District of Connecticut
Press releases recorded for this federal judicial district.
Statewide Initiative Targets Distributors of Heroin and Opioids That Cause Overdose DeathsRead the Press Release
United States Attorney Deirdre M. Daly, Deputy Chief State’s Attorney Leonard C. Boyle and Special Agent in Charge Michael J. Ferguson of the Drug Enforcement Administration today announced a statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
Beginning in January 2016, the DEA’s New Haven Tactical Diversion Squad, state and local police, and a team of prosecutors from the U.S. Attorney’s Office, have investigated approximately 20 heroin and opioid overdoses that have occurred in Connecticut. Most of the overdoses have resulted in death. Currently, there are ongoing investigations of overdoses that occurred in Danbury, Derby, Enfield, Greenwich, Middletown, Newtown, New Haven, Norwalk, Norwich, Shelton, Stamford, Vernon, Weston, Willimantic and Woodbridge.
As part of this initiative, the U.S. Attorney’s Office and DEA have developed a protocol for police that respond to heroin and opioid overdose deaths. The protocol calls for local law enforcement to perform time-sensitive investigative techniques and preserve all evidence at the scene of an overdose death. Police also are asked to contact DEA at the early stages of an investigation, and ensure that an autopsy of the decedent is performed. The DEA and local police will then jointly investigate to determine the events leading up to the death, the source of the drug involved, and the composition of the drug. Individuals responsible for distributing drugs causing overdose deaths will be prosecuted.
“We are combatting a tragic opioid epidemic that is plaguing Connecticut and much of the country,” said U.S. Attorney Daly. “Deaths caused by heroin or prescription opioids have devastated hundreds of families from every corner of our state. This statewide initiative will enable law enforcement to quickly determine if a highly toxic drug is on the street and take steps to identify the source of the drug in order to keep it out of the hands of vulnerable users. The police protocol will allow investigators to preserve evidence critical to identifying and convicting those responsible for distributing these drugs. Our aim is to prevent additional deaths and to hold accountable those who distribute these deadly drugs. We thank the DEA for their invaluable leadership in this initiative and appreciate the significant support provided by Connecticut’s local police departments, the Connecticut State Police and the State’s Attorneys.”
“We hope that the use of this protocol will enable law enforcement to effectively track the source of the most dangerous brands of heroin being distributed in Connecticut,” said Deputy Chief State’s Attorney Boyle.
“While those suffering from the disease of heroin addiction need access to treatment and recovery, those responsible for distributing these lethal drugs need to be held responsible for their actions,” said DEA Special Agent in Charge Michael J. Ferguson. “DEA and its federal, state and local partners are committed to bringing to justice those that distribute this poison.”
To date, this initiative has resulted in federal charges against
- Reginald Miles, Jr., 25, of Waterbury, Wade Pettingill, 23, of Middlebury, and Kevin Foster, 23, of Middlebury, in connection with the heroin overdose death of a 22-year-old man in Woodbridge on November 19, 2015;
- Tahir Farid, 21, and Ryan Looney, 19, both of Hamden, in connection with the oxycodone overdose of a 22-year-old man in Weston on January 5, 2016;
- Bradley Commerford, 20, of Derby, in connection with the heroin overdose death of a 23-year-old man in Derby on February 17, 2016, and two non-fatal heroin overdoses of an 18-year-old man and a 22-year-old man in Shelton on February 16, 2016;
- Ryan Budd, 25, of Bethel, in connection with a non-fatal heroin overdose of a 25-year-old female in Danbury on March 1, 2016.
As part of this statewide initiative, on April 8, 2016, the DEA and U.S. Attorney’s Office received funding from two sources for heroin and opioid overdose investigations. First, the DEA received Department of Justice Organized Crime Drug Enforcement Task Force (OCDETF) funding in an investigation focused on large-scale sources of heroin being distributed in Connecticut. Second, in support of the statewide heroin initiative, the DEA received funding under the National Heroin Strategic Initiative. This funding is being used to pay overtime, purchase equipment, fund training, and assist in the investigation of seized cellular telephones.
U.S. Attorney Daly noted that the U.S. Attorney’s Office also continues to work with the DEA, FBI, HSI and other federal, state and local law enforcement to target high volume heroin and oxycodone trafficking organizations. On March 2, 2016, a federal grand jury in Hartford returned an indictment charging a Hartford grocery store owner and two associates with trafficking heroin. During the investigation, investigators seized more than 20 kilograms of heroin destined for Connecticut and approximately $900,000 in cash.
In another ongoing investigation, 11 New Haven-area residents were recently charged with conspiring to steal the personal identification information of over 50 doctors and medical professionals in order to create fraudulent prescriptions to obtain and distribute more than 100,000 oxycodone pills.
In addition, the U.S. Attorney’s Office continues to prioritize the prosecution of medical professionals who prescribe prescription narcotics outside the scope of accepted medical practice. On November 4, 2015, John Katsetos, a doctor who practiced medicine for more than 20 years in Stamford and Milford was sentenced to 84 months in prison. The investigation revealed that from November 2011 to October 2013, Dr. Katsetos authorized more than two million dosage units of Schedule II through IV controlled substances to more than 2000 patients. His conduct created opioid addictions in dozens of patients, led to the overdose death of a New York woman, and supplied individuals with a vast quantity of prescription pills that they illegally distributed to others.
“While policy makers and mental health officials, with our full support, work to address issues aimed at lessening the demand for illegal opioids, we in law enforcement will continue to marshal resources to address the supply side of the equation,” said U.S. Attorney Daly. “We will tirelessly investigate and disrupt the activities of heroin traffickers and prescription pill distributors who put profit above public health and safety.”
U.S. Attorney Daly stressed that charges are only allegations and not evidence of guilt. Each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The DEA’s New Haven Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments.
- Reginald Miles, Jr., 25, of Waterbury, Wade Pettingill, 23, of Middlebury, and Kevin Foster, 23, of Middlebury, in connection with the heroin overdose death of a 22-year-old man in Woodbridge on November 19, 2015;
Hamden Man Sentenced to 5 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHRISTOPHER DUNCAN, also known as “Woozer,” 31, of Hamden, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by five years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on November 20, 2014, law enforcement officers made a controlled purchase of PCP from DUNCAN in New Haven. After the purchase, investigators followed the car DUNCAN was driving to a store on Kimberly Avenue in New Haven and observed DUNCAN entering the store. Investigators then entered the store and placed DUNCAN under arrest. A subsequent court-authorized search of DUNCAN’s vehicle revealed a Ruger nine millimeter handgun with a large capacity clip, which was located on the floor in front of the driver’s seat.
DUNCAN was originally arrested on state drug and firearm offenses. On January 29, 2015, he was charged federally and has been detained since that time. On January 13, 2016, he pleaded guilty to one count of carrying of a firearm in furtherance of a drug trafficking crime.
This matter was investigated by Federal Bureau of Investigation, the New Haven Police Department and the Milford Police Department. The case was prosecuted by Assistant U.S. Attorney Peter D. Markle.
Former Insurance Agency Owner Sentenced to More Than 6 Years in Federal Prison for $2 Million Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EARL O’GARRO, JR., 33, formerly of Marlborough, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 78 months of imprisonment, followed by three years of supervised release, for defrauding a specialty lender, insurance carriers and the State of Connecticut.
On December 14, 2015, a jury found O’GARRO guilty of two counts of wire fraud and one count of mail fraud.
According to the evidence at trial, O’GARRO was the President, Chief Executive Officer and an owner of Hartford-based Hybrid Insurance Agency, LLC (“Hybrid”), a wholesale insurance brokerage specializing in placing excess and surplus line insurance products.
Beginning in approximately April 2013, O’GARRO defrauded Capital Premium Financing, Inc., a specialty lender that provides premium financing on behalf of insured entities. O’GARRO falsely represented to Capital Premium Financing that an insurance carrier, AmTrust E&S Insurance Services, Inc. (“AmTrust”), had issued insurance policies for four companies, that these companies were using Capital Premium Financing’s services to finance their premium payments, and that Hybrid had brokered the contracts and was entitled to collect the premiums on behalf of AmTrust. In fact, O’GARRO knew that AmTrust had not issued policies for any of these four companies. Relying on O’GARRO’s misrepresentations, Capital Premium Financing subsequently released $849,282.55 in premium payments to Hybrid on the purported insurance policies. O’GARRO converted the funds to his own use.
In July 2013, as part of an effort to prolong the scheme, O’GARRO created an email address and Internet domain name similar to that of AmTrust in order to assume a false identity as an AmTrust underwriter. Posing as an AmTrust underwriter, O’GARRO sent an email to Capital Premium Financing to falsely verify the existence of the four policies.
Hybrid also served as the wholesale broker for certain insurance policies held by the City of Hartford. In July 2013, O’GARRO directed the city to transfer $868,244 in premiums to Hybrid. After the City of Hartford wired Hybrid the funds, O’GARRO intentionally withheld $669,997 in premium payments from the appropriate excess insurance carries, Starr Indemnity & Liability Company, Inc. and National Casualty Company. Instead, O’GARRO converted the money to his own use. In fact, approximately 17 minutes after receiving the funds, O’GARRO wired $300,000 to Capitol Premium Financing as partial repayment for the monies he had been caught stealing from them. O’GARRO then falsely advised the city that the premium payments had been remitted to the insurers.
The evidence at trial also established that, in approximately July 2013, O’GARRO, on behalf of Hybrid, submitted a false application to the State of Connecticut Department of Economic and Community Development (“DECD”) for a $500,000 loan. In his application, O’GARRO provided false information concerning his and Hybrid’s financial condition. Based in part on these false statements, DECD approved Hybrid’s loan application and mailed a $250,000 check to Hybrid. O’GARRO used a substantial portion of these loan funds to make a payment on a million dollar condominium he had purchased in the Dominican Republic and to pay tuition at his children’s private school.
Through this scheme, O’GARRO stole more than $2.1 million from his victims and used the stolen funds on personal expenses and to prop up his failing business.
Judge Thompson ordered O’GARRO to pay restitution in the amount of $1,307,326.09, which reflects a partial repayment that O’GARRO made to one of his victims.
O’GARRO has been released on a $500,000 bond since his arrest on November 21, 2014. He was ordered to report to prison on May 13, 2016.
This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Avi M. Perry and Michael J. Gustafson.
Wallingford Man Charged with Operating Ponzi SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven returned an 18-count indictment yesterday charging JOSEPH A. CASTELLANO, 58, of Wallingford, with fraud and money laundering offenses stemming from an investment scheme that defrauded individuals of more than $1.5 million.
As alleged in the indictment, CASTELLANO operated various entities out of offices in Wallingford, including Casbo Investments, Wallingford Investors Limited Partnership, AIM Realty Investors, and Castellano & Co., LLC. As a Certified Public Accountant and owner of Castellano & Co., LLC, CASTELLANO prepared federal and state tax returns for individuals and local businesses. In connection with his tax preparation business, CASTELLANO established a base of clients to which he offered financial services and investment opportunities in addition to preparing their taxes.
The indictment alleges that, beginning in approximately July 2007, CASTELLANO falsely represented to victim-investors that he had clients who were in need of capital to fund businesses or real estate development projects, but were unable to secure funding from traditional sources such as financial institutions. CASTELLANO told victim-investors that he would obtain for them a consistent rate of return of between approximately six percent and eight percent annually on their money by taking their money and placing it with, or loaning it to, one or more of his other clients. CASTELLANO, through Casbo Investments, prepared and executed official-looking documents and investment contracts termed “Demand Notes,” which contained a promise to return the principal amount, with interest, at any time.
In fact, there were no actual investments or investment opportunities, and the money was not invested with or loaned to other clients of CASTELLANO. CASTELLANO diverted the funds for his own use and benefit, including making payments to other victim-investors that were falsely represented to be “interest” payments. CASTELLANO also made false statements to certain victim-investors to explain various delays in the purported interest payments.
Through this scheme, it is alleged that CASTELLANO defrauded more than 10 victim-investors of more than $1.5 million.
CASTELLANO was arrested yesterday and detained. He appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $250,000 bond.
The indictment charges CASTELLANO with 10 counts of wire fraud, one count of mail fraud and four counts of securities fraud, offenses that carry a maximum term of imprisonment of 20 years on each count. The indictment also charges CASTELLANO with three counts of money laundering, an offense that carries a maximum term of imprisonment of 10 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.
This matter is being investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorneys Michael McGarry and John Pierpont.
New Haven Man Sentenced to More Than 7 Years in Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAJOUN JULIOUS, also known as “Snuggles,” 23, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 87 months of imprisonment, followed by three years of supervised release, for .
According to court documents and statements made in court, in the early morning hours of September 1, 2015, an investigation of an armed robbery of three male victims in the vicinity of 824 Elm Street led New Haven Police to JULIOUS, who was sitting in a parked car on Morse Street. After JULIOUS was ordered out of the car and frisked for weapons, officers searched the car and found a loaded Smith and Wesson .38 Special and a loaded Davis Industries model P380, .380 caliber semi-automatic pistol. Officers also found three iPhones underneath the car and two iPhones in nearby bushes. One of the iPhones was identified as stolen during the armed robbery. In an interview, JULIOUS admitted that the .380 caliber pistol was his.
JULIOUS, a member of the Reade Street, or “R2,” group, has a violent criminal history that includes felony convictions for first degree assault, intimidating a witness, and carrying a dangerous weapon. In 2009, JULIOUS shot a victim twice at close range. In 2010, JULIOUS was found with a firearm shortly after a group of males shot a victim who was riding his bike.
JULIOUS has been detained since September 1, 2015. On December 3, 2015, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Woman Involved in Sex Trafficking of Minors Conspiracy Sentenced to 5 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that KAYLA WALTERS, 24, of New York, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by six years of supervised release, for conspiring to commit sex trafficking of minors.
According to court documents and statements made in court, in September 2012, Edward Thomas, also known as “Fire,” a New York-based pimp, answered an internet prostitution advertisement for a 17-year-old girl (“MV1”) in Oregon. Thomas, with the assistance of WALTERS, recruited and enticed MV1 to travel to New York to work for Thomas. MV1 agreed and traveled to New York with a second girl (“MV2”), who was 16 at the time, using bus tickets purchased by Thomas. Thomas discussed with both MV1 and MV2 that they would be prostituting for him in New York and Connecticut.
After MV1 and MV2 arrived in New York, Thomas drove the two minor girls to a hotel in Milford, Connecticut, where they met WALTERS and posted prostitution advertisements. In Milford, MV1 and MV2 saw customers for commercial sex acts at the direction of Thomas and WALTERS. MV2 escaped from a hotel room window after several hours, but MV1 continued to work for Thomas and WALTERS for about a month, turning over all of the money she earned in prostitution to Thomas and WALTERS. When MV1 attempted to leave, Thomas forcibly restrained her. Ultimately, MV1 was recovered for the first time by the FBI and local police in Milford on November 8, 2012. Law enforcement seized nearly $4,000 in cash from Thomas during this recover, along with several computers and cellular phones.
Thomas recruited MV1 a second time in July 2013 and again paid for her travel from Oregon to the East Coast. After Thomas sent WALTERS and MV1 to Connecticut to make money for him, the FBI and local police again recovered MV1 from a hotel in Milford.
Thomas and WALTERS have been detained since their arrests on February 28, 2014.
On November 10, 2014, WALTERS pleaded guilty to one count of conspiracy to commit sex trafficking of a minor.
On January 26, 2015, a jury found Thomas guilty of one count of conspiracy to commit sex trafficking of a minor and two counts of sex trafficking of a minor. On November 2, 2015, he was sentenced to 210 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The Stratford and Milford Police Departments assisted the investigation.
The case was prosecuted by Assistant U.S. Attorneys David E. Novick and Sarala V. Nagala.
Indictment Charges Ledyard Man with Federal Narcotics OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging DAMIEN BRYANT, 41, of Ledyard, with one count of possession with intent to distribute cocaine base (“crack”) and cocaine. The indictment was returned on March 29, 2016.
According to allegations contained in a previously-filed criminal complaint, in February 2016, the Stonington Police Department received information that BRYANT was distributing crack cocaine. On March 9, 2016, members of the Regional Community Enhancement Task Force and the Ledyard Police Department executed a state search and seizure warrant at BRYANT’s residence and seized crack cocaine, cocaine, marijuana, narcotics paraphernalia and more than $14,000 in cash. BRYANT was arrested at that time.
On March 5, 2010, BRYANT was sentenced in Bridgeport federal court to 42 months of imprisonment for distributing crack cocaine and violating the conditions of his supervised release from a prior federal conviction in the District of Rhode Island. He is currently serving a 10-year-term of federal supervised release.
BRYANT appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford and entered pleas of not guilty to the charge in the indictment, and to violating the conditions of his supervised release.
If convicted, BROWN faces a maximum term of imprisonment of 20 years for the narcotics offense, and an additional term of imprisonment of up to 80 months for violating his supervised release.
BRYANT has been detained since his arrest.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives, the Regional Community Enhancement Task Force, and the Ledyard, Stonington and Groton Town Police Departments. The case is being prosecuted by Assistant U.S. Attorney John H. Durham.
Hartford Man Sentenced to More Than 6 Years in Federal Prison for Trafficking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that YOANNI SUAREZ, also known as “Cuba,” 39, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 78 months of imprisonment, followed by four years of supervised release, for trafficking heroin.
According to court documents and statements made in court, in August 2015, the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force received information that SUAREZ was selling large quantities of raw heroin in Hartford. SUAREZ was arrested on September 17, 2015, after investigators coordinated a controlled purchase of heroin from SUAREZ. SUAREZ possessed 278 grams of heroin at the time of his arrest. A subsequent search of his Stafford Street residence revealed an additional 986 grams of heroin.
The quantity of heroin possessed by SUAREZ would create approximately 50,000 individual bags when broken down for street sale. SUAREZ admitted to law enforcement that he obtained heroin at a price of approximately $60,000 per kilogram, which he received from his supplier on credit.
SUAREZ has been detained since his arrest. On January 7, 2016, he pleaded guilty to one count of possession with intent to distribute 100 grams or more of heroin.
The FBI’s Northern Connecticut Violent Crimes Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case was prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and Gabriel J. Vidoni.
Coventry Man Admits Role in Steroid Distribution ConspiracyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN KOCH, 49, of Coventry, pleaded guilty today before U.S. District Judge Robert N. Chatigny in Hartford to one count of conspiracy to distribute anabolic steroids.
According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that Steven Santucci, a former Newtown Police sergeant, and others were receiving shipments of steroid ingredients from China and manufacturing and distributing wholesale quantities of steroids. The investigation also revealed that certain members of the conspiracy were distributing prescription pills, including oxycodone, as well as cocaine.
In pleading guilty, KOCH admitted that he conspired with Santucci and others to distribute anabolic steroids.
During the course of the investigation, law enforcement officers seized hundreds of vials of steroids, approximately 600 grams of raw testosterone powder, approximately 350 grams of powder cocaine, and several firearms.
KOCH was arrested on June 4, 2015.
Judge Chatigny scheduled sentencing for July 1, 2016, at which time KOCH faces a maximum term of imprisonment of 10 years and a fine of up to $500,000. KOCH is released on a $100,000 bond.
On December 9, 2015, Santucci pleaded guilty steroid distribution and money laundering offenses. He awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, with the assistance of the U.S. Marshals Service, U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.
CEO of Venture Capital Firm Pleads Guilty to Fraud ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that JOSEPH McANDREW, 74, of Pawcatuck, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of wire fraud stemming from his misuse of 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.
Wire fraud carries a maximum term of imprisonment of 20 years. A sentencing date has not been scheduled.
McANDREW is released on a $25,000 bond.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Christopher W. Schmeisser.
Stamford Man Pleads Guilty to Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WAYNE ALEXANDER, also known as “Uncle Easy,” 50, of Stamford, pleaded guilty today in Hartford federal court to one count of possession with intent to distribute and distribution of cocaine base (“crack cocaine”).
According to court documents and statements made in court, between February 2015 and April 2015, law enforcement conducted three controlled purchases of crack cocaine, totaling approximately 130 grams, from ALEXANDER.
ALEXANDER was arrested on a federal criminal complaint on May 11, 2015. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on May 30, 2016, at which time he faces a maximum term of imprisonment of 20 years.
This matter has been investigated by the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force Drug Enforcement Administration, Bridgeport Police Department and Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
New Haven Man Sentenced to 41 Months in Prison for Illegally Possessing and Selling Sawed-Off ShotgunRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CURTIS GIBBS, 32, of New Haven, was sentenced yesterday by Senior U.S. District Judge Alfred V. Covello in Hartford to 41 months of imprisonment, followed by three years of supervised release, for illegally possessing a sawed-off shotgun.
According to court documents and statements made in court, in January 2014, the ATF and New Haven Police Department received information that GIBBS was in possession of a sawed-off shotgun and a .380 caliber pistol and was looking to sell the firearms for $350. In a meeting with an individual who expressed interest in purchasing the firearms, GIBBS noted that the purchaser be careful because the shotgun “had a body attached to it.”
On February 3, 2014, the purchaser and GIBBS completed the transaction for the sawed-off shotgun and pistol. The pistol that was sold at that time turned out to be a starter’s pistol.
GIBBS has several prior felony convictions, including convictions for weapon in a motor vehicle and assault.
GIBBS has been detained since his arrest on April 23, 2014. On April 7, 2015, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Robert M. Spector.
West Haven Man Sentenced to 5 Years in Prison for Drug and Gun OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JESSE WRUBEL, 29, of West Haven, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 60 months of imprisonment, followed by three years of supervised release, for trafficking marijuana and unlawfully possessing firearms.
This matter stems from a DEA Task Force investigation that included the use of court-authorized wiretaps, controlled purchases of marijuana and physical surveillance. On June 4, 2013, WRUBEL and Matthew Voloshin were arrested on state charges. Search warrants executed in association with their arrests revealed two loaded handguns and approximately $50,000 that were found at Voloshin’s East Haven residence, and three handguns and approximately 40 pounds of marijuana that were found at an East Haven garage rented by Voloshin. Three of the five firearms were stolen. Law enforcement also seized approximately 20 pounds of marijuana, approximately $15,000 and a loaded nine millimeter rifle from WRUBEL.
On January 30, 2014, a grand jury returned an indictment charging WRUBEL and Voloshin with marijuana and firearm offenses. WRUBEL has been detained since his arrest on February 7, 2014. On November 24, 2015, he pleaded guilty to one count of conspiracy to distribute marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime.
Voloshin also has been detained since his arrest on February 7, 2014. On June 30, 2015, he pleaded guilty to one count of conspiracy to distribute more than 20 kilograms of marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime. On March 30, 2016, he was sentenced to 66 months of imprisonment.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, which includes personnel from the New Haven, Hamden, Branford, Meriden, West Haven, North Haven, East Haven, Derby and Ansonia Police Departments. The case was prosecuted by Assistant U.S. Attorneys Patrick Caruso and Amy Brown.
Waterbury Tax Preparer Admits Filing Hundreds of False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARCUS FOX, 41, of Waterbury, pleaded guilty today in Hartford federal court to preparing and filing hundreds of false tax returns.
According to court documents and statements made in court, FOX prepared tax returns for individuals in his community, many of whom were associated with a church he attended. From approximately 2009 through 2012, FOX prepared and filed more than 900 tax returns with the U.S. Internal Revenue Service on behalf of clients. A number of tax returns that FOX prepared contained false information, including false childcare credits, education credits, American opportunity credits, itemized deductions, education expenses, charitable contributions, unreimbursed employee business expenses, hobby expenses, and childcare costs. The false returns resulted in clients receiving substantial refunds to which they were not entitled. FOX typically received payment of between $200 and $350 for his tax preparation services.
In addition, beginning in approximately 2011, FOX falsified a number of returns in a manner that allowed FOX to secure a greater payout for himself without his clients' knowledge. FOX would prepare a client tax return with significant falsified credits or expense deductions, which resulted in a fraudulent claim for a substantial refund. The tax return would be e-filed with the IRS with instructions to split payment of the large refund between the client and FOX, with FOX receiving a substantial portion of the payment. FOX would also prepare a second tax return, which he never filed, but instead provided to his client to hide the ongoing scheme.
The government suffered a tax loss of more than $2.2 million as a result of this scheme.
FOX pleaded guilty to two counts of aiding and assisting the filing of a false tax return. He is scheduled to be sentenced by Senior U.S. District Judge Alfred V. Covello on June 23 2016, at which time he faces a maximum term of imprisonment of six years. He also has agreed that he owes restitution in the amount of $2,276,837.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Rocky Hill Man Sentenced to 3 Years in Federal Prison for Trafficking OxycodoneRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NICHOLAS DYBER, 30, of Rocky Hill, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 36 months of imprisonment, followed by five years of supervised release, for trafficking oxycodone. DYBER also was ordered to pay a $40,000 fine.
According to court documents and statements made in court, in 2012, the Drug Enforcement Administration’s New Haven Task Force began investigating an oxycodone trafficking operation headed by DYBER, who formerly resided in West Hartford. The investigation, which included the use of court-authorized wiretaps, controlled purchases of oxycodone, physical surveillance and the use of an undercover officer, revealed that DYBER was being supplied with bulk quantities of oxycodone by Harland Fields of the Bronx, N.Y., and Eduardo Garcia of Modesto, Calif. At times, DYBER paid Brian Vanderpool, of West Hartford, to travel to New York to pick up oxycodone from Fields and transport the pills to DYBER in Connecticut. DYBER distributed the pills he received from Fields and Garcia to customers and other Hartford-area distributors.
DYBER was arrested on October 11, 2013. On February 20, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute 10,000 oxycodone pills
Fields, Garcia and Vanderpool also pleaded guilty. On August 21, 2014, Garcia was sentenced to 60 months of imprisonment. On October 27, 2014, Fields was sentenced to 66 months of imprisonment. On November 4, 2014, Vanderpool was sentenced to four months in a halfway house and four years of supervised release.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, which includes personnel from the New Haven, Hamden, Branford, Meriden, West Haven, North Haven, East Haven, Derby and Ansonia Police Departments. The case was prosecuted by Assistant U.S. Attorney Patrick Caruso.
East Haven Man Sentenced to More Than 5 Years in Federal Prison for Drug and Gun OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MATTHEW VOLOSHIN, 30, of East Haven was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 66 months of imprisonment, followed by three years of supervised release, for trafficking marijuana and unlawfully possessing firearms.
This matter stems from a DEA Task Force investigation that included the use of court-authorized wiretaps, controlled purchases of marijuana and physical surveillance. On June 4, 2013, VOLOSHIN and Jesse Wrubel were arrested on state charges. Search warrants executed in association with their arrests revealed two loaded handguns and approximately $50,000 that were found at VOLOSHIN’s residence, and three handguns and approximately 40 pounds of marijuana that were found at an East Haven garage rented by VOLOSHIN. Three of the five firearms were stolen. Law enforcement also seized approximately 20 pounds of marijuana, approximately $15,000 and a loaded nine millimeter rifle from Wrubel.
On January 30, 2014, a grand jury returned an indictment charging VOLOSHIN and Wrubel with marijuana and firearm offenses. VOLOSHIN has been detained since his arrest on February 7, 2014. On June 30, 2015, he pleaded guilty to one count of conspiracy to distribute more than 20 kilograms of marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime.
Wrubel, of West Haven, also has been detained since his arrest on February 7, 2014. On November 24, 2015, he pleaded guilty to one count of conspiracy to distribute marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime. He is scheduled to be sentenced tomorrow at 1:00 p.m.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force, which includes personnel from the New Haven, Hamden, Branford, Meriden, West Haven, North Haven, East Haven, Derby and Ansonia Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Amy Brown.
Former Executive of Stamford Company Admits Insider TradingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that DENNIS W. HAMILTON, 45, of Norwalk, waived his right to indictment and pleaded guilty today in New Haven federal court to one count of securities fraud.
According to court documents and statements made in court, HAMILTON was employed as Vice President of Tax at Harman International Industries, Incorporated (“Harman”) in Stamford. Harman is a publicly-held company whose shares trade on the New York Stock Exchange under the ticker symbol “HAR.” Beginning in 2009, Harman allowed directors, members of its executive committee and certain other insiders to buy or sell Harman securities in the public market only during a declared trading window period. In August 2013, HAMILTON was included on Harman’s insider trading list, and he was subsequently notified when the window in which he could engage in open market purchases of Harman securities was open, and that all trades must be cleared in advance with Harman’s general counsel. On September 27, 2013, HAMILTON and other Harman employees were advised via email that the “window period” within which they may engage in open market purchases or sales of Harman securities had closed.
In October 2013, HAMILTON received material, non-public information about Harman’s financial results for the first quarter for the fiscal year ending 2014, including drafts of Harman’s Form 10-Q filing and an earnings press release. He and other Harman executives also participated in a conference call with Harman’s Audit Committee, during which a draft resolution declaring a quarterly cash dividend on Harman’s common stock was discussed.
On October 30, 2013, HAMILTON, an insider in possession of material, non-public information, purchased 17,000 shares of HAR for between $72.07 and $72.67 per share, through a Charles Schwab account in the name of HAMILTON and his wife. On October 30, 2013, the closing price of HAR was $72.02. On October 31, 2013, Harman announced positive first quarter earnings for fiscal year 2014. On that date, the closing price of HAR was $81.02.
Between October 31, 2013 and November 5, 2013, through his Charles Schwab account, HAMILTON wrote at least 200 covered calls on HAR at a strike price of $70.00 with an expiration date of November 16, 2013 for a premium of $203,366. Through the use of some of these covered calls, HAMILTON realized a gain of $131,958 on the 17,000 shares of HAR he had purchased on October 30, 2013.
HAMILTON was arrested on a criminal complaint on February 5, 2016. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on June 10, 2016, at which time he faces a maximum term of imprisonment of 20 years and a fine of up to $5 million. He is released on bond pending sentencing.
In a parallel action, the Securities and Exchange Commission has filed related civil charges against HAMILTON. (Securities and Exchange Commission v. Dennis Wayne Hamilton, 3:16-cv-00192)
This investigation is being conducted by the Federal Bureau of Investigation with valuable assistance from Harman International Industries. The case is being prosecuted by Assistant U.S. Attorney Heather Cherry.
Former New Canaan Resident Admits Defrauding InvestorsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOHN B. JEFFREY, also known as TUCKER JEFFREY, 48, formerly of New Canaan, Conn., and currently a resident of Denver, Colo., waived his right to indictment and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of wire fraud stemming from a scheme to defraud investors of more than $1.3 million.
According to court documents and statements made in court, JEFFREY offered individuals the opportunity to invest in Anchor Shipping and Trading, and Southern Cross Shipping, representing to victims that the companies were organized in the Marshall Islands, were engaged in the cargo shipping business, and had long-term contracts that would support a profitable international shipping business. Instead of using invested funds as he had promised, JEFFREY used the vast majority of the money for his personal expenses, including paying for the mortgage on his New Canaan home, tuition at private schools, country club dues, and home renovation and landscaping costs.
As part of the scheme, JEFFREY created bogus documents that represented that certain well-known executives in the international shipping business were involved with the companies when, in fact, those executives had no such involvement. He also e-mailed and telephoned his victims falsely representing that the companies were profitable, that the victims would soon be receiving distributions from their investments, and to reassure victims when payments were delayed.
JEFFREY faces a maximum term of imprisonment of 20 years and a fine of up to approximately $2.6 million. A sentencing date is not scheduled.
This matter has been investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
Hartford Man Sentenced to 10 Years in Prison for Gang-Related Narcotics TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AKEEM MANOO, a.k.a. “Keeme,” 25, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 120 months of imprisonment, followed by five years of supervised release, for gang-related narcotics trafficking.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force, which includes the Hartford Police Department, into narcotics trafficking by members and associates of WestHell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” as the leader of the WestHell street gang who, along with MANOO and other associates, distributed crack cocaine in the Westland Street area of Hartford.
In December 2014 and January 2015, investigators made four controlled purchases of crack from MANOO. In addition, MANOO indicated to the drug purchaser that MANOO had kilogram quantities of crack available for $19,600 per kilogram.
MANOO’s criminal history includes two state firearms convictions.
MANOO has been detained since March 2014 when he was arrested on state motor vehicle charges. On April 24, 2014, a grand jury returned a 52-count indictment charging Scott, MANOO and 23 others with various offenses. On May 4, 2015, MANOO pleaded guilty to one count of conspiracy to distribute 280 grams or more of cocaine base (“crack”).
Twenty-three defendants pleaded guilty to various offenses and one defendant was convicted after trial. One defendant was shot and killed while his case was pending.
On March 21, 2016, Scott was sentenced to 13 years of imprisonment.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Ringleader of Mortgage Loan Modification Scheme Pleads GuiltyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ARIA MALEKI, 33, of Santa Ana, Calif., pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to conspiring to defraud homeowners across the United States who were seeking mortgage loan modifications.
According to court documents and statements made in court, MALEKI and others jointly operated a series of California-based companies that falsely purported to provide home mortgage loan modifications and other consumer debt relief services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees. The defendants did business, at various times, as “First Choice Financial Group, Inc.,” “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” “Nation Star Financial,” and “Nation Star Fin Group.”
Acting as representatives of these entities, MALEKI and his co-conspirators cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans. The defendants charged homeowners fees that typically ranged from approximately $2,500 to $4,300 for their services. To induce homeowners to pay these fees, the defendants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.
In fact, the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners had not qualified for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request. Few homeowners ever received any type of mortgage loan modification through the defendants’ companies, and few homeowners received refunds of their fees.
Participants in the scheme used pseudonyms and periodically changed their business and operating names to evade detection. The defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants and their co-conspirators had set up in states other than California.
MALEKI presided over the entire structure of this scheme. As a result, more than 1,000 homeowners suffered losses totaling more than $3 million.
On January 21, 2016, a grand jury in New Haven returned an indictment charging MALEKI and six other California residents with conspiracy and fraud offenses related to this scheme. The defendants were arrested on January 26.
MALEKI pleaded guilty to one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years. He also has agreed to pay restitution of approximately $3 million. Sentencing is scheduled for June 14, 2016.
MALEKI also has agreed to forfeit approximately $350,000 that investigators seized from various bank accounts, approximately $362,000 sized from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 458 Italia.
Three other defendants, Mehdi Moarefian, a.k.a. “Michael Miller,” 36, and Daniel Shiau, a.k.a. “Scott Decker,” 30, both of Irvine, Calif., and Serj Geutssoyan, also known as “Anthony Kirk,” 33, of Santa Ana, Calif., previously pleaded guilty to the same charge and await sentencing
This matter is being investigated by the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Housing Finance Agency – Office of Inspector General, and Federal Bureau of Investigation, with assistance from the Oklahoma Attorney General’s Office.
The case is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Sarah P. Karwan.
New Haven Hotel Agrees to Comply with Americans with Disabilities ActRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with Days Inn New Haven, a Connecticut hotel, to resolve allegations that the hotel was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
Under federal law, private entities that own or operate “places of public accommodation,” which includes hotels, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and to undertake periodic reviews to determine compliance by covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages and civil penalties.
As part of a compliance review survey, 12 randomly-selected New Haven area hotels were asked to complete and return a survey form. Onsite inspections to confirm survey responses were then conducted and each hotel was reviewed for its compliance with federal law. Six of the surveyed hotels were found to have ADA violations. The government has been working with the owners and operators of each hotel found in violation to secure voluntary compliance. All six of the hotels have now entered into settlement agreements with the government, with Days Inn New Haven being the final hotel to reach an agreement. The hotels have agreed to voluntarily comply with the ADA.
“The Americans with Disabilities Act ensures that individuals are able to access and enjoy the state’s hotels and other public accommodations,” stated U.S. Attorney Daly. “Our Office is committed to enforcing the ADA, which requires businesses to appropriately serve the diverse population of patrons who live, work, and visit Connecticut. We thank the ownership and management of all the hotels that were surveyed, and appreciate their willingness to work with the government to address and correct the ADA violations.”
The hotel survey was conducted in accordance with the Justice Department’s statutory responsibility to review compliance with federal law, and not in response to any specific complaint against any of the hotels within the scope of the review.
Any member of the public who wishes to file a complaint alleging that a hotel or any other place of public accommodation within the District of Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorneys David Nelson, Vanessa Avery, and Ndidi N. Moses, in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Hartford Man Sentenced to 13 Years in Prison for Heading Gang-Related Narcotics Trafficking RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MELKUAN SCOTT, also known as “Young God,” “Mel,” “Young” and “YG,” 25, of Hartford and Andover, was sentenced yesterday by U.S. District Judge Jeffrey Alker Meyer in New Haven to 156 months of imprisonment, followed by seven years of supervised release, for heading a gang-related narcotics trafficking operation.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force, which includes the Hartford Police Department, into narcotics trafficking by members and associates of WestHell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified SCOTT as the leader of the WestHell street gang who, along with numerous associates, distributed crack cocaine in the Westland Street area of Hartford. The investigation also revealed that SCOTT and his associates used an apartment on Love Lane in Hartford to convert, or “cook,” cocaine into crack cocaine.
SCOTT was arrested on April 15, 2014, after he coordinated a quarter-kilogram crack cocaine transaction. On that date, a search of SCOTT’s Andover residence revealed a loaded .40 caliber pistol with two magazines, and nine cell phones. A search of his Hartford residence revealed bundles of cash and items used to process and package narcotics. A search of the Love Lane apartment revealed two firearms, one of which was loaded, and appliances and utensils used to manufacture crack cocaine.
SCOTT has been detained since his arrest. On May 5, 2015, he pleaded guilty to one count of conspiracy to distribute 280 grams or more of crack cocaine, and one count of possession of a firearm by a previously convicted felon.
Twenty-five individuals were charged as a result of the investigation. One defendant was convicted after trial and 23 defendants pleaded guilty to various offenses. One defendant was shot and killed while his case was pending.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants.
This case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Participant in Advance Fee Fraud Scheme Sentenced to 5 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ALEXANDER D. HURT, also known as “Alex Hurt” and “Alex Dante,” 45, of Scottsdale, Ariz., formerly of Massachusetts, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 60 months of imprisonment, followed by three years of supervised release, for his role in an advance fee fraud scheme that victimized more than 40 individuals who lost a total of more than $4.5 million. HURT also was ordered to perform 250 hours of community service while on supervised release.
On December 22, 2014, a grand jury returned an 11-count indictment charging HURT and David C. Jackson, also known as “C. David Manns,” “Charles Jackson” and “Andrew D. Smithson,” with one count of conspiracy to commit wire fraud and multiple counts of wire fraud. The indictment also charged Hurt with one count of making a false statement to federal law enforcement. On September 29, 2015, a jury returned a verdict of guilty on all counts.
According to the evidence presented during the trial, in approximately September 2009, Jackson, using the alias “C. David Manns,” established Jalin Realty Capital Advisors, LLC, using a business address in Dayton, Ohio. In 2011, Jackson changed the name of his business to American Capital Holdings, LLC, using business addresses in Pittsburgh, Pennsylvania. Soon after changing the business name, Jackson began introducing himself to victim clients as “Charles Jackson” and then also used the name “Andrew Smithson” to prevent victims from learning his true identity and the true nature of his background and his scheme.
HURT held himself out as Vice President of Brightway Financial Group, LLC, a company that used a business addresses in Grapevine, Texas. As established during the trial, HURT used his background as a pastor with a Brockton, Massachusetts church to gain the confidence of a number of victims who lost money in the scheme. When meeting with victims, HURT represented himself to be the decision maker with respect to whether or not the individuals would get loans for their business. HURT’s representations, like the loans themselves were entirely fraudulent.
Working together Jackson and others, HURT defrauded individuals, including Connecticut residents, out of millions of dollars. In anticipation of receiving large business loans that HURT represented he could deliver, the victims wired funds to Jackson, HURT and certain escrow accounts that they had set up. The upfront fees were alternately described as “application fees,” “collateral fees” or “commitment fees.” The victims were promised that the fees were totally refundable, and the victims were told by HURT and others that they would be provided a refund of the upfront fees if their loan transactions were not completed.
In order to convince victim-borrowers that the loans were legitimate and that Jalin and ACH had successfully secured loans in the past, Jackson provided victims and potential victims the name and phone number of a co-conspirator and told them that they could contact her for a reference. After she was contacted, the co-conspirator falsely represented to victims and potential victims that she had, in fact, received funding from Jackson for a construction loan, and that she had successfully done a project financed with her co-conspirator and Jalin.
Through this scheme, more than 40 individuals provided Jackson and HURT with more than $4.5 million in advance fees and funds that were to be held in escrow for business loans that were never provided. Some of the individuals received partial refunds of the advance fees they had provided, but the refunds were made using fees that had been paid by other victims in a Ponzi-like scheme.
HURT previously served as Pastor at the Dominion Christian Church in Brockton, Mass. As established in court, HURT moved money generated through the scheme through church accounts and used the proceeds for himself and his family.
HURT was ordered to pay restitution in the amount of $2,255,000
On February 8, 2016, Jackson was sentenced to 205 months of imprisonment.
Jackson was previously convicted in the Western District of Pennsylvania of federal bank fraud and money laundering offenses in October 2006 and was sentenced to 41 months in prison, followed by five years of supervised release. He was released from federal prison in September 2009 and operated this advance fee fraud scheme while on supervised release.
This matter was investigated by the Federal Bureau of Investigation and the Ansonia Police Department, and was prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Michael S. McGarry.
New Haven Man Sentenced to Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PERRY FLOWERS, also known as “Mel,” 46, of New Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to approximately 21 months of imprisonment, time already served, and four years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, on two occasions in late 2013, and again in March 2014, FLOWERS sold crack cocaine to an individual working with law enforcement. FLOWERS sold a total of approximately 43 grams of crack during the three sales.
FLOWERS has been detained since his arrest on June 18, 2014. On December 2, 2015, he pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack cocaine”).
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorneys Robert Spector and Gabriel Vidoni.
Rhode Island Man Charged with Robbing Westbrook BankRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on March 3, 2016, a federal grand jury in New Haven returned an indictment charging ROBERT CHADRONET, 38, of Rumford, R.I., with one count of bank robbery.
The indictment alleges that on August 27, 2015, CHADRONET used force, violence and intimidation to rob $2,329 from a branch of Citizens Bank located at 1187 Boston Post Road in Westbrook.
CHADRONET appeared earlier today before U.S. Magistrate Judge Robert A. Richardson in Hartford and entered a plea of not guilty to the charge. He has been detained since September 10, 2015, when he was arrested on state charges related to a bank robbery that occurred in Milford on August 18, 2015.
If convicted of the charge, CHADRONET faces a maximum term of imprisonment of 20 years and a fine of up to.
CHADRONET is currently on federal supervised release for a prior bank robbery conviction.
The investigation is ongoing.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, Connecticut State Police, Branford Police Department, Milford Police Department and Wareham (Mass.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Litchfield Resident Sentenced to 30 Months in Federal Prison for Multiple Fraud ConspiraciesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that RYAN GEDDES, 44, of Litchfield, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by three years of supervised release, for participating in multiple conspiracies involving a series of real estate transactions intended to shield assets from creditors.
According to court documents and statements made in court, GEDDES had accrued a series of debts as of late 2005, and was the subject of various lawsuits and collection efforts for the next several years. A bank fraud conspiracy commenced in November 2005 when GEDDES sold a lakefront home located at 27 Palmer Road in Morris to Thomas Provenzano. Lacking the funds to qualify for the $923,000 mortgage, Provenzano nonetheless obtained the loan based on an application that falsely listed his income as $20,000 per month, or $240,000 annually, and falsely listed Provenzano as having worked for several years as the Operations Manager for one of GEDDES’s construction companies. Provenzano had not worked in that capacity, and had earned substantially less. The loan application also listed GEDDES’s company as having verified Provenzano’s employment. In November 2006, Provenzano refinanced the loan, obtaining a $936,000 mortgage from a federally insured bank. The new loan application, like the prior one, falsely listed Provenzano as employed by GEDDES’s construction company, and falsely listed his monthly income as $28,000, or $336,000 annually. The application again listed GEDDES’s company as having verified Provenzano’s employment. The loan is now in default, and the 27 Palmer Road property is in foreclosure.
The first of two mail and wire fraud conspiracies commenced in December 2009 and January 2010, in a series of discussions among GEDDES, Provenzano, and others about how to defraud a title insurance company. The discussions focused on conducting a real property transfer based on a deliberately defective title search, in which liens against the property are omitted, and title insurance is obtained based on the defective title search report. Later, a fraudulent claim is lodged against the title insurer. The conspirators decided to attempt the scheme on a property controlled by GEDDES, located at 66 Donahue Road Extension in Litchfield. After Provenzano assisted in a title search, GEDDES personally reviewed the report and crossed off several liens to be omitted from the title insurance application. In March 2010 GEDDES arranged a straw transfer of the property to another individual, while continuing to reside in and pay the mortgage and expenses on the property. Title insurance was issued on the property, with five liens, totaling about $990,000, deliberately omitted from the title search report.
The second of two mail and wire fraud conspiracies commenced in May 2009 when GEDDES arranged to transfer another property of his, located in Old Forge, N.Y., to Dustin Whitten. GEDDES continued to use the property and pay the mortgage and maintenance expenses. In March 2011, GEDDES and Whitten arranged to obtain a home insurance policy on the New York property in Whitten’s name. On July 4, 2011, after a bankruptcy court meeting about seeking to compensate GEDDES’s creditors, the New York property was destroyed in a fire. In September 2011, Whitten swore out an insurance claim on the property, falsely representing himself as the owner and seeking compensation in the respective amounts of $515,038.50 for the destroyed structure and $92,974.47 for personal property allegedly lost in the fire. The claim was eventually denied by the insurance company. GEDDES has admitted that the purpose of the scheme was to shield the insurance proceeds from his creditors.
Judge Arterton ordered GEDDES to pay $703,698.70 in restitution.
On April 28, 2015, GEDDES pleaded guilty to one count of conspiracy to commit bank fraud and two counts of conspiracy to commit mail and wire fraud.
Provenzano and Whitten previously pleaded guilty. On December 1, 2014, Provenzano was sentenced to 18 month of imprisonment. On December 18, 2015, Whitten was sentenced to 12 months and one day of imprisonment.
This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorneys Henry Kopel and Michael Gustafson.
New Haven Man Sentenced to 6 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SHAWN HILL, 32, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 72 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 December 12, 2012, ATF agents and New Haven Police officers executed a search warrant at a residence on Norton Street in New Haven where HILL had been residing. As New Haven SWAT team members forced entry into the second floor apartment, HILL discarded a fully-loaded Sig Sauer, P229, .40 caliber pistol through a window in a bedroom where a 9-year-old child was sleeping. The pistol was quickly recovered by law enforcement and HILL was arrested.
The firearm had been reported as stolen from Wilmington, N.C.
HILL’s criminal history includes numerous felony convictions. 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.
HILL has been detained since February 2013. On June 22, 2015, as the evidence was about to begin in his trial, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. This case is being prosecuted by Assistant U.S. Attorney John H. Durham.
New Haven Man Pleads Guilty to Federal Firearm Charge Stemming from Violent RobberyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that HARRY ANDERSON, a.k.a. “Ace,” 23, of New Haven, pleaded guilty yesterday in New Haven federal court to one count of discharging a firearm in furtherance of a crime of violence.
This matter stems from an investigation into a criminal enterprise known as the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang that operated in New Haven from 2011 through 2015, which was engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies.
In pleading guilty, ANDERSON admitted that on October 21, 2011, he ordered a quantity of crack cocaine from Marquise Moore, whom he knew to be a drug dealer. ANDERSON’s objective in ordering the crack cocaine was not to purchase it, but to rob Moore of the drugs and any cash he had on him at the time. When ANDERSON met Moore, he pulled out a .22 caliber handgun and shot him in the face. ANDERSON then fled, and did not take anything from Moore and did not complete the robbery.
ANDERSON, who is detained, is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on June 1, 2016, and faces a mandatory minimum term of imprisonment 10 years and a maximum term of imprisonment of life.
This ongoing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Robert M. Spector and Peter D. Markle. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
Former East Haven Zoning Official Who Solicited and Received Payments from Residents is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that FRANK BIANCUR, JR., 41, of West Haven, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to 30 days of incarceration in a halfway house, followed by two years of supervised release, for seeking and receiving illegal payments while employed as a Zoning Enforcement Officer for the Town of East Haven. During his term of supervised release, BIANCUR must spend six months in home confinement with electronic monitoring and perform 200 hours of community service.
According to court documents and statements made in court, BIANCUR was employed as the Town of East Haven’s Planning and Zoning Administrator/Zoning Enforcement Officer. In pleading guilty, BIANCUR admitted that he sought and received payments from at least five individuals in exchange for official acts he rendered as the Zoning Enforcement Officer.
In May 2015, a resident of East Haven contacted the East Haven Police Department and the FBI with information that he/she had been extorted by BIANCUR since approximately October 2012 and, as a result, had made cash payments to BIANCUR. On May 19, 2015, BIANCUR called the victim and informed the victim that BIANCUR had to inspect an addition to the victim’s residence. Although BIANCUR stated that he was “fighting” for the victim, he also required a payment of $200 or he would make the victim tear down the addition. On May 21, 2015, the victim engaged in a consensually-recorded meeting with BIANCUR at BIANCUR’s office in East Haven Town Hall. During the meeting, the victim gave BIANCUR $200 in cash, which BIANCUR put in his pocket.
BIANCUR also has admitted that he sought and received $500 cash payments from two additional East Haven residents in order to resolve zoning violations.
BIANCUR was ordered to pay $6,265 in restitution.
BIANCUR was arrested on May 27, 2015. On December 1, 2015, he pleaded guilty to one count of theft of honest services mail fraud.
Prior to his employment by the Town of East Haven, BIANCUR was employed by the City of West Haven and the City of Bridgeport.
This matter was investigated by the Connecticut Public Corruption Task Force and the East Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
The Connecticut Public Corruption Task Force includes the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development – Office of Inspector General and U.S. Department of Health and Human Services – Office of Inspector General. Citizens are encouraged to report corruption to the Task Force by calling 203-238-0505.
Danbury Man Sentenced to 16 Years in Federal Prison for Armed Home InvasionsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARLON PATTERSON, also known as “Head,” 32, of Danbury, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 192 months of imprisonment, followed by five years of supervised release, for orchestrating a series of violent home invasion robberies of illegal drugs and drug trafficking proceeds.
According to court documents and statements made in court, in January 2013 the Danbury Police Department began investigating a narcotics trafficking network, headed by PATTERSON and Michael Spears, which maintained a series of drug distribution locations, known as trap houses, in Danbury, out of which members of the organization sold crack cocaine and heroin. The organization also rented hotel rooms where they packaged and distributed narcotics. The investigation also revealed that PATTERSON, Spears and others had organized and committed armed home invasion robberies of marijuana dealers on January 30, February 14 and February 18, 2013. During each of the robberies, PATTERSON and others, wearing masks and armed with firearms, forced entry into the residence of a known marijuana dealer. Once inside, the perpetrators attempted to or did steal marijuana and cash. In each instance, the perpetrators pistol whipped a victim and threatened to kill others within the home.
In addition, in May 2013, PATTERSON and his associate, Paul Whitehurst, kidnapped an individual who owed Whitehurst a drug debt of approximately $100. Whitehurst physically and verbally assaulted the victim as they drove to a nearby reservoir. At the reservoir, Whitehurst pushed the victim into the water and then threw rocks at him. PATTERSON recorded the incident on his phone and can be heard laughing in the video.
PATTERSON and Whitehurst then drove the victim to a liquor store and purchased a liter of vodka, which Whitehurst forced the victim to drink in its entirety in approximately 15 minutes until the victim lost consciousness. The victim, still unconscious, was then driven to a trap house where he was locked in a bathroom overnight. The next day, PATTERSON and Whitehurst directed the victim to work off his drug debt by selling heroin to customers. After selling the drugs, the victim was released.
PATTERSON’s criminal history includes several felony convictions. In September 2007, he shot an individual in the face and subsequently served approximately five years of imprisonment. Sometime after his release from prison he had the words “Face Shot” tattooed on his arm. PATTERSON faces up to eight years of state incarceration for violating his probation.
PATTERSON has been detained since his arrest on October 16, 2013. On May 1, 2015, he pleaded guilty to one count of interference with commerce by robbery, one count of attempted interference with commerce by robbery, and one count of use of a firearm during and in relation to crimes of violence.
Spears has pleaded guilty and awaits sentencing. Whitehurst also pleaded guilty and, on March 20, 2015, was sentenced to 48 months of imprisonment.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the Danbury Police Department. The DEA Task Force includes personnel from the New Haven, Hamden, Branford, Meriden, West Haven, North Haven, East Haven, Derby and Ansonia Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Tracy Dayton and Vanessa Richards.
Former Greenwich Resident Sentenced to 6 Years in Federal Prison for Sex Trafficking of MinorsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that SHEENA DUME, 23, formerly of Greenwich, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 72 months of imprisonment, followed by 10 years of supervised release, for sex trafficking of minors.
According to court documents and statements made in court, DUME assisted a sex trafficking enterprise headed by Wellington Brown, also known as “Jamal.” As part of the sex trafficking enterprise, Brown and DUME used various manipulative tactics to recruit five different minor victims to engage in prostitution. Brown drove expensive vehicles and displayed jewelry and cash to his victims, and lured them with the prospect of making significant amounts of money. Brown recruited some victims with the fictitious prospect of a modeling career.
Brown took pictures of the minor victims and used them to advertise prostitution services on websites such as backpage.com. Brown and DUME covered the expenses of the prostitution operation, such as renting hotel rooms, providing transportation and condoms, and buying food for the victims. At times, Brown also provided marijuana to the minor victims.
The investigation revealed that the victims engaged in prostitution at various hotels in Stratford and Milford. The victims provided Brown with tens of thousands of dollars they earned through prostitution and received only a small portion of the money they made.
Brown and DUME were arrested in Maryland on July 30, 2014. On February 18, 2015, DUME pleaded guilty to one count of conspiracy to commit sex trafficking of a minor, and five counts of sex trafficking of a minor. She has been detained since her arrest.
On March 26, 2015, Brown pleaded guilty to the same six offenses. On February 11, 2016, he was sentenced to 126 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation, aided by the Milford Police Department, the Stratford Police Department and the Connecticut State Police. U.S. Attorney Daly also recognized the significant assistance provided by the Connecticut Department of Children and Families, particularly its Human Anti-Trafficking Response Team (“HART”).
This case was prosecuted by Assistant U.S. Attorneys David Novick and Marc Silverman.
U.S. Attorney Daly encouraged trafficking victims, and anyone who comes in contact with potential victims of trafficking, to call the National Human Trafficking Resource Center Hotline at 888-373-7888. The hotline is run by the Polaris Project under a federal grant. Hotline operators are trained to identify potential trafficking situations, and will immediately refer tips to law enforcement. Individuals also can send an email to [email protected].
Trafficking victims also are encouraged to send a text message to “BEFREE” to receive an immediate response and help from the National Human Trafficking Resource Center.
Wesleyan Football Player Pleads Guilty to Distributing Synthetic Drug That Caused OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that RYAN WELCH, 22, of Salem, Mass., waived his right to indictment and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to distributing a synthetic hallucinogenic drug at Wesleyan University.
“Federal law enforcement once again finds itself on a university campus, investigating the broad distribution of a synthetic hallucinogen that nearly caused the fatal overdose of a college student,” said U.S. Attorney Daly. “The U.S. Attorney’s Office continues to work closely with DEA and our state and local partners to actively investigate drug overdoses across Connecticut. It is our collective priority to identify the source and makeup of the drugs that cause overdoses, to remove these drugs from the streets and out of the hands of vulnerable users, and to prosecute those responsible for their illegal distribution. Too many young people believe synthetic drugs are harmless party drugs when, as this case makes abundantly clear, they are highly dangerous.”
According to court documents and statements made in court, on October 31, 2015, the Wesleyan University Department of Public Safety responded to an emergency call from a campus dorm room and found a male student in severe medical distress. The victim was convulsing and struggling to breathe, and his body temperature was significantly elevated. The victim was transported by ambulance to the hospital where he spent several days recovering.
The investigation revealed that the victim had ingested “2C-B,” and that WELCH was the source of the 2C-B that the victim ingested.
The investigation further revealed that that WELCH, a member of Wesleyan’s football team, had distributed 2C-B to between 15 and 20 other members of the team during the 2015 season. Initially, he distributed the drug in liquid form, mixing it in a water bottle with a non-alcoholic drink. Later, he distributed it in powder form, in clear capsules. Some teammates referred to the 2C-B distributed by WELCH as “Welchie’s drug” or “Welchie’s special.” Certain players paid WELCH approximately $10 for each single-dose capsule.
The investigation further revealed that WELCH purchased the synthetic drug on the Dark Web using Bitcoin.
WELCH was arrested on a federal criminal complaint on January 21, 2016.
WELCH pleaded guilty to one count of possession with intent to distribute, and distribution of, 2C-E and 2C-B, Schedule I controlled substances (hallucinogens). The offense carries a maximum term of imprisonment of 20 years and a fine of up to $1 million.
Judge Bolden scheduled sentencing for May 20, 2016.
WELCH is released on a $100,000 bond.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, which includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector and Senior Assistant State’s Attorney Eugene Calistro of the Middlesex State’s Attorney’s Office, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
Hartford Man Sentenced to Federal Prison for Gang-Related Narcotics TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MICHAEL MORRISON, also known as “Nazzie,” 26, of Hartford, was sentenced yesterday by U.S. District Judge Jeffrey Alker Meyer in New Haven to 24 months of imprisonment, followed by one year of supervised release, for trafficking narcotics.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of WestHell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” as the leader of the West Hell street gang who, along with his associates, distributed crack cocaine in the Westland Street area of Hartford.
MORRISON regularly received “8-ball” quantities (3.5 grams) of crack cocaine from members of the conspiracy and sold the drug to others.
MORRISON was arrested on May 7, 2014. On April 17, 2015, he pleaded guilty to using a telephone to facilitate a narcotics trafficking offense. He has been detained since January 26, 2016, when his bond was revoked.
Twenty-five individuals were charged as a result of the investigation. One defendant was convicted after trial and 23 defendants pleaded guilty to various offenses. One defendant was shot and killed while his case was pending. Scott pleaded guilty and awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Former East Windsor Resident Pleads Guilty to Federal Explosives OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PAUL GOTTA, 58, pleaded guilty today in Hartford federal court to one count of knowingly and willfully distributing an explosive material to an individual who was under 21 years of age.
According to court documents and statements made in court, in November 2012, GOTTA aided an individual who was 17 years old in the purchase of thousands of rounds of handgun ammunition. In addition, on two occasions in December 2012, GOTTA purchased two pounds of explosives powder at Riverview Gun Sales in East Windsor and distributed it to the same juvenile.
At time of the offense, GOTTA was a Catholic priest residing at the rectory of St. Philip Church in East Windsor.
On January 30, 2014, a grand jury in Hartford returned a six-count indictment charging GOTTA with aiding and abetting the unlawful transport of a firearm in interstate commerce, aiding and abetting the possession of a handgun by a juvenile, aiding and abetting the possession of ammunition by a juvenile, distribution of explosive material to an individual under the age of 21, aiding and abetting the attempted manufacture of a pipe bomb, and obstruction of justice.
GOTTA pleaded guilty to Count Four of the indictment.
GOTTA is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on May 19, 2016, at which time he faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
GOTTA was arrested on July 19, 2013, and is released on bond.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Windsor Police Department, and is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Colorado Man Charged with Enticement of a MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an indictment today charging NATHANIEL SMITH, 29, of Aurora, Colo., with one count of enticement of a minor.
The indictment alleges that in January 2016, SMITH used a cell phone and Internet-based messaging and video chatting services to entice a minor to engage in sexual activity.
SMITH has been detained in state custody since January 25, 2016, when he was arrested on related state charges in New London.
If convicted of enticement of a minor, SMITH faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
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, the New London Police Department and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Hartford Grocery Store Owner Sentenced to 18 Months in Federal Prison for Food Stamp FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SALIH KAYA, 55, of West Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 18 months of imprisonment, followed by three years of supervised release, for committing food stamp fraud at his Hartford grocery store.
The federal food stamp program, known as the Supplemental Nutrition and Assistance Program (“SNAP”), is administered by the USDA’s Food and Nutrition Service (“FNS”) 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 Benefit Transfer (“EBT”) card. 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 and statements made in court, KAYA has owned Green Apple Market, located at 264 Farmington Avenue in Hartford, since it opened on July 1, 2008. Between November 2010 and March 2014, KAYA illegally exchanged food stamps for cash and other ineligible items with customers at the store.
The FNS estimates that a reasonable sales figure for Green Apple Market, given the size, amenities and location of the store, should be no more than $60,000 per year. However, during this period, sales for the store totaled more than $2.6 million.
Judge Meyer ordered KAYA to pay restitution in the amount of $1,878,474.84.
KAYA was arrested on June 25, 2014. On March 5, 2015, he pleaded guilty to one count of food stamp fraud.
This matter was investigated by the U.S. Department of Agriculture, Office of Inspector General, and was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
URS Corporation AES to Pay $580K to Resolve Allegations it Overcharged on Niantic River Bridge ContractRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that URS CORPORATION AES (“URS”) has entered into a civil settlement agreement with the federal government in which URS will pay $580,000 to resolve allegations that the Rocky Hill-based construction company violated the federal False Claims Act and the common law in overbilling the federal government on a bridge reconstruction project in Niantic that was funded by the National Railroad Passenger Corporation (“Amtrak”).
In 2007, Amtrak awarded a contract to Washington Group, International, Inc. (“WGI”) to provide construction management services for the replacement of the Niantic River rail bridge. WGI was acquired by URS in 2008, and URS assumed responsibility for the contract. The contract provided that the construction management company would be compensated for its services according to a specific pricing schedule that was incorporated into the contract. The pricing schedule stated that labor efforts pursuant to the contract would be paid at the fixed labor rates listed in an attachment to the pricing schedule. The attachment, in turn, provided that the labor rates were maximum rates per hour for each employee work classification and that the contractor should bill the appropriate rate for each employee up to the maximum rate contained in the attachment.
The federal government contends that in most instances during the time that URS provided construction management services for the bridge reconstruction project, the company charged the maximum labor rates, rather than the actual labor rates, for the employee positions listed on the attachment to the pricing schedule and, as a result, that the federal government was overbilled.
“Federal contractors must abide by the billing requirements set forth in government contracts so that taxpayer dollars are not wasted,” stated U.S. Attorney Daly. “I thank Amtrak OIG and the U.S. Department of Transportation OIG for thoroughly investigating this matter, and URS for cooperating with the government’s investigation.”
“This was a significant civil recovery for Amtrak, and one that sends an important message for contractors regarding their obligation to properly bill for services,” said Amtrak Inspector General Tom Howard.”
“As evidenced by this settlement agreement with URS Corporation AES, we remain steadfast in our commitment to ensuring the integrity of the programs designed to maintain and improve our nation’s transportation infrastructure,” said Todd Damiani, regional Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General. “Working with the Secretary of Transportation, Amtrak, and our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.”
This case was investigated by Amtrak’s Office of Inspector General and the U.S. Department of Transportation’s Office of Inspector General.
The matter was handled within the U.S. Attorney’s Office by Assistant U.S. Attorney William A. Collier and Auditor Susan N. Spiegel.
Two Hamden Men Charged with Distributing Oxycodone Involved in Weston OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that an investigation into a recent drug overdose in Weston has resulted in federal oxycodone distribution charges against two Hamden residents.
TAHIR FARID, 21, and RYAN LOONEY, 19, are each charged by federal criminal complaint with possession with intent to distribute, and distribution of, oxycodone. FARID was arrested on February 22 and is released on a $250,000 bond. LOONEY was arrested on February 29 and is released on a $100,000 bond.
According to the criminal complaints, the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Weston Police Department are investigating a drug-overdose of a 22-year-old male in Weston. The victim was found unresponsive at a friend’s residence on January 5, 2016. He remains unresponsive and, according to medical personnel, is in a “persistent vegetative state.”
It is alleged that on January 3, 2016, the victim purchased 30 40-milligram oxycodone pills from FARID in exchange for $900. He then consumed some of those pills, as well as other substances, which led to his overdose. It is further alleged that prior to the victim’s overdose, LOONEY supplied FARID with oxycodone pills.
The charge of possession with intent to distribute, and distribution of, oxycodone carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are 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, with the assistance of the U.S. Marshals Service, the Weston Police Department and the Monroe Police Department. The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Hartford Grocer, Two Others, Charged with Heroin TraffickingRead 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 a federal grand jury in Hartford returned a 10-count indictment today charging JOHNNY BELTRE, 32, of Cromwell, ELVIS DE LOS SANTOS, also known as “Jorge,” 23, of Hartford, and DOMINGO DE LOS SANTOS, 48, of Hartford, with heroin trafficking offenses.
This matter stems from an ongoing investigation being conducted by the Drug Enforcement Administration’s Hartford Task Force, which includes participants from the Bristol, East Hartford, Hartford, Manchester, New Britain, Wethersfield and Willimantic Police Departments.
As alleged in court documents and statements made in court, the DEA Task Force has been investigating a heroin trafficking organization that BELTRE has been operating from his business, the Beltre Family Grocery store located at 955 Broad Street in Hartford. Between July 2015 and January 2016, law enforcement made seven controlled purchases of heroin from BELTRE and his associates. For each purchase, an individual arranged to purchase heroin from BELTRE through recorded telephone calls, text messages or in-person meetings. The individual then travelled to Beltre Family Grocery and provided BELTRE with money. BELTRE then sent the purchaser to ELVIS DE LOS SANTOS’s apartment at 105 Sherbrooke Avenue or DOMINGO DE LOS SANTOS’s residence at 132 Newbury Street to obtain the heroin.
On February 22, 2016, investigators in Connecticut learned that BELTRE and two other associates were arrested in the Bronx, N.Y., after BELTRE and his associates provided a courier with a bag containing approximately $500,000 in exchange for 20 kilograms of heroin. Later that day, members of the DEA’s Hartford Task Force arrested ELVIS DE LOS SANTOS and DOMINGO DE LOS SANTOS on federal criminal complaints. On that date, a search of BELTRE’s residence in Cromwell revealed $433,577 in cash; a search of ELVIS DE LOS SANTOS’s residence revealed two bags of raw heroin, cutting agents, a digital scale and baggies, and a search of DOMINGO DE LOS SANTOS’s residence revealed a bag of heroin, a bag of cocaine, cutting agents, a kilogram press, pieces of an unassembled kilogram press, baggies, scales, gloves, a vacuum sealer and $6,000 in cash.
The indictment charges all three defendants with conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin. If convicted of this charge, each defendant faces a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. Each defendant also faces multiple counts of possession with intent to distribute, and distribution of, heroin.
The three defendants are detained.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Glastonbury Man Sentenced to 10 Months in Federal Prison for Structuring Financial TransactionsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DAVID E. RAYMOND, 75, of Glastonbury, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 10 months of imprisonment, followed by two years of supervised release, for purposefully engaging in cash transactions at banks in order to avoid the filing of reports.
Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often conduct their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000.01 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
According to court documents and statements made in court, RAYMOND purchased rock and roll memorabilia for a doctor who owned a medical practice. RAYMOND’s friend, Andrea Dobrozensky, was the office manager for the medical practice and also paid the doctor’s personal expenses. For purchases of items for the doctor in amounts greater than $10,000, RAYMOND requested that any checks payable to him be made in amounts under $10,000 so as to avoid the bank filing a CTR when he cashed the checks. The checks, ranging in amounts from $4,000 to $9,900, were payable to RAYMOND and many were dated on the same date.
Between August 2009 and May 2012, RAYMOND received 20 checks totaling $146,500 from the medical practice’s business bank accounts. RAYMOND negotiated the checks for cash at local bank branches where RAYMOND had personal accounts. He purposefully cashed the checks on different days and at different banks so that the banks would not file CTRs disclosing his receipt of cash.
The investigation also revealed that RAYMOND made material false representations to the doctor concerning the acquisition date and restoration of a painting in order to induce the doctor to buy and restore the painting. In 2009 and 2010, the doctor paid RAYMOND $20,000 for the painting plus $30,000 for restoration, authentication, and framing costs. The painting is a fake, and RAYMOND had bought and restored it before selling it to the doctor.
On November 27, 2012, RAYMOND and Dobrozensky traveled to a branch of Farmington Bank in Avon where RAYMOND told Dobrozensky to write checks in amounts below $10,000. Dobrozensky wrote two checks, one to herself for $9,900 and one to RAYMOND for $9,900. Dobrozensky then cashed the check payable to her and received $9,900 in cash, and RAYMOND cashed the check payable to him and received $9,900 in cash. Later, RAYMOND provided the $9,900 to Dobrozensky.
The investigation revealed that RAYMOND has not filed a tax return since at least 1986. RAYMOND has agreed to forfeit $10,000 related to his structuring activity.
On October 19, 2015, RAYMOND pleaded guilty to one count of structuring financial transactions.
On October 13, 2015, Dobrozensky pleaded guilty to tax and structuring charges. On January 22, 2016, she was sentenced to five months of imprisonment, five months of home confinement and a $3,000 fine.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation and Hartford Police Department. The case was prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Stamford Podiatrist Who Submitted False Claims is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that AMIRA MANTOURA, 53, of Greenwich, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to three years of probation, and a fine that will result in MANTOURA paying three times the amount of money she stole by submitting false claims to Medicare and other health insurance plans. MANTOURA also will be required to perform 200 hours of community service as part of her sentence.
On October 5, 2015, MANTOURA pleaded guilty to one count of making a false statement to the Medicare program.
According to court documents and statements made in court, MANTOURA, a Doctor of Podiatric Medicine, operates a podiatry practice at 95 Morgan Street in Stamford. As a podiatrist, she was fully aware and understood the procedure to perform a “nail avulsion” and she understood that a nail avulsion was a surgical procedure to treat an ingrown toenail. Between January 2009 and August 2013, MANTOURA knowingly submitted materially false claims to the Medicare program and to private insurance companies to obtain payment for a nail avulsion when she knew that she had not performed a nail avulsion. Rather than perform a nail avulsion, in most of these instances MANTOURA had merely provided her patients with routine foot care including clipping the patients’ toenails.
As a result of submitting false claims to the Medicare and Medicaid programs and private insurance companies, MANTOURA was paid approximately $206,000.
As part of her sentence, MANTOURA was required to pay approximately $64,000 in restitution to private health insurance plans. In a related civil settlement, MANTOURA paid $288,538.24 to the government in connection with her submission of false claims to the Medicare and Medicaid program, which was twice the amount of false claims MANTOURA submitted to those programs. As part of her sentence, MANTOURA was ordered to pay an additional $266,000 fine, which will result in MANTOURA paying a total of $618,000, or three times the amount she gained from her fraud.
MANTOURA is ordered to pay the restitution within seven days and to pay her fine within 90 days.
On October 1, 2015, MANTOURA was excluded from the Medicare program and will no longer be permitted to submit federal health care claims.
This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys David J. Sheldon and Anne F. Thidemann.
U.S. Attorney Daly encourages individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at (203) 777-6311 or. 1-800-HHS-TIPS.
One of Two Individuals Charged in Serial Armed Bank Extortion Scheme Pleads Guilty in Federal CourtRead the Press Release
KNOXVILLE, Tenn. – On Mar. 1, 2016, Brian Scott Witham, 45, of Waterville, Maine, pleaded guilty to charges contained in a December 2015, 15-count indictment involving armed bank extortions of the Y-12 Federal Credit Union in Oak Ridge, Tenn., SmartBank in Knoxville, Tenn., and Northeast Community Credit Union in Elizabethton, Tenn.
Additionally, as a part of his plea agreement, Witham agreed to plead guilty to similar charges from three other federal jurisdictions including the Western District of North Carolina, the Middle District of Pennsylvania and the District of Connecticut which he, the U.S. Attorneys and the federal judge all consented to transfer to U.S. District Court in the Eastern District of Tennessee. These charges include: being a felon in possession of a firearm in Haywood County, N.C.; armed robbery of an Ingles in Arden, N.C.; armed robbery of the Peoples Security Bank and Trust in Clarks Summit, Pa.; and attempted armed bank extortion of the Achieve Financial Credit Union in New Britain, Conn.
Sentencing for Witham is set for Aug. 17, 2016, in U.S. District Court in Knoxville.
The plea agreement, which is on file with U.S. District Court in Knoxville, contains detailed information regarding the crimes Witham admits to committing along with co-defendant Michael Anthony Benanti, 43, of Lake Harmony, Pa. Benanti is also charged in this case and is currently in custody awaiting trial currently scheduled for March 29, 2016.
Numerous law enforcement agencies were involved in this investigation. Tennessee agencies included: FBI Knoxville Resident Agency, along with the FBI Safe Streets Task Force; Knoxville Police Department; Knox County Sheriff’s Department; Johnson City Police Department; Carter County Police Department; Oak Ridge Police Department; and Elizabethton Police Department. North Carolina agencies included: FBI Asheville Resident Agency; North Carolina State Highway Patrol; North Caroline State Bureau of Investigation; Asheville Police Department; Maggie Valley Police Department; Waynesville Police Department; Haywood County Sheriff’s Office; and, Buncombe County Sheriff’s Office. Pennsylvania agencies included the FBI Harrisburg Resident Agency assisted by state and local law enforcement. Connecticut agencies included: FBI New Haven Resident Agency; Bristol Police Department; New Britain Police Department; Connecticut State Police; Farmington Police Department; and Berlin Police Department.
The following Assistant U.S. Attorneys were assigned to represent the United States in their various districts: Jacabed Rodriguez-Coss, District of Connecticut; Assistant U.S. Attorney John Gurganus, Middle District of Pennsylvania; and Assistant U.S. Attorney Don Gast; Western District of North Carolina. Assistant U.S. Attorneys David P. Lewen, Jr. and Steven H. Cook from the Eastern District of Tennessee represent the United States in this combined guilty plea.
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Woman Who Operated Large Scale Heroin Processing Mill in Hartford Pleads GuiltyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AMANDA GAMBARDELLA, 26, formerly of Hartford and Cheshire, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of possession with intent to distribute heroin.
This matter stems from an ongoing investigation being conducted by the Drug Enforcement Administration’s Hartford Task Force, which includes participants from the Hartford, Wethersfield, Bristol, East Hartford, Manchester, New Britain and Willimantic Police Departments.
According to court documents and statements made in court, the DEA Task Force received information that a drug trafficking organization was obtaining large quantities of heroin in New York City, transporting the drug to Connecticut in a vehicle equipped with a hidden compartment, and distributing it in the Hartford area. The investigation revealed that GAMBARDELLA was employed by the organization to store and package heroin at her apartment on Adelaide Street in Hartford, and that she had rented a storage unit in East Hartford on behalf of the organization.
On November 4, 2015, investigators conducted a court-authorized search of the East Hartford storage unit and seized approximately $795,990 in cash. On November 5, 2015, investigators searched the Adelaide Street apartment and seized a approximately 778 grams of heroin, as well as cutting agents, packaging materials and other paraphernalia associated with a large scale heroin processing mill. The seized heroin included more than 17,000 bags packaged for street sale and approximately 200 grams of unpackaged heroin.
GAMBARDELLA has been detained since her arrest on November 5, 2015.
Judge Arterton scheduled sentencing for May 23, 2016, at which time GAMBARDELLA faces a maximum term of imprisonment of 20 years.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Two Charged with Distributing Heroin Involved in Overdose DeathsRead 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 investigations into recent drug overdose deaths have resulted in federal heroin distribution charges against two men.
In unrelated cases, BRADLEY COMMERFORD, 20, of Derby, and REGINALD MILES, JR., also known as “Rocky,” 25, of Waterbury, are each charged with possession with intent to distribute, and distribution of, heroin.
“We are combatting a tragic opioid epidemic that is plaguing not only Connecticut but much of the country,” said U.S. Attorney Daly. “The U.S. Attorney’s Office is working closely with DEA and our state and local partners to actively investigate multiple overdose deaths. Our primary goal is to identify the source and makeup of the drugs involved. This is a very serious public health issue. We will continue to prioritize the prosecution of individuals who traffic narcotics that pose significant public safety concerns.”
“Anytime there is a loss of life involving a drug overdose it is a tragic event; but even more so, when the victims are young adults,” said DEA Special Agent in Charge Ferguson. “Those suffering from the disease of heroin addiction need access to treatment and recovery. But, those responsible for distributing these lethal drugs to the citizens of Connecticut need to be held responsible for their actions. DEA and its federal, state, and local partners are committed to bringing to justice those that distribute this poison.”
According the criminal complaint charging COMMERFORD, the Drug Enforcement Administration’s New Haven Tactical Diversion Squad is investigating two heroin overdoses that occurred in Shelton on February 16, 2016 and one that occurred in Derby on February 17, 2016. The Derby overdose resulted in the death of a 23-year-old male. The investigation, which includes victim and witness interviews, as well as analysis of numerous text messages of the decedent’s phone, identified COMMERFORD as the heroin source of supply in all three overdose cases.
The State of Connecticut Chief Medical Examiner has not yet issued a toxicology report on the decedent.
COMMERFORD has been detained in state custody since February 18, 2016.
According to the criminal complaint charging MILES, on November 19, 2015, a 22-year-old male died from an apparent heroin overdose at a residence in Woodbridge. The investigation revealed that shortly before the victim’s overdose, the victim and two other individuals purchased heroin from MILES in Waterbury.
According to the State of Connecticut Chief Medical Examiner, the victim’s death was determined to be acute intoxication due to the combined effects of heroin and Alprazolam (a generic form of Xanax).
MILES has been detained in federal custody since his arrest on January 22, 2016. He has a bond hearing scheduled for March 1.
The charge of possession with intent to distribute, and distribution of, heroin carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
These investigations are being conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, with the assistance of the Derby, Shelton, Monroe, Middlebury and Woodbridge Police Departments. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments. These cases are being prosecuted by Assistant U.S. Attorney Robert M. Spector.
New Haven Man Sentenced to Prison for Bribing West Haven Housing Authority OfficialRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANDREW ROSS, 58, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for paying nearly $350,000 in bribes to the former executive director of the West Haven Housing Authority in exchange for government contracts and business.
According to court documents and statements made in court, Michael Siwek was the executive director of the West Haven Housing Authority (“WHHA”), an agency that received federal funding. As part of his duties, Siwek had substantial discretion over awarding WHHA business and contracts. Siwek also owned and controlled Four Star Development Company, LLC (“Four Star”). Between January 2007 and February 2012, ROSS, who controlled business entities that received WHHA business and contracts for financial and consulting services, made approximately $349,500 in corrupt payments to Siwek and Four Star.
In total, Siwek received approximately $1.5 million in bribes from individuals who received business with the WHHA and the entities that the WHHA controlled.
ROSS was remanded to custody at the conclusion of today’s court proceeding.
A hearing to determine restitution is scheduled for May 19, 2016.
On September 3, 2015, ROSS pleaded guilty to one count of conspiracy to commit bribery in connection with a program receiving federal funds.
On September 4, 2014, Siwek pleaded guilty to related charges. He awaits sentencing.
This matter has been investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah Karwan.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Hartford Man Sentenced to 5 Years in Prison for Gang-Related Narcotics TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TAFARIE GREEN, also known as “Farie,” 26, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 60 months of imprisonment, followed by four years of supervised release, for gang-related narcotics trafficking.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of WestHell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” as the leader of the West Hell street gang who, along with GREEN and other associates, distributed crack cocaine in the Westland Street area of Hartford.
GREEN has been detained since April 2014. On April 24, 2015, he pleaded guilty to one count of conspiracy to distribute 28 grams or more of cocaine base (“crack”).
Twenty-five individuals were charged as a result of the investigation. One defendant was convicted after trial and 23 defendants pleaded guilty to various offenses. One defendant was shot and killed while his case was pending. Scott pleaded guilty and awaits sentencing.
GREEN’s criminal history includes convictions for assault, robbery, attempted burglary and criminal possession of a firearm. While previously incarcerated, he received disciplinary tickets for fighting and assault of a guard.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Third Defendant Pleads Guilty in Mortgage Loan Modification SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SERJ GEUTSSOYAN, also known as “Anthony Kirk,” 33, of Santa Ana, Calif., pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to conspiring to defraud homeowners across the United States who were seeking mortgage loan modifications.
According to court documents and statements made in court, GEUTSSOYAN and others jointly operated a series of California-based companies that falsely purported to provide home mortgage loan modifications and other consumer debt relief services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees. The defendants did business, at various times, as “First Choice Financial Group, Inc.,” “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” “Nation Star Financial,” and “Nation Star Fin Group.”
Acting as representatives of these entities, GEUTSSOYAN and his co-conspirators cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans. The defendants charged homeowners fees that typically ranged from approximately $2,500 to $4,300 for their services. To induce homeowners to pay these fees, the defendants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.
In fact, the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners had not qualified for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request. Few homeowners ever received any type of mortgage loan modification through the defendants’ companies, and few homeowners received refunds of their fees.
GEUTSSOYAN and others involved in the scheme used pseudonyms and periodically changed their business and operating names to evade detection. The defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants and their co-conspirators had set up in states other than California.
On January 21, 2016, a grand jury in New Haven returned an indictment charging GEUTSSOYAN and six other California residents with conspiracy and fraud offenses related to this scheme. The defendants were arrested on January 26.
GEUTSSOYAN pleaded guilty to one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years. He also has agreed to pay restitution of approximately $3 million. Sentencing is scheduled for May 19, 2016.
Two other defendants, Mehdi Moarefian, a.k.a. “Michael Miller,” 36, and Daniel Shiau, a.k.a. “Scott Decker,” 30, both of Irvine, Calif., pleaded guilty to the same charge last week.
To date, investigators have seized approximately $350,000 from various bank accounts, approximately $362,000 from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 458 Italia.
This matter is being investigated by the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Housing Finance Agency – Office of Inspector General, and Federal Bureau of Investigation, with assistance from the Oklahoma Attorney General’s Office.
The case is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Sarah P. Karwan.
Enfield Man Sentenced to More Than 8 Years in Federal Prison for Committing 3 Armed Bank RobberiesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID M. JOHNSON, 28, of Enfield, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 97 months of imprisonment, followed by three years of supervised release, for committing three armed bank robberies.
According to court documents and statements made in court, on January 10, 2015, at approximately 9:15 a.m., two masked men, at least one of whom brandished a firearm, entered the First Niagara Bank at 2133 Poquonock Avenue in Windsor. The two men jumped over the teller counter, directed two bank employees to the bank vault and ordered one of the employees to open the vault. Once inside the vault, the men ordered the bank employees to the ground and took cash from the vault. The men also ordered bank employees to open teller drawers and proceeded to take an additional amount of money from the drawers. During the robbery, a customer entered the bank. One of the masked men pointed a gun at the customer, ordered him to the ground and told him not to look up. After exiting the bank, the men confronted a second customer who was about to enter the bank. One of the men pointed a gun at the customer and stated “If you say anything, we’ll shoot you….”
While investigating the robbery, Windsor Police were contacted by East Windsor Police who were investigating similar bank and credit union robberies in East Windsor and Glastonbury. East Windsor Police had recently obtained an arrest warrant for JOHNSON with respect to the robbery of the Nutmeg State Federal Credit Union in East Windsor on July 21, 2014.
After further investigation, on January 10 at approximately 9:45 p.m., law enforcement executed a search warrant at JOHNSON’s Enfield residence and found a total of $81,946 in cash, most of which was bound by First Niagara Bank strapping that was initialed by one of victim bank employees. Investigators also found and seized other items allegedly used during the robbery earlier that day, as well as a .380 caliber semi-automatic handgun with a fully-loaded magazine.
JOHNSON has been detained since his arrest on January 10, 2015.
On August 31, 2015, JOHNSON pleaded guilty to one count of armed bank robbery and admitted that he committed the robbery in Windsor on January 10, 2015, and also the armed robberies of the Nutmeg State Federal Credit Union in East Windsor on July 21, 2014, and the Nutmeg State Credit Union in Glastonbury on November 7, 2014, stealing $109,166 and $84,145, respectively.
JOHNSON was ordered to pay restitution in the amount of $193,311.
On May 29, 2015, Odain J. Johnson, of Hartford, pleaded guilty to one count of armed bank robbery stemming from his role in the Windsor bank robbery. On October 27, 2015, he was sentenced to 70 months of imprisonment.
This matter was investigated by the FBI and the Windsor, East Windsor and Glastonbury Police Departments, with the assistance of the Enfield Police Department, the Capital Region Emergency Services Team (CREST) and the Maine State Police. The case was prosecuted by Assistant U.S. Attorneys Deborah R. Slater and Douglas P. Morabito.
New York Man Sentenced to 14 Years in Federal Prison for Week-Long Armed Robbery SpreeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANCIS MANIGAULT, 42, of New York, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 168 months of imprisonment, followed by five years of supervised release, for committing five armed robberies during one week last summer.
According to court documents and statements made in court, MANIGAULT, armed with and brandishing a firearm, robbed George’s Market at 175 Pequonnock Street in Bridgeport on June 27, 2015; B & M Grocery and Deli at 942 East Main Street in Bridgeport on June 28; Rodriguez Market at 384 Brooks Street in Bridgeport on June 29; a Subway restaurant at 1552 Wood Avenue in Bridgeport on June 29, and West Main Street Grocery at 495 West Main Street in Stamford on July 1.
After the July 1 robbery, Stamford Police, responding to 911 calls, encountered MANIGAULT on Virgil Street and observed him throwing a handgun to the ground. He was apprehended shortly thereafter and placed under arrest. Officers then recovered a loaded 40mm handgun that MANIGAULT had discarded. The firearm was previously reported stolen in North Carolina.
MANIGAULT has been detained since his arrest. On October 19, 2015, he pleaded guilty to two counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence.
This investigation was conducted by the Federal Bureau of Investigation, the Stamford Police Department and the Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorney Amy C. Brown.
Easton Man Indicted for Scheme to Defraud Distressed Homeowners, Evading TaxesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport has returned an indictment charging TIMOTHY W. BURKE, also known as “Bill Burke,” “William Burke,” “Kerry Saunders,” “Pat Riley,” “Jim Caldwell,” “Jim Saunders,” “Tom Morrisey,” “Jimmy,” “Phil Burke,” “Phil,” “Burt,” “James Burke,” and “M. Soler,” 64, of Easton, with fraud, tax, money laundering and identity theft offenses stemming from a long-running fraud scheme that targeted distressed homeowners.
The 10-count indictment, which was returned on February 10, was unsealed today. BURKE appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the charges.
BURKE has been detained since November 19, 2015, when he was arrested on a criminal complaint.
According to the indictment, since at least April 2008 and continuing to at least November 19, 2015, BURKE engaged in a scheme to defraud individuals, mortgage lenders and the U.S. Department of Housing and Urban Development (HUD) by falsely representing to homeowners who were in, or facing, foreclosure on their homes that he would purchase their homes and pay off their mortgages. The distressed homeowners agreed to sign various documents, including quitclaim deeds, indemnification agreements, management agreements and third party authorization letters, which BURKE presented to them on the understanding that, by signing the documents, they would be able to walk away from their homes without the burdens of their mortgage or other costs associated with home ownership. BURKE also told homeowners that the process of negotiating with the lenders can take time and that, in the meantime, to ignore any notices regarding foreclosure. After he gained control of these houses, BURKE rented out the properties to tenants by advertising the properties on craigslist.com and other means and falsely representing to tenants that BURKE owned the property.
The indictment further alleges that BURKE or one of his agents then collected rent from tenants, in person, and BURKE used the funds for his own benefit. BURKE failed to negotiate with the homeowners’ mortgage lender or pay expenses associated with the home, including the homeowner’s mortgages and property taxes, and he failed to pay any rental income he was collecting to the homeowners. Many of the properties BURKE purportedly purchased were ultimately foreclosed upon by the mortgage lender.
It is alleged that BURKE undertook extensive efforts to disguise his true identity from his victims through the use of multiple aliases and business entities, and to conceal the sources of and expenditures from his criminal proceeds. BURKE is associated with multiple entities, including Quality Asset Management Services, LLC; Birmingham Investments, LLC; the Birmingham Group of Companies; Saunders Associates; New Haven Investments; Realty Partners Group; Preston Associates II; Landlord Maintenance Services, LLC; Turnkey Construction Services LLC; The Complete Handyman, LLC; and Woodbridge Associates. He is also alleged to have used the name of another individual in connection with his fraud without that person’s knowledge or consent.
The indictment also alleges that BURKE evaded paying more than $1 million in federal taxes.
The indictment further alleges that in approximately 2002, BURKE was indicted by a federal grand jury in New Jersey on charges of conspiracy, mail fraud, and equity skimming. BURKE subsequently pleaded guilty to conspiracy to commit both equity skimming and mail fraud, and he was sentenced to prison. BURKE was released from federal custody in approximately August 2007 and began his federal supervised release at that time. One of the special conditions of BURKE’s supervised release was that he refrain from employment in the real estate business or mortgage industry.
The indictment charges BURKE with four counts of mail fraud, one count of wire fraud, one count of aggravated identity theft, one count of tax evasion, and three counts of money laundering. If convicted, BURKE faces a maximum term of imprisonment of 20 years on each count of mail fraud, wire fraud, and money laundering; a maximum term of imprisonment of five years for tax evasion, and mandatory, consecutive two-year term of imprisonment for aggravated identity theft.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Individuals who believe they have been victimized by this alleged scheme and citizens with information that will be helpful to this ongoing investigation are encouraged to call 860-240-9735.
This matter is being investigated by Internal Revenue Service – Criminal Investigation Division, the U.S. Department of Housing and Urban Development – Office of Inspector General, and U.S. Postal Inspection Service, with the critical assistance of the Middletown, Plainville, Easton and Coventry Police Departments, the Connecticut State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case is being prosecuted by Assistant U.S. Attorney David T. Huang.