District of Connecticut

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on Friday, January 30, DAHONTA HILLIARD, 24, of Bridgeport, was sentenced by U.S. District Judge Vanessa L. Bryant in Hartford to 36 months of imprisonment, followed by three years of supervised release, for being a previously convicted felon in possession of a firearm.

According to court documents and statements made in court, on August 25, 2013, Norwalk police officers were called to disband a fight between 15 to 20 people in the King Kennedy housing complex.  As officers approached the housing complex, individuals, including HILLIARD, began to scatter.  From his previous encounters with Norwalk Police, HILLIARD was known as a Crips gang associate who was not a resident of the housing complex.  Officers approached HILLIARD and asked him if he had any weapons.  After HILLIARD responded that he had a knife, officers searched him and found a loaded Bersa .380 semi-automatic handgun.

Prior to August 2013, HILLIARD was convicted of a felony offense.  It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.

HILLIARD has been detained since his federal arrest on March 3, 2014.  On August 14, 2014, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.

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.

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PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TIMOTHY G. GRIFFIN, 55, of Ridgefield, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to six months of imprisonment, followed by one year of supervised release, for filing false tax returns.  He also was ordered to pay a $1,000 fine and restitution to the U.S Treasury.

According to court documents and statements made in court, GRIFFIN practiced law in Bronxville, New York, and his clients paid him for his legal services.  In 2006, the Internal Revenue Service sent letters to GRIFFIN about his having not filed income tax returns for 2002, 2003, and 2004 tax years.  In response to the IRS inquiry, GRIFFIN prepared and submitted fraudulent individual income tax returns for the 2003 and 2004 tax years. The 2003 return reported income of $77,713, gross receipts from the law practice of $225,825, a net profit of $32,200, and a total tax of $10,981. The 2004 return reported income of $67,983, gross receipts from the law practice of $234,894, a net profit of $39,767, and a total tax of $9,606.  A subsequent criminal investigation determined that GRIFFIN did not report on these two tax returns approximately $498,934 in additional gross receipts from his law practice, resulting in additional tax due of $136,844.

On September 30, 2014, GRIFFIN waived his right to indictment and pleaded guilty to one count of filing a false tax return.

Judge Underhill ordered GRIFFIN to make restitution to the U.S. Department of Treasury in the total amount of $153,807 – which includes $136,844 for the 2003 and 2004 tax years and $16,963 for the 2005 and 2006 tax years – plus applicable penalties and interest.

GRIFFIN also has two pending criminal cases in the State of New York, one involving his alleged embezzlement of $1,955,000 from the United Hebrew Cemetery on Staten Island, and one involving his alleged embezzlement of approximately $750,000 from seven clients.

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

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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 LAWRENCE J. HERZING, 45, of Greenwich, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in Bridgeport to one count of wire fraud stemming from his theft of more than $9 million from the hedge fund where he was employed.

According to court documents and statements made in court, HERZING was recently employed as the controller of Greenwich-based Contrarian Capital Management, L.L.C.  On 32 occasions between 2004 and 2013, HERZING used his position to wire $9,202,417.54 from his employer to accounts that he controlled.

HERZING was arrested on October 29, 2014, and currently is released on a $5.6 million bond.

Judge Meyer scheduled sentencing for April 24, 2015, at which time HERZING faces a maximum term of imprisonment of 20 years, a fine and an order of restitution.  HERZING also has agreed to forfeit his residence and approximately $1.8 million.

This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Greenwich Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Jonathan Francis and Heather Cherry.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WILLIAM DONG, 23, of Fairfield, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to five years of probation for transporting an assault weapon into Connecticut in violation of federal law.
According to court documents and statements made in court, in September 2013, DONG traveled to Pennsylvania, purchased a Bushmaster model XM-15-E2S, .223 caliber semi-automatic rifle and transported the rifle back to Connecticut.  This firearm is considered a prohibited assault weapon under Connecticut state law.

On December 3, 2013, West Haven Police arrested DONG in the vicinity of the University of New Haven (UNH) after he was found in possession of two handguns on his person, and the Bushmaster rifle, which was seized from his nearby car.  DONG, a UNH student, told police that he had purchased the rifle from a seller in Pennsylvania in September 2013 through an advertisement placed on www.armslist.com.

Although it is not unlawful under federal law for an individual, who is not a prohibited person, to possess this Bushmaster firearm, it is a federal violation for an individual to purchase this firearm outside of Connecticut and travel into the state with it, since it is a prohibited firearm under Connecticut state law. 

DONG has been detained since his arrest.  He has stated that he possessed the firearms out of concern for his safety and the safety of his fellow UNH students.

DONG pleaded guilty to the federal charge on November 6, 2014.  He also previously pleaded guilty in Milford Superior Court to state firearms offenses related to the December 2013 incident in West Haven, and has been sentenced to eight years of incarceration, execution suspended after two years, and five years of probation.

In the federal case, DONG faced a sentencing guideline range of six to 12 months of imprisonment.  Instead of imposing a sentence of incarceration, and which would be followed by a term of supervised of up to three years, Judge Chatigny imposed a five-year term of probation, the maximum allowed under the law.  Judge Chatigny agreed with the government’s position that DONG’s state term of incarceration is sufficient, but that a longer period of federal supervision is necessary to insure the safety of the community.

As special conditions of probation, Judge Chatigny ordered that DONG cannot possess any firearms or ammunition, associate with individuals in possession of firearms or go to any shooting ranges.  He also must submit to mental health counseling.

“A sentence of five years of probation with mental health counseling is an appropriate resolution to this case, as it will provide Mr. Dong with needed federal supervision,” stated U.S. Attorney Daly.  “We want to thank the conscientious citizen who first alerted law enforcement that an individual was in possession of a powerful and potentially dangerous firearm.  We also want to acknowledge the rapid response of the West Haven Police and University of New Haven Police, which quickly resolved this unsettling situation.”

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, West Haven Police Department, University of New Haven Police Department and Connecticut State Police.  The case was prosecuted by Assistant U.S. Attorney Robert M. Spector.

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FRANCISCO ILLARRAMENDI, 45, formerly of New Canaan, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 156 months of imprisonment, followed by three years of supervised release, for orchestrating a Ponzi scheme that defrauded investors and creditors of hedge funds he managed out of hundreds of millions of dollars, and for obstructing the ensuing investigation of his conduct.

“For more than five years, Francisco Illarramendi’s severely misguided attempt to conceal an initial loss of $5 million ballooned into an elaborate fraud scheme that caused investors and creditors to lose hundreds of millions of dollars,” stated First Assistant U.S. Attorney Michael J. Gustafson.  “Through it all, he still managed to live well, receiving more than $20 million in personal benefits.  I want to thank our partners at the FBI and SEC for unravelling this complex scheme, and acknowledge the efforts of the court-appointed receiver who has recovered more than $300 million that will be distributed to the victims.”

“Mr. Illarramendi violated his fiduciary duties by swindling millions from investors,” stated Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation.  “This case sends a clear message that no one is above the law, least of all those in the securities industry.”

On March 7, 2011, ILLARRAMENDI pleaded guilty to two counts of wire fraud, one count of securities fraud, one count of investment advisor fraud, and one count of conspiracy to obstruct justice, to obstruct an official proceeding and to defraud the U.S. Securities and Exchange Commission (SEC).

According to court documents and statements made in court, in 2005, ILLARRAMENDI founded and became a partner in Highview Point Partners (“HVP”) and began acting as an investment adviser to certain hedge funds.  HVP was registered with the SEC as an investment advisor and eventually relocated from New York City to Stamford.  In 2006, ILLARRAMENDI founded, and became a partner in, Michael Kenwood (“MK”), which was also located in Stamford, but was not registered with the SEC.  In late 2005, one hedge fund he advised lost approximately $5 million of the money he was charged with investing.  Rather than disclose to his investors the truth about the losses incurred, ILLARRAMENDI concealed this information by engaging in a scheme to defraud and mislead his investors and creditors.  As a result of the scheme, the hedge funds and related entities managed and advised by ILLARRAMENDI had outstanding liabilities that greatly exceed the true value of their assets, causing the funds’ investors, creditors and service providers to lose more than $700 million.

As part of the scheme to defraud investors, creditors and, ultimately, the SEC, ILLARRAMENDI created fraudulent documents, including a bogus debt instrument and a phony letter purporting to have been issued by an investment bank, as well as a fictitious asset verification letter falsely representing that one of the hedge funds, the Short Term Liquidity Fund (“STLF”), had at least $275 million in credits as a result of outstanding loans, when ILLARRAMENDI and others knew it did not have any such credits.  In addition, ILLARRAMENDI misled investors, creditors and the SEC about the true performance of the funds, the assets under management by the funds and the transactions being conducted by the funds and related entities.  At times, ILLARRAMENDI used money provided by new investors to the funds to pay out the returns he promised to earlier investors, made false representations to his investors and creditors in an effort to obtain new investments from them and to prevent them from seeking to liquidate their investments, improperly commingled the investments in each individual hedge fund with investments in the other hedge funds, and engaged in transactions that were not in the best interests of the funds.

In order to keep his fraud hidden, and to secure an investment of approximately $100 million, ILLARRAMENDI paid $3.4 million in bribes to two officials of the Venezuelan state-owned oil company, Petroleos de Venezuela, S.A. (“PDVSA”).  ILLARRAMENDI also paid a Venezuelan accountant, Juan Carlos Guillen Zerpa, and a purported Florida businessman, Juan Carlos Horna Napolitano, $1.25 million to assist him in the creation of the fictitious asset verification letter that falsely represented that STLF had at least $275 million in credits as a result of outstanding loans.  ILLARRAMENDI used the letter in an attempt to mislead and deceive the SEC regarding whether there was sufficient capital and credit to protect the investors of STLF.

ILLARRMENDI personally obtained more than $20 million during the course of the scheme, and used approximately $5 million of the funds to construct a home in New Canaan.

On January 14, 2011, the SEC filed a civil action seeking, among other things, to enjoin ILLARRAMENDI and MK-related entities from violating the federal securities laws and to submit an accounting of investor funds.  Subsequent to the filing of the SEC civil action, U.S. District Judge Janet Bond Arterton appointed, and sought input from, business advisers and a court-appointed receiver to ascertain the assets and liabilities of the hedge funds affiliated with MK, among other tasks.

To date, the court-appointed receiver has recovered more than $300 million of the funds that were lost, including the vast majority of the bribe payments.  The receiver also has sold ILLARRAMENDI’s New Canaan residence for approximately $3 million.

Judge Underhill will issue a restitution order after further court proceedings.

ILLARRAMENDI has been detained since January 25, 2013, after his bond was revoked, in part because he had failed to disclose to the Court that he had received and spent a Connecticut state tax refund of more than $630,000 while he was awaiting sentencing.

Guillen and Horna both pleaded guilty to conspiring to obstruct an SEC proceeding, received prison terms of 14 months and forfeited the $1.25 million they received from ILLARRAMENDI.

This matter was investigated by the Federal Bureau of Investigation with the assistance of the U.S. Securities and Exchange Commission, Boston Regional Office, and Internal Revenue Service – Criminal Investigation Division.

The case was prosecuted by Senior Litigation Counsel Richard J. Schechter and Assistant U.S. Attorney Paul A. Murphy, with the assistance of the U.S. Attorney’s Office for the District of Massachusetts.

Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to ctsecuritiesfraud@ic.fbi.gov.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on Friday, January 23, SCOTT MYRIE, also known as “Venom,” 27, of Bedford Hills, N.Y., was sentenced by U.S. District Judge Stefan R. Underhill in Bridgeport to 84 months of imprisonment, followed by three years of supervised release, for his participation in two Danbury-area violent home invasion robberies of illegal drugs and drug trafficking proceeds.

According to court documents and statements made in court, in January 2013 the Danbury Police Department began investigating a narcotics trafficking network that maintained a series of drug distribution locations, known as trap houses, in Danbury, out of which members of the organization sold crack and heroin.  The organization also rented hotel rooms where they packaged and distributed narcotics.  During the investigation, law enforcement learned that the individuals who headed the drug trafficking ring had organized and committed armed home invasion robberies of marijuana dealers.

MYRIE participated in home invasion robberies on January 30 and February 18, 2013.  During both of these robberies, and a third robbery in which MYRIE did not participate, several men wearing masks and armed with firearms forced entry into the residence of a known marijuana dealer.  Once inside, the perpetrators attempted to or did steal marijuana and cash.  In each instance, the perpetrators pistol whipped a victim and threatened to kill others within the home.

MYRIE was armed with a .32 caliber handgun during both of the robberies in which he participated, and children were present in both homes.  During the robbery on February 18, MYRIE struck a male victim in the head with the handgun repeatedly before dropping the gun during a struggle.  Investigators subsequently recovered the gun and found that it was fully loaded.

MYRIE has been detained since his arrest on October 16, 2013.  On August 22, 2014, he pleaded guilty to one count of interference with commerce by robbery and one count of attempted interference with commerce by robbery.

This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force and the Danbury Police Department.  The DEA Task Force includes personnel from the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments.  The case is being prosecuted by Assistant U.S. Attorneys Tracy Dayton and Vanessa Richards.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that a jury in Hartford has found EDWARD THOMAS, also known as “Fire,” 40, of New York, guilty of the sex trafficking of minors.  The trial before U.S. District Judge Robert N. Chatigny began on January 15.

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

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

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

“This defendant preyed on the vulnerabilities of two girls whom he lured 3000 miles away from their homes,” stated U.S. Attorney Daly.  “The U.S. Attorney Office is committed to prosecuting individuals who manipulate minors into committing sexual acts – often under the threat of violence – and profit handsomely from this illegal and reprehensible conduct.  I thank the FBI for their vigilance in investigating these crimes, which have resulted not only in criminal convictions, but in the rescue of numerous girls and young women from terrible environments.”

“Human trafficking, especially for the purpose of underage prostitution, is a heinous crime,” stated FBI Special Agent in Charge Ferrick.  “The FBI will continue to work with our law enforcement partners to aggressively pursue these criminals and hold them accountable.”

THOMAS was convicted of one count of conspiracy to commit sex trafficking of a minor and two counts of sex trafficking of a minor.  Judge Chatigny scheduled sentenced for April 17, 2015, at which time THOMAS faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.

On November 10, 2014, Walters pleaded guilty to one count of conspiracy to commit sex trafficking of a minor.  She awaits sentencing.

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

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

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 Stratford and Milford Police Departments have assisted the investigation.

The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies.  For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.

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

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JERRY GRUENBAUM, 59, of Woodbridge, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to six months of imprisonment, followed by one year of supervised release, for failing to pay taxes on more than $1.3 million in income over a six-year period.

According to court documents and statements made in court, from 2005 to 2010, GRUENBAUM, an attorney, failed to report approximately $1,310,100 in taxable income on his federal tax returns.  For the 2005, 2006 and 2007 tax years, GRUENBAUM filed tax returns that he knew significantly understated his actual taxable income, and for the 2008, 2009 and 2010 tax years, he failed to file any tax returns.  Through this scheme, GRUENBAUM failed to pay $394,226 in additional tax due.

GRUENBAUM also took steps to make it difficult for the IRS to determine his true income, including calculating the gross receipt figures for one of his businesses by reviewing just one of a number of the business’s bank accounts that he knew had reportable income.  He also utilized corporate bank accounts to pay his personal expenses, and received compensation for services rendered from at least three different corporations in the form of stock shares and salaries, and failed to report this income on his tax returns. 
GRUENBAUM is required to pay approximately $877,646 in back taxes, penalties and interest.

On July 15, 2014, GRUENBAUM pleaded guilty to two counts of filing a false federal tax return.

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

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRANDON SAPP, 28, of Waterbury, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of possession of narcotics with the intent to distribute, and one count of possession of a firearm in furtherance of a drug trafficking crime.

According to court documents and statements made in court, 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 375 baggies heroin marked “Obsession.”  SAPP also possessed approximately $990 in cash.

Judge Arterton scheduled sentencing for April 15, 2015, at which time SAPP faces a maximum term of imprisonment of 20 years for the narcotics offense, and a consecutive term of imprisonment of at least five years for the firearm offense.

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

PUBLIC AFFAIRS CONTACT:

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANDREW AVILES, 27, of New London, pleaded guilty today before U.S. District Judge Vanessa L. Bryant in Hartford to a federal assault offense stemming from the September 2012 homicide of Javier Reyes, 36, of New London.

According to court documents and statements made in court, AVILES was an associate of a criminal organization that distributed marijuana, cocaine and other narcotics from the “Green Garages,” a series of garage bays located as 12/14 Walker Street in New London.  In the summer of 2011, the leader of the Green Garages organization was the intended victim of a murder-for-hire plot orchestrated by former members of his enterprise in an attempt to take over narcotics distribution at the Green Garages.  It is alleged that the leader of the organization orchestrated the assault of Javier Reyes to maintain his leadership position.  AVILES and Jose Rosado, Jr. were hired to carry out the assault of Reyes in exchange for cash.

On the evening of September 12, 2012, Reyes was stabbed multiple times outside of his apartment at 187 Huntington Street in New London and died a short time later.  He also had blunt force trauma to the back of his head.

Video surveillance at the time of the attack shows AVILES and Rosado, carrying a bat, creeping toward Reyes and then running away from him about 15 seconds later.

AVILES today admitted that he stabbed Reyes during the assault.

AVILES pleaded guilty to violating the Travel Act by using a facility in interstate commerce, namely a cellular telephone, with the intent to commit a crime of violence in furtherance of an unlawful activity, and thereafter committed the crime of violence.

At sentencing, AVILES faces a maximum term of imprisonment of life.  A sentencing date has not been set.

On July 22, 2014, Rosado, 20, of New London, pleaded guilty to a related charge and also awaits sentencing.

AVILES and Rosado are currently detained.

The alleged leader of the Green Garages organization and the individual who allegedly recruited AVILES and Rosado have been indicted as a result of this investigation.  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 New London Police Department and the Federal Bureau of Investigation, with the assistance of the Connecticut State Police’s Eastern District Major Crime Squad, the Connecticut Department of Correction, Homeland Security Investigations, the U.S. Secret Service and the New London State’s Attorney’s Office.  The case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Sarah Karwan, and Senior Assistant State’s Attorney Paul Narducci.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RICHARD CUMMINGS, 43, of East Haddam, pleaded guilty yesterday in Bridgeport federal court to 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. 

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. 

In pleading guilty, 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).

CUMMINGS pleaded guilty before U.S. District Judge Stefan R. Underhill 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.  The maximum penalty on each of these misdemeanor charges is one year of imprisonment, five years of probation and a $100,000 fine.

Sentencing is scheduled for April 15, 2015.

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 is being prosecuted by Assistant U.S. Attorneys Robert M. Spector and Vanessa Richards.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced two new appointments within the Office’s Civil Division.

Assistant U.S. Attorney Richard M. Molot has been named Chief of the Civil Division’s Affirmative Enforcement Unit, which pursues claims on behalf of the United States in cases involving health care fraud, defense contractor fraud, drug diversion and forfeitures, as well as civil rights and environmental violations.

Mr. Molot joined the U.S. Attorney’s Office in Connecticut in 2000 after serving as an AUSA in the Eastern District of New York for six years.  In Connecticut, Mr. Molot has served as the Civil Health Care Fraud Coordinator, investigating and prosecuting False Claims Act cases involving Medicare and Medicaid fraud, and coordinating investigations with various federal and state agencies responsible for protecting federal health care programs.  Prior to joining the Justice Department, Mr. Molot was in private practice for four years, and served as a law clerk to U.S. District Judge John M. Cannella in the Southern District of New York.  He is a 1985 graduate of Union College and a 1988 graduate of Fordham University School of Law.

Assistant U.S. Attorney Michelle McConaghy has been named Chief of the Civil Division’s Defensive Unit, which defends claims filed against the United States, including tort, medical malpractice, employment discrimination, immigration and foreclosures.  The Defensive Unit also defends claims brought against individual federal employees (“Bivens” claims).

Since joining the U.S. Attorney’s Office in 2007, Ms. McConaghy has primarily handled matters involving immigration law as well as defensive civil rights and tort litigation.  Prior to her time in the Office, Ms. McConaghy served as a law clerk to U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport, and was a paralegal in the U.S. Attorney’s Office for the District of Rhode Island for 10 years.  She is a 1999 graduate of Roger Williams University and a 2005 graduate of Roger Williams University School of Law.

Assistant U.S. Attorney John B. Hughes remains the longstanding Chief of the Civil Division.

“Michelle McConaghy and Rick Molot are experienced and highly-effective civil litigators well-respected inside our Office and within the broader legal community,” stated U.S. Attorney Daly.  “Enthusiastic and dedicated public servants, they also possess excellent judgment.  We thank them for stepping up to take on these leadership responsibilities.  Together with John Hughes, our revered Civil Chief, they will be a top notch team.”

The Civil Division also has a Financial Litigation Unit, headed by Assistant U.S. Attorney Christine Sciarrino, which is responsible for collecting debts owed to the United States. 

Over the last few years, the Civil Division has prioritized its Civil Rights enforcement program which brings civil rights actions to enforce federal statutes prohibiting discrimination on the basis of race, color, sex, disability, religion, familial status and national origin and to recover damages for victims of civil rights violations.  The majority of the civil rights cases are brought to enforce the Americans with Disabilities Act (ADA), the Fair Housing Act (FHA), the Religious Land Use and Institutionalized Persons Act (RLUIPA) and the Civil Rights of Institutionalized Persons Act (CRIPA).

The U.S. Attorney’s Office, which also enforces federal criminal laws in Connecticut, is composed of approximately 64 Assistant U.S. Attorneys and approximately 60 staff members at offices in New Haven, Hartford and Bridgeport.

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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, today announced that DAVID JOHNSON, 27, of Enfield, and ODAIN JOHNSON, 21, of Hartford, have been charged by federal criminal complaint with the armed robbery of the First Niagara Bank in Windsor on January 10, 2015.

According to the criminal complaint, which was unsealed today, on January 10, 2015, at approximately 9:15 a.m., two masked men, at least one of whom brandished a firearm, entered the First Niagara Bank at 2133 Poquonock Avenue in Windsor.  The two men vaulted the teller counter, directed two bank employees to the bank vault and ordered one of the employees to open the vault.  Once inside the vault, the men ordered the bank employees to the ground and took $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.

The complaint also alleges that a customer walked into the bank during the robbery.  One of the masked men pointed a gun at the customer, ordered him to the ground and told him not to look up.  After exiting the bank, the men confronted a second customer who was about to enter the bank.  One of the men pointed a gun at the customer and stated “If you say anything, we’ll shoot you….”

The complaint further alleges that, while investigating the robbery, Windsor Police were contacted by East Windsor Police who were investigating similar bank and credit union robberies in East Windsor and Glastonbury.  East Windsor Police had recently obtained an arrest warrant for DAVID JOHNSON with respect to the robbery of the Nutmeg State Federal Credit Union in East Windsor on July 21, 2014.

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

DAVID JOHNSON was arrested at that time on the East Windsor warrant.  He currently is detained in state custody.

On January 17, ODAIN JOHNSON was arrested in Lewiston, Maine, on the federal criminal complaint.  He also is detained.

The charge of armed bank robbery carries a maximum term of imprisonment of 20 years.

The investigation is ongoing.

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

This matter is being investigated by the 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.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHNNY DE LOS SANTOS, also known as “Na-Na,” 30, of the Bronx, N.Y., was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 97 months of imprisonment, followed by five years of supervised release, for trafficking cocaine and heroin into Connecticut.

According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven.  Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms.  Approximately 100 individuals were convicted of federal charges as a result of the investigation.

The investigation revealed that Kevin Wilson, also known as “Nature,” operated a large-scale narcotics trafficking operation in greater New Haven.  DE LOS SANTOS was Wilson’s primary source for narcotics.  Between June 2011 and January 2012, DE LOS SANTOS supplied Wilson with more than one kilogram of heroin and more than one kilogram of cocaine.  DE LOS SANTOS also supplied Wilson’s associates with narcotics.

DE LOS SANTOS was arrested on July 12, 2012.  On December 5, 2012, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin and five kilograms or more of cocaine.

DE LOS SANTOS has been detained since March 11, 2014, when his bond was revoked after an investigation revealed that he had distributed an additional 2.5 kilograms of heroin while awaiting sentencing.

Wilson has pleaded guilty and awaits sentencing.

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

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

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ALYSSA JELLIFFE, 21, and CHRISTOPHER FOGLER, 29, both of West Haven, have been charged by criminal complaint with conspiring to distribute heroin.

JELLIFFE and FOGLER were arrested on Friday, January 16, and are currently detained.  Detention hearings are scheduled for January 23 in Bridgeport federal court.

According to the criminal complaint, on January 12, 2015, a 39-year-old male died from an apparent heroin overdose at a residence in Milford.  The investigation, which included analysis of text messages captured from the decedent’s cellular telephone, revealed that JELLIFFE and FOLGLER sold the decedent $170 worth of heroin on the evening of January 11, 2015. 

On January 16, 2015, a court-authorized search of JELLIFFE and FOGLER’s residence revealed approximately 10 bags of heroin and assorted drug paraphernalia, including a digital scale, razor blades and cut straws.

JELLIFFE and FOGLER are each charged with conspiracy to possess with intent to distribute, and to distribute, heroin.  The charge carries a maximum term of imprisonment of 20 years.

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

This ongoing investigating is being conducted by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Milford Police Department.  The case is being prosecuted by Assistant U.S. Attorney Alina P. Reynolds.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SYED NAQSHBAND, 33, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to three months of home confinement and three years of probation for his role in a marriage fraud scheme.

According to court documents and statements made in court, between July and August 2013, NAQSHBAND persuaded a female friend, who is a U.S. citizen, to travel with him to Pakistan and marry his nephew so that the nephew, a citizen of Pakistan, could enter the U.S.  NAQSHBAND offered to help pay the woman’s travel expenses and assured her she would not have to live with his nephew once they returned to the U.S.

The scheme was disrupted just before the planned travel when the woman, accompanied by NAQSHBAND, applied for a U.S. Passport and the U.S. Passport Office alerted the FBI of certain suspicious observations.

On October 31, 2014, NAQSHBAND pleaded guilty to one count of conspiracy to commit marriage fraud.

This matter was investigated by the Federal Bureau of Investigation Joint Terrorism Task Force, the Bureau of Diplomatic Security, the U.S. Passport Office, Homeland Security Investigations and the U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security.  The case was prosecuted by Assistant U.S. Attorney Henry K. Kopel.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID J. BERTNAGEL, 41, of Thomaston, was arrested today on a federal criminal complaint charging him with embezzling more than $800,000 from the Town of Plymouth.

BERTNAGEL was arrested this morning at his residence.  He appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford and was released on a $250,000 bond.

According to the criminal complaint, from July 2014 to October 2014, BERTNAGEL was employed as the Finance Director for the Town of Plymouth.  For approximately six years prior to that time he was a part-time employee in the Town’s Finance Department.  From approximately October 2011 through October 2014, it is alleged that 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.

The complaint also alleges that BERTNAGEL did not file a tax return with the Internal Revenue Service for the 2011 tax year and, although he did file tax returns for the 2012 and 2013 tax years, he failed to report any of his embezzled income.

Since 2011, Plymouth has received approximately $450,000 in grant awards from the U.S. Department of Health and Human Services.

The criminal complaint charges BERTNAGEL with theft from a local government receiving federal funds, which carries a maximum term of imprisonment of 10 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 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 is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID LESTER JOHNSTON, 46, of Ridgefield, pleaded guilty today in Hartford federal court to committing health care fraud.

According to court documents and statements made in court, JOHNSTON is an osteopathic physician who operates Osteopathic Wellness Center, LLC, in Ridgefield.  In pleading guilty, JOHNSTON admitted that he engaged in a scheme to defraud Medicare and several private health insurance companies by submitting claims for osteopathic and physical therapy services that he did not perform, and by misrepresenting the nature of the services that were performed.

JOHNSTON specifically admitted that he submitted claims in connection with services rendered by a massage therapist, but falsely described the services rendered and falsely stated that he himself had rendered the services.

JOHNSTON is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on April 10, 2015, at which time he faces a maximum term of imprisonment of 10 years.  As part of the resolution of this case, JOHNSTON has agreed to enter into a civil settlement with the government and will pay $270,528 to settle federal civil claims arising from his conduct.

This matter has been investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorneys Christopher Mattei, Heather Cherry and Richard Molot.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID J. CRESPO, 60, of Guilford, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 57 months of imprisonment, followed by three years of supervised release, for selling fraudulent artwork.

According to court documents and statements made in court, CRESPO was an art dealer who operated the Brandon Gallery in Madison.  Over the course of several years, CRESPO defrauded customers by falsely representing that artwork he sold were original pieces by Pablo Picasso and original signed lithographs by Marc Chagall.  As part of the scheme, CRESPO forged numerous documents in order to provide “authentication” or provenances of the fakes to his victims.

On September 3, 2013, CRESPO pleaded guilty to one count of mail fraud stemming from the sale of an imitation Marc Chagall lithograph.

The investigation revealed that CRESPO obtained reproductions of original Chagall lithographs, but represented to potential customers that they were, in fact, original lithographs that had been produced through an artistic lithographic method, and under the direction and authority of Marc Chagall.

In January 2010, CRESPO met with an undercover FBI agent at Brandon Gallery.  During the course of the conversation, which was recorded, CRESPO and the agent discussed a lithograph known as “The Presentation of Chloe,” which CRESPO represented, among other things, was an “original lithograph” that was part of a limited edition collection made from “stone plates” from which multiple impressions were made from “the same plate.”  The agent agreed to purchase the purported lithograph for $2,000.

In May 2010, CRESPO shipped the purported lithograph along with a “Certificate of Authenticity,” which valued the piece at $12,750 “for insurance purposes,” stated that piece was “hand signed by Chagall in crayon after the artist personally examined this particular example,” and represented that “[t]his work came from the collection of Richard Riskin, a longtime friend of the artist.”

In fact, CRESPO had not obtained the purported Chagall lithograph from the estate of Richard Riskin, as no such person existed, and CRESPO knew that the piece was not a limited edition original lithograph manufactured under the artist’s direction using stone plates, but was a photo-mechanical production that was removed from a common edition book.

In November 2010, the FBI conducted a search of the Brandon Gallery and found packages of Chagall prints and practiced Chagall signatures.

The investigation revealed that CRESPO defrauded at least 10 victims out of a total of at least $400,000.  Judge Burns will issue a restitution order with 90 days.

On April 3, 2012, CRESPO was arrested on a criminal complaint.  He has been detained since December 31, 2014, when he was found to have violated the conditions of his release and his bond was revoked.

This matter was investigated by the Federal Bureau of Investigation and the Madison Police Department.  The case was prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Liam Brennan.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL CARTER, 51, of New Haven, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to one count of tax evasion.

This matter stems from an Internal Revenue Service investigation into high income State of Connecticut employees 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 state employees submitted fraudulent W-4 forms claiming numerous exemptions and had no money withheld from their wages.

According to court documents and statements made in court, CARTER has been employed by the Connecticut Department of Mental Health and Addiction Services, working as a nurse at the Connecticut Valley Hospital in Middletown since 2005.  CARTER submitted a false Form W-4 to the state indicating that he had 99 exemptions and was exempt from tax withholding.  As a result, no money was withheld from his wages.  During the 2010 through 2012 tax years, CARTER paid no federal income taxes on more than $282,000 in income he received, resulting in a federal tax loss of $53,344.

Judge Thompson scheduled sentencing for April 14, 2015, at which time CARTER faces a maximum term of imprisonment of five years and a fine of up to $250,000.  He also is required to pay back taxes, plus interest and penalties.

CARTER was charged by indictment on April 9, 2014, and is currently released on bond.

This ongoing investigating is being conducted by the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Susan Wines.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RICHARD ANDERSON, also known as “Mayut” and “Porter,” 28, of New Haven, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 96 months of imprisonment, followed by five years of supervised release, for distributing narcotics.

According to court documents and statements made in court, this matter stems from “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven.  Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms.  Approximately 100 individuals were convicted of federal charges as a result of the investigation.

On February 6, 2014, a jury found ANDERSON guilty of one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack”).

According to the evidence at trial, ANDERSON conspired with Kevin Wilson, also known as “Nature,” to distribute crack cocaine and heroin, primarily in the Dwight/Chapel area of New Haven.  The trial evidence also revealed that ANDERSON supplied crack cocaine on multiple occasions to co-defendant Jesus Morales, also known as “Cano,” in deals that were brokered by Wilson.  On several occasions, Anderson was intercepted on a wiretap threatening violence against Morales in an effort to collect a drug debt.  At times, ANDERSON also obtained quantities of heroin from Wilson.

ANDERSON’s criminal history includes convictions for robbery and narcotics offenses.

ANDERSON has been detained since his arrest on May 17, 2012.

Wilson and Morales pleaded guilty.  On September 26, 2013, Morales was sentenced to 63 months of imprisonment.  Wilson awaits sentencing.

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

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

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Tom Carson
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAROD BROWN, 44, of New Haven, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 96 months of imprisonment, followed by three years of supervised release, for possession of a firearm by a previously convicted felon.  On November 14, 2013, a jury found BROWN guilty of the offense.

According to evidence introduced at trial, on April 5, 2011, BROWN fled from New Haven Police after a routine traffic stop.  BROWN initially rammed a police car and engaged police in a car chase.  He then exited the car and engaged police in a foot chase during which he discarded a loaded 9mm pistol in the yard of a residence on Elm Street.  BROWN was apprehended and the firearm was recovered.

BROWN’s criminal history includes convictions for larceny, narcotics and firearms offenses.  In 1993, BROWN was sentenced in New Haven federal court to 92 months of imprisonment for possession of a firearm by a previously convicted felon.

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.

BROWN has been detained since his arrest.

This matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorneys Jonathan Francis and Rahul Kale.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JUSTIN ASHLINE, 24, of Ellington, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of possession of a firearm by a previously convicted felon.

According to court documents and statements made in court, in late April or early May 2014, ASHLINE stole a Ruger .357 caliber handgun from his employer’s truck, traveled to Hartford and sold the gun to his heroin dealer in exchange for approximately 20 baggies of heroin and between $70 and $100 in cash.  On May 23, 2014, law enforcement officers located and seized the handgun when they executed a search warrant at the Hartford residence of the heroin dealer.

ASHLINE has been detained in federal custody since his arrest on June 20, 2014.

ASHLINE has four prior felony convictions, including one for sale of narcotics and one for first degree larceny.  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.

Judge Underhill scheduled sentencing for April 7, 2015, at which time ASHLINE faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Connecticut State Police and the Hartford Police Department.  The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ERIC COLON, 29, of Hartford, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for conspiring to possess and distribute heroin, some of which he stole from his drug supplier.

According to court documents and statements made in court, in January 2013, the DEA’s Hartford Task Force began an investigation into the narcotics distribution activities of Luis Fernandez of East Hartford.  The investigation, which included the use of court-authorized wiretaps and controlled purchases of narcotics, revealed that Fernandez’s family members and associates in southern California shipped heroin, cocaine and marijuana to Fernandez at various addresses in the Hartford area.  Fernandez, who also was supplied with narcotics from individuals in New York, sold the drugs locally to other dealers and customers.

The investigation revealed that COLON acquired distribution quantities of heroin from co-defendant Jose Rivera-Baron on several occasions.  During the course of the investigation, COLON, on behalf of co-defendant Joshua Saez, made arrangements to obtain approximately 140 grams of heroin from Rivera-Baron.  On August 16, 2013, while under law enforcement surveillance, Rivera-Baron met with COLON and Saez in the parking lot of a restaurant on Franklin Avenue in Hartford.  Following the meeting, COLON drove away at high rate of speed.  Investigators believed that Rivera-Baron had been robbed and pursued COLON’s car.  Saez exited the car and was taken into custody, but the chase of COLON was terminated for public safety reasons.

A search of Saez’s person revealed two handguns, as well as 138.1 grams of heroin that SAEZ and Colon had stolen from Rivera-Baron.

The quantity of heroin that Saez possessed would have produced nearly 7000 individual dosage bags and had a street value of approximately $35,000.

COLON was arrested on October 9, 2013.  On October 20, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute 100 grams or more of heroin.

More than 20 individuals have been charged with narcotics distribution and related offenses as a result of this investigation.  Fernandez, Saez and Rivera-Baron have pleaded guilty and, on December 2, 2014, Saez was sentenced to 71 months of imprisonment.  Fernandez and Rivera-Baron await sentencing.

This investigation has been led by the Drug Enforcement Administration’s Hartford Task Force, including personnel from the DEA Hartford Resident Office and the Bristol, Hartford, Manchester, New Britain, Newington, and Wethersfield Police Departments.  Agencies assisting the investigation include the DEA in New Haven, Bridgeport, Los Angeles and Panama, Federal Bureau of Investigation, U.S. Marshals Service, U.S. Department of Homeland Security, U.S. Postal Inspection Service, Connecticut State Police, State of Connecticut Office of Adult Probation, and the Hartford, East Hartford and New Britain Police Departments.

The case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Assistant U.S. Attorney Gabriel J. Vidoni.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHERRY HILL CONSTRUCTION, INC., a company based in North Branford, waived its right to indictment and pleaded guilty today in New Haven federal court to one count of filing a false tax return, and one count of making a false statement in relation to documents required by the Employee Retirement Income Security Act of 1974 (“ERISA”).  ERISA is a federal law that sets minimum standards for retirement plans in private industry, including a requirement that plan sponsors provide adequate funding for a plan.

According to court documents and statements made in court, CHERRY HILL CONSTRUCTION, INC., (“CHERRY HILL”) provides statewide service in site development, on-site crushing, trucking, demolition, as well as roll-off dumpsters, top soil, aggregates and landscaping.  CHERRY HILL was awarded and completed prevailing wage construction projects requiring payment of the prevailing wage rate plus the fringe rate.  The fringe rate is the cost of benefits to the employee.

When a company is awarded a prevailing wage project, the company must submit certified payrolls that list the hours, prevailing wage rate and fringe they are paying each employee.  The company can either pay the employee the fringe directly or open a benefit plan with the fringe payment being deposited into an account for the benefit of that employee.  The company is then paid by the federal, state or municipal governments the amount of payroll, including the fringe, after receiving the certified payrolls.  The government entity for which the project is being worked pays these funds only because the employer certifies that the prevailing wage and fringe is being paid to an employee directly or being deposited into a benefit plan.

CHERRY HILL opened a profit sharing/401(k) plan that was covered under ERISA.  In pleading guilty, CHERRY HILL admitted that, in 2010 and 2011, it underfunded its retirement plan by approximately $950,000.  CHERRY HILL further admitted that it filed a corporate tax return for the 2010 tax year that inflated its actual contribution to the plan, which resulted in an increased employee benefit deduction.

CHERRY HILL is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on April 7, 2015, at which time it faces a maximum penalty of 10 years of probation and a $750,000 fine.

CHERRY HILL has fully funded its retirement plan and paid $193,000 in back taxes, interest and penalties.

This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division; U.S. Department of Labor – Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; U.S. Department of Labor – Employee Benefits Security Administration, and U.S. Department of Transportation – Office of Inspector General.  The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced the formation of the Educational Opportunities Civil Rights Working Group to address civil rights violations by public and private educational institutions, afterschool programs, summer camps and day care centers.

U.S. Attorney Daly stated that the U.S. Attorney’s Office in Connecticut regularly receives complaints from concerned parents and caregivers alleging that their children were discriminated against by schools, afterschool programs and summer camps because of the child’s disability, gender, gender identity, or limited ability to speak English.  In addition, the Office has received an increasing number of complaints about bullying, sexual harassment and school segregation in public and private schools.  Over the last several months, the Office has settled cases against schools, afterschool programs and day care centers for violations of the Americans with Disabilities Act and the Equal Educational Opportunities Act of 1974.  These settlements have resulted in monetary settlements to parents, comprehensive training for providers, and sweeping policy changes to entire educational programs and systems.

Most recently, the U.S. Attorney’s Office has reached a settlement with Quinnipiac University to resolve allegations that the university violated the Americans with Disabilities Act by placing a student who had been diagnosed with depression on a mandatory medical leave of absence without first considering options for the student’s continued enrollment.

Recognizing a greater need to address and help prevent civil rights violations in educational and camp settings, the U.S. Attorney’s Office has partnered with federal and state agencies and advocacy groups to form the Educational Opportunities Civil Rights Working Group.

Participating in the Working Group are representatives from the U.S. Department of Health and Human Services, U.S. Department of Education, Connecticut Department of Education, Commission on Human Rights and Opportunities, Connecticut Office of Protection and Advocacy for Persons with Disabilities, African American Affairs Commission, Latino and Puerto Rican Affairs Commission, Asian Pacific American Affairs Commission, National Association for the Advancement of Colored People, Connecticut Children’s Medical Center, Connecticut Center for Children’s Advocacy, Connecticut Afterschool Network, Connecticut Recreation and Parks Association and the Connecticut Summer Camp Network.

The Working Group is developing and implementing a strategic action plan to address civil rights violations through educational outreach programs as well as law enforcement actions.

“Civil rights violations in educational and camp settings undermine the well-being of our most vulnerable citizens – our children,” stated U.S. Attorney Daly.  “Through aggressive outreach and enforcement initiatives, the U.S. Attorney’s Office and our working group partners strive to eliminate these violations to improve the health and welfare of all children and young adults.”

To contact the Educational Opportunities Civil Rights Working Group, please call 203-821-3836.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Acting Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division, today announced that the government has reached a settlement with Quinnipiac University to resolve allegations that the university violated the Americans with Disabilities Act (ADA) by placing a student who had been diagnosed with depression on a mandatory medical leave of absence without first considering options for the student’s continued enrollment.  Quinnipiac University is a private, coeducational university located in Hamden, Connecticut.

This matter stems from a complaint from a Quinnipiac University (“Quinnipiac”) student who had been removed from the university after she sought mental health counseling at the university.  The complainant also alleged that, after she had been removed, Quinnipiac denied her request to refund her tuition.

Title III of the ADA prohibits discrimination on the basis of disability, including depression, by places of public accommodation.

The investigation determined that Quinnipiac discriminated against the complainant by placing her on mandatory medical leave because of her depression, and failed to consider modifying its mandatory medical leave policy to permit the complainant to complete her course work while living off campus by attending classes either online or in person.

Under the settlement agreement, Quinnipiac has agreed to pay to the complainant $17,000 to compensate her for emotional distress, pain and suffering, and $15,126.42 to pay off the loan she obtained to pay tuition to Quinnipiac.  Quinnipiac also has agreed to implement a policy stating that it will not discriminate against applicants or students on the basis of disability, including persons with mental health disabilities, and to examine what modifications it can make to allow students with mental health disabilities to continue to participate in educational programs and attend their classes while seeking treatment for mental health conditions.  The university also will provide training on Title III of the ADA, with a focus on mental health-related disability discrimination, to all staff.

“Quinnipiac removed this student from the university at a very vulnerable time in her life, and saddled her with a large student loan payment,” said U.S. Attorney Daly.  “Instead of removing students from school, educational institutions must be equipped to manage and educate students who recognize, disclose and are treating their mental health disabilities.  We’re pleased that Quinnipiac has settled this matter, compensated the complainant and will implement a non-discrimination policy to help prevent this ADA violation from occurring in the future.”

“This settlement agreement reflects the critical role that educational institutions play in ensuring that students with mental health disabilities are afforded an equal opportunity to fully participate in all that colleges and universities have to offer,” said Acting Assistant Attorney General Gupta.  “Under the ADA, universities like Quinnipiac cannot apply blanket policies that result in unnecessary exclusion of students with disabilities if reasonable modifications would permit continued participation; in many cases, such modifications can be as simple as allowing a student to complete coursework on a modified schedule.”

This matter was handled by Assistant U.S. Attorney Lisa Perkins of the District of Connecticut and Trial Attorney Nabina Sinha of the Disability Rights Section of the Justice Department’s Civil Rights Division.

The U.S. Attorney’s Office for the District of Connecticut has partnered with federal and state agencies and advocacy groups to form the Educational Opportunities Civil Rights Working Group to address civil rights violations by public and private educational institutions, afterschool programs, summer camps and day care centers.  To contact the Working Group, please call 203-821-3836.

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 or 800-514-0383 (TTY).

More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NOAH L. MYERS, 43, of Lyme, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 40 months of imprisonment, followed by three years of supervised release, for defrauding investment clients in a “cherry-picking” securities scheme.  MYERS also was ordered to perform 150 hours of community service.

“Investors have a right to the fair and ethical management of their savings,” stated U.S. Attorney Daly.  “The sentence imposed today serves as ample warning that money managers who breach their clients trust in violation of federal securities laws will be prosecuted and risk losing their freedom and ill-gotten gains.  We thank the FBI and the SEC for their efforts in uncovering this cherry-picking scheme.”

 “Cherry-picking” is a fraudulent securities trading practice in which the responsible individual executes trades without assigning those trades to a particular trading account until the individual determines whether or not the trade has become profitable or suffered losses.  The responsible individual then allocates the profitable trades to favored accounts – often the individual’s own account – and assigns unprofitable trades to disfavored client accounts.

According to court documents and statements made in court, MYERS was the sole owner of MiddleCove Capital, LLC (“MiddleCove”), a Connecticut limited liability company with its principal place of business in the Centerbrook section of Essex.  MiddleCove had been registered with the U.S. Securities and Exchange Commission (“SEC”) as an investment adviser since 2008, and MYERS was the portfolio manager and managed a number of client accounts with assets of approximately $129 million.  MiddleCove used Charles Schwab & Co., Inc. (“Schwab”) to trade securities and as the custodian of the investments held in client accounts.  As part of the trading arrangement with Schwab, MYERS was permitted to place block purchases and sales of securities through a master account with Schwab and then, later in the day, allocate the purchases and sales to various accounts, including his personal accounts and various client accounts, all held by Schwab.

Between April 2009 and November 2010, MYERS engaged in “cherry-picking” at MiddleCove by purchasing the leveraged exchange traded fund (ETF) ProShares UltraShort Financials, otherwise known by its ticker symbol “SKF,” as well as other securities.  MYERS then disproportionately allocated trades that had appreciated in value during the course of the day to his personal and business accounts and allocated trades that had depreciated in value during the day to the accounts of his advisory clients.  As a result, MYERS gained as his clients suffered commensurate trading losses.

For example, in August 2009, on the nine days when MYERS purchased SKF in block trades in the master account and the security was sold as a day trade, MYERS allocated between 9 percent and 32 percent of the profitable block trades to his personal accounts.  On three of those days he allocated between 27 percent and 31 percent of the profitable day trades to his personal accounts.

In addition, on September 2, 2009, MYERS purchased SKF in a block trade in the master account and, after the investment increased in value, sold the shares in a day trade and allocated more than 31 percent of the investment to his personal accounts.  In sharp contrast, MYERS undertook four additional block purchases in the master account of SKF on September 3, 4, 16 and 28, 2009.  On each of these days, when the SKF investment declined in value by the close of trading, MYERS allocated no more than 5 percent of the block trade to his personal accounts and instead allocated the remaining 95 percent of the shares to his clients’ accounts.

In filings with the SEC in April 2009 and March 2010, MYERS and MiddleCove represented that batched trades would be allocated fairly and not unduly favor MYERS or MiddleCove.

On January 16, 2013, the SEC issued an order revoking the registration of MiddleCove as an investment adviser and barred MYERS from the securities industry.  MYERS also was ordered to pay $462,022 disgorgement, $26,096 in prejudgment interest, and a civil penalty of $300,000.

On October 20, 2014, MYERS waived his right to indictment and pleaded guilty to one count of security fraud.
This matter was investigated by the Federal Bureau of Investigation with the substantial assistance of the U.S. Securities and Exchange Commission.  The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.

Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to ctsecuritiesfraud@ic.fbi.gov.

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Deirdre M, Daly, United States Attorney for the District of Connecticut, announced that MARIA ROSA ESTEVES, 41, of Bridgeport, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day of imprisonment, followed by six months of home confinement and three years of supervised release, for embezzling more than $450,000 from the bank where she was employed.  ESTEVES also was ordered to pay full restitution, and to perform 60 hours of community service during her term of supervised release.

According to court documents and statements made in court, ESTEVES was employed by People’s United Bank from 1993 to 2014.  Beginning in 2006, ESTEVES worked primarily in the bank’s Adjustments Department, ultimately holding the title of Lead Adjuster with responsibilities that included arranging for bank cashiers’ checks to be issued to customers when a customer’s account needed to be adjusted.  ESTEVES used her position in the Adjustments Department to embezzle $452.122.08 from the bank by causing the bank to issue cashiers’ checks that ESTEVES would then use to pay persons or entities that she owed money to, including her utility company, homeowner’s insurance company and mortgage providers.  ESTEVES also embezzled money by depositing cashiers’ checks into bank accounts she controlled and from which she, or others associated with her, were able to access the funds.  In total, ESTEVES misappropriated more than 300 cashiers’ checks.

ESTEVES was ordered to report to prison on March 2, 2015.

On August 14, 2014, ESTEVES pleaded guilty to one count of embezzlement from a federally insured bank.

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

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL S. VASATURO, 57, of Seymour, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to two years of probation for filing a false tax return.  He was also ordered to pay a $16,000 fine and perform 100 hours of community service.

According to court documents and statements made in court, VASATURO, a business executive, earned supplemental income of approximately $132,500 in 2007 based on a private sale of copper to a scrap metal dealer, but failed to report any of the copper sale income on his 2007 federal income tax return.

VASATURO has previously paid the Internal Revenue Service $80,964.81 for the taxes plus interest and penalties due and owing on his unreported income.  He also agreed to forfeit an additional $144,888 in cash that he admits to having “structured” into his bank account to avoid federal cash transaction reporting requirements.

On August 22, 2014, VASATURO pleaded guilty to one count of filing a false tax return.

This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Henry K. Kopel.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JESUS AGOSTO, also known as “Gordo,” 24, of Hartford, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 41 months of imprisonment, followed by three years of supervised release, for distributing heroin and illegally possessing a firearm. 

According to court documents and statements made in court, in 2013, law enforcement received information that AGOSTO was selling significant quantities of heroin out of the Family Beltre Grocery store located on Broad Street in Hartford, and that AGOSTO was allegedly involved in illegal firearm trafficking.  In July and August 2013, investigators made multiple controlled purchases of heroin from AGOSTO at the grocery store.

AGOSTO has been detained since his arrest on September 11, 2013.  On that date, investigators executed search warrants at the grocery store and AGOSTO’s nearby apartment.  The search of the apartment revealed a .9mm semi-automatic handgun, a magazine loaded with seven rounds of .9mm ammunition, a shoe-box with narcotics-related materials and approximately $25,000 in cash.

AGOSTO was previously convicted of robbery in the first degree after he and an associate robbed a woman at gun point.

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.

On July 1, 2014, AGOSTO pleaded guilty to one count of possession with intent to distribute and distribution of heroin, and one count of possession of a firearm by a previously convicted felon. 

This matter was investigated by the Drug Enforcement Administration Hartford Task Force, including the Hartford, New Britain, Bristol, Wethersfield, Newington and Manchester Police Departments.  The case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned a 15-count indictment charging IAN PARKER BICK, 19, of Danbury, with fraud, money laundering and false statement offenses stemming from his alleged operation of Ponzi scheme.  The indictment was returned yesterday and BICK was arrested at his home this morning.

According to the indictment, BICK was a principal and/or managing member of various Danbury-based entities, including This Is Where It’s At Entertainment, LLC, Planet Youth Entertainment, W&B Wholesale, LLC, and W&B Investments, LLC.  Using these entities, BICK solicited investment funds from his friends, former classmates, acquaintances, and their parents by promising high investment returns over relatively short periods of time.  BICK falsely represent to victim-investors that he could generate the high investment returns by using their funds to purchase electronics and electronic devices, such as iPhones and head phones, and resell the electronics via the Internet.  BICK also falsely represented to certain victim-investors that he could generate high investment returns by using their funds to organize and promote various concerts, including concerts purportedly scheduled at various venues in Connecticut and Rhode Island.  BICK falsely represented that he had made significant profits organizing and promoting concerts in the past.  As part of the scheme, it is alleged that BICK entered into various investment contracts, including “Loan Agreements” and “Music Venture Participation Agreements,” with his victims.

The indictment alleges that BICK was not purchasing electronics and reselling any electronics on the Internet, and that the concerts he promoted were not generating significant profits as represented.  BICK failed to invest the money as represented and instead diverted invested funds for personal expenses, including hotel stays and to purchase jet skis.  BICK also used invested funds to issue payments, purportedly as “interest payments” and as “return of principal,” to certain victim-investors.

It is alleged that, through this scheme, BICK defrauded more than 15 investors out of a total of nearly $500,000.

The indictment further alleges that, during a June 2014 interview with U.S. Postal Inspection Service agents, BICK falsely stated, with respect to the use of the money that a certain victim-investor invested with Planet Youth Entertainment LLC, that “70 to 80 percent of the money had been on ‘artist deposits,’” when only a minimal portion, at most, of the invested funds had been used in any way connected with any artist deposits.

At his arraignment today before U.S. Magistrate Judge Joan G. Margolis in New Haven, BICK entered a plea of not guilty and was released on a $250,000 bond.  As conditions of his release, BICK was ordered not to have any contact with victims and witnesses, and not to use any social media accounts.

The indictment charges BICK with 11 counts of wire fraud, which carry a maximum term of imprisonment of 20 years on each count, three counts of money laundering, which carry a maximum term of imprisonment of 10 years on each count, and one count of making a false statement to federal law enforcement, which carries a maximum term of imprisonment of five years.

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

This matter is being investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with the assistance of the Danbury Police Department and the Connecticut Department of Banking.  The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.

This case has been assigned to U.S. District Judge Jeffrey A. Meyer in Bridgeport.

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

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The United States Attorney for the District of Connecticut and the United States Postal Inspection Service announced that BRIAN FOLEY, 63, of Simsbury, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to three years of probation, the first three months of which he must serve in a halfway house, for violating federal campaign finance laws.  FOLEY also was ordered to pay a fine of $30,000, and to pay the cost of his community confinement.

According to court documents and statements made in court, in 2011 and 2012, Foley’s wife, Lisa Wilson-Foley, was a candidate for election to the U.S. House of Representatives from Connecticut’s Fifth Congressional District, and competing in a primary campaign for the nomination of the Republican Party.  As a candidate for federal office, Wilson-Foley and her associates formed and registered with the Federal Election Commission (“FEC”) the “Lisa Wilson-Foley for Congress” committee in order to receive contributions and make expenditures on behalf of her campaign.

Brian Foley owns a Connecticut nursing home company and a number of other related companies, including a real estate company.

During the primary campaign, Foley, Wilson-Foley, former Connecticut Governor John Rowland and others conspired to conceal from the FEC and the public that Rowland was paid money in exchange for services he provided to Wilson-Foley’s campaign.  As part of the scheme, Rowland proposed to Foley and Wilson-Foley that he be hired to work on the campaign.  Wilson-Foley wanted Rowland to work on the campaign, but believed that because Rowland was a previously convicted felon, public disclosure of his paid role in the campaign would result in substantial negative publicity for Wilson-Foley’s candidacy.  In order to retain Rowland’s services for the campaign while reducing the risk that his paid campaign role would be disclosed to the public, Foley, Wilson-Foley and Rowland agreed that Rowland would be paid by Foley to work on the campaign.

Foley, Rowland and others created and executed a fictitious contract outlining an agreement purportedly for consulting services between Rowland and the law offices of an attorney who worked for Foley’s nursing home company.  Foley made regular payments to Rowland for his work on behalf of Wilson-Foley’s campaign and routed those payments from his real estate company through the law offices of the attorney.  Rowland provided nominal services to Foley’s nursing home company in order to create a “cover” that he was being paid for those nominal services when, in fact, he was being paid in exchange for his work on behalf of Wilson-Foley’s campaign.

Between September 2011 and April 2012, Rowland was paid approximately $35,000 for services rendered to Wilson-Foley’s campaign.  The payments originated with Foley and constituted campaign contributions, but were not reported to the FEC in violation of federal campaign finance laws.

In sentencing FOLEY below the recommended sentencing guidelines, Judge Arterton credited FOLEY’s extensive cooperation in the investigation and prosecution of this matter.

On March 31, 2014, Foley and Wilson-Foley each pleaded guilty to conspiring to make illegal campaign contributions.

On September 19, 2014, a jury found Rowland guilty of two counts of falsification of records in a federal investigation, one count of conspiracy, two counts of causing false statements to be made to the FEC, and two counts of causing illegal campaign contributions.

Wilson-Foley and Rowland await sentencing.

This matter was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorneys Liam Brennan and Christopher Mattei.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HECTOR MORALES, 51, of New Haven, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 174 months of imprisonment to be followed by 3 years of supervised release.  After a four-week trial, Morales was convicted of being an accessory after the fact to the March 2011 arson of a two-family house in Fair Haven that caused the deaths of three residents, 41-year-old Wanda Roberson, her 8-year-old son Quayshaun Roberson and her 21-year-old niece Jaqueeta Roberson.  The jury convicted Morales’s son Hector Natal of setting the arson that killed these three members of the Roberson family.  Morales was also convicted of conspiring with Natal to distribute narcotics and to obstruct justice in their joint attempt to undermine law enforcement’s efforts to investigate the fatal arson. 

“As the victims’ families so aptly described today, this crime was a senseless tragedy in which three innocents, Wanda Roberson, her young son Quayshaun and her niece Jaqueeta, were killed by a brutal and reckless drug dealer,” stated U.S. Attorney Daly.  “This lengthy sentence is appropriate as Hector Morales literally drove his son’s criminality – driving him to drug deals, assisting him in his escape from the arson, and making every to avoid the detection of law enforcement by altering evidence and tampering with and intimidating witnesses.  Our law enforcement partners, particularly the New Haven Fire and Police Departments, the FBI and the Connecticut State Police, expertly investigated this tremendously difficult case.  We thank them for ensuring justice for the Roberson family who continue to suffer from an incomprehensible loss.”

“Today’s sentencing is a step toward closure and healing for the Fair Haven community and the Roberson family,” stated FBI Special Agent in Charge Patricia M. Ferrick.  “It also demonstrates that disrespect of our judicial system will not be tolerated.”

On April 18, 2013, Natal and Morales were found guilty on all counts of an 11-count indictment.  According to the evidence presented during trial, Natal was a New Haven drug dealer who sold cocaine, crack cocaine, pills and marijuana. Morales served as Natal’s driver, facilitating his sales of narcotics and collection of drug proceeds.  Early on the morning of March 9, 2011, Natal set fire to 48-50 Wolcott Street in New Haven in retaliation for a customer’s failure to pay a small drug debt.  Seventeen people, including three toddlers, two pregnant women and two grandmothers, were in the house at the time the fire was set.   Morales and Natal lived close to the Wolcott house.  After the fire was set, Morales drove Natal away from the scene in his blue van.  Hearing reports that a blue van was seen leaving the scene, Morales painted his van black in an effort to obstruct the investigation of the fatal fire. Natal and Morales then schemed with other family members to testify falsely before the grand jury in an effort to prevent the grand jury from developing evidence regarding their complicity in the arson.

The evidence at trial also showed that, months before the fatal fire, Natal attempted to set a fire in the same Wolcott Street house.

Natal was found guilty of three counts of arson resulting in death, and one count of attempted arson.  Natal and Morales were both convicted of conspiring to distribute and to possess with intent to distribute narcotics, conspiring to tamper with witnesses and witness tampering.  Morales was found guilty on three counts of being an accessory after the fact to the arson, and one count of destruction and concealment of evidence.

Morales has been detained since his arrest on July 19, 2012.

Natal, 29, has been detained since his arrest on June 14, 2011.  He is scheduled to be sentenced on February 10.

This matter was investigated by the Federal Bureau of Investigation, the New Haven Police Department, the Connecticut State Police Major Crimes Unit, Office of the State Fire Marshal, the New Haven Fire Department – Office of Fire Marshal, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Department of Housing and Urban Development’s Office of Inspector General.  The case is being prosecuted by U.S. Attorney Deirdre M. Daly and First Assistant U.S. Attorney Michael J. Gustafson, with assistance and support from the New Haven State’s Attorney’s Office.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMILA ABOUTAYEB, 54, of Fairfield, pleaded guilty today in Hartford federal court to one count of unlawful use of food stamp benefits.

On May 14, 2014, a grand jury in New Haven returned indictments charging ABOUTAYEB and her brother, Khalid Aboutayeb, with engaging in food stamp fraud at the M&J Deli Market, a grocery and convenience store they operated at 988 State Street in Bridgeport.

The federal Supplemental Nutrition and Assistance Program (“SNAP”) is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power.  SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items.  Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items.  SNAP benefits may not lawfully be exchanged for cash under any circumstances.  The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.

In pleading guilty, ABOUTAYEB admitted that she unlawfully exchanged customers’ food stamp benefits for ineligible items and cash at M&J Deli Market between approximately June 2013 and March 2014.

On December 17, 2014, Khalid Aboutayeb pleaded guilty, admitting that he and others unlawfully exchanged food stamp benefits for ineligible items and cash at the store between approximately December 2011 and February 2013.

The investigation has revealed that more than $285,000 in illegal SNAP benefits were redeemed at the store.

ABOUTAYEB is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on March 23, 2015, at which time she faces a maximum term of imprisonment of five years, a fine and an order of restitution.

This matter is being investigated by the U.S. Department of Agriculture, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorney Felice M. Duffy.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID LIPTAK, 50, of Milford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in Bridgeport to 10 months of imprisonment, followed by three years of supervised release, for embezzling $108,000 from his employer. LIPTAK also was ordered to pay full restitution and a fine of $3,000.

According to court documents and statements made in court, LIPTAK was employed by Consolidated Management Group (“CMG”) of Westport.  CMG provided management services to condominium associations, including managing the bank accounts and expenses of the associations. From approximately June 2008 to March 2012, LIPTAK embezzled approximately $108,000 from CMG.

On May 14, 2014, LIPTAK pleaded guilty to one count of interstate transportation of money obtained by fraud.  He was ordered to report to prison on February 23, 2015.

This matter was investigated by the United States Secret Service and the Westport Police Department.  The case was prosecuted by Senior Litigation Counsel Richard J. Schechter.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL MORRIS, 60, of Bloomfield, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 48 months of imprisonment, followed by three years of supervised release, for committing violent bank robberies in Southbury, Cromwell and Wallingford.

According to court documents and statements made in court, MORRIS, Leroy McCoy and Keith Sutherland conspired to commit the armed robberies of the Naugatuck Savings Bank in Southbury on April 20, 2011, the Webster Bank in Cromwell on October 7, 2011, and the Connex Credit Union in Wallingford on April 19, 2012.

Prior to each robbery, Sutherland, with the knowledge of MORRIS and McCoy, stole a minivan in the New Haven area.  Upon arriving at each victim bank, MORRIS, McCoy and two other individuals, wearing masks and armed with handguns, burst into the bank and ordered employees and customers to the ground.  They then forced a bank employee to open the vault, stuffed money taken from the vault and teller drawers into duffle bags, exited the bank fled in the stolen vehicle.

A total of approximately $230,000 was taken during the three robberies.

MORRIS has been detained since his arrest on October 4, 2013.  On September 24, 2014, he pleaded guilty to one count of conspiracy to commit armed bank robbery.

McCoy and Sutherland also pleaded guilty.  On December 10, 2014, McCoy was sentenced to 54 months of imprisonment.  Sutherland awaits sentencing.

This ongoing investigation is being conducted by the FBI, the Connecticut State Police, and the Cromwell, Wallingford, Fairfield and Orange Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FILIPPOS MILIOS, also known as Filip Milios, 56, of Newington, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 97 months of imprisonment, followed by five years of supervised release, for orchestrating a mortgage fraud scheme that involved dozens of Connecticut properties and resulted in nearly $5.7 million in losses to lenders.

According to court documents and statements made in court, from approximately June 2005 to July 2010, MILIOS and others conspired to defraud banks and mortgage lenders in obtaining dozens of mortgages for the sale of properties owned by MILIOS and others.  The conspiracy involved the use of straw borrowers, false mortgage applications, false HUD-1 forms and fraudulent down payments in connection with the purchase of more than 50 houses primarily located in Hartford, New Haven and Middlesex counties.

As part of the scheme, MILIOS purchased properties, either in his own name, in a limited liability corporation in which he had an interest, or in the name of a co-conspirator.  MILIOS and others then recruited borrowers to purchase these properties.  Unbeknownst to the lenders who extended mortgages to the borrowers, MILIOS and his co-conspirators submitted fraudulent documents in connection with the loan applications, including false HUD-1 forms, employment verification letters and rental verification letters.

MILIOS also made the down payments on behalf of the borrowers who were recruited to purchase the properties.  Attorney Gabriel Serrano, who served as a closing attorney for most of the fraudulent transactions, often released the seller’s proceeds checks from closing to MILIOS before receiving the down payment, and MILIOS used the seller’s proceeds checks to purchase the down payment check for the same transaction.  MILIOS also failed to disclose to mortgage lenders that he paid money to borrowers, mortgage brokers, and recruiters.

MILIOS also engaged in a money laundering conspiracy with Serrano.  The conspiracy involved Serrano’s disbursing the fraudulently-obtained loan proceeds to the private lenders who had loaned MILIOS money when he originally purchased the properties.

Lenders lost $5,692,813 as a result of this scheme.

MILIOS was originally charged by criminal complaint in January 2013 and has been detained since March 20, 2014, when his bond was revoked after he made an attempt to flee the country on a shipping container vessel while awaiting trial.  On September 15, 2014, he pleaded guilty to one count of conspiracy to commit mail and bank fraud, and one count of conspiracy to commit money laundering.

MILIOS, who is a citizen of Greece, faces immigration proceedings when he is released from prison.

On August 6, 2013, Serrano also pleaded guilty to one count of conspiracy to commit mail and bank fraud, and one count of conspiracy to commit money laundering.  Seven other co-conspirators involved in this scheme have also pleaded guilty.  All await sentencing.

This case is being 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 is being prosecuted by Assistant U.S. Attorneys David T. Huang and William J. Nardini.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury sitting in Hartford has returned an indictment charging JOHN A. BARILE, 51, of East Hartford, with one count of conspiracy, one count of arson, and two counts of mail fraud.  The indictment was returned on December 30, 2014, and BARILE was arrested at his home last night.

The indictment alleges that BARILE and others conspired to set fire to Enzo’s Restaurant and Lounge, a restaurant that he jointly owned that was located on Main Street in Middletown, in order to collect the insurance proceeds.  Shortly after midnight on January 10, 2010, BARILE ignited the fire, left the restaurant and locked the doors, leaving the other owner inside.  After the fire, BARILE sought payment from an insurance company for losses suffered as a result of the fire, and concealed his role in the fire from the insurance company and law enforcement.  The insurance company ultimately paid approximately $165,000 to BARILE to settle the insurance claims related to the fire.

The other owner who was in the restaurant at the time of the fire was rescued by the Middletown Fire Department.

At his arraignment today before U.S. Magistrate Judge Donna F. Martinez in Hartford, BARILE entered a plea of not guilty and was ordered detained pending a hearing scheduled for January 9, 2014.

If convicted of arson, BARILE faces a mandatory minimum term of imprisonment of seven years and a maximum term of imprisonment of 40 years.  The mail fraud charges carry a maximum term of imprisonment of 20 years on each count, and the conspiracy charge carries a maximum term of imprisonment of five years.

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

This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Middletown Police Department and the Connecticut State Police.  This case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and Neeraj N. Patel.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two New Haven men involved in a gang-related crack cocaine distribution ring were sentenced today by U.S. District Judge Alvin W. Thompson in Hartford.  MUJAHID MUHAMMED, also known as “Doughboy,” 29, was sentenced to 120 months of imprisonment, followed by five years of supervised release, and GREGORY TEEL, also known as “Detwan,” 36, was sentenced to 58 months of imprisonment, followed by three years of supervised release.

According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force into drug distribution and related gang activity in The Hill neighborhood of New Haven.  The investigation, which included the use of court-authorized wiretaps, revealed that members and associates of the Southside Bloods were distributing large quantities of crack cocaine.  MUHAMMED was the leader of the organization in New Haven.

On August 7, 2013, MUHAMMED pleaded guilty to one count of conspiracy to possess with intent to distribute 280 grams or more of cocaine base (“crack”), and on December 4, 2013, TEEL pleaded guilty to one count of conspiracy to possess with intent to distribute a quantity of cocaine base.

Eight other individuals were charged as a result of this investigation.  All have pleaded guilty.

This matter was investigated by the FBI’s New Haven Safe Streets Task Force, including the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction.  The case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Gordon Hall.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven has returned an 11-count indictment charging DAVID C. JACKSON, also known as “C. David Manns,” “Charles Jackson” and “Andrew D. Smithson,” 53, and ALEX HURT, also known as “Alex Dante,” 45, with various offenses related to an advance fee fraud scheme that defrauded individuals out of several million dollars.

The indictment was returned yesterday.  JACKSON, who has resided in Maryland, Ohio and Pennsylvania, has been detained since his arrest on a criminal complaint on August 26, 2014.  HURT, recently of Dover, Massachusetts, has been ordered to report to the District of Connecticut for his arraignment.

As alleged in the indictment and in previously-filed court documents, in approximately September 2009, JACKSON, using the alias “C. David Manns,” established Jalin Realty Capital Advisors, LLC, using a business address in Dayton, Ohio.  In 2011, JACKSON changed the name of his business to American Capital Holdings, LLC, using business addresses in Pittsburgh, Pennsylvania.  Soon after changing the business name, JACKSON began introducing himself to victim clients as “Charles Jackson.”

HURT held himself out as Vice President of Brightway Financial Group, LLC, a company that used a business addresses in Grapevine, Texas.

The indictment alleges that JACKSON, HURT and others defrauded individuals, including Connecticut residents, who wired funds to them in anticipation of receiving large business loans.  The upfront fees were alternately described as “application fees,” “collateral fees” or “commitment fees.”  The victims were promised a refund of the upfront fees if their loan transactions were not completed.  In order to convince victim-borrowers that the loans were legitimate and Jalin and ACH had successfully secured loans in the past, JACKSON provided victims and potential victims the name and phone number of a co-conspirator and told them that they could contact his co-conspirator for a reference.  After she was contacted, the co-conspirator falsely represented to victims and potential victims that she had, in fact, received funding from JACKSON for a construction loan, and that she had successfully done a project financed with her co-conspirator and Jalin.

Through this alleged scheme, more than 20 individuals provided JACKSON and HURT with millions of dollars in advance fees for business loans that were never provided.  Some of the individuals received partial refunds of the advance fees they had provided, but the refunds were made using fees that had been paid by other victims.

The indictment charges JACKSON and HURT with one count of conspiracy to commit wire fraud and multiple counts of wire fraud, offenses that carry a maximum term of imprisonment of 20 years on each count.  The indictment also charges HURT with one count of making a false statement to federal law enforcement, which carries a maximum term of imprisonment of five years.

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

This matter is being investigated by the Federal Bureau of Investigation and the Ansonia Police Department, and is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Michael S. McGarry.

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

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHRISTOPHER BRYAN COLEMAN, 25, of Waterbury, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 42 months of imprisonment, followed by two years of supervised release, for illegally possessing a firearm.

According to court documents and statements made in court, on April 22, 2014, officers from the Waterbury Police Department responded to a complaint of a disturbance at 1298 N. Main Street in Waterbury.  There, the complainant told police that her car had broken down and, while she was awaiting assistance, a male had attempted to gain entry to her vehicle.  As one of the officers drove up to the male, who was later identified as COLEMAN, the officer observed COLEMAN remove a firearm from his waist area and throw it over a chain link fence.  Officers then recovered an RG14 .22 caliber revolver with an obliterated serial number, loaded with six rounds, three of which were live and three of which were expended.

Prior to that date, COLEMAN had been convicted of sale of controlled substance, escape in the first degree, and possession of a controlled substance with intent to distribute.

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.

COLEMAN has been detained since his arrest on April 22.  On September 23, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Waterbury Police Department.  The case was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHNATHAN REYES, also known as “Whitey,” 24, of Bridgeport, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 24 months of imprisonment, followed by two years of supervised release, for illegally possessing a firearm.

This matter stems from an FBI Bridgeport Safe Streets Task Force into narcotics trafficking activity and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport.   On December 18, 2013, a federal grand jury returned an 18-count indictment charging 14 individuals, including Ronell Hanks, also known as “Biz” and “Ace,” with various narcotics and firearms offenses.

When Hanks was arrested on December 5, 2013, task force officers seized from him an Apple iPad that contained numerous videos, including three that depicted both Hanks and REYES at the Bridgeport Shooting Range firing a long gun and a handgun.  The investigation revealed that the videos were recorded on February 27, 2013.

In February 2007, REYES was convicted in state court of first degree burglary, reckless endangerment, risk of injury and possessing a pistol without having a permit.  For these offenses he was sentenced to eight years of imprisonment, execution suspended after four years, and three years of probation.

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.

REYES has been detained since his arrest on May 1, 2014.  On September 30, 2014, he pleaded guilty to one count possession of a firearm by a previously convicted felon.

Hanks has pleaded guilty and awaits sentencing.

This matter has been investigated by the FBI’s Bridgeport Safe Streets Task Force, in coordination with the Bridgeport Police Department, Norwalk Police Department, Trumbull Police Department and Connecticut State Police Statewide Narcotics Task Force.  The case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Rahul Kale.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JAVIER MORENO, 27, a citizen of Guatemala who recently resided in Willimantic, was sentenced yesterday by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 51 months of imprisonment for illegally reentering the United States after being deported, and for violating the conditions of his supervised release that followed a previous term of imprisonment for illegal reentry.

According to court documents and statements made in court, on October 15, 2005, MORENO was arrested in Connecticut on state charges that included assault.  On May 26, 2006, he was deported from the U.S. to Guatemala.  MORENO reentered the U.S. and, on December 29, 2006, was arrested in Windham.  Subsequent to his arrest, MORENO was convicted in state court of assault in the second degree, and also violation of probation.  On September 28, 2007, he again was removed to Guatemala.

MORENO reentered the U.S. and, on September 15, 2008, was convicted of criminal impersonation and operation under the influence.  On June 12, 2009, MORENO was convicted of assault in the third degree and failure to appear in the first degree, and was sentenced to one year of incarceration.  MORENO also was convicted of violation of probation stemming from a prior conviction.  MORENO remained in custody from September 8, 2008, until January 29, 2010.

MORENO was charged with illegal reentry, pleaded guilty and, on May 7, 2010, was sentenced by Judge Eginton to 24 months and three years of supervised release.  He completed his federal sentence on December 16, 2011, and was deported to Guatemala for the third time on January 18, 2012.

In January 2014, MORENO again illegally reentered the U.S.  On April 25, 2014, he was charged in state court with interfering with an officer and resisting arrest for leading Willimantic Police officers on a foot pursuit following a motor vehicle stop four days earlier.

MORENO has been detained since his arrest.  On September 24, 2014, he pleaded guilty to reentry of a removed alien.

Judge Eginton sentenced MORENO to 33 months of imprisonment for illegal reentry, and a consecutive 18-month prison term for violating the terms of his supervised release from his previous conviction.

This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations.  The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two New Haven men were sentenced yesterday by Senior U.S. District Judge Warren W. Eginton in Bridgeport for their involvement in a gang-related narcotics distribution ring.  KENNETH STURDIVANT, also known as “Slay,” 29, was sentenced to 120 months of imprisonment and five years of supervised release, and JAROD AARON, 31, was sentenced to 60 months of imprisonment and four years of supervised release.

According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force and the New Haven Police Department that was initiated in the wake of repeated shootings and other violence between members of the Bloods and members of the Grape Street Crips in the Hill section of New Haven.  The investigation resulted in the arrests of members of both the Bloods and the Grape Street Crips.

STURDIVANT and AARON were associates of Donald Ogman, who has been identified in court proceedings as a leader of the Grape Street Crips.  STURDIVANT, also a member of the Crips, and AARON distributed crack cocaine with Ogman in and around New Haven.

On March 10, 2014, STURDIVANT pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack cocaine”).  On March 21, 2014, AARON pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base.  STURDIVANT and AARON are both previously convicted felons.

A total of 20 individuals were charged as a result of this investigation, and all have pleaded guilty.  Ogman awaits sentencing.

This matter was investigated by the FBI’s New Haven Safe Streets Task Force, which includes the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction.  The investigation has been assisted by the U.S. Marshals Service and the Westerly (R.I.) Police Department.

This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and H. Gordon Hall.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DEMETRIOS PAPADAKOS, also known as “Jimmy,” 67, of Danbury, was sentenced yesterday by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 121 months of imprisonment, followed by four years of supervised release, for heading a Fairfield County narcotics trafficking ring.

This matter stems from a year-long investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Norwalk Police Department into the distribution of oxycodone, cocaine and marijuana in Fairfield County.  Sixteen individuals were charged and convicted as a result of this investigation.

According to court documents and statements made in court, PAPADAKOS and Alfred Catino, also of Danbury, were long-time associates who headed the narcotics trafficking ring.  The investigation revealed that PAPADAKOS facilitated the purchase and distribution of more than 6,800 oxycodone 30mg pills and more than a kilogram of cocaine.  PAPADAKOS traveled to Florida to purchase wholesale quantities of oxycodone and traveled to New York to acquire oxycodone and cocaine, received prescriptions for oxycodone from a corrupt doctor to whom he had loaned a large sum of money, and obtained oxycodone from a co-defendant who had obtained pills from people with legitimate prescriptions in exchange for cash.

PAPADAKOS has been detained since arrest on May 8, 2012.  On June 23, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine, oxycodone and marijuana.

PAPADAKOS’ criminal history spans approximately 40 years and includes six federal felony convictions, one state felony conviction and multiple misdemeanor convictions, most of which are related to drug trafficking.

Catino has pleaded guilty and awaits sentencing.

This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Norwalk Police Department, with assistance provided by the Connecticut State Police and the Bridgeport, Stamford, Stratford and Westport Police Departments.  The case is being prosecuted Assistant U.S. Attorneys Vanessa Richards and Michael Runowicz.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that LANCELOT SUPERSAD, 19, and ANTHONY SANTIAGO, 21, both of Bridgeport, have pleaded guilty in Bridgeport federal court to conspiring to commit multiple robberies earlier this year.

According to court documents and statements made in court, on April 26, 2014, SUPERSAD and others committed an armed robbery of the CVS Pharmacy on Grasmere Avenue in Fairfield, stealing approximately $2,376.  On May 3, 2014, SUPERSAD and others attempted an armed robbery of the Mobil Gas station on Noble Avenue in Bridgeport.  On May 10, 2014, SUPERSAD and others committed an armed robbery of a Webster Bank branch on Main Street in Bridgeport, stealing approximately $4,170.  On June 1, 2014, SUPERSAD and others committed an armed robbery of a Pizza Hut on Boston Avenue in Bridgeport, stealing approximately $250.  On June 26, 2014, SUPERSAD, SANTIAGO and others committed an armed robbery of the Residence Inn on Bridgeport Avenue in Shelton, stealing approximately $200.  On July 2, 2014, SUPERSAD, SANTIAGO and others attempted an armed robbery of the Sikorsky Financial Credit Union on Oronoque Lane in Stratford.  Also on July 2, 2014, SUPERSAD, SANTIAGO and others committed an armed robbery of the TD Bank located on Post Road East in Westport.

SUPERSAD and SANTIAGO were arrested on July 2, 2014, and are detained.

On December 15, 2014, SUPERSAD waived his right to indictment and pleaded guilty to one count of conspiracy to affect commerce by robbery, which carries a maximum term of imprisonment of 20 years.  SANTIAGO waived his right to indictment and pleaded guilty to the same charge today.

This case has been assigned to Chief U.S. District Judge Janet C. Hall in New Haven.  Sentencing dates are not yet scheduled.

This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Westport, Shelton, Fairfield, Stratford, and Bridgeport Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Felice M. Duffy.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL LOMBARDO, Jr., 38, of Stamford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for defrauding more than 20 of his investment clients.

According to court documents and statements made in open court, LOMBARDO worked for David Lerner Associates, Inc., a Westport-based company that provided investment services.  LOMBARDO provided financial advice to the company’s clients with respect to their retirement savings and other investments.  From approximately September 2011 to February 2014, LOMBARDO defrauded more than 20 clients by diverting more than $190,000 in client funds for his personal use.  As part of his scheme, LOMBARDO submitted fraudulent requests to disburse a portion of the retirement accounts of clients.  LOMBARDO would request that a disbursement check be sent, typically by overnight mail, to him at his Westport office.  After he received the check, he would forge the client’s signature on the back of the check and then cause the check to be deposited into his personal bank account.

As part of his sentence, LOMBARDO was ordered to pay $191,068.73 in restitution.

On September 11, 2014, LOMBARDO pleaded guilty to one count of wire fraud.

This case was investigated by the Westport Police Department and the United States Secret Service and was prosecuted by Assistant U.S. Attorney Ray Miller.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT E. LEE, JR., 50, of Oxford, pleaded guilty today in Bridgeport federal court to an indictment charging him with five counts of wire fraud stemming from his operation of a Ponzi scheme.

According to court documents and statements made in court, LEE was employed as a broker and financial advisor for various financial investment firms until July 2013 when he was terminated by his most recent employer, Rockwell Global Capital, LLC.   Between January 2011 and March 2014, LEE defrauded individuals of more than $800,000 by claiming that he was investing their money in various investment vehicles when, in fact, he was maintaining custody of their funds in his personal bank account.  He then used the money to make distributions to other investors, and for personal expenses.  To conceal the scheme, LEE fabricated account statements and other documents, which he delivered to his victims.
LEE was arrested on May 12, 2014, and he is currently released on a $250,000 bond.

Each count of wire fraud carries a maximum term of imprisonment of 20 years.  LEE is scheduled to be sentenced by U.S. District Judge Jeffrey Alker Meyer on March 11, 2015.

The government is seeking the forfeiture of $358,077.17 that LEE held in an online trading account at the time of his arrest.

This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys David T. Huang and Christopher M. Mattei.

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U.S. ATTORNEY'S OFFICE
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