District of Connecticut

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MARK LEIGH-JAMES, also known as “Rich,” 23, of Stratford, has been indicted on narcotics trafficking and firearm possession offenses.

This matter stems from an investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Fairfield Police Department.  As alleged in court documents, in July and August 2015, Fairfield Police made four controlled purchases of a total of approximately 58 grams of methamphetamine from LEIGH-JAMES.  In August and September 2015, Fairfield Police and the DEA Task Force made two additional controlled purchases of a total of approximately 187 grams of methamphetamine from LEIGH-JAMES.

October 5, 2015, LEIGH-JAMES was arrested on federal criminal complaint.  At the time of his arrest, LEIGH-JAMES was carrying a backpack that contained approximately 7.5 grams of heroin.  A subsequent search of LEIGH-JAMES’ vehicle revealed a second backpack containing approximately 120 grams of methamphetamine, a loaded .380 semi-automatic handgun and a loaded .44 magnum revolver.

On October 14, 2015, a federal grand jury in Bridgeport returned a nine-count indictment charging LEIGH-JAMES with two counts of possession with intent to distribute, and distribution of, 50 grams or more of methamphetamine, and one count of possession with intent to distribute 50 grams or more of methamphetamine.  These charges carry a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.

The indictment also charges LEIGH-JAMES with four of possession with intent to distribute, and distribution of, methamphetamine, one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.  If convicted of the firearm offense, LEIGH-JAMES faces a mandatory consecutive term of imprisonment of five years.

LEIGH-JAMES has been detained since his arrest.

This matter is being investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Fairfield Police Department.  The Task Force includes personnel from the DEA, Connecticut State Police, Norwalk Police Department, Stamford Police Department, Stratford Police Department and Milford Police Department.  The case is being prosecuted Assistant U.S. Attorney Amy C. Brown.

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.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DONALD GAINES, also known as “Stretch” and “Shorty,” 35, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by three years of supervised release, for participating in a drug robbery scheme.

This matter stems from “Operation Samson,” a multi-layered initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking.  In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.

According to court documents and statements made in court, during the operation, an undercover agent and a confidential informant made several controlled purchases of suspected crack cocaine from GAINES.  During their contact, the informant asked GAINES if he and anyone he knew would be interested in committing a drug robbery.  GAINES stated that he did not want to participate in the robbery itself, but introduced the informant and the undercover agent to Harold Harrington, also known as “Chopper” and “Chapo.”  The undercover agent told Harrington that he wanted to hire someone to commit a home invasion robbery of a drug organization’s “stash house” in order to steal six to eight kilograms of cocaine.  Harrington agreed to participate and helped plan the robbery, which would include the use of firearms.  Harrington also stated that he would bring members of his crew to help commit the robbery.

The undercover agent and Harrington agreed to split the cocaine taken during the robbery, and they agreed to give GAINES one kilogram of the drug for putting the two individuals together.

On March 21, 2014, the day of the proposed robbery, Harrington arrived at the meeting location with Louis Toler, also known as “A.B.”  After Harrington, Toler and the undercover agent had a detailed discussion about how the robbery was going to be carried out, Harrington and Toler were arrested.  A subsequent search of Toler’s car revealed a loaded firearm.

The informant then called GAINES, told him the robbery had gone smoothly and arranged to meet him to deliver the cocaine.  When GAINES arrived at the designated location, he identified the law enforcement surveillance and drove off at a high rate of speed.  After a short chase, GAINES crashed his car on an off ramp in West Haven, attempted to flee on foot and was apprehended.

GAINES has been detained since his arrest.  On May 5, 2015, he pleaded guilty to one count conspiracy to interfere with commerce by robbery.

Harrington pleaded guilty to one count of conspiracy to interfere with commerce by robbery and, on November 3, 2015, was sentenced to 72 months of imprisonment.  Toler pleaded guilty to one count of possession of a firearm by a convicted felon and, on November 4, 2015, was sentenced to 77 months of imprisonment.

This case was prosecuted by Assistant U.S. Attorneys Tracy Dayton and Robert Spector.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MATTHEW GOLDREICH, 46, of East Lyme, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to two years of probation, including three months of home confinement, for producing and disseminating false advertisements for mortgage modification services.  Chief Judge Hall also ordered GOLDREICH to pay a $100,000 fine and $75,794 in restitution.

According to court documents and statements made in court, in March 2009, the U.S. Department of the Treasury created the Home Affordable Modification Program (“HAMP”), which consisted of a number of incentives to encourage struggling homeowners and financial institutions to modify existing loans on owner-occupied primary residences in order to help keep these properties out of foreclosure.

Between approximately May 2009 and February 2013, GOLDREICH used his New London-based media agency, National Media Connection, LLC, to produce and air television, radio, and Internet advertisements for the National Mortgage Help Center, LLC (“NMHC”), a shell company incorporated by GOLDREICH.  The advertisements falsely claimed that NMHC could help struggling homeowners obtain home mortgage loan modifications.  Many of the advertisements also falsely depicted NMHC as affiliated with the federal government, including through references to government stimulus programs and the use of President Barack Obama’s image.  One advertisement that aired in 2010 stated:  “Attention homeowners.  We know it’s tough out there.  And while America’s homeowners are facing more challenges than ever before, the National Mortgage Help Center is ready to help.”  The same advertisement also stated:  “We may be able to lower your rate to as low as 1% and cut your mortgage payment in half.  Our trained specialists know all the new regulations to get you quick relief.  We help thousands of homeowners every day.”

The advertisements included toll-free telephone numbers for mortgage borrowers to call for help modifying their mortgages.  In truth, NMHC did not provide mortgage modification services for any homeowners, and operated only as a front.  Homeowners who called the toll-free telephone numbers advertised by NMHC were routed to National Media Connection’s clients.  The clients, in turn, paid National Media Connection for these “leads.”  Under the pretense of helping homeowners modify their mortgages, certain National Media Connection clients then charged the homeowners fees and provided no services whatsoever in return.

As a result of the advertisements, several struggling homeowners across the United States were defrauded by unscrupulous clients of GOLDREICH’s media company, and some are in danger of losing their homes.

On August 13, 2015, GOLDREICH pleaded guilty to one count of false advertising.

This investigation is being conducted by the U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, and Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorneys Avi Perry and Liam Brennan.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JERROD HALL, also known as “Slime,” 22, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 12 months and one day of imprisonment, followed by one year of supervised release, for his role in a crack cocaine trafficking ring.

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,” 24, as the leader of the Westhell street gang who, along with his associates distributed crack cocaine in the Westland Street area of Hartford.  HALL was intercepted over wiretaps engaging in conversations related to the distribution of crack cocaine.

At the time of this offense, HALL was released on a state bond based on his arrest in July 2011 for carrying a pistol without a permit, second degree burglary and interfering/resisting arrest.  In October 2011, HALL was shot in the vicinity of 129 Barbour Street in Hartford.

On April 1, 2015, HALL pleaded guilty to one count of using a telephone to facilitate a narcotics trafficking offense.

HALL was arrested on April 30, 2014, and had been released on bond.  At the conclusion of today’s court proceeding, he was remanded to begin serving his sentence.

Twenty-five individuals were charged as a result of the investigation.  Scott and 22 other defendants pleaded guilty to various offenses.  One defendant was shot and killed while his case was pending.  Scott awaits sentencing.

This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division.  The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.  The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants.  The 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.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JASON TORRANCE, 44, of East Haddam, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 20 months of imprisonment, followed by three years of supervised release, for engaging in a fraud scheme.

 According to court documents and statements made in court, between approximately March 2008 and August 2012, TORRANCE and Adam Meyers devised a scheme to defraud their employers by arranging for payment on goods that never shipped and instead diverting those payments to themselves.  TORRANCE worked out of the New Haven branch of a New Jersey-based electrical and industrial supply company (“Distributor-1”), and Meyers was a project manager for a New Britain-based electrical subcontractor (“Contractor”) that frequently purchased supplies from Distributor-1.  In addition, Daniel Wall operated Bob Wall and Associates, a Cheshire-based distributor of electrical and other related equipment.

As part of the scheme, Meyers identified to TORRANCE projects on which he believed the profit margin for Contractor would permit them to divert excess profits to themselves without Contractor becoming aware.  Meyers would submit a purchase order for materials to TORRANCE.  TORRANCE then submitted a purchase order to Wall for the goods listed on the purchase order sent by Meyers.  Wall then submitted an invoice to Distributor-1 for the materials listed on the purchase order, and Distributor-1 paid the invoice by mailing a check to Bob Wall and Associates.  Distributor-1 then invoiced Contractor for the goods that were on the purchase order and Contractor issued a check to Distributor-1.  Wall then hand-delivered a business check to TORRANCE for approximately 90 percent of the money that had been paid by Distributor-1 to Bob Wall and Associates, and Wall retained the remaining 10 percent as his share of the proceeds from the scheme.  TORRANCE then paid out a portion of the proceeds of the scheme to Meyers.

At no time did any product on the purchase orders actually ship to the customer.

The victim companies lost more than $600,000 as a result of this scheme.

On February 23, 2015, TORRANCE and Meyers each pleaded guilty to one count of conspiracy to commit mail fraud.  On July 15, 2015, Wall pleaded guilty to one count of misprision of a felony.  On October 30, 2015, Meyers, 44, of Southbury, was sentenced to 18 months of imprisonment, followed by three years of supervised release, and Wall, 59, of Bridgeport, was sentenced to three years of probation, the first 12 months of which he must serve in home confinement.

Restitution will be determined after additional court proceedings.

This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorneys David E. Novick and William J. Nardini.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LOUIS TOLER, also known as “A.B.,” 46, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 77 months of imprisonment, followed by three years of supervised release, for participating in a drug robbery scheme.

This matter stems from “Operation Samson,” a multi-layered initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking.  In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.

According to court documents and statements made in court, during the operation, an undercover agent and a confidential informant made several controlled purchases of suspected crack cocaine from Donald Gaines, also known as “Stretch” and “Shorty,” of New Haven.  During their contact, the informant asked Gaines if he and anyone he knew would be interested in committing a drug robbery.  Gaines stated that he did not want to participate in the robbery itself, but introduced the informant and the undercover agent to Harold Harrington, also known as “Chopper” and “Chapo.”  The undercover agent told Harrington that he wanted to hire someone to commit a home invasion robbery of a drug organization’s “stash house” in order to steal six to eight kilograms of cocaine.  Harrington agreed to participate and helped plan the robbery, which would include the use of firearms.  Harrington also stated that he would bring members of his crew to help commit the robbery.

The undercover agent and Harrington agreed to split the cocaine taken during the robbery, and they agreed to give Gaines one kilogram of the drug for putting the two individuals together.

On March 21, 2014, the day of the proposed robbery, Harrington arrived at the meeting location with TOLER.  After TOLER, Harrington, and the undercover agent had a detailed discussion about how the robbery was going to be carried out, TOLER and Harrington were arrested.  A subsequent search of TOLER’s car revealed a loaded firearm.

The informant then called Gaines, told him the robbery had gone smoothly and arranged to meet him to deliver the cocaine.  When Gaines arrived at the designated location, he identified the law enforcement surveillance and drove off at a high rate of speed.  After a short chase, Gaines crashed his car on an off ramp in West Haven, attempted to flee on foot and was apprehended.

TOLER has been detained since his arrest.  On May 1, 2015, he pleaded guilty to one count of possession of a firearm by a convicted felon.

TOLER’s criminal history includes approximately 29 misdemeanor and felony convictions, including convictions for assault, threatening, burglary, sale of narcotics and unlawful possession of a weapon.

Gaines and Harrington each previously pleaded guilty to one count of conspiracy to interfere with commerce by robbery.  On November 3, 2015, Harrington was sentenced to 72 months of imprisonment.  Gaines awaits sentencing.

This case is being prosecuted by Assistant U.S. Attorneys Tracy Dayton and Robert Spector.

United States Attorney Deirdre M. Daly, representatives from federal, state and local law enforcement, and social service agencies today announced the formation of the Connecticut Human Trafficking Task Force to combat commercial sexual and labor exploitation in Connecticut.

This Human Trafficking Task Force includes representatives from Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Department of Labor, the Connecticut State Police and police departments from 14 cities and towns across Connecticut, including Bridgeport, East Hartford, Greenwich, Hamden, Hartford, Milford, Naugatuck, New Haven, Norwalk, Stamford, Stratford, Waterbury, West Haven and Windsor Locks.  Additional police departments have been or will be invited to participate and are also expected to join the Task Force.

Committed to a victim-centered model, the Task Force will partner with social service agencies and organizations, including the Connecticut Department of Children and Families and the International Institute of Connecticut, which help to identify and report suspected trafficking and then provide needed support for trafficking victims.

“Over the last several years, it has become increasingly clear that human trafficking, and particularly the sex trafficking of minors – the cruel victimization of defenseless young women and men – is a form of modern day slavery,” said U.S. Attorney Daly.  “Despite the best efforts of law enforcement, this criminal activity grows apace with the proliferation of Internet marketplaces where sex with children can be bought and sold.  This task force dramatically expands our resources by bringing together a broad group of trained and dedicated federal, state and local law enforcement authorities that will operate across jurisdictional boundaries throughout Connecticut. We are proud to be working collaboratively with the Department of Children and Families and the International Institute of Connecticut as these organizations provide critical support by identifying victims of these terrible crimes and giving them the support that they so desperately need.”

U.S. Attorney Daly noted that, in recent years, the U.S. Attorney’s Office for the District of Connecticut has prosecuted more than 20 individuals for sex trafficking offenses, most of which involved minor victims.  On Monday of this week, defendant Edward Thomas was sentenced to 210 months of imprisonment for trafficking 16 and 17 year-old girls in Milford and Windsor Locks.  Yesterday, a federal grand jury in New Haven returned an indictment charging Jordan Anate of New York with sex trafficking of a minor for more than four months in Connecticut and elsewhere.

The Task Force will be coordinated by Assistant U.S. Attorneys David Novick and Sarala Nagala who will lead monthly meetings with task force members to discuss investigatory leads and case developments. In December 2015, Homeland Security Investigations (HSI) will conduct a three-day training for a large group of police officers from participating departments and troopers from the Connecticut State Police.  Law enforcement officers who complete the training will be deputized as federal task force officers.

“Close collaboration between federal, state, local and NGO partners is the most effective way to tackle the issues of human trafficking involving forced labor and the sex trade,” said Special Agent in Charge Matthew Etre of HSI Boston.  “HSI’s victim-centered approach brings a unique perspective to the table that will blend well with the talented and resourceful people from our partner law enforcement agencies and local NGOs.  Working together to go after the criminal element that preys on victims who are unable or unprepared to defend themselves is at the forefront of our public safety initiatives at HSI.”

“The FBI is proud to work alongside our local, state and federal partners, and today’s announcement of this joint Task Force should serve as a warning to all who participate in the depravity and exploitation of human beings for profit, that such behavior will be vigorously investigated by a group focused on their specific types of criminal behavior,” said FBI Special Agent in Charge Patricia M. Ferrick.  “We intend to use every resource available to seek out and shut down those responsible for human trafficking in and around Connecticut.”

In October, the FBI and law enforcement partners conducted its ninth “Operation Cross Country,” a nationwide law enforcement action focusing on underage victims of prostitution.  The most recent operation resulted in the recovery of 149 sexually exploited children and the arrests of more than 150 pimps and other individuals.

“The most important thing the Department has learned in the last four years fighting Domestic Minor Sex Trafficking is the need to coordinate our efforts with all the partners we possibly can to ensure that we are being our most effective,” said Department of Children and Families Commissioner Joette Katz.  “That is why we have worked with thousands of law enforcement officials – from the FBI to local police departments around Connecticut – as well as medical, clinical and education professionals to make sure we are all informed and working together.  This task force will be another big step forward in realizing such an effective partnership.”

“We are pleased to be partnering with law enforcement here in Connecticut as part of the U.S. Attorney’s Office’s Human Trafficking Task Force,” said Alicia Kinsman of the International Institute of Connecticut.  “For nearly 10 years, the International Institute of Connecticut has worked to protect victims and is committed to eradicating human trafficking in our state.  It is a horrendous crime; one that exploits vulnerable populations and deprives them of their rights and freedom.  But with statewide coordination of law enforcement and victim service efforts, we know that here in Connecticut, we have the power to stop it.”

“The collaborative approach of the Task Force balances society’s need to ensure that justice is done for these despicable crimes, while at the same time meeting the needs of victims, who in far too many of these cases are only children,” said U.S. Attorney Daly.

U.S. Attorney Daly encouraged trafficking victims, and anyone who comes in contact with potential victims of trafficking, to call the National Human Trafficking Resource Center Hotline at 888-373-7888.  The hotline is run by the Polaris Project under a federal grant.  Hotline operators are trained to identify potential trafficking situations, and will immediately refer tips to law enforcement.  Individuals can also send an email to [email protected].

Trafficking victims also are encouraged to text “BEFREE” to receive an immediate response and help from the National Human Trafficking Resource Center.

Deirdre M. Daly, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, and Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, announced that DR. JOHN KATSETOS, 53, of Fairfield, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 84 months of imprisonment, followed by three years of supervised release, for illegally dispensing oxycodone and other controlled substances well outside of the scope of accepted medical practice, and for defrauding government healthcare programs.

“Dr. Katsetos repeatedly violated his oath to protect his patients from harm,” said U.S. Attorney Daly.  “He flooded our community with highly addictive controlled substances authorizing more than 2 million dosage units to more than 2000 patients.  His criminal conduct, which included ignoring the warnings of a doctor and pharmacists that certain patients clearly showed signs of addiction, caused dozens of his own patients to fall prey to opioid addiction.  At least one his former patients, who traveled approximately 180 miles from her home in New York to receive prescriptions from Dr. Katsetos, tragically died of an overdose.  This long prison term appropriately reflects the devastating harm he has caused.  The sentence will protect the community from this defendant and hopefully deter other medical practitioners who are inclined to put profit over patient health and safety.”

“The DEA is committed to investigating and bringing to justice those who divert and traffic oxycodone,” said DEA Special Agent in Charge Michael J. Ferguson.  “Opiate abuse is a major problem in Connecticut and throughout New England.  The diversion of prescription pain killers, in this case oxycodone, contributes to the widespread abuse of opiates, is a gateway to heroin addiction and is devastating our communities.  This investigation demonstrates the strength of collaborative law enforcement efforts in Connecticut and our strong partnership with the U.S. Attorney’s Office to aggressively pursue anyone that illicitly distributes these drugs.”

According to court documents and statements made in court, KATSETOS practiced medicine for more than 20 years, most recently out of offices located at 90 Morgan Street in Stamford and 353 Bridgeport Avenue in Milford.  The investigation, which included the use of undercover law enforcement personnel, revealed that KATSETOS failed to perform rudimentary examinations of patients to justify the controlled substances he prescribed, and that he had been warned by a doctor and several pharmacists, some of whom stopped filling his prescriptions, that he should stop prescribing oxycodone and other narcotic pain medications to certain patients who showed obvious signs of addiction.  KATSETOS ignored the warnings and continued to prescribe controlled substances, including oxycodone, to these patients outside of the usual course of professional practice and not for a legitimate medical purpose.

The investigation further revealed that KATSETOS’s conduct created opioid addictions in dozens of patients, led to the overdose death of a New York woman, and supplied individuals with a vast quantity of prescription pills that they illegally distributed to others.

From November 2011 to October 2013, KATSETOS authorized more than 2 million dosage units of Schedule II through IV controlled substances to more than 2000 patients.  This placed him as the eighth highest prescriber of such controlled substances in Connecticut – a list that includes hospitals.  He was the highest-ranked general practitioner on the list.

KATSETOS also saw multiple patients at once and billed Medicare and Medicaid for individual visits for each of those patients.

“We expect doctors to be part of the solution to America's prescription drug fraud epidemic -- not part of the problem,” said Special Agent in Charge Phillip Coyne, U.S. Department of Health and Human Services, Office of Inspector General.  “Dr. Katsetos violated the fundamental trust that taxpayers and patients extend to healthcare professionals.  This sentencing should serve as a warning to those who would abuse their positions for personal gain.”

On May 1, 2015, KATSETOS pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute narcotics, and one count of health care fraud.

As part of the sentence, Judge Bryant ordered KATSETOS to pay $497,789 in restitution, and to forfeit $550,000, which represents the value of his medical practice.

KATSETOS was arrested on July 1, 2014, and has been released on a $1 million bond.  At the conclusion of today’s court proceeding, he was remanded to begin serving his sentence.

This matter was investigated by the DEA’s New Haven Tactical Diversion Squad and the Office of Inspector General of the U.S. Department of Health and Human Services, with the assistance of the State of Connecticut Department of Consumer Protection Drug Control Division, and several local police departments.  The case was prosecuted by Assistant U.S. Attorneys Rahul Kale and Alina Reynolds.

U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling 1-800-HHS-TIPS.

U.S. Attorney Deirdre M. Daly today announced new supervisory appointments within the U.S. Attorney’s Office.

Assistant U.S. Attorney Tracy Lee Dayton has been appointed Executive Assistant U.S. Attorney.  Ms. Dayton joined the U.S. Attorney’s Office in 2007 and has served as Chief of the Violent Crimes and Narcotics Unit and as Senior Litigation Counsel.  Since 2012, she has been a member of the Attorney General’s Review Committee on Capital Crimes.  She previously served as an Assistant U.S. Attorney in the Eastern District of New York, and as a Deputy District Attorney in Los Angeles County.  Ms. Dayton graduated from Princeton University in 1992 and UC Berkeley School of Law in 1995.

Assistant U.S. Attorney David E. Novick has been named Chief of the Criminal Division’s Financial Fraud and Public Corruption Unit, which focuses on the investigation and prosecution of securities, commodities and investor fraud, public corruption, bank fraud and embezzlement, mortgage fraud, tax fraud, health care fraud, bankruptcy fraud and Foreign Corrupt Practices Act violations.  He previously served as a Deputy Chief of the FFPC Unit.  Mr. Novick joined the Office in 2008 after serving as an Assistant District Attorney in the Manhattan District Attorney’s Office for approximately five years.  He is a 1997 graduate of Yale University and a 2003 graduate of New York University School of Law.

Assistant U.S. Attorney Sarah P. Karwan has been named a Deputy Chief of the FFPC Unit.  Prior to joining the Office in 2007, Ms. Karwan was in private practice for six years, and served as a law clerk to Chief U.S. District Judge Alfred V. Covello.  She is a 1997 graduate of the College of William and Mary and a 2000 graduate of the UConn School of Law.

Assistant U.S. Attorney Liam Brennan of the FFPC Unit has been asked to lead the Connecticut Public Corruption Task Force, which investigates corrupt public officials, the misuse of public funds and related criminal activity.  Mr. Brennan joined the Justice Department’s Fraud Section in Washington, D.C. in 2007, and moved to the U.S. Attorney’s Office in 2011.  He graduated from the University of Notre Dame in 2001 and Yale Law School in 2007.

Assistant U.S. Attorney Jacabed Rodriguez-Coss has been appointed a Deputy Chief of the Criminal Division’s National Security and Major Crimes Unit, which is responsible for prosecuting matters involving international and domestic terrorism, civil rights and hate crimes, human trafficking and child exploitation, cybercrime and identity theft, organized crime, immigration and customs enforcement, government program and defense contractor fraud, and environmental crimes.  Prior to joining the Office in 2014, Ms. Rodriguez-Coss was an Assistant U.S. Attorney in both the District of Maryland and the District of Puerto Rico, and served as a trial attorney in the Capital Case Section of the Justice Department’s Criminal Division.  She graduated from Yale University in 1988 and Harvard Law School in 1991.

 “Our office is fortunate to have many experienced and talented attorneys dedicated to keeping our communities safe, enforcing federal laws fairly and consistently, and representing the interests of the United States in court,” said U.S. Attorney Daly.  “The AUSAs stepping into these supervisory roles are highly qualified and possess the skills and qualities to be effective and respected leaders.  I am honored to work side by side these men and women as well as all the members of our supervisory team.”

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.

For more information about the U.S. Attorney’s Office for the District of Connecticut, please visit www.justice.gov/ct.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HAROLD HARRINGTON, also known as “Chopper” and “Chapo,” 27, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 72 months of imprisonment, followed by three years of supervised release, for his participating in a drug robbery scheme.

This matter stems from “Operation Samson,” a multi-layered initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking.  In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.

According to court documents and statements made in court, during the operation, an undercover agent and a confidential informant made several controlled purchases of suspected crack cocaine from Donald Gaines, also known as “Stretch” and “Shorty,” of New Haven.  During their contact, the informant asked Gaines if he and anyone he knew would be interested in committing a drug robbery.  Gaines stated that he did not want to participate in the robbery itself, but introduced the informant and the undercover agent to Harrington.  The undercover agent told Harrington that he wanted to hire someone to commit a home invasion robbery of a drug organization’s “stash house” in order to steal six to eight kilograms of cocaine.  Harrington agreed to participate and helped plan the robbery, which would include the use of firearms.  Harrington also stated that he would bring members of his crew to help commit the robbery.

The undercover agent and Harrington agreed to split the cocaine taken during the robbery, and they agreed to give Gaines one kilogram of the drug for putting the two individuals together.

On March 21, 2014, the day of the proposed robbery, Harrington arrived at the meeting location with Louis Toler, also known as “A.B.,” of New Haven.  After Harrington, Toler and the undercover agent had a detailed discussion about how the robbery was going to be carried out, Harrington and Toler were arrested.  A subsequent search of Toler’s car revealed a loaded firearm.

The informant then called Gaines, told him the robbery had gone smoothly and arranged to meet him to deliver the cocaine.  When Gaines arrived at the designated location, he identified the law enforcement surveillance and drove off at a high rate of speed.  After a short chase, Gaines crashed his car on an off ramp in West Haven, attempted to flee on foot and was apprehended.

Harrington has been detained since his arrest.  On May 6, 2015, he pleaded guilty to one count of conspiracy to interfere with commerce by robbery.

Harrington has prior state felony convictions for criminal possession of a firearm, possession with intent to sell crack cocaine and first degree robbery.

On March 5, 2015, Gaines pleaded guilty to one count of conspiracy to interfere with commerce by robbery and, on May 1, 2015, Toler pleaded guilty to one count of possession of a firearm by a convicted felon.  They await sentencing.

This case is being prosecuted by Assistant U.S. Attorneys Tracy Dayton and Robert Spector.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that EDWARD THOMAS, also known as “Fire,” 41, of New York, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 210 months of imprisonment, followed by 10 years of supervised release, for sex trafficking of minors.  THOMAS also was ordered to pay $28,700 in restitution.

According to the evidence introduced during his trial, in September 2012, THOMAS, a New York-based pimp, answered an Internet prostitution advertisement for a 17-year-old girl (“MV1”) in Oregon.  Over the next month, THOMAS recruited and enticed MV1 to travel to New York to work for him.  MV1 eventually agreed and traveled to New York with a second girl (“MV2”), who was 16 at the time, using bus tickets purchased by THOMAS.  THOMAS discussed with both MV1 and MV2 that they would be prostituting for him in New York and Connecticut.

After MV1 and MV2 arrived in New York, THOMAS and the two minor girls went immediately to a hotel in Milford, Connecticut, where they met Kayla Walters, THOMAS’ co-defendant, and posted prostitution advertisements.  THOMAS knew that MV1 and MV2 were under the age of 18.  In Milford, MV1 and MV2 saw customers for commercial sex acts at the direction of THOMAS.  While MV2 escaped from a hotel room window after several hours, MV1 continued to work for THOMAS for about a month, turning over all of the money she earned in prostitution to THOMAS.  When MV1 attempted to leave, THOMAS forcibly restrained her.  Ultimately, MV1 was recovered for the first time by the FBI and local police in Milford on November 8, 2012.  Law enforcement seized nearly $4,000 in cash from THOMAS during the first recovery, along with several computers and cellular phones.

THOMAS recruited MV1 a second time in July 2013 and again paid for her travel from Oregon to the East Coast.  After THOMAS sent Walters and MV1 to Connecticut to make money for him, the FBI and local police again recovered MV1 from a hotel in Milford.

“For more than a decade, this defendant made his living from the commercial sexual exploitation of women, including young girls,” said U.S. Attorney Daly.  “He preyed on the vulnerabilities of two girls whom he lured across the country thousands of miles away from their families.  This cruel victimization of defenseless young women – a form of modern day slavery – will not be tolerated.  Prosecuting these offenses is a top priority for the Department of Justice.  This significant sentence will protect society and future victims from this defendant, and sends a clear message that those who sexually exploit minors will be held accountable.  We thank the FBI and the Milford and Stratford Police Departments for their excellent work in this investigation.  We will continue to work closely with our law enforcement partners to rescue girls and young women from brutal environments and prosecute those who profit from this reprehensible and illegal conduct.”

THOMAS and Walters have been detained since their arrests on February 28, 2014.

On January 26, 2015, a jury found THOMAS guilty of one count of conspiracy to commit sex trafficking of a minor and two counts of sex trafficking of a minor.

THOMAS’s criminal history includes a 2007 conviction in New Jersey for promoting prostitution with a child under the age of 18.

On November 10, 2014, Walters pleaded guilty to one count of conspiracy to commit sex trafficking of a minor.  Her sentencing is scheduled for November 30, 2015.

This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies.  The Stratford and Milford Police Departments assisted the investigation.

The case is being prosecuted by Assistant U.S. Attorneys David E. Novick and Sarala V. Nagala.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that two men were sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport for engaging in a fraud scheme.  ADAM MEYERS, 44, of Southbury, was sentenced to 18 months of imprisonment, followed by three years of supervised release, and DANIEL WALL, 59, of Bridgeport, was sentenced to three years of probation, the first 12 months of which he must serve in home confinement.

According to court documents and statements made in court, between approximately March 2008 and August 2012, MEYERS and Jason Torrance devised a scheme to defraud their employers by arranging for payment on goods that never shipped and instead diverting those payments to themselves.  Torrance worked out of the New Haven branch of a New Jersey-based electrical and industrial supply company (“Distributor-1”), and MEYERS was a project manager for a New Britain-based electrical subcontractor (“Contractor”) that frequently purchased supplies from Distributor-1.  WALL operated Bob Wall and Associates, a Cheshire-based distributor of electrical and other related equipment.

As part of the scheme, MEYERS identified to Torrance projects on which he believed the profit margin for Contractor would permit them to divert excess profits to themselves without Contractor becoming aware.  MEYERS would submit a purchase order for materials to Torrance.  Torrance then submitted a purchase order to WALL for the goods listed on the purchase order sent by MEYERS.  WALL then submitted an invoice to Distributor-1 for the materials listed on the purchase order, and Distributor-1 paid the invoice by mailing a check to Bob Wall and Associates.  Distributor-1 then invoiced Contractor for the goods that were on the purchase order and Contractor issued a check to Distributor-1.  WALL then hand-delivered a business check to Torrance for approximately 90 percent of the money that had been paid by Distributor-1 to Bob Wall and Associates, and WALL retained the remaining 10 percent as his share of the proceeds from the scheme.  Torrance then paid out a portion of the proceeds of the scheme to MEYERS.

At no time did any product on the purchase orders actually ship to the customer.

The victim companies lost more than $600,000 as a result of this scheme.  Restitution will be determined after additional court proceedings.

On February 23, 2015, MEYERS and Torrance each pleaded guilty to one count of conspiracy to commit mail fraud.  On July 15, 2015, WALL pleaded guilty to one count of misprision of a felony.  Torrance awaits sentencing.

This matter has been investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys David E. Novick and William J. Nardini.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSE COLON, also known as “Uncle Benny,” 50, of Manchester, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 24 months of imprisonment, followed by three years of supervised release, for distributing heroin.

According to court documents and statements made in court, this matter stems from a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department into gang-related narcotics trafficking in Hartford’s South End.  The investigation specifically targeted a drug trafficking organization headed by Angel Rosa, aka “Little” and “Daddy,” who is a member of the Los Solidos street gang.  Rosa’s cousin, Angel Rosa, aka “Mo Betta” and “Fab,” supervised the daily operations of the organization, which distributed heroin and other narcotics in the Zion Street area.

In April 2013, COLON was intercepted over a court-authorized wiretap and was identified as a source of heroin for the Rosa organization.

As a result of the investigation, 21 individuals were charged with various federal offenses, and law enforcement officers seized narcotics, one firearm, approximately $230,000 in cash, eight vehicles and jewelry.

COLON was arrested on April 25, 2013.  On that date, FBI Task Force officers and Manchester Police executed a search warrant at his residence and seized a number of items that subsequently were forfeited, including $7,800 in cash, a watch valued at $46,850, two vehicles, two jet skis and two motorcycles.

On April 4, 2014, COLON pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.

Angel Rosa aka “Little” and Angel Rosa aka “Mo Betta” each pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.  On May 15, 2014, “Little” was sentenced to 235 months of imprisonment and, on April 29, 2014, “Mo Betta” was sentenced to 165 months of imprisonment.

This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Connecticut State Police, Hartford Police Department, East Hartford Police Department, Connecticut Department of Correction and Connecticut National Guard.  The Connecticut State Police’s Emergency Services Unit, Hartford Police Department’s Emergency Response Team, Capital Region Emergency Response Team, Drug Enforcement Administration, Homeland Security Investigations and the New Britain, East Hartford, Wethersfield and Manchester Police Departments have provided valuable assistance to the investigation.

The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Patrick Caruso.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL MURPHY, 27, of Bridgeport, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 120 months of imprisonment, followed by three years of supervised release, for selling numerous firearms that had been stolen from the Smith & Wesson manufacturing plant in Springfield, Mass.

According to court documents and statements made in court, on November 8, 2012, Elliot Perez, a truck driver for Pace Motor Lines, picked up five boxes of firearms from the Smith & Wesson manufacturing plant in Springfield and placed the boxes in his truck.  At the same time, Perez stole three additional boxes containing a total of 111 firearms.  He then drove the truck containing all the firearms to his residence in Bridgeport where he met MURPHY.  Shortly thereafter, Perez delivered the original five boxes of firearms to the trucking company’s distribution center in Stratford.

Perez and MURPHY stored and ultimately sold many of the stolen guns.  More than 50 of the stolen firearms have not been recovered by law enforcement.

Perez and MURPHY were originally arrested by the Stratford Police Department on state firearms charges.  MURPHY has been in custody since his federal arrest on November 30, 2012.

On December 12, 2013, MURPHY pleaded guilty to one count of conspiracy to possess and sell stolen firearms, and one count of possession of firearms by a convicted felon.

Perez has been in custody since his state arrest on November 23, 2012.  On February 11, 2014, he pleaded guilty to one count of conspiracy to possess and sell stolen firearms, one count of possession of firearms by a convicted felon, and one count of making a false statement to a federal law enforcement officer.  On October 27, 2015, he was sentenced to 210 months of imprisonment.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Stratford Police Department and the Bridgeport Police Department.  The case was prosecuted by Assistant U.S. Attorney Rahul Kale.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that on October 28, 2015, a federal grand jury in Bridgeport returned a four-count indictment charging HUGO TEJEDA, 23, IVAN LERMA, also known as “Aurelia Llano” and “Miguel Cardona,” 24, and VLADIMIR RODRIGUEZ-LARA, 35, all of Waterbury, with trafficking “black tar” heroin.

As alleged in court documents, in August 2015, the Drug Enforcement Administration received information that an individual was in possession of approximately 1.5 kilograms of “black tar” heroin from Mexico and was searching for a buyer.  The DEA subsequently identified the individual as TEJEDA, and LERMA and RODRIGUEZ-LARA as his associates.  On August 10 and August 20, TEJEDA drove LERMA to meetings at which LERMA supplied black tar heroin to confidential informants working for the DEA.  On August 13, 2015, TEJEDA drove LERMA to a meeting during which LERMA agreed to sell 1.5 kilograms of heroin to a confidential informant in exchange for $76,000.

On August 27, 2015, TEJEDA, LERMA and RODRIGUEZ-LARA were arrested when they attempted to sell the 1.5 kilograms of heroin to the confidential informants.

The indictment charges TEJEDA, LERMA and RODRIGUEZ-LARA with conspiracy to possess with intent to distribute one kilogram or more of heroin, and possession with intent to distribute, and distribution of, one kilogram or more of heroin, offenses that carry a mandatory minimum term of imprisonment of 10 years and a maximum term of life in prison. The indictment also charges TEJEDA and LERMA with possession with intent to distribute, and distribution of, a mixture and substance containing a detectable amount of heroin, offenses that carry a maximum term of imprisonment of 20 years.       

The defendants were originally arrested on federal criminal complaints.  LERMA has been detained since his arrest, and TEJEDA and RODRIGUEZ-LARA are each released on a $50,000 bond.

This investigation has been conducted by the Bridgeport High Intensity Drug Trafficking Area Task Force, which includes personnel from the DEA, Connecticut State Police and the Norwalk, Stamford, Stratford and Milford Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Amy C. Brown.

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 DAVID BENINCASA, 34, and SCOTT BENINCASA, 32, both of Danbury, waived their right to indictment and pleaded guilty yesterday in Hartford federal court to federal tax offenses.

According to court documents and statements made in court, DAVID BENINCASA and his brother, SCOTT BENINCASA, were 50 percent owners in Goodhouse Flooring, LLC, a business that provides floor installation and flooring products to retail and commercial customers.  DAVID BENINCASA assisted SCOTT BENICASA with the daily operations of the business, but had primary responsibility for the financial aspects of the business.  For the 2008 through 2010 tax years, DAVID and SCOTT BENINCASA intentionally understated gross receipts from their business on the Schedule C attached to their respective federal personal income tax filings.  During those years, the brothers failed to accurately report the expenses incurred in running their business, as they paid certain laborers who worked for their business in cash and then failed to reflect the cash payments on their filed returns.

The additional tax due and owing attributable to DAVID and SCOTT BENINCASA’s criminal conduct is $238,274 and $47,076, respectively.

In pleading guilty, SCOTT BENINCASA also admitted that, during an IRS civil audit, he submitted a false real estate log and business schedule in an effort to improperly justify previously taken deductions on his 2009 federal personal income tax return.

DAVID BENINCASA pleaded guilty to one count of tax evasion, which carries a maximum term of imprisonment of five years.  He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on January 25, 2016.  SCOTT BENINCASA pleaded guilty to one count of filing a false tax return, which carries a maximum term of imprisonment of three years.  He is scheduled to be sentenced by Judge Chatigny on January 21, 2016.  Both defendants also will be ordered to pay full restitution, plus applicable interest and penalties.

This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CEASAR ANQUILLARE, 88, of Orange, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to two years of probation for paying nearly $300,000 in bribes to the former Executive Director of the West Haven Housing Authority in exchange for government contracts and business.  ANQUILLARE also was ordered to pay a $100,000 fine and $291,033.91 in restitution.

According to court documents and statements made in court, Michael Siwek was the executive director of the West Haven Housing Authority (“WHHA”), an agency that received federal funding.  As parties of his duties, Siwek had substantial discretion over awarding WHHA business and contracts.  Between approximately February 2007 and February 2012, Siwek received approximately $1.5 million in bribes from individuals, including ANQUILLARE, in order to award them business with WHHA and the entities that the housing authority controlled.

Siwek received approximately $290,000 from ANQUILLARE in connection with accounting services that ANQUILLARE’s firm provided to the WHHA.

ANQUILLARE has paid restitution in the amount of $291,033.91.

On April 22, 2015, ANQUILLARE pleaded guilty to one count of conspiracy to commit bribery in connection with a program receiving federal funds.

On September 4, 2014, Siwek pleaded guilty to related charges and awaits sentencing.

U.S. Attorney Daly stated that the investigation is ongoing.

This matter is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation.  The case is being prosecuted by Assistant U.S. Attorney Sarah Karwan.

Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RAYMOND RIVERA, also known as “White Boy,” 25, of Hartford, was sentenced yesterday by U.S. District Judge Jeffrey Alker Meyer in New Haven to 66 months of imprisonment, followed by five years of supervised release, for trafficking crack cocaine.

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 West Hell 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 RIVERA and other associates distributed crack cocaine in the Westland Street area of Hartford.

During the investigation, RIVERA was involved in four controlled purchases of crack cocaine, totaling approximately 180 grams, and was intercepted over wiretaps engaging in conversations related to the distribution of crack.

RIVERA has been detained since his arrest in April 2014.  On April 27, 2015, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).

Twenty-five individuals were charged as a result of the investigation.  Scott and 22 other defendants pleaded guilty to various offenses.  One defendant was shot and killed while his case was pending.

Scott awaits sentencing.

This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division.  The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.  The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants.  The 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.

United States Attorney Deirdre M. Daly and Chief State’s Attorney Kevin T. Kane today announced that ARTHUR STANLEY, also known as “Wiggs,” 26, has been indicted for the July 15, 2011 murder of Keith Washington, 23, of Windsor.

This matter stems from a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of the Westhell and Team Grease street gangs and gang-related violent activity.  The Hartford Police Department and Officers and Inspectors of the Cold Case Homicide Unit of the Office of the Chief State’s Attorney are participating in the investigation.

At approximately 9:28 p.m. on July 15, 2011, the Hartford Police Department received a report of shots fired in the vicinity of 67 Oakland Terrace in Hartford.  Officers responding to the scene located an unconscious person lying on the front porch of the residence with an apparent gunshot wound to the head.  The victim, who was subsequently identified as Keith Washington, was transported to the hospital where he succumbed to his injuries on July 17, 2011.

On October 27, 2015, a federal grand jury in New Haven returned an indictment charging STANLEY, an active member of the Westhell street gang, with engaging in a Violent Crime in Aid of Racketeering, namely the murder of Keith Washington.  If convicted of the charge, STANLEY faces a maximum term of imprisonment of life, or death if the government seeks the death penalty in the matter.

STANLEY has been detained in federal custody since April 2014 and is awaiting sentencing on a crack cocaine conspiracy offense.

U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt.  Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This ongoing investigation is being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force, Hartford Police Department and Cold Case Homicide Unit of the Office of the Chief State’s Attorney.  The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.

The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed, and Supervisory Assistant State’s Attorney Patrick Griffin, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LUIS E. RIVERA, also known as “Bebe,” 34, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 60 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.

This matter stems from “Operation Samson,” an initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking.  In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.

According to court documents and statements made in court, a confidential informant arranged to purchase an ounce of cocaine and a firearm from RIVERA and another individual in exchange for $1,500.  On March 14, 2015, the confidential informant and an undercover ATF agent met with RIVERA and the other individual a location in New Haven to complete the transaction.  At the location, RIVERA stated that he did not have the firearm.  The undercover agent then paid $1,200 for an ounce of cocaine.  On that date, RIVERA told the undercover agent that he knew how to “cook” cocaine into crack cocaine.

In the next two weeks, law enforcement conducted controlled purchases of approximately 57 grams of crack cocaine from RIVERA, and arranged another purchase of two ounces (approximately 57 grams) of crack from RIVERA.  RIVERA was arrested on March 31, 2014.  On that date, he possessed the approximately 57 grams of crack that he intended to sell.  A subsequent search of apartment revealed more than 100 grams of cocaine, narcotics paraphernalia and more than $9,000 in cash.

RIVERA has been detained since his arrest.  On December 9, 2014, he pleaded guilty to one count of possession with the intent to distribute, and distribution of, 28 grams or more of cocaine base (“crack cocaine”).

This case was prosecuted by Assistant U.S. Attorney William J. Nardini.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JASON SCOTT, 37, of Montville, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 13 months of imprisonment, followed by three years of supervised release, for possessing several firearms as a convicted felon.

According to court documents and statements made in court, in November 2014, an individual provided information to law enforcement that SCOTT was looking to sell firearms for cash.  In December 2014, the FBI made a controlled purchase of a Hi-Point Firearms, Model 995, 9mm rifle from SCOTT.

SCOTT was arrested on December 19, 2015.  A search of SCOTT’s residence on that date revealed a Mosin Nagant 7.62 x 54r, Model 44, rifle, and an Izhmash Saiga .308 semi-automatic rifle, as well as magazines, ammunition and ammunition reloading components.

Prior to December 2014, SCOTT had been convicted of a felony offense.  It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition which has moved in interstate or foreign commerce.

On June 12, 2015, SCOTT pleaded guilty to one count of possession of a firearm by a convicted felon.

This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.

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 ELLIOT PEREZ, 30, of Bridgeport, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 210 months of imprisonment, followed by three years of supervised release, for stealing 111 firearms from the Smith & Wesson manufacturing plant in Springfield, Mass, and selling many of those firearms on the street.

“This defendant not only stole more than 100 firearms, but he quickly sold dozens of them on the street putting them directly into the hands of criminals,” said U.S. Attorney Daly.  “Not only are the stolen guns now turning up in criminal investigations as far away as North Carolina, but one was used in a Bridgeport murder and another in a shooting at a Hartford night club.  As more than 50 of these guns are still at large, there is no telling how many additional acts of violence will stem from this offense.  These sobering facts make clear that this long prison term is fair and appropriate.  We thank the Stratford and Bridgeport Police Departments for their excellent work in quickly arresting these defendants, and the ATF for their investigative work and ongoing efforts to identify and recover the missing firearms.”

“The theft of over 100 guns is a serious threat to public safety and this sentence sends the message that it will not be tolerated, said ATF Special Agent in Charge Kumor.  “Firearms trafficking continues to be a top priority for ATF and our law enforcement partners and we are committed to identifying and disrupting the sources of illegal firearms, which jeopardize the safety of our communities.”

According to court documents and statements made in court, on November 8, 2012, PEREZ, a truck driver for Pace Motor Lines, picked up five boxes of firearms from the Smith & Wesson manufacturing plant in Springfield and placed the boxes in his truck.  At the same time, PEREZ stole three additional boxes containing a total of 111 firearms.  PEREZ then drove the truck containing all the firearms to his residence in Bridgeport where he met his cohort Michael Murphy.  Shortly thereafter, PEREZ delivered the original five boxes of firearms to the trucking company’s distribution center in Stratford.

PEREZ and Murphy stored and ultimately sold many of the stolen guns.

On November 20, 2012, when interviewed by ATF special agents, PEREZ falsely stated that a “black male” at Smith & Wesson’s manufacturing plant told PEREZ which boxes he was supposed to load onto his truck, and that he delivered all of the firearms he picked up to the distribution center in Stratford.

Prior to November 2012, PEREZ had multiple felony convictions, including convictions for larceny and burglary, and Murphy had a felony conviction for burglary.  It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.

PEREZ and Murphy were originally arrested by the Stratford Police Department on state firearms charges.  PEREZ has been in custody since his state arrest on November 23, 2012, and Murphy has been in custody since his federal arrest on November 30, 2012.

On February 11, 2014, PEREZ pleaded guilty to one count of conspiracy to possess and sell stolen firearms, one count of possession of firearms by a convicted felon and one count of making a false statement to a federal law enforcement officer.

On December 12, 2013, Murphy pleaded guilty to one count of conspiracy to possess and sell stolen firearms and one count of possession of firearms by a convicted felon.  He is scheduled to be sentenced on October 30, 2015,

This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Stratford Police Department and the Bridgeport Police Department.  The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ODAIN J. JOHNSON, 22, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 70 months of imprisonment, followed by three years of supervised release, for committing the armed robbery of the First Niagara Bank in Windsor in January.

According to court documents and statements made in court, on January 10, 2015, at approximately 9:15 a.m., two masked men, at least one of whom brandished a firearm, entered the First Niagara Bank at 2133 Poquonock Avenue in Windsor.  The two men vaulted the teller counter, directed two bank employees to the bank vault and ordered one of the employees to open the vault.  Once inside the vault, the men ordered the bank employees to the ground and took cash from the vault.  The men also ordered bank employees to open teller drawers and proceeded to take an additional amount of money from the drawers.  During the robbery, a customer entered the bank.  One of the masked men pointed a gun at the customer, ordered him to the ground and told him not to look up.  After exiting the bank, the men confronted a second customer who was about to enter the bank.  One of the men pointed a gun at the customer and stated “If you say anything, we’ll shoot you….”

A total of $81,530 was stolen from the bank.

While investigating the robbery, Windsor Police were contacted by East Windsor Police who were investigating similar bank and credit union robberies in East Windsor and Glastonbury.  East Windsor Police had recently obtained an arrest warrant for David M. Johnson with respect to the robbery of the Nutmeg State Federal Credit Union in East Windsor on July 21, 2014.

After further investigation, on January 10 at approximately 9:45 p.m., law enforcement executed a search warrant at David M. Johnson’s Enfield residence and found a total of $81,946 in cash, most of which was bound by First Niagara Bank strapping that was initialed by one of victim bank employees.  Investigators also found and seized other items allegedly used during the robbery earlier that day, as well as a .380 caliber semi-automatic handgun with a fully-loaded magazine.

ODAIN JOHNSON was arrested on January 17, 2015, in Lewiston, Maine, and has been detained since his arrest.

On May 29, 2015, ODAIN JOHNSON pleaded guilty to one count of armed bank robbery and admitted that he brandished a firearm during the offense.

On August 31, 2015, David M. Johnson pleaded guilty to one count of bank robbery related to the First Niagara Bank robbery, and also admitted that he committed the armed bank robbery of the Nutmeg State Federal Credit Union in East Windsor on July 21, 2014, and the Nutmeg State Credit Union in Glastonbury on November 7, 2014, stealing $109,166 and $84,145, respectively.  He is detained while awaiting sentencing.

This matter has been investigated by the FBI and the Windsor, East Windsor and Glastonbury Police Departments, with the assistance of the Enfield Police Department, the Capital Region Emergency Services Team (CREST) and the Maine State Police.  The case is being prosecuted by Assistant U.S. Attorneys Deborah R. Slater and Douglas P. Morabito.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARLOS COLON, also known as “Camby,” 37, of Bridgeport, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 90 months of imprisonment, followed by five years of supervised release, for planning to conduct an armed robbery of narcotics stash house.

This matter stems from “Operation Samson,” an initiative headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking.  In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.

According to court documents and statements made in court, in March 2014, the ATF began an investigation into Camby Colon and his brother, Carlos “Joel” Colon, who were known narcotics and firearm traffickers in Bridgeport.  Law enforcement also had received information that Joel Colon was interested committing an armed robbery of a drug dealer.  During the investigation, which employed the use of an ATF agent working in an undercover capacity, the Colons recruited others to commit an armed robbery of what they believed to be a narcotics stash house of 15 kilograms of cocaine.

On April 11, 2014, the Colons, Humberto Soto, Markus Mendez, Nelson Diaz, Trevor Pierce and Hiram “Gringo” Mojica gathered at a location in Stamford where they believed they would be informed of the address of the narcotics stash house, and would then travel to the stash house to conduct the robbery.  All seven were arrested at that time.  A search of the car that Diaz, Pierce and Mojica drove to the location revealed a loaded .40 caliber pistol, an EO Tech sight, black gloves, as well as two rolls of duct tape.  A search of the vehicle that Soto and Mendez drove to the meet location revealed a loaded and 9mm pistol, black clothing and a baseball bat.

A subsequent search of an auto-detailing business in Bridgeport where Camby and Joel worked revealed several dozen rounds of ammunition, a small amount of crack cocaine, two digital scales and narcotics packaging materials.

Camby Colon has been detained since April 11, 2014.  On March 5, 2015, he pleaded guilty to one count of conspiracy to interfere with commerce by robbery and one count of use of a firearm in furtherance of a crime of violence.

Joel Colon, Soto, Diaz, Mendez, Pierce and Mojica also pleaded guilty.  Joel Colon was sentenced to 90 months of imprisonment, Soto was sentenced to 84 months of imprisonment, Diaz was sentenced to 108 months of imprisonment, Mendez was sentenced to 36 months of imprisonment and Pierce was sentenced to 72 months of imprisonment.  Mojica awaits sentencing.

This case is being prosecuted by Assistant U.S. Attorney Vanessa Richards.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RONALD S. BATTAGLIA, 66, of Stratford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 30 days of imprisonment and one year of supervised release for filing false tax returns.

According to court documents and statements made in court, BATTAGLIA is the sole owner of Custom Painting, which provides interior and exterior painting services primarily in Fairfield County.  During the 2008 through 2012 tax years, BATTAGLIA failed to provide his tax return preparer with information concerning an additional $867,656 in gross receipts he received in those years.  The total tax reported as due on the five returns was $46,687, but BATTAGLIA willfully failed to report and pay an additional $277,582 in federal income taxes for those five years.

The investigation revealed that BATTAGLIA’s clients typically paid him by check.  BATTAGLIA then cashed the checks at his bank and received currency for the full value of the check, or he made a split deposit, receiving some cash and depositing the balance into his business account.  The amounts of the transactions were typically less than $10,000.

On July 20, 2015, BATTAGLIA pleaded guilty to one count of filing a false tax return.

BATTAGLIA has repaid the IRS $277,582 in restitution.  He is still required to pay more than $250,000 in penalties and interest that have accrued on his unpaid taxes.

This matter was investigated by the Internal Revenue Service – Criminal Investigation Division.  The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.

Mozaffar Khazaee, 61, formerly of Manchester, Connecticut, was sentenced today to 97 months in prison and ordered to pay a $50,000 fine by U.S. District Judge Vanessa L. Bryant of the District of Connecticut for violating the Arms Export Control Act by attempting to send to Iran highly sensitive, proprietary, trade secret and export controlled material relating to U.S. military jet engines, which he had stolen from multiple U.S. defense contractors where he had previously been employed.

Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Deirdre M. Daly of the District of Connecticut, Special Agent in Charge Matthew Etre of U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) Boston, Assistant Director Randall C. Coleman of the FBI’s Counterintelligence Division, Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service (DCIS) Northeast Field Office, Special Agent in Charge Danielle Angley of the Air Force Office of Special Investigations and Special Agent in Charge John McKenna of the Department of Commerce's Office of Export Enforcement Boston Office made the announcement.

“Mozaffar Khazaee exploited his privileged access to national security assets to steal highly sensitive military technology with the intent of providing it to Iran,” said Assistant Attorney General Carlin.  “Violations of the Arms Export Control Act, particularly those involving attempts to transfer sensitive defense technology to a foreign power, are among the most significant national security threats we face, and we will continue to leverage the criminal justice system to prevent, confront, and disrupt them.”

“Mozaffar Khazaee betrayed his defense contractor employers and the national security interests of the United States by stealing and attempting to send to Iran voluminous documents containing highly sensitive U.S. defense technology,” said U.S. Attorney Daly.  “U.S. companies are being relentlessly targeted by those who seek to steal our intellectual property, our trade secrets and our advanced defense technology – whether through a computer hack or cyber intrusion, or through an insider or rogue employee.  As this case demonstrates, we will aggressively investigate and hold accountable those who attempt to steal trade secrets and military technology from U.S. industries, whether for their own personal gain or for the benefit of foreign actors.”

“Stopping people like Mozaffar Khazaee from providing U.S. military technology to foreign powers is crucial to our national security interests,” said Special Agent in Charge Etre.  “It’s abundantly clear from court records that this individual intended to harm U.S. interests both here and abroad.  HSI will continue to work with our federal law enforcement partners to ensure that advanced U.S. military technology is not stolen and illegally exported for the benefit of foreign entities.”

“Mr. Khazaee abused a position of trust and responsibility by stealing trade secrets and sensitive information belonging to defense contractors developing some of our most advanced aircraft,” said Assistant Director Coleman.  “His actions could have put our national security at risk.  Stopping his plan and holding him accountable for his betrayal was a whole-of-government effort.  We will use all available legal means to pursue individuals willing to help our adversaries by stealing our technical know-how.”

“The evidence developed during this investigation and today’s sentencing of Mr. Khazaee illustrate the potential for harm to the U.S. through illegal exportation of sensitive documents and technology,” said Special Agent in Charge Rupert.  “DCIS, along with our partner agencies, continues to prioritize and pursue these investigations to curtail any adverse impact to America's warfighters and shield America's investment in national defense.”

“This case was enabled by the outstanding teamwork amongst the many federal law enforcement agencies and U.S. Attorney’s office,” said Special Agent in Charge Angley.  “Critical was the ability to leverage subject matter experts from the Air Force’s acquisition community who provided the technical assessments of the high value technology.  While the conclusion of this case neutralized the threat of this particular person, it also highlights the need for continued and ever more vigilant protection of our critical technologies.”

“Today's sentencing demonstrates the ongoing cooperation between the U.S. Department of Commerce and other federal law enforcement partners working together in unison to prevent sensitive U.S. origin technology from falling into the wrong hands,” said Special Agent in Charge McKenna.

According to court documents and statements made in court, at different times between 2001 and 2013, Khazaee, a dual citizen of Iran and the United States with a Ph.D. in mechanical engineering, was employed by three separate defense contractors.  From at least 2009 through late 2013, Khazaee offered to provide trade secret, proprietary and export controlled defense technology that he had stolen from his U.S. employers to gain employment with state-controlled technical universities in Iran.

Beginning in late 2009, Khazaee corresponded by email with an individual in Iran to whom he attempted to send and in some cases did send documents containing trade secret, proprietary and export controlled material relating to the Joint Strike Fighter (JSF) Program.  In one email Khazaee stated that the material he had attached was “very controlled . . . and I am taking [a] big risk.”  Khazaee instructed the individual in Iran, “after downloading,” he should “delete everything immediately.”

Analysis of Khazaee’s computer media also revealed cover letters and application documents, dating from 2009 through late 2013, which Khazaee sent to multiple state-controlled technical universities in Iran.  In those materials, Khazaee stated that as “lead engineer” in various projects with U.S. defense contractors, he had learned “key technique[s] that could be transferred to our own industry and universities.”  Khazaee stated that he wanted to “move to Iran,” that he was “looking for an opportunity to work in Iran,” and that he was interested in “transferring my skill and knowledge to my nation.”

In or about November 2013, while residing in Connecticut, Khazaee attempted to send a large shipping container to Iran.  The shipment included, in numerous boxes and on computer media, thousands of highly sensitive technical manuals, specification sheets, test results, technical drawings and data and other proprietary material relating to U.S. military jet engines, including those relating to the U.S. Air Force’s F35 JSF program and the F-22 Raptor.  The materials in the interdicted shipment had been stolen from U.S. defense contractors where Khazaee had worked and many documents were prominently labeled with strict export control warnings.  Khazaee did not apply for nor did he obtain any license to export any of the documents and the export or attempted export of such material to Iran is illegal.

On Jan. 9, 2014, Khazaee was arrested at the Newark Liberty International Airport before boarding a flight to Iran.  Search warrants executed on Khazaee’s checked and carry-on luggage revealed additional hard copy documents and computer media containing sensitive, proprietary, trade secret and export controlled documents relating to U.S. military jet engines.  Khazaee was also found in the possession of $59,945.00 in as-yet undeclared cash, which he had split up into increments of approximately $5,000 and secreted in multiple bank envelopes in various places in his carry-on luggage.

The hard copy and electronic material that Khazaee stole and sought to transfer to Iran totaled some 50,000 pages and was reviewed by experts from both the U.S. Air Force and the victim defense contractors.  In addition to the materials relating to the JSF Program and the F-22 Raptor, Khazaee also had documents from numerous other U.S. military engine programs, including the V-22 Osprey, the C130J Hercules and the Global Hawk engine programs.  In total, Khazaee sought to export approximately 1,500 documents containing trade secrets and approximately 600 documents containing highly sensitive defense technology.

According to analyses by the U.S. Air Force and victim defense contractors, the technical data that Khazaee stole would have helped Iran “leap forward” ten years or more in academic and military turbine engine research and development, reducing their investment in such technology by one to two billion dollars and potentially enhancing the development and effectiveness of their weapon systems.

Khazaee has been detained since his arrest on Jan. 9, 2014.  On Feb. 25, 2015, he pleaded guilty to one count of unlawful export and attempted export of defense articles from the U.S. in violation of the Arms Export Control Act.

This case was investigated by the ICE-HSI’ New England Division, the FBI’s New Haven Division, the Defense Criminal Investigative Service in New Haven, the U.S. Air Force’s Office of Special Investigations in Boston and the Department of Commerce’s Office of Export Enforcement in Boston.

Assistant Attorney General Carlin and U.S. Attorney Daly also commended the efforts of the many other agencies and offices that were involved in this investigation, including the U.S. Attorney’s Offices of the Central District of California, the Southern District of Indiana and the District of New Jersey; ICE-HSI in Los Angeles; the U.S. Customs and Border Protection Service (CBP) in Los Angeles; the U.S. Air Force’s Office of Special Investigations in Los Angeles; as well as ICE-HSI, CBP and FBI in New Jersey; and HSI, FBI and DCIS in Indianapolis.

This case is being prosecuted by Assistant U.S. Attorney Stephen Reynolds of the District of Connecticut and Trial Attorney Brian Fleming of the Justice Department’s Counterintelligence and Export Control Section.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Assistant Attorney General for National Security John P. Carlin announced that MOZAFFAR KHAZAEE, 61, formerly of Manchester, Connecticut, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 97 months of imprisonment, followed by  three years of supervised release, for attempting to send to Iran voluminous hard copy documents, computer media and electronic data containing highly sensitive, proprietary, trade secret and export controlled material relating to U.S. military jet engines, which he had stolen from multiple U.S. defense contractors where he had previously been employed.  KHAZAEE also was ordered to pay a $50,000 fine.

“Mozaffar Khazaee betrayed his defense contractor employers and the national security interests of the United States by stealing and attempting to send to Iran voluminous documents containing highly sensitive U.S. defense technology,” said U.S. Attorney Daly.  “U.S. companies are being relentlessly targeted by those who seek to steal our intellectual property, our trade secrets and our advanced defense technology – whether through a computer hack or cyber intrusion, or through an insider or rogue employee.  As this case demonstrates, we will aggressively investigate and hold accountable those who attempt to steal trade secrets and military technology from U.S. industries, whether for their own personal gain or for the benefit of foreign actors.”

“Mozaffar Khazaee exploited his privileged access to national security assets to steal highly sensitive military technology with the intent of providing it to Iran,” said Assistant Attorney General Carlin.  “Violations of the Arms Export Control Act, particularly those involving attempts to transfer sensitive defense technology to a foreign power, are among the most significant national security threats we face, and we will continue to leverage the criminal justice system to prevent, confront, and disrupt them.”

“Stopping people like Mozaffar Khazaee from providing U.S. military technology to foreign powers is crucial to our national security interests,” said Matthew Etre, Special Agent in Charge of Homeland Security Investigations (HSI) Boston.  “It’s abundantly clear from court records that this individual intended to harm U.S. interests both here and abroad.  HSI will continue to work with our federal law enforcement partners to ensure that advanced U.S. military technology is not stolen and illegally exported for the benefit of foreign entities.”

“Mr. Khazaee abused a position of trust and responsibility by stealing trade secrets and sensitive information belonging to defense contractors developing some of our most advanced aircraft,” said Assistant Director Randall C. Coleman of the FBI’s Counterintelligence Division.  “His actions could have put our national security at risk.  Stopping his plan and holding him accountable for his betrayal was a whole-of-government effort.  We will use all available legal means to pursue individuals willing to help our adversaries by stealing our technical know-how.”

“The evidence developed during this investigation and today’s sentencing of Mr. Khazaee illustrate the potential for harm to the U.S. through illegal exportation of sensitive documents and technology,” said Special Agent in Charge Craig W. Rupert, Defense Criminal Investigative Service (DCIS), Northeast Field Office.  “DCIS, along with our partner agencies, continues to prioritize and pursue these investigations to curtail any adverse impact to America's warfighters and shield America's investment in national defense.”

“This case was enabled by the outstanding teamwork amongst the many federal law enforcement agencies and U.S. Attorney’s office,” said Danielle Angley, Special Agent-in-Charge with the Air Force Office of Special Investigations.  “Critical was the ability to leverage subject matter experts from the Air Force’s acquisition community who provided the technical assessments of the high value technology.  While the conclusion of this case neutralized the threat of this particular person, it also highlights the need for continued and ever more vigilant protection of our critical technologies.”

“Today's sentencing demonstrates the ongoing cooperation between the U.S. Department of Commerce and other federal law enforcement partners working together in unison to prevent sensitive U.S. origin technology from falling into the wrong hands,” said John McKenna, Special Agent in Charge of the Department of Commerce’s Boston Office of Export Enforcement.

According to court documents and statements made in court, at different times between 2001 and 2013, KHAZAEE, a dual citizen of Iran and the United States with a Ph.D. in mechanical engineering, was employed by three separate defense contractors.  From at least 2009 through late 2013, KHAZAEE offered to provide trade secret, proprietary and export controlled defense technology that he had stolen from his U.S. employers to gain employment with state-controlled technical universities in Iran.

Beginning in late 2009, KHAZAEE corresponded by email with an individual in Iran to whom he attempted to send, and in some cases did send, documents containing trade secret, proprietary and export controlled material relating to the Joint Strike Fighter Program.  In one email KHAZAEE stated that the material he had attached was “very controlled . . . and I am taking [a] big risk.” KHAZAEE instructed the individual in Iran, “after downloading,” he should “delete everything immediately.”

Analysis of KHAZAEE’s computer media also revealed cover letters and application documents that KHAZAEE sent to multiple state-controlled technical universities in Iran.  In those materials, KHAZAEE stated that as “lead engineer” in various projects with U.S. defense contractors, he had learned “key technique[s] that could be transferred to our own industry and universities.”  KHAZAEE stated that he wanted to “move to Iran,” that he was “looking for an opportunity to work in Iran,” and that he was interested in “transferring my skill and knowledge to my nation.”

In approximately November 2013, while residing in Connecticut, KHAZAEE attempted to send a large shipping container to Iran.  The shipment included, in numerous boxes and on computer media, thousands of highly sensitive technical manuals, specification sheets, test results, technical drawings and data, and other proprietary material relating to U.S. military jet engines, including those relating to the U.S. Air Force’s F35 Joint Strike Fighter (“JSF”) program and the F-22 Raptor.  The materials in the interdicted shipment had been stolen from U.S. defense contractors where KHAZAEE had worked, and many documents were prominently labeled with strict export control warnings.  KHAZAEE did not apply for nor did he obtain any license to export any of the documents, and the export or attempted export of such material to Iran is illegal.

On January 9, 2014, KHAZAEE was arrested at the Newark Liberty International Airport before boarding a flight to Iran.  Search warrants executed on KHAZAEE’s checked and carry-on luggage revealed additional hard copy documents and computer media containing sensitive, proprietary, trade secret and export controlled documents relating to U.S. military jet engines.  KHAZAEE also was found in the possession of $59,945 in as-yet undeclared cash, which he had split up into increments of approximately $5,000 and secreted in multiple bank envelopes in various places in his carry-on luggage.

The hard copy and electronic material that KHAZAEE stole and sought to transfer to Iran totaled some 50,000 pages and was reviewed by experts from both the U.S. Air Force and the victim defense contractors.  In addition to the materials relating to the JSF Program and the F-22 Raptor, KHAZAEE also had documents from numerous other U.S. military engine programs, including the V-22 Osprey, the C130J Hercules and the Global Hawk engine programs.  In total, KHAZAEE sought to export approximately 1,500 documents containing trade secrets and approximately 600 documents containing highly sensitive defense technology.

According to analyses by the U.S. Air Force and victim defense contractors, the technical data that KHAZAEE stole would have helped Iran “leap forward” 10 years or more in academic and military turbine engine research and development, reducing their investment in such technology by one to two billion dollars, and potentially enhancing the development and effectiveness of their weapon systems.

KHAZAEE has been detained since his arrest On January 9, 2014.  On February 25, 2015, he pleaded guilty to one count of unlawful export and attempted export of defense articles from the U.S. in violation of the Arms Export Control Act.

This matter has been investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in New Haven, the New Haven Division of the Federal Bureau of Investigation, the Defense Criminal Investigative Service in New Haven, the U.S. Air Force’s Office of Special Investigations in Boston, and the Department of Commerce’s Office of Export Enforcement in Boston.

U.S. Attorney Daly and Assistant Attorney General Carlin also commended the efforts of the many other agencies and offices that were involved in this investigation, including the U.S. Attorney’s Offices for the Central District of California, the Southern District of Indiana and the District of New Jersey, HSI in Los Angeles, the U.S. Customs and Border Protection Service in Los Angeles, the U.S. Air Force’s Office of Special Investigations in Los Angeles, as well as HSI, CBP, and FBI in New Jersey, and HSI, FBI and DCIS in Indianapolis.

This case was prosecuted by Assistant U.S. Attorney Stephen Reynolds of the National Security and Major Crimes Unit of the U.S. Attorney’s Office for the District of Connecticut, and Trial Attorney Brian Fleming of the Justice Department’s Counterintelligence and Export Control Section (CES).

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in Bridgeport has returned a three-count indictment charging ALEX GARCIA, 37, of Danbury, with murder, assault and a firearms offense related to the January 17, 2000 murder of Mark Rebong in Danbury.

The indictment was returned on October 22, 2015.  GARCIA is in custody serving an unrelated state sentence.

On January 17, 2000, at approximately 11:02 p.m.., Mark Rebong was discovered in the driver’s seat of an idling vehicle in the vicinity of Exit 2 off of I-84 in Danbury. Mr. Rebong had had been shot once in the head and died as a result of his injuries.

The indictment alleges that, on January 17, 2000, GARCIA, who was then a member of the Almighty Latin King and Queen Nation (“Latin Kings”), murdered Mr. Rebong in order to maintain or increase his position in the Latin Kings and for pecuniary gain.

“In a tragic case of mistaken identity, Mark Rebong, who was neither a member of a gang nor engaged in any criminal activity, was shot and killed as he drove to work,” said U.S. Attorney Daly.  “I want to commend the dedicated law enforcement investigators for their relentless search for those responsible for this senseless murder.  Although over 15 years have passed, the law enforcement team never forgot Mark.  We hope that this indictment brings his family some small measure of solace.”

The indictment charges GARCIA with the murder in aid of racketeering of Mark Rebong. If convicted of this offense, GARCIA faces either a mandatory lifetime term of imprisonment or the death penalty, should the government seek the death penalty in this matter.

The indictment also charges GARCIA with assault resulting in serious bodily injury in aid of racketeering of Mark Rebong.  If convicted of this offense, GARCIA faces a maximum term of imprisonment of 20 years.

Finally, the indictment charges GARCIA with use of a firearm during and in relation to a crime of violence resulting in Mark Rebong’s death.  If convicted of this offense, GARCIA faces either a mandatory lifetime term of imprisonment or the death penalty, should the government seek the death penalty in this matter.

This matter is being investigated by Drug Enforcement Administration New Haven District Office, the Danbury Police Department and the Connecticut State Police Western District Major Crime Squad, with assistance from the Connecticut Department of Correction and the Danbury State’s Attorney’s Office.  The case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.

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.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on October 20, 2015, a federal grand jury in New Haven returned a superseding indictment charging the following individuals with federal narcotics offenses:

SHAWN MILLER, aka “White Boy Shawn,” 31, of Hamden
PAUL COLON, aka “Paul Cane,” 27, of West Haven
ROBBIE SMITH, aka “Lil Rob,” 27, of New Haven
SEAN LONDON, 22, of New Haven
ROBERT OATHOUT, 35, of Branford
JASON LANGLEY, 40, of East Haven
HARRY ANASTASIO, 54, of East Haven
ANTONIO DELUCIA, 27, of Wallingford

This investigation is being conducted by the FBI’s New Haven Safe Streets Task Force, in cooperation with the Drug Enforcement Administration and the New Haven, West Haven, Milford, Hamden and other local police departments, and the Connecticut Department of Correction.  As alleged in court documents and statements made in court, the investigation focused on a heroin and crack distribution ring operating in the greater New Haven area, and headed by MILLER and COLON.  The investigation revealed that members of the ring took orders over a cellular telephone from drug customers in several shoreline communities for quantities of heroin and crack cocaine, and then delivered the drugs by car.  During the course of the investigation, agents and officers of the Task Force employed a variety of techniques, including debriefings of informants, physical surveillance, supervised purchases of heroin and crack, a court-authorized wiretap and the execution of federal search warrants.

On June 24, 2015, a grand jury returned an indictment charging SMITH and LONDON with conspiring to distribute and to possess with intent to distribute heroin and cocaine base (“crack”), and LONDON with possession with intent to distribute and distribution of controlled substances.  The indictment also charged DELUCIA, ANASTASIO, LANGLEY, and OATHOUT, all of whom are alleged to be drug customers of the conspiracy, each with two counts of using a telephone to facilitate a narcotics trafficking felony.  The 11-count superseding indictment adds charges against MILLER and COLON, and alleges that between November 2014 and May 2015, MILLER, COLON, SMITH, and LONDON conspired to distribute heroin and crack cocaine.  The superseding indictment also charges MILLER with possession with intent to distribute and distribution of crack cocaine.

If convicted, MILLER and COLON face a mandatory minimum term of imprisonment of 10 years of imprisonment and a maximum term of life imprisonment on the conspiracy charge.  MILLER also faces up to 20 years in prison on the distribution charge.  LONDON faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years on the conspiracy charge, and a maximum term of imprisonment of 20 years on the distribution charge.  SMITH faces a maximum term of imprisonment of 20 years on the conspiracy charge.  OATHOUT, ANASTASIO, LANGLEY, and DELUCIA each face a maximum term of imprisonment of four years on each count of using a telephone to facilitate a narcotics trafficking felony.

MILLER was arrested yesterday and is released on bond.  COLON is in state custody on an unrelated charge.

The original indictment also charged Jeffrey Smith, aka “J-Money,” 21, of New Haven, with various offenses.  On September 21, 2015, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin and cocaine base, and is awaiting sentencing.

U.S. Attorney Daly stressed that an indictment is not evidence of guilt.  Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Jennifer R. Laraia.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on October 20, 2015, GREGORY THOMAS, also known as “Quanny” and “Jim,” 24, of Hartford, was sentenced by U.S. District Judge Jeffrey Alker Meyer in New Haven to 120 months of imprisonment, followed by five years of supervised release, for trafficking crack cocaine.

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 West Hell 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,” 24, as the leader of the West Hell street gang who, along with his associates, including THOMAS, distributed crack cocaine in the Westland Street area of Hartford.

THOMAS was intercepted over wiretaps numerous times engaging in drug-related conversations and, between May 2013 and November 2013, investigators made 17 controlled purchases of crack directly from THOMAS.

THOMAS’ criminal history includes a state conviction in 2009 for assault in the second degree and carrying a pistol without a permit.  This conviction stemmed from THOMAS shooting two people in February 2009 in Hartford.  THOMAS has been in state custody since February 11, 2014, serving a state sentence related to his possession and distribution of crack and PCP.

On May 4, 2015, THOMAS pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”).

Twenty-five individuals were charged as a result of the investigation.  Scott and 22 other defendants pleaded guilty to various offenses.  One defendant was shot and killed while his case was pending.

Scott awaits sentencing.

This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division.  The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.  The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants.  The 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.

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 NUSRAT RIZVI, 75, of Norwalk, waived his right to indictment and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of filing a false tax return.

According to court documents and statements made in court, from 2008 to 2010, RIZVI failed to report to the Internal Revenue Service approximately $144,776 in income from Lanphier Day Spa, Inc., a spa he operated with his wife in Darien.

In pleading guilty, RIZVI admitted that he took a portion of the cash received by the business, deposited the cash into his personal bank accounts and failed to report the income to his tax return preparer for the 2008 through 2010 tax years.

Judge Meyer scheduled sentencing for January 14, 2016, at which time RIZVI faces a maximum term of imprisonment of three years and a fine of up to $250,000.  As part of his guilty plea, RIZVI has agreed to pay $50,485 in back taxes, as well as $37,862 in penalties.

This case was investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Anastasia E. King.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOSE ALEJANDRO, 30, of Waterbury, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.

According to court documents and statements made in court, between August 2014 and May 2015, ALJANDRO was involved in the purchase and resale of between two and 3.5 kilograms of cocaine.  During that time, ALEJANDRO sold cocaine to two individuals who then converted it to crack cocaine for street-level sales.

On May 29, 2015, federal law enforcement agents executed a search warrant at a Waterbury residence connected to ALEJANDRO and seized approximately 183 grams of cocaine, approximately 22 grams of crack cocaine, a money counting machine, a digital scale and other narcotics paraphernalia.

On June 23, 2015, ALEJANDRO pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine.

This matter has been investigated by the DEA New Haven Task Force, which includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Avi Perry.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMES SCOTT, 37, formerly of New Britain, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to one count of escape from federal custody.

According to court documents and statements made in court, on February 20, 2009, SCOTT received a federal sentence of 121 months of imprisonment for conspiring to distribute, and distributing, crack cocaine.  On June 30, 2015, he was transferred from a federal prison to the Watkinson House Residential Reentry Center in Hartford to complete his sentence.  At the time of his transfer to the Watkinson House RRC, SCOTT had a projected release date of December 26, 2015.

On August 14, 2015, SCOTT signed out from the Watkinson House RRC to conduct a job search, but did not return.  He was apprehended on October 5, 2015, in Hartford by the U.S. Marshals Service and returned to custody.

Judge Thompson has scheduled sentencing for January 13, 2016, at which time SCOTT faces a maximum term of imprisonment of five years.

This matter was investigated by the U.S. Marshals Service and the Hartford Police Department, and is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID E. RAYMOND, 74, of Glastonbury, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to structuring financial transactions.

Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000.  To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000.  Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements.  Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.

According to court documents and statements made in court, RAYMOND purchased rock and roll memorabilia for a doctor who owned a medical practice.  RAYMOND’s friend, Andrea Dobrozensky, was the office manager for the medical practice and also paid the doctor’s personal expenses.  For purchases of items for the doctor in amounts greater than $10,000, RAYMOND requested that any checks payable to him be made in amounts under $10,000 so as to avoid filling out a form.  Dobrozensky wrote multiple checks, ranging in amounts from $4,000 to $9,900, payable to RAYMOND, many on the same date.

Between August 2009 and May 2012, RAYMOND received 20 checks totaling $146,500 from the medical practice’s business bank accounts.  The checks were negotiated for cash at local bank branches where RAYMOND had personal accounts.

With respect to related conduct, on November 27, 2012, RAYMOND and Dobrozensky traveled to a branch of Farmington Bank in Avon where RAYMOND told Dobrozensky to write checks in amounts below $10,000.  Dobrozensky wrote two checks, one to herself for $9,900 and one to RAYMOND for $9,900.  Dobrozensky then cashed the check payable to her and received $9,900 in cash, and RAYMOND cashed the check payable to him and received $9,900 in cash.  Later, RAYMOND provided the $9,900 to Dobrozensky.

The charge of unlawfully structuring financial transactions carries a maximum term of imprisonment of five years and a fine up to $250,000.  Judge Arterton scheduled sentencing for January 15, 2016.

RAYMOND has agreed to forfeit $10,000 related to his structuring activity.

RAYMOND is released on a $200,000 bond.

On October 13, 2015, Dobrozensky pleaded guilty to tax and structuring charges.  She awaits sentencing.

This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation and Hartford Police Department.  The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JASON CHICKOS, 46, of Bridgeport, pleaded guilty today in Hartford federal court to one count of conspiracy to distribute anabolic steroids.

According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that individuals, including a law enforcement officer, 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.

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.

In pleading guilty, CHICKOS admitted that he purchased anabolic steroids from another member of the conspiracy and distributed them to others.  At the time, CHICKOS was a civilian dispatcher with the Newtown Police Department.

CHICKOS is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on January 11, 2016, at which time he faces a maximum term of imprisonment of 10 years.

CHICKOS 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.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PETER M. CLARK, 57, of Woodbury, waived his right to indictment and pleaded guilty today in New Haven federal court to one count of mail fraud related to his 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 has 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 was arrested on a federal criminal complaint on May 21, 2015.  He is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on January 13, 2016, at which time he faces a maximum term of imprisonment of 20 years and a maximum fine of more than $3.6 million.  CLARK also has agreed to make restitution in the amount of $1,828,986.87.

CLARK is released on a $500,000 bond.

This matter is being investigated by the Federal Bureau of Investigation and the Connecticut State Police – Western District Major Crime Squad.  The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK BERTANZA, 34, of Shelton, pleaded guilty today in Hartford federal court to one count of conspiracy to distribute anabolic steroids.

According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that individuals, including a law enforcement officer, 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.

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.

In pleading guilty, BERTANZA admitted that he purchased anabolic steroids from another member of the conspiracy and distributed them to others.

BERTANZA is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on January 8, 2016, at which time he faces a maximum term of imprisonment of 10 years.

BERTANZA 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.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that GAUNTLETT SMITH, also known as “Clansman,” 40, a citizen of Jamaica last residing in Hartford, pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to marijuana distribution and firearm offenses.

According to court documents and statements made in court, on February 19, 2015, SMITH was arrested on state drug charges after officers from the Hartford Police Department and special agents from Homeland Security Investigations and the Drug Enforcement Administration recovered approximately 15 pounds of marijuana, drug paraphernalia and a loaded 9mm semi-automatic pistol from an apartment maintained by SMITH at 89-91 Irving Street in Hartford.  The firearm had been reported stolen in North Carolina.

SMITH pleaded guilty to one count of possession of marijuana with intent to distribute, which carries a maximum term of imprisonment of five years, and one count of possession of a firearm in furtherance of a drug trafficking offense, which carries a mandatory consecutive term of imprisonment of at least five years.  A sentencing date has not been scheduled.

SMITH has been detained since his arrest.

This investigation has been conducted by the Hartford Police Department, Homeland Security Investigations and the Drug Enforcement Administration.  The case is being prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and Heather Cherry.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ANDREA M. DOBROZENSKY, 62, of New Harford, pleaded guilty yesterday in New Haven federal court to tax and structuring offenses.

According to court documents and statements made in court, between 2007 and 2009, while working as an office manager for a medical practice in Hartford, DOBROZENSKY made numerous transfers and deposits from the medical practice business bank account into her personal bank account as compensation for her services to the medical practice and untaken vacation time.   During those three years, DOBROZENSKY willfully failed to provide her tax return preparer with information concerning her receipt of approximately $247,000 in additional taxable income.  Each year, DOBROZENSKY signed her completed federal tax return and it was filed with the IRS.  As a result, $247,000 in taxable income was not reported on DOBROZENKY’s federal tax returns for the 2007, 2008 and 2009 tax years, and she failed to pay a total of $76,750 in additional taxes owed.

DOBROZENSKY also unlawfully structured financial transactions.  On November 27, 2012, DOBROZENSKY was at a branch of Farmington Bank in Avon with another person who told her to write checks in amounts below $10,000.  DOBROZENSKY wrote two checks, one to herself for $9,900 and one to the person with her for $9,900.  She then cashed the check payable to her and received $9,900 in cash.  The person with her cashed the check payable to him and received $9,900 in cash.  He later handed the $9,900 to DOBROZENSKY.

Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000.  To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000.  Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements.  Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.

On December 19, 2013, IRS Special Agents interviewed DOBROZENSKY at her residence.  On that date, DOBROZENSKY admitted that she should have reported the additional income on her federal tax returns.  She specifically stated that, on November 16, 2007, she wrote a check in the amount of $100,000 on the medical business account payable to herself, received the funds and did not report those funds on her federal tax return.   DOBROZENSKY also admitted that, as to the structuring violation, the other person with her at the bank who cashed one of the $9,900 checks had advised her to keep any payments under $10,000 to avoid filling out a form.

DOBROZENSKY pleaded guilty to one count of filing a false tax return and one count of unlawfully structuring financial transactions.  She is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on January 6, 2016, at which time she faces a maximum term of imprisonment of eight years and a fine of up to $500,000.  DOBROZENSKY also has agreed to pay the IRS $76,750 in taxes, plus penalties and interest, and to forfeit $9,900 related to her structuring activity

DOBROZENSKY is released on bond pending sentencing.

This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation and Hartford Police Department.  The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LORENZO CARTER, 20, of Bridgeport, pleaded guilty today in New Haven federal court to unlawful possession of a firearm by a convicted felon.

According to court documents and statements made in court, on April 8, 2015, law enforcement officers located a .22 caliber handgun that CARTER had placed on the tire of a vehicle parked on Trumbull Avenue in Bridgeport.  Prior to that date, CARTER had been convicted of carrying a pistol without a permit and illegally receiving a pistol, both felony offenses.

It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.

CARTER has been detained since his arrest on April 8.  He faces a maximum term of imprisonment of 10 years when he is sentenced by U.S. District Judge Jeffrey Alker Meyer.  A sentencing date has not been scheduled.

This matter is being investigated by the FBI Safe Streets Task Force and the Bridgeport Police Department.  The case is being prosecuted by Assistant U.S. Attorney Jennifer Laraia.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that, CESAR PENSON-PEREZ, 28, of New York, N.Y., was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 24 months of imprisonment, followed by three years of supervised release, for participating in a stolen identity tax refund fraud scheme that resulted in a loss of more than $7.5 million from the U.S. Treasury.

According to court documents and statements made in court, this matter stems from an investigation into individuals who, through various means, obtained fraudulent U.S. Treasury tax refund checks using stolen identities.  After obtaining the checks, individuals sold them for less than face value of the checks, or deposited them into bank accounts that had been opened using fraudulent identifying documents.  The funds were then quickly withdrawn from the bank accounts.

The investigation revealed that Julio Lara Trinidad, a resident of Waterbury, and his co-conspirators opened at least 59 bank accounts in the names of identity theft victims, deposited U.S. Treasury tax refund checks into the accounts, and then quickly withdrew the funds, resulting in more than $663,000 in loss to the U.S. Treasury.  Between December 2012 and February 2013, one of the accounts was used to purchase six licenses for a brand of tax preparation software.  These licenses were used to file more than 36,000 federal income tax returns, seeking more than $234 million in federal tax refunds intended to be issued to Trinidad and his co-conspirators.  Nearly $6.8 million in fraudulent refunds were issued before the scheme was identified.

On May 15, 2015, PENSON-PEREZ pleaded guilty to one count of theft of public money and admitted that he worked with Trinidad to open bank accounts using fraudulent identities, deposit stolen checks into the accounts and withdraw the resulting funds.

PENSON-PEREZ was found to be responsible for a loss of $360,026.66, and he was ordered to pay restitution in that amount.

Trinidad pleaded guilty to one count of theft of public money and one count of aggravated identity theft and, on May 26, 2015, was sentenced to 144 months of imprisonment.

Four other individuals were convicted of charges stemming from this scheme.

This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, U.S. Postal Inspection Service, U.S. Secret Service and Homeland Security Investigations, with the assistance of the Danbury and Darien Police Departments.  The case was prosecuted by Assistant U.S. Attorney Sarala V. Nagala.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that DARRICK COLLETTE, 34, of Thompson, formerly of Putnam, was sentenced today by United States District Judge Michael P. Shea in Hartford to 24 months of imprisonment, followed by seven years of supervised release, for trading child pornography over the Internet.

 According to court documents and statements made in court, on March 19, 2013, an FBI special agent logged onto a publicly available Internet peer-to-peer file sharing network and downloaded images and videos of child pornography from a computer connected to the network with an Internet Protocol (IP) address assigned to COLLETTE’s residence while he was living in Putnam.   During a search of the residence on June 13, 2013, law enforcement officers seized computers and multiple external hard drives.  COLLETTE was arrested at that time after he admitted that he had been downloading and trading child pornography over the Internet for more than 10 years.  A subsequent forensic analysis of COLLETTE’s computers and hard drives revealed more than 600 image files and videos of child pornography, including files depicting children under the age of 12 engaged in sexually explicit conduct, and images of children engaging in sadistic or masochistic conduct.

On October 9, 2014, COLLETTE waived indictment and pleaded guilty to one count of receipt and distribution of child pornography.

COLLETTE, who is released on bond, was ordered to report to prison on December 18, 2015.

This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies.  The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.

This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

To report cases of child exploitation, please visit www.cybertipline.com.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MICHAEL D. MASE, 32, of Sherman, pleaded guilty yesterday in Hartford federal court to one count of conspiracy to distribute anabolic steroids.

According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that individuals 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.

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.

In pleading guilty, MASE, a registered nurse and a body-builder, admitted that he purchased anabolic steroids from another member of the conspiracy and distributed them to others, including athletes who competed in body-building competitions.

MASE is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on December 23, 2015, at which time he faces a maximum term of imprisonment of 10 years.

MASE 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.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MATTHEW TOLLIS, 22, of Wethersfield, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for participating in a series of “swatting” incidents that occurred in Connecticut and other states in 2014.  Judge Hall also ordered TOLLIS to perform 300 hours of community service.

Swatting is the making of a hoax call to any emergency service to elicit an emergency response based on the false report of an ongoing critical incident.  Incidents typically produce the deployment of SWAT units, bomb squads, and other police units, as well as the evacuations of schools, businesses and residences.

“Swatting is not a schoolboy prank, it’s a federal crime,” said U.S. Attorney Daly.  “These hoaxes have expended critical law enforcement resources and caused severe emotional distress for thousands of victims,” stated U.S. Attorney Daly.  “It is our hope that this prosecution and the knowledge that this defendant will serve time in prison and live with a felony conviction for the remainder of his life will deter others from engaging in this immature, dangerous and criminal behavior.”

According to court documents and statements made in court, TOLLIS was a member of a group primarily consisting of Microsoft X-Box gamers who referred to themselves as “TCOD” (TeAM CrucifiX or Die).  TOLLIS and his TCOD associates used the Internet communication service Skype to make hoax threats involving bombs, hostage taking, firearms, and mass murder.  TOLLIS was identified as a participant in at least six of these swatting incidents, including a bomb threat to the UConn’s Admissions Department on April 3, 2014.  This hoax call resulted in a three-hour, campus-wide lockdown and required the UConn Police and the Connecticut State Police’s Bomb Squad, Emergency Services Unit and SWAT teams to respond.

TOLLIS also participated in TCOD swatting calls to the Boston Convention and Exhibition Center, Boston University, two high schools in New Jersey and a high school in Texas.  TOLLIS has admitted that he identified potential institutions, including UConn and Boston University, for TCOD members to make the threatening calls, and gathered telephone numbers and other information about the targeted institutions.

The investigation revealed that one of the founders of TCOD, a resident of Scotland who has identified himself as “Verified,” was responsible for at least five additional swatting incidents in Connecticut and Massachusetts in 2014.  Other members of TCOD also reside in the U.K., and the FBI continues to coordinate its investigation with law enforcement authorities in the U.K.

TOLLIS was arrested on September 3, 2014, on state charges stemming from the UConn swatting incident, and he was arrested on a federal criminal complaint on September 10, 2014.  On June 23, 2015, he waived his right to indictment and pleaded guilty to conspiring to engage in the malicious conveying of false information, namely a bomb threat hoax.

TOLLIS, who has been released on bond since shortly after his arrest, was ordered to report to prison on November 5, 2015.

This matter has been investigated by the FBI’s New Haven, Newark and Boston field offices, the UConn Police Department, the Connecticut Intelligence Center, the Willimantic Police Department, the Monroe Police Department, the Harvard University Police Department, the Boston University Police Department, the Newton (Mass.) Police Department, the Cambridge (Mass.) Police Department and other state and local law enforcement agencies.

U.S. Attorney Daly also acknowledged the critical assistance being provided by the U.S. Attorney’s Office for the District of New Jersey.

The case was prosecuted by Assistant U.S. Attorney Stephen B. Reynolds.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that AMIRA MANTOURA, 53, of Greenwich, waived her right to indictment and pleaded guilty yesterday in Hartford federal court to one count of making a false statement to the Medicare program.  In pleading guilty, MANTOURA, a Stamford-based podiatrist, admitted that she submitted false claims to Medicare, Medicaid and private insurance companies.

According to court documents and statements made in court, MANTOURA, a Doctor of Podiatric Medicine, operates a podiatry practice at 95 Morgan Street in Stamford.  As a podiatrist, she was fully aware and understood the procedure to perform a “nail avulsion” and she understood that a nail avulsion was a surgical procedure to treat an ingrown toenail.  Between January 2009 and August 2013, MANTOURA knowingly submitted materially false claims to the Medicare program and to private insurance companies to obtain payment for a nail avulsion when defendant knew that she had not performed a nail avulsion.  Rather than perform a nail avulsion, in most of these instances MANTOURA had merely provided her patients with routine foot care including clipping the patients’ toenails.

As a result of submitting false claims to the Medicare and Medicaid programs and private insurance companies, MANTOURA was paid approximately $195,000.

MANTOURA is scheduled to be sentenced by U.S. District Judge Michael P. Shea on December 28, 2015, at which time she faces a maximum term of imprisonment of five years, a maximum fine of more than $380,000 and an order of restitution.

In a related civil settlement, MANTOURA has paid $288,538.24 to the government in connection with her submission of false claims to the Medicare and Medicaid program.  On October 1, 2015, MANTOURA was excluded from the Medicare program and will no longer be permitted to submit federal health care claims.

This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General.  The case is being prosecuted by Senior Litigation Counsel Richard J. Schechter, and the civil settlement was handled by Assistant U.S. Attorney Anne F. Thidemann.

U.S. Attorney Daly encourages individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at (203) 777-6311 or. 1-800-HHS-TIPS.

A Massachusetts man was sentenced today to 37 months in prison for importing thousands of counterfeit integrated circuits (ICs) from China and Hong Kong and reselling them to U.S. customers, including contractors supplying them to the U.S. Navy for use in nuclear submarines.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Deirdre M. Daly of the District of Connecticut, Special Agent in Charge Matthew J. Etre of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in New England, Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service (DCIS) Northeast Field Office and Special Agent in Charge Leo Lamont of the Naval Criminal Investigative Service (NCIS) Northeast Field Office made the announcement.

Peter Picone, 42, of Methuen, Massachusetts, pleaded guilty on June 3, 2014, to conspiracy to traffic in counterfeit military goods.  In addition to imposing the prison term, U.S. District Judge Alvin W. Thompson of the District of Connecticut ordered Picone to pay $352,076 in restitution to the 31 companies whose ICs he counterfeited, and to forfeit $70,050 and 35,870 counterfeit ICs.

“Picone risked undermining our national security so that he could turn a profit,” said Assistant Attorney General Caldwell.  “He sold counterfeit integrated circuits knowing that the parts were intended for use in nuclear submarines by the U.S. Navy, and that malfunction or failure of the parts could have catastrophic consequences.” 

“Supplying counterfeit electronic components to the U.S. Military is a serious crime,” said U.S. Attorney Daly.  “Individuals who choose profit over the health and safety of the men and women of our armed services will be prosecuted.”

“Counterfeit electrical components intended for use in U.S. military equipment put our service members in harm’s way, and our national security at great risk,” said Special Agent in Charge Etre.  “HSI will continue to aggressively target individuals and companies engaged in this type of criminal act.”

“The sentencing today demonstrates the continued efforts of the Defense Criminal Investigative Service and our fellow law enforcement partners to protect the integrity of the Department of Defense's infrastructure,” said Special Agent in Charge Rupert.  “Distributors who opt for financial gain by introducing counterfeit circuitry into the supply chain of mission critical equipment create an environment ripe for potential failures.  Such disregard puts the warfighter at an unnecessary risk, ultimately impacting the mission readiness of our military that the nation depends on.  DCIS will continue to shield America's investment in Defense by addressing all attempts to disrupt the reliability of our military's equipment and processes.”

“The U.S. Navy submarine force is a critical component of our national security,” said Special Agent in Charge Lamont.  “Protecting the Sailors who make up that force and their supply lines are top priorities for NCIS, to ensure our strategic deterrent remains effective.”

In April 2005, Picone founded Tytronix Inc., and served as its president and director until August 2010, when the company was dissolved.  In addition, from August 2009 through December 2012, Picone owned and operated Epic International Electronics (Epic) and served as its president and director. 

In connection with his guilty plea, Picone admitted that, from February 2007 through April 2012, first through Titronix and later through Epic, he purchased millions of dollars’ worth of ICs bearing the counterfeit marks of approximately 35 major electronics manufacturers, including Motorola, Xilinx and National Semiconductor, from suppliers in China and Hong Kong.  Picone admitted that he resold the counterfeit ICs to customers both in the United States and abroad, including to defense contractors that Picone knew intended to supply the counterfeit ICs to the U.S. Navy for use in nuclear submarines, among other things.  Picone further admitted that he knew that malfunction or failure of the ICs likely would cause impairment of combat operations and other significant harm to national security.

On April 24, 2012, federal agents searched Picone’s business and residence, and recovered 12,960 counterfeit ICs.  In connection with his guilty plea, Picone admitted that he intended to sell the seized counterfeit ICs to defense contractors doing business with the Navy for use in military applications.

The case was investigated by the Defense Criminal Investigative Service, the NCIS and ICE-HSI.  The case is being prosecuted by Senior Counsel Kendra Ervin and Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), Assistant U.S. Attorney Sarala Nagala and Special Assistant U.S. Attorney Carol Sipperly of the District of Connecticut, Trial Attorney Anna Kaminska of the Criminal Division’s Fraud Section and Trial Attorney Kristen Warden of the Criminal Division’s Asset Forfeiture and Money Laundering Section.  The CCIPS Cybercrime Lab provided significant assistance.

The enforcement action announced today is related to the many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force).  The IP Task Force supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state, and local law enforcement partners, and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.  To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN D’AURIA, 41, of East Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 63 months of imprisonment, followed by three years of supervised release, for operating an investment scheme that defrauded investors out of nearly $2.4 million.

According to court documents and statements made in court, D’AURIA conducted an investment business using the name Fifth Street Capital.  D’AURIA was a licensed and registered investment adviser but lost his license in approximately 2011.  From approximately 2010 to 2014, D’AURIA engaged in a scheme to defraud investors who had provided him with investment funds by failing to invest the funds as represented and by using the majority of the funds for his personal use.

As part of his scheme, D’AURIA made false statements and misrepresentations to his investors regarding the purported returns generated by their investments.  He also represented to investors that their funds were fully invested in separate accounts.  In truth, D’AURIA did not fully invest the investors’ funds but rather commingled the funds in his own personal bank accounts and his own trading account.

As a result of D’AURIA’s scheme to defraud, seven investors lost a total of $2,375,943.49.  Today, Judge Shea ordered D’AURIA to pay full restitution.

On July 13, 2015, D’AURIA waived his right to indictment and pleaded guilty to one count of wire fraud.

D’AURIA, who is released on a $100,000 bond, was ordered to report to prison on December 7, 2015.

This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Senior Litigation Counsel Richard J. Schechter.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HAI T. LE, 44, of West Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 10 days of imprisonment and three years of supervised release for filing false tax returns.  Judge Meyer also ordered LE to perform 240 hours of community service and pay full restitution to the U.S. Treasury.

According to court documents and statements made in court, LE prepared federal income tax returns for individuals in his community, many of whom were family or friends.  When undertaking the tax return preparation, LE typically asked his clients to provide him their prior returns, purportedly so that LE could verify relevant information.  LE prepared the current year return, but also made and kept copies of the prior returns.  After certain clients received the current year refund, LE improperly used the prior returns to prepare false amended returns purportedly on behalf of his clients.  The amended returns included false information, including unwarranted residential energy credits, education credits, and tuition and fees deductions, and incorrectly reflected that the taxpayer was entitled to an additional refund.

Unbeknownst to his clients, LE filed the amended returns with the Internal Revenue Service and included his own residence as the return address.  In most cases, the IRS sent a refund check to the listed address.  LE then endorsed his client’s name and his own on the reverse of the check to make it appear that the check had been signed over to him.  He then deposited the check into one of his bank accounts and used the funds for living expenses and the purchase of a $50,000 Certificate of Deposit.

Between March 2010 and August 2010, LE prepared and filed 28 fraudulent federal amended tax returns, utilizing his clients’ information without their knowledge in order to obtain a total of $138,826 in refunds.  Six refunds totaling $32,752 were stopped prior to a check being issued, resulting in an initial actual loss to the IRS of $106,074.  LE returned approximately $77,000 of the stolen monies when confronted by the IRS, and now owes the remainder with the ordered restitution.

On April 28, 2015, LE pleaded guilty to three counts of filing a false claim with the Internal Revenue Service.

This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.

The United States Attorney for the District of Connecticut today announced that CHRISTOPHER BRECCIANO, 37, of Stamford, was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 14 months of imprisonment, followed by five years of supervised release, for conspiring to defraud financial institutions through an extensive mortgage fraud scheme that involved dozens of properties in Fairfield County.

According to court documents and statements made in court, between 2006 and 2010, BRECCIANO, while working as an associate at a Stamford law firm, participated in mortgage fraud conspiracy that involved the purchase of numerous single and multi-family properties, primarily in Bridgeport, Norwalk and Stamford.  BRECCIANO acted as a closing attorney for at least 50 mortgage loan transactions in which materially false information was provided to mortgage lenders by BRECCIANO or his co-conspirators.  The fraudulent information included false verifications of down payments for real estate transactions, false deeds, and false HUD-1 Forms.  In many of the transactions, BRECCIANO knew that the borrower was a “straw buyer,” and that other individuals intended to control the property and collect rent from the property.  In many transactions, BRECCIANO distributed mortgage loan funds to the straw buyer and other co-conspirators at the closing.

Many of these properties ended up in foreclosure, or in short sale transactions.  BRECCIANO also was involved in many short sale transactions in which  he knew that the buyer and seller were working together to retain control of the property while representing to the lender that the sale was an arm’s length transaction.

Through this scheme, lenders suffered losses of more than $8 million.

BRECCIANO was ordered to pay restitution in the amount of $8,406,638.

On February 12, 2014, BRECCIANO 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 is being 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.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMES BOWMAN, also known as “Jimmy Jam,” 36, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 120 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.

BOWMAN is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven.  Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms.  The investigation revealed that BOWMAN operated a large-scale cocaine and crack cocaine trafficking operation in the greater New Haven area.

BOWMAN has been detained since his arrest on May 17, 2012.  On December 2, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack cocaine”).

This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments.  The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.

This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Marc Silverman.