National Security Division’s Counterintelligence and Export Control Section.
Chinese National Admits to Stealing Sensitive Military Program Documents from United TechnologiesRead the Press Release
Yu Long, 38, a citizen of China and lawful permanent resident of the U.S., waived his right to be indicted and pleaded guilty today in New Haven federal court in Connecticut, to charges related to his theft of numerous sensitive military program documents from United Technologies and transporting them to China.
Long pleaded guilty to one count of conspiracy to engage in the theft of trade secrets knowing that the offense would benefit a foreign government, foreign instrumentality or foreign agent, an offense that carries a maximum term of imprisonment of 15 years. He also pleaded guilty to one count of unlawful export and attempted export of defense articles from the U.S. in violation of the Arms Export Control Act, an offense that carries a maximum term of imprisonment of 20 years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Deirdre M. Daly for the District of Connecticut, Special Agent in Charge Matthew Etre of Homeland Security Investigations (HSI) in Boston, Massachusetts, Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service (DCIS) Northeast Field Office, Special Agent in Charge Patricia M. Ferrick of the FBI’s New Haven Division and Special Agent in Charge Danielle Angley with the Air Force Office of Special Investigations (AFOSI).
“Long admitted to stealing and exploiting highly sensitive military technology and documents, knowing his theft would benefit China’s defense industry and deliberately contravene the embargo on U.S. Munitions List technology the United States has imposed on China,” said Acting Assistant Attorney General McCord. “Export laws exist as an important part of our national security framework and disrupting and prosecuting this kind of economic espionage is one of the National Security Division’s highest priorities.”
“In an effort to further his own career, this defendant stole an extraordinary amount of proprietary military program information from United Technologies and transported much of that stolen information to China,” said U.S. Attorney Daly. “His actions, which he knew would benefit China, not only violated his employment agreement and damaged the company, but have threatened our country's national security interests. U.S. companies continue to be targeted by those who seek to steal intellectual property, trade secrets and advanced defense technology – whether through a computer hack or cyber intrusion, or through a rogue employee. Working closely with our nation’s defense contractors, we will relentlessly investigate and prosecute those who steal, or attempt to steal, trade secrets and sensitive military information, whether for their own personal gain or for the benefit of foreign actors.”
“These sophisticated technologies are highly sought after by our adversaries,” said Special Agent in Charge Etre. “They were developed to give the United States and its allies a distinct military advantage, which is why HSI and our law enforcement partners will continue to aggressively target the individuals who steal the ideas of others and sell these items.”
"Today's plea demonstrates the commitment of the Defense Criminal Investigative Service and our federal law enforcement partners to identifying those who illegally export sensitive defense information to adversarial Foreign governments," said Special Agent in Charge Rupert. "DCIS will continue to safeguard sensitive technology and to shield America's investment in national defense by disrupting efforts of groups and individuals who try to illegally acquire our national security assets."
“This case highlights the complexity in which the FBI and law enforcement are being challenged to keep the integrity of our industry intellectual property intact,” said Special Agent in Charge Ferrick. “Investigating criminal activity of this nature will continue to be a priority.”
“This case was enabled by the outstanding teamwork of the FBI, DCIS, HSI, AFOSI and the U.S. Attorney's office,” said, Special Agent in Charge Angley. “In addition, it demonstrates the focus of law enforcement agencies to protect our nation's critical resources.”
According to court documents and statements made in court, from approximately May 2008 to May 2014, Long worked as a Senior Engineer/Scientist at United Technologies Research Center (UTRC) in Connecticut. Long’s employment at UTRC included work on F119 and F135 engines. The F119 engine is employed by the U.S. Air Force F-22 Raptor fighter aircraft, and the F135 engine is employed by the U.S. Air Force F-35 Lightning II fighter aircraft.
Beginning in 2013, Long expressed his intent to individuals outside UTRC to return to China to work on research projects at certain state-run universities in China using knowledge and materials he had acquired while employed at the UTRC. To that end, Long interacted with several state-run institutions in China, including the Chinese Academy of Science (CAS) and the Shenyang Institute of Automation (SIA), a state-run university in China affiliated with CAS.
During 2013 and 2014, Long was recruited by SIA and other state-run universities, during which he leveraged information that he had obtained while working at UTRC to seek employment in China, culminating in his travel to China in the possession of voluminous documents and data containing highly sensitive intellectual property, trade secrets and export controlled technology, which he had unlawfully stolen from UTRC.
In December 2013, after Long agreed in principle to join SIA, an SIA-CAS Director and an SIA-CAS Recruiter asked Long to provide documents from his work at UTRC and examples of projects on which he had worked to substantiate the claims Long made in his application, and interview with SIA. Long agreed.
On Dec. 24, 2013, Long emailed several documents to the SIA-CAS Director, including a document that contained the cover page of an export controlled UTRC presentation on Distortion Modeling dated Sept. 30, 2011.
While negotiating with SIA, Long also continued to explore other opportunities at other state-run institutions in China. In one email, Long stated: “I have made my mind to return to China, so have prepared a research plan based on my industry experience and current projects.” In the research plan, Long stated: “In the past five years, I have been working with Pratt Whitney, also other UTC business units, like UTAS (including Hamilton Sundstrand and Goodrich), Sikorsky, CCS (including Carrier and Fire & Security), and Otis. These unique working experiences have provided me a great starting point to perform R&D and further spin off business in China. I believe my efforts will help China to mature its own aircraft engines.”
On May 30, 2014, Long left UTRC. In June 2014, Long traveled to China and began working for SIA. Beginning in July 2014, digital evidence and forensic analysis indicated that Long brought with him and accessed in China a UTRC external hard drive that had been issued to him and that he unlawfully retained.
In July 2014, Long was listed as the project leader on a lengthy research plan for CAS involving fourteen other individuals. The plan was replete with references to how the proposed research and development would benefit China. The plan stated: “The three major engine companies in the world, i.e. GE, Pratt & Whitney in the US and Rolls-Royce in the UK, are all using this technology. . . Our nation lacks the ability to process high performance components, such as airplane wings, tail hooks on carrier aircrafts, and blisks . . . Because of the technology embargo imposed by western developed countries, it is very difficult for us to obtain more advanced design and manufacturing technology . . . This research project will increase our independent ability, efficient and quality in key component manufacturing.”
On or about Aug. 12, 2014, the document on Distortion Modeling – the same document from which Long had sent the cover page to the SIA-CAS Director on Dec. 24, 2013 – was accessed on the external hard drive. Travel records and forensic analysis confirmed that both Long and the external hard drive were in China when this file was accessed.
On Aug. 19, 2014, Long returned to the U.S. from China through John F. Kennedy International Airport in New York. During a secondary inspection screening by U.S. Customs and Border Protection (CBP) officers, Long was found in the possession of a largely completed application for work with a state-controlled aviation and aerospace research center in China. The application highlighted certain parts of Long’s work related to the F119 and F135 engines while at UTRC.
On or about Aug. 20, 2014, Long emailed an individual at a university in China, attaching an updated “achievement and future plan.” In the plan, Long discussed his work related to the F119 and F135 U.S. military fighter jet engines and stated that he also had knowledge of unpublished UTRC projects in which the U.S. Air Force had shown interest.
On Nov. 5, 2014, Long boarded a flight from Ithaca, New York to Newark Liberty International Airport in Newark, New Jersey, with a final destination of China. During Long’s layover in Newark, CBP officers inspected Long’s checked baggage and discovered that it contained sensitive, proprietary and export controlled documents from another defense contractor, Rolls Royce.
Further investigation determined that the U.S. Air Force had convened a consortium of major defense contractors, including Pratt and Rolls Royce, to work together to see whether they could collectively lower the costs of certain metals used. As part of those efforts, members of the consortium shared technical data, subject to restrictions on further dissemination. Rolls Royce reviewed the documents found in Long’s possession at Newark Liberty Airport and confirmed that it provided the documents to members of the consortium, which included Pratt. Rolls Royce further confirmed that Long was never an employee of Rolls Royce. A review of UTRC computer records indicated that Long had printed the documents while employed at UTRC.
Long was arrested on a federal criminal complaint on Nov. 7, 2014. A review of Long’s digital media seized at the time of his arrest revealed voluminous files protected by the International Traffic in Arms Regulations and Export Administration Regulations, and voluminous files proprietary to various U.S. companies. In short, the investigation revealed that Long took his laptop and the UTRC external hard drive with him to China in 2014, at which time there was a substantial body of highly sensitive, proprietary and export controlled materials present on that digital media. UTRC has confirmed that the hard drive that Long unlawfully retained and accessed in China contained not only documents and data from projects on which Long worked while employed at the company but also from projects on which he did not work to which he would have had access.
A sentencing date has not been set. Long has been detained since his arrest.
This investigation is being led by the FBI in New Haven in coordination with Homeland Security Investigations in New Haven and Newark; the Defense Criminal Investigative Service in New Haven; the U.S. Air Force’s Office of Special Investigations in Boston, Massachusetts; and, the Department of Commerce’s Boston Office of Export Enforcement. U.S. Attorney Daly and Acting Assistant Attorney General McCord also thanked the FBI in Newark, Ithaca and Syracuse, New York, the U.S. Customs and Border Protection Service in New York and Newark, and the U.S. Attorney’s Offices for the Northern District of New York and the District of New Jersey, for their efforts and assistance in this matter.
This case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Stephen B. Reynolds of the District of Connecticut, and Trial Attorneys Brian Fleming and Julie Edelstein of the National Security Division’s Counterintelligence and Export Control Section.Hartford Man Pleads Guilty to Distributing Heroin, Illegally Possessing FirearmRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DANIEL GAMERO, 24, of Hartford, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to heroin distribution and firearm possession offenses.
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.
According to court documents and statements made in court, in February 2016, Hartford Police began investigating the distribution of heroin marked with a particular brand stamp that was linked to at least two overdose deaths, one in Vernon on February 1 and one in Granby on March 22. Between February and April 2016, law enforcement conducted four controlled purchases of heroin marked with the same stamp from GAMERO and his associate, Charlie Tacuri.
GAMERO and Tacuri were arrested on April 21. On that date, a search of GAMERO’s Preston Street residence revealed approximately 650 bags of heroin, a quantity of marijuana, a loaded firearm and approximately $1,600 in cash. At the time of Tacuri’s arrest, Tacuri possessed approximately 60 bags of heroin and approximately $1,200 in cash.
GAMERO pleaded guilty to one count of conspiracy to distribute heroin, which carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive term of imprisonment of at least five years. Judge Shea scheduled sentencing for March 13, 2017.
On December 8, 2016, Tacuri, 19, formerly of Hartford, pleaded guilty to one count of conspiracy to distribute heroin. He is scheduled to be sentenced on March 6, 2017.
This investigation is being conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Hartford, Vernon and Granby Police Departments. The Tactical Diversion Squad includes members 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 H. Gordon Hall.
New Haven Man Pleads Guilty to CarjackingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ELBERT LLORENS, 24, of New Haven, pleaded guilty today before U.S. Magistrate Judge Robert A. Richardson in Hartford to a federal carjacking offense.
According to court documents and statements made in court, on January 1, 2016, two men from out of state who were driving a rented 2015 Volkswagen Passat were victims of an armed carjacking in the vicinity of Hobart Street and Myrtle Street in Meriden. The victims reported that they had stopped to ask an individual, later identified as Kyle Valentine, for directions to a gas station. Valentine told the victims to follow his car, which they did. After traveling a few minutes, Valentine’s car stopped and LLORRENS pointed a handgun at one of the victims who was sitting in the passenger seat of the car, opened the door and stated “I want everything.” The victims exited the car and LLORRENS and Valentine stole their wallets and cell phones and then drove away in the Passat.
In pleading guilty, LLORRENS also admitted that, on January 3, 2016, he committed armed robberies of a gas station in East Haven and a gas station in New Haven; on January 4, 2016, he attempted to rob a convenience store in Milford; and, on January 5, 2016, he used a firearm and threats of violence to steal a 2006 Chevy Cobalt and a wallet from a victim in New Haven.
LLORRENS was arrested by New Haven Police shortly after the January 5 carjacking.
LLORRENS pleaded guilty to one count of taking a motor vehicle from a person by force and violence or by intimidation, an offense that carries a maximum term of imprisonment of 25 years. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on March 15, 2017. LLORRENS has been detained since his arrest.
Valentine, 25, of New Haven, pleaded guilty to the same charge on August 11, 2016. He awaits sentencing, and also is detained.
This matter is being investigated by the Federal Bureau of Investigation and the East Haven, Meriden, Milford and New Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Hartford Man Charged with Distributing Heroin Involved in Overdose of East Haddam ResidentRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that HECTOR RAUL CINTRON, also known as “G” and “Big G,” 22, of Hartford, was arrested today on a federal criminal complaint charging him 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.
Following his arrest, CINTRON appeared before U.S. Magistrate Judge Robert A. Richardson in Hartford and was ordered detained.
As alleged in court documents, in the morning of March 19, 2016, Connecticut State Police and emergency medical personnel responded to a residence in East Haddam on the report of an “untimely death.” The victim, an 18-year-old male, was pronounced dead at the scene. At the scene, State Police seized the victim’s cell phone and multiple glassine bags containing powder residue. The investigation revealed that Kerry Scanlan, of Avon, arranged to purchase heroin from CINTRON in Hartford. On March 18, 2016, the victim drove to Avon, picked up Scanlan and then drove to Hartford to purchase heroin from CINTRON.
On April 4, 2016, the Office of the Chief Medical Examiner issued a report listing the victim’s cause of death as “acute fentanyl intoxication.”
It is further alleged that, on two occasions in November 2016, CINTRON sold approximately 200 bags of heroin to an individual working with law enforcement.
The complaint charges CINTRON with possession with intent to distribute, and distribution of, heroin, an offense that carries a maximum term of imprisonment of 20 years.
Scanlan was arrested on the same charge on August 9, 2016.
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, Connecticut State Police Statewide Narcotics Task Force East and East Haddam Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Waterbury Man Pleads Guilty to Health Care Fraud ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MAURICE SHARPE, 44, of Waterbury, waived his right to indictment and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of health care fraud.
This matter stems from an ongoing health care fraud investigation being conducted by the Office of the Inspector General of the U.S. Department of Health and Human Services, the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office and the Connecticut Office of the Attorney General. The investigation identified fraudulent activity in the area of behavioral health services. Through the Medicaid program, the State of Connecticut provides coverage for mental health and counseling services to citizens who cannot otherwise afford health insurance. “Behavioral health” includes a wide variety of health care providers who provide care on an outpatient basis, including psychiatrists, psychologists, licensed clinical social workers, licensed marriage and family therapists, licensed professional counselors, and licensed alcohol and drug counselors.
According to court documents and statements made in court, in February 2011, SHARPE and his mother, Patricia Lafayette, and another individual, formed Family First Community Support Services, LLC, a social services agency located in Torrington. SHARPE was the office manager for the agency. Lafayette and the other individual approached Anne Charlotte Silver, a licensed clinical social worker who owned and operated Silver Counseling Services, LLC, in Canton and Bantam. Lafayette and the other individual proposed a scheme to Silver to defraud Medicaid by permitting Lafayette and the other individual to bill Medicaid for psychotherapy services using Silver’s Medicaid provider number. The services were either performed by unlicensed individuals or not performed at all. Under the scheme, Silver kept 25 percent of the proceeds, and paid the remaining 75 percent to Lafayette and the other individual.
As part of his plea, SHARPE admitted that he submitted claims to Medicaid for psychotherapy services that falsely represented that Silver had personally provided the services. SHARPE also admitted that he submitted hundreds of claims to Medicaid for psychotherapy services purportedly provided to SHARPE’s family members, including SHARPE’s children and nieces and nephews, when no such services were ever provided. SHARPE also assisted in the preparation of records that falsely documented the nature and extent of the services received by his family members.
The charge of health care fraud carries a maximum term of imprisonment of 10 years. A sentencing date has not been scheduled.
Lafayette and Silver previously pleaded guilty to health care fraud for their roles in the scheme. As part of their pleas, Lafayette and Silver admitted defrauding Medicaid of over $1.6 million through the scheme. They both await sentencing.
This matter is being prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Rhode Island Man Charged with Traveling to Connecticut to Engage in Sex with MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in Hartford returned an indictment today charging NICHOLAS MURPHY, 27, of Exeter, R.I., with one count of traveling to engage in illegal sexual activity with a minor.
The indictment alleges that in September 2015, MURPHY travelled from Rhode Island to Connecticut for the purpose of engaging in a sexual act with a minor
If convicted of the charge, MURPHY faces a maximum term of imprisonment of 30 years.
MURPHY was arrested on related state charges on May 9, 2016. He is scheduled to be arraigned on December 28 in Hartford federal court.
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, Plainfield Police Department and Rhode Island State Police. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Overdose Investigation Results in 30-Month Sentence for Norwich ManRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JONATHAN FISHER, 35, of Norwich, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 30 months of imprisonment, followed by three years of supervised release, for 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, on April 9, 2016, Norwich Police responded to a medical emergency at FISHER’s residence. The emergency involved an 18-year-old male who had died from an apparent heroin overdose. FISHER was not present at the time law enforcement had arrived. A search of the victim’s wallet revealed one used glassine baggy and 10 unopened baggies marked with a particular brand stamp. A field test of the substance in the baggies yielded a positive presence for both heroin and fentanyl.
Approximately one month prior to the overdose death, FISHER was arrested by Norwich Police after he was found in possession of numerous baggies of heroin that were marked with the same stamp.
On April 12, 2016, Norwich Police arrested FISHER at a Norwich hotel. A search of FISHER’s wallet contained two glassine baggies containing suspected heroin and marked with the same brand stamp. A search of the hotel room where FISHER had been staying revealed more than 300 bags of heroin, prescription narcotics, more than one pound of marijuana, a digital scale and hundreds of empty glassine bags marked with the same stamp.
On May 2, 2016, FISHER pleaded guilty to one count of possession with the intent to distribute, and distribution of, heroin. FISHER, who had been released on bond, was remanded to the custody of the U.S. Marshals Service at the conclusion of today’s court proceeding.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Norwich Police Department. The Tactical Diversion Squad includes members 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 Avi M. Perry.
Connecticut Man Sentenced to More Than 15 Years in Prison for Sexual Exploitation of 3 MinorsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIEL JESSE CONRAD, 32, formerly of New Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 186 months of imprisonment, followed by 10 years of supervised release, for producing child pornography.
According to court documents and statements made in court, between October 2013 and June 2014, CONRAD sexually exploited three different minor females. CONRAD met one of the minor females in February 2014 through Omegle, an internet video chatting service. The minor was 15 years old at the time and lived in Connecticut. After their initial conversation, CONRAD and the minor female began communicating regularly through the Kik text messaging and photo sharing application on their cell phones. On March 1, 2014, the two met in person, and CONRAD drove the minor to Massachusetts where they engaged in sexual activity. Subsequently, on five or six occasions between March and June 2014, CONRAD picked up the minor and drove her to his residence in Connecticut where they engaged in sexual intercourse. During some of the encounters, CONRAD used his iPhone to take videos and pictures of the minor engaged in sexual activity.
In addition to meeting the minor in person, CONRAD had several online video conversations with the minor over Skype and Omegle. During some of these video conversations, the minor engaged in sexually explicit conduct, which CONRAD recorded and saved on his computer. CONRAD also repeatedly persuaded the minor to take sexually explicit pictures of herself at her home and send them to him via Kik.
CONRAD similarly communicated with two other minors, who were also 15 years old at the time, over Skype and Omegle. One of the minors lived in New York and the other minor lived in Nebraska. As with the first victim, during several of the video conversations, CONRAD persuaded them to engage in sexually explicit conduct, which CONRAD recorded and saved on his computer. CONRAD also repeatedly persuaded the minors to take sexually explicit pictures of themselves at their homes and send them to him via Kik.
In total, CONRAD had saved on his computer and iPhone approximately 200 images and 52 videos of the three minors engaged in sexually explicit conduct.
On May 17, 2016, CONRAD waived indictment and pleaded guilty to one count of production of child pornography.
After his arrest on September 10, 2015, CONRAD was released on bond and placed on electronic monitoring. At the conclusion of today’s sentencing proceeding, he was remanded to custody to begin serving his sentence.
This matter was investigated by Homeland Security Investigations and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
New London Manufacturing Company to Pay $1 Million for Violating the Clean Water ActRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Tyler Amon, Special Agent in Charge of EPA’s Criminal Investigation Division for New England, and Commissioner Robert Klee of the Connecticut Department of Energy and Environmental Protection announced that SHEFFIELD PHARMACEUTICALS, LLC, formerly known as Faria Limited, LLC, has entered into a deferred prosecution agreement with the government to resolve violations of the Clean Water Act.
In proceedings today before U.S. District Judge Alvin W. Thompson in Hartford, the government filed a criminal information charging SHEFFIELD PHARMACEUTICALS (“SHEFFIELD”) with violating the Clean Water Act. As part of a deferred prosecution agreement, SHEFFIELD is required to commit no criminal conduct, comply with all applicable environmental laws and regulations, and pay $1 million, most of which will support environmental conservation projects in coastal Connecticut. SHEFFIELD will make the payment in installments over a seven-year period. If SHEFFIELD fully complies with this agreement, the information will be dismissed.
The information and deferred prosecution agreement relate to the conduct of Thomas H. Faria, SHEFFIELD’s former president and chief executive officer, who pleaded guilty to a felony violation of the Clean Water Act on July 8, 2014. From at least April 2004 to May 2011, under Faria’s leadership, SHEFFIELD discharged polluted industrial wastewater from its New London factory into the municipal sewage system without the required permit and industrial wastewater treatment system. As a condition of his guilty plea, FARIA resigned from the company on March 7, 2014, and no longer has any role in its operations or management. On February 13, 2015, Judge Thompson sentenced Faria to three years of probation, a $30,000 fine, and 300 hours of community service.
According to court documents and statements made in court, the Clean Water Act requires that every company obtain a permit from the Connecticut Department of Energy and Environmental Protection (“CT DEEP”) before it can discharge industrial wastewater to the public sewage system, commonly known as the publicly owned treatment works (“POTW”). Companies are also required, among other things, to test and monitor their industrial wastewater monthly to ensure that chemical levels in the wastewater do not exceed federal and state limitations.
SHEFFIELD has a factory at 170 Broad Street in New London that manufactures a wide range of over-the-counter pharmaceutical creams, ointments and toothpastes. From approximately 1986 to July 2011, SHEFFIELD discharged industrial wastewater from its New London manufacturing operations to the New London POTW without a permit and in violation of Connecticut’s approved pretreatment program. The New London POTW discharges to the Thames River in southeastern Connecticut. During this entire time period, SHEFFIELD lacked a pretreatment system at its factory to treat its industrial wastewater prior to discharge, performed no regular monitoring of its discharges of industrial wastewater, and submitted no monthly monitoring reports to the CT DEEP.
After becoming the company’s president and chief executive officer in April 2003, Faria learned through his own employees that SHEFFIELD was discharging pollutants in its industrial wastewater without the required permit. Faria also learned that in order to obtain a permit from CT DEEP, the company would have to install, at significant expense, a wastewater pretreatment system that would pretreat its industrial wastewater prior to discharging it to the New London POTW. Although Faria’s own employees urged him to make the financial investment to bring the company into compliance, he chose not to do so. Faria continued this illegal course even when four environmental consulting firms, which the company had hired, advised him that the discharge of industrial wastewater to the public sewage treatment system, without a pretreatment system and CT DEEP permit, is illegal.
On April 20, 2011, the CT DEEP conducted an unannounced inspection of SHEFFIELD. After finding that the company had no wastewater discharge permits, the CT DEEP inspector issued a Notice of Violation and cited the company for discharging manufacturing and laboratory wastewater without a permit. On or about May 27, 2011, SHEFFIELD submitted a permit application to CT DEEP. In July 2011, the company installed a wastewater pretreatment system at its factory to pretreat the pollutants contained in its industrial wastewater prior to its discharge to the New London POTW.
Currently led by a new management team, SHEFFIELD has remained compliant with the Clean Water Act. The company’s current chief executive officer, Jeffrey Davis, is a former SHEFFIELD manager who personally urged Faria to bring the company into compliance with the Clean Water Act as early as 2005. The company has also established a formal procedure to protect whistleblowers who come forward.
“Prior leadership at Sheffield took short cuts to save money by discharging polluted industrial wastewater into the public sewage system for years without the requisite treatment and regulatory permit,” said U.S. Attorney Daly. With today’s disposition and the former chief executive’s felony conviction in 2014, we are confident that such short-sighted decisions are a thing of the past at Sheffield. Simply put, sound environmental stewardship is good business for all companies and their employees. Sheffield has agreed to pay $1,000,000, which includes a $150,000 fine and $850,000 to fund beneficial environmental projects in coastal Connecticut. We thank our partners at the EPA and Connecticut’s Department of Energy and Environmental Protection for their outstanding partnership in this important prosecution.”
“This agreement demonstrates EPA’s commitment to protecting Connecticut’s environment and ensuring that all companies commit to the resources needed to keep pollutants from our systems,” said EPA Special Agent in Charge Amon. “EPA’s Criminal Investigation Division will continue to work closely with the U.S. Attorney’s Office and CT DEEP to achieve this.”
“We take compliance seriously and it is important that Mr. Faria was held accountable for disregarding and defying environmental laws,” said Commissioner Klee. “This action sends a strong message that ignoring environmental laws – and causing pollution of and damage to this state’s natural resources – carries significant consequences.”
This matter was investigated by the U.S. Environmental Protection Agency and the Connecticut Department of Energy and Environmental Protection. The case was prosecuted by Assistant U.S. Attorney Hal Chen and Special Assistant U.S. Attorney Peter Kenyon.
Managing Partner of Bulk Mail Firm Admits Defrauding U.S. Postal Service of Nearly $750KRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Shelly Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, today announced that ROBERT KUSS, 54, of Cheshire, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court one count of mail fraud stemming from his role in a scheme to defraud the U.S. Postal Service of nearly $750,000.
According to court documents and statements made in court, KUSS is the managing partner of Creative Marketing Group, LLC (“CMG”), a mail service provider in the business of sending bulk mailings. CMG has a Permit Imprint bulk mailing permit (“PI permit”) that allows the company to print postage indicia directly onto an envelope rather that affix a postage stamp or a meter impression to each piece of mail (the printed postage indicia tend to be pink printings on the upper right hand corner of an envelope).
Generally, a PI permit holder has an account from which the USPS debits the appropriate postage charge for each bulk mailing. To utilize its PI permit, a mailer generally drops off its bulk mailing at the office that maintains its permit, known as a Business Mail Entry Unit (“BMEU”) – in this instance the Bristol (Conn.) Post Office. There, the mailing is examined and accepted by BMEU postal employees. The USPS then debits the mailer’s account the appropriate amount for postage.
To save money, a bulk mailer may also transport the bulk mailing itself to a destination USPS facility to obtain lower postage rates rather than simply deliver the bulk mailing to the appropriate BMEU. To do so, a mailer must bring both the bulk mailing and a form known as Postal Service Form 8125 (“PS 8125 Form”) to the BMEU for verification. Once verified, the BMEU personnel debit the mailer’s account and fill out the PS 8125 Form with information about the bulk mailing, including the mailer’s permit number, the total number of pieces of mail and the total mail weight. BMEU personnel also affix a USPS stamp to the form. The mailer then takes the bulk mailing and the PS 8125 Form to the destination USPS facility for delivery. A USPS employee at the destination facility reviews the bulk mailing and the form to ensure they match and for completeness before accepting the mailing and the PS 8125 Form.
Between approximately July 2014 and March 2016, KUSS brought bulk mailings to destination USPS facilities with fraudulent PS 8125 Forms. KUSS had filled out and stamped the forms to appear as though the bulk mailings had been brought to and verified by the BMEU in Bristol, and as though the USPS had appropriately debited his advanced deposit account. In fact, KUSS had not brought the bulk mailings to the BMEU, the BMEU had not verified the mailings, and the USPS had not debited his advanced deposit account.
KUSS delivered at least 125 bulk mailings to destination USPS facilities around the country pursuant to this scheme. As a result, he sent 3,260,183 pieces of mail without paying for postage, and the USPS lost $749,573.
The charge of mail fraud carries a maximum term of imprisonment of 20 years. KUSS is scheduled to be sentenced by U.S. District Judge Robert Chatigny on April 17, 2017.
This matter is being investigated by the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and John H. Durham.
Colorado Man Pleads Guilty to Enticement of MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NATHANIEL SMITH, 29, of Aurora, Colorado, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of enticement of a minor to engage in sexual activity.
According to court documents and statements made in court, in January 2016, SMITH used his cell phone and internet-based messaging and video chatting services, including Kik and Skype, to entice a 13-year-old female to engage in sexual activity.
SMITH has been detained since January 25, 2016, when he was arrested on related state charges in New London.
Judge Shea scheduled sentencing for April 7, 2017, at which time SMITH faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
This matter is being investigated by the Federal Bureau of Investigation, the New London Police Department and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
West Haven Woman Pleads Guilty to Fraud and Identity Theft ChargesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMILA WILLIAMS-STEVENSON, 36, of West Haven, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of bank fraud and one count of aggravated identity theft.
According to court documents and statements made in court, between 2012 and July 2016, WILLIAMS-STEVENSON and Lorena Coburn worked together to steal personal identifying information from victims and commit fraud using the stolen information. The sources of the personal identifying information included patients at Yale New Haven Hospital, where WILLIAMS-STEVENSON worked as a care companion.
As part of the scheme, WILLIAMS-STEVENSON and Coburn submitted to the U.S. Postal Service change of address applications for their victims so that the victims’ mail, including checks that were intended for the victims, would be diverted from the victims’ true addresses to addresses that were controlled by WILLIAMS-STEVENSON and Coburn. WILLIAMS-STEVENSON and Coburn also stole checks from residential and business mailboxes and then counterfeited the checks so that they were payable to their identity theft victims. They then opened bank accounts in the names of identity theft victims, deposited the stolen and counterfeit checks into those accounts, and then withdrew the funds from those accounts.
More than 20 individuals have been victimized through this scheme, resulting in an attempted loss of more than $150,000 to banks and victims.
WILLIAMS-STEVENSON and Coburn also obtained a life insurance policy in the amount of $75,000 in the name of an identity theft victim, and WILLIAMS-STEVENSON was named as the beneficiary on the policy. Forensic analysis of WILLIAMS-STEVENSON’s iPhone, which was seized at the time of her arrest, revealed a series of text messages between WILLIAMS-STEVENSON and Coburn discussing how they might be able to cause the death of this victim in order to collect on the life insurance policy.
WILLIAMS-STEVENSON was arrested on July 21, 2016. She is detained pending sentencing.
Coburn, 42, of West Haven, was arrested on July 27, 2016. She pleaded guilty to the same charges on November 30, 2016, and is released on a $100,000 bond.
The charge of bank fraud carries a maximum term of imprisonment of 30 years, and the charge of aggravated identity theft carries a mandatory consecutive term of imprisonment of two years. Sentencing dates have not been scheduled.
This matter is being investigated by the U.S. Postal Inspection Service, the Internal Revenue Service – Criminal Investigation Division, the Connecticut Financial Crimes Task Force and the West Haven, New Haven and Orange Police Departments. This case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala
U.S. Attorney Daly stated that the investigation is ongoing, and encouraged citizens who believe that they have been victimized by this scheme, or who have had a mailing address changed without their consent, to call the U.S. Postal Inspection Service at 203-782-7391.
East Windsor Woman Pleads Guilty to Committing Multiple Crimes after Sentencing for Prior OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALIYAH THERESA JULIATE DAVIS, also known as Theresa Juliate Sutherland, 36, of East Windsor, waived her right to indictment and pleaded guilty today in New Haven federal court to multiple offenses that she committed while awaiting incarceration after a prior federal conviction.
According to court documents and statements made in court, on December 17, 2014, DAVIS, who was then known as Theresa Sutherland, was sentenced in Hartford federal court to 51 months of imprisonment, followed by three years of supervised release, for engaging in a fraud and identity theft scheme at an insurance company where she was employed. As part of her sentence, DAVIS was ordered to pay total restitution of $400,000 to the victim insurance company and three previous employers that she defrauded.
Beginning in January 2015, DAVIS, through her attorney, made five separate motions to postpone her prison report date based on her claims of a diagnosis of terminal cancer and heart conditions. In association with her court motions, DAVIS submitted letters from various medical professionals detailing her claimed medical conditions. DAVIS created the letters and forged the medical professionals’ signatures. DAVIS’s prison report dates were continued based on these fraudulent submissions.
In March 2015, DAVIS changed her name from Theresa Juliate Sutherland to ALIYAH THERESA JULIATE DAVIS. DAVIS subsequently received a new Social Security number and Connecticut driver’s license under her new identity.
On April 19, 2016, DAVIS submitted an application for a U.S. passport at the U.S. Postal Service facility on Weston Street in Hartford. On the application where it states “Have you ever applied for or been issued a U.S. Passport Book or Passport Card?” DAVIS marked an “X” in the “No” box. In 2007, DAVIS applied for and received a U.S. passport when she was known as Theresa Juliate Sutherland.
At various times between December 2014 and September 2016, DAVIS was employed at a local insurance company and local hospitals. From May 28, 2016 to September 10, 2016, while she was employed at an insurance company and then a hospital under her new identity, DAVIS received $9,808 in unemployment compensation from the State of Connecticut under her previous identity.
DAVIS pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years; one count of knowingly making a false statement on a passport application, which carries a maximum term of imprisonment of 10 years; one count of making a false statement, which carries a maximum term of imprisonment of five years, and one count of aggravated identity theft, which carries a mandatory two-year term of imprisonment. She is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on March 17, 2017.
DAVIS has been detained since her arrest on September 17, 2016.
This matter is being investigated by the U.S. Department of State, Diplomatic Security Service, U.S. Department of Labor – Office of Inspector General, Office of the Chief State’s Attorney, Connecticut Department of Labor and East Windsor Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
CEO of Venture Capital Firm Who Misused Client Funds is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSEPH McANDREW, 75, of Pawcatuck, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 30 days of imprisonment, followed by six months of home confinement and three years of supervised release, for misusing client funds.
According to court documents and statements made in court, McANDREW was the Chief Executive Officer and Managing Partner of Wall Street Venture Capital Ltd. (“WSVC”), which offered lending and brokerage services to prospective clients who were seeking to raise money for business ventures. McANDREW required each client who retained WSVC’s services to pay upfront fees of approximately $30,000, which he falsely represented would be used solely for expenses incurred in raising money on the clients’ behalf. In truth, McANDREW used the upfront fees he received from WSVC’s clients for personal expenditures, including to purchase stocks and pay personal credit card charges.
In total, McANDREW stole $317,628 from clients of WSVC who believed their money would be used to secure financing on their behalf. None of these clients ever received financing through WSVC.
Judge Bolden ordered McANDREW to pay full restitution.
On April 5, 2016, McANDREW pleaded guilty to one count of wire fraud.
Judge Bolden sentenced McANDREW below the recommended sentencing guidelines range of 27 to 33 months of imprisonment due in significant part to McANDREW’s health condition.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Avi M. Perry.
Indictment Charges Former Cantor Fitzgerald RMBS Trader with Securities FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Goldsmith Romero, the Special Inspector General for the Troubled Asset Relief Program, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, Laura S. Wertheimer, the Inspector General for the Federal Housing Finance Agency, and Fred Gibson, the Acting Inspector General for the Federal Deposit Insurance Corp., today announced that a federal grand jury in New Haven has returned an indictment charging former Cantor Fitzgerald & Co. bond trader, DAVID DEMOS, 35, of Westport, with six counts of securities fraud.
The indictment was returned on December 7. DEMOS is scheduled to be arraigned today at 3:30 p.m. before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven.
According to the indictment, Residential Mortgage-Backed Securities (RMBS) are collections of mortgages and home equity loans, which are grouped together and sold as packages between and among banks, money managers, pension funds and others. Investors in RMBS receive payments on a monthly basis. Those payments are based on the extent to which homeowners, who had originally taken out the mortgages or loans, repaid their lenders. The payments to RMBS investors continue until the homeowners repay their mortgage debt, refinance or default. Unlike stocks that trade on the New York Stock Exchange or the NASDAQ, RMBS are not publicly traded on an exchange and pricing information is not publicly available. Instead, buyers and sellers of RMBS use broker-dealers, like Cantor Fitzgerald, to execute individually negotiated transactions.
DEMOS was a trader and managing director at Cantor Fitzgerald from November 2011 until his employment was terminated in February 2013. The indictment alleges that DEMOS defrauded customers by fraudulently inflating the purchase price at which Cantor Fitzgerald could buy a RMBS bond to induce their victim-customers to pay a higher price for the bond, and by fraudulently deflating the price at which Cantor Fitzgerald could sell a RMBS bond to induce their victim-customers to sell bonds at cheaper prices.
It is alleged that, as a result of this scheme, Cantor Fitzgerald and DEMOS profited illegally, and victim-customers sustained millions of dollars of losses.
The victims of this alleged scheme include asset managers and firms affiliated with or subsidiaries of recipients of funds from the U.S. Government’s Troubled Asset Relief Program (TARP).
If convicted of the charges in the indictment, DEMOS faces a maximum term of imprisonment of 20 years on each count.
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.
The case has been assigned to U.S. District Judge Alvin W. Thompson in Hartford.
This matter is being investigated by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Federal Deposit Insurance Corp—Office of Inspector General, the Federal Bureau of Investigation, and the Office of Inspector General—Federal Housing Finance Agency. The case is being prosecuted by Assistant U.S. Attorneys Heather Cherry and Jonathan Francis.
Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s Residential Mortgage-Backed Securities (RMBS) Working Group, a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis and in the federal government’s bailout. The RMBS Working Group brings together attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and state Attorneys General offices around the country.
For more information about the RMBS Working Group and the Financial Fraud Enforcement Task Force, which is chaired by Attorney General Loretta Lynch, visit www.stopfraud.gov.
West Hartford Man Sentenced to 45 Months in Prison for Distributing Crack, Heroin and FentanylRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EROS DIAZ, also known as “Red,” 21, of West Hartford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 45 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine, heroin and fentanyl. Judge Covello also ordered DIAZ to perform 100 hours of community service while on supervised release.
According to court documents and statements made in court, in the spring of 2015, the DEA’s Hartford Task Force received information that DIAZ was selling narcotics in the Hartford area. Between May 2015 and June 2016, an undercover agent conducted 17 controlled purchases of crack cocaine and heroin from DIAZ and his associates. Prior to each of the controlled purchases, the undercover agent arranged to purchase narcotics by calling or texting DIAZ. DIAZ then directed the agent to travel to different locations in Hartford to complete the transaction. DIAZ either personally conducted the hand-to-hand exchange of narcotics with the agent, or would send an associate to complete the transaction.
Subsequent laboratory testing of the narcotics that were purchased revealed that some of the bags of purported heroin also contained fentanyl and acetyl fentanyl, and, in some instances, contained fentanyl and acetyl fentanyl and no heroin at all.
At the time of the drug sales, DIAZ was released on a $750,000 bond after being arrested in May 2015 on first degree assault and other charges related to a shooting that occurred in March 2015. The charges are pending in state court.
DIAZ has been detained since his arrest on June 7, 2016. On September 16, 2016, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine base (“crack”), heroin, fentanyl and acetyl fentanyl.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Wethersfield and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Old Saybrook Resident Charged with Additional Tax CrimesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal grand jury in New Haven has returned a six-count superseding indictment charging DAVID ADAMS, 56, of Old Saybrook, with additional tax offenses.
On May 3, 2016, the grand jury returned an indictment charging ADAMS with one count of tax evasion and one count of filing a false tax return for the 2011 tax year. The superseding indictment, which was returned yesterday, charges ADAMS with filing a false tax return for the 2009 tax year, filing a false tax return and tax evasion for the 2011 tax year, filing a false tax return and tax evasion for the 2012 tax year, and attempting to interfere with the administration of the tax laws.
As alleged in the superseding indictment, in the early 1980s, and then continuing from 1996 onward, ADAMS was substantially delinquent in filing his tax returns and paying amounts owed to the IRS. Starting at least as early as 1998, ADAMS repeatedly engaged with IRS collections officers tasked with trying to get ADAMS into compliance with the tax laws. Although he was repeatedly advised by IRS collections officers about his obligations to pay estimated taxes, ADAMS continually failed to pay those taxes on time or in sufficient amounts.
The indictment further alleges that ADAMS sold an online floral business in 2002, which accounted for a significant portion of $6,269,960 in taxable income he claimed on his 2002 tax return. Although ADAMS represented to the IRS in August 2003 that he was enclosing payment of $1,250,000, no such payment was enclosed and ADAMS never made the payment.
It is further alleged that ADAMS engaged the services of a certified public accountant to prepare his personal tax returns beginning in approximately 1993, and then repeatedly failed to give the accountant complete, accurate information. For example, for the 2009 tax year, ADAMS told his accountant that he had made $550,000 in estimated tax payments when, in fact, ADAMS knew he had only paid $425,000. Similarly, in 2011, ADAMS told his accountant that he had made $220,000 in estimated tax payments, but knew that he had only made $100,000.
The indictment further alleges that, in June 2011, ADAMS sold his partnership interest in another online floral business and received $4,708,419.20 wired into his personal bank account as part of the net proceeds owed to him as a result of the sale. Although he knew that he owed substantial taxes on that amount, ADAMS engaged in a number of affirmative acts to conceal and attempt to conceal this income in order to evade the assessment of a tax including: (1) failing to tell his accountant about the $4,708,419.20 in income ADAMS received in 2011; (2) providing the accountant with false information about ADAMS’s estimated tax payments for the year, telling the accountant that he had paid $220,000 when in fact, ADAMS knew he had only paid $100,000 in estimated taxes for 2011; (3) causing the accountant to prepare his 2011 tax return with false and fraudulent information; and (4) representing to an IRS revenue officer who was responsible for collecting ADAMS’s delinquent tax payments and securing ADAMS’s overdue tax returns, that he had hoped to have funds to pay down his back tax liability (including tax liability associated with the 2002 sale), but that nothing had been “panning out.” ADAMS failed to disclose to the revenue officer that he had received $4,708,419.20 in cash less than three weeks earlier.
It is alleged that, in June 2012, ADAMS received an additional $1,320,609.59 into his personal bank account as net proceeds of the 2011 sale. Although he knew that he owed substantial taxes on that amount, ADAMS failed to disclose the income to his accountant, and failed to declare it on his tax return for that year.
As further alleged in the superseding indictment, ADAMS engaged in a more than 16-year effort to inhibit the IRS’s efforts to collect back taxes from him. Among other things, ADAMS bounced checks to the IRS; told IRS collections officers that payment had been sent when it had not; promised to pay delinquent tax liabilities in full and then delayed payment, made only partial payment, failed to pay at all, or paid off one liability while leaving another liability unpaid; claimed that he lacked funds to pay his delinquent tax but failed to disclose that he had access to enough cash to fully pay back his tax liabilities; filed false and fraudulent returns with the IRS; overstated the amounts of estimated taxes paid to the IRS, and failed to declare more than $6 million in income to the IRS.
The indictment charges ADAMS with two counts of tax evasion, three counts of making and subscribing a false tax return, and one count of attempting to interfere with the administration of the IRS laws. Each tax evasion offense carries a maximum term of imprisonment of five years, each count of filing a false tax return carries a maximum term of imprisonment three years, and the interference charge carries a maximum term of imprisonment of three years.
ADAMS was arrested on a federal criminal complaint on April 14, 2016, and is released on a $500,000 bond secured by real property.
As of May 2016, ADAMS owed approximately $4.6 million in back taxes, interest and penalties for tax years 2002, 2006, 2007, 2008, 2009, 2011, and 2012. Interest and penalties have continued to accrue since that time.
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 has been investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
New Milford Loan Shark Pleads GuiltyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMES BRODERICK III, 58, of New Milford, pleaded guilty today in New Haven federal court to a federal extortion charge.
According to court documents and statements made in court, in late December 2015 to early January 2016, BRODERICK lent an individual approximately $1,500 with an understanding that the individual was required to pay BRODERICK $1,500, plus an additional $500 in interest, within four days of the initial loan. When the individual failed to pay the loan within four days, BRODERICK asked Howard Hammer to assist him in collecting on the loan. Hammer then sent text messages to the victim that threatened harm to the victim if he failed to pay his debt. Hammer took screen shots of the threatening text messages and forwarded them to BRODERICK. BRODERICK and Hammer also discussed taking the victim’s car either as payment for the debt or as punishment for failure to pay the debt.
On January 25, 2016, the victim suffered permanent bodily injury in connection with this conduct.
BRODERICK also made several extortionate loans to a second victim. When the victim was unable to repay the usurious interest amounts, which were at least 10 percent of the principal per week, BRODERICK repeatedly threatened to use force to collect the debt. Over the course of three years, BRODERICK collected more than $20,000 in interest payments from this second victim.
BRODERICK pleaded guilty to one count of conspiracy to participate in the collection and attempted collection of an extension of credit by extortionate means, which carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.
BRODERICK is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on March 1, 2017.
BRODERICK and Hammer were arrested on May 27, 2016. BRODERICK is released on a $200,000 bond.
Hammer, of New Milford, pleaded guilty to the same charge on December 2, 2016. He awaits sentencing, and has been detained since his arrest.
This matter is being investigated by the FBI Violent Crime Task Force, New Milford Police Department and Connecticut State Police Western District Major Crime Squad. The case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
Ansonia Man Sentenced to 5 Years in Prison for Illegally Possessing Firearm, Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MARCOS BOYD, 26, of Ansonia, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by three years of supervised release, for being an armed drug dealer.
According to court documents and statements made in court, in January 2015, BOYD absconded from state parole supervision. On November 10, 2015, when members of the U.S. Marshals Service Violent Fugitive Task Force, Ansonia Police and Connecticut Department of Correction parole officers encountered BOYD at a residence on High Street in Ansonia, BOYD climbed out of his second floor bedroom holding a firearm. He then returned inside the house and barricaded himself in a bathroom. A six-year-old child was in the house at the time.
After BOYD surrendered, officers seized a loaded .45 caliber semi-automatic pistol. A search of BOYD’s bedroom also revealed 18.6 grams of heroin, drug packaging materials and $6,763 in cash.
On September 12, 2016, BOYD pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.
BOYD, who has been detained since his arrest, will begin serving his federal sentence after he completes his state sentence in June 2017.
BOYD’s criminal history includes four drug-related felony convictions
This case was prosecuted by Assistant U.S. Attorney Rahul Kale.
New Haven Man Sentenced to 6 Years in Prison for Role in Heroin Distribution RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANCISCO RODRIGUEZ, 50, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport, to 72 months of imprisonment, followed by four years of supervised release, for his role in a heroin distribution ring.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into the distribution of heroin in New Haven. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of heroin, revealed that Wilson Vasquez, also known as “Will” and “Pancho,” obtained bulk quantities of heroin, processed and packaged the drug with several co-conspirators, and then distributed the drug through a network of street-level distributors operating in the area of Ferry Street, Grand Avenue and Blatchley Avenue in New Haven’s Fair Haven neighborhood. RODRIGUEZ served as a lieutenant to Vasquez in the organization.
During the investigation, law enforcement seized approximately 500 grams of raw heroin, three handguns and five vehicles. In addition, bank accounts containing more than $300,000 have been frozen.
Seventeen individuals were charged as a result of this investigation. All 17 pleaded guilty.
RODRIGUEZ has been detained since his arrest on July 15, 2015. On September 12, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
Vasquez awaits sentencing.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Patrick Caruso.
Citizen of Cuba Sentenced to 7 Years in Prison for Eli Lilly Theft, Additional Multimillion Dollar BurglariesRead the Press Release
AMED VILLA, 51, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 84 months of imprisonment, followed by five years of supervised release, for his role in the theft of pharmaceuticals from an Eli Lilly Company warehouse and storage facility in Enfield, Conn., and similar warehouse burglaries in Illinois, Virginia, Florida and Kentucky.
According to court documents and statements made in court, in early 2010, Amaury Villa, Amed Villa, Yosmany Nunez and Alexander Marquez planned to steal pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield. The investigation revealed that, prior to the theft, Amaury Villa and Nunez traveled from the Miami area to Connecticut to gather information about the warehouse facility and the surrounding area. Shortly before the theft, Amed Villa and Rafael Lopez traveled to Flushing, N.Y., where they purchased tools needed to break into the warehouse facility, and then traveled to Connecticut.
In the evening of March 13, 2010, individuals involved in the theft dropped off a ladder in the rear parking lot of the warehouse facility and left. That same night, Marquez drove a tractor trailer to the facility. Thereafter, Amed Villa and Amaury Villa carried the ladder to the building, checked for security in the front area, climbed onto the roof, used the tools Amed Villa and Lopez had purchased to cut a hole in the facility roof, dropped down into the facility and disabled the alarm system. Amaury Villa, Amed Villa and Nunez then loaded more than 40 pallets of pharmaceuticals into the tractor trailer, which had been backed up to the loading dock of the warehouse.
The pallets of pharmaceuticals included thousands of boxes Zyprexa, Cymbalta, Prozac, Gemzar and other medicines, valued at approximately $60 million.
The individuals who participated in the theft split up in Connecticut. Marquez then drove the tractor trailer to Florida, where he subsequently reunited with Amaury Villa, Amed Villa and Nunez so the pharmaceuticals could be transferred from the tractor trailer into self-storage units in the Miami area.
On October 14, 2011, law enforcement authorities searched a storage facility in Florida and recovered pharmaceuticals that had been stolen from the Enfield warehouse.
Subsequent investigation revealed that Amed Villa and others also stole more than $13.3 million in pharmaceuticals from the GlaxoSmithKline warehouse in Colonial Heights, Virginia, in August 2009; more than $8 million in cigarettes and a cargo trailer from a warehouse in East Peoria, Illinois, in January 2010; approximately $7.8 million in cellular telephones and multimedia tablets from the Quality One Wireless warehouse in Orlando, Florida, in January 2011, and more than $1.5 million in cigarettes from the Coremark Cigarette Warehouse in Leitchfield, Kentucky, in March 2011.
During each of the thefts, Amed Villa and his co-conspirators gained entry into the warehouse through the roof, disabled the alarm system and loaded the stolen goods into tractor trailers. Amed Villa’s DNA was identified on items discarded during the thefts in Connecticut, Illinois, Florida and Virginia.
Amed Villa was charged with the additional thefts in the Eastern District of Virginia, Central District of Illinois, Middle District of Florida and Western District of Kentucky, respectively, and the cases were transferred to the District of Connecticut for further prosecution.
Amed Villa, a citizen of Cuba who last resided in Miami, has been detained since his arrest on May 3, 2012. He subsequently pleaded guilty to two counts of conspiracy to commit theft from an interstate shipment and five counts of theft from an interstate shipment.
Amaury Villa, Nunez, Marquez and Lopez also pleaded guilty to charges stemming from the Eli Lilly warehouse theft and have been sentenced.
The loss attributed to Amed Villa is approximately $90 million. The exact amount of restitution to be ordered will be determined after further submissions by the parties.
The investigation of the Connecticut warehouse theft has been led by the FBI in New Haven and the Enfield Police Department, the investigation of the Illinois theft has been led by ATF and the East Peoria Police Department, the investigation of the Virginia theft has been led by the FBI, the investigation of the Florida theft has been led by the FBI and the Orlando Police Department, and the investigation of the Kentucky theft has been led by ATF.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Anastasia E. King and Douglas P. Morabito, with the valuable assistance of members of the U.S. Attorney’s Offices for the Central District of Illinois, Eastern District of Virginia, Middle District of Florida and Western District of Kentucky.
New Milford Man Pleads Guilty to Federal Extortion ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HOWARD HAMMER, 45, of New Milford, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to a federal extortion charge.
According to court documents and statements made in court, in late December 2015 to early January 2016, a loan shark lent an individual approximately $1,500. The individual was required to pay the loan shark the $1,500, plus an additional $500 in interest, within four days of the initial loan. When the individual failed to pay the loan within four days, HAMMER, at the loan shark’s request, agreed to help the loan shark collect on the loan.
In pleading guilty, HAMMER admitted that he sent text messages to the victim that threatened harm to the victim if he failed to pay his debt. He then took screen shots of the threatening text messages and forwarded them to the loan shark. HAMMER and the loan shark also discussed taking the victim’s car either as payment for the debt or as punishment for failure to pay the debt.
On January 25, 2016, the victim suffered permanent bodily injury in connection with this conduct.
HAMMER pleaded guilty to one count of conspiracy to participate in the collection and attempted collection of an extension of credit by extortionate means, which carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.
Judge Arterton scheduled sentencing for February 24, 2017.
HAMMER has been detained since his arrest on May 27, 2016.
This matter is being investigated by the FBI Violent Crime Task Force, New Milford Police Department and Connecticut State Police Western District Major Crime Squad. This case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
Convicted Felon Caught Hunting on National Park Service Land is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MICHAEL A. PETRO, 44, of Watertown, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to approximately 11 months of imprisonment, time served, and two years of supervised release, for illegally possessing a firearm and ammunition.
According to court documents and statements made in court, on the morning of December 10, 2015, a law enforcement officer was patrolling part of the Appalachian Trail in Kent, Conn. Posted signs in the area state that the land is National Parks Service property and is closed to hunting. The officer observed PETRO in camouflage gear holding a Savage Arms/Stevens Model 311, 12 gauge shotgun, which was breached open and unloaded. After the officer asked PETRO where the shotgun shells were and PETRO denied having any, the officer and her canine located two 12 gauge shotgun shells under fallen leaves approximately 20 yards away from where PETRO was standing. A subsequent search of PETRO’s jacket revealed two additional shotgun shells.
PETRO’s criminal history includes a felony conviction for 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.
PETRO has been detained in state custody since December 15, 2015. He has multiple unrelated state charges pending.
On June 13, 2016, he pleaded guilty to one count of unlawful possession of a firearm and ammunition by a convicted felon.
Judge Bryant ordered that PETRO must perform 200 hours of community service during his term of supervised release.
This matter was investigated by the U.S. Fish and Wildlife Service and the Environmental Conservation Police of the Connecticut Department of Energy and Environmental Protection, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
Bridgeport Man Pleads Guilty to Heroin Distribution Charge Stemming from Overdose Death in TrumbullRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEVAUGHN WATSON, 23, of Bridgeport, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of possession with intent to distribute, and distribution of, heroin. This prosecution is part of an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on August 18, 2016, Trumbull Police and emergency medical personnel responded to a residence in Trumbull and found an unresponsive 25-year-old female on the floor of a bedroom. The victim was pronounced deceased shortly thereafter. Investigators searched the victim’s pocketbook and found several empty wax folds and some wax folds that contained suspected heroin. Analysis of text messages contained on the victim’s cellphone revealed that the victim had ordered heroin from WATSON several times over the course of approximately two months prior to the victim’s death.
WATSON has been detained since his arrest on September 7, 2016.
The charge of possession with intent to distribute, and distribution of heroin, carries a maximum term of imprisonment of 20 years. WATSON is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on February 23, 2017.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport Resident Office, the DEA’s New Haven Tactical Diversion Squad and the Trumbull and Monroe Police Departments, with the assistance of the Bridgeport Police Department.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Milford Psychiatrist Pleads Guilty to Illegal Drug Distribution and Health Care Fraud OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LJUDMIL KLJUSEV, M.D., 52, of Fairfield, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to distributing narcotics outside of the scope of professional practice, and health care fraud.
According to court documents and statements made in court, KLJUSEV, who operated a psychiatry practice in Milford, was a high-volume prescriber of Adderall and Xanax to patients, many of whom paid for office visits and prescriptions in cash.
Adderall, which is classified as a Schedule II drug by the DEA, is the brand name for a drug containing a combination of amphetamine and dextroamphetamine, both of which are central nervous system stimulants. This combination of drugs is used to treat narcolepsy and attention deficit hyperactivity disorder (“ADHD”). Xanax, which is classified as a Schedule IV drug by the DEA, is a brand name for a drug containing Alprazolam, a benzodiazepine drug. Alprazolam is commonly used to treat anxiety disorders or panic disorders.
The investigation, which included the use of confidential witnesses and an undercover officer posing as patients, revealed that KLJUSEV prescribed the drugs without a full medical examination of the patient, provided prescriptions without confirming conditions that would medically require treatment using these drugs and dispensed prescriptions in exchange for cash to patients who display substance abuse and addiction behaviors. KLJUSEV also directed non-physician employees to write prescriptions signed by KLJUSEV when he was out of the country.
In 2014 and 2015, KLJUSEV improperly billed private health insurers approximately $76,983 for medical services rendered when he was out of the country.
“This doctor sold controlled substances out of his office for cash, like a common drug dealer,” said U.S. Attorney Daly. “We are finding with increasing frequency that the types of pills he distributed are contributing to drug overdose deaths. They are incredibly dangerous if taken inappropriately and particularly toxic if combined with an opioid. We in law enforcement are committed to prosecuting medical professionals who recklessly and illegally put these and other prescription pills on the street. I thank our partners in this ongoing battle: The DEA and talented members of the Tactical Diversion Squad, as well as the Milford Police Department.”
“The DEA is committed to enforcing the Controlled Substance Act (CSA) by ensuring that all registrants abide by DEA’s prescribing regulations,” said DEA Special Agent in Charge Michael J. Ferguson. “Failure to do so increases the potential for diversion and jeopardizes the public health and safety. DEA pledges to work with our law enforcement and regulatory partners to ensure that these rules and regulations are followed.”
KLJUSEV has been detained since his arrest on November 12, 2015.
KLJUZEV pleaded guilty to one count of conspiracy to possess with intent to distribute narcotics, which carries a maximum term of imprisonment of 20 years, and one count of health care fraud, which carries a maximum term of imprisonment of 10 years.
In a binding plea agreement, if accepted by the court, the parties have agreed that a sentence between 26 and 77 months of imprisonment is appropriate in this case. KLJUSEV also has agreed to the forfeiture of property located at 227 Naugatuck Avenue in Milford, where his practice was based, as well as $173,095.20 in cash that was seized from his office on the day of his arrest. He also has agreed to forfeit an additional $117,431.13 contained in his business checking account, and to pay restitution in the amount of $76,983.
Judge Thompson scheduled sentencing for February 22, 2017.
This investigation has been conducted by the DEA’s New Haven Tactical Diversion Squad, Federal Bureau of Investigation and Milford Police Department. The DEA Tactical Diversion Squad includes officers from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments. This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Avi Perry.
Hartford Man Sentenced to More Than 6 Years in Federal Prison for Gun and Heroin OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROMAN PANTOJAS, 28, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 74 months of imprisonment, followed by five years of supervised release, for gun and drug offenses.
According to court documents and statements made in court, on May 23, 2014, the ATF, DEA and Hartford Police executed a federal search warrant at PANTOJAS’s Hartford residence and seized approximately 700 baggies of heroin, two loaded handguns and approximately $2,400 in cash. The investigation revealed that PANTOJAS, a convicted felon who is not permitted to purchase or possess firearms lawfully, had received firearms from his heroin customers.
One of PANTOJAS’s drug customers, Justin Ashline, admitted to law enforcement that he stole a firearm from his employer and sold it to PANTOJAS in exchange for approximately 20 bags of heroin and between $70 and $100 in cash.
On July 28, 2014, PANTOJAS pleaded guilty to one count of possession of a firearm by a previously convicted felon and one count of possession with intent to distribute heroin.
Ashline also pleaded guilty and is currently incarcerated.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Connecticut State Police and Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Robert M. Spector.
Hamden Man Sentenced to Prison for Distributing Oxycodone Involved in Weston OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TAHIR FARID, 22, of Hamden, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to six months of imprisonment, followed by three years of supervised release, for distributing oxycodone involved in an overdose earlier this year.
According to court documents and statements made in court, on January 3, 2016, a 20-year-old male purchased 30 oxycodone pills from FARID in exchange for $900. He then consumed some of those pills, as well as other substances, including Xanax. On January 5, 2016, the 20-year-old male was found unresponsive at a friend’s residence in Weston. He remains unresponsive, has no brain activity and is currently receiving care in a nursing home.
The investigation revealed that, prior to the victim’s overdose, Ryan Looney, also of Hamden, supplied FARID with oxycodone pills. FARID then distributed the pills to the victim.
FARID was arrested on February 22, 2016. On April 26, he pleaded guilty to one count of possession with intent to distribute, and distribution of, oxycodone.
Looney pleaded guilty to the same charge and is scheduled to be sentenced on December 6.
Judge Chatigny ordered FARID, during his three-year term of supervised release, to perform 120 hours of community service, and requested that the community service be directed at educating school-aged children about the dangers of using opioids.
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.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, U.S. Marshals Service, Weston Police Department and Monroe Police Department. The Tactical Diversion Squad includes members 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 Robert M. Spector.
New Haven Man Sentenced to 87 Months for Distributing Fentanyl-Laced Cocaine Involved in Spate of OverdosesRead 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 FRANK PINA, 57, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 87 months of imprisonment, followed by four years of supervised release, for distributing fentanyl-laced cocaine that led to three overdose deaths in New Haven in June.
According to court documents and statements made in court, on June 23, 2016, 17 individuals in New Haven overdosed after consuming narcotics. Three of the victims died. An investigation conducted by the DEA and New Haven Police Department revealed that many or all of the victims believed the substance they were consuming was cocaine. However, DEA laboratory testing indicated the cocaine was laced with fentanyl, a powerful opioid that can be at least 50 times more powerful than heroin.
The investigation revealed that PINA supplied drugs through various middlemen to several of the individuals who overdosed, including the three who died, on June 23, 2016. The investigation further revealed that the day before the overdoses occurred, PINA was discharged from the hospital after having overdosed on the same drugs that he subsequently distributed.
“This defendant sold cocaine laced with fentanyl creating a lethal cocktail that tragically stole three lives,” said U.S. Attorney Daly. “He himself spent three days in the hospital having overdosed on the same toxic mixture. His crime is all the more shameful as he was fully aware of the acute danger of the cocaine he was peddling. His actions reflect a callous disregard for human life and were motivated solely by profit. I commend the DEA Task Force, the New Haven Police and all the emergency medical personnel who responded on that terrible day in June. Their swift actions saved lives that day and their ongoing investigative work during this opioid epidemic continues to save lives.”
“Anytime there is a loss of life involving a drug overdose it is a tragic event; but even more so in this case given the number of victims in less than one day,” said Special Agent in Charge Ferguson. “Those suffering from the disease of fentanyl and heroin addiction need access to treatment and recovery. But, those responsible for distributing these lethal drugs to the citizens of New Haven need to be held accountable for their actions. In response to the ongoing opioid epidemic, DEA and its local, state and federal partners are committed to bringing to justice those that distribute this poison.”
PINA has been detained since his arrest on June 27. On August 4, 2016, he pleaded guilty to one count of possession with intent to distribute, and distribution of, controlled substances.
PINA’s criminal history includes multiple state felony convictions, and a federal felony drug conviction in 2004.
This investigation is being conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the New Haven Police Department. The Tactical Diversion Squad includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
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.
The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Naugatuck Man Sentenced to Prison for Stealing $120K from ClientsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHRISTOPHER SCULL, 37, of Naugatuck, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release.
According to court documents and statements made in court, from approximately June 2011 to January 2014, SCULL, while employed as an insurance agent with Bankers Life & Casualty Company, stole nearly $120,000 from seven clients. Most of the money was stolen from two vulnerable victims.
As part of the scheme, SCULL induced one victim to make withdrawals from her annuity and give the money to SCULL by falsely representing that the victim owed certain fees in connection with the account. SCULL caused the victim to submit an annuity withdrawal form and, after the victim received a check in the mail from Bankers Life, SCULL directed the victim to deposit the money into her account and write SCULL a personal check. SCULL then used the money for his own benefit.
On December 16, 2015, SCULL pleaded guilty to two counts of mail fraud.
Chief Judge Hall ordered SCULL to pay restitution in the amount of $119,965.38.
This matter was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Susan L. Wines.
Bridgeport Man Sentenced to More Than 10 Years in Federal Prison for Armed Robbery SpreeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DERRICK GILLIAM, 30, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in Bridgeport to 121 months of imprisonment, followed by three years of supervised release, for participating in an armed robbery spree in 2014.
According to court documents and statements made in court, on April 26, 2014, GILLIAM, Lancelot Supersad and others committed an armed robbery of the CVS Pharmacy on Grasmere Avenue in Fairfield, stealing approximately $2,376. On May 3, 2014, GILLIAM, Supersad and others attempted an armed robbery of the Mobil Gas station on Noble Avenue in Bridgeport. On May 10, 2014, GILLIAM, Supersad and others committed an armed robbery of a Webster Bank branch on Main Street in Bridgeport, stealing approximately $4,170. On June 1, 2014, GILLIAM, Supersad and others committed an armed robbery of a Pizza Hut on Boston Avenue in Bridgeport, stealing approximately $250. On June 26, 2014, GILLIAM, Supersad, Anthony Santiago and others committed an armed robbery of the Residence Inn on Bridgeport Avenue in Shelton, stealing approximately $200. On July 2, 2014, GILLIAM, Supersad, Santiago and others attempted an armed robbery of the Sikorsky Financial Credit Union on Oronoque Lane in Stratford. Also on July 2, 2014, GILLIAM, Supersad, Santiago and others committed an armed robbery of the TD Bank located on Post Road East in Westport.
GILLIAM brandished and pointed what appeared to be a handgun at employees during each of the seven robberies.
Chief Judge Hall ordered GILLIAM to pay $12,100 in restitution.
GILLIAM has been detained since his arrest on July 3, 2014. On July 28, 2016, he pleaded guilty to one count of conspiracy to affect commerce by robbery.
Supersad and Santiago pleaded guilty to the same charge and await sentencing.
This investigation was conducted by the Federal Bureau of Investigation and the Westport, Shelton, Fairfield, Stratford and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Avi M. Perry.
Waterbury Grocery Store Worker Pleads Guilty to Illegal Use of Food Stamp BenefitsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAUL CARLOS MONARCA-GONZALEZ, 40, of Waterbury, waived his right to indictment and pleaded guilty today in Hartford federal court to one count of unlawful use of food stamp benefits and one count of conspiracy to commit food stamp fraud.
The federal Supplemental Nutrition and Assistance Program (“SNAP”) is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
According to court documents, MONARCA worked at WB Trade Fair Grocery, located at 43 Willow Street in Waterbury. From November 2014 until June 2016, MONARCA and others illegally allowed customers to redeem their food stamp benefits for cash and other ineligible items.
Given the stock of eligible food items at the store, the number of registers and the customer amenities, it is estimated that WB Trade Fair Grocery could lawfully redeem at most between $120,000 to $240,000 per year in food stamp benefits. However, during this approximately 18-month period, food stamp redemptions at the store totaled approximately $3.2 million.
MONARCA has been detained since his arrest on August 18, 2016. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on March 1, 2017, at which time he faces a maximum term of imprisonment of five years, a fine of up to $250,000 fine and restitution.
This matter is being investigated by the U.S. Department of Agriculture, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorneys Anastasia King and Neeraj Patel.