District of Connecticut

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LYNWOOD PATRICK, JR., 39, of East Hartford, waived his right to indictment and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of mail fraud related to his submission of a fraudulent application for a personal mortgage modification.

According to court documents and statements made in court, from approximately October 2012 through May 2013, while he was employed as the Director of Investigations for the State of Connecticut Department of Social Services (DSS), Office of Quality Assurance, PATRICK applied for a mortgage modification through JP Morgan Chase under the Making Home Affordable program, a federal initiative designed to assist homeowners who have experienced a decline in income access secure loans at lower rates.  The application requested assistance in connection with a property PATRICK owned in East Hartford.

During the application process, PATRICK represented that the East Hartford property was his primary residence and was owner occupied when, in fact, the property was not his primary residence and he did not occupy it.  PATRICK also fabricated State of Connecticut paystubs and lied about his assets in order qualify for the program.  Specifically, PATRICK claimed total assets of $500 in one checking account to show that he had experienced a loss of income causing a hardship when, in fact, he had thousands of dollars spread out over multiple accounts at several institutions and his rate of pay had not diminished.

The investigation revealed that, in connection with the loan application, PATRICK faxed fraudulent documents to JP Morgan Chase from DSS offices and used a DSS fax coversheet.

In his capacity as the Director of Investigations, PATRICK was responsible for coordinating and conducting activities to prevent, detect and investigate fraud, waste, abuse and overpayments in the Connecticut Medicaid, Care4Kids, Supplemental Nutritional Assistance and Connecticut Energy Assistance Programs.  PATRICK’s salary was partially paid for by the federal Centers for Medicare and Medicaid Services, which is a federal agency within the U.S. Department of Health and Human Services.

Judge Bolden scheduled sentencing for August 31, 2015, at which time PATRICK faces a maximum term of imprisonment of 20 years.

PATRICK has been released on a $150,000 bond since his arrest on May 6, 2015.

This matter is being investigated by the Connecticut Public Corruption Task Force, which includes the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Bureau of Investigation, U.S. Postal Inspection Service and Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei.

Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 1-800-CALL-FBI (1-800-225-5324).

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned a superseding indictment charging 11 individuals with steroid and prescription pill distribution offenses.  Eight of the individuals charged in the superseding indictment were arrested in April, and three individuals were arrested this morning.

According to allegations contained in 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 former Newtown Police sergeant Steven Santucci was receiving shipments of steroid ingredients from China and manufacturing and distributing wholesale quantities of steroids.  The investigation further revealed that other members of the conspiracy were distributing prescription pills, including oxycodone.

Charged in the 12-count superseding indictment are:

STEVEN SANTUCCI, 38, of Waterbury

ALEX KENYHERCZ, 28, of Ansonia

MARK BERTANZA, 33, of Shelton

JASON CHICKOS, 46, of Bridgeport

FRANK PECORA, 53, of Derby

JEFFREY GENTILE, 33, of Ansonia

STEVEN FERNANDES, 54, of Southington

MICHAEL D. MASE, 32, of Sherman

GUIDO VOLPE, 36, of Prospect

JOHN KOCH, 48, of Coventry

LOUIS BORRERO, 52, of Ansonia

SANTUCCI, KENYHERCZ, BERTANZA, CHICKOS, PECORA, GENTILE, FERNANDES and MASE were arrested in late April and were charged by indictment on May 6, 2015.  VOLPE, KOCH and BORRERO were arrested today.

The superseding indictment charges all of the defendants with one count of conspiracy to distribute anabolic steroids, an offense that carries a maximum term of imprisonment of 10 years and a fine of up to $500,000.  SANTUCCI, KENYHERCZ and BERTANZA are also charged with six counts of possession with intent to distribute anabolic steroids, an offense that carries the same statutory penalties.

The superseding indictment also charges KENYHERCZ, BERTANZA, GENTILE, PECORA and BORRERO with one count of conspiracy to distribute and to possess with intent to distribute oxycodone, an offense that carries a maximum term of imprisonment of 20 years and a fine of up to $1 million.  PECORA is also charged with one count of possession with intent to distribute, and distribution of, oxycodone, and possession with intent to distribute cocaine, both of which carry a maximum term of imprisonment of 20 years and a fine of up to $1 million, and with one count of possession of a firearm by a previously convicted felon, which carries a maximum term of imprisonment of 10 years and a fine of up to $250,000.

In addition, SANTUCCI is charged with one count of conspiracy to launder monetary instruments, which carries a maximum term of imprisonment of 20 years and a fine of up to $500,000.  This charge stems from SANTUCCI’s alleged use of proceeds of the sale of anabolic steroids to wire payments to foreign sellers of ingredients to make liquid anabolic steroids, and to purchase drug packaging materials from domestic companies.

PECORA is detained while awaiting trial and the other defendants are released on bond.

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.

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.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SETH WATSON, 30, of Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 51 months of imprisonment, followed by three years of supervised release, for illegally possessing ammunition.

According to court documents and statements made in court, on July 16, 2012, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) received information from the Hartford Police Department’s Shoot Team regarding five individuals who had purchased ammunition from a sporting goods store in East Hartford the previous day.  All five of the individuals, including WATSON, were convicted felons.  The investigation revealed that WATSON and others had purchased one box of 9mm ammunition, one box of .38 Special ammunition and one box of .45 Auto ammunition.  Each of the boxes contained 50 rounds.

The investigation further revealed that the individuals stored firearms and ammunition in the basement of a residence on Pliny Street in Hartford.  A court-authorized search of the residence on July 18, 2012, revealed most of the ammunition that had been purchased on July 15, 2012, as well as a loaded 9mm handgun, a loaded .38 caliber revolver, a loaded pistol grip shotgun, and additional rounds of ammunition.

WATSON has been detained since his arrest on July 20, 2012.  On April 30, 2014, he pleaded guilty to one count of possession of ammunition by a previously convicted felon.

WATSON’s criminal history includes at least eight felony convictions, including a conviction for burglary in the first degree.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department, with the assistance of the East Hartford Police Department.  The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned a two-count indictment charging JAMES CAVE, 44, of Winsted, with federal firearm offenses.  The indictment was returned on May 20, 2015, and CAVE appeared yesterday before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the charges.

According to allegations contained in a previously-filed criminal complaint, on April 7, 2015, CAVE met an undercover ATF agent at a location in Torrington and sold him a Webley, model Mark IV .455 caliber revolver in exchange for $700 in cash.  Investigators subsequently determined that the revolver had been stolen from a home in Connecticut.

It is alleged that CAVE sustained a felony conviction in Connecticut state court in October 2003.

The indictment charges CAVE with one count of possession of a firearm by a convicted felon, an offense that carries a maximum term of imprisonment of 10 years, and one count of dealing firearms without a license, an offense that carries a maximum term of imprisonment of five years.

CAVE was arrested on a criminal complaint on April 30, 2015, and is released on a $100,000 bond.

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

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Torrington Police Department.  The case is being prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, announced that KEITH HAESSLY, 45, of East Hampton, was arrested today and charged by federal criminal complaint with possession, distribution and production of child pornography.

The criminal complaint alleges that in January 2015, the Federal Bureau of Investigation received information that HAESSLY was distributing images of child pornography over the Internet and had engaged in numerous sexually explicit chats related to the sexual exploitation of young boys.  Subsequent investigation revealed that HAESSLY has been posing as a female, using the name “Amy Finch,” and used loop recordings of females to entice boys to engage in sexual activity over webcams through video chat programs such as Skype and Omegle.  HAESSLY then made recordings of the boys engaged in sexual activity.

Investigators conducted a court-authorized search of HAESSLY’s residence earlier today and seized a laptop computer.  HAESSLY was arrested at his place of work.

Following his arrest, HAESSLY appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.

The charge of production of child pornography carries a minimum term of imprisonment of 15 years.

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

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

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, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, announced that MARIAN KOBRYN, 63, of Farmington, waived his right to indictment and pleaded guilty today in New Haven federal court to one count of making a false statement on a federal tax return.

According to court documents and statements made in court, KOBRYN and his wife own and operate Kasia’s Bakery, located on Broad Street in New Britain.  Until recently, Kasia’s Bakery routinely operated on a “cash only” basis.  During the 2010 through 2013 tax years, KOBRYN diverted a total of $730,860 in cash that the business received, deposited the money into his and his wife’s personal bank accounts, and failed to pay $242,889 in federal taxes on the income.

The investigation revealed that KOBRYN attempted to conceal the diverted cash proceeds by regularly traveling to several branches of Farmington Bank to make cash deposits in amounts under $10,000 in order to evade the bank’s currency transaction reporting requirements.

KOBRYN is scheduled to be sentenced by Senior U.S. District Judge Warren W. Eginton in Bridgeport on August 25, 2015, at which he faces a maximum term of imprisonment of three years and a fine of up to $100,000.  KOBRYN also has agreed to pay back taxes and applicable interest and penalties.

This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney David J. Sheldon.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BONNEY J. HEBERT, 59, of Killington, Vermont, waived her right to indictment and pleaded guilty today before Senior U.S. District Judge Alfred V. Covello in Hartford to wire fraud and money laundering charges stemming from her theft of more than $10 million from Hartford-based Aetna Life Insurance Company.

According to court documents and statements made in court, HEBERT was the sole owner and president of Academic Risk Resources and Insurance, LLC (“ARRI”), a risk management and insurance brokerage agency based in Boston.  ARRI’s business included brokering insurance contracts between health insurance providers and colleges or universities in order to provide health insurance for students and other individuals affiliated with the college or university.  In July 2007, HEBERT and ARRI began serving as the broker for a student health insurance contract entered into between Aetna and Rutgers, the State University of New Jersey.  The contract between Aetna and Rutgers provided that premiums would be paid by Rutgers to ARRI and then transmitted by ARRI to Aetna.

Between 2009 and 2012, HEBERT failed to pass along to Aetna $10,358,728 in premiums paid by Rutgers.  She used the stolen funds on personal expenses and to cover the business expenses of ARRI.

HEBERT pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of engaging in monetary transactions in property derived from specified unlawful activity, which carries a maximum term of imprisonment of 10 years.  Judge Covello scheduled sentencing for August 27, 2015.

HEBERT disclosed her fraudulent scheme to Aetna representatives in June 2012.  She subsequently sold ARRI to another business and directed that payments related to the sale be made directly to Aetna.  Through these payments, HEBERT has repaid Aetna approximately $1.59 million.  HEBERT also has not collected more than $900,000 in commissions owed to her by Aetna.  As a result, HEBERT currently owes Aetna $7,846,305.45 in restitution.

This matter has been investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ODAIN J. JOHNSON, 22, of Hartford, pleaded guilty today in Hartford federal court to 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, 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 $81,530 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.  One of the masked men pointed a gun at a customer who entered the bank during the robbery, ordered him to the ground and told him not to look up.  After exiting the bank, the masked 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….”

In pleading guilty, JOHNSON admitted that he participated in the bank robbery, and that he brandished a firearm during the offense.

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

JOHNSON pleaded guilty to one count of bank robbery.  He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on August 31, 2015, at which time he faces a maximum term of imprisonment of 20 years.

This matter is being 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, today announced that RASHAD DANCY, 26, of Bridgeport, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 72 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.

 According to court documents and statements made in court, in the afternoon of May 5, 2014, Bridgeport Police responded to a report of shots fired in front of house on Shelton Street, during which a resident of house was nearly struck.  Witnesses reported the gunfire came from a red Ford Fusion, and subsequent analysis of surveillance camera videos confirmed the reports.  Officers also recovered several 7.62x39 ammunition casings at the scene.

Police then located a red Ford Fusion on Willow Street and saw DANCY enter the car and drive away.  Officers stopped the car, questioned DANCY and recovered a spent rifle cartridge head stamped “762x39.”  DANCY then consented to a search of his residence, where officers seized a loaded .45 caliber semi-automatic handgun, as well as drug packaging materials.

The investigation revealed that DANCY had rented a red Ford Fusion in April 2014 and, that on May 2, 2014, a friend of DANCY’s had been shot and killed during an altercation at a Danbury  nightclub.  The Shelton Street residence where the drive-by shooting occurred was the home to individuals who were involved in an altercation at that nightclub on May 2.

DANCY’s criminal history includes convictions related to trafficking heroin and marijuana.  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.

DANCY has been detained since his arrest on May 5, 2014.  On March 2, 2015, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BERNARD BRANTLEY, 45, of Waterbury, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for his role in a fraudulent federal income tax refund scheme.

According to court documents and statements made in court, between November 2012 and May 2013, Kenya Malcolm, Charles Ross, BRANTLEY and others conspired to file false federal income tax returns in the names of individuals without the individuals’ knowledge.  Malcolm, who operated a business in Arizona called “Biggest Refund Taxes,” held herself out falsely to be a certified public accountant.  As part of the scheme, Malcolm paid Ross, also a resident of Surprise, to recruit individuals to her tax preparation business.  Ross subsequently contacted BRANTLEY in Connecticut and offered him a portion of Ross’s recruitment earnings if BRANTLEY would also recruit clients for Malcolm.  Instead of recruiting clients for tax preparation services, BRANTLEY and individuals that BRANTLEY hired recruited victims under false pretenses, telling them that they were eligible for government funding and not telling them that tax returns would be filed in their names.  BRANTLEY and his associates then collected victims’ Social Security numbers, dates of birth and other personal information and provided that information to Malcolm.

Malcolm, who knew that BRANTLEY was recruiting individuals under false pretenses, used the personal information she was provided, as well as false income and employment information for each victim, to file tax returns that generated large tax refunds.  She then directed a portion of the tax refunds to herself, a portion to Ross and BRANTLEY, and a portion to the victim, usually through a prepaid debit card.

Approximately $2.5 million in fraudulent federal income tax refunds were sought through this scheme, and more than $1 million in refunds were disbursed.

Judge Meyer ordered BRANTLEY to pay restitution in the amount of $395,537.

On February 17, 2015, BRANTLEY pleaded guilty to one count of conspiracy.

Malcolm and Ross have also pleaded guilty and await sentencing.

This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and the U.S. Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala and Senior Litigation Counsel Richard J. Schechter.

Deirdre M. Daly, United States Attorney for the District of Connecticut, Shelly A. Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that on May 26, 2015, JULIO LARA TRINIDAD, 28, of Waterbury, was sentenced by Chief U.S. District Judge Janet C. Hall in New Haven to 144 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.

“One of the Department of Justice’s Tax Division’s highest priorities is prosecuting people who use stolen identities to steal money from the U.S. Treasury by filing false tax returns,” stated U.S. Attorney Daly.  “This scheme involved nearly $6.8 million dollars in fraudulent refunds – money stolen from law abiding taxpayers at an enormous cost to the Treasury.  We hope that this lengthy prison term will deter other potential offenders as these prosecutions will continue to be a priority for our Office.”

“The defendants in this investigation attempted to utilize the mail to further their criminal enterprise,” stated Inspector in Charge Binkowski.  “Based on the diligent work of Postal Inspectors and our state and federal law enforcement partners, Julio Lara Trinidad will be serving a lengthy prison sentence.  This is a clear example that if criminals attempt to illegally utilize the mail, they will be brought to justice.”

“Those who commit stolen identity refund fraud (SIRF) of this magnitude and with this degree of deception deserve to be punished to the full extent of the law,” stated Special Agent in Charge Offord.  “Mr. Trinidad’s 12-year prison sentence highlights the seriousness of SIRF crimes.  The government is not the only victim – identity theft can have a severe emotional and financial impact on its victims.  IRS, along with our law enforcement partners, remains vigilant in identifying, investigating and prosecuting those individuals who perpetrate these schemes.”

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.

In 2011, TRINIDAD was arrested in New Jersey for stealing U.S. Treasury tax refund checks from mailboxes.  He pleaded guilty to a related charge in the District of New Jersey in January 2012.  An arrest warrant was issued for TRINIDAD after he failed to appear for his sentencing in May 2012.  TRINIDAD was arrested on November 23, 2013, and subsequently was charged by indictment in the District of Connecticut.

While he was a fugitive from justice, TRINIDAD and his co-conspirators opened at least 59 bank accounts in the names of identity theft victims, depositing U.S. Treasury tax refund checks into the accounts, and then quickly withdrawing 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.

TRINIDAD’s co-defendants, Jerry De Los Santos Rodriguez and Cesar Penson-Perez, have admitted that they worked with TRINIDAD to open bank accounts using fraudulent identities.

In addition, between July and October 2013, TRINIDAD and Ramon Mena sold more than $60,000 in fraudulently-obtained U.S. Treasury checks to an individual working with law enforcement.  TRINIDAD and Mena received some of these checks from Pricilla Brito and Yowandy DeLeon.

TRINIDAD has been detained since his arrest.  On February 10, 2015, TRINIDAD pleaded guilty to one count of theft of public money and one count of aggravated identity theft.

De Los Santos Rodriguez, Penson-Perez, Mena, Brito and DeLeon previously pleaded guilty.

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

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MIGUEL TORRES, 45, of Waterbury, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in Bridgeport to 120 months of imprisonment, followed by 10 years of supervised release, for enticing a minor female to send him sexually explicit videos and pictures of herself.

According to court documents and statements made in court, TORRES met a minor female at the church they both attended.  TORRES offered to mentor the minor, gave her his cell phone number, and they began communicating via text messages.  In late June 2013, when the minor was 14 years old, TORRES began to ask the minor to send him sexually explicit videos and pictures.  Their text message conversations became sexually explicit and TORRES persuaded the minor to take sexually explicit videos and pictures of herself and send them to him.  TORRES also sent the minor sexually explicit videos and pictures of himself, and he told her that he had engaged in sexual conduct with other girls so that the minor would be comfortable with it.

TORRES has been detained since his arrest on related state charges on August 30, 2013, and he pleaded guilty to the offense on March 4, 2015.

This matter was investigated by the Waterbury Police Department and Homeland Security Investigations.  The Connecticut State’s Attorney’s Office in Waterbury also provided critical assistance in this investigation.  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, announced that BRANDON KEY BENTLEY, 31, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 12 months and one day of imprisonment, followed by five years of supervised release, for his role in a check fraud ring.

According to court documents and statements made in court, between July 2010 and May 2011, BENTLEY, Langston Neal and Benjii Carr obtained stolen checks, recruited “runners” who cashed the checks, and altered the checks to list the runners as the lawful payees.  The three individuals drove the runners to several Connecticut bank branches and directed them to enter the banks and cash the checks.  The runners were paid a small part of the cash proceeds.  Through this scheme, 39 checks totaling $114,102.34 were altered and presented to banks, and 37 of those checks totaling $104,070.94 were cashed by the banks.

On September 9, 2014, BENTLEY pleaded guilty to one count of conspiracy to commit bank fraud.

Neal, of Charlotte, N.C., and Carr, of New Haven, previously pleaded guilty to the same charge and were sentenced to prison terms of 18 months and 30 months, respectively.

Each of the three defendants was ordered to pay full restitution.

This matter was investigated by the U.S. Postal Inspection Service, along with the Connecticut Financial Fraud Task Force and the Branford, Madison, Middlebury, Milford, New Britain, New Haven, New Milford, North Branford, Waterbury, Woodbridge and Southbury Police Departments.  U.S. Attorney Daly also acknowledged the cooperation and assistance of the State’s Attorney’s Offices for the Judicial Districts of New Haven, Waterbury, Fairfield and Tolland.  The case was prosecuted by Assistant U.S. Attorney Henry K. Kopel.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that FRANK BIANCUR, JR., 40, of West Haven, was arrested today on a federal criminal complaint charging him with seeking and receiving illegal payments while employed as a Zoning Enforcement Officer for the Town of East Haven.

According to the criminal complaint and to statements made in court, BIANCUR has been employed as the Town of East Haven’s Planning and Zoning Administrator/Zoning Enforcement Officer.  Earlier this month, a resident of East Haven contacted the East Haven Police Department and the FBI with information that he/she had been extorted by BIANCUR since approximately October 2012 and, as a result, had made cash payments to BIANCUR.

The complaint alleges that, most recently, on May 19, 2015, BIANCUR called the victim and informed the victim that BIANCUR had to inspect an addition to the victim’s residence.  Although BIANCUR stated that he was “fighting” for the victim, he also demanded a payment of $200 or he would make the victim tear down the addition.  On May 21, 2015, the victim engaged in a consensually-recorded meeting with BIANCUR at BIANCUR’s office in East Haven Town Hall.  During the meeting, the victim gave BIANCUR $200 in cash, which BIANCUR put in his pocket.

The complaint charges BIANCUR with one count of theft of honest services mail fraud, which carries a maximum term of imprisonment of 20 years.

BIANCUR was arrested this morning at his residence.  He appeared before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and was released on a $20,000 bond.

Prior to his employment by the Town of East Haven, BIANCUR was employed by the City of West Haven and the City of Bridgeport.

Citizens with information that may be helpful to this ongoing investigation are encouraged to contact the FBI at (203) 777-6311.

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

This matter is being investigated by the Connecticut Public Corruption Task Force and the East Haven Police Department.  The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.

The Connecticut Public Corruption Task Force includes the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development – Office of Inspector General and U.S. Department of Health and Human Services – Office of Inspector General.  Citizens can contact the Task Force to report corrupt activity by calling 1-800-CALL-FBI (1-800-225-5324).

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RONDELL JACKSON, also known as “D-Rugs,” 28, of East Hartford, waived his right to indictment and pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to one count of possession of a firearm by a convicted felon.

According to court documents and statements made in court, on September 25, 2014, JACKSON sold a loaded Vektor 9mm semi-automatic pistol to another individual in exchange for $550.  The firearm had been reported stolen to the East Hartford Police Department in November 2013 in connection with a burglary complaint.

JACKSON was arrested on October 29, 2014.

JACKSON’s criminal history includes several state felony convictions, including convictions for robbery, possession of narcotics and sexual assault.  He was on state probation at the time of the offense.

Judge Shea scheduled for sentencing for October 30, 2015, at which time JACKSON faces a maximum term of imprisonment of 10 years.

This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Hartford Police Department.  The case is being prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MOYAN FORBES, 23, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 60 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.

According to court documents and statements made in court, in January 2012, the FBI Bridgeport Safe Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force began an investigation into narcotics trafficking and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport.  The investigation revealed that Ronell Hanks, also known as “Biz” and “Ace,” headed an organization that sold heroin and crack cocaine 24-hours a day, seven days a week.  FORBES supplied Hanks with cocaine, which Hanks “cooked” into crack.

During the course of the investigation, investigators seized approximately one kilogram of heroin, one-half kilogram of crack cocaine, approximately $100,000 in cash, three vehicles, jewelry, nine firearms, and more than 200 rounds of ammunition.  One of the firearms was an assault-type rifle and four of the firearms were stolen.

FORBES was arrested on December 5, 2013.  On that date, a search of his residence revealed a Beretta handgun in the kitchen next to a loaded magazine.  Investigators also seized approximately $1,000 from FORBES’s pants pocket, as well as one round of ammunition that matched the ammunition in the seized firearm.

On December 18, 2013, a grand jury in Bridgeport returned an indictment charging Hanks, FORBES and 12 other individuals with a variety of narcotics and firearms trafficking offenses.

FORBES has been detained since his arrest.  On August 14, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute at least 500 grams of cocaine.

Hanks pleaded guilty and, on February 25, 2015, was sentenced to 17 years of imprisonment.

This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force, in coordination with the Bridgeport Police Department, the Trumbull Police Department and the Connecticut State Police Statewide Narcotics Task Force.  The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the State’s Attorney for the Judicial District of Fairfield are assisting this investigation and prosecution.  The case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Rahul Kale.

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 Middletown Police Chief William McKenna, today announced that a federal grand jury in New Haven has returned an indictment charging ERIC LONERGAN, 22, of Rio de Janeiro, Brazil, and ZACHARY KRAMER, 21 of Bethesda, Maryland, with distributing controlled substances that caused multiple Wesleyan University students to overdose during the past school year.

The five-count indictment was returned yesterday, and LONERGAN and KRAMER are scheduled to appear before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven at noon today.

“Our hope is that this prosecution puts to bed the misperception that synthetic drugs are harmless party drugs,” said U.S. Attorney Daly.  “As the allegations in this indictment clearly show, these drugs are highly dangerous.  Many of the Wesleyan students who overdosed were seriously ill and one student nearly died.  The growth and evolution of synthetic drugs is a serious public health concern.  As is clear today, together with the DEA and our local partners, we will prosecute these cases.  We thank the DEA, the Middlesex State’s Attorney’s Office and the Middletown Police Department for their collaboration and diligent work in this ongoing investigation.”

“The distribution and use of synthetic drugs is a potentially deadly game,” said DEA Special Agent in Charge Ferguson.  “The truth of the matter is that when someone uses a synthetic drug, they are playing Russian roulette with their life.  There is no way for a user to know what deadly combination of drugs is in that capsule.  The DEA New England Field Division and our law enforcement partners are committed to investigating individuals and groups that traffic synthetic drugs.”

“I am very proud of the Middletown Police Department members and all public safety officials who have worked on the WESU Molly incident,” said Middletown Police Chief McKenna.  “We received incredible assistance from outside agencies, including the Middlesex County State’s Attorney’s office, the State of Connecticut Forensics Crime Laboratory, medical providers and WESU officials during the course of the investigation.  The health of many students was jeopardized, causing a major public safety concern to our community.  We are now fortunate to partner up with, and give continued assistance to, the U.S. Attorney’s office, DEA and other federal agencies in their continued efforts to achieve the results that are being reported today.  The citizens of Middletown and the State of Connecticut are very fortunate to have the combined efforts of local, state and federal agencies working in collaboration to achieve law enforcement’s ultimate goal of providing the safety and security that they deserve.”

According to the allegations set forth in the indictment, LONERGAN and KRAMER were students at Wesleyan in Middletown, Connecticut.  Beginning in approximately November 2013, LONERGAN began purchasing and redistributing MDMA, also known as “Molly,” a Schedule I controlled substance, to students on or in the vicinity of the Wesleyan campus.  Charging approximately $20 per .1 gram of Molly or $200 per gram, LONERGAN regularly sold Molly from his dorm room between 5:00 p.m. and 9:00 p.m. during most nights.  LONERGAN also counseled students on how to ingest Molly and other psychedelic drugs.  At one point in 2014, after the administration at Wesleyan sent out a campus-wide communication warning of the dangers of ingesting controlled substances like Molly, LONERGAN responded by distributing a pamphlet instructing students on the use of psychedelic drugs.  Also in 2014, KRAMER began purchasing Molly from LONERGAN and distributing it to students at Wesleyan.

The indictment alleges that in September 2014, LONERGAN agreed to provide Molly to students who were planning a “rolling” party at Wesleyan, which is a party where guests ingest Molly.  LONERGAN provided several grams of what he represented to be Molly to an individual who then distributed it to students in .1 gram capsules.  On September 13, 2014, several Wesleyan students overdosed on the substance provided by LONERGAN and some were transported to the hospital.  The students either swallowed the capsule or opened the capsules and snorted the powder.  Many of them had strong adverse reactions, complaining of extreme lethargy or an irrational fear of everything and everyone around them.  Some of these students did not recover for at least three days.  One student snorted only .05 grams of the substance and within 10 minutes, passed out.  After she was revived and taken to her room, she remained bedridden for two days before finally being transported to the hospital.

According to the indictment, after the September 2014 overdoses, LONERGAN sent electronic communications to several of the students, assuring them that the substance he had sold them was safe and that he had tested it himself to make certain it was Molly.  He also sent some of these students a link to a video purporting to show him performing a test on the substance that yielded a positive result for MDMA.  In February 2015, one of the students, who had earlier overdosed, provided a capsule that she had purchased from LONERGAN in September 2014 to the Middletown Police.  A lab test on that capsule revealed that it did not contain MDMA, but rather AB Fubinaca, which is a synthetic cannabinoid and a Schedule I controlled substance, and 6-MAPB, which is an analogue of MDMA.

The indictment further alleges that in early 2015, KRAMER, who had taken over for LONERGAN as the primary supplier of Molly at Wesleyan, provided Molly to some of his friends for redistribution to students on campus.  On February 21, 2015, 11 individuals, including 10 Wesleyan students, overdosed on a substance they believed was Molly, and many were transported to the hospital.  These students reported similar symptoms as those who overdosed in September 2014.  Two of the students were in critical condition, and one of those students had to be revived after his heart stopped.  All of these students obtained the purported Molly through individual distributers who were supplied directly by KRAMER.  After the events of February 21, law enforcement officers seized the substance identified as Molly from one of KRAMER’s distributers and sent it to a toxicology laboratory for testing.  Laboratory analysis confirmed that the powdered substance contained AB Fubinaca.

The indictment charges both LONERGAN and KRAMER with one count of conspiracy to distribute and possess with intent to distribute MDMA and AB Fubinaca, and one count of attempted distribution of MDMA and distribution of AB Fubinaca.  Each of these charges carries a maximum term of imprisonment of 20 years and a fine of up to $1 million.  The indictment also charges LONERGAN and KRAMER with distribution of MDMA within 1000 feet of a private college, a charge that carries a mandatory minimum term of imprisonment of one year, a maximum term of imprisonment of 40 years, and a fine of up to $2 million.

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

This matter is being investigated by the Drug Enforcement Administration and the Middletown Police Department, with the assistance of the State of Connecticut’s Forensic Science Laboratory.

U.S. Attorney Daly acknowledged the support and assistance of the Middlesex State’s Attorney’s Office, which is prosecuting several state cases stemming from these overdose events.

This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector, with the assistance of Senior Assistant State’s Attorney Eugene Calistro.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID J. BERTNAGEL, 41, of Thomaston, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for embezzling more than $800,000 from the Town of Plymouth.  Judge Meyer also ordered BERTNAGEL to perform 1,500 hours of community service while on supervised release.

According to court documents and statements made in court, from October 2011 through October 2014, BERTNAGEL was employed as the Finance Director for the Town of Plymouth.  During that time period, BERTNAGEL issued 207 checks totaling approximately $808,030 from the Town’s payroll account to himself.  BERTNAGEL used the embezzled funds to make mortgage payments, pay credit card bills, fund home improvement projects and purchase more than $100,000 in coins, stamps and other collectibles.  He also converted more than $182,000 of the stolen funds by way of cashed checks, ATM withdrawals and money orders.

In addition, BERTNAGEL’s federal tax returns for the 2012 and 2013 tax years failed to report any of his embezzled income, resulting in a tax loss to the government of $145,564 for those two years.  BERTNAGEL also did not file a tax return with the IRS for the 2011 tax year.

BERTNAGEL was arrested on January 20, 2015.  On February 20, 2015, he pleaded guilty to one count of theft from a local government receiving federal funds and one count making and subscribing a false tax return.

Judge Meyer ordered BERTNAGEL to make restitution in the amount of $808,029.94 to the Town of Plymouth, and to cooperate with the IRS to pay all outstanding taxes, penalties and interest.  BERTNAGEL also has agreed to forfeit more than $45,000 that he held in bank accounts, and assorted jewelry, stamps, coins and other collectibles that were seized on the date of his arrest.

This matter was investigated by the Connecticut Public Corruption Task Force, which includes the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development – Office of Inspector General and U.S. Department of Health and Human Services – Office of Inspector General.  The case was prosecuted by Assistant U.S. Attorney Christopher M. Mattei.

Citizens are encouraged to report corrupt activity to the Connecticut Public Corruption Task Force by calling 1-800-CALL-FBI (1-800-225-5324).

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that the U.S. Attorney’s Office is nearing completion of a review of hotels in and around New Haven to determine if they are being operated in compliance with the Americans with Disabilities Act (ADA).

Under federal law, private entities that own or operate “places of public accommodation,” which includes hotels, are prohibited from discriminating on the basis of disability.  The ADA authorizes the U.S. Department of Justice to investigate complaints and to undertake periodic reviews to determine compliance by covered entities.  The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.

As part of a compliance review survey, 12 New Haven area hotels, which were randomly selected, were asked to complete and return a survey form.  Onsite inspections to confirm survey responses were then conducted and each hotel was reviewed for its compliance with federal law.  Six of the surveyed hotels were found to have ADA violations.  The government has been working with the owners and operators of each hotel found in violation in an effort to secure voluntary compliance.  To date, three of the six hotels found in violation, the La Quinta Inn and Suites, Courtyard Marriott and New Haven Hotel, have entered into settlement agreements with the government and are working cooperatively with the government to address the violations.

The government continues to work with the three remaining hotels to secure voluntary compliance agreements and address existing ADA violations.

“The Americans with Disabilities Act ensures that residents and visitors alike are able to access and enjoy the state’s hotels and other public accommodations,” stated U.S. Attorney Daly.  “Ensuring these public places are equally accessible to all is essential for businesses to properly serve a diverse population who live, work and visit Connecticut.  We look forward to working with the owners and operators of these hotels as we assess their compliance with federal law and work cooperatively to secure voluntary compliance.”

The hotel survey was conducted in accordance with the Justice Department’s statutory responsibility to review compliance with federal law, and not in response to any specific complaint against any of the hotels within the scope of the review.  Any member of the public who wishes to file a complaint alleging that a hotel or any other place of public accommodation within the District of Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.

Additional information about the ADA can be found at www.ada.gov, or by calling the Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).  More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.

This matter was handled by Assistant U.S. Attorneys David Nelson, Vanessa Avery, and Ndidi N. Moses, and former Assistant U.S. Attorney Lisa Perkins, in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on May 19, DAMONT GEE, also known as “Monty,” 39, of Bridgeport, was sentenced by Chief U.S. District Judge Janet C. Hall in New Haven to 120 months of imprisonment, followed by five years of supervised release, for trafficking cocaine

This matter stems from “Operation Slim Fast,” a joint law enforcement investigation that focused on two drug trafficking organizations, one that operated out of Bridgeport and one that operated out of Bridgeport, Puerto Rico, and Springfield, Mass.  In 2010, members of the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force initiated an investigation of narcotics trafficking activity in and around the Marina Village Housing Complex in Bridgeport that focused primarily on the Marina Village Bloods, a violent narcotics trafficking organization.  Members of the Marina Village Bloods have been responsible for, or connected to, multiple shootings in Bridgeport.

The investigation revealed that members of the Sex, Money, Murder set of the Marina Village Bloods, sold large quantities of narcotics from an abandoned residence at 105/107 Johnson Street, which is located across from the street from the Marina Village Housing Complex.

GEE was believed to have been a member, or close associate, of the Marina Village Bloods, until his brother, Richard Gee, was killed in a gun battle across the street from 105/107 Johnson Street on July 17, 2010.

Between September and November 2010, the Task Force made five controlled purchases of a total of approximately 449 grams of cocaine from GEE.  Subsequent intercepted calls and surveillance confirmed that GEE was the source of supply of cocaine for several street-level dealers and customers in the Bridgeport area.

GEE was arrested on January 4, 2011, after he and an associate traveled to a meeting location in Hartford to purchase four kilograms of cocaine.  Task Force officers seized the cocaine, as well as more than $100,000 in cash from GEE and his associate.

GEE has been detained since his arrest.  On June 6, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.

As a result of this investigation, 19 individuals were charged with various narcotics and firearms related offenses, and law enforcement officers seized approximately four kilograms of cocaine, one kilogram of crack cocaine, a quantity of heroin, an SKS assault rifle, five handguns and more than $150,000 in cash.

This matter was investigated by the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force, including personnel from the FBI and the Bridgeport, Norwalk and Trumbull Police Departments, with assistance from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Drug Enforcement Administration, Connecticut State Police, and Hartford, Stratford and Stamford Police Departments.

The case was prosecuted by Assistant U.S. Attorneys Tracy Dayton and Doug Morabito.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PETER M. CLARK, 57, of Woodbury, was arrested today on a federal criminal complaint charging him with stealing more than $1.8 million from the estate of an Oxford woman who died in 2010.

According to the criminal complaint, 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 at least $1.8 million from Strong’s estate for his own use.

The complaint charges CLARK with one count of mail fraud, which carries a maximum term of imprisonment of 20 years.

CLARK was arrested this morning at his residence.  He appeared before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and will be released after he posts a $500,000 bond that will be co-signed by family members.

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

This matter is being investigated by the 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, and William Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that TROY HESTER, 42, of Hartford, pleaded guilty yesterday in Bridgeport federal court to one count of tax evasion.

This matter stems from an Internal Revenue Service investigation into State of Connecticut employees and others who had little or no federal withholding taken out of their paychecks and who failed to file income tax returns.  The investigation revealed that certain individuals submitted fraudulent W-4 forms claiming numerous exemptions, or that they were exempt, and had little or no money withheld from their wages.

According to court documents and statements made in court, during the 2008 through 2013 tax years, HESTER, while employed by the Metropolitan District Commission, paid little or no federal income taxes on approximately $438,877 in income he received, resulting in a federal tax loss of approximately $70,480.

HESTER is scheduled to be sentenced on August 11, 2015, by U.S. District Judge Alvin W. Thompson in Hartford.  He faces a maximum term of imprisonment of five years, a fine of up to $250,000, and is required to pay all back taxes, plus interest and penalties.

This case is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Susan Wines.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that LESTER JOY, 34, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 27 months of imprisonment, followed by five years of supervised release, for failing to register as a sex offender.

The Sex Offender Registration and Notification Act (“SORNA”), which was passed by Congress in 2006 as part of the Adam Walsh Act, provides a comprehensive set of minimum standards for sex offender registration and notification in the United States and seeks to strengthen the nationwide network of sex offender registration and notification programs.  In part, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.

According to court documents and statements made in court, on October 25, 2002, JOY was convicted in the State of New Jersey of sexual assault in the second degree, endangering the welfare of a child in the third degree and theft in the third degree.  For these offenses, he was sentenced to three years of imprisonment, lifetime community supervision and was subject to lifetime registration as a sex offender.  On January 4, 2006, JOY was convicted in Suffolk County, New York, of three counts of rape in the third degree, two counts of criminal sexual acts in the third degree and two counts of disseminating indecent material to a minor.  For these offenses, he was sentenced to a period of 42 to 84 months of incarceration and lifetime probation.

In 2013, prior to his release from prison, JOY was informed of his registration obligations under SORNA and he signed forms stating that he understood his sex offender registration requirements in both New York and New Jersey.

On November 30, 2013, JOY was released from the Morris County, New Jersey jail following service of a sentence for violation of his lifetime term of community supervision in New Jersey.  However, he did not register as a sex offender in either New Jersey or New York, and moved to Connecticut.  He failed to notify New Jersey, New York and Connecticut officials of his move to Connecticut, as required.

JOY has been detained since his arrest in New Haven on March 16, 2014.  He pleaded guilty to the offense on February 23, 2015.

This matter was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorney Deborah R. Slater.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that, on May 18, a federal jury in Bridgeport found TYSHAWN McDADE, also known as “S Dot” and “S Diddy,” 30, of Hartford, guilty of crack cocaine trafficking offenses.

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, distributed crack cocaine in the Westland Street area of Hartford.

The evidence at trial proved that McDADE conspired with Scott and others to distribute crack cocaine.  On March 3, 2014, McDADE sold a quantity of crack to an individual working with law enforcement.

The jury found McDADE guilty of one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”), and one count of possession with intent to distribute, and distribution of, cocaine base.  When he is sentenced by U.S. District Judge Jeffrey A. Meyer, McDADE faces a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life

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

This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division.  The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.  The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants.  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 TRUMAINE HEARST, also known as “Man,” 21, of Bridgeport, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 336 months of imprisonment, followed by five years of supervised release, for his involvement in the October 2012 murder of Dawayne Cobb in Bridgeport.

According to court documents and statements made in court, on October 10, 2012, at approximately 6:20 p.m., Dawayne Cobb was discovered in the driver seat of an idling vehicle in the vicinity of 220 Sunshine Circle in Bridgeport.  Cobb had gunshot wounds in his shoulder and abdomen.

HEARST has admitted that, on that date, he and Johnnie Jefferson, also known as “Jeezy,” planned to rob Cobb of marijuana.  HEARST and Jefferson then drove to Sunshine Circle to meet Cobb, murdered him and stole from him a jar containing approximately two ounces of marijuana.  HEARST and Jefferson transported the stolen marijuana to a Bridgeport residence and subsequently distributed it amongst themselves and others.

On November 10, 2014, HEARST pleaded guilty to one count of causing the death of Dawayne Cobb through the use of a firearm.

Jefferson pleaded guilty to the same charge on November 3, 2014, and awaits sentencing.

HEARST and Jefferson have been detained since July 16, 2013.

U.S. Attorney Daly noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.

This matter was investigated by Bridgeport Police Department and the FBI’s Bridgeport Safe Streets Task Force.  The case is being prosecuted by Assistant U.S. Attorneys Tracy Dayton and Rahul Kale.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSHUA EASTERLING, also known as “Skeet,” “Squash” and “SQ,” 28, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 120 months of imprisonment, followed by eight years of supervised release, for distributing crack cocaine.

This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End.  As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.

According to court documents and statements made in court, the investigation revealed EASTERLING controlled the distribution of crack cocaine in Hartford’s lower Vine Street area.  EASTERLING distributed crack to other street-level dealers, and also sold the drug directly to customers.

During the investigation, EASTERLING’s drug trafficking organization was responsible for distributing more than six kilograms of crack.

EASTERLING’s criminal history includes several felony convictions.

EASTERLING has been detained since his arrest on February 23, 2012, and he pleaded guilty on February 15, 2013.

This matter was investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction.  The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JACOB KEELS, 33, of Norwalk, was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 57 months of imprisonment, followed by three years of supervised release, for possessing a stolen firearm.

According to court documents and statements made in court, in the early morning hours of October 17, 2013, KEELS attempted to flee from Norwalk Police on South Main Street.  As KEELS was being apprehended, a .22 caliber revolver dropped from his waistband.  The firearm had been reported stolen in Bethel.

KEELS’ criminal history includes multiple felony narcotics convictions.

KEELS has been detained since his arrest.  On February 5, 2015, he pleaded guilty to one count of possession of a stolen firearm.

This matter was investigated by the Norwalk Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  The case was prosecuted by Assistant U.S. Attorney Vanessa Richards.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that the U.S. Attorney’s Office and the Town of Wallingford Police Department have reached a settlement agreement under which the Wallingford Police Department agrees to implement training and ensure its policies comply with the effective communication requirements of Americans with Disabilities Act (ADA).  The Police Department voluntarily agreed to enter into the settlement agreement during the Justice Department’s investigation into allegations that the Police Department failed to effectively communicate with persons who are deaf and hard of hearing.

“We commend the Town of Wallingford for voluntarily entering into this settlement agreement,” stated U.S. Attorney Daly.  “By doing so, they are ensuring that there will be effective communication with those members of their community who are deaf or hard of hearing.  The Town has been cooperative throughout this investigation.  The decision to agree to the terms of the settlement reflects the Town’s strong commitment to both protect public safety and to uphold individuals’ civil rights.”

The Americans with Disabilities Act (ADA) requires that “public entities,” including local governments and police departments, ensure effective communication with qualified individuals with disabilities.  Under this agreement, a person who is deaf or hard of hearing will be able to benefit from the same services as every other person.

The agreement requires that the Wallingford Police Department:

• Ensure its policies and practices are nondiscriminatory, and provide effective communication for people with communication disabilities, including the provision of sign language interpreters;
• Post a notice of the policy in public areas;
• Train staff on the policies; and
• Ensure that appropriate auxiliary aids and services, including qualified interpreters and specifically tactile interpreters, are made available to all individuals who are deaf or hard of hearing.

Individuals who believe that they may have been victims of discrimination can file a complaint with the U.S. Attorney’s Office at 203-821-3700.   More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.  Additional information about the ADA can be found at www.ada.gov, or by calling the Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).

This matter was handled by Assistant U.S. Attorneys Ndidi N. Moses and Michelle McConaghy, with the assistance of the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EFK OF CONNECTICUT, INC., d/b/a NELSON AMBULANCE SERVICE, located in North Haven, and SKMP ENTERPRISES, INC., d/b/a ACCESS AMBULANCE SERVICE, located in Bridgeport, have entered into a civil settlement agreement with the government in which they will pay $595,000 to resolve allegations that they improperly billed the Medicare and Medicaid programs.

The government alleges that NELSON AMBULANCE SERVICE (“NELSON”) and ACCESS AMBULANCE SERVICE (“ACCESS”), routinely billed for non-emergency, scheduled ambulance services that were not medically necessary.  The medically unnecessary ambulance services were provided to Medicare and Medicaid beneficiaries being transported to and from their regularly scheduled dialysis treatments.  Patients transported by NELSON and ACCESS were typically picked up at their residences or at nursing homes and transported by ambulance to and from dialysis treatment three times per week.

Relevant regulations indicate that medical necessity for ambulance transport is established when the patient’s condition is such that the use of any other means of transportation is contraindicated.  The regulations indicate that the patient must be “bed confined” or otherwise have a medical condition such that transportation by ambulance is medically required.

The government alleges that NELSON and ACCESS, which have the same ownership, regularly transported patients by ambulance, at an average cost of approximately $380 for each round trip, when the patients did not meet the criteria of being “bed confined” or otherwise have a medical condition requiring transportation by ambulance.  Some of the same patients NELSON and ACCESS regularly transported by ambulance were transported to and from other doctor’s visits utilizing a wheelchair van, at an average cost of only $60 for each round trip.

To resolve their liability, NELSON and ACCESS will pay $595,000 for conduct occurring between January 2008 and August 2013.

In entering into the civil settlement agreement, NELSON and ACCESS did not admit liability.

This matter was investigated by the Office of Inspector General for the Department of Health and Human Services and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and Auditor Kevin Saunders.

People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that the U.S. Attorney’s Office has reached an Americans with Disabilities Act (ADA) settlement with Stamford-based Patriot National Bank to ensure equal access for individuals with disabilities at all Patriot Bank locations.

The agreement resolves an ADA complaint filed by an individual who is deaf or hard of hearing who alleged that Patriot National Bank would not do business with her over the phone using a telecommunications relay service.  Since the commencement of the investigation, Patriot National Bank has worked cooperatively to develop and amend its policies and practices to comply with the ADA and the Department of Justice’s implementing regulations.

“Individuals who have disabilities must not be denied equal access to the services offered by financial institutions simply because of their disability,” said U.S. Attorney Daly.  “Patriot National Bank’s cooperation during this investigation has shown that it is committed to equal access and effective communication with its customers who have disabilities.  Our office has received other complaints against other major financial institutions, alleging that they are also refusing to communicate with individuals with disabilities who use relay services to communicate by telephone.  These refusals are discrimination, and we will be looking into these complaints.”

The agreement requires Patriot Bank to accept all relay calls in all of its branches and amend its policies, practices, and training to ensure the removal of barriers to access at its retail stores.  This includes, but is not limited to:

• Providing appropriate auxiliary aids and services to persons with disabilities when necessary to ensure effective communication throughout its financial services and programs.
• Adopting and enforcing a policy on effective communication with individuals who are deaf, are hard of hearing or have speech disabilities, for all retail stores and financial services.
• Posting a summary of the policy in retail locations and distributing the policy to current and new employees and contractors.
• Accepting calls made through a relay service operator by customers who are deaf, are hard of hearing or have speech disabilities on an equivalent basis to calls from other customers. This includes eliminating special security provisions applied to relay calls and using the same caller verification procedures whether or not a customer uses a relay service.
• Ensuring that its ATMs and websites are accessible to individuals with disabilities.
• Providing staff training on the ADA and Patriot Bank’s obligations to provide effective communication to individuals with disabilities.
• Posting and maintaining in a conspicuous location in all banking stores a notice stating that individuals with disabilities have a right under the ADA to request a sign language or oral interpreter or other auxiliary aids or services.

Title III of the ADA prohibits discrimination against individuals with disabilities by businesses that serve the public. Among other things, the ADA requires financial institutions, accountants, lawyers, doctors and other businesses to provide auxiliary aids and services that are necessary for effective communication.  For individuals who are deaf or hard of hearing, auxiliary aids include qualified sign language or oral interpreters, use of relay services, computer-assisted real time transcription, and, for simple communications, the exchange of written notes.

Individuals who believe that they may have been victims of discrimination can file a complaint with the U.S. Attorney’s Office at 203-821-3700.   More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.  Additional information about the ADA can be found at www.ada.gov, or by calling the Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).

This matter was handled by Assistant U.S. Attorney Ndidi N. Moses with the assistance of the Disability Rights Section of the U.S. Department of Justice Civil Rights Division. 

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHELLE CRAWFORD, 33, of Greenwich, waived her right to indictment and pleaded guilty today in Hartford federal court to one count of wire fraud stemming from her embezzlement of more than $176,000 from her employer.

According to court documents and statements made in court, CRAWFORD worked as the office manager for the New England Oil Company (“NEOC”) located in Greenwich.  In her capacity as the office manager, CRAWFORD had access to the bank accounts, credit cards and payment system of NEOC.   Between May 2011 and May 2014, CRAWFORD embezzled approximately $176,735 from NEOC by making unauthorized withdrawals and by using company funds to pay personal expenses while disguising them in company records as legitimate NEOC expenses.

CRAWFORD is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on July 29, 2015, at which time she faces a maximum term of imprisonment of 20 years.

This investigation was conducted by the U.S. Secret Service, the Greenwich Police Department and the Connecticut Financial Crimes Task Force.  The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that BRANDON SAPP, 28, of Waterbury, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 60 months of imprisonment, followed by three years of supervised release, for possessing a firearm and heroin.

According to court documents and statements made in court, on August 5, 2014, Watertown Police observed SAPP drive up to a residence on Franklin Avenue and conduct what appeared to be a narcotics transaction with another individual standing outside of the home.  When officers attempted to stop his car, SAPP pulled away at a high rate of speed.  In the ensuing pursuit, SAPP struck a police vehicle, exited his car and fled on foot.  He was apprehended a short time later.

A search of the route through which SAPP had fled revealed a 9mm semi-automatic pistol, and a search of his car revealed three 9mm firearm magazines, 15 rounds of 9mm ammunition and approximately 375 baggies of heroin, many of which were marked with the label “Obsession.”  SAPP also possessed approximately $990 in cash.

On January 22, 2015, SAPP pleaded guilty to one count of possession of heroin with the intent to distribute, and one count of possession of a firearm in furtherance of a drug trafficking crime.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Watertown Police Department.  The case was prosecuted by Assistant U.S. Attorney Gabriel J. Vidoni.       

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GABRIEL SERRANO, 49, of West Hartford, was sentenced today by Judge Alvin W. Thompson to 12 months and one day of imprisonment, followed five years of supervised release, for his role in an extensive mortgage fraud scheme.

SERRANO, a former attorney, was a partner at the law firm of Serrano & Serrano, LLC in West Hartford until December 2013 when he was suspended from the bar.

According to court documents and statements made in court, from approximately June 2005 to at least November 2008, SERRANO was involved in a mortgage fraud conspiracy with co-defendants Filippos Milios, Malgorzata Karas-Golka, Carmelinda Marotta, Daniel Monteiro, and others that involved the use of straw borrowers, false mortgage applications, false HUD-1 forms, fraudulent down payments, and false verification forms for the purchase of over 50 houses in Hartford, New Haven, and Middlesex counties.  SERRANO served as the closing attorney on at least two dozen fraudulent transactions.

SERRANO often served as the closing attorney when Milios purchased properties with financing from private lenders.  Later, when Milios sold many of the properties to a buyer, SERRANO usually represented the buyer.  In connection with many of the transactions where Milios sold properties, SERRANO knew that Milios, and not the borrower, had provided the required down payment checks on behalf of the borrower.  SERRANO often released the seller’s proceeds checks to Milios before receiving a down payment, and he knew that Milios would use the seller’s proceeds checks to obtain the down payment check for the same transaction.  In this way, contrary to what SERRANO led the mortgage lenders to believe, the borrowers were purchasing the properties with no down payment funds of their own.

In addition, some of the borrowers purchased multiple properties from Milios and represented to the mortgage lenders that they were purchasing each of the properties as primary residences.  SERRANO knew that the borrowers did not intend to use the properties as primary residences.

In the course of many of the fraudulent closings involving Milios’s sale to borrowers, SERRANO received mortgage proceeds from banks and mortgage lenders.  SERRANO would frequently disburse some of those proceeds to private lenders who had loaned Milios money to purchase those properties.

The loss attributable to SERRANO’s conduct is this scheme is approximately $3.5 million.  The court will hold a subsequent hearing to determine restitution.

On August 6, 2013, SERRANO pleaded guilty to one count of conspiracy to commit mail and bank fraud, and one count of conspiracy to commit money laundering.

Milios, Karas-Golka, Marotta and Monteiro also pleaded guilty and were sentenced to prison terms of 97 months, 30 months, 30 months and 13 months, respectively.

This matter was investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service – Criminal Investigation Division, the U.S. Postal Inspection Service and the Federal Bureau of Investigation.  The case was prosecuted by Assistant U.S. Attorneys David T. Huang and William J. Nardini.

Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that KEVIN WALLIN, 63, last residing in Waterbury, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 65 months of imprisonment, followed by five years of supervised release, for trafficking methamphetamine (“meth”).

“Meth is a highly-addictive drug that consumes its user and has ravaged other parts of the country,” stated U.S. Attorney Daly.  “Federal, state and local law enforcement continue to work hard to thwart meth distribution and abuse here in Connecticut.  The DEA and Connecticut State Police should be commended for disrupting this coast to coast meth trafficking operation.”

“DEA and our law enforcement partners are committed to investigating individuals and organizations that distribute methamphetamine in our communities,” said DEA Special Agent in Charge Ferguson.  “Methamphetamine is an insidious drug that wreaks havoc in our communities and destroys lives.”

According to court documents and statements made in court, this matter stems from a joint investigation by the Drug Enforcement Administration and the Connecticut State Police’s Statewide Narcotics Task Force.  The investigation, which included the use of court-authorized wiretaps, controlled purchases of meth, physical surveillance and the use of an undercover officer, revealed that Chad McCluskey and his girlfriend, Kristen Laschober, of California, sent shipments of meth to WALLIN over the course of approximately four years.  After receiving the shipments, WALLIN distributed the drug to other dealers and also sold it to his own customers.  Some of the shipments were sent on consignment with the understanding that WALLIN would pay McCluskey and Laschober with proceeds generated from his distribution of the drug.

For a time during the conspiracy, WALLIN received between one and three pounds of meth from McCluskey and Laschober on a monthly basis.  On six occasions between September 2012 and January 2013, WALLIN sold meth to the undercover officer.

WALLIN has been detained since his arrest on January 3, 2013.  A court-authorized search of WALLIN’s residence on that date revealed meth, drug paraphernalia and drug packaging materials.

On April 2, 2013, WALLIN pleaded guilty to one count of conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine (“meth”).

McCluskey and Laschober pleaded guilty to the same charge and were sentenced to prison terms of 65 months and 60 months, respectively.

This matter was prosecuted by Assistant U.S. Attorneys Patrick Caruso and H. Gordon Hall.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BENJII CARR, 49, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 30 months of imprisonment, followed by three years of supervised release, for his role in a check fraud ring.  CARR was also ordered to pay $104,070.94 in restitution.

According to court documents and statements made in court, between July 2010 and May 2011, CARR, Langston Xavier Neal and Brandon Key Bentley obtained stolen checks, recruited “runners” who cashed the checks, and altered the checks to list the runners as the lawful payees.  The three individuals drove the runners to several Connecticut bank branches and directed them to enter the banks and cash the checks.  The runners were paid a small part of the cash proceeds.  Through this scheme, 39 checks totaling $114,102.34 were altered and presented to banks, and 37 of those checks totaling $104,070.94 were cashed by the banks.

On December 2, 2014, CARR pleaded guilty to one count of conspiracy to commit bank fraud.

Neal, of Charlotte, N.C., and Bentley, of New Haven, previously pleaded guilty to the same charge.  On April 1, 2015, Neal was sentenced to 18 months of imprisonment.  Bentley awaits sentencing.

This matter was investigated by the U.S. Postal Inspection Service, along with the Connecticut Financial Fraud Task Force and the Branford, Madison, Middlebury, Milford, New Britain, New Haven, New Milford, North Branford, Waterbury, Woodbridge and Southbury Police Departments.  U.S. Attorney Daly also acknowledged the cooperation and assistance of the State’s Attorney’s Offices for the Judicial Districts of New Haven, Waterbury, Fairfield and Tolland.  The case is being prosecuted by Assistant U.S. Attorney Henry K. Kopel.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that HAROLD HARRINGTON, also known as “Chopper” and “Chapo,” 27, of New Haven, pleaded guilty yesterday in Hartford federal court to a federal robbery offense.

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,” 35, 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, who claimed to be a member of the Bloods street gang.  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.,” 45, 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 pleaded guilty to one count of conspiracy to interfere with commerce by robbery.  At sentencing, Harrington faces a maximum term of imprisonment of 20 years.

On March 5, 2015, Gaines pleaded guilty to the same charge and, on May 1, 2015, Toler pleaded guilty to one count of possession of a firearm by a convicted felon.  They also await sentencing.

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

RICHARD PEREIRA, 43, the former chief financial officer of New Stream Capital, LLC, a Ridgefield-based hedge fund, 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 engaging in a scheme to deceive investors in order to obtain and maintain investments.

According to court documents and statements made in court, in November 2007, New Stream Capital, LLC (“New Stream”) launched new feeder funds, one based in the United States (“U.S. Fund”) and a series of funds based in the Cayman Islands (“Cayman Fund”).  New Stream also announced that its existing Bermuda Fund would be closing, and all foreign investors would have to move their investments into the Cayman Fund.  Rather than transfer into the new structure, New Stream’s largest investor placed a redemption on its whole investment in the Bermuda Fund in March 2008.  At risk of losing their largest investor, PEREIRA and New Stream managing partners David Bryson and Bart Gutekunst set in motion a scheme to secretly keep the Bermuda Fund open and give priority to Bermuda Fund investors in an effort to reverse the redemption.

As part of the scheme, PEREIRA, Bryson and Gutekunst had New Stream staff secretly execute documents to effectuate the Bermuda Fund’s special priority.  New Stream failed to inform investors who had transferred from the Bermuda Fund into the Cayman Fund that the Bermuda Fund was remaining open or that it was being given priority over the Cayman Fund.  Moreover, New Stream continued to market to investors by concealing from them the magnitude of the actual pending redemptions and by using deceptive marketing materials that failed to disclose the existence of New Stream’s Bermuda Fund.

Through this scheme, New Stream investors were defrauded out of more than $46 million.

From April 2008 to December 2010, Bryson and Gutekunst each collected more than $5 million in management fees and profit sharing while participating in this fraud scheme.  In late 2008, PEREIRA received a $700,000 bonus from New Stream.

On May 21, 2014, PEREIRA, Bryson and Gutekunst each pleaded guilty to one count of conspiracy to commit wire fraud.

On May 5, 2015, Bryson was sentenced to 33 months of imprisonment and, on May 6, 2015, Gutekunst was sentenced to 30 months of imprisonment.

This matter was investigated by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General, with the assistance of the Securities and Exchange Commission.  The case was prosecuted by Assistant U.S. Attorneys Liam Brennan and Michael S. McGarry, and Special Assistant U.S. Attorney Sheldon L. Pollock.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JEROME MOYE, 32, of Hamden, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months imprisonment, followed by three years of supervised release, for distributing crack cocaine.

According to court documents and statements made in court, on six occasions between February and April 2014, MOYE sold crack cocaine to an individual working with law enforcement.

MOYE has been detained since his arrest on August 27, 2014.  On February 24, 2015, he pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack”).

MOYE’s criminal history includes multiple felony convictions, including a sexual assault conviction, and numerous violations of probation.  He previously served a state prison term of more than three years for a narcotics distribution offense.

This matter was investigated by the Federal Bureau of Investigation and the New Haven Police Department.  The case was prosecuted by Assistant U.S. Attorney Peter D. Markle.

EDWARD MINERLY, 52, of Ansonia, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to eight months of imprisonment, followed by three years of supervised release, for making a false report of police brutality to the Federal Bureau of Investigation.

According to court documents and statements made in court, on May 18, 2013, officers with the Derby Police Department arrested MINERLY on an outstanding probation violation warrant.  On May 31, 2013, MINERLY called the New Haven FBI and spoke with an FBI special agent.  In the call, MINERLY alleged that Derby Police officers had recently arrested him for a probation violation and, upon placing him in a holding cell, commenced taunting him, subjecting him to flashing lights and tipping him backwards out of his wheelchair.  MINERLY also alleged that Derby Police officers kicked him in the head, arms and upper body.

On June 6, 2013, an FBI special agent interviewed MINERLY in person at a Bridgeport hospital where MINERLY had been admitted.  MINERLY again made allegations similar to those made on May 31, 2013, namely, that Derby Police officers had arrested him and, after placing him in a holding cell, picked him out of his wheelchair, threw him into a wall, flashed the lights on and off, and kicked him in the head and beat him.

MINERLY pleaded guilty on November 18, 2014, admitting that the statements he made to the FBI alleging physical abuse by members of the Derby Police Department after his probation violation arrest were false.

“In making a false report of police brutality, this defendant sought to exploit the Justice Department’s steadfast commitment to investigate and prosecute civil rights abuses by members of law enforcement,” stated U.S. Attorney Deirdre M. Daly.  “In addition to taxing federal law enforcement resources, these false reports can irreparably damage the reputation of the wrongly accused police department and its officers.  The prison term imposed today is an appropriate penalty for this conduct.”

“Any and all allegations of civil rights violations are taken very seriously by the FBI, stated FBI Acting Special Agent in Charge Kevin James Kline.  “We will seek prosecution of anyone who deliberately provides false information that diverts agents and resources from other important matters.”

This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Henry K. Kopel and First Assistant U.S. Attorney Michael J. Gustafson.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LYNWOOD PATRICK, JR., 39, of East Hartford, was arrested today on a federal criminal complaint charging him with wire fraud in connection with his submission of a fraudulent application for a personal mortgage modification.

PATRICK was arrested this morning at his residence.  He appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford and was released on a $150,000 bond.

According to the criminal complaint, PATRICK is employed as the Director of Investigations for the State of Connecticut Department of Social Services, Office of Quality Assurance.

The complaint alleges that, from approximately November 2012 through May 2013, PATRICK applied for a mortgage modification under the Making Home Affordable program, a federal initiative designed to assist homeowners who have experienced a decline in income access secure loans at lower rates.  When applying for mortgage relief through JP Morgan Chase, PATRICK fabricated State of Connecticut paystubs and lied about his assets in order qualify for the program.  Specifically, PATRICK claimed total assets of $500 in one checking account to show that he had experienced a loss of income causing a hardship when, in fact, he had thousands of dollars spread out over multiple accounts at several institutions and his rate of pay had not diminished.

In his capacity as the Director of Investigations, PATRICK is responsible for coordinating and conducting activities to prevent, detect and investigate fraud, waste, abuse and overpayments in the Connecticut Medicaid, Care4Kids, Supplemental Nutritional Assistance and Connecticut Energy Assistance Programs.  PATRICK’s salary is partially paid for by the federal Centers for Medicare and Medicaid Services, which is a federal agency within the U.S. Department of Health and Human Services.

The criminal complaint charges PATRICK with wire fraud, which carries a maximum term of imprisonment of 20 years.

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

This matter is being investigated by the Connecticut Public Corruption Task Force, which includes the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Bureau of Investigation, U.S. Postal Inspection Service and Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei.

Citizens are encouraged to report to corruption to the Connecticut Public Corruption Task Force by calling 1-800-CALL-FBI (1-800-225-5324).

BART GUTEKUNST, 63, of Weston, and a former managing partner and principal of New Stream Capital, LLC, a Ridgefield-based hedge fund, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 30 months of imprisonment, followed by three years of supervised release, for engaging in a scheme to deceive investors in order to obtain and maintain investments.

According to court documents and statements made in court, in November 2007, New Stream Capital, LLC (“New Stream”) launched new feeder funds, one based in the United States (“U.S. Fund”) and a series of funds based in the Cayman Islands (“Cayman Fund”).  New Stream also announced that its existing Bermuda Fund would be closing, and all foreign investors would have to move their investments into the Cayman Fund.  Rather than transfer into the new structure, New Stream’s largest investor placed a redemption on its whole investment in the Bermuda Fund in March 2008.  At risk of losing their largest investor, GUTEKUNST, co-managing partner David Bryson and chief financial officer Richard Pereira set in motion a scheme to secretly keep the Bermuda Fund open and give priority to Bermuda Fund investors in an effort to reverse the redemption.

As part of the scheme, GUTEKUNST, Bryson and Pereira had New Stream staff secretly execute documents to effectuate the Bermuda Fund’s special priority.  New Stream failed to inform investors who had transferred from the Bermuda Fund into the Cayman Fund that the Bermuda Fund was remaining open or that it was being given priority over the Cayman Fund.  Moreover, New Stream continued to market to investors by concealing from them the magnitude of the actual pending redemptions and by using deceptive marketing materials that failed to disclose the existence of New Stream’s Bermuda Fund.

Through this scheme, New Stream investors were defrauded out of more than $46 million.

From April 2008 to December 2010, GUTEKUNST and Bryson each collected more than $5 million in management fees and profit sharing while participating in this fraud scheme.

On May 21, 2014, GUTEKUNST, Bryson and Pereira each pleaded guilty to one count of conspiracy to commit wire fraud.

On May 5, 2015, Bryson was sentenced to 33 months of imprisonment.  Pereira is scheduled to be sentenced tomorrow.

This matter was investigated by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General, with the assistance of the Securities and Exchange Commission.  The case is being prosecuted by Assistant U.S. Attorneys Liam Brennan and Michael S. McGarry, and Special Assistant U.S. Attorney Sheldon L. Pollock.

Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia Ferrick, Special Agent In Charge, Federal Bureau of Investigation, and William Offord, Special Agent in Charge, IRS Criminal Investigation announced that JASON CALABRESE, 43, of Watertown, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to his involvement in a series of fraudulent mortgage loan applications.

According to court documents and statements made in court, in November 2005, CALABRESE’s co-conspirator, Thomas Provenzano, obtained a $923,200 loan to purchase a lakefront home located at 27 Palmer Road in Morris for more than $1.1 million, despite lacking the income to pay off the mortgage.  The 27 Palmer Road property was owned by an entity controlled by Ryan Geddes, another co-conspirator.  To finance the purchase, Provenzano applied for a mortgage through CALABRESE, who was a mortgage broker.  The mortgage loan application contained statements that CALABRESE knew were false, namely, that Provenzano had worked for the past four years as the “General Manager” for a Geddes-owned construction company, and that Provenzano’s income from the listed job was $20,000 per month, or $240,000 per year.  In fact, Provenzano’s income was substantially less than that amount.  CALABRESE submitted the false loan application to a lender, which issued a $923,000 mortgage.  At the closing, CALABRESE’s mortgage company was paid a $32,312 broker’s fee.

In November 2006, Provenzano applied for a new mortgage through CALABRESE to refinance the November 2005 mortgage for the 27 Palmer Road property.  The mortgage refinancing application also contained statements that CALABRESE knew were false, namely, that Provenzano had worked for the past five years at Geddes’s construction company, and that Provenzano’s income from the listed job was $28,000 per month, or $336,000 per year.  CALABRESE submitted the false loan application to a federally-insured lender, which issued a $936,000 mortgage.  At the closing, CALABRESE’s mortgage company was paid an $18,720 broker’s fee.

The 2005 loan application had stated that Provenzano would reside in the 27 Palmer Road property as an owner-occupant.  In fact, Geddes and his family continued to reside in the property.  For a few years, Geddes paid Provenzano “rent,” which Provenzano used to cover the mortgage payments.  But when Geddes moved out of the 27 Palmer Road property, he stopped forwarding payments to Provenzano, who stopped paying the mortgage.  Accordingly the 27 Palmer Road property went into foreclosure.

CALABRESE pleaded guilty to one count of conspiracy to commit bank fraud.  He is scheduled to be sentenced on July 28, 2015, at which time he faces a maximum term of imprisonment of 30 years.  Provenzano and Geddes previously pleaded guilty. On December 1, 2014, Provenzano was sentenced to 18 months of imprisonment.  Geddes awaits sentencing.

This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorneys Henry Kopel and Michael Gustafson.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EDWARD MEMOLI, 66, of Unadilla, N.Y., was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 35 months of imprisonment, followed by two years of supervised release, for his role in an extortion scheme.  Judge Bryant also ordered MEMOLI to pay $26,000 in restitution to the victim of his scheme.

On October 30, 2014, a jury found MEMOLI guilty of one count of conspiracy to obstruct interstate commerce by extortion and one count of aiding and abetting the obstruction of interstate commerce by extortion.

According to the evidence at trial, between approximately September 2010 and December 2011, MEMOLI conspired with Joseph Casolo of Norwalk to extort money from a small business owner in Fairfield County by impersonating organized crime figures.  Casolo threatened the victim in person, in phone conversations and in text messages using multiple personas, repeatedly stating or implying that if the victim failed to make the extortion payments, the victim, the victim’s spouse, and the victim’s daughter would be harmed with violence.  Casolo enlisted the assistance of MEMOLI, who identified himself as “Lorenzo,” the organized crime family’s “enforcer,” and made at least 20 threatening calls from a restricted telephone number to the victim at Casolo’s direction.  At the time, MEMOLI was living in Greenville, South Carolina.

MEMOLI specifically threatened to cause the business owner’s daughter, who was pregnant, to have a miscarriage if the extortion payments were not made.

The investigation revealed that the victim made more than $200,000 in cash payments to Casolo as a result of these threats.  Casolo shared a portion of these funds with MEMOLI by sending them to him via Western Union money transfer.

Casolo and MEMOLI also targeted another Fairfield County resident for extortion.  Posing as “Lorenzo,” MEMOLI made calls to the victim’s cellular telephone and the victim’s place of work in which MEMOLI made veiled threats to the victim’s wife and two children.

Law enforcement learned of Casolo and MEMOLI only after information regarding their extortion scheme came to light on a court-authorized wiretap investigating genuine organized crime activity in Fairfield County.

Casolo pleaded guilty to one count of extortion and, on October 24, 2013, he was sentenced to 57 months of imprisonment.

MEMOLI was ordered to report to prison on July 10, 2015.

This matter was investigated by the FBI Fairfield County Organized Crime Task Force and the Stamford Police Department, with the assistance of the FBI’s Binghamton Field Office.  The case was prosecuted by Assistant U.S. Attorneys Hal Chen and Charles Rombeau.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RICHARD CUMMINGS, 43, of East Haddam, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to one year of probation and a $1,500 fine for violating federal firearms laws.  CUMMINGS worked as a manager at Tri-Town Plastics (“Tri-Town”), a former federally-licensed firearms manufacturer located in Deep River.

“It is critically important for those who are responsible for manufacturing firearms to diligently comply with federal firearms laws throughout the production and distribution process,” stated U.S. Attorney Daly.  “These laws exist to ensure that all legal firearms are properly accounted for and don’t wind up in the wrong hands.  I commend the ATF and Plainfield Police Department for thoroughly investigating this matter.”

According to court documents and statements made in court, in 2011 and 2012, Tri-Town had a contract with Smith and Wesson to manufacturer firearm frames at its Deep River facility.  In February 2012, after the Plainfield Police Department seized a Smith and Wesson 9 millimeter handgun from a residence, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned that Smith and Wesson had no record of the handgun ever having been manufactured.  According to Tri-Town’s records, the handgun had been scrapped in March 2011.  At that time, ATF was preparing to conduct a routine inspection of Tri-Town to determine whether to renew their federal license to manufacture firearms.  Tri-Town had also been inspected in 2009 and been directed by ATF to address some record-keeping issues discovered during that inspection.  When CUMMINGS and a Tri-Town employee who was his subordinate discovered that there were approximately 23 firearms missing from their inventory, rather than report them as missing, CUMMINGS directed the employee to falsely list them as “scrapped” in Tri-Town’s acquisition and disposition records so that ATF would not learn that they were missing and would renew Tri-Town’s license.

CUMMINGS admitted that it was his decision to list the firearms as scrapped, at no point prior to the February 2012 Plainfield seizure did he report these firearms as missing or lost and, in February 2012, he failed to correct Tri-Town’s acquisition and disposition records to show the missing firearms.

Later, it was learned that five of the 23 firearms were not, in fact, missing, so that the total number of unaccounted firearms remains 17 (not including the one seized in Plainfield).

On January 21, 2015, CUMMINGS pleaded guilty to one count of making a false entry in a firearms manufacturer’s acquisition and disposition records in March 2011, one count of failing to file a theft/loss report between March 2011 and February 2012, and one count of failing to maintain a firearms manufacturer’s acquisition and disposition records in February 2012.

Smith and Wesson purchased Tri-Town in May 2014 and now owns the facility.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Plainfield Police Department.  The case was prosecuted by Assistant U.S. Attorneys Robert M. Spector and Vanessa Richards.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KEVIN BETTS, also known as “KK,” 28, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by two years of supervised release, for manufacturing and distributing PCP.

According to court documents and statements made in court, BETTS manufactured Phencyclidine (“PCP”) in his apartment at 57 Sumner Street in Hartford and, on five occasions in July and August 2014, sold the drug out of his apartment to an individual working with law enforcement.

On August 1, 2014, investigators searched the apartment and recovered more than 60 grams of PCP, scales, packaging material, six firearms, approximately 215 rounds of ammunition and a bullet proof vest.

The investigation revealed that BETTS also supplied bullets to several violent gang members who, because of their criminal histories, could not lawfully purchase ammunition on their own.

BETTS was ordered to forfeit the firearms, ammunition and bullet proof vest that were seized on August 1, 2014.

On February 10, 2015, BETTS pleaded guilty to one count of maintaining a drug-involved premises.

This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence.  A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.  Close associates of BETTS attended a call-in on April 1, 2014, in Hartford, but members of their group were charged with being involved in several shooting incidents since that date.

This ongoing investigation is being conducted by the Hartford Police Department and the FBI’s Northern Connecticut Violent Crimes Task Force.  The FBI task force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.  The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KIEJUAN HAUGABOOK, 35, of Hartford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 84 months of imprisonment, followed by three years of supervised release, for illegally possessing a sawed-off firearm and a bullet proof vest.  HAUGABOOK also was ordered to perform 75 hours of community service during his term of supervised release.

According to court documents and statements made in court, in July 2012, HAUGABOOK escaped from a halfway house in Hartford where he had been serving out the end of a nine-year prison term for armed robbery.  On February 3, 2014, a parole officer found HAUGABOOK in an apartment in Hartford.  Upon entering the apartment, the parole officer noticed a firearm in plain view and contacted the Hartford Police Department.  Hartford Police arrived at the apartment and seized a Harrington & Richardson, Model Topper 158, firearm with a sawed-off barrel, as well as ammunition, a Point Blank ballistic vest and a stun gun.

HAUGABOOK’s criminal history includes state convictions for first and third degree robbery, possession of narcotics and carrying a pistol without permit.  It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce. It is also a violation of federal law for a person previously convicted of a violent felony offense to possess body armor that has moved in interstate commerce.

On February 3, 2015, HAUGABOOK pleaded guilty to one count of possession of a sawed-off firearm by a convicted felon.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department.  The case was prosecuted by Assistant U.S. Attorneys Ndidi Moses and Anastasia King.

DAVID BRYSON, 46, a former managing partner and principal of New Stream Capital, LLC, a Ridgefield-based hedge fund, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 33 months of imprisonment, followed by three years of supervised release, for engaging in a scheme to deceive investors in order to obtain and maintain investments.

“In an effort to protect their own invested money and to collect more than $5.8 million in additional fees, New Stream executives devised and promoted a series of misrepresentations carefully calculated and designed to keep existing-investors in the dark about the true risk of the fund and to deceptively raise millions of dollars in new investments in an effort to keep their fund viable,” stated First Assistant U.S. Attorney Michael J. Gustafson.  “A prison term is an appropriate result for such criminal conduct.  I thank the FBI, Department of Labor OIG and SEC for their work in unraveling this scheme.”

“The defendants devised a fraudulent scheme to protect the assets of their largest client at the expense of their other investors,” stated Cheryl Garcia, Special Agent in Charge of the New York Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, U.S. Department of Labor.  “One of the investors deceived and victimized by the conspirators was an employer retirement trust covered by the Employee Retirement Income Security Act (ERISA). Employees participating in the trust lost millions of dollars in retirement savings.  The Office of Inspector General will continue to work with its law enforcement partners to identify schemes that jeopardize the retirement savings of American workers.”

According to court documents and statements made in court, in November 2007, New Stream Capital, LLC (“New Stream”) launched new feeder funds, one based in the United States (“U.S. Fund”) and a series of funds based in the Cayman Islands (“Cayman Fund”).  New Stream also announced that its existing Bermuda Fund would be closing, and all foreign investors would have to move their investments into the Cayman Fund.  Rather than transfer into the new structure, New Stream’s largest investor placed a redemption on its whole investment in the Bermuda Fund in March 2008.  At risk of losing their largest investor, BRYSON, co-managing partner Bart Gutekunst and chief financial officer Richard Pereira set in motion a scheme to secretly keep the Bermuda Fund open and give priority to Bermuda Fund investors in an effort to reverse the redemption.

As part of the scheme, BRYSON, Gutekunst and Pereira had New Stream staff secretly execute documents to effectuate the Bermuda Fund’s special priority.  New Stream failed to inform investors who had transferred from the Bermuda Fund into the Cayman Fund that the Bermuda Fund was remaining open or that it was being given priority over the Cayman Fund.  Moreover, New Stream continued to market to investors by concealing from them the magnitude of the actual pending redemptions and by using deceptive marketing materials that failed to disclose the existence of New Stream’s Bermuda Fund.

Through this scheme, New Stream investors were defrauded out of more than $46 million.

From April 2008 to December 2010, BRYSON collected more than $5 million in management fees and profit sharing while participating in this fraud scheme.

On May 21, 2014, BRYSON, Gutekunst and Pereira each pleaded guilty to one count of conspiracy to commit wire fraud.

Gutekunst and Pereira are scheduled to be sentenced on May 6 and May 7, respectively.

This matter was investigated by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General, with the assistance of the Securities and Exchange Commission.  The case is being prosecuted by Assistant U.S. Attorneys Liam Brennan and Michael S. McGarry, and Special Assistant U.S. Attorney Sheldon L. Pollock.

U.S. Attorney General Loretta Lynch has appointed Deirdre M. Daly, U.S. Attorney for the District of Connecticut, to the 21-member Attorney General’s Advisory Committee (AGAC).  The appointments of U.S. Attorney Daly and five other U.S. Attorneys were effective on April 29, 2015.

The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the Attorney General on policy, management and operational issues impacting the offices of the U.S. Attorneys.  There are 93 U.S. Attorney Offices located throughout the United States and its Territories.

“The distinguished women and men who serve on the Attorney General’s Advisory Committee provide invaluable advice and wise counsel that help shape the Justice Department’s approach to combating crime, violence, and injustice in every community across the country,” said Attorney General Lynch.  “As a former chair of the AGAC, I am proud to welcome six outstanding new members to the Committee, and I look forward to all that we will achieve, with their help, in the days ahead.”

Daly has also been appointed to serve on the National Commission on Forensic Science, which the Department of Justice established in 2013 to improve the reliability of forensic science.  Co-chaired by Acting Deputy Attorney General Sally Q. Yates, the Commission includes federal, state and local forensic science service providers; research scientists and academics; law enforcement officials; prosecutors, defense attorneys and judges; and other stakeholders from across the country.

More information on the National Commission on Forensic Science can be found at www.justice.gov/ncfs

Daly was presidentially appointed and sworn in as the U.S. Attorney for the District of Connecticut on May 28, 2014.  Daly previously served as the U.S. Attorney in an acting or interim capacity since May 14, 2013.  From July 2010 to May 2013, Daly served as the First Assistant U.S. Attorney and had oversight of both the Criminal and Civil Divisions.  From 1985 to 1997, Daly was an Assistant U.S. Attorney in the Southern District of New York, where she prosecuted a wide range of cases from racketeering and murder to corruption and fraud and later served as the Assistant-In-Charge of White Plains Office for three years.  After leaving the Justice Department, Daly was a partner at Daly & Pavlis LLC, a Connecticut law firm with a practice focused on corporate and commercial litigation, white-collar criminal investigations, SEC enforcement actions and corporate internal investigations and monitoring.

The U.S. Attorney’s Office for the District of Connecticut is charged with enforcing federal criminal laws in Connecticut, and with representing the federal government in civil litigation in the District.  The Office employs approximately 63 Assistant U.S. Attorneys, 51 staff members and eight contractors at offices in New Haven, Hartford and Bridgeport.

Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 29 and 30, the FBI, DEA, and HSI, working with the support of the U.S. Marshals Service and the U.S. Postal Inspection Service, arrested eight individuals as part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation dubbed “Operation Juice Box.”   The arrests culminated a long-term investigation into steroid and prescription pill distribution by multiple individuals, including a Newtown Police sergeant, a Newtown Police dispatcher and a Connecticut Judicial Marshal.  The investigation, which included the use of wire and electronic surveillance for nearly two months, also revealed that members of the conspiracy allegedly imported steroids from China.

The following individuals were arrested on a federal complaint charging them with conspiracy to distribute, and distribution of, various controlled substances including steroids and oxycodone:

STEVEN SANTUCCI, 38, of Waterbury, and a Sergeant with the Newtown Police Department,

ALEX KENYHERCZ, 28, of Ansonia,

MARK BERTANZA, 33, of Shelton,

JASON CHICKOS, 46, of Bridgeport, and a civilian dispatcher with the Newtown Police Department,

FRANK PECORA, 53, of Derby,

JEFFREY GENTILE, 33, of Ansonia, and a Judicial Marshal with the State of Connecticut,

STEVEN FERNANDES, 54, of Southington,

MICHAEL D. MASE, 32, of Sherman

As alleged in the government’s complaint affidavit, which was unsealed in court on April 30, BERTANZA was a steroid distributer who obtained his steroids from KENYHERCZ.  Wiretap interceptions over cellular telephones used by BERTANZA and KENYHERCZ, along with physical surveillance of various steroid sales, revealed that SANTUCCI was supplying steroids to KENYHERCZ.  Through the investigation, agents learned that SANTUCCI has been receiving shipments of steroids and related materials from China since 2011 and has been manufacturing and distributing wholesale quantities of steroids.  SANTUCCI frequently used an application called WhatsApp to communicate with his customers.  CHICKOS, MASE and FERNANDES were SANTUCCI’s steroid customers who, in turn, regularly distributed the steroids in smaller quantities to their own customers.  KENYHERCZ distributed quantities of steroids and prescription pills (including Roxicodone, Oxycodone, Suboxone and Opana).  GENTILE is alleged to be a steroid distributer, and PECORA is alleged to be a prescription pill distributer.

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.

 “The international importation and sale of mass quantities of steroids in our communities is a serious offense that raises significant public health concerns,” stated U.S. Attorney Daly.  “I thank the agents and officers who have dedicated themselves to this difficult case.  Through their hard work, they have identified and arrested the source of these steroids, thus preventing further harm to the community.”

 “The top criminal investigative program for the FBI is public corruption matters,” stated FBI Special Agent in Charge Patricia M. Ferrick.  “When law enforcement officers are involved in criminal activity, it brings a particular sense of urgency to the investigation.  While disconcerting, this matter involving a Newtown Police Officer, a Connecticut Judicial Marshal, a Newtown Public Safety Dispatcher and others is not indicative of the fine work and dedication to public service exhibited by the vast majority of those individuals working within the criminal justice and law enforcement community.  This ongoing investigation is being conducted in close collaboration between the FBI, the DEA, DHS, the U.S. Marshals Service, the U.S. Postal Inspection Service, and the Newtown Police Department.”

“DEA and our federal, state, and local law enforcement partners are committed to investigating steroid trafficking organizations.  We follow these investigations wherever they lead us – and in this case to a police officer,” stated DEA Special Agent in Charge Michael J. Ferguson.  “Wearing a shield does not give you a free pass to peddle this poison in our neighborhoods or to our families.  This type of criminal behavior does not represent the fine work and dedication to public service that is exhibited by the vast majority of law enforcement officers.”

“These arrests illustrate the ability of our law enforcement partners such as the U.S. Attorney’s Office and other federal agencies to leverage their individual resources to work together and achieve justice,” said Bruce Foucart, HSI Special Agent in Charge of New England.  “HSI continues to use its unique customs and immigration authorities to attack and dismantle these types of organizations, and will aggressively pursue leads, regardless of where that information may lead us.”

SANTUCCI, KENYHERCZ, BERTANZA, CHICKOS, GENTILE, FERNANDES and MASE have been released on bond.  PECORA remains in federal custody pending a detention hearing on May 5, 2015.

SANTUCCI, BERTANZA, GENTILE, MASE, FERNANDES and CHICKOS, are charged with conspiracy to distribute steroids, which carries a maximum term of imprisonment of 10 years and a fine of up to $500,000.  PECORA and KENYHERCZ and charged with conspiracy to distribute oxycodone, which carries a maximum term of imprisonment of 20 years and a fine of up to $1 million.

In announcing these charges, U.S. Attorney Daly stressed that a complaint is only a charge and not evidence of guilt.  Each defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt.

This matter 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, 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, today announced that on May 1, 2015, DR. JOHN KATSETOS, 53, of Fairfield, waived his right to indictment and pleaded guilty in Hartford federal court to narcotics distribution and health care fraud offenses stemming from his illegal dispensation of oxycodone and other controlled substances well outside of the scope of accepted medical practice.

“We are committed to uncovering and prosecuting those involved in narcotics distribution regardless of their station in life, and especially anyone who uses their medical license to flood the community with controlled substances that feed addictions and have a corrosive effect on our communities,” said U.S. Attorney Daly.

“The success of this investigation was a direct result of the hard work and dedication of the DEA New Haven Tactical Diversion Squad and our federal, state, and local law enforcement partners,” said DEA Special Agent in Charge Ferguson.  “The DEA New England Field Division is committed to investigating those individuals who engage in the illicit distribution of prescription pain killers.”

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.  In pleaded guilty, KATSETOS admitted that he 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.  The investigation, which included the use of undercover law enforcement personnel, showed that 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.

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

“As the number of Medicare beneficiaries continues to increase, it is paramount that we work hard to expose unscrupulous providers who treat government health care programs as their personal piggy banks,” said U.S. Attorney Daly.

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.  When he is sentenced by U.S. District Judge Vanessa L. Bryant, KATSETOS faces a maximum term of imprisonment of 30 years and fine of up to $1.25 million.

If the terms of the plea agreement are accepted by Judge Bryant, KATSETOS faces between 48 months and 84 months of imprisonment, $497,789 in restitution, and forfeiture of $550,000, which represents the value of his medical practice.

A sentencing date has not been scheduled.

KATSETOS was arrested on July 1, 2014, and is released on a $1 million bond.

This matter is being 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 is being 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.