District of Connecticut

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CRUZ BONILLA, also known as “Jay,” 30, of New London, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 68 months of imprisonment, followed by four years of supervised release, for distributing heroin.

According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut.  On multiple occasions in the fall of 2012, BONILLA was intercepted over court-authorized wiretaps ordering heroin from other members of the conspiracy.  BONILLA then sold the drug to his own customers.  In October 2012, while he was incarcerated for state parole violations, BONILLA arranged to have his then-girlfriend purchase and distribute heroin on his behalf.

On October 2, 2013, BONILLA pleaded guilty to one count of conspiracy to possess with the intent to distribute 100 grams or more of heroin.

BONILLA has been incarcerated since October 2012, but his time served will not be credited toward his 68-month federal sentence.

More than 100 individuals have been charged with federal and state offenses as a result of this investigation.

This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department.  The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office;  Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.

The federal case is being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel.  The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DEANDRE BARNES, also known as “D-Man,” 24, of Hamden, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 30 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.

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 into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven.

On April 9, 2012, a grand jury returned an indictment charging BARNES and 17 other individuals with narcotics distribution offenses stemming from this investigation.  On October 16, 2013, BARNES pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).

Eight defendants are awaiting trial, which is currently scheduled for March 2014.  With respect to these defendants, 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 FBI’s New Haven Safe Streets Task Force, the New Haven, Hamden and Milford Police Departments, 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, and Daniel J. Kumor, Special Agent in Charge of the ATF Boston Field Division, announced that ELLIOT PEREZ, 28, of Bridgeport, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to multiple offenses related to his theft of 111 firearms from the Smith & Wesson manufacturing plant in Springfield, Mass.

“This defendant is responsible for stealing over 100 illegal firearms and putting some of them directly into the hands of criminals,” stated U.S. Attorney Daly.  “These guns are turning up in criminal investigations as far away as North Carolina, and one was used in a recent shooting at a Hartford night club.  There is nothing more important to our mission than keeping illegal guns off the streets.  We will continue to prioritize these cases and prosecute them to the fullest extent of the law. We thank the Stratford and Bridgeport Police Departments for their great work in quickly arresting these defendants, and the ATF for their investigative work and ongoing efforts to find the over 50 firearms that have yet to be recovered.”

“Stopping the illegal flow of firearms continues to be one of ATF’s top priorities,” stated Special Agent in Charge Kumor.  “This ongoing investigation is another example of what happens when law enforcement works together to make communities safer.”

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

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

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

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

PEREZ pleaded guilty to one count of conspiracy to possess and sell stolen firearms, one count of possession of firearms by a convicted felon and one count of making a false statement to a federal law enforcement officer.  Judge Thompson scheduled sentencing for May 7, at which time PEREZ faces a maximum term of imprisonment of 20 years.

On December 12, 2013, Murphy, 25, pleaded guilty to one count of conspiracy to possess and sell stolen firearms and one count of possession of firearms by a convicted felon.  He is scheduled to be sentenced on April 21 and faces a maximum term of imprisonment of 15 years.

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

U.S. Attorney Daly noted that two convicted felons found in possession of stolen Smith & Wesson firearms taken during the November 2012 theft are also being prosecuted by her office.

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

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Deirdre M. Daly, United States Attorney for the District of Connecticut, and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury sitting in Hartford has returned a 10-count indictment charging MATTHEW VOLOSHIN, 28, of East Haven and JESSE WRUBEL, 27, of West Haven, with drug and firearms offenses in connection with their alleged involvement in a New Haven area marijuana trafficking conspiracy. 

This matter stems from a DEA Task Force investigation that included the use of court-authorized wiretaps, controlled purchases of marijuana and physical surveillance.  On June 4, 2013, VOLOSHIN and WRUBEL were arrested on state charges.  Search warrants executed in association with their arrests revealed two loaded handguns and approximately $50,000 that were found at VOLOSHIN’s residence, and three handguns and approximately 40 pounds of marijuana that were found at an East Haven garage rented by VOLOSHIN.  Three of the five firearms were stolen.  Law enforcement also seized approximately 20 pounds of marijuana, approximately $15,000 and a loaded nine millimeter rifle from WRUBEL.

The indictment was returned on January 30, and VOLOSHIN and WRUBEL were arrested on the federal charges on February 7.  They are currently detained.

The indictment charges VOLOSHIN and WRUBEL with conspiracy to distribute more than 100 kilograms of marijuana, and multiple marijuana distribution offenses.  The conspiracy charges carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.

The indictment also charges both defendants with possession of a firearm in furtherance of a drug trafficking crime, which carries a consecutive sentence of five years.  VOLOSHIN is also charged with possessing three stolen firearms, a charge that carries a maximum term of imprisonment of 10 years.

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

This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force.  The case is being prosecuted by Assistant U.S. Attorney Patrick Caruso.

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 BRITT MARTIN, also known as “Big Baby,” 30, formerly of Northford, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 120 months of imprisonment, followed by four years of supervised release, for trafficking 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.  More than 100 individuals were charged as a result of the investigation.

One target of the investigation was Christopher “White Boy Chris” Morley, who operated a large-scale drug trafficking operation in the greater New Haven area, involving cocaine, crack cocaine, marijuana, and oxycodone.  The investigation revealed that MARTIN conspired with Morley to obtain large quantities of cocaine and marijuana from sources of supply in New York City.  Some of the cocaine was converted to crack, and the drugs were sold to customers and other drug distributors in and around New Haven.

MARTIN’s criminal history includes an arrest on December 21, 2011, when law enforcement officers conducted a motor vehicle stop of a car in which MARTIN was a passenger and found him in possession of approximately eight ounces of marijuana.  A subsequent search of a residence connected to MARTIN revealed more than two pounds of marijuana, approximately $18,500 in cash and a loaded revolver that had been stolen.

MARTIN has been detained since his federal arrest on May 22, 2012.  On November 12, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine.

Morley has pleaded guilty and awaits sentencing.

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

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

PUBLIC AFFAIRS CONTACT:

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Tom Carson
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that NORMA TORRES, 56, of Hartford, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 20 months of imprisonment, followed by three years of supervised release, for her role in a heroin trafficking ring.

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

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

The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that TORRES assisted the conspiracy by allowing her apartment, located at 592 Zion Street, to be used as a “stash house,” storing five to 15 stacks of heroin at her residence every day.  A stack of heroin consists of 100 dose bags, with each bag containing approximately .025 grams of heroin.

TORRES was arrested on April 11, 2013.  On November 14, 2013, she pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute heroin.

Angel Rosa, aka “Little” and “Daddy,” and Angel Rosa, aka “Mo Betta” and “Fab,” have each pleaded guilty and await sentencing.

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

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

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 that JUSTIN POWELL, also known as “Jus,” 32, of Hartford, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 96 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.

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

According to court documents and statements made in court, one of the main targets of the investigation was Dementrius Nave, a member of the AVE street gang with a lengthy criminal history.  POWELL, who is not believed to be a member of the AVE, conspired with Nave and others to distribute crack cocaine and other narcotics in Hartford’s Northeast neighborhood.  POWELL and Nave would pool money to acquire narcotics and would serve customers for each other.

POWELL has been detained since his arrest on February 10, 2012.  On that date, investigators conducted a traffic stop of a vehicle in which POWELL was a passenger after they observed what appeared to be a narcotics exchange.  POWELL was on state parole at the time and was wearing a monitoring bracelet.  A subsequent search of POWELL’s residence revealed 63 bags of heroin, which were stamped “Super Bowl XLVI,” and a scale with white-powder residue that tested positive for the presence of cocaine.

On November 4, 2013, POWELL pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).

POWELL’s criminal history includes multiple convictions for sale of narcotics, violation of probation, violation of protective order and assault.

Nave has pleaded guilty and awaits sentencing.

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

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 JAE HEE YANG, formerly known as Jae Hee Yang Kim, 58, of Englewood, N.J., was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to three years of probation for currency structuring and immigration offenses.  YANG was also ordered to forfeit $100,000 and perform 150 hours of community service.

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

According to court documents and statements made in court, YANG is the sole owner of Tip Top Nails, Inc., a nail salon located in Old Greenwich, Conn.  Between May and September 2009, YANG made 15 cash withdrawals in increments ranging from $4,000 to $8,000 and totaling $100,000, from a bank in New Jersey where she maintained a business checking account.  The currency was generated from the operation of Tip Top Nails.  At the time, YANG knew that the bank was required to issue a report for a currency transaction in excess of $10,000, and that by conducting her financial transactions in amounts less than $10,001, she intended to evade the transaction reporting requirements.

In addition, Tip Top Nails employed individuals who were unauthorized aliens not permitted to work in the U.S., paid the aliens in cash rather than by check as it did with legal employees, and transported the aliens between New York and Greenwich daily.

On August 28, 2012, YANG pleaded guilty to one count of structuring currency transactions to evade reporting requirements and one count of employing an unauthorized alien. 

This matter was investigated by the Internal Revenue Service – Criminal Investigation and Homeland Security Investigations.  The case 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, Tom Frost, Special Agent in Charge of the United States Postal Service Office of Inspector General, Major Fraud Investigations Division, Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, and John Collins, Acting Special Agent in Charge, Internal Revenue Service – Criminal Investigation, announced that former U.S. Postal Service employee ROBERT GIULIETTI, 57, of Cheshire, waived his right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to bribery, fraud and tax offenses.

According to court documents and statements made in court, GIULIETTI was a Facilities Project Manager for the U.S. Postal Service (USPS) at the USPS Northeast Facilities Office in Windsor, Conn.  GIULIETTI’s duties included recommending and selecting facilities improvement contractors, reviewing and approving bids received from those contractors for USPS work, certifying the completion of work by contractors and approving payment authorizations.  In pleading guilty, GIULIETTI admitted that he accepted approximately $89,000 from two contractors to direct inflated USPS facilities construction contracts to them.

Also, in approximately September 2009, GIULIETTI formed MGC LLC to do business with the USPS on projects on which he worked.  MGC was owned in name by GIULIETTI’s wife, and its business address was his home address in Cheshire.  Operating MGC from his USPS office in Windsor, GIULIETTI used his position to direct USPS contracts to MGC, to approve MGC’s work and to authorize payment to MGC for work.  After GIULIETTI directed USPS contracts to MGC, he engaged other contractors to perform the actual work involved with the project.  GIULIETTI generated almost a million dollars in profit by having MGC charge USPS more than MGC had to pay the contractors who performed the actual work.

Between November 2009 and November 2011, GIULIETTI directed more than 150 USPS facility projects to MGC, causing a loss to the USPS of approximately $982,064.68.

GIULIETTI also filed false federal income tax returns for the 2008 through 2011 tax years by fraudulently deducting payments from MGC to members of his family, and by not reporting the corrupt payments that he received.

“This defendant was a corrupt federal employee who perpetrated a multifaceted and brazen scheme that defrauded the Postal Service of nearly a million dollars,” stated U.S. Attorney Daly.  “I commend the USPS Office of Inspector General, the Connecticut FBI and IRS-Criminal Investigation for their excellent work in this investigation, which included the seizure of significant assets of approximately $740,000 in cash and a house in Cheshire.”

“The Office of Inspector General will continue to pursue instances in which contractors and employees attempt to take advantage of the Postal Service and commit fraud,” stated Special Agent in Charge Frost. “This should serve notice to all contractors and employees that such conduct, as perpetrated by Mr. Giulietti in this case, will be fully investigated.”

GIULIETTI was arrested on December 13, 2012.  Today, he pleaded guilty to one count of bribery of a public official, one count of wire fraud and one count of filing a false tax return. 

Judge Underhill scheduled sentencing for May 2, 2014, at which time GIULIETTI faces a maximum term of imprisonment of 38 years.

GIULIETTI has agreed to pay restitution in the amount of $882,064.68, and back taxes penalties and interest in the amount of $291,026.82.  The government is seeking the forfeiture of a residence GIULIETTI owns on South Pond Circle in Cheshire, and approximately $740,000 that has been seized from bank accounts.

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

This case is being investigated by the U.S. Postal Service, Office of Inspector General, the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.  The case is being prosecuted by Assistant U.S. Attorney Eric J. Glover.

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 a federal jury in New Haven today found New Haven residents RICHARD ANDERSON, also known as “Mayut” and “Porter,” 27, PHILIP BRYANT, also known as “Phat Phil” and “Fizzy,” 27, and ROBERT SANTOS, also known as “Scoot,” 31, guilty of narcotics distribution offenses.  The trial before Senior U.S. District Judge Ellen Bree Burns began on January 21.

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.  More than 100 individuals were charged as a result of the investigation.

According to the evidence at trial, ANDERSON, BRYANT and SANTOS conspired with Kevin Wilson, also known as “Nature,” to distribute narcotics, primarily in the Dwight/Chapel area of New Haven.

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.

BRYANT was intercepted on multiple occasions arranging heroin and cocaine transactions with Wilson.  In May 2011, BRYANT also provided Wilson with 26.3 grams of crack cocaine that Wilson, in turn, sold to two individuals who were working with law enforcement.  In addition, trial testimony established that BRYANT, Wilson and other co-defendants shared a stash of firearms to use in furtherance of their drug trafficking activity.

SANTOS partnered with Wilson, pooling money to acquire large quantities of heroin from a New York-based supplier, and then distributing the drug in greater New Haven.

ANDERSON was convicted of one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack”), which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.  BRYANT was convicted of one count of conspiracy to possess with intent to distribute, and to distribute, cocaine, cocaine base and heroin, which carries a maximum term of imprisonment of 20 years.  SANTOS was convicted of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.  Based on his criminal history, SANTOS faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.

Judge Burns scheduled sentencing for all three defendants for June 3, 2014.

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

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

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

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 that a federal grand jury in Hartford has returned a six-count indictment charging PAUL GOTTA, 55, formerly of East Windsor, with firearms, explosives and obstruction offenses.  The indictment was returned on January 30, 2014, and unsealed today during GOTTA’s arraignment before U.S. Magistrate Judge Donna F. Martinez in Hartford.  GOTTA entered a plea of not guilty.

According to the indictment and statements made in court, between July and December 2012, GOTTA is alleged to have assisted a juvenile in acquiring a handgun, thousands of rounds of ammunition and explosive material, and also assisted in the manufacture of a pipe bomb.  It is further alleged that in May and June 2013, GOTTA attempted to obstruct the investigation of his involvement in this matter by making false statements to ATF special agents.

The indictment charges GOTTA with one count of aiding and abetting the unlawful transport of a firearm in interstate commerce, which carries a maximum term of imprisonment of five years; one count of aiding and abetting the possession of a handgun by a juvenile, which carries a maximum term of imprisonment of one year; one count of aiding and abetting the possession of ammunition by a juvenile, which carries a maximum term of imprisonment of one year; one count of distribution of explosive material to an individual under the age of 21, which carries a maximum term of imprisonment of 10 years; one count of aiding and abetting the attempted manufacture of a pipe bomb, which carries a maximum term of imprisonment of 10 years and one count of obstruction of justice, which carries a maximum term of imprisonment of five years.

GOTTA was arrested on a federal criminal complaint on July 19, 2013, and is currently confined to his home in Bridgeport while released on bond.

This matter is assigned to U.S. District Judge Robert N. Chatigny in Hartford.

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 case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Windsor Police Department, and is being prosecuted by Assistant U.S. Attorney Robert M. Spector.

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 GARI-MARK THOMAS, 38, of Michigan, formerly of Norwalk, waived his right to indictment and pleaded guilty today before U.S. Magistrate Judge Thomas P. Smith in Hartford to one count of conspiracy to defraud the Federal Housing Authority through a mortgage fraud scheme.

According to court documents and statements made in court, in March 2008, THOMAS, while serving as a loan officer for Suntrust Mortgage, assisted his girlfriend in obtaining a residential real estate loan to purchase a property at 510 E. Main Street in Stratford by submitting fraudulent information to the lender and the Federal Housing Authority (FHA).  The fraudulent information included a false claim that his girlfriend was employed with a tax and accounting company, false paystubs, false IRS tax forms and phony bank statements to make it appear that she had a bank account with assets in it, when in fact she had no such assets.

Based on the fraudulent loan documentation, the loan was issued by the lender and insured by the FHA.  THOMAS’ girlfriend ultimately defaulted on the loan, causing a loss of approximately $184,000 to the FHA.

THOMAS is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on April 23, 2014, at which time THOMAS faces a maximum term of imprisonment of five years.

This matter is being investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development, Office of Inspector General.  The case is being prosecuted by Assistant U.S. Attorney Eric J. Glover.

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 JESUS F. GONZALEZ, SR., 37, of Waterbury, pleaded guilty today before U.S. District Judge Vanessa L. Bryant in Hartford to one count of production of child pornography.

According to court documents and statements made in court, GONZALEZ had sexual intercourse with a minor female victim on several occasions between approximately February 2012 and August 2012.  On approximately August 9, 2012, GONZALEZ used his cell phone to take multiple pictures of the victim, naked, in sexually explicit positions.  GONZALEZ then maintained the pictures on his phone.  The victim was approximately 14 years old at the time the sexually explicit pictures were taken.

Judge Bryant has scheduled sentencing for April 23, 2014, at which time GONZALEZ faces a mandatory minimum term of imprisonment of 15 years, a maximum term of imprisonment of 30 years and a fine of up to $250,000. 

GONZALEZ has been detained in state custody since his arrest on August 11, 2012 on related state charges.

This matter is being investigated by the Waterbury Police Department, the Federal Bureau of Investigation, and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies.  The Connecticut State’s Attorney’s Office in Waterbury also provided critical assistance in this investigation.  The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.

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

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

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 BENJAMIN GREEN, III, 45, of Stratford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 51 months of imprisonment, followed by three years of supervised release, for stealing more than $600,000 through a corrupt tax refund scheme.

On November 12, 2013, after a three-day trial, GREEN was convicted of one count of making a false claim against the United States, and one count of attempting to obstruct the due administration of the internal revenue laws.  According to the evidence presented at trial, in March 2009, GREEN filed an Individual Income Tax Return for the 2008 tax year with the IRS.  On the return, GREEN asserted the fraudulent “Original Issue Discount” (“OID”) tax scheme, in which taxpayers falsely claim significant amounts of OID interest income and federal tax withholding on their federal tax returns.  The object of the OID tax scheme is to obtain large tax refunds from the U.S. Treasury, which is done by fraudulently claiming significant federal tax withholdings that exceed the smaller amount of tax due on the falsely claimed income.

On his federal tax return, GREEN falsely claimed to have received $920,063 in taxable interest income, and to have $929,702 of federal income tax withholdings for the 2008 tax year. Based on this false information, GREEN claimed a refund from the IRS in the amount of $616,434.  The IRS erroneously issued a $616,434 tax refund to GREEN based on his fraudulent tax return.  After receiving the refund, GREEN spent or dispersed almost all of the funds within months by taking trips to Hawaii and other locations, shopping at high-end retail-stores, paying off his mortgage and other loans, making improvements to his home, and giving money to family members.

When the IRS tried to collect the erroneously issued refund, GREEN undertook a course of conduct to inhibit the IRS’s efforts to recover the money, including sending frivolous correspondence to the IRS, hiding real property in the name of a nominee entity to impede the IRS’s collection efforts, and falsely complaining that the IRS had commenced unauthorized collection and enforcement actions against him.

The IRS was eventually able to recover a portion of the erroneously issued refund through wage levies, levies on bank accounts, and seizure of GREEN’s personal property.

Today, Judge Bryant ordered GREEN to pay $582,074.50 in restitution, which reflects the remaining balance of the money GREEN stole, plus interest.

This matter was investigated by the Internal Revenue Service – Criminal Investigation, and was prosecuted by Tax Division Trial Attorney Sean Beaty and Assistant U.S. Attorney Susan Wines.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BAYOHAN MANGUAL, also known as “YG,” 29, of Willimantic and Hartford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 48 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.

According to court documents and statements made in court, law enforcement identified MANGUAL and Errol Santouse, also known as “Twiggy” and “Sticky,” as close associates who were distributing narcotics in the Willimantic area.  On five occasions in April and May 2012, Santouse sold crack in quantities ranging from 3.5 grams to 42 grams to a cooperating witness and an undercover ATF agent.  On two occasions in June 2012, an individual working with law enforcement purchased distribution quantities of crack from MANGUAL.

On June 21, 2012, law enforcement searched a Willimantic residence connected to MANGUAL and seized a quantity of heroin packaged for distribution, two digital scales, narcotics packaging materials and $3,910 in cash.

MANGUAL has been detained since his arrest on June 28, 2012.  On May 31, 2013, he pleaded guilty to one count of possession with intent to distribute and distribution of cocaine base (“crack cocaine”).

Errol Santouse also pleaded guilty and, on November 27, 2012, he was sentenced to 60 months of imprisonment.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Hartford Police Department and the Willimantic Police Department.  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, announced that SEAN THOMPSON, 36, of Bridgeport, was sentenced today by U.S. District Stefan R. Underhill in Bridgeport to approximately one month of imprisonment, time already served, followed by five years of supervised release, the first eight months of which THOMPSON must spend in home confinement, for his role in a southwestern Connecticut narcotics trafficking ring.  THOMPSON was also ordered to perform 100 hours of community service during his supervised release.

This matter stems from “Operation There It Is,” a six-month wiretap investigation spearheaded by the Drug Enforcement Administration and the Stamford Police Department’s Narcotics and Organized Crime Squad.  As a result of the investigation, a total of 20 individuals have been charged in federal court with various narcotics offenses related to the distribution of cocaine and crack cocaine in Bridgeport, Norwalk and Stamford.  During the investigation, law enforcement officers seized more than $100,000 in cash, 500 grams of cocaine, 350 grams of crack cocaine, several vehicles and jewelry.

According to court documents and statements made in court, between December 2012 and February 2013, THOMPSON regularly purchased ounce quantities of powder cocaine from a co-defendant and distributed it in smaller amounts to customers in the Bridgeport area.

This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force – which is composed of members of the Bridgeport, Stamford, Norwalk, Milford, Westport, and Stratford Police Departments, and the Connecticut State Police – and the Stamford Police Department’s Narcotics and Organized Crime Squad.  The United States Marshals Service also assisted in the arrests of several of the defendants.

This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Robert Spector.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK MISSINO, also known as “Mark Houston” and “Mark Serano,” 46, formerly of Waterford, pleaded guilty today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport to one count of possession of firearms by a previously convicted felon.

According to court documents and statements made in court, on November 13, 2010, MISSINO and Bernard McAllister possessed 19 firearms that they had stolen during a string of residential burglaries that took place between 2008 and 2010.  The firearms were discovered in an East Lyme storage locker with more than 8,000 other items believed to have been taken during the burglaries. 

Prior to November 13, 2010, MISSINO had been convicted of multiple felony offenses in Connecticut and Florida, including convictions for larceny, burglary, robbery, grand theft and escape.  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.

MISSINO, who is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on April 24, 2014, is subject to the Armed Career Criminal Act, a federal law imposing severe penalties for firearm or ammunition possession by persons who have been convicted of at least three violent felonies or serious drug offenses.  As an Armed Career Criminal, MISSINO faces a minimum term of imprisonment of 15 years and a maximum term of imprisonment of life.

McAllister, 43, formerly of Lisbon, pleaded guilty to the same charge on June 6, 2013, and awaits sentencing.

MISSINO and McAllister have been detained since November 18, 2010, when they were arrested in Massachusetts.  They also have pleaded guilty in state court to several charges related to the series of residential burglaries.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police, the Massachusetts State Police, and the East Lyme, Greenwich, Madison, Guilford, Glastonbury, North Branford and Wallingford Police Departments.  The case is being prosecuted by Assistant U.S. Attorneys Jonathan S. Freimann and Robert M. Spector.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JAMES LOUIS COSTANZO, 35, of Ansonia, and BRIAN EARL, 39, of North Haven, were arrested last week on federal charges related to the illegal distribution of prescription narcotics.

According to allegations contained in court documents, in May 2013, the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Ansonia Police Department initiated an investigation into COSTANZO, who had been identified as an illegal distributor of narcotic pharmaceuticals.  The investigation, which included multiple controlled purchases of oxycodone and the use of electronic surveillance, revealed that COSTANZO sold prescription narcotics to numerous customers from his Dwight Street residence.  The investigation further revealed that EARL supplied COSTANZO with large quantities of oxycodone and other prescription narcotics, and also sold drugs to his own customers.

On January 23, COSTANZO and EARL were arrested on criminal complaints charging each with conspiracy to distribute oxycodone and possession with intent to distribute oxycodone.

At the time of COSTANZO’s arrest, he possessed a 9mm handgun that was loaded with hollow-point ammunition, and $439 in cash.  A subsequent search of his residence revealed approximately 600 oxycodone pills, four firearms, ammunition, approximately $5,500 in cash, and more than 50 stored-value cards.

At the time of EARL’s arrest, he possessed $2,557 in cash, and a search of his North Haven residence revealed approximately 11,000 prescription pills, including Oxycontin, oxycodone and oxymorphone.

The charges of conspiracy to distribute oxycodone and possession with intent to distribute oxycodone carry a maximum term of imprisonment of 20 years and a fine of up to $1 million.

COSTANZO, who has been detained since his arrest, appeared today in Bridgeport federal court for a detention hearing.  The hearing was continued until February 7.

EARL is released on a $150,000 bond.

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

This ongoing investigation is being conducted by the DEA’s New Haven Tactical Diversion Squad, with the assistance of the Ansonia Police Department and the Fairfield Police Department.  The case is being prosecuted by Assistant U.S. Attorneys David X. Sullivan and Michael E. Runowicz.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAWN M. GUARINO, also known as Dawn DeCapua Guarino, 54, of Branford, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of structuring currency transactions to evade reporting requirements.

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

According to court documents and statements made in court, over the course of 18 days in October and November 2009, GUARINO cashed 18 checks made payable to her in the amount of $9,900 and totaling $178,200.  The transactions occurred at 13 different branches of two banks in eight towns in the New Haven area.  The checks, which were from her attorney, represented GUARINO’s portion of a settlement of a Connecticut civil lawsuit stemming from an automobile accident.  At the time, GUARINO knew that the bank was required to issue a report for a currency transaction in excess of $10,000, and her intention was to evade the transaction reporting requirements.

Judge Underhill scheduled sentencing for April 24, 2014, at which time GUARINO faces a maximum term of imprisonment of five years and a fine of up to $250,000.  GUARINO also has agreed to forfeit $13,000.

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

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that STEPHEN JOYCE, 45, of Stamford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 12 months of imprisonment, followed by three years of supervised release, for operating an illegal sports gambling business.  JOYCE was also order to forfeit $175,000 and a pay a $3,000 fine.

According to court documents and statements made in court, between January 2008 and August 2011, JOYCE led a lucrative illegal sports bookmaking operation in Stamford that involved at least five other bookmakers.

On July 27, 2011, investigators conducted a court-authorized search of JOYCE’s Stamford residence and seized extensive gambling records, a laptop computer and other items.

On September 24, 2013, JOYCE pleaded guilty to one count of operating an illegal gambling business.

This matter was investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police.  This case was prosecuted by Assistant U.S. Attorney Hal Chen.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DOUGLAS CORBIN, 52,of Stamford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 21 months of imprisonment, followed by three years of supervised release, for his involvement in organized crime-controlled illegal gambling businesses.  CORBIN was also ordered to forfeit $100,000.

According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, CORBIN, Dean DePreta, Richard Uva and 17 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs.  As part of the conspiracy, DePreta and Uva were involved in the collection and payment of “tribute” payments to Gambino organized crime family associates in New York.

The investigation, which included the use of court-authorized wiretaps, revealed that CORBIN was involved in a large-scale sports bookmaking operation in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica.

FBI analysis of the sports-betting web site utilized by the defendants determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.

In addition, CORBIN and others, operated a card gambling club at 514 Glenbrook Road in Stamford, where a house percentage, commonly referred to as a “rake,” was collected from every hand played.

On June 20, 2013, CORBIN pleaded guilty to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO).

DePreta and Uva pleaded guilty to the same charge.  On October 9, 2013, DePreta was sentenced to 71 months of imprisonment and ordered to forfeit $300,000.  On October 24, 2013, Uva was sentenced to 46 months of imprisonment and ordered to forfeit $250,000.

This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police.  This case is being prosecuted by Assistant U.S. Attorneys Hal Chen and Peter Jongbloed.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALISHA FRASER, 27, of Brooklyn, N.Y., was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to three years of supervised release for passing counterfeit U.S. currency at a store in North Haven.

According to court documents and statements made in court, on December 13, 2010, FRASER used nine counterfeit $100 bills to purchase an iPad from a store in North Haven.  Later that day, she returned the iPad and received genuine U.S. currency.  Two days later, FRASER purchased two iPods at the same store using five $100 counterfeit bills.

FRASER was arrested on February 25, 2013, and was detained for approximately two weeks before being released on bond.  She pleaded guilty to the offense on June 6, 2013.

This matter was investigated by the United States Secret Service, with the assistance of the police departments of Windsor, Waterford, South Windsor, Naugatuck and North Attleborough (Mass.), and the Connecticut State Police.  The case was prosecuted by Assistant U.S. Attorney Felice Duffy.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARC JEAN, 44, a citizen of Haiti residing in Norwich, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 30 months of imprisonment, followed by three years of supervised release, for his role in an extensive mortgage fraud scheme.

According to court documents and statements made in court, between 2006 and 2010, Syed Babar of New London orchestrated a scheme to obtain millions of dollars in residential real estate loans through the use of sham sales contracts, false loan applications and fraudulent property appraisals.  The scheme involved nearly 30 properties in Connecticut, most of which ended up in foreclosure, and resulted in a loss of more than $4 million to various private lenders and to the Federal Housing Administration, which insured many of the loans that were fraudulently obtained.

JEAN conspired with Babar and others and was paid tens of thousands of dollars for acting as a straw buyer in a total of four residential property sales in New London, New Britain and Meriden.  At Babar’s direction, JEAN accepted deposits of proceeds from the conspiracy into his bank account in order to show that he made more money than he actually did and that he had cash available for the real estate transactions.  In connection with the fraudulent real estate transactions, JEAN provided fictitious documentation and made false statements to lenders, including that he intended to occupy the property as his primary residence, that he earned income from a rental property, that he had provided cash for the transaction, and that he is was a U.S. citizen.

The loss suffered by the lenders for the four properties was more than $725,000.  Judge Thompson ordered JEAN to pay restitution in the amount of $688,852.74.

On July 9, 2013, JEAN pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud.

Fifteen individuals have been convicted in connection with this scheme.  On November 28, 2011, Syed Babar was sentenced to 120 months of imprisonment.

This matter was investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development, Office of Inspector General.  The case was prosecuted by Assistant U.S. Attorneys Eric Glover, Susan Wines and Liam Brennan.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SENTRELL BOOKHARDT, 27, of Norwalk, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by three years of supervised release, for possessing a machine gun.

According to court documents and statements made in court, at approximately 5:00 p.m. on January 26, 2013, BOOKHARDT ran from a Norwalk Police officer in the Meadow Gardens Housing Complex in Norwalk and discarded a blue backpack.  Examination of the backpack revealed a black, steel machine gun missing its stock, and an extended magazine loaded with 27 rounds of ammunition.  BOOKHARDT was arrested later that evening.

BOOKHARDT has been detained in state custody since his arrest.  On October 3, 2013, he pleaded guilty to one count of possession of an unregistered machine gun.

BOOKHARDT’s criminal history includes three convictions stemming from the unlawful possession of firearms.

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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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WINSTON SHILLINGFORD, 56, and his wife, MARLEEN SHILLINGFORD, 47, of Nesconset, N.Y., were sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to prison terms of 48 months and 36 months, respectively, for operating a multimillion-dollar mortgage fraud scheme that involved more than 40 properties in Bridgeport, Conn.  Both defendants will serve three years of supervised release upon their release from prison.

According to court documents and statements made in court, the Shillingfords were involved in the operation of Waikele Properties Corp., a real estate company with offices in Bridgeport and Garden City, N.Y.  From approximately 2001 to August 2011, the Shillingfords, Robert Ilunga and others conspired to obtain fraudulent mortgages for the purchase of more than 40 multi-family properties in Bridgeport.  As part of the scheme, the Shillingfords and their co-conspirators purchased existing multi-family houses, and vacant parcels of land and erected new houses on them to sell.  The co-conspirators recruited individuals to purchase the properties, acted as the buyers’ real estate agent and assisted the buyers in applying for residential mortgage loans to purchase the houses.  The co-conspirators then prepared loan applications for the buyers that included fraudulent information concerning, among other things, the buyers’ employment, income, assets and liabilities, previous property ownership and intention to make the properties their primary residences.  The co-conspirators also provided fraudulent supporting documentation with the loan applications, including false letters from fictitious employers, false earnings statements, and fraudulent bank records.

After the loans were approved, the illicit proceeds of the scheme were wired into the Waikele Properties bank account and then transferred to members of the conspiracy.  Some of the proceeds also were used to continue the mortgage fraud scheme.

Contrary to the representations made on the loan applications, several straw purchasers never occupied the houses as their primary residences and subsequently defaulted on the loans.

The parties have agreed that victim financial institutions suffered losses of between $2.5 million and $7 million as a result of this scheme.  A restitution order will be issued after further court proceedings.

In October 2011, Winston and Marleen Shillingford each pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.

Robert Ilunga, of Naugatuck, pleaded guilty to the same charges and is scheduled to be sentenced on January 31.

This investigation is being conducted by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, the U.S. Department of Housing and Urban Development’s Office of Inspector General and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).

This case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and David T. Huang.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that NILDA BERMUDEZ, 54, of Hartford, was sentenced last week in Hartford federal court for illegally receiving nearly $200,000 in Social Security disability benefits.  On January 22, U.S. District Judge Vanessa L. Bryant sentenced BERMUDEZ to six months of imprisonment, followed by six months of home confinement and two years of supervised release.

According to court documents and statements made in court, between 1988 and 1992, BERMUDEZ began receiving Social Security Administration Disability Insurance Benefits (DIB) based on a medical condition.  In 1993, BERMUDEZ began working as a receptionist at law firm.  After the Social Security Administration advised BERMUDEZ that she no longer would qualify for DIB benefits as a result of her income from the firm, BERMUDEZ entered false information into her employer’s records.  As a result, her weekly paychecks were made out in another person’s name.  Each year, BERMUDEZ concealed her fraud by preparing the other person’s tax returns, which reported the income BERMUDEZ received from the law firm as income earned by the other person.

From 1993 to April 2013, BERMUDEZ received approximately $199,330 in DIB payments.  During this time, she also periodically filed forms with the Social Security Administration reaffirming her claim for DIB benefits.

BERMUDEZ was ordered to pay full restitution.

On September 23, 2013, BERMUDEZ waived her right to indictment and pleaded guilty to one count of theft of government property.

This matter was investigated by the Office of the Inspector General for the Social Security Administration and was prosecuted by Assistant U.S. Attorney Anastasia E. King.      

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JUAN JOSE ALVAREZ DE LUGO AZPURUA, 54, of Branford, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 48 months of imprisonment, followed by three years of supervised release, for operating a real estate investment scheme that defrauded individuals out of more than $5 million.

According to court documents and statements made in court, ALVAREZ DE LUGO, who held himself out as the president of multiple successful businesses specializing in real estate development programs, represented to victim investors that his business was acquiring houses from the City of New Haven and from local banks.  Investors were told that invested funds would be used to remodel the houses, which would then be sold.  At times, ALVAREZ DE LUGO represented to victim investors that he was working jointly with New Haven on the Livable City Initiative, and he stated that the remodeled homes would be used and occupied by low income families that secured financing from a local bank and State of Connecticut agencies.  ALVAREZ DE LUGO also told investors that he was developing a senior housing facility in New Haven.  He also provided investors with Promissory Notes and other documentation that promised to pay investors interest of 20 percent per year, and a full return of principal in one year.

ALVAREZ DE LUGO has admitted that these representations were false, and that he did not invest his victims’ money as promised.  He did not own and develop the large number of properties he represented to investors, and he had no relationship with the City of New Haven or the State of Connecticut. 

Between approximately 2005 and 2010, ALVAREZ DE LUGO defrauded approximately 30 victims out of more than $5 million.  He spent investment money on his own personal expenses, including improving his Branford residence with a swimming pool and backyard patio, and to pay his children’s school and college tuition.

ALVAREZ DE LUGO was ordered to pay restitution in the amount of $5,161,083.

ALVAREZ DE LUGO has been detained since his arrest on January 18, 2013.  On September 18, 2013, he pleaded guilty to one count of wire fraud.

ALVAREZ DE LUGO’s three companies, Arquin Decoraciones LLC, Arquin Development LLC, and Juko Investments, LLC, and the investment instruments he provided, were never registered with the Securities and Exchange Commission or Connecticut Department of Banking.

This matter was investigated by the Federal Bureau of Investigation with the assistance of the State of Connecticut Department of Banking.  The case was prosecuted by Assistant U.S. Attorney Michael S. McGarry.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that VICTOR RAMOS, 32, of Waterbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 102 months of imprisonment, followed by three years of supervised release, for robbing banks in Waterbury and New Britain.

According to court documents and statements made in court, on February 1, 2013, RAMOS, Jose Rivera and others committed an armed robbery of the TD Bank located on Hartford Road in New Britain, stealing approximately $24,480.  On February 21, 2013, RAMOS, Rivera and others committed an armed robbery of the TD Bank located on North Main Street in Waterbury, stealing approximately $5,319.  RAMOS carried a loaded firearm during both robberies and, during the Waterbury robbery, Rivera physically assaulted a customer causing her injuries.

RAMOS and Rivera also violently stole $100 from a small business in Waterbury on January 28, 2013.  During this robbery, RAMOS twice used a Taser on a victim.

RAMOS has been detained since his arrest on June 5, 2013.  On August 19, 2013, he pleaded guilty to one count of bank robbery.

Rivera pleaded guilty to the same charge and, on October 30, 2013, he was sentenced to 117 months of imprisonment.

This matter is being investigated by the Federal Bureau of Investigation, the Waterbury Police Department and the New Britain Police Department.  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, today announced that a federal grand jury sitting in Bridgeport returned an indictment yesterday charging ROBBIE ROSSI, 41, formerly of Massachusetts, with two counts of mail fraud arising from a scheme to fraudulently obtain disaster relief funds from the Federal Emergency Management Agency (FEMA).

As alleged in the indictment and other court documents, a severe storm and tornado outbreak struck central Massachusetts on June 1, 2011.  After a Presidential Declaration authorized FEMA to provide disaster relief funds to local residents, ROSSI obtained more than $12,000 in disaster relief benefits by falsely representing that he lived at a residence on New Bridge Street in West Springfield, Mass., that had been damaged by the storm.  As part of the scheme, ROSSI provided FEMA with false documentation of rent payments he claimed to have paid in the months following the storm.  Between August 2011 and April 2013, ROSSI is alleged to have received payments at various addresses that he supplied to FEMA, including a residence in Enfield, Conn.

ROSSI was arrested on January 14 in Las Vegas pursuant to a federal arrest warrant that was based on the conduct charged in the indictment.  He is detained pending his transport to Connecticut to face the charges.

If convicted, ROSSI faces a maximum term of imprisonment of 30 years on each count.

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

This case is being investigated by the Office of the Inspector General of the U.S. Department of Homeland Security and is being prosecuted by Assistant U.S. Attorney David J. Sheldon.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL BEVERLY, 37, formerly of New Haven, pleaded guilty today before Senior U.S. District Judge Ellen Bree Burns in New Haven to one count of escape from federal custody. 

According to court documents and statements made in court, on January 29, 2009, BEVERLY received a federal sentence of 77 months of imprisonment for possession of ammunition by a convicted felon.  On June 17, 2013, BEVERLY escaped from the Watkinson House Residential Reentry Center in Hartford where he was completing his sentence.  He was apprehended approximately two weeks later by the U.S. Marshals Service and returned to custody. 

Judge Burns has scheduled sentencing for March 4, 2014, at which time BEVERLY faces a maximum term of imprisonment of five years.

This matter was investigated by the U.S. Marshals Service and the New Haven Police Department, and 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 JAMES DICKERSON, also known as “Jim Jim,” 30, of New Haven, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 168 months of imprisonment, followed by eight years of supervised release, for his role in a crack cocaine distribution ring.  On April 25, 2013, a after a four-day trial, DICKERSON was found guilty of conspiracy to distribute 28 grams or more of cocaine base (“crack cocaine”) and distribution of crack cocaine. 

According to statements made in court and the evidence disclosed during the trial, this matter stems from a joint law enforcement investigation conducted in 2010 by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department and the Hamden Police Department.  Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug trafficking organization that was headed by Joseph Jackson, also known as “Mighty” and “M.I.,” and centered in the Newhallville section of New Haven and Hamden.  The investigation revealed that Jackson used “young boys,” some of whom were still in high school, to distribute large quantities of crack cocaine.

In July and August 2010, DICKERSON was regularly intercepted over the wiretap arranging to meet one of Jackson’s associates at locations in Newhallville to purchase two “8-balls” (7 grams) of crack cocaine each time.  DICKERSON then divided the crack into $20 baggies, which he sold to his own customers.
On October 13, 2010, DICKERSON was videotaped selling $300 worth of crack cocaine to an undercover police officer.

DICKERSON, whose criminal history includes four felony drug convictions, has been detained since his arrest on November 16, 2010.

Forty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation.  All have been convicted. 

Joseph Jackson pleaded guilty and, on June 13, 2013, he was sentenced to 300 months of imprisonment.

This matter was investigated by the FBI New Haven Safe Streets Task Force (composed of members of the New Haven, Milford and Hamden Police Departments and the Connecticut Department of Correction), the Drug Enforcement Administration's New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments.  The United States Marshals Service also assisted the investigation.

This matter was prosecuted by Assistant U.S. Attorneys Robert M. Spector and Christopher M. Mattei.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ROBERT PONTE, 59, of Denville, N.J., formerly of Stonington, was sentenced late yesterday by U.S. District Judge Robert N. Chatigny in Hartford to 90 months of imprisonment, followed by five years of supervised release, for his role in two investment schemes that caused a loss of more than $25 million to individuals and lending institutions.

According to court documents and statements made in court, between approximately June 2005 and April 2008, PONTE and Robert Rivernider of Wellington, Fla., conspired to defraud several victim investors by misrepresenting that the investors’ monies would be invested in legitimate, high-return investments.  As part of the conspiracy, PONTE and Rivernider used the Internet and other means to market a debt payment program typically called “No More Bills” through The Hudson Group, an entity that Ponte established.  With the “No More Bills” program, PONTE and Rivernider sought victim investors to invest monies with them, funds that the victim investors typically would raise through home equity lines of credit, or would borrow from 401K plans.

PONTE and Rivernider misrepresented that investors would receive a substantial investment return, typically a monthly repayment on the invested  monies of approximately seven to ten percent of their initial investment; that the returns would continue for a period substantially longer than needed to recoup the initial investment and result in a return substantially greater than the initial investment; that the victim investors’ existing debts and  home equity lines of credit, if taken out to fund the investment, would be repaid in full from investment returns, and that the victim investors’ monies were being invested offshore in legitimate high-return investments, including investments in foreign currency exchanges, hedge funds, or other high-yield ventures.  Instead of investing the funds as promised, PONTE and Rivernider used the funds to pay their and their extended families’ living expenses, as well as the preexisting debts of other investors.

Through this first scheme, investors lost approximately $2.2 million.

In a second scheme, between approximately November 2006 and December 2007, PONTE, Rivernider and Loretta Seneca of Boynton Beach, Fla., engaged in a real estate investment conspiracy that defrauded both lenders and individuals they recruited.  Seneca is Rivernider’s sister.  As part of the scheme, PONTE, Rivernider and others recruited victim borrowers to take out financing to purchase various investment properties, primarily in Tennessee and Florida, with financing from victim lenders.  PONTE and Rivernider typically represented to borrowers that these properties would be passive investments and that PONTE and Rivernider would be responsible for the details of the purchase, rental, maintenance and payment of the mortgages on the properties.  The co-conspirators made false representations to the victim borrowers that PONTE and Rivernider would arrange for the purchase of the properties by the borrowers at markedly discounted values.  In fact, PONTE and Rivernider frequently marked up the purchase price of the properties to the victim borrowers, often by as much as 25 percent, without disclosing the increase in the purchase price.  PONTE, Rivernider and others also falsely represented that the investment properties would return to the victim borrowers sufficient monies to cover the carrying costs, as well as reduce the borrowers’ other debt burden.

PONTE, Rivernider, Seneca and others victimized lenders by making multiple false representations in loan applications and other documents provided to the victim lenders.  Seneca, a trained mortgage broker, was actively involved in the real estate transactions, including organizing and gathering many of the materials needed by the victim lenders, gathering certain information from the victim borrowers, providing certain comparables based on properties brokered by Rivernider to be used for purportedly independent appraisals, and a range of other background tasks necessary for the lenders to make the loans.

This scheme involved at least 100 properties, and the investigation has revealed that the victim lending institutions suffered more than $23 million in losses.

Judge Chatigny will issue an order within 90 days requiring PONTE to pay full restitution.

On February 25, 2013, Rivernider pleaded guilty to two counts of conspiracy and 16 counts of wire fraud, and Seneca pleaded guilty to one count of conspiracy and one count of wire fraud.  On March 1, 2013, PONTE pleaded guilty to two counts of conspiracy, 14 counts of wire fraud and two counts of tax evasion.  All three guilty pleas occurred during the middle of a trial.

On December 18, 2013, Rivernider was sentenced to 144 months of imprisonment and five years of supervised release.  Seneca awaits sentencing.

This matter has been investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.  The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Christopher W. Schmeisser.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, announced that former East Haven Police Officer DENNIS SPAULDING, 30, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by one year of supervised release, for violating the civil rights of members of the East Haven community.

“Dennis Spaulding repeatedly violated the civil rights of Latino members of the East Haven community,” said U.S. Attorney Deirdre Daly.  “He arrested people for no good reason, used cruel and excessive force causing physical injuries and executed illegal searches.  His actions assaulted, intimidated, demeaned and humiliated decent and hardworking people who came to fear their own police department.  Today’s sentence properly reflects that this defendant abused vulnerable victims, undermined the legitimacy of the East Haven Police Department and damaged the public’s trust in law enforcement.  This is a difficult day, but we are reminded that every day the vast majority of officers in East Haven and throughout this country serve their communities bravely and honorably.  As this case nears the end, we remain hopeful that the East Haven community will continue to heal and their police department will continue to rebuild.”

“Spaulding’s efforts to harass, intimidate, and humiliate members of the East Haven community violated the rights afforded to them by our Constitution,” said FBI Assistant Director-in-Charge Venizelos.  “Furthermore, his unethical behavior and illegal conduct threatened the character of a law enforcement community whose members take an oath to protect and serve with honor and integrity. Today’s sentencing is a step forward in restoring the public’s trust and a reminder that this type of dishonorable behavior will not go unpunished.”

This matter stems from a criminal investigation into members of the East Haven Police Department using excessive force during arrests, conducting unconstitutional searches and seizures, and filing false police reports.  As a result of the investigation, SPAULDING, Sergeant John Miller and Officers Jason Zullo and David Cari were charged with various civil rights offenses.

According to the evidence presented during the trial of SPAULDING and David Cari, from approximately 2007 through 2011, SPAULDING conspired to injure, threaten, and intimidate various members of the East Haven community in violation of their Constitutional rights.  SPAULDING and other members of the East Haven Police Department maintained and perpetuated an environment where the use of unreasonable force and unreasonable searches and seizures was tolerated and encouraged.  SPAULDING engaged in unlawful arrests and searches, including the baseless arrests of a Catholic priest and several Latinos who lived or worked in the community.  Additionally, SPAULDING used excessive force during an arrest when the victim was unarmed, neither resisting nor interfering with the police.  Certain victims were particularly vulnerable because they were undocumented aliens and thus unlikely to raise objection to the abuse.

The evidence at trial further revealed that SPAULDING intimidated, harassed and humiliated members of the Latino community and their advocates, and conducted unreasonable and illegal searches at Latino-owned businesses.  Trial testimony established that in November 2008, SPAULDING used excessive force against an individual in the parking lot of a Latino-owned restaurant and bar.  SPAULDING then arrested the individual under false pretenses to cover-up the assault and prepared a false report to justify the false arrest.  Later, in January 2009 in the same parking lot, SPAULDING and another officer arrested three individuals under false pretenses.  SPAULDING also prepared a false report to justify these arrests.

In February 2009, SPAULDING and David Cari illegally searched a vehicle parked outside of a Latino-owned grocery store.  Inside the store, David Cari then arrested a Catholic priest, who is also an advocate for Latinos, on false pretenses.  The officers then conducted an illegal search of the back room of the store in an effort to unlawfully seize the store’s video recording equipment.  In the days following the arrest, Cari drafted various false versions of an arrest report to cover up the false arrest of the religious leader.

On October 21, 2013, SPAULDING was found guilty of one count of conspiracy against rights, one count of use of unreasonable force by a law enforcement officer, two counts of deprivation of rights for making arrests without probable cause, and two counts of obstruction of a federal investigation for preparing false reports to justify the false arrests.

SPAULDING, who has been released on a $300,000 bond since his arrest on January 24, 2012, was ordered to report to prison on March 4.

Cari was found guilty of one count of conspiracy against rights, one count of deprivation of rights for making an arrest without probable cause, and one count of obstruction of a federal investigation for preparing a false report.  On January 21, 2014, he was sentenced to 30 months of imprisonment.

On October 23, 2012, Jason Zullo pleaded guilty to one count of obstruction stemming from his filing of a false police report in order to prevent a possible excessive force investigation.  On December 16, 2013, he was sentenced to 24 months of imprisonment.

On September 21, 2012, John Miller pleaded guilty to one count of violating an individual’s civil rights by using unreasonable force during the course of an arrest.  He awaits sentencing. 

This matter has been investigated by the Civil Rights Squad of the FBI’s New York Field Office, and is being prosecuted by Assistant U.S. Attorney Krishna R. Patel and Senior Litigation Counsel Richard J. Schechter.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CRAIG A. STANLAND, 40, of Stamford, waived his right to indictment and pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of mail fraud arising from a scheme in which STANLAND obtained hundreds of computer networking parts from Cisco Systems, Inc. through the use of multiple aliases, business entities, and post office boxes and shipping addresses.

According to court documents and statements made in court, from October 2012 until he was arrested on October 1, 2013, STANLAND operated a service contract fraud scheme in which he purchased or controlled approximately 18 service contracts for Cisco networking parts.  Pursuant to these service contracts, STANLAND – using the aliases “Alan Johnston” of Opex Solutions, “Kyle Booker” of KLB Networks, “Steve Jones” of SHO Networks, “Robert Johnson” of Adaptations, and “Paul Smith” of PS Solutions, among others – made hundreds of false service requests to Cisco to replace purportedly defective computer networking parts.  Based on these requests, Cisco shipped replacement parts to various addresses at STANLAND’s direction, including to his home in Stamford, to his wife’s business in Brooklyn, N.Y., and to two post office boxes in Greenwich.

STANLAND sold the new parts to third parties to enrich himself.  Although he was supposed to return the allegedly defective part to Cisco, he either returned no parts at all or instead sent to Cisco third-party, off-brand parts.

Through this scheme, STANLAND fraudulently obtained nearly 600 parts from Cisco.  The retail cost of the parts ranged from approximately $500 to $8,600, and the total loss to Cisco was approximately $834,307.

STANLAND is scheduled to be sentenced by Judge Arterton on April 21, 2014, at which time he faces a maximum term of imprisonment of 20 years.  He has been released on a $100,000 bond since his arrest on October 1, 2013.

This case was investigated by the Federal Bureau of Investigation with valuable assistance from the Greenwich Police Department.  The case is being prosecuted by Assistant U.S. Attorney David T. Huang.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that NELSON RIOS, also known as “Pito,” 37, of New Haven, was sentenced yesterday by Senior U.S. District Judge Ellen Bree Burns in New Haven to 63 months of imprisonment, followed by five years of supervised release, for his role in a heroin trafficking ring.

According to court documents and statements made in court, RIOS and more than one hundred other individuals were charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven.  Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms.  The investigation revealed that RIOS assisted a co-defendant’s heroin trafficking operation by helping to package heroin into bundles for street-level distribution, testing the quality of the heroin and distributing the drug to customers.

RIOS was arrested on May 17, 2012.  On August 14, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.  He is currently detained.

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

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

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ARMANDO BERMEJO, 27, a citizen of Mexico last residing in New Britain, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport, to four months of imprisonment for illegally reentering the U.S. after he was deported.

According to court documents and statements made in court, BERMEJO has never held legal status in the U.S.  In June 2008, he was deported to Mexico after his arrest by the New Britain Police Department and subsequent conviction of possession of marijuana.  At the time of his arrest on March 22, 2008, BERMEJO, who had been operating a vehicle without a license and had been drinking, possessed false identification, a “butterfly” knife, brass knuckles, and marijuana.

On March 11, 2009, BERMEJO was encountered by ICE agents in the area of Naco, Ariz., and he was again removed to Mexico.

BERMEJO again illegally entered the U.S.  On October 3, 2010, in a residential neighborhood in New Britain, he shot a victim multiple times at point-blank range, causing life threatening injuries.  BERMEJO was arrested and, on January 12, 2012, he was sentenced in New Britain Superior Court to eight years of incarceration.

On October 9, 2013, BERMEJO pleaded guilty to one count of illegal reentry of a removed alien.  Judge Underhill ordered BERMEJO to serve his four-month federal sentence after he is released from state custody.

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, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, announced that former East Haven Police Officer DAVID CARI, 36, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 30 months of imprisonment, followed by three years of supervised release.

According to court documents and statements made in court, this matter stems from a criminal investigation into members of the East Haven Police Department using excessive force during arrests, conducting unconstitutional searches and seizures, and filing false police reports.  As a result of the investigation, CARI, Sergeant John Miller and Officers Dennis Spaulding and Jason Zullo were charged with various civil rights offenses.

According to the evidence presented during the trial of CARI and Dennis Spaulding, in February 2009 the defendant officers illegally searched a vehicle parked outside of a Latino-owned grocery store.  Inside the store, CARI then arrested a Catholic priest, who is also an advocate for Latinos, on false pretenses.  The officers then conducted an illegal search of the back room of the store in an effort to unlawfully seize the store’s video recording equipment.  In the days following the arrest, CARI drafted various false versions of an arrest report to cover up the false arrest of the religious leader.

“David Cari was entrusted to protect the people of East Haven,” said U.S. Attorney Daly.  “Instead, he violated that trust by arresting a priest when there was no basis to do so and attempting to cover up that illegal arrest with a false police report.  Today’s sentence is appropriate as corrupt law enforcement cause great harm to the integrity of the legal system.  It is always a sad day when a police officer is sentenced to prison as the vast majority of officers in East Haven and in this country serve honorably and bravely.”  

“There is a basic trust the public has in those who are sworn to enforce the law – they are there to keep the public safe, not promote their own agenda,” said FBI Assistant Director-in-Charge Venizelos.  “It is our hope that today's sentencing allows the community of East Haven to rebuild the trust they have with their police department.”

On October 21, 2013, the jury found CARI guilty of one count of conspiracy against rights, one count of deprivation of rights for making an arrest without probable cause, and one count of obstruction of a federal investigation for preparing a false report to justify the false arrest.  He has been detained since that date. 

Spaulding was also found guilty of the same offenses, as well as use of unreasonable force by a law enforcement officer.  He is scheduled to be sentenced on January 23.

On October 23, 2012, Jason Zullo pleaded guilty to one count of obstruction stemming from his filing of a false police report in order to prevent a possible excessive force investigation.  On December 16, 2013, he was sentenced to 24 months of imprisonment.

On September 21, 2012, John Miller pleaded guilty to one count of violating an individual’s civil rights by using unreasonable force during the course of an arrest.  He awaits sentencing. 

This matter has been investigated by the Civil Rights Squad of the FBI’s New York Field Office, and is being prosecuted by Assistant U.S. Attorney Krishna R. Patel and Senior Litigation Counsel Richard J. Schechter.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Bridgeport returned an indictment today charging MOZAFFAR KHAZAEE, also known as “Arash Khazaie,” 59, formerly of Manchester, Conn., with two counts of interstate transportation of stolen property.  The indictment stems from KHAZAEE’s alleged attempt to ship to Iran proprietary material relating to military jet engines and the U.S. Air Force’s F35 Joint Strike Fighter program that he had illegally retained from defense contractors where he had been employed.

As alleged in court documents, federal law enforcement agents began investigating KHAZAEE in November 2013 when officers with U.S. Customs and Border Protection Service (“CBP”), assisted by Homeland Security Investigations (“HSI”) special agents, inspected a shipment that KHAZAEE sent by truck from Connecticut to a freight forwarder located in Long Beach, Calif., which was intended for shipment from the U.S. to Iran.  The documentation for KHAZAEE’s shipment indicated that it contained household goods.  Upon inspecting the shipment, however, CBP officers and HSI personnel discovered that the content of the shipment primarily contained numerous boxes of documents consisting of sensitive technical manuals, specification sheets, and other proprietary material relating to the U.S. Air Force’s F35 Joint Strike Fighter program and military jet engines.  Upon further investigation, law enforcement learned that KHAZAEE holds Iranian and U.S. citizenship and, as recently as August 2013, worked as an engineer for defense contractors, including firms that are the actual owners of the technical and proprietary documents and materials in KHAZAEE’s shipment.

KHAZAEE, who became a naturalized U.S. citizen in 1991 and holds a valid U.S. passport, recently moved from Connecticut to Indianapolis. 

On January 9, 2014, KHAZAEE was arrested by HSI and FBI agents at Newark Liberty International Airport in New Jersey after flying from Indianapolis to Newark, before he was able to board a connecting flight to Frankfurt, Germany.  KHAZAEE’s ticketed destination was Tehran, Iran.

KHAZAEE is detained pending his transport to Connecticut.  His arraignment is not yet scheduled.

The indictment charges KHAZAEE with two counts of transporting, transmitting and transferring in interstate commerce goods obtained by theft, conversion, or fraud.  Each charge carries a maximum term of imprisonment of 10 years and a fine of up to $250,000.

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

U.S. Attorney Daly stated that there is an ongoing investigation in this matter and encouraged anyone with information that may be relevant to that investigation to call HSI at 203-773-2155, or the FBI at 203-503-5000.

This matter is being investigated by Homeland Security Investigations in New Haven and Los Angeles, the New Haven Division of the Federal Bureau of Investigation, the Defense Criminal Investigative Service in New Haven, the U.S. Customs and Border Protection Service in Los Angeles, the U.S. Air Force’s Office of Special Investigations in Los Angeles and Boston, and the Department of Commerce’s Boston Office of Export Enforcement.

U.S. Attorney Daly also commended the efforts of the many other agencies and offices that have been involved in this investigation, including the U.S. Attorney’s Offices for the Central District of California, the Southern District of Indiana and the District of New Jersey, as well as HSI, CBP, and FBI in New Jersey, and HSI, FBI and DCIS in Indianapolis.

This case is being prosecuted by Assistant U.S. Attorney Stephen Reynolds of the District of Connecticut and Trial Attorney Brian Fleming of the Justice Department’s Counterespionage Section (CES).

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NORMAN BARNABY, 34, of Enfield, was sentenced today by U.S. District Judge Michael P. Smith in Hartford to 57 months of imprisonment, followed by three years of supervised release, for distributing heroin.

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

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

The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that BARNABY regularly purchased distribution quantities of heroin from other members of the conspiracy.

BARNABY has been detained since his arrest on April 11, 2013.  On October 17, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute heroin.

BARNABY’s criminal history includes multiple felony convictions, including a previous federal conviction related to his role in a conspiracy to trade firearms in exchange for heroin.  In August 2006, he was sentenced to 41 months of imprisonment for that offense.

Angel Rosa, aka “Little” and “Daddy,” and Angel Rosa, aka “Mo Betta” and “Fab,” have each pleaded guilty and await sentencing.

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

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

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found MICHAEL SMITH, also known as “Smitty” and “Fingers,” 43, of Hamden, guilty of narcotics distribution offenses.  The trial before U.S. District Judge Robert N. Chatigny began on January 6 and the jury returned its verdict yesterday.

In a related case, COREY MADDOX, also known as “C.L.,” 36, of New Haven, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 55 months of imprisonment, followed by five years of supervised release.

SMITH, MADDOX and more than one hundred other individuals were charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven.  Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms.

According to the evidence presented during his trial, investigators received court-authorization to monitor three of SMITH’s telephones.  The investigation revealed that SMITH conspired to receive and distribute large quantities of cocaine and crack cocaine.  In addition, on October 27, 2011, SMITH sold approximately 6.6 grams of crack cocaine to an individual working with law enforcement.

SMITH has been detained since his arrest on May 22, 2012.  On that date, law enforcement search an apartment connected to SMITH and recovered items used to convert cocaine into crack cocaine, as well as approximately $2000 in cash.

The jury found SMITH guilty of one count of conspiracy to possess with intent to distribute, and to distribute, cocaine and cocaine base (“crack cocaine”), and one count of possession with intent to distribute, and distribution of, cocaine base.  Judge Chatigny has scheduled sentencing for April 7, 2014, at which time faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.

SMITH has a prior state firearms conviction, and seven prior felony drug convictions.

As to MADDOX, the same investigation revealed that he conspired with co-defendant Emory James, also known as “Emmo,” to distribute cocaine and heroin, primarily in the Dwight-Kensington neighborhood of New Haven.

MADDOX’s criminal history includes felony assault, firearms and drug convictions.  He has been detained since his arrest on May 17, 2012.

On September 19, 2013, MADDOX and James each pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin and cocaine.  James awaits sentencing.

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

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

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that WILLIAM LECKEY, 48, of Buffalo, N.Y., formerly of Madison, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 29 months of imprisonment, followed by three years of supervised release, for engaging in a fraud scheme that victimized financial institutions of more than $1.7 million.

According to court documents and statements made in court, from approximately 2002 until 2012, LECKEY was the President and owner of Anchor Capital Services, Inc. (“ACS”), which provided financing to companies looking to purchase heavy equipment, such as tractor trailer trucks, dump trucks, backhoes and other similar types of equipment.  ACS provided its customers with high interest rate leases, and funded the transactions through lines of credit it had available with various financial institutions.  ACS would draw down on the lines of credit it had with these financial institutions by pledging its lease agreements and the related equipment as collateral.  After each deal was funded by the financial institutions, ACS’s customer would make monthly payments to ACS on the lease, and ACS would use those funds to pay down the line of credit with the bank.

LECKEY and others engaged in a long-running fraud scheme to obtain money from financial institutions to use as operating capital for ACS.  As part of the scheme, LECKEY and others made false representations to the financial institutions that ACS had entered into lease transactions with customers for specified pieces of heavy equipment when, in fact, they knew that no such lease transaction had been conducted or the transaction never transpired after the lease had been signed.  As a result of these false statements, the financial institutions funded these nonexistent transactions in amounts well in excess of $100,000 on a number of occasions.

On one occasion in October 2010, LECKEY created a bogus customer to serve as the purported lessee of the equipment, and proceeded to defraud the financial institution into releasing $150,000 to ACS.

As a result of this scheme, ACS received more than $1.7 million from financial institutions on its letters of credit.

Judge Arterton ordered LECKEY to pay restitution in the amount of $ $1,709,640 to two victim financial institutions.

On August 1, 2013, LECKEY pleaded guilty to one count of conspiracy to commit bank fraud.

This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Senior Litigation Counsel Richard J. Schechter and Assistant U.S. Attorney Paul A. Murphy.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SCOTT LAMBERT, also known as “Mike,” 33, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 38 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.

According to court documents and statements made in court, on two occasions in May 2011, LAMBERT sold heroin to an individual working with law enforcement.  On August 6, 2011, Bridgeport Police stopped a truck in which LAMBERT was a passenger.  LAMBERT was arrested after he attempted to discard a handgun that he possessed.

LAMBERT was convicted of cocaine possession in 2003 in federal court, and he also has multiple state felony convictions.  It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.

This matter stems from an FBI Bridgeport Safe Streets Task Force and Connecticut State Police Statewide Narcotics Task Force investigation into narcotics trafficking activity and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport.  The Bridgeport, Norwalk, and Trumbull Police Departments participated in the investigation.

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 MOZAFFAR KHAZAEE, also known as “Arash Khazaie,” 59, formerly of Manchester, Conn., has been arrested on a federal criminal complaint after he attempted to ship to Iran proprietary material relating to the U.S. Air Force’s F35 Joint Strike Fighter program and military jet engines that he had stolen from defense contractors where he had been employed.  KHAZAEE was arrested yesterday at Newark Liberty International Airport in New Jersey, and the complaint was ordered unsealed this morning by a U.S. magistrate judge in Bridgeport, Conn.

As alleged in the criminal complaint, federal law enforcement agents began investigating KHAZAEE in November 2013 when officers with U.S. Customs and Border Protection Service (“CBP”), assisted by Homeland Security Investigations (“HSI”) special agents, inspected a shipment that KHAZAEE sent by truck from Connecticut to a freight forwarder located in Long Beach, Calif., which was intended for shipment from the U.S. to Iran.  The documentation for KHAZAEE’s shipment indicated that it contained household goods.  Upon inspecting the shipment, however, CBP officers and HSI personnel discovered that the content of the shipment primarily contained numerous boxes of documents consisting of sensitive technical manuals, specification sheets, and other proprietary material relating to the U.S. Air Force’s F35 Joint Strike Fighter program and military jet engines.  Upon further investigation, law enforcement learned that KHAZAEE holds Iranian and U.S. citizenship and, as recently as August 2013, worked as an engineer for defense contractors, including firms that are the actual owners of the technical and proprietary documents and materials in KHAZAEE’s shipment.

KHAZAEE, who became a naturalized U.S. citizen in 1991 and holds a valid U.S. passport, recently moved from Connecticut to Indianapolis.  He was arrested after flying from Indianapolis to Newark, before he was able to board a connecting flight to Frankfurt, Germany.  KHAZAEE’s ticketed destination was Tehran, Iran.

KHAZAEE appeared today before U.S. Magistrate Judge James B. Clark III in Newark and is detained pending his transport to Connecticut for further proceedings.

The complaint charges KHAZAEE with transporting, transmitting and transferring in interstate or foreign commerce goods obtained by theft, conversion, or fraud.  The charge carries a maximum term of imprisonment of 10 years and a fine of up to $250,000.

This matter is being investigated by Homeland Security Investigations in New Haven and Los Angeles, U.S. Customs and Border Protection Service in Los Angeles, the U.S. Air Force’s Office of Special Investigations in Los Angeles and Boston, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation, with the critical assistance of the U.S. Attorney’s Offices for the Central District of California, Southern District of Indiana and the District of New Jersey, as well as HSI, CBP, and FBI in New Jersey, and HSI, FBI and DCIS in Indianapolis.

This case is being prosecuted by Assistant U.S. Attorney Stephen Reynolds of the District of Connecticut, Trial Attorney Brian Fleming of the Justice Department’s Counterespionage Section (CES), and Assistant U.S. Attorney Christopher Grigg of the U.S. Attorney’s Office for the Central District of California.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL GESIMONDO, 57, of Farmingdale, N.Y., waived his right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to receiving kickbacks while he was an executive at Washington Mutual Bank.

According to court documents and statements made in court, Oxford Collection Agency was a private financial services company that engaged in accounts receivables management, primarily debt collecting, with offices in New York, Pennsylvania and Florida.  Between 2007 and 2011, Oxford Collection Agency executives engaged in a multi-year scheme to defraud its lender, investors and clients.  The investigation also revealed that Oxford Collection Agency was actively involved in bribing bank officials.

GESIMONDO was employed as Collection Manager of Business Banking at Washington Mutual Bank, and was in charge of outsourcing collection accounts to collection agencies.  Washington Mutual Bank contracted with the Oxford Collection Agency to collect debts owed to it by consumers.  Between May 2008 and May 2009, GESIMONDO received kickbacks from Oxford Collection Agency as a reward for providing Oxford Collection Agency with the bank’s debt collection business, often providing GESIMONDO with a percentage of the collected debt amount.

GESIMONDO pleaded guilty to one count of conspiracy to accept money as a reward in connection with a business transaction of a bank.  Judge Underhill scheduled sentencing for April 4, 2014, at which time GESIMONDO faces a maximum term of imprisonment of five years.

Seven other individuals have been convicted as a result of this investigation and prosecution of criminal activity arising from Oxford Collection Agency and the debt collection industry.

This ongoing investigation is being conducted by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Connecticut Securities, Commodities, and Investor Fraud Task Force.  The case is being prosecuted by Assistant U.S. Attorney Liam Brennan and Special U.S. Attorney John McReynolds.

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United States Attorney Deirdre M. Daly today announced that the U.S. Attorney’s Office collected $11.6 million in criminal and civil actions in Fiscal Year 2013.  Of this amount, $4.3 million was collected in criminal actions, $3.8 million was collected in civil actions and an additional $3.5 million was collected through asset forfeiture. 

The District of Connecticut also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect approximately $26 million in cases pursued jointly with these offices.

Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.

“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder.  “It is critical that Congress provide the resources necessary to match the department’s mounting caseload.  As these figures show, supporting our federal prosecutors is a sound investment.”

“Every day, our attorneys and staff work tirelessly to protect the public and seek justice for victims of crime,” said U.S. Attorney Daly.  “Often, justice comes in the form of financial restitution, and the funds collected are provided directly to victims of crime.  Funds are also used to provide needed services to victims and to fund ongoing federal, state and local law enforcement efforts.  I want to specifically acknowledge the dedicated efforts of the Office’s Civil Division and Financial Litigation Unit, which, every year, recover millions of dollars of taxpayer funds. ”

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

During FY2013, more than $4.3 million was collected for special assessments, fines and restitution from federal criminal offenders who were prosecuted by Connecticut’s U.S. Attorney’s Office.

The largest civil collections were from affirmative civil enforcement cases, in which the U.S. recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

The Office’s Financial Litigation Unit (FLU) litigates debt collection issues and enforces collection of criminal and civil debts owed to the United States or to victims of federal crime.  The FLU enforces collection of civil debts on behalf of federal agencies in litigation that most often involves federal loan programs, civil penalties assessed by federal agencies and civil fraud actions litigated by the U.S. Attorney’s Office.  In FY2013, the office collected approximately $3.8 million from Connecticut debtors in satisfaction of their federal civil debts, including False Claims Act recoveries, such as procurement and health care fraud, and civil penalty and debt collection matters such as bankruptcy, student loans and foreclosures.

Additionally, the U.S. Attorney’s Office, working with partner agencies and divisions, collected $3.5 million in asset forfeiture actions in FY 2013.  Those who are convicted of federal crimes are often subject to criminal asset forfeiture proceedings, whereby the government seizes property that was involved in or represents the proceeds of criminal behavior.  Property can also be forfeited through civil forfeiture actions.  The proceeds of forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and Department of Treasury Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes. Forfeited assets are also provided to state and local law enforcement through the Equitable Sharing Program.

The U.S. Attorney’s Office for the District of Connecticut is charged with enforcing federal criminal laws in Connecticut, and with representing the federal government in civil litigation in the District.  The Office employs approximately 64 Assistant U.S. Attorneys, 45 staff members and 13 contractors at offices in New Haven, Hartford and Bridgeport.

For further information, the United States Attorneys’ Annual Statistical Reports can be found on the Internet at www.justice.gov/usao/reading_room/foiamanuals.html.  More information about the Crime Victims Fund can be found at www.ovc.gov/about/victimsfund.html.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that THOMAS PROVENZANO, 47, of Torrington, waived his right to indictment and pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to multiple conspiracy offenses stemming from his involvement in a series of fraudulent real estate transactions.

According to court documents and statements made in court, in November 2005, PROVENZANO obtained a $923,200 loan to purchase a lakefront home located at 27 Palmer Road in Morris for more than $1.1 million, despite lacking the income and savings to pay off the mortgage.  The property was owned by an entity controlled by a co-conspirator and, on the mortgage loan application, PROVENZANO falsely listed his employment with a company owned by his co-conspirator.  In fact, PROVENZANO never worked at the company.  The application also falsely listed PROVENZANO’s income as $20,000 per month when, in fact, his annual income was less than $50,000.  The company subsequently provided verification for the false employment and income information on the loan application.

In November 2006, PROVENZANO refinanced the loan, obtaining a $936,000 mortgage from a federally insured bank.  The new loan application, like the prior application, falsely listed PROVENZANO as employed by the same company as in the original loan application, and falsely listed his monthly income as $28,000, equal to $336,000 annually.  The company again provided verification for the false information on the loan application.

The loan is now in default, and the Palmer Road property is now in foreclosure.

In May and June 2010, PROVENZANO and the same co-conspirator learned that the FBI and IRS were investigating the real estate and mortgage transactions involving the Palmer Road property.  Among other things, the federal agents were examining a discrepancy in the closing documents, which showed that PROVENZANO had been obligated to make a down payment of approximately $249,000, but had never paid it.   PROVENZANO and his co-conspirator met and created a false promissory note in the amount of approximately $249,000, and backdated the note to November 2005, to serve as an explanation of why the $249,000 down payment had never been paid at the closing.  In June 2010, PROVENZANO agreed to be interviewed by the FBI and IRS.  During the interview he falsely claimed that he had not needed to make the down payment in November 2005 because he had signed a promissory note to the seller for the same amount.  Later that same month, PROVENZANO met with the FBI and IRS agents and provided them with a copy of the false, backdated promissory note.

As part of a separate conspiracy, in December 2009 and January 2010, PROVENZANO, the same co-conspirator and others engaged in a series of discussions about how to defraud a title insurance company.  According to the discussions, the scheme involves a real property sale based on a deliberately defective title search, where one or more liens on the property are deliberately omitted from the title search report.  After the property is sold and title insurance is issued, the conspirators arrange an event that triggers a new title search, such as a resale of the property.  The “overlooked” liens turn up, providing the conspirators with a legal claim against, and a large payout from, the title insurer.

The conspirators attempted the scheme on a property held in the name of an entity controlled by PROVENZANO’s co-conspirator located at 66 Donahue Road Extension in Litchfield.  PROVENZANO assisted in a title search of the property in January 2010, but then ceased to participate in the scheme.  The property was later sold in March 2010 to his co-conspirator’s brother, and title insurance was issued based upon a defective title search.  Three liens against the property, totaling approximately $990,000, had been deliberately omitted from the title search report.

PROVENZANO pleaded guilty to one count ofconspiracy to commit bank fraud, one count of conspiracy to obstruct justice and one count of conspiracy to commit mail and wire fraud.  Judge Arterton scheduled sentencing for April 14, 2014, at which time PROVENZANO faces a maximum term of imprisonment of 55 years.

This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.  The case is being prosecuted by Assistant U.S. Attorney Henry Kopel.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ENRIQUE LUCIANO, also known as “Pucho,” 26, of Hartford, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to eight months imprisonment for escaping from a halfway house in Hartford.

According to court documents and statements made in court, on May 27, 2010, LUCIANO was sentenced in Hartford federal court to 60 months of imprisonment for possession of a firearm by a convicted felon.  On February 20, 2013, he was transferred to Watkinson House Residential Reentry Center, a halfway house in Hartford.  On July 11, 2013, after being denied a job search pass by Watkinson staff, LUCIANO was seen leaving the facility with most of his belongings.  He did not return.

On July 19, 2013, LUCIANO was arrested by the U.S. Marshals Service.  At the time of his escape, LUCIANO had a projected release date of August 18, 2013.

LUCIANO has been detained since his arrest.  On September 19, 2013, he pleaded guilty to one count of escape from the custody of the Attorney General.

This case was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorney Jonathan S. Freimann.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that SHALANDA JENKINS, 32, of New Britain, waived her right to indictment and pleaded guilty yesterday before U.S. Magistrate Judge William I. Garfinkel in Bridgeport to aiding and assisting in the filing of false federal income tax returns.

According to court documents and statements made in court, JENKINS worked as a tax return preparer at Tax Express, which has locations in New Haven and West Haven.  While working at Tax Express, JENKINS assisted in the preparation of 31 false federal individual income tax returns for her clients, but without the clients’ knowledge of the returns’ false items.  Specifically, JENKINS created false education credits, false child and dependent care credits, and various other false items in order to create additional refunds for her clients.  The 31 fraudulent returns generated large refunds for JENKINS’ clients and caused a tax loss of $131,670 to the government.

JENKINS is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on April 1, 2014, at which time she faces a maximum term of imprisonment of three years and a fine of up to $100,000.

JENKINS’ clients are required to resolve their own tax liability with the Internal Revenue Service.

This matter is being investigated by the Internal Revenue Service – Criminal Investigation, and 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 PAUL ROGERS, 41, of Middlebury, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to six months of imprisonment, followed by two years of supervised release, for his role in a scheme to direct illegal contributions into the campaign of a candidate for the U.S. House of Representatives.  ROGERS was also ordered to pay a $5,000 fine.

According to court documents and statements made in court, in August 2011, the State of Connecticut applied for a court order enjoining Roll Your Own (“RYO”) smoke shops from continuing to operate without complying with state law governing tobacco manufacturers.  RYO smoke shops are retail businesses that sell loose smoking tobacco and cigarette-rolling materials and offer customers the option of paying a “rental” fee to insert the loose tobacco and the rolling materials into a RYO machine, which is capable of rapidly rolling large quantities of cigarettes.  Customers did not pay a tax on the RYO cigarettes when rolled by the RYO machines, in contrast to cigarettes purchased over-the-counter.

ROGERS owned a RYO smoke shop with two locations in Waterbury.  Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, ROGERS and others engaged in a scheme to direct conduit campaign contributions into the campaign of Christopher Donovan, a candidate for the U.S. House of Representatives.  At the time, Donovan was also the Speaker of the Connecticut House of Representatives.  ROGERS and his co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign.  These individuals wrote checks to the campaign in their own names, and ROGERS and his co-conspirators reimbursed them with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.

In November and December 2011, participants in the scheme made four $2,500 conduit contributions to the Chris Donovan for Congress campaign.  On approximately January 31, 2012, the campaign submitted to the Federal Election Commission (“FEC”) a report of campaign committee’s receipts and disbursements for the period October 1, 2011 through December 31, 2011.  The report falsely stated the source and amount of the four $2,500 contributions that were received and deposited by the campaign committee during that time period.

ROGERS and others subsequently directed an additional $17,500 in conduit contributions to the Donovan for Congress Campaign, as well as a conduit contribution in the amount of $2,500 to a political party.

On January 23, 2013, ROGERS waived his right to indictment and pleaded guilty to one count of devising a scheme to bribe a public official, and one count of conspiring to make false statements to the Federal Election Commission (“FEC”) and to impede the FEC’s enforcement of federal campaign finance laws.

Seven other individuals, including two employees of the Donovan for Congress campaign, have also been convicted of charges stemming from this scheme.

This matter was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Christopher M. Mattei and Eric J. Glover.

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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JORDAN MARSH, 27, of South Windsor, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to five years of probation for stealing a firearm from a federally licensed firearms dealer.

According to court documents and statements made in court, on December 11, 2012, MARSH stole a Windham Weaponry 5.56 mm caliber semi-automatic rifle from the front counter of Riverview Gun Sales, a former federal firearms dealer located in East Windsor.  The theft was captured on the store’s video surveillance system, which shows MARSH entering the store, standing in front of the rifle, picking up the firearm and leaving the store.  Though there were several employees standing behind the counter, none were near MARSH, and none saw him take the firearm.  No one at the store realized the firearm was missing until the Hartford Police retrieved it from MARSH’s hotel room on December 17, 2012, two days after MARSH had been arrested for attempting to steal a Bushmaster .50 caliber rifle from Riverview.

Earlier in 2012, MARSH was convicted of a state felony stemming from his prior thefts of approximately 12 firearms from Riverview.

On August 27, 2013, MARSH pleaded guilty in state court to firearms and probation violation offenses stemming from his attempted theft of the Bushmaster .50 caliber rifle, and was sentenced to eight years of incarceration.  He is currently detained in state custody.

In this federal case, MARSH faced a sentencing guideline range of 46 to 57 months of imprisonment.  Instead of imposing a concurrent sentence of incarceration, Judge Shea, with agreement of the parties, imposed a five-year term of probation, the maximum allowed under the law.  The court expressed concern that MARSH was a danger to the public, noted that he was on state probation for the first Riverview theft when he committed the second Riverview theft, and decided that the maximum term of federal supervision was necessary to make sure that he did not re-offend.

As special conditions of probation, the court ordered that MARSH and his residence be subject to searches by the U.S. Probation Office upon reasonable suspicion, that MARSH not enter or associate with any person or business that sells firearms, that he not attempt to purchase or possess any firearms, and that he agree to the installation of computer software that will monitor his Internet activity and alert the U.S. Probation Office if he attempts to purchase a firearm over the Internet.  MARSH was also ordered to receive mental health counseling and treatment.

“By imposing the longest term of probation available, today’s federal sentence supplements the state court’s eight-year jail sentence by maximizing the protection afforded to society and simultaneously providing the defendant with the supervision and mental health counseling he so clearly needs,” stated U.S. Attorney Daly.

On August 22, 2013, David Laguercia, the owner and operator of Riverview Gun Sales, pleaded guilty to one count of transfer of a firearm before completion of background check, and one count of failure to maintain proper firearm records.  Laguercia also entered a guilty plea on behalf of Riverview Sales, Inc. to one count of making false entries in dealer’s records.  Laguercia and his business await sentencing.

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hartford and East Windsor Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
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