District of Connecticut

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced a settlement agreement with the XL Center, its management companies, the City of Hartford and the State of Connecticut to resolve allegations that the XL Center failed to comply with the Americans with Disabilities Act (ADA).   The ADA prohibits discrimination on the basis of disability, including mobility impairments, in places of public accommodation.  The XL Center is an arena in downtown Hartford that seats more than 16,000 people and hosts various athletic and entertainment events.

Following an investigation prompted by a complaint, the XL Center parties agreed to make numerous changes, including adding accessible bathrooms and seats, improving the existing accessible seating, removing mobility impairments, installing additional safety measures, and changing policies.

The XL Center, its management companies, the City of Hartford and the State of Connecticut worked cooperatively to address the deficiencies at the Center.  The United States will continue to monitor the XL Center for the next three years to ensure ongoing compliance with the ADA.

“The law appropriately mandates that all people including those with disabilities have equal access to places of public accommodation,” stated Acting U.S. Attorney Daly.  “As the XL Center serves so many, we hope the Center’s significant efforts will act as a reminder to all businesses of their legal obligations under the ADA to the citizens of Connecticut.  Even facilities that were built prior to the 1992 enactment of the ADA are legally required to remove all physical barriers to access so that their facilities can be enjoyed fully and equally by all people, including those that have limited mobility.”

The ADA prohibits discrimination and ensures equal opportunity for persons with disabilities in employment, state and local government services, public accommodations, commercial facilities, and transportation.

The enforcement of the ADA is a top priority of the United States Attorney’s Office for the District of Connecticut and the Justice Department’s Civil Rights Division.  Individuals can file an ADA complaint with the U.S. Attorney’s Office in Connecticut by calling 203-821-3700, and also by visiting www.ada.gov/filing_complaint.htm.  Additional information about the ADA and its application to places of public accommodation can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD).

This case was handled by Assistant United States Attorneys Lisa E. Perkins and David C. Nelson.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that MAURICIO ARTURO MADRID, also known as Mauricio Nava-Morales, 35, a citizen of El Salvador, was sentenced yesterday by United States District Judge Janet C. Hall in New Haven to six months of imprisonment for illegally reentering the United States after he was deported.

According to court documents and statements made in court, between September 2008 and August 2010, MADRID was removed from the United States to El Salvador on three separate occasions.  MADRID again returned to the U.S. and, on July 30, 2012, he was arrested by Stamford Police and subsequently convicted of driving under the influence, second degree assault, interfering/resisting arrest and assault on personnel.  On January 31, 2013, he was sentenced to six years of incarceration, suspended after 25 months.

Judge Hall ordered that MADRID begin serving his six-month federal sentence after his release from state custody.

MADRID has been detained since his arrest.  On February 27, 2013, he pleaded guilty to one count of illegal reentry of a removed alien.

Since the age of 23, MADRID has been arrested at least 15 times while in the U.S.

This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, with the assistance of the Stamford Police Department.  The case was prosecuted by Assistant United States Attorney Deborah R. Slater.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that PETER LYNN SCHUETT, 54, of Manchester, pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to one count of receipt and distribution of child pornography.

According to court documents and statements made in court, on February 1, 2013, the Connecticut State Police, Manchester Police Department and Homeland Security Investigations executed an arrest warrant on SCHUETT for violation of Connecticut’s state sex offender registry law.  Prior to execution of the warrant, SCHUETT consented to a search of his mobile phone, which revealed that he had received and distributed images and videos of child pornography.

Subsequent forensic analysis of SCHUETT’s phone and email accounts has revealed hundreds of images and videos of child pornography.  The images and videos contained depictions of prepubescent minors and minors under the age of 12 engaged in sexually explicit conduct, as well as material depicting sadistic and masochistic conduct or other depictions of violence.  The investigation revealed that SCHUETT also engaged in sadistic and masochistic chats with other individuals that advocated graphic violence against children.

SCHUETT has previous convictions in Texas in 2000 for possession of child pornography, and in Connecticut in 2008 for importing child pornography and promotion of a minor in an obscene performance.

Judge Arterton has scheduled sentencing for October 1, 2013, at which time SCHUETT faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 40 years.  The penalties in this case are enhanced because of SCHUETT’s criminal history.

SCHUETT has been detained since his arrest on February 1, 2013.

This case is being investigated by Homeland Security Investigations, with assistance from the Connecticut State Police and the Manchester Police Department.  The case is being prosecuted by Assistant United States Attorney Sarala V. Nagala.

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
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that AMED VILLA, 48, a citizen of Cuba last residing in Miami, Fla., pleaded guilty today to federal charges stemming from his participation in the theft of approximately $90 million in pharmaceuticals from a warehouse in Enfield, Conn., and $8 million in cigarettes from a warehouse in Illinois.

“The Eli Lilly theft is reportedly the largest in Connecticut history, and I commend the FBI in New Haven and the Enfield Police Department, as well as our counterparts in the Central District of Illinois and other jurisdictions, for their cooperative investigative efforts in dismantling a prolific cargo theft ring,” stated Acting U.S. Attorney Daly.

“Today’s guilty plea is the result of a most exhaustive and far-reaching investigation, highlighted by exemplary teamwork among our federal, state and local partners,” stated FBI Special Agent in Charge Mertz.  “Complex investigations involving multiple agencies and jurisdictions are often difficult because they require an especially organized and coordinated effort in order to bring those responsible for crimes to justice.  The tremendous investigative and prosecutive effort in this matter is evident by Villa’s guilty plea.”

According to court documents and statements made in court, between January and March 2010, VILLA and others conspired to steal pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield, Conn.  The investigation revealed that, in early 2010, members of the conspiracy traveled from the Miami area to Connecticut to gather information about the warehouse facility and the surrounding area.  Shortly before the theft, VILLA and another individual drove from Florida to Flushing, N.Y., where they purchased tools needed to break into the warehouse facility, and then traveled to Connecticut.

In the evening of March 13, 2010, VILLA and others traveled in a tractor trailer to the parking lot of the Eli Lilly warehouse facility, dropped off a ladder and left.  Later that evening, VILLA and a co-conspirator carried the ladder to the facility, checked for security in the front area, climbed onto the roof, used the tools to cut a hole in the facility roof, dropped down into the facility and disabled the alarm system.  Thereafter, VILLA and others loaded approximately 53 pallets of pharmaceuticals into the tractor trailer, which they had backed up to the loading dock of the facility.

The pallets of pharmaceuticals included thousands of boxes Zyprexa, Cymbalta, Prozac, Gemzar and other medicines, valued at approximately $90 million.

Once the conspirators returned to Miami, they packed the pharmaceuticals into moving boxes and stored them in self-storage units in the Miami area.
As part of the investigation, on October 14, 2011, law enforcement authorities searched a storage facility in Florida and recovered pharmaceuticals that had been stolen from the Enfield warehouse.

VILLA also pleaded guilty to a federal theft charge from the Central District of Illinois, admitting that, on January 24, 2010, he and others stole approximately 3,512 cases of cigarettes and a cargo trailer from a warehouse in East Peoria, Ill.  During this theft, the warehouse was accessed by a hole cut in the roof and the security system was bypassed.  A ladder and tools were discovered near the hole in the roof.  In addition, a water bottle was recovered from the floor inside the warehouse.  Analysis of DNA found on the water bottle revealed that the DNA profile was consistent with VILLA.  The DNA profile also matched DNA recovered during the investigation of the Eli Lilly warehouse theft.

VILLA pleaded guilty to one count of conspiracy to commit theft from an interstate shipment and two counts of theft from an interstate shipment.  When he is sentenced, VILLA faces a maximum term of imprisonment of 25 years.

VILLA has been detained since his arrest on May 3, 2012.

The investigation of the Enfield warehouse theft was led by the FBI in New Haven and the Enfield Police Department, with the assistance of several other United States Attorney’s Offices and federal, state and local law enforcement agencies that have been investigating large-scale thefts of pharmaceuticals and other products.  The investigation of the warehouse theft in East Peoria was led by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Peoria Police Department.

This case is being prosecuted in the District of Connecticut by Assistant U.S. Attorney Anastasia E. King, with the assistance of Assistant U.S. Attorney K. Tate Chambers of the Central District of Illinois.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that LUSVIN LEONEL OLIVA-AQUINO, 27, a citizen of Guatemala last residing in Stamford, was sentenced yesterday by United States District Judge Robert N. Chatigny in Hartford to 21 months of imprisonment for illegally reentering the United States after he was deported.

According to court documents and statements made in court, OLIVA-AQUINO illegally entered the U.S. sometime prior to April 24, 2008, when he was arrested by the Stamford Police Department on charges of second degree sexual assault and risk of injury to a minor.  The charges stemmed from OLIVA-AQUINO’s illegal sexual contact with a 13-year-old girl.  He was convicted of both offenses and sentenced to eight years of incarceration, execution suspended, with one year to serve, and a total of 10 years of probation.  OLIVA-AQUINO was deported to his native Guatemala in October 2009.

On October 3, 2012, OLIVA-AQUINO was arrested by Stamford Police for motor vehicle offenses. 

OLIVA-AQUINO has been detained since his arrest.  On February 7, 2013, he pleaded guilty to one count of illegal reentry of a removed alien.

This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, with the assistance of the Stamford Police Department.  The case was prosecuted by Assistant United States Attorney Deborah R. Slater.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ARTHUR GALLOWAY, 38, of Shelton, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by 10 years of supervised release, for trading child pornography on the Internet.

According to court documents and statement made in court, on March 14, 2012, the Connecticut State Police Computer Crimes Unit, Shelton Police Department and Federal Bureau of Investigation conducted a court-authorized search of GALLOWAY’s residence and seized a laptop computer, an external hard drive and other items.  Investigators determined that GALLOWAY used the Internet to trade numerous images and video of child pornography, and he was arrested at that time.

Subsequent forensic analysis of the seized items revealed that GALLOWAY possessed 11 printed photographs, 913 images and 45 videos of children engaging in sexually explicit conduct.  Some of the videos exceeded 20 minutes in length.

On January 11, 2013, GALLOWAY pleaded guilty to one count of receipt and distribution of child pornography.

This matter was investigated by the Connecticut State Police Computer Crimes Unit, the Shelton Police Department, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies.  The case was prosecuted by Assistant United States Attorneys Felice M. Duffy and Neeraj N. Patel.

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

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
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that KAMAR JAMES, also known as “Sean Steppa,” “Sean Lawson” and “Akamar Lawson,” 30, a citizen of Jamaica last residing in Hartford, pleaded guilty today before United States Magistrate Judge Thomas P. Smith in Hartford to one count of sex trafficking of a minor.

According to court documents and statements made in court, in 2011, JAMES recruited a minor victim whom JAMES knew to be under the age of 18 to engage in prostitution.  On multiple occasions, JAMES transported the minor victim from Connecticut to streets in New York City where the victim would meet men who would pay her for sexual encounters.  JAMES also posted pictures of the minor victim on the Internet to advertise the victim’s prostitution services.  He then transported the victim to hotels in the New York City area when the victim engaged in pre-arranged prostitution encounters.  The victim turned over all of the proceeds from the prostitution encounters to JAMES.

JAMES is scheduled to be sentenced by United States District Judge Vanessa L. Bryant on September 19, 2013, at which time he faces a mandatory minimum term of imprisonment of 10 years and a maximum term of life.

JAMES has been detained since his arrest on February 3, 2012.

This matter has been investigated by the Federal Bureau of Investigation and the Hartford Police Department, with the assistance of U.S. Immigration and Customs Enforcement.  The case is being prosecuted by Assistant United States Attorney David E. Novick.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JULIUS C. BLACKWELDER, 59, formerly of Stratford, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 46 months of imprisonment, followed by three years of supervised release, for operating an investment fraud scheme.

According to court documents and statements made in court, beginning in 2005, BLACKWELDER persuaded individuals to invest their money with him as part of an investment pool known as the “Friend’s Investment Group.”  At the time, BLACKWELDER was the Bishop of the Bridgeport Ward of the Church of Jesus Christ of Latter-day Saints located in Trumbull, and he solicited investments from, among others, members of his congregation.

BLACKWELDER misrepresented to investors that he would invest their money in safe, long-term commodities futures contracts, and that he was an experienced and successful commodities investor.  In some instances, BLACKWELDER guaranteed investors’ principal and a specific return on their investment.  He documented his misrepresentations to investors in promissory notes, offering memoranda and account updates that he prepared.

In fact, BLACKWELDER used investors’ money to fund his construction of a 7,000 square-foot home on the Housatonic River in Stratford, to pay other personal expenses and to repay personal bank loans, including a line of credit from a Troubled Asset Relief Program (TARP) recipient bank.  BLACKWELDER also used some invested funds to pay earlier investors.

Through this scheme, BLACKWELDER defrauded investors of nearly $500,000.

One victim of BLACKWELDER’s scheme, who was nearing retirement, took out a $100,000 home equity loan on his house and withdrew $130,000 from his 401k to invest with BLACKWELDER.

“This defendant exploited his position in his church to mislead other church members into believing he was an accomplished investor who could help them protect and increase their wealth,” stated Acting U.S. Attorney Daly.  “Instead, he used much of the money he took from his victims to construct a luxurious waterfront mansion so that he could live in comfort while his victims struggled to make ends meet.  I want to thank the U.S. Postal Inspection Service, SIGTARP, IRS-Criminal Investigation and the Connecticut Department of Banking who investigated this matter, as well as our other law enforcement partners who are working diligently to protect investors by identifying and rooting out fraudulent financial schemes.”

On February 20, 2013, BLACKWELDER pleaded guilty to one count of wire fraud and one count of money laundering.

This matter was investigated by the United States Postal Inspection Service, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Internal Revenue Service – Criminal Investigation, and the State of Connecticut Department of Banking.  The case was prosecuted by Assistant United States Attorney Jonathan N. Francis and Acting United States Attorney Daly.

The Connecticut Securities, Commodities and Investor Fraud Task Force investigates matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.

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

Today’s announcement is part of efforts underway by the President’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.

To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre Daly, Acting United States Attorney for the District of Connecticut, announced that OBED FRANCO, also known as “Obie,” 23, of Hartford, pleaded guilty today before United States District Judge Janet C. Hall in New Haven to one count of possession of a firearm in furtherance of a drug trafficking crime. 

According to court documents and statements made in court, FRANCO was a member of a drug trafficking organization that sold heroin in the Hartford area.  One of FRANCO’s heroin customers held a Connecticut pistol permit.  On five occasions between February 2011 and May 2011, FRANCO and others drove the drug customer to a federally-licensed firearms dealer in East Hartford and picked out a total of eight guns for the customer to purchase.  FRANCO and his other co-conspirators, including Wilson Morillo, then provided the customer with money to complete the purchases.  After purchasing the firearms and leaving the store, FRANCO and his co-conspirators gave the drug customer heroin and cash in exchange for the firearms.

In May 2011, FRANCO also purchased a firearm from another heroin customer in exchange for cash and heroin.

Judge Hall has scheduled sentencing for September 18, 2013, at which time FRANCO faces a mandatory minimum term of imprisonment of five years and a maximum term of life imprisonment.

FRANCO has been detained on unrelated state charges since June 15, 2011.

On May 28, 2013, Morillo pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.  He also is detained while awaiting sentencing.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department.  The case is being prosecuted by Assistant United States Attorney Jonathan S. Freimann and Special Assistant United States Attorney Natasha Dye.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that RICHARD SOKOLOFF, 70, of Guilford, waived his right to indictment and pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to one count of health care fraud.

According to court documents and statements made in court, SOKOLOFF was a podiatrist with a practice at 652 Boston Post Road in Guilford.  Between July 2008 and February 2012, SOKOLOFF engaged in a health care fraud scheme by submitting claims to Medicare for avulsion of nail plate services which were not rendered.  An avulsion of nail plate service, or “nail avulsion,” is a surgical procedure to treat ingrown toenails.  The procedure involves the surgical separation and removal of all or part of a toenail from the tip of the nail back to the base of the nail.  Pursuant to relevant Medicare policies, the procedure is required to be performed using injectable anesthesia unless the patient is devoid of sensation or there are other extenuating circumstances.  Injectable anesthesia is necessary to perform a partial or full nail avulsion to avoid causing extreme pain to the patient.

The investigation revealed that SOKOLOFF commonly provided only “routine foot care” services to his Medicare patients, such as simply trimming or clipping their toenails, but he regularly submitted claims to Medicare as if he had performed nail avulsion surgical procedures.  Routine foot care is typically not a payable service under relevant Medicare regulations except in limited circumstances for patients with certain systemic conditions or other significant medical issues.  SOKOLOFF also did not use an injectable anesthetic while supposedly providing nail avulsion services.

When Medicare requested that SOKOLOFF provide documentation to substantiate his nail avulsion services, SOKOLOFF created and back-dated patient progress notes to make it appear that the avulsion of nail plate services had been performed when, in fact, they had not been performed.

SOKOLOFF was paid more than $200,000 by Medicare for nail avulsion services that had not been performed.

Judge Arterton has scheduled sentencing for October 3, 2013, at which time SOKOLOFF faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.

As part of the resolution of this matter, SOKOLOFF has agreed to a 10-year exclusion from all federal health care programs.

This investigation was conducted by special agents from the Office of Inspector General for the Department of Health and Human Services and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant United States Attorney Richard M. Molot and Auditor Kevin Saunders.

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

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ROBERT MORRIS, 21, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 41 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.

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

MORRIS was arrested on May 22, 2012, and is currently detained.  On February 4, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack”).

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 United States Attorneys S. Dave Vatti and Marc Silverman.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found DEOWRAJ “DEO” BUDDHU, 70, formerly of Wethersfield, guilty of multiple charges related to his operation of a fraudulent debt elimination scheme.  The trial before Chief United States District Judge Alvin W. Thompson began on June 5 and the jury returned its verdict this afternoon after deliberating for less than one hour.

“This defendant’s fictitious debt elimination scheme defrauded numerous struggling homeowners, many of whom were immigrants with little command of the English language,” stated Acting U.S. Attorney Daly.  “He took thousands of dollars from his victims, knowing it would make their unsteady financial situation even worse, and used the funds to pay his own personal expenses.  All distressed homeowners must steer clear of such schemes and seek legitimate assistance for financial difficulties.  I want to thank IRS – Criminal Investigation and HUD-OIG for their work on this case, and our other law enforcement partners who are committed to prosecuting individuals who victimize individuals through financial fraud schemes.”

According to the evidence introduced during the trial and statements made during prior court proceedings, between February 2009 and June 2012, BUDDHU sold a debt elimination “program” to several vulnerable individuals through various businesses, including Paradise Consulting Service, Hema, Inc., and Secured Redemption.  In exchange for substantial fees, BUDDHU told victims about a little-known government fund that could be used to pay off their mortgages and other debts.  In fact, no such fund exists.  BUDDHU advised victims to stop making payments on their mortgages and other debts, including property taxes.  He also provided his victims with fictitious promissory notes, which he called “bonds,” as well as other frivolous documentation, which he told victims they could use to pay their debts.  BUDDHU’s daughter, Sunita Buddhu, a licensed notary public, notarized documents provided to the victims as part of the program.  Victims were directed to present the fraudulent promissory notes and other documentation to banks and other creditors.

By ceasing their mortgage payments and other obligations, BUDDHU’s victims ended up in foreclosure proceedings and are at risk of losing their homes and other assets.

BUDDHU also prepared and directed victims to file frivolous lawsuits, documents, motions, and other purported legal documents with the state courts in Connecticut and elsewhere.

The jury found BUDDHU guilty of six counts of mail fraud and seven counts of issuing, selling and presenting fictitious financial instruments.  Chief Judge Thompson has scheduled sentencing for September 17, 2013, at which time BUDDHU faces a maximum term of imprisonment of 30 years on each count of mail fraud, and a maximum term of imprisonment of 25 years on each count of passing fraudulent financial instruments.

BUDDHU has been detained since his arrest on June 11, 2012.

On October 10, 2012, Sunita Buddhu, 43, pleaded guilty to one count of issuing, selling and presenting fictitious financial instruments.  She has been detained since her arrest on June 13, 2012 and also awaits sentencing.

This matter was investigated by the Internal Revenue Service – Criminal Investigation and the U.S. Department of Housing and Urban Development – Office of Inspector General, with assistance from the Wethersfield Police Department.

The case is being prosecuted by Assistant United States Attorneys Lisa Perkins and Liam Brennan.
Today’s announcement is part of efforts underway by the President’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.

To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that KRYSTOPHER DIBELLA, 25, of West Suffield, pleaded guilty yesterday before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to one count of aiding and abetting the failure to make a proper entry on an ATF Form 4473, a form that must be completed by individuals who purchase firearms from federally-licensed firearms dealers. 

According to court documents and statements made in court, from approximately 2008 to August 2012, DIBELLA was employed at Riverview Gun Sales, which used to be a federally-licensed firearms dealer in East Windsor.  On several occasions during his employment at Riverview Gun Sales, DIBELLA transferred firearms to individuals who failed to respond to certain questions on the ATF Form 4473. 

The charge against DIBELLA stems from a sale that occurred on March 15, 2010.  On that date, DIBELLA failed to have a purchaser of a firearm, who was a non-immigrant alien, answer a question on the form regarding United States citizenship.    

Judge Fitzsimmons has scheduled sentencing for September 16, 2013, at which time DIBELLA faces a maximum penalty of one year of imprisonment, five years of probation and a $100,000 fine.  The parties have agreed to recommend a sentence of three years of probation.  As part of this agreement, DIBELLA will not apply for a Federal Firearms License (FFL) or to be a responsible party for an FFL for the entire probationary term.

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorney Robert M. Spector.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration in New England, today announced that a federal grand jury sitting in Bridgeport has returned an indictment charging RALPH CROZIER, 61, an attorney based in Seymour, with federal money laundering offenses.

As alleged in court documents, prior to September 2011, CROZIER convinced a client to invest $30,000 in cash in a solar energy company.  CROZIER knew that the cash was derived from his client’s narcotics trafficking activities.

CROZIER was arrested at his office on April 11, 2013, after he allegedly accepted an additional $11,000 in purported drug proceeds to invest on behalf of his client.

The indictment, which was returned on June 11, 2013, charges CROZIER with one count of conspiracy to launder monetary instruments and one count of attempt to launder monetary instruments.  Each charge carries a maximum term of imprisonment of 20 years and a fine of up to $1 million.

CROZIER is currently released on a $200,000 bond.

Acting 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 Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force, which includes the Connecticut State Police and the Stratford, Stamford, Bridgeport, Norwalk and Westport Police Departments.  The case is being prosecuted by Assistant United States Attorney Rahul Kale.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that AMAURY P’DILLA, also known as “Audi,” 32, of New York, N.Y., was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 57 months of imprisonment, followed by five years of supervised release, for distributing cocaine.

P’DILLA is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven.  Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms.  The investigation revealed that, between January 2011 and January 2012, P’DILLA supplied wholesale quantities of cocaine to several New Haven-based drug dealers.

On February 13, 2013, P’DILLA pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine.

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 United States Attorneys S. Dave Vatti and Marc Silverman.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MANOKUS FIELDS, also known as “Fresh,” 30, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 97 months of imprisonment, followed by five years of supervised release, for selling crack cocaine.  On March 1, 2013, a jury found FIELDS guilty of conspiracy to distribute 280 grams or more of cocaine base (“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.

From June through October 2010, FIELDS was regularly intercepted over the wiretap arranging to meet one of Jackson’s associates at locations in Fairhaven and Newhallville to purchase “8-ball” quantities (3.5 grams) of crack cocaine.  FIELDS then divided the crack into $10 and $20 baggies, which he sold to his own customers.

At trial, FIELDS maintained that he bought crack cocaine from the members of the conspiracy, but was not a conspirator himself.  The jury rejected this defense, and convicted FIELDS on the conspiracy count, which was the only charge against him.

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

On June 18, 2013, Jackson 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 has assisted the investigation.

The investigation was funded in significant part by the United States Attorney's Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs.

This matter is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Robert M. Spector.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JUAN VELEZ, 60, of Waterford, pleaded guilty today before United States District Judge Robert N. Chatigny in Hartford to one count of bank fraud stemming from a mortgage fraud scheme.  VELEZ pleaded guilty in the middle of his trial, which began on June 17.

According to court documents and statements made in court, in 2006 and 2007, VELEZ and others engaged in a mortgage fraud scheme involving multiple properties in New London.  As part of the scheme, VELEZ acquired properties from a co-defendant and other individuals and then sold the properties to another co-defendant, Flavia Mendoza, at inflated prices using fraudulently obtained mortgage loans.
In pleading guilty, VELEZ specifically acknowledged that he was involved in the fraudulent transaction of a property located at 624-626 Montauk Avenue in New London.  As established in court and acknowledged by VELEZ during today’s court proceeding, when VELEZ sold the property to Mendoza there were a number of significant false statements contained in the loan paperwork, including Mendoza’s income, her intention to occupy the property as her primary residence, and the amount of money she was providing to purchase the property.  Additionally, the Housing and Urban Development Settlement Statement form (“HUD-1”), which VELEZ signed, falsely stated that Mendoza had provided VELEZ with approximately $29,760 for the purchase of the property when Mendoza had not, in fact,  provided any down payment money for the transaction.  Based on these false statements, Mendoza obtained a mortgage loan in the amount of $492,699 from the bank.

VELEZ, Mendoza and others shared the profits of this and other fraudulently obtained residential mortgage loans, which totaled more than $1.2 million.

Judge Chatigny has scheduled sentencing for September 12, 2013, at which time VELEZ faces a maximum term of imprisonment of 30 years.  Mendoza also has pleaded guilty and awaits sentencing.

This matter is being investigated by the U.S. Postal Inspection Service, the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant United States Attorneys Michael S. McGarry and Peter S. Jongbloed.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DOUGLAS CORBIN, 52,of Stamford, pleaded guilty today before United States District Judge Vanessa L. Bryant in Hartford to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO) stemming from his involvement in organized crime-controlled illegal gambling businesses.

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 and 19 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs in Stamford and Hamden that were controlled by the Gambino Crime Family of La Cosa Nostra.

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 co-defendants has 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.

Judge Bryant has scheduled sentencing for September 12, 2013, at which time CORBIN faces a maximum term of imprisonment of 20 years.  He also has agreed to forfeit $100,000.

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 United States Attorneys Hal Chen and Peter Jongbloed.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that TIFFANY MARTINEZ, 24, of New Haven, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 36 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.

MARTINEZ is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven.  Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms.  During the course of the investigation, MARTINEZ sold crack cocaine out of a Fair Haven residence on behalf of a co-defendant.

MARTINEZ was arrested on June 5, 2012.  On January 4, 2013, she pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute 28 grams or more of cocaine base (“crack”).

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 United States Attorneys S. Dave Vatti and Marc Silverman.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that PAUL E. BRENNAN, 45, formerly of Old Saybrook, Conn., and Phoenix, Ariz., waived his right to indictment and pleaded guilty yesterday before Senior United States District Judge Alfred V. Covello in Hartford to federal fraud offenses.

According to court documents and statements made in court, from approximately March 2009 to August 2011, BRENNAN convinced women with whom he was romantically involved, and other acquaintances, to cash checks for him at financial institutions knowing that the checks were drawn on closed or underfunded accounts and would be returned for nonpayment.  BRENNAN also cashed, or had others cash for him, fraudulent checks at check cashing businesses in Connecticut. 

Also, from approximately November 2010 to June 2011, BRENNAN defrauded individuals by pitching phony investment deals and soliciting money from victims for fraudulent business ventures.  During the scheme, BRENNAN convinced one victim to give him more than $100,000 for property deals and stock market investments, and he convinced other victims to give him money for investments in fraudulently-operated businesses, including BC Property Management and B&D Powerwashing.  BRENNAN also persuaded certain victims to grant him authorization to use their credit cards and lines of credit. 

In total, BRENNAN’s fraud schemes victimized more than 10 individuals and caused nearly $400,000 in losses to those victims.  BRENNAN used much of the money he received from his victims to pay personal expenses.

BRENNAN pleaded guilty to one count of bank fraud and one count of mail fraud.  Judge Covello has scheduled sentencing for September 11, 2013, at which time BRENNAN faces a maximum term of imprisonment of 30 years on the bank fraud count and 20 years on the wire fraud count.
BRENNAN has been detained since his arrest in Arizona on February 27, 2013.

This matter has been investigated by the Federal Bureau of Investigation, the Old Saybrook Police Department and the State’s Attorney for the Judicial District of New London.  The case is being prosecuted by Special Assistant United States Attorney Kerry L. Quinn.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSEPH JACKSON, also known as “Mighty” and “M.I.,” 37, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 300 months of imprisonment, followed by five years of supervised release, for operating an extensive New Haven narcotics trafficking ring.

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 JACKSON and centered in the Newhallville section of New Haven and Hamden.  At the time, JACKSON was one of the principal suppliers of crack cocaine in and around New Haven.  The investigation revealed that JACKSON purchased multiple kilograms of cocaine from various sources of supply, and then converted a large majority of the cocaine into crack cocaine.  JACKSON then provided distribution quantities of crack to others who sold it on his behalf and gave the proceeds to JACKSON.  At times, JACKSON sold crack and powder cocaine to his own customers.

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

“This significant sentence is appropriate for a defendant who operated a massive crack cocaine distribution network in New Haven, and whose multiple prior drug trafficking convictions failed to deter him from criminal behavior,” stated Acting U.S. Attorney Daly.  “Hopefully, this sentence will serve as a warning to others:  Drug trafficking will not be ignored and the federal penalties, especially for repeat offenders, are severe.  I thank the FBI and DEA task forces and the New Haven and Hamden Police Departments for their cooperation and terrific investigative efforts.”

JACKSON’s criminal history includes seven state drug trafficking felony convictions.

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

JACKSON was arrested on October 28, 2010.  On that date, federal agents executed search warrants at various locations, including JACKSON’s residence on Winchester Avenue in New Haven and a West Haven apartment that JACKSON used to process, store and package narcotics.  A search of the Winchester Avenue residence revealed a Taurus .40 caliber semi-automatic pistol with an obliterated serial number, crack cocaine and cash.  A search of the West Haven apartment revealed one kilogram of cocaine, 150 grams of crack packaged for distribution, multiple cell phones, drug packaging materials and cash.

As part of his sentence, Judge Burns ordered JACKSON to forfeit two automobiles, two motorcycles and approximately $72,325.

On February 1, 2013, JACKSON pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack cocaine”).

This matter 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 has assisted the investigation.

The investigation was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs.

This matter is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Robert M. Spector.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that JONATHAN GRACIA, 24, formerly of Middletown, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Thomas P. Smith in Hartford to one count of wire fraud stemming from an investment fraud scheme.

According to court documents and statements made in court, GRACIA falsely told friends and acquaintances that he was developing a website for which he had potential buyers, and that he had developed an “app” for the iPhone, and then solicited investments and loans from his victims in connection with both of these purported ventures.  GRACIA regularly told the victims that they would receive outsized returns on their investments.  As part of the scheme, GRACIA created bogus documents to deceive his victims, including fake checks, bogus bank account statements and a letter that he created on what appeared to be the letterhead of a prominent Connecticut hedge fund management company.  Through this scheme, GRACIA defrauded his victims of at least $200,000.

GRACIA is scheduled to be sentenced by United States District Judge Vanessa L. Bryant on September 10, 2013, at which time he faces a maximum term of imprisonment of 20 years.

GRACIA has been detained since his arrest on March 18, 2013.

This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Branford and Stamford Police Departments.  The case is being prosecuted by Assistant United States Attorney Paul A. Murphy.

In December 2010, the U.S. Attorney’s Office and several law enforcement and regulatory partners announced the formation of the Connecticut Securities, Commodities and Investor Fraud Task Force, which is investigating matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement.  The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.

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

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.  

To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MICHELLE LAUDATO, 35, of Farmington, waived her right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to one count of bank fraud.

According to court documents and statements made in court, between July 2009 and June 2010, LAUDATO used her position as a teller supervisor at a branch of Webster Bank in Bristol to steal more than $178,000 from the CD accounts of at least 18 bank customers.  Thirteen of the 18 bank customers were between the ages of 79 and 99.

As part of the scheme, LAUDATO sometimes withdrew funds from certain CD accounts to replace funds in the CD accounts she had previously accessed.  She also withdrew funds in increments of $10,000 or less to avoid currency transaction reporting requirements.

LAUDATO is scheduled to be sentenced by Chief United States District Judge Alvin W. Thompson on September 6, 2013, at which time she faces a maximum term of imprisonment of 30 years and a fine of up to $1 million.

This matter has been investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Felice M. Duffy.     

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that PATRICK PINTO, 44, of Bohemia, N.Y., waived his right to indictment and pleaded guilty today before United States District Judge Stefan R. Underhill in Bridgeport to one count of conspiring to commit bank bribery while he was an executive of Oxford Collection Agency. 

According to court documents and statements made in court, Oxford Collection Agency (“Oxford”) 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 executives engaged in a multi-year scheme to defraud its lender, Connecticut-based Webster Bank, as well as its investors, clients and the commercial debtors that Oxford collected from.  Oxford’s victims lost more than $12 million as a result of this scheme.

The investigation also revealed that Oxford sometimes obtained and retained business with its banking clients by paying bribes and kickbacks to bank officials.  As part of the scheme, PINTO, a Vice President of Oxford, and other Oxford executives made monthly payments of between $2,500 and $3,500, which were hidden in cigar boxes, to an Assistant Vice President of U.S. Bank in Ohio.

U.S. Bank and Webster Bank received funds through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP).

Judge Underhill has scheduled sentencing for September 9, 2013, at which time PINTO faces a maximum term of imprisonment of five years and a fine of up to $250,000.

PINTO has been released on a $50,000 bond since his arrest on December 7, 2012. 

In May 2012, Richard Pinto, Oxford Collection Agency’s Chairman of the Board, and his son, Peter Pinto, Oxford’s President and Chief Executive Officer, each pleaded guilty to one count of conspiracy to commit wire fraud, bank fraud, and money laundering and one count of wire fraud stemming from this scheme.  In December 2012, Oxford Vice-President of Finance and Chief Financial Officer Randall Silver, Executive Vice President Charles Harris, and Chief Operations Officer Carlos Novelli, also pleaded guilty to various charges.

On January 30, 2013, Richard Pinto, who is now deceased, was sentenced to 60 months of imprisonment.  The other defendants await sentencing.

PATRICK PINTO is the son of the late Richard Pinto.

This matter is being investigated 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.

In December 2010, the U.S. Attorney’s Office and several law enforcement and regulatory partners announced the formation of the Connecticut Securities, Commodities, and Investor Fraud Task Force, which is investigating matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The task force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service-Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.

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

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.

To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, Susan J. Waddell, Special Agent in Charge of U.S. Health and Human Services, Office of Inspector General for New England, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, today announced that a federal jury in Hartford has found SAMIR ZAKY, 38, of Brookfield, guilty of 14 counts of health care fraud and 14 counts of making false statements relating to health care matters.  The trial before Senior U.S. District Judge Alfred V. Covello began on June 10 and the jury returned its verdict this afternoon.

“Health care fraud is a serious crime that undermines our ability to provide care to those who need it most,” stated Acting U.S. Attorney Daly. “Our Office is committed to protecting Medicare beneficiaries and taxpayers from all unscrupulous health care providers in Connecticut.”

“When health providers put personal greed ahead of the provision of quality patient services, they should expect intense scrutiny by law enforcement officials,” stated HHS-OIG Special Agent in Charge Waddell   “Dr. Zaky recklessly ignored the consequences, insisting on cheating taxpayers, patients, and the Medicare program.  Now he is paying the price.”

“Medicare is in place for our nation’s elderly to receive important and often vital health care services,” stated FBI Special Agent in Charge Mertz.  “It is not for unscrupulous doctors and health care professionals to use as a personal slush fund.  The FBI is committed to investigating fraud in both government-sponsored and private health insurance programs and urges anyone with information on a health care fraud to report it their local FBI office.”

According to the evidence at trial, ZAKY is a podiatrist who operated Affiliated Podiatrists, LLC in Brookfield.  From August 2010 to July 2011, ZAKY submitted numerous claims to the Medicare program stating that he had performed nail avulsions, a surgical procedure that requires use of an injectable anesthetic and removes the entire border of a patient’s toenail.  In fact, ZAKY had only clipped or trimmed the patient’s toenails.

Judge Covello has scheduled sentencing for September 10, 2013, at which time ZAKY faces a maximum term of imprisonment of 10 years on each count of health care fraud, and a maximum term of imprisonment of five years of each count of making a false statement.

The government also is seeking to forfeit more than $29,000 in cash found during a search of ZAKY’s residence in August 2010.

ZAKY has been released on bond since his arrest on November 29, 2012.

This matter is being investigated by the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant United States Attorneys David J. Sheldon and Christopher W. Schmeisser and Auditor Kevin Saunders.

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

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that a federal grand jury sitting in Hartford returned an indictment today charging KEVIN J. DUNBAR, 44, of Manchester, and OVES ST. ORBIN WRIGHT, 56, of Massapequa, N.Y., with marijuana trafficking offenses.

According to allegations contained in court documents, on May 19, 2013, U.S. Customs and Border Patrol (CPB) agents in western Texas conducted a search of a tractor trailer and discovered approximately 315 pounds of marijuana (approximately 143 kilograms) secreted in a shipping crate.  CBP agents contacted Drug Enforcement Administration (DEA) agents in El Paso who determined that the crate was destined for a shipping facility in Enfield, Conn.  On May 29, 2013, Connecticut DEA agents established surveillance at the Enfield shipping facility and observed DUNBAR and WRIGHT unpack the crate, load the contents into a van and travel to a storage facility in East Hartford, where they were arrested.

The indictment charges DUNBAR and WRIGHT with one count of conspiracy to possess with the intent to distribute 100 kilograms or more of marijuana, and one count of attempting to possess with the intent to distribute 100 kilograms or more of marijuana.  Each charge carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.

DUNBAR and WRIGHT have been detained since their arrests on May 29.

Acting 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 matter is being investigated by the Drug Enforcement Administration, with the assistance of U.S. Customs and Border Patrol.  The case is being prosecuted by Assistant United States Attorney Geoffrey M. Stone and Special Assistant United States Attorney Michael Ahearn.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that DRAGOS NICOLAE DRAGHICI, 28, a citizen of Romania, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 78 months of imprisonment for participating in an extensive Internet “phishing” scheme.

A phishing scheme uses the Internet to target large numbers of unwary individuals, using fraud and deceit to obtain private personal and financial information such as names, addresses, bank account numbers, credit card numbers and Social Security numbers.  Phishing schemes often work by sending out large numbers of counterfeit e-mail messages that are made to appear as if they originated from legitimate banks, financial institutions or other companies.  The fraudulent email messages ask individuals to click on a hyperlink contained in the email message, which would take the individual to a counterfeit site on the Internet that purports to be the Internet site of the particular bank, financial institution or company.  At the counterfeit Internet site, the individual is then asked to enter information such as the individual’s name, address and credit or debit card numbers.

According to court documents and statements made in court, in June 2005 a resident of Madison, Conn., contacted the FBI in New Haven about a suspicious email that she had received that purported to be from Connecticut-based People’s Bank.  The email stated that the recipient’s online banking access profile had been locked and instructed the recipient to click on a link to a web page where the recipient could enter information to “unlock” his or her profile.  The web page appeared to originate from People’s Bank, but, as the investigation revealed, was actually hosted on a compromised computer in Minnesota.  Any personal identifying and financial information provided by the individual would be sent by email to individuals in Romania, or to a “collector” account, which was an email account used to receive and collect the information obtained through phishing.

DRAGHICI and others were part of a loose-knit conspiracy of individuals from Craiova, Romania, and neighboring areas that shared files, tools, and stolen information obtained through phishing.  The co-conspirators used and shared a number of collector accounts, which contained thousands of email messages that contained credit or debit card numbers, expiration dates, CVV codes, PIN numbers, and other personal identification information such as names, addresses, telephone numbers, dates of birth, and Social Security numbers.  The co-conspirators then used the personal and financial information to access bank accounts and lines of credit and to withdraw funds without authorization, often from ATMs in Romania.

The investigation revealed that DRAGHICI was involved in phishing from at least 2004 through 2010, harvesting email addresses, spamming, setting up counterfeit websites and collecting stolen data.  DRAGHICI identified himself as “a hacker,” and he was involved in obtaining unauthorized access to computers that could be used for spamming and for hosting counterfeit websites.  Analysis of DRAGHICI’s email accounts revealed more than 6,000 stolen debit or credit card account numbers.

In addition to People’s Bank, financial institutions and companies targeted by the defendants included Citibank, Capital One, Bank of America, JPMorgan Chase & Co., Comerica Bank, Regions Bank, LaSalle Bank, U.S. Bank, Wells Fargo & Co., eBay and PayPal.

This investigation has resulted in criminal charges against 19 Romanian citizens.  On January 18, 2007, a grand jury in New Haven returned an indictment charging seven defendants with various offenses stemming from this scheme.  On November 10, 2010, a grand jury returned a second superseding indictment charging an additional 12 defendants, including DRAGHICI.

The first three defendants to face charges were extradited from Bulgaria, Croatia and Canada.  DRAGHICI and seven other defendants were extradited from Romania following the ratification in 2010 of an amended treaty on mutual legal assistance between Romania and the United States.

On December 3, 2012, DRAGHICI pleaded guilty to one count of conspiracy to commit fraud in connection with access devices.

This matter is being investigated by the Federal Bureau of Investigation in New Haven, Conn.
Acting U.S. Attorney Daly and Special Agent in Charge Mertz also acknowledged the critical assistance provided by the U.S. Department of Justice Office of International Affairs, the FBI Legal Attaché in Bucharest, Interpol, the Romanian National Police and the United States Marshals Service.

The case is being prosecuted by Assistant United States Attorney Edward Chang.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that DARRICK COLLETTE, 32, of Putnam, was arrested today and charged by federal criminal complaint with receipt, distribution, and possession of child pornography.

The criminal complaint alleges that on March 19, 2013, an FBI special agent logged onto a publicly available Internet file sharing network and downloaded images and videos of child pornography from a computer connected to the network with an Internet Protocol (IP) address assigned to COLLETTE’s residence.   During a search of COLLETTE’s residence this morning, law enforcement officers seized a computer and multiple external hard drives.

COLLETTE was arrested after the search. 

COLLETTE appeared this afternoon before United States Magistrate Judge Thomas P. Smith in Hartford, who ordered COLLETTE detained pending a hearing that is scheduled for June 18.

If convicted of the charge of receipt and distribution of child pornography, COLLETTE faces a minimum term of imprisonment of five years, a maximum term of imprisonment of 20 years, and a fine of up to $250,000.  If convicted of the charge of possession of child pornography, COLLETTE faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.  The penalties in this matter are enhanced because it is alleged that the defendant possessed depictions of prepubescent minors and minors under the age of 12.

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

This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies.  The Connecticut State Police and Putnam Police Department have assisted the investigation. The case is being prosecuted by Assistant United States 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
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSE DeJESUS, also known as “Flaco,” 29, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 57 months of imprisonment, followed by three years of supervised release, for distributing heroin.

DeJESUS is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven.  Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms.  The investigation revealed that DeJESUS conspired with others to purchase and redistribute heroin.

DeJESUS has been in federal custody since May 21, 2012.  On March 13, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.

DeJESUS’s criminal history includes two prior felony convictions for selling heroin. 

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 United States Attorneys S. Dave Vatti and Marc Silverman.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that CHRISTIANO HENRIQUE De PAULA, also known as “Christiano DePaula,” “Christian DePaula,” and “Christiano Decamargo,” 27, a citizen of Brazil, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 15 months of imprisonment for illegally reentering the U.S. after he was deported.

According to court documents and statements made in court, De PAULA was deported from the U.S. to his native Brazil in May 2008 after his conviction in New Jersey for aggravated assault with a weapon.  He illegally returned to the U.S. and, on August 25, 2008, pleaded guilty in U.S. District Court in the Southern District of Texas to illegal entry of a removed alien.  De PAULA was sentenced to 20 days of imprisonment and, in October 2008, was deported to Brazil.

On June 27, 2012, De PAULA was arrested by Bridgeport Police after he was involved in an altercation with another individual at a local restaurant.  De PAULA had been using the name “Christiano Decamargo.”

De PAULA has been detained since his arrest.  On March 6, 2013, he pleaded guilty to one count of illegal reentry of a removed alien.

This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, with the assistance of the Bridgeport Police Department.  The case was prosecuted by Assistant United States Attorney Hal Chen. 

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that HEATH TRAHAN, 39, formerly of North Windham, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 204 months of imprisonment, followed by 15 years of supervised release, for producing and distributing child pornography.

According to court documents and statements made in court, TRAHAN was arrested on October 14, 2011, after investigators determined that he had emailed images of child pornography to an individual in New Jersey.  At the time of his arrest, investigators seized several computers, related components and a mobile phone.  Forensic analysis of the seized phone determined that TRAHAN used it to take photographs of two minor children engaging in sexually explicit conduct.  Examination of the seized computers also revealed approximately 500 images and 60 videos of child pornography, which had not been produced by TRAHAN.

TRAHAN has been detained since his arrest.  On December 20, 2012, he pleaded guilty to one count of production of child pornography and one count of distribution of child pornography.

This matter was investigated by Homeland Security Investigations with the assistance of the Connecticut State Police.  The case was prosecuted by Assistant United States Attorneys Neeraj N. Patel and Deborah R. Slater.  Assistant United States Attorney Fabiana Pierre-Louis of the District of New Jersey has assisted in the investigation and prosecution of this matter.

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
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that DAVID MOFFA, 53, of Middlebury, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 24 months of imprisonment, followed by one year of supervised release, for participating in a scheme to direct illegal contributions into the campaign of a candidate for the U.S. House of Representatives.  MOFFA, who is a former President of the American Federation of State, County and Municipal Employees (AFSCME), 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.

Paul Rogers and George Tirado co-owned Smoke House Tobacco, 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, Tirado, MOFFA, Harry Raymond “Ray” Soucy, Benjamin Hogan and others engaged in a scheme to direct conduit 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.  As part of the scheme, the co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign.  These individuals permitted checks to be written in their own names to the campaign, and certain conspirators reimbursed them with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.

The investigation revealed that, on November 2, 2011, MOFFA, Rogers and another RYO smoke shop owner met at Smoke House Tobacco in Waterbury and MOFFA advised the other attendees that Soucy could help the RYO smoke shop owners prevent the enactment of harmful legislation.  MOFFA then called Soucy and, shortly thereafter, Soucy arrived at Smoke House Tobacco and joined the meeting.  Soucy stated that he was a “friend” of Donovan and could assist in arranging a meeting between RYO smoke shop owners and Donovan.

On November 30, 2011, MOFFA met with Soucy, Rogers and another RYO owner at Smoke House Tobacco.  During the meeting, MOFFA discussed with the RYO smoke shop owners that they should make a $5,000 contribution to the Donovan for Congress campaign at a fundraising event to be held on December 8, 2011.  MOFFA volunteered to serve as a conduit contributor in order conceal the fact that the RYO smoke shop owners were actually financing the contributions.  On that date, MOFFA told the RYO smoke shop owners “You give me the money, I’ll give you a check.”

At a meeting at Smoke House Tobacco on December 8, 2011, Rogers and another RYO smoke shop owner provided MOFFA with $2,500 in U.S. currency.  MOFFA then wrote a check for $2,500 in his wife’s name to Donovan for Congress and provided Soucy with his wife’s biographical information so that Soucy could fill in a contribution envelope provided by the campaign.  Soucy, Rogers and the other shop owner then went to the fundraising event, where they delivered two $2,500 contributions, including the contribution in MOFFA’s wife’s name to the campaign.  Following the event, MOFFA met the group for dinner.

On approximately January 31, 2012, the Donovan for Congress campaign submitted to the Federal Election Commission (“FEC”) a report of the campaign’s receipts and disbursements for the period October 1, 2011 through December 31, 2011.  The report falsely reported that it had received a $2,500 contribution from MOFFA’s wife when, in fact, neither MOFFA nor his wife had made a contribution to the campaign.

On June 1, 2012, FBI special agents investigating this matter interviewed MOFFA.  During the interview, MOFFA falsely stated that he did not receive any cash in exchange for writing the check to the Donovan for Congress campaign.

On November 2, 2012, MOFFA pleaded guilty to one count of conspiring to make false statements to the FEC and to impede the FEC’s enforcement of federal campaign finance laws. 

Soucy, Rogers, Tirado, Hogan, Waterbury business owner Daniel Monteiro and Donovan for Congress campaign manager Joshua Nassi also pleaded guilty to charges related to this scheme and await sentencing.  In addition, on May 21, 2013, a jury found Robert Braddock, Jr., the campaign’s finance director, guilty of one count of conspiring to make false statements to the FEC and to impede the function of the FEC, one count of accepting more than $10,000 in federal campaign contributions made by persons in the names of others and one count of causing a false report to be filed with the FEC.  He also awaits sentencing.

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

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that two Romanian citizens were sentenced today by United States District Judge Janet C. Hall in New Haven for participating in an extensive Internet “phishing” scheme.  BOGDAN BOCEANU, 30, was sentenced to 80 months of imprisonment, and ANDREI BOLOVAN, 29, was sentenced to 27 months of imprisonment.

A phishing scheme uses the Internet to target large numbers of unwary individuals, using fraud and deceit to obtain private personal and financial information such as names, addresses, bank account numbers, credit card numbers and Social Security numbers.  Phishing schemes often work by sending out large numbers of counterfeit e-mail messages that are made to appear as if they originated from legitimate banks, financial institutions or other companies.  The fraudulent email messages ask individuals to click on a hyperlink contained in the email message, which would take the individual to a counterfeit site on the Internet that purports to be the Internet site of the particular bank, financial institution or company.  At the counterfeit Internet site, the individual is then asked to enter information such as the individual’s name, address and credit or debit card numbers.

According to court documents and statements made in court, in June 2005 a resident of Madison, Conn., contacted the FBI in New Haven about a suspicious email that she had received that purported to be from Connecticut-based People’s Bank.  The email stated that the recipient’s online banking access profile had been locked and instructed the recipient to click on a link to a web page where the recipient could enter information to “unlock” his or her profile.  The web page appeared to originate from People’s Bank, but, as the investigation revealed, was actually hosted on a compromised computer in Minnesota.  Any personal identifying and financial information provided by the individual would be sent by email to individuals in Romania, or to a “collector” account, which was an email account used to receive and collect the information obtained through phishing.

BOCEANU, BOLOVAN and others were part of a loose-knit conspiracy of individuals from Craiova, Romania, and neighboring areas that shared files, tools, and stolen information obtained through phishing.  The co-conspirators used and shared a number of collector accounts, which contained thousands of email messages that contained credit or debit card numbers, expiration dates, CVV codes, PIN numbers, and other personal identification information such as names, addresses, telephone numbers, dates of birth, and Social Security numbers.  The co-conspirators then used the personal and financial information to access bank accounts and lines of credit and to withdraw funds without authorization, often from ATMs in Romania.

The investigation revealed that BOCEANU was a prolific trafficker of stolen information.  He exchanged with a co-conspirator emails that contained numerous credit card numbers that had been obtained through the scheme, and received from another co-conspirator credit card numbers, account user names and passwords, as well as other identifying information of numerous victims.  More than 12,000 credit or debit card numbers were found in BOCEANU’s email accounts between 2004 and 2009.  BOCEANU also purchased a machine used to encode stolen account information on magnetic strips on credit and debit cards.

BOLOVAN was involved in the phishing conspiracy from 2004 through 2007, buying and selling stolen information, harvesting email addresses and spamming.  Analysis of BOLOVAN’s email accounts revealed more than 1,200 stolen credit or debit card numbers.

In addition to People’s Bank, financial institutions and companies targeted by the defendants included Citibank, Capital One, Bank of America, JPMorgan Chase & Co., Comerica Bank, Regions Bank, LaSalle Bank, U.S. Bank, Wells Fargo & Co., eBay and PayPal.

This seven-year investigation has resulted in criminal charges against 19 Romanian citizens.  On January 18, 2007, a grand jury in New Haven returned an indictment charging seven defendants with various offenses stemming from this scheme.  On November 10, 2010, a grand jury returned a second superseding indictment charging an additional 12 defendants, including BOCEANU and BOLOVAN.

The first three defendants to face charges were extradited from Bulgaria, Croatia and Canada.  BOCEANU, BOLOVAN and six other defendants were extradited from Romania following the ratification in 2010 of an amended treaty on mutual legal assistance between Romania and the United States.

On December 5, 2012, BOLOVAN pleaded guilty to one count of conspiracy to commit fraud in connection with access devices.  On December 11, 2012, a jury found BOCEANU guilty of the same charge, as well as one count of conspiracy to commit bank fraud.

This matter is being investigated by the Federal Bureau of Investigation in New Haven, Conn.

Acting U.S. Attorney Daly and Special Agent in Charge Mertz also acknowledged the critical assistance provided by the U.S. Department of Justice Office of International Affairs, the FBI Legal Attaché in Bucharest, Interpol, the Romanian National Police and the United States Marshals Service.

The case is being prosecuted by Assistant United States Attorneys Edward Chang and Sarala Nagala.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that RAYMOND SERRANO, 22, of New Haven, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, followed by four years of supervised release, for distributing narcotics in New Haven.

According to court documents and statements made in court, in April 2011, the Bureau of Alcohol, Tobacco, Firearms and Explosives, in conjunction with the Drug Enforcement Administration and the New Haven Police Department’s Tactical Narcotics Unit, began an intensive investigation into drug dealing in the vicinity of 36 Maltby Place in the Fair Haven section of New Haven.  The investigation, which included the use of court-authorized wiretaps, law enforcement surveillance and controlled purchases of crack cocaine and cocaine from a number of individuals, revealed that SERRANO and others operated an open-air narcotics market where they sold crack cocaine, cocaine, and heroin to customers on a daily basis.

SERRANO has been detained since his arrest on November 16, 2011.  On October 1, 2012, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 28 grams or more of cocaine base (“crack”), a quantity of cocaine and a quantity of heroin.

This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the New Haven Police Department’s Tactical Narcotics Unit.  The Stamford Police Department has provided critical assistance to the investigation.

This case is being prosecuted by Assistant United States Attorneys Anthony E. Kaplan and Marc H. Silverman.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that CHRISTINA TARTAGLIO, 34, of Bridgeport, waived her right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to one count of wire fraud related to her embezzlement from her Shelton employer.

According to court documents and statements made in court, between 2008 and 2011, TARTAGLIO was employed as a corporate travel consultant, office manager, and accounting assistant for a travel agency located in Shelton.  During that time TARTAGLIO embezzled from the travel agency by drafting refund checks from the agency to clients who were not due any refunds, forged the clients’ signatures, endorsed the checks, and then deposited them into her personal bank account.  Also, where a commission was due to the travel agency, TARTAGLIO entered all or part of the commission as a credit payable to a random client or a fictitious name and then wrote a check for the credit amount to that name.  She then endorsed each check and deposited it into her bank account.  She also created checks payable to vendors or suppliers for operating expenses, changed the payee on a check to a fictitious name created by her, endorsed and then deposited the checks in her account.

Through this scheme, TARTAGLIO embezzled $94,237.05.

TARTAGLIO is scheduled to be sentenced by United States District Judge Robert N. Chatigny on September 3, 2013, at which time she faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.

This matter is being investigated by the United States Secret Service, the Shelton Police Department and the Connecticut Financial Crimes Task Force, which includes federal, state and local law enforcement agencies.  The case is being prosecuted by Assistant United States Attorney Felice M. Duffy.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that TYRONE BURRUS, 48, of Waterbury, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 27 months of imprisonment, followed by four years of supervised release, for selling crack cocaine.

According to court documents and statements made in court, in early 2012, the Bureau of Alcohol, Tobacco, Firearms and Explosives began an investigation into the distribution of crack cocaine and related criminal activity in the area of Locust Street in Waterbury.  On two occasions in April 2012, BURRUS sold crack to individuals working with law enforcement.

On January 24, 2013, BURRUS pleaded guilty to one count of possessing with the intent to distribute and distributing cocaine base (“crack”).

BURRUS’s criminal history includes 15 felony convictions, and he currently has additional crack distribution charges pending in state court.

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Waterbury and Bridgeport Police Departments.  This case is being prosecuted by Assistant United States Attorney Michael E. Runowicz.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that NOUEL ALBA, 37, of Bronx, N.Y., pleaded guilty today before United States Magistrate Judge William I. Garfinkel in Bridgeport to engaging in a fraudulent fundraising scheme related to the Sandy Hook Elementary School shooting tragedy, and lying to FBI agents investigating her conduct.

“This defendant’s criminal conduct exploited the victims of this tragedy, their grieving families and caring individuals who sought to help in any way they could,” stated Acting U.S. Attorney Daly.  “As charity and fundraising scams prey upon vulnerable people and have a corrosive effect on the trust and generosity of all citizens, investigators will continue to monitor the Internet to uncover similar schemes.  While we believe that this case has had a deterrent effect on other potential bad actors, individuals who ignore this warning and operate these schemes face federal or state prosecution to the fullest extent permitted by law.”

“The thought that someone would scheme so quickly and deliberately to benefit from an unspeakable tragedy is beyond belief,” stated FBI Special Agent in Charge Mertz.  “While there wasn’t a substantial loss of money in this investigation, there were losses beyond any pecuniary measure.  Ms. Alba’s actions caused undue sadness and harm to those already suffering and to those involved with running legitimate and caring charities.  While her guilty plea is just, our thoughts today are with the victims of the Newtown tragedy and their families and friends.”

According to court documents and statements made in court, shortly after the shooting that claimed 26 lives at Sandy Hook Elementary School in Newtown on December 14, 2012, ALBA used Facebook, email, text messages and telephone calls to falsely claim to be the aunt of a child killed in the shooting, and to supply fictitious details about the aftermath of the shooting, in order to solicit donations on the pretext that she was collecting for a “funeral fund” on behalf of the child’s family and the families of other shooting victims.  As part of the scheme, ALBA also emailed Sandy Hook Elementary School PTA officers and then touted her fictional personal relationship with the PTA to support her false claim and induce donors to send her money.  At ALBA’s instruction, donor-victims sent money to her PayPal account.

When contacted by FBI special agents investigating fundraising and charity scams related to the shooting, ALBA attempted to hide her criminal conduct by falsely stating that she did not post information related to Newtown on her Facebook account, have contact with anyone about such postings, or recently access her PayPal account.

ALBA pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of making false statements, which carries a maximum term of imprisonment of five years.  She is scheduled to be sentenced by United States District Judge Michael P. Shea in Hartford on August 29, 2013.

ALBA has been released on a $50,000 bond since her arrest on December 27, 2012.

Individuals with knowledge of fraudulent fundraising and charity schemes are encouraged to contact the FBI in Connecticut at 203-777-6311.

This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Jonathan Francis.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that ALISHA FRASER, 27, of Brooklyn, N.Y., pleaded guilty yesterday before United States Magistrate Judge Thomas P. Smith in Hartford to one count of 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 is scheduled to be sentenced by United States District Judge Vanessa L. Bryant on August 28, 2013, at which time FRASER faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.

FRASER was arrested on February 25, 2013, and is currently released on a $25,000 bond.

This matter was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Felice Duffy.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSEPH RAO, 53, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 91 months of imprisonment, followed by five years of supervised release.  On February 4, 2013, RAO pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute oxycodone and cocaine.

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

RAO was arrested on federal charges on June 6, 2012.  At that time, he was serving an effective state sentence of 60 months of imprisonment stemming from several arrests, including an arrest by the New Haven Police Department on April 1, 2011, after he conducted a sale of oxycodone in a restaurant parking lot.  On that date, a search of RAO’s person and vehicle revealed $9,661 in U.S. currency and more than 100 oxycodone pills.

Judge Burns ordered that RAO begin serving his 91-month federal sentence after he completes his state sentence.

RAO’s criminal history includes 26 convictions.

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 United States Attorneys S. Dave Vatti and Marc Silverman.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that BERNARD McALLISTER, 42, of Lisbon, pleaded guilty today before United States District Judge Stefan R. Underhill 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, McALLISTER possessed 19 firearms that he and another individual 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, McALLISTER had been convicted of multiple felony offenses in several states, including burglary, robbery, breaking and entering, and making terroristic threats with intent to terrorize another.  It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.

Judge Underhill has scheduled sentencing for August 29, 2013.  McALLISTER 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, McALLISTER faces a minimum term of imprisonment of 15 years and a maximum term of imprisonment of life.

McALLISTER has been detained since November 18, 2010, when he was arrested in Massachusetts on related charges.  After he was arrested, McALLISTER admitted that he had been planning to leave the country.

On May 24, 2013, McALLISTER 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 United States Attorneys Jonathan S. Freimann and Robert M. Spector.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ROBERT MELILLO, 25, of Wallingford, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 30 months of imprisonment, followed by three years of supervised release, for distributing oxycodone and marijuana.

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

The investigation revealed that MELILLO conspired with others to distribute oxycodone and marijuana, and that he traveled to California on multiple occasions to purchase large quantities of marijuana, which he then shipped back to Connecticut to be distributed in the New Haven area.

On August 29, 2012, law enforcement officers stopped MELILLO upon his arrival at the San Francisco International Airport and seized $30,000 in U.S. currency from his carry-on bag.

MELILLO was arrested on February 1, 2013 and has been released on a $100,000 bond since shortly after his arrest.  On March 1, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute oxycodone and marijuana.

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 United States Attorneys S. Dave Vatti and Marc Silverman.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ALAN EMMETT BRADLEY, 57, formerly of Norwalk, Conn., and Ocoee, Fla., was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 24 months of imprisonment, followed by two years of supervised release, for defrauding Connecticut’s Medicaid program.  BRADLEY also was ordered to pay $151,898.75 in restitution.

According to court documents and statements made in court, BRADLEY, a certified alcohol and drug abuse counselor, obtained the Medicaid identification numbers of various Medicaid clients and used the identification numbers to submit hundreds of claims to Connecticut’s Department of Social Services.  The claims alleged that BRADLEY performed 75 to 80-minute individual psychotherapy sessions to these Medicaid clients at his office in Norwalk.  Hundreds of these counseling sessions did not occur and, for many of them, BRADLEY was actually living and attending school in Florida.

Through this scheme, BRADLEY defrauded the Connecticut Medicaid program of $151,898.75.

The Connecticut Medicaid program is a joint federal-state program designed primarily to finance the provision of medical services to the indigent.  It is administered in Connecticut by the Department of Social Services, and is also supervised by the federal Centers for Medicare and Medicaid Service.

BRADLEY was arrested in Florida on May 17, 2012.  He has been detained since November 29, 2012, after he violated conditions of his pretrial release.  On March 13, 2013, he pleaded guilty to one count of health care fraud.

This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation and the Connecticut Department of Social Services. The case was prosecuted by Special Assistant United States Attorney Michael Ahearn, Assistant United States Attorney David Sheldon and Auditor Kevin Saunders.

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

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DEAN DePRETA, 45, of Stamford, pleaded guilty today before United States District Judge Vanessa L. Bryant in Hartford to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO) stemming from his involvement in illegal gambling businesses.  JOHN LIQUORI, 43, of North Haven, previously pleaded guilty to the same charge and was sentenced today by Judge Bryant to 18 months of imprisonment, followed by three years of supervised release.  LIQUORI also was ordered to forfeit $60,000.

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, DePRETA, LIQUORI and 18 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs in Stamford and Hamden.  DePRETA and LIQUORI are alleged associates of the Gambino organized crime family.

The investigation, which included the use of court-authorized wiretaps, revealed that DePRETA headed 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.  LIQUORI and Michael Pepe worked with DePRETA to operate the sports book in the greater New Haven area and managed a large number of bookies and gamblers.

FBI analysis of the sports-betting web site utilized by the co-defendants has 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, DePRETA, with the assistance of LIQUORI, Pepe and others, operated a card gambling club at 2965 State Street in Hamden, where a house percentage, commonly referred to as a “rake,” was collected from every hand played.

In pleading guilty, DePRETA also admitted that he committed acts of extortion while leading this racketeering enterprise.

DePRETA has been detained since his arrest on June 13, 2013.  He is scheduled to be sentenced on August 28, 2013, at which time he faces a maximum term of imprisonment of 20 years.  He also has agreed to forfeit $300,000.

LIQUORI pleaded guilty to one count of racketeering conspiracy on March 13, 2013.

On August 6, 2012, Pepe pleaded guilty to two counts of operating an illegal gambling business and, on November 16, 2012, he was sentenced to 12 months and one day of imprisonment and was ordered to forfeit $100,000.

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 United States Attorneys Hal Chen and Peter Jongbloed.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ELIZABETH JO GUTIERREZ, 47, of Ridgefield, pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to embezzling $30,000 from the Fairfield Housing Authority.

The Fairfield Housing Authority administers federal housing programs for the U.S. Department of Housing and Urban Development with the mission of providing affordable housing for eligible low-income families and the elderly.

According to court documents and statements made in court, GUTIERREZ served as the Executive Director for the Fairfield Housing Authority from approximately July 2010 to December 2011.  In the summer of 2011, GUTIERREZ issued two checks, each in the amount of $15,000, from the Fairfield Housing Authority’s checking account and subsequently deposited them into her own checking account.

GUTIERREZ pleaded guilty to one count of theft concerning programs receiving federal funds.  She is scheduled to be sentenced by United States District Judge Robert N. Chatigny on August 27, 2013, at which time she faces a maximum term of imprisonment of 10 years.

GUTIERREZ has been released on a $50,000 bond since her arrest on January 31, 2013.

This matter was investigated by the Department of Housing and Urban Development – Office of Inspector General.  The case is being prosecuted by Special Assistant United States Attorney Sean Beaty.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that two Stamford men involved in illegal gambling businesses were sentenced today by United States District Judge Vanessa L. Bryant in Hartford.  THOMAS UVA IV, also known as “Little T,” 32, was sentenced to 21 months of imprisonment, followed by three years of supervised release, and JOHN COLELLO, 54, was sentenced to six months of imprisonment, followed by two years of supervised release.  UVA and COLLELLO also were ordered to forfeit $100,000 and $1,000, respectively.

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, UVA, COLELLO and 18 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs.  UVA is an alleged associate of the Gambino organized crime family.

The investigation, which included the use of court-authorized wiretaps, revealed that UVA, COLELLO and others were 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.  In addition, UVA and others operated a card gambling club at 514 Glenbrook Road in Stamford, and certain other co-conspirators operated card gambling clubs at 859 East Main Street in Stamford and 2965 State Street in Hamden.

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

On March 13, 2013, UVA pleaded guilty to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO) and one count of money laundering, and COLELLO pleaded guilty to one count of operating an illegal gambling business.

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 United States Attorneys Hal Chen and Peter Jongbloed.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut; Susan J. Waddell, Special Agent in Charge of U.S. Health and Human Services, Office of Inspector General for New England, William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that GARY F. ANUSAVICE, also known as “Gary Andrews,” “Gary Andrus” and “Gary Francis,” 60, of North Kingstown, R.I., pleaded guilty today before United States Magistrate Judge William I. Garfinkel in Bridgeport to health care fraud and tax evasion offenses stemming from his involvement in a $20 million Medicaid fraud scheme.

“This defendant’s illegal operation of three Connecticut dental clinics, and his failure to pay income on the substantial amount of money he received from his involvement in this scheme, has siphoned millions of dollars from the Medicaid program and the U.S. Treasury,” said Acting U.S. Attorney Daly.  “Health care fraud increases costs and threatens the integrity of our health care system, and we are committed to protecting American taxpayers by prosecuting these crimes.  I want to thank HHS-OIG, IRS-Criminal Investigation and the FBI for their investigative efforts, and thank the Connecticut Attorney General’s Office, which has provided important assistance during the course of this investigation.”

“Although this defendant was barred from Medicaid and other Government health programs after his health care fraud conviction in 1998, he continued to bill these programs using an elaborate scheme to conceal his involvement,” said HHS-OIG Special Agent in Charge Waddell.  “Working with Federal and State partners, our investigators effectively penetrate such schemes and help bring suspects to justice.”

“When a health care provider steals from the government via Medicaid Fraud, the money is part of the untaxed underground economy,” said IRS Criminal Investigation Special Agent in Charge Offord.  “Gary Anusavice admitted his guilt today, and also agreed to forfeit significant assets that he purchased with the proceeds of the Medicaid fraud scheme.”

“Despite being excluded from participating in both Medicare and Medicaid, Mr. Anusavice devised and orchestrated elaborate schemes to defraud these government-sponsored health care programs with undaunted avarice and greed,” said FBI Special Agent in Charge Mertz.  “His frauds not only greatly undermined the financial security of these vital programs but also impacted the ability of legitimate medical professionals to provide important health services to those truly in need.”

According to court documents and statements made in court, in July 1997, ANUSAVICE was convicted in Massachusetts state court for submitting false health care claims in relation to his involvement in dental clinics.  He subsequently surrendered his dentistry licenses in Massachusetts and Rhode Island for five years.  After additional investigations, ANUSAVICE surrendered his right to practice dentistry in Rhode Island for 18 months in 2005, and the Massachusetts Board of Registration in Dentistry permanently revoked ANUSAVICE’s license to practice dentistry in Massachusetts in 2006.  As of May 1998, ANUSAVICE has been excluded from participation in Medicare and state health care programs, including Medicaid.

From 2008 to April 2011, ANUSAVICE owned and operated several dental clinics in Connecticut, but used a licensed dentist to act as the nominal head of the clinics.  The clinics included Landmark Dental in West Haven, Dental Group of Connecticut in Trumbull, and Dental Group of Stamford.  ANUSAVICE and the licensed dentist provided false Medicaid Provider Enrollment Applications to DSS that did not disclose ANUSAVICE’s controlling interest in the clinics or his disciplinary history.  As a result of this fraud, the Connecticut Medicaid program reimbursed ANUSAVICE’s dental practices nearly $21 million.

ANUSAVICE actively managed the dental clinics, recruited dentists and oversaw their hiring.  At various times, he trained personnel on Medicaid billing codes and procedures, and also determined salary and compensation for the clinics’ doctors and support staff.

ANUSAVICE attempted to conceal his involvement in these dental practices by establishing multiple nominee entities, including AMZ Consulting, Inc., Haven Consulting, Inc. and New England Preservation Services, Inc., and he directed his business partners and employees to make checks payable to these entities.  ANUSAVICE deposited the checks into bank accounts he opened for the entities, and then used the funds to purchase assets for his personal use, including a residence in North Kingstown, R.I, a 33-foot yacht and a Mercedes Benz.

ANUSAVICE received $3,325,272 in income from the dental clinics, but did not file federal tax returns for the 2008 through 2011 tax years, resulting in a tax loss to the government of more than $1.2 million.

ANUSAVICE pleaded guilty to one count of health care fraud, which carries a maximum term of imprisonment of 10 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years.  He is scheduled to be sentenced by United States District Judge Vanessa L. Bryant in Hartford on August 23, 2013.

ANUSAVICE has agreed to forfeit his Rhode Island property, yacht and Mercedes Benz, as well as $91,700 in cash that was seized from his residence on May 24, 2012.  He also has agreed to pay back taxes in the amount of $1,894,258.71, plus applicable interest and penalties.  The tax loss figure includes more than $600,000 in federal taxes that ANUSAVICE failed to pay from 1990 to 2003.

In a related matter, the Connecticut Attorney General’s Office today announced that it has reached a settlement with ANUSAVICE and six of his management and consulting companies.  Under the terms of the settlement, ANUSAVICE has agreed to pay the state $9.9 million, which represents treble damages under the Connecticut False Claims Act and restitution under the Connecticut Unfair Trade Practices Act.
ANUSAVICE was arrested on May 24, 2012, and has been released on a $500,000 bond since October 2012.

This matter is being investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Internal Revenue Service-Criminal Investigation, and the Federal Bureau of Investigation.  The Connecticut Attorney General’s Office provided assistance and cooperation throughout the investigation.

This case is being prosecuted by Assistant United States Attorneys Susan Wines and Richard Molot, and Trial Attorney Sean Beaty of the Tax Division of the Department of Justice.

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

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that the Department of Justice has reached a settlement agreement with the City of New Haven under which the City agrees to implement training and ensure its policies comply with the effective communication requirements under the Americans with Disabilities Act (ADA).  The City of New Haven voluntarily agreed to enter into the settlement agreement during the Justice Department’s investigation into allegations that the City’s Livable City Initiative failed to effectively communicate with persons who are deaf or hard of hearing.

The ADA requires that “public entities,” such as local governments and police departments, ensure effective communication with qualified individuals with disabilities.  The agreement, which covers all departments of the City of New Haven, requires the City to:

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

“We commend the City of New Haven for agreeing to enter into this settlement agreement and for the assurance that critical and effective communication will be provided to persons who are hearing impaired,” stated Acting U.S. Attorney Daly.  “The City’s cooperation in this investigation and its agreement today reflects the City’s strong commitment to keep residents safe and to uphold their civil rights.”

This matter was handled by Assistant United States Attorney Ndidi Moses of the District of Connecticut, with the assistance of the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.

Individuals who believe that they may have been victims of discrimination can file a complaint with the U.S. Attorney’s Office by calling 203-821-3700.  Additional information about the ADA can be found at www.ada.gov or by calling the Department’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD).

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

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, today announced that a federal jury in New Haven has found Meriden Police Officer EVAN COSSETTE, 26, guilty of one count of using unreasonable force and one count of obstructing a federal investigation by preparing a false report.  The trial before United States District Judge Janet Bond Arterton began on May 28 and the jury returned its verdict this afternoon after deliberating for less than three hours.

According to evidence at trial, on May 1, 2010, COSSETTE and another Meriden Police officer responded to a reported hit-and-run incident.  After identifying “P.T.” as the driver likely involved in the hit-and-run incident, the officers placed him under arrest.  COSSETTE transported P.T. to the Meriden Police Department and escorted a compliant and handcuffed P.T. from the squad car to the holding cell.  Once inside the holding cell, COSSETTE firmly shoved a retreating P.T., causing him to fall backward and strike his head on a cement cell bench.  P.T. suffered a 12-centimeter gash to the back of his head and lost consciousness. P.T. was then transported to the hospital for treatment.

COSSETTE obstructed justice by making false and misleading statements, as well as material omissions, in his report relating to the arrest and processing of P.T. in order to cover up and create a false justification for his assault upon P.T.

“We thank the members of the jury for their thoughtful consideration of the evidence,” stated Acting U.S. Attorney Daly.  “Our system of justice cannot tolerate abuses by police officers, and today’s verdict helps preserve the integrity of a profession that is entrusted with protecting our liberties as well as our safety.”

“As law enforcement officers, we are measured by a higher standard because we are both sworn and privileged to uphold the United States Constitution,” stated FBI Special Agent in Charge Mertz.  “We must meet that standard with unfailing integrity and honor.  Those who cannot meet that essential standard should not be wearing a badge.  While there is no joy in today’s guilty verdict, we know that justice has been served.”

Judge Arterton has scheduled sentencing for August 28, 2013, at which time COSSETTE faces a maximum term of imprisonment of 30 years.

This matter was investigated by the Federal Bureau of Investigation and the Connecticut State Police.  The case is being prosecuted by Assistant United States Attorneys Paul H. McConnell and David E. Novick.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that JOSEPH KRIZ, 50, of Wilton, was sentenced on Friday, May 31, by United States District Judge Janet C. Hall in New Haven to 30 months of imprisonment, followed by three years of supervised release, for his role in a Fairfield County mortgage fraud scheme.

According to court documents and statements made in court, KRIZ practiced as a real estate attorney and was a licensed mortgage broker.  Beginning in approximately 2005, KRIZ partnered with William A. Trudeau, Jr. to purchase, develop and sell properties by defrauding banks and mortgage lenders.  As part of the scheme, Trudeau, KRIZ and others submitted false mortgage loan applications to financial institutions to obtain mortgages on various properties in Fairfield County in order to develop and sell the properties for profit, and to pay off debts owed to “hard money” lenders from whom they had previously obtained high interest loans.  The mortgage applications, which included false income information and omitted the mortgage applicants’ true indebtedness, caused the financial institutions to issue mortgage loans on properties that Trudeau, KRIZ and their co-conspirators would not have otherwise been qualified to purchase, allowing the applicants to qualify for mortgages that far exceeded their ability to repay the loans.

Through this scheme, Trudeau, KRIZ and others fraudulently obtained more than $4 million in mortgage loans to purchase six properties in Westport and Newtown.  To date, mortgage lenders have lost more than $1.9 million.

In addition, KRIZ stole approximately $3.5 million from his IOLTA account in order to service the various loans he and his co-conspirators had taken to secure the properties.

Trudeau also defrauded private lenders of a total of more than $1 million.

On August 4, 2008, KRIZ pleaded guilty to one count of conspiracy to commit bank fraud, one count of fraud in loan and credit applications, and one count of mail fraud. 

KRIZ cooperated with the investigation and testified at Trudeau’s trial.  On October 9, 2012, a jury found Trudeau guilty of one count of conspiracy to commit bank fraud, mail fraud and wire fraud, and one count of wire fraud.  On February 12, 2013, Trudeau was sentenced to 188 months of imprisonment.

This matter was investigated by the Federal Bureau of Investigation.  The case was prosecuted by Assistant United States Attorneys Rahul Kale and Christopher Schmeisser.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov

Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in Bridgeport has returned a 13-count indictment charging TIMOTHY FORBES, 31, of Allentown, Pa.; WILLIAM DAVIS, 25, of Allentown; JEFFREY HOUSTON, 26, of Allentown; CHRISTOPHER GAY, 27, of Bronx, N.Y., and KASAM HENNIX, 39, of Easton, Pa. with kidnapping four Meriden residents and robbing a Fairfield jewelry store of millions of dollars in merchandise in April.  The indictment was returned yesterday.

As alleged in previously filed court documents, at approximately 9:00 p.m. on April 11, at least four men wearing masks and gloves, two of whom were armed with handguns, broke into an apartment on Gravel Street in Meriden, Conn., bound four victims with duct tape and covered their heads with pillowcases, towels and jackets.  Three of the perpetrators then forced two of the victims into a victim’s vehicle and drove to Lenox Jewelers in Fairfield, Conn., where the two victims worked.  At the store, the perpetrators stole jewelry, watches and loose diamonds valued at between four and five million dollars.  They then fled in the victim’s car, leaving the two victims bound inside the store.

The indictment charges each of the five defendants with one count of conspiracy to commit kidnapping, four counts of kidnapping, one count of conspiracy to interfere with commerce through robbery, two counts of interference with commerce through robbery, two counts of interference with commerce by threats and violence, and three counts of use of a firearm during and in relation to a crime of violence.

DAVIS, HOUSTON, GAY and HENNIX have been detained since their arrests on May 22, and FORBES has been detained since his arrest on state charges earlier this month.

The indictment also seeks the forfeiture of gemstones, jewelry, watches and more than $127,000 in cash seized from DAVIS, GAY and HOUSTON on May 22, as well as HOUSTON’s vehicle.

If convicted, the defendants face a maximum term of imprisonment of life on each of the kidnapping charges, a maximum term of imprisonment of 20 years on each of the interference with commerce charges, and a consecutive term of imprisonment of seven years on each charge of using a firearm during the crime.

The case has been assigned to United States District Judge Robert N. Chatigny in Hartford.

Acting 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 United States Marshals Service, Federal Bureau of Investigation, Fairfield Police Department and Meriden Police Department.  Acting U.S. Attorney Daly also acknowledged the assistance provided by the U.S. Marshals Service and FBI in New York and Pennsylvania; the York, Allentown and Bethlehem Police Departments in Pennsylvania, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania.

This case is being prosecuted by Assistant United States Attorneys Tracy Lee Dayton and Douglas P. Morabito.

PUBLIC AFFAIRS CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 thomas.carson@usdoj.gov