District of Connecticut
Press releases recorded for this federal judicial district.
Jewett City Man Sentenced to 6 Years in Federal Prison for Illegally Acquiring Guns and AmmunitionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRIAN FLETCHER, 35, of Jewett City, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 72months of imprisonment, followed by three years of supervised release, for the illegal straw purchase of a .308 rifle and his unlawful possession of firearms and ammunition.
According to court documents and statements made in court, on November 22, 2013, a court-authorized search of FLETCHER’s residence revealed a Savage Arms, Axis XP .308 rifle, a Smith & Wesson .40 caliber VE Handgun, a .38 caliber Smith & Wesson Model 60 revolver, as well as multiple rounds of ammunition and weapon magazines.
The investigation revealed that the .308 rifle was purchased in January 2013 by another individual at a sporting goods store in Lisbon. FLETCHER engaged in the straw purchase and financed the transaction, which was captured on in-store surveillance video.
The .40 caliber handgun had been stolen from an owner in Oakdale, and the .38 caliber revolver had been stolen from an owner in Waterford.
The investigation further revealed that on multiple occasions in 2013, FLETCHER made unlawful efforts to obtain, and in some instances he successfully obtained, multiple rounds of different kinds of ammunition.
FLETCHER had previously been convicted of felonies in the Superior Court of the State of Connecticut, including accessory to robbery in the first degree, hindering prosecution in the second degree, possession of a pistol without a permit, and attempted assault in the first degree.
It is a violation of federal law to knowingly possess a stolen firearm, or for a convicted felon to possess a firearm or ammunition that has moved in interstate or foreign commerce.
FLETCHER has been detained since his arrest on November 22, 2013. On April 2, 2015, he pleaded guilty to one count of possession of firearms by a convicted felon.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Stephen B. Reynolds. The Norwich Police Department and Senior Assistant State’s Attorney Paul Narducci of the Connecticut State’s Attorney’s Office in New London assisted the investigation and prosecution of this matter.
Attorney Who Stole $1.8 Million from Oxford Woman's Estate Sentenced to 45 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PETER M. CLARK, 58, of Woodbury, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 45 months of imprisonment, followed by three years of supervised release, for stealing more than $1.8 million from the estate of an Oxford woman who died in 2010.
According to court documents and statements made in court, Miriam S. Strong of Oxford died on July 2, 2010. At the time of her death, Strong had a will, which left money, property and other items to a list of individuals, the Town of Oxford, the State of Connecticut and several religious and other charitable entities. The will also called for the creation of a scholarship fund for college-bound students from Oxford. CLARK drafted the will as Strong’s attorney and served as a witness to Strong’s execution of the will. The will named CLARK and another individual as co-executors. The investigation revealed that, during the course of the administration of the will, CLARK took more than $1.8 million from Strong’s estate for his own use.
CLARK will be ordered to make restitution to the Connecticut Client Security Fund, which has reimbursed Miriam Strong’s estate.
CLARK was arrested on a federal criminal complaint on May 21, 2015. On October 19, 2015, he pleaded guilty to one count of mail fraud.
CLARK, who is released on a $500,000 bond, was ordered to report to prison on February 24, 2016.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut State Police – Western District Major Crime Squad. The case was prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
Connecticut Medical Equipment Company Pays $600,000 to Settle False Claims Act AllegationsRead the Press Release
United States Attorney Deirdre M. Daly and Connecticut Attorney General George Jepsen today announced that J&L MEDICAL SERVICES, LLC (“J&L MEDICAL”) has entered into a civil settlement agreement with the federal and state governments in which it will pay $600,000 to resolve allegations that it violated the federal and state False Claims Acts.
J&L MEDICAL is a durable medical equipment company located in Middlebury, Connecticut. As part of its business, J&L MEDICAL provides Continuous Positive Airway Pressure (CPAP) and Bilevel Positive Airway Pressure (BiPAP) devices and accessories to Medicare and Medicaid beneficiaries who have been diagnosed with obstructive sleep apnea.
It is alleged that J&L MEDICAL regularly utilized the services of unlicensed technicians to provide respiratory therapy services to Medicare and Medicaid beneficiaries, including setting up CPAP and BiPAP machines, fitting the patients with the masks used with those machines, and educating the patients about the use of the machines.
Under Connecticut law, the practice of respiratory therapy is a licensed activity. It is alleged that the respiratory therapy services in question could only be legally performed by licensed respiratory therapists.
To resolve the allegations under the federal and state False Claims Acts, J&L MEDICAL has agreed to pay $600,000, which covers conduct occurring from January 1, 2008 through May 15, 2013.
As part of the settlement, J&L MEDICAL also agreed to implement a Compliance Program intended to prevent and/or detect fraud, waste, and abuse in claims submitted by the company to the Connecticut Medicaid program.
A complaint against J&L MEDICAL was filed in the U.S. District Court in Connecticut under the qui tam, or whistleblower, provisions of the both the federal and state False Claims Acts. The relator (whistleblower), John Hart, a former employee of J&L MEDICAL and a licensed respiratory therapist, will receive a share of the proceeds of the settlement in the amount of $102,000.
The whistleblower provisions of both the federal and state False Claims Acts provide that the whistleblower is entitled to receive a percentage of the proceeds of any judgment or settlement recovered by the government.
“Health care providers must utilize properly licensed individuals to treat Medicare and Medicaid patients, and the failure to do will have serious consequences,” stated U.S. Attorney Daly. “The U.S. Attorney’s office is committed to vigorously pursuing health care providers who submit false or fraudulent claims to federal health care programs.”
“My office is committed to protecting Connecticut’s healthcare programs – as well as the taxpayers who fund them – from fraud,” said Attorney General Jepsen. “By bringing state False Claims Act cases such as this, we recover funds obtained through fraud and deter others from attempting similar schemes. I appreciate the continued coordination with our state and federal law enforcement partners to ensure that our most vulnerable citizens and our taxpayer interests are protected.”
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and Auditor Kevin Saunders, and by Assistant Attorney General Robert B. Teitelman, and Forensic Fraud Examiners Larry Marini and David Bouchard, of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
One Man Sentenced, another Pleads Guilty, in Steroid Manufacturing and Distribution ConspiracyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JASON CHICKOS, 46, of Bridgeport, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to two years of probation for his role in a steroid manufacturing and distribution ring. Judge Chatigny also ordered CHICKOS to perform 120 hours of community service and pay a $1000 fine. Another member of the conspiracy, ALEX KENYHERCZ, 29, of Ansonia, also pleaded guilty today in Hartford federal court.
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.
CHICKOS and KENYHERCZ purchased anabolic steroids from Santucci and distributed them to others. KENYHERCZ also illegally distributed prescription medication, including Roxicodone, Oxycodone, Suboxone and Opana.
At the time of the offense, CHICKOS was employed as a civilian dispatcher with the Newtown Police Department.
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 four long guns.
On October 19, 2015, CHICKOS pleaded guilty to one count of conspiracy to distribute anabolic steroids.
KENYHERCZ pleaded guilty to one count of conspiracy to distribute oxycodone. He is scheduled to be sentenced by Judge Chatigny on April 14, 2016, at which time he faces a maximum term of imprisonment of 20 years.
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.
Philadelphia Man Admits Delivering Contraband to Inmates at FCI DanburyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation in New Haven, today announced that DANA ERWIN TAYLOR, Jr., 24, of Philadelphia, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to two counts of providing or attempting to provide contraband to an inmate of a federal prison.
According to court documents and statements made in court, on two occasions in 2015, TAYLOR traveled to the Federal Correctional Institution in Danbury (FCI Danbury) for the purpose of introducing prohibited contraband into the facility for use by one or more inmates.
During the early morning hours of January 3, 2015, TAYLOR threw several bundles of contraband containing approximately 12 cell phones, along with batteries and chargers, over the perimeter fence of the FCI Danbury compound. The bundles were wrapped in green camouflage fabric and clear tape to provide protection from the elements.
During the early morning hours of August 25, 2015, TAYLOR was stopped on the FCI Danbury grounds, next to the fence, in possession of a backpack containing illegal and prohibited contraband, including 15 cell phones, along with batteries and chargers, eight bundles of synthetic marijuana, tobacco and other items. The items, which were in bundles wrapped in green fabric and clear tape, were intended for one or more inmates in the FCI Danbury.
Judge Shea scheduled sentencing for May 18, 2016, at which time TAYLOR faces a maximum term of imprisonment of two years and a fine of up to $200,000.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Anastasia King.
New York Man Receives Federal Prison Time for Extortion SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ERNEST SYKU, 45, of the Bronx, N.Y., was sentenced yesterday by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for operating an extortion scheme.
According to court documents and statements made in court, SYKU and Robert Francella threatened a Connecticut resident with violence in order to induce the victim to pay an alleged $240,000 debt. SYKU claimed that this debt was owed to SYKU’s deceased uncle, even though the victim stated the debt had been repaid. On one occasion, SYKU told the victim that SYKU was “the one who can break you in many pieces.” SYKU further told the victim that the victim was “doomed” if the victim did not bring SYKU the money. On another occasion, SYKU told the victim that he “crushes everybody’s head who gets in my way.” SYKU also provided his cellular telephone to Francella, who threatened “to cut the head” off the victim. SYKU had promised Francella a portion of any monies collected in order to induce Francella’s participation in the extortion scheme.
At sentencing, the victim stated that he and his spouse were fearful for their family’s safety, particularly because SYKU made references to the location of their home.
SYKU and Francella were arrested on March 13, 2014. After he was arrested, SYKU confessed to law enforcement that he had hired and directed Francella to scare the victim into paying the alleged debt.
On April 27, 2015, SYKU pleaded guilty to one count of attempted collection of extension of credit by extortionate means.
Francella, of Yonkers, N.Y., pleaded guilty on November 17, 2014. On June 1, 2015, he was sentenced to approximately 15 months of imprisonment, time already served, and one year of supervised release.
This matter was investigated by the FBI Fairfield County Organized Crime Task Force and the Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorneys Hal Chen and Heather Cherry.
Indictment Charges Waterbury Man with Using Internet to Entice Minors, Collect Child PornographyRead 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 yesterday charging JOHN EASTMAN, 48, of Waterbury, with one count of coercion and enticement of minors and one count of possession of child pornography.
The indictment alleges that between June and November 2012, EASTMAN engaged in video chats with minors over the Internet using his computer and online video chatting services such as Skype. During these video chats, EASTMAN enticed the minors to engage in sexually explicit conduct, which EASTMAN recorded and/or photographed and then saved on his computer. In order to deceive and entice the minors, EASTMAN posed as famous singers and musicians that are popular to teenagers.
The indictment further alleges that EASTMAN viewed and downloaded over the Internet other images and videos of child pornography.
EASTMAN has been in state custody since May 2013 when he was arrested on related state charges.
If convicted of coercion and enticement of minors, EASTMAN faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. If convicted of possession of child pornography, he faces a mandatory term of imprisonment of 10 years and a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Two Public Employees Who Evaded Paying Taxes Are SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that two public employees who previously pleaded guilty to tax evasion offenses have been sentenced in Hartford federal court. Yesterday, U.S. District Judge Alvin W. Thompson sentenced TROY HESTER, 43, of Hartford, to 10 months of imprisonment, followed by three years of supervised release. Today, Judge Thompson sentenced MICHAEL CARTER, 52, of New Haven, to four years of probation, the first six months of which CARTER must serve in home confinement under electronic monitoring.
This matter stems from an Internal Revenue Service investigation into State of Connecticut employees and others who had little or no federal withholding taken out of their paychecks and who failed to file income tax returns. The investigation revealed that certain individuals submitted fraudulent W-4 forms claiming numerous exemptions, or that they were exempt, and had little or no money withheld from their wages.
According to court documents and statements made in court, during the 2008 through 2013 tax years, HESTER, while employed by the Metropolitan District Commission in Hartford, paid little or no federal income taxes on approximately $438,877 in income he received, resulting in a federal tax loss of approximately $70,480. HESTER had submitted a Form W-4 claiming that he was “exempt” from federal withholding.
HESTER was ordered to pay more than $79,000 in back taxes and interest.
The investigation also revealed that HESTER failed to pay more than $24,000 in state taxes from 2007 through 2012.
CARTER, who was employed by the Connecticut Department of Mental Health and Addiction Services and worked as a nurse at the Connecticut Valley Hospital in Middletown, submitted a false Form W-4 to the state indicating that he had 99 exemptions and was exempt from tax withholding. As a result, no money was withheld from his wages. During the 2010 through 2012 tax years, CARTER paid no federal income taxes on more than $282,000 in income he received, resulting in a federal tax loss of $53,344.
CARTER was ordered to pay more than $56,000 in back taxes and interest.
This ongoing investigation is being conducted by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Susan Wines.
Hartford Man Sentenced to 4 Years in Federal Prison for Illegally Possessing FirearmsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JASON WATSON, 28, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 48 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms. WATSON also was ordered to perform 100 hours of community service while on supervised release.
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 WATSON and other associates distributed crack cocaine in the Westland Street area of Hartford.
On April 24, 2014, a grand jury in Hartford returned a 52-count indictment charging 25 members and associates of the WestHell Street Gang, including Scott and WATSON, with narcotics distribution offenses. On April 30, 2014, law enforcement executed federal arrest warrants of the charged defendants and WATSON was arrested at his Hartford residence. On that date, a search of WATSON’s residence revealed a .22 caliber pistol, a .44 caliber revolver, a 9 millimeter pistol and assorted ammunition. Two of the three firearms were manufactured outside of Connecticut.
Prior to April 30, 2014, WATSON had been convicted of multiple felony offenses, and he was on state special parole at the time of his federal arrest. 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.
WATSON has been detained since his arrest. On April 21, 2015, he pleaded guilty to one count of possession of firearms by a previously convicted felon.
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 Office of the Chief State’s Attorney is also assisting with this ongoing investigation.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Hartford Man Found with More Than a Kilo of Heroin Pleads GuiltyRead 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, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of possession with intent to distribute 100 grams or more of heroin.
According to court documents and statements made in court, SUAREZ was arrested on September 18, 2015, after investigators with the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force found him in possession of approximately 1,250 grams of heroin, which was hidden both in his truck and in a residence he utilized.
Judge Shea scheduled sentencing for April 5, 2016, at which time SUAREZ faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
SUAREZ has been detained since his arrest.
This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and Gabriel J. Vidoni.
Former Norwalk Resident Sentenced to 70 Months in Prison for Traffcking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that OMAR ANDRADE, 29, a citizen of Mexico last residing in Norwalk, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 70 months of imprisonment, followed by four years of supervised release, for trafficking heroin.
According to court documents and statements made in court, this matter stems from an investigation by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Norwalk Police Department into suspected cocaine and heroin distribution by ANDRADE. In September 2014, ANDRADE agreed to provide one kilogram of heroin to a DEA Task Force officer acting in an undercover capacity. ANDRADE, Joel A. Estrella-Disla and Wilmer Antonio Gomez-Rodriguez were arrested on September 30, 2014, after they delivered approximately one kilogram of heroin to a pre-arranged location in Norwalk.
ANDRADE has been detained since his arrest. On August 24, 2015, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
ANDRADE faces immigration proceedings after he serves his prison term.
On August 24, 2015, Estrella-Disla pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin. On September 10, 2015, a jury found Gomez-Rodriguez guilty of one count of conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin, and one count of possession with intent to distribute, and distribution of, 100 grams or more of heroin. Both await sentencing.
This case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
East Hartford Man Sentenced to 5 Years in Federal Prison for Trafficking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that BRAYAN GOMEZ, 26, of East Hartford, was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 60 months of imprisonment, followed by three years of supervised release, for trafficking heroin.
According to court documents and statements made in court, the Drug Enforcement Administration’s Hartford Task Force initiated an investigation into a large-scale heroin trafficking organization in Hartford that was being operated by a close associate of GOMEZ. In March 2014, the DEA Task Force received information that GOMEZ’s associate was in possession of a large quantity of heroin.
On March 20, 2014, investigators observed GOMEZ leave his former residence on Sisson Avenue in Hartford, drive to his associate’s residence on Prospect Street in East Hartford and enter the residence. A short time later, GOMEZ drove a separate vehicle away from the East Hartford residence to a hotel in East Hartford, and then entered the hotel. After approximately 20 minutes, GOMEZ walked out of the hotel with a large duffel bag that he did not have with him when he entered the hotel. He placed the bag in the trunk of his vehicle and then drove away.
Investigators conducted a motor vehicle stop of the vehicle on Prospect Street in East Hartford. After GOMEZ gave his consent to a search of the vehicle, investigators removed the duffel bag from the trunk and seized 99.8 grams of raw heroin and 13,317 bags of heroin, packaged for street sale, containing 278.8 grams of heroin. In addition, investigators seized more than 25,000 empty bags used for packaging heroin, as well as other items used in the processing and packaging of heroin.
On September 14, 2015, GOMEZ pleaded guilty to one count of possession with intent to distribute 100 grams or more of heroin.
The DEA Hartford Task Force includes participants from the Bristol, East Hartford, Hartford, Manchester, New Britain, Newington and Wethersfield Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
New Haven Man Sentenced to 3 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that TOMMY BATTLE, 35, of New Haven, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 36 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on April 22, 2015, a search was conducted at the residence of BATTLE, who was a parolee. During the search, a parole officer discovered a 9mm semi-automatic handgun, which contained a magazine that held 10 9mm rounds. The firearm was manufactured outside of the U.S. and was previously reported stolen out of the State of Virginia.
BATTLE’s criminal history includes multiple felony convictions, including a conviction for criminal possession of a weapon. He had been released from state incarceration approximately two months prior to the search of his residence.
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.
BATTLE has been detained since his arrest on April 22, 2015. On October 1, 2015, he pleaded guilty to one count of unlawful possession of a firearm by a 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. Attorneys Jennifer Laraia and Anthony Kaplan.
Hartford Man Sentenced to More Than 17 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 RASHAUD JONES, also known as “Buck,” 33, of Hartford and Windsor, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 211 months of imprisonment, followed by five years of supervised release. On March 2, 2015, a jury found JONES guilty of multiple narcotics and firearm offenses.
According to the evidence disclosed during the trial, this matter stems from a joint investigation led by the Drug Enforcement Administration’s Hartford Task Force. Investigators had developed information that JONES was dealing extremely large quantities of crack cocaine out of apartments he maintained on Evergreen Avenue and Westland Street in Hartford.
On December 18, 2012, investigators conducted a motor vehicle stop of JONES and seized more than $9,000 in cash, three cellular telephones and other evidence. Investigators then conducted searches of JONES’s apartment at 232 Westland Street in Hartford and a car parked at the residence and seized approximately 935 grams of crack cocaine, approximately 635 grams of powder cocaine, narcotics packaging material, a loaded .22 Taurus revolver, a 9mm High Point pistol, a Ruger 345 .45 caliber firearm, a loaded .45 caliber magazine, a loaded .9mm magazine and additional ammunition.
JONES was found guilty of one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”), one count of possession with intent to distribute 280 grams or more of cocaine base, one count of possession with intent to distribute 500 grams or more of cocaine, one count of possession with intent to distribute and distribution of 28 grams or more of cocaine base, possession of a firearm by a previously convicted felon, possession of a firearm in furtherance of a drug trafficking crime, and possession of ammunition by a previously convicted felon.
JONES’s criminal history includes five felony narcotics convictions.
This matter was investigated by the Drug Enforcement Administration’s Hartford Task Force, the Hartford Police Department and the Bristol Police Department. The case was prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone and Peter D. Markle.
Georgia Woman Sentenced to 51 Months in Prison for Unemployment Benefits Theft SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that VICKY SUE COHRAN, 53, of Temple, Georgia, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 51 months of imprisonment, followed by three years of supervised release, for stealing numerous identities while operating a “fictitious employer scheme” that defrauded state unemployment insurance programs of approximately $125,000.
According to court documents and statements made in court, state unemployment insurance programs use employee wages as reported by employers to determine an employee’s benefit amount when the employee files a valid claim for benefits. COHRAN, with the assistance of her two sons, utilized several state unemployment insurance program websites to register businesses that had no actual employees, business operations or normal business expenses. COHRAN and her sons then created and submitted fictitious wage reports that used names and identifying information of individuals without their knowledge. COHRAN and her sons then posed as fictitious employees to file claims for unemployment benefits.
Through this scheme, COHRAN used the names and identifying information of approximately 27 individuals to steal a total of $120,214 from the unemployment insurance programs of Connecticut, Massachusetts, Washington, Minnesota, Pennsylvania, Rhode Island and New Jersey.
The scheme was uncovered shortly after COHRAN registered a fictitious business with the Connecticut Department of Labor in September 2014. In November 2014, three purported employees of the fictitious business filed claims for unemployment benefits with the Connecticut Department of Labor.
COHRAN was ordered to pay full restitution.
On August 11, 2015, COHRAN pleaded guilty to one count of conspiracy to commit wire fraud, one count of aggravated identity theft and one count of misuse of a social security number.
Also today, Christopher Cohran, 26, of Temple, Georgia, waived his right to indictment and pleaded guilty in Hartford federal court to one count of conspiracy to commit wire fraud, a charge that carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced on March 30, 2016. Nathan Cohran, 30, of Temple, is scheduled to plead guilty to the same charge tomorrow.
This investigation is being conducted by the Social Security Administration – Office of Inspector General, U.S. Department of Labor – Office of Inspector General, U.S. Postal Inspection Service, Office of the Chief State’s Attorney, Connecticut Department of Labor, Winter Park (Fla.) Police Department, Pinellas County (Fla.) Sheriff’s Department, Villa Rica (Ga.) Police Department, Temple (Ga.) Police Department and Carroll County (Ga.) Sheriff’s Department.
The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Trumbull Man Sentenced to Prison for Role in Mortgage Fraud SchemeRead the Press Release
The United States Attorney for the District of Connecticut announced that MOHAMMED N. ISLAM, also known as “Tanveer,” 39, of Trumbull, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 14 months of imprisonment, followed by three years of supervised release, for participating in a mortgage fraud scheme that involved dozens of properties in Fairfield County.
According to court documents and statements made in court, between 2006 and 2013, ISLAM participated in a mortgage fraud conspiracy that involved the purchase of numerous single and multi-family properties, primarily in Bridgeport, Norwalk and Stamford. During the scheme, ISLAM and his co-conspirators provided materially false information to mortgage lenders, including false verifications of mortgage applicants’ income, false verifications of down payments for real estate transactions and false HUD-1 Forms.
ISLAM recruited and directed the actions of several “straw buyers,” or individuals who fraudulently applied for and obtained mortgage loans but did not have an actual financial investment or stake in the mortgage loan transactions. In fact, ISLAM was the intended owner of the property, managed the property and collected all of the rents from the property. Many of these properties ended up in foreclosure, or in short sale transactions.
Through this scheme, lenders suffered losses of more than $8 million.
ISLAM was ordered to pay restitution in the amount of $5,141,817.
On March 12, 2014, ISLAM pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud.
This investigation is being conducted by the Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General. The criminal case was prosecuted by Assistant U.S. Attorneys Heather Cherry and Avi Perry, and the parallel civil forfeiture cases are being handled by Assistant U.S. Attorney Julie G. Turbert.
U.S. Attorney's Office Settles ADA Case with Connecticut Department on AgingRead 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 with Connecticut’s State Department on Aging to ensure equal access for individuals with disabilities, pursuant to the Americans with Disabilities Act (“ADA”).
The agreement resolves an ADA complaint filed by an individual who is deaf, alleging that the State Department on Aging failed to provide effective communication during certain programs and meetings by failing to make available sign language interpreters or appropriate auxiliary aids. The State Department on Aging is working cooperatively with the Department of Justice to develop and amend its policies and practices to ensure compliance with the ADA and the Department of Justice’s implementing regulations.
“Individuals who have disabilities must not be denied equal access to the services offered by the State of Connecticut due to their disability,” said U.S. Attorney Daly. “The State Department on Aging has fully cooperated with our investigation, which confirms the Agency’s commitment to ensure equal access to its program and services for all customers including those with disabilities. We commend the Department for voluntarily agreeing to enter this settlement agreement and ensuring effective communication with persons who are deaf or hard of hearing.”
The ADA requires “public entities,” including state and municipal agencies, to ensure effective communication with qualified individuals with disabilities. Under this agreement, a person who is deaf or hard of hearing will be able to benefit from the same services as every other person. For individuals who are deaf or hard of hearing, auxiliary aids include qualified sign language or oral interpreters, use of relay services, computer-assisted real time transcription, and, for simple communications, the exchange of written notes.
The settlement agreement requires the State Department on Aging to develop and amend its policies, practices and training to ensure interpreter services are provided to individuals who are deaf or hard of hearing. Specifically, it requires the Department to:
- Ensure its policies and practices are nondiscriminatory, and provide effective communication for people with communication disabilities, including the provision of sign language interpreters
- Post a notice of the policy in public areas
- Train staff on the policies
- Ensure that appropriate auxiliary aids and services, including qualified interpreters, and specifically tactile interpreters, are made available to all individuals who are deaf or hard of hearing
Individuals who believe that they may have been victims of discrimination can file a complaint with the U.S. Attorney’s Office at 203-821-3700, or by visiting www.ada.gov. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Additional information about the ADA can be found at www.ada.gov, or by calling the Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
This matter was handled by Assistant U.S. Attorney Ndidi N. Moses with the assistance of the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Sherman Man Involved in Steroid Manufacturing and Distribution Ring is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL D. MASE, 32, of Sherman, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to three years of probation for his role in a steroid manufacturing and distribution ring. Judge Chatigny also ordered that MASE spend the first three months of his probation in home confinement, perform 120 hours of community service and pay a $2000 fine.
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.
MASE, a registered nurse and a competitive weight lifter, purchased anabolic steroids from Santucci and distributed them to others, including athletes who competed in body-building and weight lifting competitions.
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 four long guns.
MASE was arrested on April 29, 2015. On October 6, 2015, he pleaded guilty to one count of conspiracy to distribute anabolic steroids.
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.
New Britain Firearms Manufacturer Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Daniel J. Kumor, Special Agent in Charge of the ATF Boston Field Division, announced that STAG ARMS LLC, a firearms manufacturer in New Britain, pleaded guilty today in Hartford federal court to violating federal firearms laws.
“It is critically important for those who are responsible for manufacturing firearms, especially high-powered semiautomatic rifles, to diligently comply with federal firearms laws throughout the production and distribution process,” said U.S. Attorney Daly. “Stag’s misconduct has resulted in hundreds of these weapons being lost or untraceable. In addition, Stag’s possession of dozens of unregistered machine guns is particularly egregious. Federal firearms laws exist to ensure that all legal firearms are properly accounted for and don’t wind up on the street, and in the hands of those who shouldn’t possess them. Gun manufacturers who don’t follow the rules and violate federal law not only face license revocation, but criminal prosecution. I commend the ATF for expertly investigating this matter.”
“What occurred in this case is absolutely unacceptable and will not be tolerated,” said ATF Special Agent in Charge Kumor. “ATF relies on individuals and corporations who are licensed to manufacture firearms to mark them in accordance with the law, keep thorough records of the manufacture and disposition of all firearms and maintain their inventory in secure facilities to prevent their theft or loss. When firearms licensees fail to comply with these federal regulations and laws they open the door for untraceable firearms to wind up on the street in the hands of traffickers and criminals. Today’s guilty plea and the license revocations demonstrate our commitment to hold firearms licensees accountable when they place public safety at risk.”
The possession, by private citizens, of machine guns manufactured after 1986 is prohibited, and licensed manufacturers of machine guns are required to stamp a unique serial number on each machine gun and register it with ATF within one business day of manufacture. It is a violation of federal law for a licensed manufacturer to fail to mark a firearm with a serial number and for anyone to tamper with a firearm serial number or possess a firearm with an obliterated serial number. It is also against the law for anyone to possess a machine gun that is not registered to them.
According to court documents and statements made in court, STAG ARMS (“STAG”) obtained a federal firearms license (“FFL”) to manufacture firearms in 2003, and obtained a license for a second location in 2009.
In 2007, the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) cited STAG for a number of regulatory violations.
In July 2014, ATF Industry Operations Investigators performed another firearms compliance inspection at STAG. The investigation revealed that, in violation of the National Firearms Act, STAG had possession of a total of 62 machine guns and machine gun receivers that were registered to another entity, or were not registered at all.
A receiver is the key regulated part that is considered a machine gun. All other parts necessary to transform a receiver to a fully functional semi-automatic or automatic machine gun can be purchased over the Internet.
The investigation also discovered that, in violation of the Gun Control Act, STAG had failed in thousands of instances to adequately document the manufacture and disposition of firearms – machine guns as well as assault weapons – making them more susceptible to theft or loss. Many of the record-keeping violations that were uncovered were similar to violations for which STAG was cited in 2007. For example, inspectors discovered more than 3000 un-serialized receivers on the premises without any record of their manufacture or acquisition, and more than 3000 firearms that were transferred by STAG without properly being recorded. Inspectors were able to reconcile the majority of these transfers from other paperwork on site, but found more than 300 instances in which the disposition of the firearms could not be reconciled. To date, approximately 200 firearms are reported as lost or stolen.
In September 2014, ATF executed search warrants at STAG’s two facilities on John Downey Drive in New Britain and seized dozens of machine guns that had not been marked and/or registered, as well as three machine guns with serial numbers that had been intentionally obliterated, or scratched out.
In October 2014, ATF issued a Notice of Revocation to STAG, revoking both federal firearms licenses held by STAG at it two facilities. In the revocation notices, ATF alleged that STAG had knowledge of its recordkeeping and firearms marking responsibilities, but did not choose to comply. STAG was permitted to continue operations pending the results of a hearing where STAG was afforded the opportunity to contest the revocations with its own witnesses and evidence, and to cross examine government witnesses.
On November 16, 2015, after consideration of the evidence presented at the hearing, ATF issued a revocation of both of STAG’s federal firearms licenses. ATF has postponed the effective date of the revocation for 60 days.
STAG, through its representative and president MARK MALKOWSKI, pleaded guilty to a felony charge of possession of a machine gun not registered to the company. As part of its guilty plea, STAG has agreed to pay a $500,000 fine. In addition, MALKOWSKI is expected to appear tomorrow in New Haven federal court and plead guilty in his individual capacity to a misdemeanor charge of failure to maintain proper firearm records, an offense that carries a maximum term of imprisonment of one year. As part of his guilty plea, MALKOWSKI has agreed to pay a fine of $100,000.
STAG also has agreed not to challenge the license revocations in court, and to drop all ownership claims to the firearms seized by ATF. In addition, MALKOWSKI will divest himself of his interest in STAG and to thereafter never again hold an ownership or management position with respect to a firearms business.
This matter is being prosecuted by Assistant U.S. Attorney S. Dave Vatti.
RBS Supervisor Pleads Guilty to Conspiracy to Commit Multimillion Dollar Securities FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ADAM SIEGEL, 37, of Riverside, Connecticut, waived his right to indictment and pleaded guilty today in Hartford federal court to participating in a multimillion securities fraud scheme. SIEGEL also entered into an agreement to cooperate in the government’s ongoing investigation
According to court documents and statements made in court, between July 2008 and approximately 2014, SIEGEL was the Co-Head of U.S. Asset-Backed Securities, Mortgage-Backed Securities and Commercial Mortgage-Backed Securities Trading at RBS Securities Inc. RBS is a global securities firm with headquarters in Stamford, Connecticut. RBS also has a trading floor in Stamford where SIEGEL and some of the RBS employees that he supervised traded fixed income investment securities such as residential mortgage-backed securities (RMBS) and collateralized loan obligations (CLOs). In pleading guilty, SIEGEL admitted that he and others conspired to increase RBS’s profits on CLO and RMBS bond trades at the expense of customers. As part of the scheme, SIEGEL and his co-conspirators made misrepresentations to induce buying customers to pay inflated prices and selling customers to accept deflated prices for bonds, all to benefit RBS.
The conspiracy was perpetrated in two ways. In certain transactions, SIEGEL and his co-conspirators misrepresented the seller’s asking price to the buyer (or vice versa), keeping the difference between the price paid by the buyer and the price paid to the seller for RBS. In other transactions, SIEGEL and his co-conspirators misrepresented to the buyer that bonds held in RBS’s inventory were being offered for sale by a fictitious third-party seller, which allowed RBS to charge the buyer an extra, unearned commission.
The investigation revealed numerous fraudulent transactions by SIEGEL and other members of the conspiracy that cost at least 35 victim customers, including firms affiliated with recipients of federal bailout funds through the Troubled Asset Relief Program, millions of dollars.
“Current regulations governing many fixed income products allow broker-dealers to operate in secrecy,” said U.S. Attorney Deirdre M. Daly. “But as the Court of Appeals for the Second Circuit recently reminded us in United States v. Litvak, under the securities laws, broker-dealers do not have a license to lie to their customers. Today’s plea is the most recent step in our continuing investigation into those who prey on fixed income investors. Others with relevant information should follow Mr. Siegel’s example and cooperate with us. We thank SIGTARP and the FBI for their hard work to date on this investigation. We are committed to our various investigations into the fixed income markets, and will continue to work with SIGTARP and the FBI, as well as our partners at the Department of Labor Office of the Inspector General, the Federal Housing Finance Administration Office of Inspector General, and the Fraud Section of the Department of Justice.”
“The opaque markets of residential mortgage-backed securities (RMBS) and collateralized loan obligations (CLO), which played such a large role in the financial crisis, require honesty and integrity to protect all who trade,” said SIGTARP Inspector General Romero. “During the financial crisis, Adam Siegel exploited the lack of transparency in those markets by victimizing the firm’s customers, including TARP banks. His crime included defrauding buying customers about the price his firm paid so that he could charge more, defrauding selling customers about the price a buyer was willing to pay, and lying that a bond his firm already held in inventory was actually being sold by a seller at an artificially inflated price. U.S. Attorney Deirdre Daly has shown great leadership, and her office and the FBI have been united with SIGTARP against crime related to the bailout.”
“Financial investors should not have to fear being deceived by brokers in an already risk-filled industry,” said FBI Special Agent in Charge Ferrick. “The criminal actions of Mr. Siegel and others like him will continue to be investigated and brought to justice by the Financial Fraud Task Force.”
SIEGEL pleaded guilty to one count of conspiracy to commit securities fraud, which carries a maximum term of imprisonment of five years. He was released on a $250,000 bond and is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on March 11, 2016.
On March 11, 2015, Matthew Katke, a registered broker-dealer and managing director at RBS Securities Inc., pleaded guilty to the same charge and also is cooperating with the government.
This matter is being investigated by the Special Inspector General for the Troubled Asset Relief Program and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Jonathan Francis and Heather Cherry.
Today’s announcement is part of the ongoing efforts of the Financial Fraud Enforcement Task Force’s Residential Mortgage-Backed Securities (RMBS) Working Group, a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis and the federal government’s subsequent bailout. The RMBS Working Group brings together attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and state Attorneys General offices around the country.
The RMBS Working Group is led by Acting Associate Attorney General Stuart Delery, and co-chaired by Assistant Attorney General for the Criminal Division Leslie R. Caldwell, Principal Deputy Assistant Attorney General for the Civil Division Benjamin Mizer, U.S. Securities and Exchange Commission Director of Enforcement Andrew Ceresney, U.S. Attorney for the District of Colorado John Walsh and New York Attorney General Eric T. Schneiderman.
For more information about the RMBS Working Group and the Financial Fraud Enforcement Task Force, visit: www.stopfraud.gov.
Morris Resident to Serve Time in Federal Prison for Involvement in Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on December 18, DUSTIN WHITTEN, 32, of Morris, was sentenced by U.S. District Judge Janet Bond Arterton in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for his involvement in an insurance fraud scheme.
According to court documents and statements made in court, in May 2009, Ryan Geddes of Litchfield transferred to WHITTEN a residential property located in Old Forge, N.Y., while Geddes continued to use the property and pay the mortgage and maintenance expenses. At the time, Geddes was being sued by a creditor who was seeking to collect a debt and identify Geddes’ assets. In March 2011, WHITTEN and Geddes made arrangements for an insurance company to issue a policy on the New York property in WHITTEN’s name. On July 4, 2011, after a bankruptcy court meeting about compensating Geddes’ creditors, the New York property was destroyed in a fire. In September 2011, WHITTEN swore out an insurance claim on the property, 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.
WHITTEN and Geddes have both admitted that the purpose of the scheme was to shield the insurance proceeds from Geddes’ creditors.
On April 17, 2015, WHITTEN pleaded guilty to one count of conspiracy to commit mail and wire fraud.
On April 28, 2015, Geddes pleaded guilty to charges related to this scheme and separate fraud schemes. He is scheduled to be sentenced in February 2016.
This matter has been investigated by the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Henry K. Kopel and Michael J. Gustafson.
Naugatuck Man Admits Defrauding Connecticut ResidentsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on December 16, CHRISTOPHER SCULL, 36, of Naugatuck, waived his right to indictment and pleaded guilty before U.S. District Judge Janet C. Hall in New Haven to two counts of mail fraud stemming from a scheme to defraud investors of more than $120,000.
According to court documents and statements made in court, from approximately June 2011 and continuing until approximately January 2014, SCULL, while employed as an insurance agent with Bankers Life & Casualty Company (“Bankers Life”), devised and executed a scheme to defraud victims out of money. As part of the scheme, SCULL induced one victim to make withdrawals from her annuity and give the money to SCULL by falsely representing that the victim owed certain fees in connection with the account. SCULL caused the victim to submit an annuity withdrawal form and, after the victim received a check in the mail from Bankers Life, SCULL directed the victim to deposit the money into her account and write SCULL a personal check. SCULL then used the money for his own benefit.
Judge Hall scheduled sentencing for March 10, 2016, at which time SCULL faces a maximum term of imprisonment of 20 years and a fine of up to $250,000 on each count.
This matter has been investigated by the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
Meriden Man Who Allegedly Fired Shots into Mosque Charged with Federal Hate Crime OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that TED HAKEY, JR., 48, of Meriden, has been arrested on a federal criminal complaint charging him with intentionally damaging religious property, the Baitul Aman Mosque in Meriden.
HAKEY was arrested yesterday. He appeared today before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and was ordered detained. A detention hearing is scheduled for December 21 at 9:30 a.m.
As alleged in the criminal complaint, in the early morning hours of November 14, 2015, shortly after learning of the terrorist attacks in Paris, HAKEY who lived next door to the Mosque used his high powered rifle to discharge several rounds at the Mosque. Four bullets hit the mosque, with three penetrating the building. No one was inside the mosque at the time of the shooting and no one was injured during the incident.
“All citizens of this earth should be free to worship without fear of violence,” said U.S. Attorney Daly. “As Americans, we must not let fear drive us away from our values and toward hateful and divisive acts against others. The core mission of the Department of Justice involves the safety of every person and their protection against racially, religiously and ethnically motivated violence and intimidation. We stand ready to prosecute individuals when rhetoric crosses the line to threats of violence or – as charged here – actual violence. I thank the FBI, ATF, Connecticut State Police and Meriden Police Department for their excellent work in this important investigation.”
“This arrest should serve as a clear message that crimes of hate against individuals of any race, creed, gender or religious background will not be tolerated,” said FBI Special Agent in Charge Ferrick. “This is the result of FBI, ATF, Connecticut State Police and the Meriden Police Department working night and day to bring some degree of comfort to a community that has been victimized by fear and hate.”
The charge of intentionally damaging religious property through use of a dangerous weapon carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.
U.S. Attorney Daly stressed that a criminal complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police and the Meriden Police Department.
Stamford Man Charged with Orchestrating Murder for Hire SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Daniel J. Kumor, Special Agent in Charge of the ATF Boston Field Division, today announced that a federal grand jury in Bridgeport returned an indictment today charging LARRY TALLEDO-TORREJON, 29, a citizen of Peru last residing in Stamford, with orchestrating a murder for hire scheme.
According to allegations contained in the indictment and a previously-filed criminal complaint, in early December 2015, TALLEDO-TORREJON, as part of a contract to purchase a restaurant in Stamford for $300,000, provided the seller of the restaurant with $150,000 in cashier checks and an additional $150,000 in checks drawn on bank accounts with insufficient funds. On December 5, TALLEDO-TORREJON directed an individual who owed him $5,000 to follow the manager of the restaurant (“G.R.”) to his home in New York and to murder him. In exchange for doing so, TALLEDO-TORREJON agreed to forgive the $5,000 debt and to pay the individual an additional $5,000 in cash. The individual subsequently contacted law enforcement, and also contacted TALLEDO-TORREJON to let him know that he had kidnapped G.R. and was holding him.
It is further alleged that on December 7, 2015, TALLEDO-TORREJON provided the individual with a manila folder containing two copies of a receipt that falsely stated that TALLEDO-TORREJON had provided G.R. with $150,000. TALLEDO-TORREJON directed the individual to provide the receipts to G.R., coerce G.R. into signing them, and then kill him. TALLEDO-TORREJON told the individual that his pre-existing debt had been cancelled, and also suggested that they could start a business kidnapping and extorting money from persons.
It is also alleged that on December 8, TALLEDO-TORREJON made a complaint with the Stamford Police Department falsely claiming that G.R. had stolen $150,000 that TALLEDO-TORREJON had provided G.R. to complete the purchase of the restaurant.
TALLEDO-TORREJON was arrested on December 8 after the individual provided him with the receipts signed by G.R., and TALLEDO-TORREJON provided the individual with $500 in partial payment for the murder.
TALLEDO-TORREJON has been detained since his arrest.
The charge of murder for hire carries a maximum term of imprisonment of 10 years.
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 and is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Jamaican National Pleads Guilty to Passport FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK ANTHONY GOULDBOURNE, 41, of Hartford, waived his right to indictment and pleaded guilty today in Hartford federal court to one count of making a false statement in a passport application.
According to court documents and statements made in court, GOULDBOURNE is a native and citizen of Jamaica. In March 2011, he submitted an application for a U.S. passport, in the name of another individual, at a U.S. Post Office in Hartford. Claiming to be this individual, GOULDBOURNE presented to the passport acceptance agent a New York birth certificate and a Pennsylvania identity card, and then signed the passport application under oath. Passport authorities flagged the application as possibly fraudulent and did not issue the passport.
In May 2015, law enforcement determined that GOULDBOURNE was an inmate at Hartford Correctional Center under the same identity used in the fraudulent passport application. In an interview with law enforcement on May 7, 2015, GOULDBOURNE admitted that he had submitted the fraudulent passport application in March 2011, and that he had obtained the Pennsylvania identity card in the name of the other individual.
GOULDBOURNE, who is detained, is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on March 7, 2015, at which time he faces a maximum term of imprisonment of 10 years.
This case was investigated by the U.S. Department of State, Diplomatic Security Service, and is being prosecuted by Assistant U.S. Attorney Harold H. Chen.
Former Bookkeeper for Veterans Services Organization Pleads Guilty to Fraud, Tax OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CYNTHIA TANNER, 54, of Darien, pleaded guilty today in Hartford federal court to fraud and tax evasion offenses stemming from her embezzlement of approximately $800,000 from a Connecticut-based veterans services organization.
According to court documents and statements made in court, TANNER was employed as a bookkeeper for the National Veterans Service Fund (“NVSF”) located in Darien. The stated mission of the NVSF was to provide case managed social services and limited medical assistance to Vietnam and Persian Gulf War veterans and their families, with a focus on families with disabled children. From approximately January 2009 through June 2014, TANNER used nearly $800,000 in NVSF funds to pay various personal expenses for her and her family members. She also altered records to conceal her scheme and by falsely claiming that the stolen monies were being paid to veterans in need.
In addition, TANNER failed to report $794,768.47 in embezzled income on her 2009 through 2013 federal tax returns, resulting in a tax loss of $270,026.
TANNER pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years. She is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on March 11, 2016.
TANNER was arrested on related state charges on June 2, 2014. She is released on a $50,000 bond.
This investigation is being conducted by the U.S. Secret Service, Internal Revenue Service – Criminal Investigation Division and Darien Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Newington Man Admits Stealing Social Security Benefits Delivered to Deceased GrandmotherRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CEDRIC NEWMAN, 46, of Newington, waived his right to indictment and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to one count of theft of public funds.
According to court documents and statements made in court, NEWMAN’s grandmother was entitled to receive Social Security Administration (“SSA”) monthly benefit payments starting in 1980. The payments were made by direct deposit into a bank checking account. Although NEWMAN’s grandmother passed away in October 1996, the direct deposit payments continued until June 2014.
In March 2011, NEWMAN began accessing the funds in the account to make electronic payments on his credit card. From the time of his grandmother’s death until June 2014, approximately $220,729 of monthly benefit payments, net of Medicare premiums, were directly deposited into her bank account. NEWMAN used $218,079 of the funds for his own benefit.
Judge Hall scheduled sentencing for March 9, 2016, at which time NEWMAN faces a maximum term of imprisonment of 10 years, a fine of up to twice the amount of money stolen, and mandatory restitution to the Social Security Administration.
This matter is being investigated by the Social Security Administration Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Anastasia Enos King.
Insurance Agency Owner Convicted of Stealing More Than $1.7 Million in Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that a federal jury in Hartford today found EARL O’GARRO, JR., 32, formerly of Marlborough, guilty of defrauding a specialty lender, insurance carriers and the State of Connecticut. The trial before U.S. District Judge Alvin W. Thompson began on December 8 and, after deliberating for approximately one hour, the jury returned verdicts of guilty on all three counts.
“The defendant took advantage of friends and associates in the insurance industry to support a lifestyle he couldn’t afford,” said U.S. Attorney Daly. “I thank the FBI and our trial team for their expert investigation and prosecution of this matter, which led to a swift verdict of guilty.”
“Today, victims of fraud have been given some degree of closure by the jury’s decision,” said FBI Special Agent in Charge Ferrick. “The FBI and our law enforcement partners intend to continue to pursue these types of violations to the fullest extent of the law.”
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.
The jury found O’GARRO guilty of two counts of wire fraud and one count of mail fraud. Each charge carries a maximum term of imprisonment of 20 years. Judge Thompson scheduled sentencing for March 7, 2016.
O’GARRO has been released on a $500,000 bond since his arrest on November 21, 2014. He will now be subject to electronic monitoring while awaiting sentencing.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Avi M. Perry and Michael J. Gustafson.
Three Chinese Nationals Arrested for Scheme to Steal and Illegally Export Military-Grade SemiconductorsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that three Chinese nationals have been arrested on federal criminal complaints in connection with a scheme to obtain and illegally export sophisticated semiconductors stolen from the U.S. military. DAOFU ZHANG, 50; JIANG GUANGHOU YAN, also known as “Ben,” 33; and XIANFENG ZUO, 37, were arrested this morning in Milford.
The three defendants made initial appearances before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and were detained.
As alleged in the criminal complaints, federal law enforcement agents began investigating YAN and a Chinese company known as HK Potential in 2012 for trafficking in counterfeit semiconductors. In October 2014 and in March 2015, YAN sold a total of 45 counterfeit Intel microprocessors to an undercover agent who had advised YAN that the components would be used on a U.S. Navy contract involving submarines.
The complaints further allege that, in July 2015, YAN asked whether the undercover agent could obtain 22 Xilinx semiconductors, military grade, for which YAN would pay $37,000 each. After the undercover agent advised YAN that the Xilinx components could be stolen from a U.S. Navy base, YAN offered to provide fake Xilinx components that could be substituted for the stolen components in order to prevent detection of the theft. When asked whether the fake Xilinx components would work, YAN replied that “the fake one just look the same” but were “not ok for function.” In November 2015, YAN shipped eight of the fake Xilinx components to the undercover agent.
ZHANG, YAN, and ZUO traveled to the U.S. on December 6, and they were arrested today attempting to take delivery of the Xilinx semiconductors from the undercover agent.
“The Justice Department and our federal law enforcement partners are committed to prosecuting those who would supply our armed forces with counterfeit electronic components, as well as those who attempt to steal sophisticated U.S. military components and distribute them to places unknown,” stated U.S. Attorney Daly. “I thank the collaborative efforts of our partners in this long-term investigation, including the DCIS, HSI, FBI, U.S. Department of Commerce’s Bureau of Industry and Security, and U.S. Air Force’s Office of Special Investigations.”
The complaint charges ZHANG, YAN, and ZUO with violating the International Emergency Economic Powers Act, which carries a maximum penalty of 20 years of imprisonment and a $1 million fine; and receipt of stolen government property, which carries a maximum penalty of 10 years of imprisonment and a $250,000 fine. ZHANG and YAN are also charged with trafficking in counterfeit goods, which carries a maximum penalty of 10 years of imprisonment and a $2 million fine; and mail fraud, which carries a maximum penalty of 20 years of imprisonment and a $250,000 fine. In addition, ZHANG and ZUO are charged with conspiracy, which carries a maximum penalty of five years of imprisonment and a $250,000 fine.
U.S. Attorney Daly stressed that a complaint 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.
This matter is being investigated by the Defense Criminal Investigative Service, Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Department of Commerce’s Bureau of Industry and Security, and the U.S. Air Force’s Office of Special Investigations. The case is being prosecuted by Assistant U.S. Attorney Edward Chang.
New York Man Who Supplied Falsely Remarked Computer Chips Used in U.S. Military Helicopters is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEFFREY KRANTZ, 50, of New York, N.Y., was sentenced today by U.S. District Judge Michael P. Shea in Hartford to three years of probation and ordered to pay a $100,000 fine for supplying customers with falsely remarked microprocessor chips, many of which were used in U.S. Military and commercial helicopters.
“We are committed to prosecuting individuals who distribute unapproved microprocessor chips and other electronic components for use by the U.S. Military,” said U.S. Attorney Daly. “This crime poses a potential threat to the safety of the men and women of our armed services. We thank the Defense Criminal Investigative Service and the U.S. Department of Transportation, Office of Inspector General, for their diligent work on this complex investigation.”
“Today's sentence is another necessary step along the path to protect the integrity of the Department of Defense's supply chain,” said Craig W. Rupert, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Northeast Field Office. “Distributors who opt for financial gain by introducing inferior products into mission critical equipment create an environment ripe for product failures. Such disregard puts the warfighter at an unnecessary risk, ultimately impacting the mission readiness of our military that the nation depends on. DCIS shields America’s investment in national defense by continuing to engage with our partner law enforcement agencies and prosecutors to bring to justice all who disrupt the reliability of our military's critical infrastructure.”
“The sentencing today of Jeffrey Krantz for supplying customers with falsely remarked microprocessor chips sends a clear signal that strong penalties await those that would seek to perpetrate fraud in the aerospace manufacturing industry,” said Todd Damiani, regional Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General. “The DOT-OIG will work with our law enforcement and prosecutorial colleagues, to continue our dedicated efforts to uncover schemes involving suspect unapproved parts (“SUPs”), prevent SUPs’ use, and punish those who seek to compromise the integrity of DOT’s safety programs.”
According to court documents and statements made in court, KRANTZ was the CEO and an owner of Harry Krantz, LLC, a New York-based company that bought and sold, among other things, obsolete electronic parts for use by the U.S. Military and commercial buyers. In 2005, KRANTZ entered into a business relationship with Jeffrey Warga, the president and owner of Rhode Island-based Bay Components, LLC, to sell military microprocessor chips to Bay Components, which would in turn sell them to a Connecticut company. KRANTZ knew that the Connecticut company wanted new and original chips, not falsely remarked chips.
Between 2005 and 2008, KRANTZ purchased and sold, and caused to be purchased and sold, over a thousand chips to Bay Components, which, in turn sold them to the Connecticut company. The chips were marked with certain information, including a certain manufacturer’s name and trademark, a date code, and a military part number. In approximately December 2005, the first shipments of about 330 chips that KRANTZ had sold to Bay Components were rejected by the Connecticut company for being the wrong part because the chip contained the wrong die inside. In 2006, KRANTZ replaced those chips with at least some of the replacement chips bearing the date code 9832. Between 2006 and 2008, KRANTZ sold and caused to be sold at least 900 chips with date code 9832 to Bay Components, the majority of which were sold to the Connecticut company. KRANTZ knew that the chips had originated from a parts supplier in China, and there was a high probability that the chips were falsely remarked not the original chips of the certain manufacturer as represented by the markings on the chip. He also avoided engaging in common practices in the industry, including those which Harry Krantz LLC routinely engaged in for other military parts, to avoid confirming that the chips were likely remarked.
The investigation revealed that many of the chips were used in the assembly of U.S. Military and commercial helicopters. The chips have been examined and determined not to be the root cause of any mechanical problems experienced by the helicopters to date.
On July 28, 2015, KRANTZ waived his right to indictment and pleaded guilty to one count of wire fraud. In pleading guilty, KRANTZ also agreed to pay restitution in the amount of $402,650. Judge Shea will issue a restitution order after further court proceedings.
As part of his guilty plea, KRANTZ also agreed not to be directly or indirectly involved in the buying or selling of electronic parts, for a period of two years. He also has given up all control either directly or indirectly over Harry Krantz LLC, and all beneficial and/or financial interest, including ownership interest, in Harry Krantz, LLC, and will not reacquire such an interest.
On December 12, 2014, Warga pleaded guilty to one count of conspiracy to commit wire fraud. He awaits sentencing.
This ongoing investigation is being conducted by the Defense Criminal Investigative Service and the U.S. Department of Transportation, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Southeastern Connecticut Cocaine Trafficker Sentenced to More Than 9 Years in PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PEDRO RIVERA, also known as “Cheito,” 37, of Groton, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 116 months of imprisonment, followed by five years of supervised release, for trafficking cocaine. RIVERA’s mother and father, who assisted RIVERA’s cocaine trafficking operation, also were sentenced today.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that certain members of the conspiracy coordinated the shipment of heroin, and sometimes cocaine, via human couriers from the Dominican Republic to the United States. Other members of the conspiracy obtained kilogram-quantities of cocaine in Puerto Rico and then mailed the drug to locations in and around New London where it was sold to distributors and customers. Narcotics were also obtained from sources in New York City and Rhode Island.
More than 100 individuals were charged with federal and state offenses as a result of this investigation.
RIVERA arranged the shipment of cocaine from sources in Puerto Rico to the New London area, and was assisted by individuals who lived in and around Morovis, Puerto Rico, including his parents, JUAN RIVERA ORTIZ and IVETTE PAGAN RODRIGUEZ. RIVERA then distributed the cocaine to customers in southeastern Connecticut through a network of associates.
Judge Bryant sentenced JUAN RIVERA ORTIZ, 58, to 30 months of imprisonment, followed by three years of supervised release, and IVETTE PAGAN RODRIGUEZ, 54, to five years of probation.
PEDRO RIVERA has been detained since his arrest on April 3, 2013. On December 9, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more cocaine.
RIVERA ORTIZ and PAGAN RODRIGUEZ pleaded guilty on November 24, 2014.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan, Alina P. Reynolds and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
Former Newtown Police Sergeant Admits Heading Steroid Manufacturing and Distribution ConspiracyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that STEVEN SANTUCCI, 39, of Waterbury, pleaded guilty today in Hartford federal court to one count of conspiracy to distribute anabolic steroids and one count of conspiracy to launder monetary instruments.
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 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.
SANTUCCI used more than $120,000 in proceeds from the sale of anabolic steroids to wire payments to foreign sellers of ingredients to make liquid anabolic steroids, and to purchase drug packaging materials from domestic companies.
Twelve individuals were charged as a result of the investigation. 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 four long guns.
SANTUCCI is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on March 3, 2016, at which time he faces a maximum term of imprisonment of 30 years.
SANTUCCI was arrested on April 29, 2015, and is released on a $100,000 bond.
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.
Connecticut U.S. Attorney’s Office Collects More Than $14 Million for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
New Haven - U.S. Attorney Deirdre M. Daly today announced that the U.S. Attorney’s Office for the District of Connecticut collected $14,215,633.55 in criminal and civil actions in Fiscal Year 2015. Of this amount, $4,729,959.08 was collected in criminal actions and $9,485,674.47 was collected in civil actions.
Additionally, the District of Connecticut collected $27,311,898.49 in cases pursued jointly with other U.S. Attorney’s Offices and components of the Department of Justice. Of this amount $320,954.29 was collected in criminal actions and $26,990,944.29 was collected in civil actions.
Attorney General Loretta E. Lynch announced on Thursday that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015.
The more than $23 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“This past fiscal year, our Office’s dedicated and talented attorneys and staff helped to recover over $41 million,” said U.S. Attorney Daly. “We are gratified that these funds are returned directly to victims of crime, provide needed services for these victims and fund ongoing federal, state and local law enforcement efforts. One of our primary missions is to seek justice for victims, remove ill-gotten gains from wrongdoers and protect the integrity of important government programs.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
In addition, the U.S. Attorney’s office in Connecticut, working with partner agencies and divisions, collected $4,443,273 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 65 Assistant U.S. Attorneys and approximately 50 staff members at offices in New Haven, Hartford and Bridgeport.
Connecticut Construction Company Fined $200K for Underfunding Retirement Plan, Filing False Tax ReturnRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHERRY HILL CONSTRUCTION, INC., a company based in North Branford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to three years of probation and a fine of $200,000 for underfunding its retirement plan and filing a false tax return.
On January 13, 2015, CHERRY HILL CONSTRUCTION, INC., (“CHERRY HILL”) pleaded guilty to one count of filing a false tax return, and one count of making a false statement in relation to documents required by the Employee Retirement Income Security Act of 1974 (“ERISA”). ERISA is a federal law that sets minimum standards for retirement plans in private industry, including a requirement that plan sponsors provide adequate funding for a plan.
According to court documents and statements made in court, CHERRY HILL provides statewide service in site development, on-site crushing, trucking, demolition, as well as roll-off dumpsters, top soil, aggregates and landscaping. CHERRY HILL was awarded and completed prevailing wage construction projects requiring payment of the prevailing wage rate plus the fringe rate. The fringe rate is the cost of benefits to the employee.
When a company is awarded a prevailing wage project, the company must submit certified payrolls that list the hours, prevailing wage rate and fringe they are paying each employee. The company can either pay the employee the fringe directly or open a benefit plan with the fringe payment being deposited into an account for the benefit of that employee. The company is then paid by the federal, state or municipal governments the amount of payroll, including the fringe, after receiving the certified payrolls. The government entity for which the project is being worked pays these funds only because the employer certifies that the prevailing wage and fringe is being paid to an employee directly or being deposited into a benefit plan.
CHERRY HILL opened a profit sharing/401(k) plan that was covered under ERISA. CHERRY HILL has admitted that, in 2010 and 2011, it underfunded its retirement plan by approximately $950,000. CHERRY HILL further admitted that it filed a corporate tax return for the 2010 tax year that inflated its actual contribution to the plan, which resulted in an increased employee benefit deduction.
CHERRY HILL has fully funded its retirement plan and paid $193,000 in back taxes, interest and penalties.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division; U.S. Department of Labor – Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; U.S. Department of Labor – Employee Benefits Security Administration, and U.S. Department of Transportation – Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Bronx Woman Sentenced for Passport FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that SUZANNE DIANNE BENT, 55, a resident of the Bronx, N.Y., was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to three years of probation for passport fraud.
According to court documents and statements made in court, BENT is believed to be a native of Jamaica who was illegally brought to the U.S. by her grandmother in 1969. BENT has a criminal history that includes multiple convictions for theft-related crimes, and she has used multiple aliases and dates of birth during her life
On April 1, 2013, BENT applied for a U.S. passport at the Stamford, Connecticut Passport Agency. As proof of citizenship, she provided a fraudulent New York City birth certificate and other documentation.
The investigation further revealed that BENT had fraudulently obtained a Social Security number and, between August 2004 and March 2013, received approximately $76,365 in benefits from the Social Security Administration, Supplemental Security Income Program based on a claimed mental or physical disability.
BENT was ordered to pay restitution in the amount of $76,365.35.
BENT was arrested on December 5, 2014. On July 20, 2015, she pleaded guilty to one count of making a false statement in an application for a U.S. passport.
At the conclusion of the sentencing hearing, BENT was taken into custody by U.S. Immigration and Customs Enforcement.
This matter was investigated by the U.S. Department of State, Bureau of Diplomatic Security; the Social Security Administration, Office of Inspector General – Office of Investigations; and U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
New York Plastic Surgeon to Pay $150,000 to Settle Allegations under the Controlled Substances ActRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CHERYL KARCHER, M.D., 57, of Brookfield, Conn., and New York, N.Y., has entered into a civil settlement agreement with the government in which she will pay $150,000 to resolve allegations that she violated civil provisions of the Controlled Substances Act.
KARCHER is a plastic surgeon associated with Sadick Dermatology located at 911 Park Avenue in Manhattan. The allegations against her involve claims that she wrote at least 15 prescriptions for Percocet, a Schedule II Narcotic drug, outside the course of her normal medical practice. The 15 prescriptions, which were filled at pharmacies in Connecticut, were not dispensed to the individuals whose name was on the prescriptions.
“The improper diversion of potent pharmaceuticals risks the safety of those individuals that ultimately use these drugs,” said U.S. Attorney Daly. “This settlement sends a message to the medical community that there are real consequences for practicing medicine outside the proper course of medical practice.”
KARCHER was prosecuted by the Office of the Special Narcotics Prosecutor for the City of New York in a related criminal case. The case against her was dismissed after she completed a court-ordered drug treatment program.
The federal investigation was conducted by investigators from the Drug Enforcement Administration’s Office of Diversion Control in Rocky Hill, Conn. The prosecution was led by Assistant U.S. Attorney Alan M. Soloway.
New London Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ELIJAH GRIFFIN, 25, of New London, pleaded guilty yesterday in Hartford federal court to being a felon in possession of firearms.
According to court documents and statements made in court, on April 30, 2015, members of the New London Police Department and the Connecticut State Police executed a state search and seizure warrant at GRIFFIN’s apartment on West Street in New London. Inside a closet in GRIFFIN’s room, officers located and seized a loaded .38 caliber revolver and a loaded .45 caliber pistol.
GRIFFIN has a prior state felony conviction for sale of narcotics. 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.
GRIFFIN has been detained since his arrest on April 30. He is scheduled to be sentenced by Senior U.S. District Judge Alfred V. Covello on February 24, 2016, at which time he faces a maximum term of imprisonment of 10 years.
This matter is being investigated by the New London Police Department with the assistance of the Connecticut State Police and the Norwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
East Hartford Man Pleads Guilty to Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, announced that SHAUKAT G. DALAL, also known as Shaukathusein Dalal, 55, of East Hartford, waived his right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of tax evasion.
According to court documents and statements made in court, DALAL was employed by the State of Connecticut as a Fiscal Administration Assistant, and also owned and operated a separate tax preparation business, Tax Preparation SVS Inc. For the 2009 through 2011 tax years, DALAL, who had prepared more than 250 tax returns as part of the tax preparation business, did not deposit all of the gross receipts from the business into his business bank account and subsequently understated his gross receipts on his federal tax returns.
DALAL and his wife also owned Ameen LLC, a holding company that owned 25 rental units in an East Hartford condominium complex. DALAL performed virtually all of the work for the real estate business, including collecting rent receipts, pricing the units, organizing repairs and maintenance, depositing rent receipts, paying the bills and maintaining the books and records. DALAL did not deposit a substantial portion of rent receipts, often paid to him in cash, into Ameen LLC’s business bank account and substantially underreported both the applicable income and taxes due and owing on his 2009 through 2011 federal tax returns.
Judge Underhill scheduled sentencing for February 24, 2016, at which time DALAL faces a maximum term of imprisonment of five years and a fine of up to $250,000. DALAL also has agreed to pay $97,289 in back taxes, plus applicable penalties and interest.
This case has been investigated by the Internal Revenue Service – Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Norwalk 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 BRANDEN HUERTAS, also known as “Branden Holloway,” 34, formerly of Norwalk and last residing in Bridgeport, 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 illegally possessing a firearm.
On May 13, 2014, HUERTAS was arrested by Bridgeport Police after he engaged officers in a foot pursuit. After HUERTAS was apprehended, officers located a black bag containing a loaded .22 caliber revolver that HUERTAS had discarded during the chase. At the time, HUERTAS was out on bond on state charges stemming from a series of arrests in 2014 for state domestic violence charges, including strangulation in the second degree, unlawful restraint and assault in the third degree. He was also subject to a protective order that requires he surrender or transfer all firearms and ammunition.
HUERTAS has a lengthy criminal history that dates to 1998.
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. It is also illegal for a person who is subject to a protective order to possess firearms.
On May 28, 2015, HUERTAS pleaded guilty in federal court to one count of possession of a firearm by a convicted felon.
As a special condition of supervised release, Judge Arterton ordered HUERTAS to abide by the terms and conditions of the protective order issued in connection with the state charges, which is in effect through 2025. The protective order requires that HUERTAS refrain from any contact with the victim, and that he stay at least 100 yards away from her.
“Our Office will continue to prioritize the prosecution of individuals who illegally possess firearms – particularly those defendants who engage in acts of domestic violence or other violent offenses,” said U.S. Attorney Daly. “Working closely with our state and local partners, we aim to ensure that federal resources are used most effectively to support these investigations and to protect vulnerable victims and our communities.”
This matter was investigated by the Bridgeport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Alina P. Reynolds in collaboration with the Domestic Violence prosecutors of the State’s Attorney’s Office, Fairfield Judicial District.
U.S. Attorney Daly noted that victims of domestic violence can call the National Domestic Violence Hotline at 800-799-SAFE (7233), or visit www.thehotline.org. Victims in Connecticut also can call the Connecticut Coalition Against Domestic Violence (CCADV) hotline at 888-774-2900 or (English) or 844-831-9200 (Español).
Former East Haven Zoning Official Admits Pocketing Payments from ResidentsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANK BIANCUR, JR., 41, of West Haven, waived his right to indictment and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to seeking and receiving illegal payments while employed as a Zoning Enforcement Officer for the Town of East Haven.
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.
In pleading guilty, BIANCUR also admitted that he sought and received $500 cash payments from two additional East Haven residents in order to resolve zoning violations.
BIANCUR pleaded guilty to one count of theft of honest services mail fraud, which carries a maximum term of imprisonment of 20 years. A sentencing date has not been scheduled.
BIANCUR has been released on a $20,000 bond since his arrest on May 27, 2015.
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 is being investigated by the Connecticut Public Corruption Task Force and the East Haven Police Department. The case is being 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.
East Lyme Fisherman Pleads Guilty to Federal Tax Evasion ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that PETER TORRES, 47, of East Lyme, Connecticut, waived his right to indictment and pleaded guilty yesterday before Chief U.S. District Judge Janet C. Hall in New Haven to one count of attempted tax evasion.
According to court documents and statements made in court, from 2006 to 2011, TORRES failed to file tax returns and report to the Internal Revenue Service approximately $1.27 million in gross income generated through his work as a commercial fishing boat captain. In pleading guilty, TORRES admitted that he was issued Forms 1099 that documented the income paid to him for each tax year, but he failed to timely file his tax returns as required and report the income and tax due to the IRS. In his plea agreement, TORRES agreed that the tax loss for this period is between $250,000 and $550,000.
TORRES also admitted that, in an effort to conceal his income from the IRS, he negotiated checks he received as payment for his fishing services by depositing them in the bank and, on the same day, withdrawing cash or obtaining bank checks in varying amounts under $10,000.
Judge Hall scheduled sentencing for February 22, 2016, at which time TORRES faces a maximum term of imprisonment of five years and a fine of up to $250,000. As part of his guilty plea, TORRES acknowledged that he attempted to evade the assessment and payment of his taxes for the 2006 through 2011 tax years and has agreed to enter into a payment plan with the IRS to repay the back taxes and applicable penalties and interest.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Former Wesleyan Student Admits Distributing Synthetic Drug That Caused Multiple OverdosesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ERIC LONERGAN, 23, of Rio de Janeiro, Brazil, pleaded guilty today in New Haven federal court to one count of conspiracy to possess with the intent to distribute, and to distribute, MDMA (“Molly”). The charge stems from an investigation into the distribution of controlled substances that caused multiple Wesleyan University students to overdose earlier this year.
“This defendant trafficked in a drug that caused multiple overdoses and nearly took the life of one Wesleyan student,” said U.S. Attorney Daly. “As evidenced by this investigation and prosecution, Molly and other synthetic drugs are clearly not innocuous party drugs. Students who use synthetic drugs can never be certain what they are ingesting. Wesleyan students who bought these drugs from this dorm-room chemist literally risked their lives by relying on his purported expertise. We thank the DEA, the Middlesex State’s Attorney’s Office and the Middletown Police Department for their collaboration and diligent work in this investigation.”
According to court documents and statements made in court, LONERGAN and Zachary Kramer were students at Wesleyan in Middletown, Connecticut. Beginning in approximately November 2013, LONERGAN began selling a substance he referred to as both “Molly” and MDMA to students on or in the vicinity of the Wesleyan campus. LONERGAN regularly sold Molly from his dorm room, charging approximately $20 per .1 gram, or $200 per gram, LONERGAN also counseled students on how to ingest Molly and other psychedelic drugs. At one point in 2014, after the administration at Wesleyan sent out a campus-wide communication warning of the dangers of ingesting controlled substances like Molly, LONERGAN responded by distributing a pamphlet instructing students on the use of psychedelic drugs.
In approximately September 2014, Kramer began purchasing what he believed to be Molly from LONERGAN and distributed it to students at Wesleyan. At times, LONERGAN used a chemical test on the substance he sold Kramer to prove to him that he was selling Kramer high-quality MDMA.
In September 2014, LONERGAN was the source of Molly for several students who were planning a “rolling” party at Wesleyan, which is a party where guests ingest Molly. He provided several grams of a substance he represented to be MDMA, in bulk, and another student then distributed it to students in .1 gram capsules. At this party, which occurred on September 13, 2014, several students became ill, some seriously, after ingesting the substance provided by LONERGAN. Two of these students were transported to the hospital. After these overdoses, LONERGAN sent electronic communications to several students assuring them that the substance he provided to them was indeed MDMA. One of the students who became ill at the party saved one of the capsules she had purchased and turned it over to the Middletown Police in February 2015. A lab test on the contents of that capsule revealed that it did not contain MDMA, but contained two other controlled substances: AB Fubinaca, a Schedule I controlled substance, and 6-MAPB, an analogue of MDMA.
In approximately December 2014, Kramer became the primary supplier of MDMA at Wesleyan. Kramer typically would sell the MDMA in .1 gram quantities for $20 each or he would sell it in 5-gram and 10-gram quantities for a discount, charging $100 or more, depending on the customer and the quantity. During this time period, LONERGAN still supplied Kramer with bulk quantities of MDMA. In approximately January 2015, Kramer purchased approximately 45 grams of MDMA from LONERGAN. Kramer broke that quantity into 5 and 10-gram bags and distributed those bags to other students who planned to break down the MDMA into .1 gram capsules, sell those capsules to other Wesleyan students, and pay Kramer for the quantity of the drug he had provided to them.
On February 21, 2015, 11 individuals, including 10 Wesleyan students, overdosed on a substance they believed was MDMA, and many were transported to the hospital. Two of the students were in critical condition, and one of the students had to be revived after his heart stopped. All of these students obtained the purported MDMA through individual distributers who were supplied directly by Kramer.
Although Kramer and some of his distributers destroyed the substance identified as Molly that they had in their possession, one of the distributers did not, and that substance was seized by law enforcement officers and sent to the toxicology laboratory for testing. Laboratory analysis confirmed that the powdered substance contained AB Fubinaca.
The charge of conspiracy to possess with the intent to distribute, and to distribute, MDMA carries a maximum term of imprisonment of 20 years and a maximum fine of $1 million. LONERGAN is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on February 25, 2016, in Hartford. He has been released on bond since his federal arrest on May 22, 2015.
On November 12, 2015, Kramer pleaded guilty to the same charge. He is scheduled to be sentenced by Judge Bryant on February 11, 2016.
This matter is being investigated by the Drug Enforcement Administration and the Middletown Police Department, with the assistance of the State of Connecticut’s Forensic Science Laboratory.
U.S. Attorney Daly acknowledged the support and assistance of the Middlesex State’s Attorney’s Office, which is prosecuting several state cases stemming from these overdose events.
The federal case is being prosecuted by Assistant U.S. Attorney Robert M. Spector and Senior Assistant State’s Attorney Eugene Calistro, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
U.S. Attorney's Office Settles Americans with Disabilities Act Case with Webster BankRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that the U.S. Attorney’s Office has reached a settlement with Webster Bank to ensure equal access for individuals with disabilities at all Webster Bank locations, pursuant to the Americans with Disabilities Act (“ADA”).
The agreement resolves an ADA complaint filed by an individual who is deaf who alleged that Webster Bank would not do business with him using a video relay service. Since the commencement of the investigation, Webster Bank has worked cooperatively to develop and amend its policies and practices to comply with the ADA and the Department of Justice’s implementing regulations.
“Individuals who have disabilities must not be denied equal access to the services offered by financial institutions,” said U.S. Attorney Daly. “Webster Bank’s cooperation during this investigation reflects the bank’s commitment to equal access and effective communication with all of its customers, including those with disabilities. Our office has also received complaints alleging that other financial institutions have refused to communicate with individuals with disabilities who use relay services to communicate by telephone. As such refusals suggest a discriminatory practice, we have begun a compliance review of banks in Connecticut to ensure that all such banks are complying with their obligations under the ADA.”
The agreement requires Webster Bank to accept video relay calls in all of its branches and to amend its policies, practices and training to ensure the removal of barriers to access at its branches.
Title III of the ADA prohibits discrimination against individuals with disabilities by businesses that serve the public. Among other things, the ADA requires financial institutions, accountants, lawyers, doctors and other businesses to provide auxiliary aids and services that are necessary for effective communication. For individuals who are deaf or hard of hearing, auxiliary aids include qualified sign language or oral interpreters, use of relay services, computer-assisted real time transcription, and, for simple communications, the exchange of written notes.
Individuals who believe that they may have been victims of discrimination can file a complaint with the U.S. Attorney’s Office at 203-821-3700. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Additional information about the ADA can be found at www.ada.gov, or by calling the Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
This matter was handled by Assistant U.S. Attorney Ndidi N. Moses with the assistance of the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Danbury Man Convicted of Defrauding InvestorsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal jury in New Haven today found IAN PARKER BICK, 20, of Danbury, guilty of fraud and money laundering offenses stemming from his operation of Ponzi scheme. The trial before U.S. District Judge Jeffrey Alker Meyer began on November 6.
“Mr. Bick repeatedly lied to victim investors, took their money and used it to take trips with friends, on shopping sprees, to purchase jet skis, and also to pay off previous investors who were promised unrealistic returns,” U.S. Attorney Daly said. “I thank the FBI, IRS Criminal Investigation, U.S. Postal Inspection Service, Connecticut Department of Banking and Danbury Police Department for their diligent investigation and prosecution of this matter.”
According to the evidence at trial, BICK was a principal and/or managing member of various Danbury-based entities, including This Is Where It’s At Entertainment, LLC, Planet Youth Entertainment, W&B Wholesale, LLC, and W&B Investments, LLC. Using these entities, BICK solicited investment funds from his friends, former classmates, acquaintances, and their parents by promising high investment returns over relatively short periods of time. BICK falsely represented to victim-investors that he could generate the high investment returns by using their funds to purchase electronics and electronic devices, such as iPhones, tablets and head phones, and by reselling the items for a substantial profit via the Internet. However, the electronic resale business never actually began in earnest and did not return any meaningful profit. BICK also falsely represented to certain victim-investors that he could generate high investment returns by using their funds to organize and promote concerts at various venues in Connecticut and Rhode Island. BICK falsely represented that he had made significant profits organizing and promoting concerts in the past.
BICK failed to invest the funds he received as he had represented and instead used invested funds for unrelated and unsuccessful businesses, and to pay personal expenses, including hotel stays and to purchase jet skis. BICK also used invested funds to issue payments, purportedly as “interest payments” and as “return of principal,” to certain victim-investors.
Through this scheme, BICK defrauded more than 15 investors out of a total of nearly $500,000.
BICK was charged in a 15-count indictment on January 8, 2015. The jury found BICK guilty on six counts of wire fraud, which carry a maximum term of imprisonment of 20 years on each count, and one count of money laundering, which carries a maximum term of imprisonment of 10 years.
The jury found BICK not guilty on two counts of wire fraud and one count of making a false statement to federal law enforcement, and could not reach a verdict on three counts of wire fraud and one count of money laundering. The government dismissed one count of money laundering prior to the trial.
Judge Meyer scheduled sentencing for March 2, 2016. BICK is released on a $250,000 bond.
This matter has been investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with the assistance of the Connecticut Department of Banking and the Danbury Police Department. The case is being prosecuted by Assistant U.S. Attorneys Michael S. McGarry and Christopher W. Schmeisser.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
Former Connecticut Resident Who Operated Investment Schemes Sentenced to 27 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSEPH T. MORRIS, 52, of Fort Lauderdale, Fla., formerly of Connecticut, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 27 months of imprisonment, followed by three years of supervised release, for operating two investment schemes that defrauded individuals out of more than $200,000.
According to court documents and statements made in court, MORRIS and two other individuals formed a company in October 2011 to develop business opportunities in Iraq. The company’s initial focus was on establishing a pizza restaurant at the U.S. Consulate compound in Erbil, Iraq, and establishing a business to distribute and install specialty window film on vehicles and at hotels, residences, and government buildings, which would protect windows and windshields from blast and breakage, and provide heat retention, ultra-violet shielding, and privacy. MORRIS was the company’s in-country manager in Iraq.
MORRIS made numerous fraudulent representations to his co-founders regarding the restaurant and the window film business, knowing that the representations would be communicated to potential investors to induce them to invest in the company. Through the use of fraudulent emails and photographs, MORRIS falsely represented that a lease had been signed to establish a pizzeria on the U.S. consulate compound in Erbil, that renovations were underway, and that progress was being made toward completing renovations and opening the restaurant. MORRIS also falsely represented that the company had an exclusive arrangement with a specialty window film manufacturer to distribute and install the window film in all of Iraq. Based on these misrepresentations, MORRIS caused approximately a dozen investors, most of whom were U.S. military veterans, to invest approximately $175,000 in the company. Instead of using the money from investors to pay for legitimate business expenses, MORRIS diverted large sums of money for his own personal use.
The scheme was revealed in late April to early May 2012 when one of the co-founders discovered that the company did not have a lease or agreement to open and operate a pizza restaurant at the U.S. consulate compound in Erbil and that the company did not have an exclusive arrangement with a window film manufacturer to distribute and install specialty window film in Iraq.
Between May 2012 and December 2012, MORRIS also defrauded two individuals out of a total of approximately $20,000 in start-up money that they provided to MORRIS as part of a plan to create an air cargo company based in Ghana. Instead of using the funds for business expenses, MORRIS diverted large sums of money for his personal use.
As part of his sentence, MORRIS was ordered to pay restitution in the amount of $205,849.
MORRIS pleaded guilty to one count of wire fraud on June 9, 2015, and has been released on bond. He was ordered to report to prison on January 15, 2016.
This matter was investigated by the U.S. Secret Service, the Wilton Police Department and the Connecticut Financial Crimes Task Force, which includes federal, state and local law enforcement agencies. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Hartford Man Sentenced to 51 Months in Federal Prison for Possessing Heroin, FirearmRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on November 20, JOEL DELEON, 34, of Hartford, was sentenced by U.S. District Judge Michael P. Shea in Hartford to 51 months of imprisonment, followed by four years of supervised release, for possession of heroin with intent to distribute.
According to court documents and statements made in court, on November 19, 2014, Hartford Police Department detectives observed DELEON engage in what they believed to be a hand-to-hand narcotics transaction. The detectives stopped DELEON’s vehicle and, upon questioning, DELEON admitted that he had narcotics and a handgun. A search of the vehicle’s glove box revealed approximately 30 individualized bags of heroin and a High Standard Sentinel .22 caliber revolver, which had an obliterated serial number and was loaded with nine rounds of .22 caliber ammunition.
DELEON has been detained since his arrest on November 19, 2014. On August 28, 2015, he pleaded guilty to one count of possession of heroin with intent to distribute.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and Gabriel J. Vidoni.
Detroit Man Sentenced to 4 Years in Prison for Role in Smash-and-Grab Robbery of Stamford Jewelry StoreRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRIAN MOORE, 26, of Detroit, Michigan, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 48 months of imprisonment, followed by three years of supervised release, for organizing and carrying out a smash-and-grab robbery of a Stamford jewelry store in November 2014.
According to court documents and statements made in court, on November 26, 2014, three of MOORE’s accomplices, armed with hammers, entered Sidney Thomas Jewelers in the Stamford Town Center Mall during regular business hours. Soon after entering, the accomplices used the hammers to smash open a jewelry display case and removed more than $250,000 worth of Rolex watches. The three accomplices then fled with security guards in pursuit. One of MOORE’s accomplices, Richard Mathew Bailey, was caught and apprehended inside the mall while fleeing.
MOORE helped organize and carry out the robbery by soliciting others to participate and partially funding it. He also drove accomplices from Detroit to Stamford to carry out the robbery, and picked them up after the robbery in order to return to Detroit.
Judge Bolden also ordered MOORE to pay restitution to victims in an amount to be determined at a later date.
On August 31, 2015, MOORE pleaded guilty to one count of interfering with commerce by robbery.
Richard Mathew Bailey and a third defendant, Dajuhn Griffin, both from Detroit, have pleaded guilty to the same charge and await sentencing.
This case was investigated by the Federal Bureau of Investigation and the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.
Hartford Man Sentenced to Federal Prison for Illegally Possessing FirearmRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSE SERRANO, 30, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day imprisonment, followed by two years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, in February 2015, during an ongoing investigation into drug trafficking activities in Hartford, the Federal Bureau of Investigation (“FBI”) obtained information that an individual, later identified as SERRANO, was seeking to sell a handgun. On February 11, 2015, SERRANO sold a Kel-Tec, Model P-11, 9mm handgun, which was loaded with nine rounds of ammunition, to an individual who was cooperating with law enforcement, in exchange for $750.
SERRANO was arrested at his residence on June 15, 2015. A subsequent search of his residence revealed approximately 300 rounds of assorted .380 and 9mm caliber ammunition, approximately five pounds of “Kisha Kole” synthetic marijuana packages, approximately 4.6 grams of marijuana and $6,523 in cash. Following SERRANO’s arrest, he and his wife forfeited two additional handguns.
In 2007, SERRANO was convicted of a felony offense involving unlawful possession of a handgun. 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.
SERRANO has been detained since his arrest. On September 3, 2015, he pleaded guilty to one count of possession of a firearm by a convicted felon.
State charges related to the possession of synthetic marijuana are pending against SERRANO.
This case was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and Gabriel J. Vidoni.
Easton Man Charged with Defrauding Distressed HomeownersRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Christina Scaringi, Special Agent in Charge of the Northeast Region of HUD’s Office of Inspector General, William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, and James V. Buthorn, Acting Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, announced that TIMOTHY W. BURKE, also known as “Tim Burke,” “William Burke,” “Bill Burke,” “Jeff Burke,” “Kerry Saunders,” “Pat Riley,” “Jim Caldwell,” “Jim Saunders,” “Tom Morrisey,” “Jimmy,” “Phil Burke,” “Phil,” and “Burt,” 64, of Easton, was arrested today on a federal criminal complaint charging him with operating a long-running fraud scheme that targeted distressed homeowners.
BURKE appeared this afternoon before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and is detained. A detention hearing is scheduled for Monday, November 23, at 11:15 a.m.
As alleged in the criminal complaint, since at least May 2008 and continuing to at least September 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 complaint 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, taxes, insurance, association dues, or other expenses, and he failed to pay any rental income he was collecting to the homeowners. The investigation revealed that homeowners often discovered on their own, and to their surprise, that BURKE had rented out their houses. Many of the properties BURKE purportedly purchased were ultimately foreclosed upon by the mortgage lender.
The complaint alleges that BURKE’s fraud scheme has involved dozens of residential properties throughout Connecticut, and that BURKE has made hundreds of thousands of dollars to which he was not entitled. As part of the scheme, 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. The investigation has revealed that 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; and The Complete Handyman, LLC.
The complaint 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 five years imprisonment and three years of supervised release. BURKE was released from federal custody in approximately August 2007 and began his federal supervised release at that time. One of the special conditions of BURKE’s supervised release was that he refrain from employment in the real estate business or mortgage industry.
The criminal complaint charges BURKE with mail fraud, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and 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 investigation is being conducted by the U.S. Department of Housing and Urban Development – Office of Inspector General, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with the critical assistance of the Middletown, Plainville, Easton and Coventry Police Departments, and the Connecticut State Police. This case is being prosecuted by Senior Litigation Counsel Richard J. Schechter and Assistant U.S. Attorney David T. Huang.
Insurance Broker Sentenced to 3 Years in Federal Prison for Stealing Millions from AetnaRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BONNEY J. HEBERT, 60, of Killington, Vermont, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 36 months of imprisonment, followed by three years of supervised release, for stealing more than $10 million from Hartford-based Aetna Life Insurance Company.
According to court documents and statements made in court, HEBERT was the sole owner and president of Academic Risk Resources and Insurance, LLC (“ARRI”), a risk management and insurance brokerage agency based in Boston. ARRI’s business included brokering insurance contracts between health insurance providers and colleges or universities in order to provide health insurance for students and other individuals affiliated with the college or university. In July 2007, HEBERT and ARRI began serving as the broker for a student health insurance contract entered into between Aetna and Rutgers, the State University of New Jersey. The contract between Aetna and Rutgers provided that premiums would be paid by Rutgers to ARRI and then transmitted by ARRI to Aetna.
Between 2009 and 2012, HEBERT failed to pass along to Aetna $10,358,728 in premiums paid by Rutgers. She used the stolen funds on personal expenses and to cover the business expenses of ARRI.
On June 2, 2015, HEBERT pleaded guilty to one count of wire fraud and one count of engaging in monetary transactions in property derived from specified unlawful activity.
HEBERT disclosed her fraudulent scheme to Aetna representatives in June 2012. She subsequently sold ARRI to another business and directed that payments related to the sale be made directly to Aetna. Through these payments, HEBERT has repaid Aetna approximately $1.59 million. HEBERT also has not collected more than $900,000 in commissions owed to her by Aetna. As a result, HEBERT currently owes Aetna $7,846,305.45 in restitution.
This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Avi M. Perry.