District of Connecticut

February 14, 2013

David B. Fein, 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 THOMAS J. TUREY, 63, of Norwalk, was arrested today on a federal criminal complaint charging him with wire fraud.

As alleged in the criminal complaint, from 1995 until January 2013, TUREY served as the controller for a market research company located in Stamford.  As controller, TUREY’s responsibilities included aggregating the company’s monthly revenue and expense results, managing the company’s accounts receivable, performing financial analysis and reporting, and overseeing the company’s bookkeeper.  TUREY also was responsible for the company’s general ledger and was in charge of conducting the company’s bank reconciliations.  Between 2010 and 2012, TUREY wrote approximately 100 checks totaling approximately $1.2 million to himself from his employer’s principal operating account and deposited the checks into his personal bank account.  The majority of the embezzled funds were subsequently transferred into TUREY’s online brokerage account.

The complaint further alleges that TUREY has embezzled additional funds from his employer.  The investigation is ongoing.

TUREY surrendered today to the FBI in Bridgeport.  He appeared before United States Magistrate Judge William I. Garfinkel in Bridgeport and was released on a $300,000 bond.

The charge of wire fraud carries a maximum term of imprisonment of 20 years.

U.S. Attorney Fein 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.  The case is being prosecuted by Assistant United States Attorney Paul A. Murphy.

PUBLIC AFFAIRS CONTACT:

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

February 14, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that GARRETT L. DENNISTON, 62, formerly of Sandy Hook, Conn., and Boothbay Harbor, Maine, waived his right to indictment and pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to one count of wire fraud stemming from his operation of a multimillion dollar investment fraud scheme.

“This defendant operated an investment fraud scheme by representing to investors that he ran a successful investment business and could offer them a special ‘friends and family’ deal investing in companies for a guaranteed return of their investment plus a high rate of interest,” stated U.S. Attorney Fein.  “I commend the FBI and the Greenwich Police Department for shutting down this scheme, and I urge the investing public to be extremely skeptical of any promises of risk-free investments and guaranteed returns.”

According to court documents and statements made in court, from approximately 2005 to 2012, DENNISTON defrauded individuals through a Connecticut company called ConsensusOne, LLC, by holding himself out to potential investors as operating a successful investment business specializing in mergers and acquisitions, and by convincing individuals to make investments in phony stock options or other similarly non-existent investments.  During the scheme, DENNISTON told investors that their money would be used to invest in one of the companies that he or his investment business owned and, specifically, that their money would be used to purchase stock options (or promissory notes) convertible into the company’s stock at a substantial discount to the value of the stock on the date of conversion.

DENNISTON also told investors that the companies were on the verge of being sold or had already been sold in deals that were closing on an accelerated schedule.  He further indicated that an investment was refundable if the deal did not close, and that he and his company would guarantee the investments, so that the investments were risk-free.  DENNISTON also told people that the investment was being offered to them as part of a “friends and family” deal pursuant to which he had access to a limited pool of stock options that would yield a guaranteed return on investment.

In reality, DENNISTON did not invest his victims’ funds in stock options or in any other legitimate investments.  Rather, he spent the money on his own personal and business expenses, as well as for other unauthorized uses.  DENNISTON used some money for gifts to family members, and spent additional amounts on airfare, hotels, restaurants, country club memberships, golf and ski outings, mortgage and rent payments, cable and telephone bills, furniture, home renovation costs, and other personal living expenses.

Through this investment scheme, DENNISTON defrauded more than 50 victims out of a total of more than $2.5 million.  Individual investment amounts ranged from a few thousand dollars to nearly $500,000.

DENNISTON concealed his fraudulent activities by preparing fake legal documents and forging signatures of those documents.  At times, he also used one investor’s funds to repay other investors.

DENNISTON has been detained since his arrest on September 19, 2012.   

Judge Arterton has scheduled sentencing for June 11, 2013, at which time DENNISTON faces a maximum term of imprisonment of 20 years.

This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Securities, Commodities and Investor Fraud Task Force, notably the Greenwich Police Department.  The case is being prosecuted by Special Assistant United States Attorney Kerry L. Quinn.

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 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

February 13, 2013

David B, Fein, United States Attorney for the District of Connecticut, announced that FERNANDO GONCALVES, 56, a citizen of Brazil who formerly resided in Bethany, was sentenced today by United States District Judge Michael P. Shea in Hartford to approximately 7 and one-half months of imprisonment, time already served, for filing fraudulent visa applications for foreign nationals.

According to court documents and statements made in court, GONCALVES, a practicing attorney in Brazil, served as the office manager and paralegal at a law practice in Stamford that assisted persons in obtaining immigration benefits, including employment authorization and permanent resident status. GONCALVES’s responsibilities included meeting with potential clients, preparing documents for submission to various state and federal agencies, and collecting monies paid by clients for legal representation by the law firm.  In his position as office manager and paralegal, GONCALVES knowingly filed fraudulent employment-based visa applications for foreign nationals.

Specifically, GONCALVES obtained money from foreign nationals by preparing and submitting approximately eight fraudulent I-485 forms (Application to Register Permanent Residence or Adjust Status).  GONCALVES was paid more than $7,000 by each foreign national for whom he performed immigration services.  Each of the applications submitted on behalf of the eight individuals contained false statements and fraudulent documents in support of the application, including false rental agreements, false affidavits, false employment experience and false letters.

GONVALVES has been detained since his arrest on June 28, 2012, at JFK International Airport, after he returned to the United States from Brazil.  On September 18, 2012, he waived his right to indictment and pleaded guilty to one count of document fraud.

This matter was investigated by ICE Homeland Security Investigations and the U.S. Department of Labor, Office of Inspector General.  The case was prosecuted by Assistant United States Attorney Douglas P. Morabito.

PUBLIC AFFAIRS CONTACT:

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

February 13, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that EDWARD F. WILSON, 29, of Newtown, pleaded guilty today before United States Magistrate Judge Thomas P. Smith in Hartford to one count of production of child pornography.

According to court documents and statements made in court, in approximately 2011 and 2012, WILSON sexually abused a female child, filmed and photographed the abuse with an iPhone and maintained the videos and images on his home computer.  The victim was approximately four years old at the time of the abuse.

In addition to filming, photographing and maintaining videos and images of the sexual abuse that he inflicted on the female child, WILSON traded via email hundreds of other images and videos of child pornography and maintained a collection of child pornography on his home computers.

WILSON is scheduled to be sentenced by United States District Judge Vanessa L. Bryant on May 1, 2013, at which time WILSON faces a mandatory minimum term of imprisonment of 15 years, a maximum term of imprisonment of 30 years and a fine of up to $250,000.

WILSON has been detained in state custody since his arrest on April 13, 2012, for first-degree possession of child pornography, obscenity and promoting a minor in an obscene performance.  On July 10, 2012, he was arrested on 22 additional state charges, including six counts of first-degree sexual assault, five counts of fourth-degree sexual assault and 11 counts of risk of injury.  The state charges are pending.

This case is being investigated by the Connecticut State Police Computer Crimes Unit, the Newtown 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 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

February 13, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that KAI JACKSON, also known as “Killer Kai,” 31, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 24 months of imprisonment, followed by two years of supervised release, for distributing marijuana.

JACKSON is one of 108 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 JACKSON conspired with others to purchase and redistribute between 2.5 and five kilograms of marijuana.

JACKSON has been detained since his arrest on May 22, 2012.  On November 16, 2012, he pleaded guilty to one count of conspiracy to distribute 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 invaluable 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

February 13, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that EARL DAVIS, 54, of Hartford, was sentenced today by United States District Judge Janet C. Hall in New Haven to 48 months of imprisonment, followed by one year of supervised release, for his role in a Hartford crack cocaine distribution ring.

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

According to court documents and statements made in court, Dana Adams and others supplied crack cocaine to numerous street-level dealers, including gang members, who primarily distributed the drug in the area of Enfield Street in Hartford.  Adams utilized lower-level dealers, including DAVIS, to bring customers to him in exchange for money or a quantity of crack cocaine.  DAVIS would also provide information to Adams regarding police activity in the area.  DAVIS was regularly intercepted on court-authorized wiretaps discussing drug trafficking activity and facilitating the distribution of crack cocaine.

DAVIS has been detained since his arrest on May 8, 2012.  On November 28, 2012, he pleaded guilty to one count of using a telephone to facilitate a drug trafficking felony.

On January 31, 2013, Adams was sentenced to 156 months of imprisonment for distributing crack cocaine and for violating the conditions of his supervised release from a previous federal conviction.

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

PUBLIC AFFAIRS CONTACT:

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

February 12, 2013

The United States Attorney for the District of Connecticut announced that WILLIAM A. TRUDEAU, JR., 50, Norwalk, was sentenced today by United States District Judge Janet C. Hall in New Haven to 188 months of imprisonment, followed by five years of supervised release, for operating a mortgage fraud scheme in Fairfield County.  In addition, TRUDEAU’s wife, HEATHER BLISS, 37, was sentenced today to 30 months of imprisonment, followed by three years of supervised release, for her role in the scheme.  BLISS was also ordered to pay a fine of $12,500.

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 July 30, 2010, BLISS pleaded guilty to one count of conspiracy to commit wire fraud.

According to the evidence and witness testimony during TRUDEAU’s trial, in 2004, TRUDEAU and Joseph Kriz, a real estate attorney in Wilton, formed Aspetuck Building & Development through which TRUDEAU, Kriz and others intended to purchase, develop and sell properties.  TRUDEAU was an unnamed principal in the business.  BLISS was employed as a paralegal for Kriz and, in that capacity, had responsibility for preparing and maintaining all legal and bank documents related to real estate transactions handled by Kriz.

From approximately February 2004 to April 2010, TRUDEAU conspired with BLISS, Kriz, Fred Stevens, Thomas Preston and others to defraud federally insured financial institutions and mortgage lenders.  As part of the scheme, TRUDEAU and his co-conspirators 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 and his 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.

As a paralegal, BLISS prepared and maintained numerous fraudulent mortgage documents involved in the scheme.  She also overstated her income on mortgages for which she had personally applied, and applied for new mortgages within 60 days of receiving prior mortgages knowing that the earlier mortgage would not be revealed when BLISS’s credit report was run by the financial institution to which she applied.

BLISS also nominally owned Huntington South Associates, LLC, a shell company that TRUDEAU used to pay for personal expenses and to secure loans fraudulently.  During the scheme, BLISS used mortgage funds that were wired into Huntington South Associates’ bank account as her “business income” on mortgage loan applications in order to qualify for additional mortgages, including a $1.3 million mortgage on a property in Westport.

As a result of a 2003 federal conviction for fraud and tax offenses, TRUDEAU was prohibited from owning or operating any business that was not in his own name, from incurring new credit charges or opening additional lines of credit without prior approval from the U.S. Probation Office, and he was required to release all of his financial information to the Probation Office.  He also was ordered to pay more than $450,000 in restitution.  According to the evidence and testimony at his trial, TRUDEAU’s name did not appear on any documentation related to the loans or the properties for which the loans were obtained, and money was hidden in bank accounts that were not in TRUDEAU’s name in part to prevent the collection of his court-ordered restitution.

Toward the end of the conspiracy, TRUDEAU, with the assistance of others, sought additional monies from a private lender purportedly to complete construction on one of the properties.  TRUDEAU claimed to have a signed purchase contract for the property when, in truth, he did not.  The evidence at trial established that TRUDEAU took the money for uses unrelated to the completion of the property.

Through this scheme, TRUDEAU and his co-conspirators 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, during the scheme, TRUDEAU defrauded private lenders of a total of more than $1 million, and Kriz stole approximately $3.5 million from his IOLTA account.  More than $1.2 million of the stolen IOLTA account funds were deposited into the bank account of Huntington South Associates and used during the conspiracy.

TRUDEAU and BLISS will be ordered to pay restitution of more than $4.2 million.

TRUDEAU, whose criminal history includes approximately 13 felony convictions, has been detained since August 9, 2011, when his bond was revoked.

Kriz, Stevens and Preston have pleaded guilty to charges related to their involvement in this scheme and await sentencing.

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

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

February 6, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that ALAN MISKUNAS, 51, of Hebron, waived his right to indictment and pleaded guilty today before United States District Judge Michael P. Shea in Hartford to one count of filing a false tax return.  MISKUNAS formerly owned Bolton Flooring Center in Bolton.

According to court documents and statements made in court, during the 2003 and 2004 tax years, MISKUNAS filed income tax returns with the Internal Revenue Service that under-reported Bolton Flooring Center’s gross business receipts by approximately one-half, resulting in his failure to pay more than $64,000 in personal income taxes due on that unreported income.  MISKUNAS also did not file tax returns for the 2005 and 2006 tax years and failed to pay more than $88,000 in taxes owed for those years.

Judge Shea has scheduled sentencing for May 2, 2013, at which time MISKUNAS faces a maximum term of imprisonment of three years and a fine of up to $250,000.  MISKUNAS also must make restitution to the IRS totaling more than $152,000, plus applicable interest and penalties.

This matter was investigated by the Internal Revenue Service – Criminal Investigation.  The case is being prosecuted by Assistant United States Attorney Henry K. Kopel.

PUBLIC AFFAIRS CONTACT:

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

February 5, 2013

David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the FBI, announced that a federal grand jury in Hartford returned a 17-count indictment today charging VINCENT NELSON, also known as “June,” 27, of Hartford, STEVEN GRANGER, 27, of Hartford, and HECTOR ALFONSO, 31, of East Hartford, with various narcotics distribution and firearms possession offenses.

The matter stems from an investigation led by the FBI’s Northern Connecticut Violent Crimes Gang Task Force, which includes representatives of the FBI, Connecticut State Police, the Hartford Police Department and the Connecticut Department of Correction, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.

The indictment alleges that between November 2012 and January 2013, NELSON and GRANGER conspired to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”).  The indictment also charges NELSON and GRANGER with multiple counts and ALFONSO with one count of possession with intent to distribute, and distribution of, various quantities of crack cocaine.  NELSON is also charged with one count of possession with intent to distribute heroin and one count of possession with intent to distribute cocaine.

In addition, the indictment charges NELSON with possessing three firearms in furtherance of a drug trafficking crime, and with possession of firearms and ammunition by a convicted felon.  GRANGER is also charged with one count of possession of ammunition by a previously convicted felon.

NELSON, GRANGER and ALFONSO have been detained since their arrests on January 23, 2013.  On that date, court-authorized searches of NELSON’s residence at 2 Warner Street Extension and GRANGER’s residence at 52 Elliott Street resulted in the seizure of three handguns, assorted ammunition, body armor, approximately 500 grams of crack cocaine, approximately 170 grams of cocaine and more than $45,000 in cash.

The indictment seeks the forfeiture of the seized firearms, ammunition and cash, as well as two vehicles.

U.S. Attorney Fein 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 prosecuted by Assistant United States Attorney Brian P. Leaming.

PUBLIC AFFAIRS CONTACT:

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

February 5, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that MICHAEL KENNEDY, also known as “Chavo,” 25, of Newington, pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to one count of possession of firearms by a previously convicted felon.

According to court documents and statements made in court, on May 9, 2011, KENNEDY and Edward N. Ortiz, also known as “Heavy,” of New Britain, entered a residence in Colebrook and stole 12 firearms.  The investigation has revealed that the majority of the stolen firearms were later sold to others, including street-level drug dealers.

Prior to May 2011, KENNEDY had been convicted of multiple felony offenses, including possession of narcotics, robbery, larceny and violation of a protection order.

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.

KENNEDY is scheduled to be sentenced by United States District Judge Robert N. Chatigny on April 30, 2013, at which time KENNEDY faces a maximum term of imprisonment of 10 years and a fine of up to $250,00.

KENNEDY is currently detained in state custody on unrelated charges.

On September 27, 2012, Ortiz pleaded guilty to one count of conspiracy to steal firearms and possess stolen firearms, and one count of possession of firearms by a previously convicted felon.  He awaits sentencing and is also detained.

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police and the New Britain Police Department.  The case is being prosecuted by Assistant United States Attorney Jonathan S. Freimann.

PUBLIC AFFAIRS CONTACT:

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

February 5, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that DOUGLAS HUTCHINGS, 41, of New Haven, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 108 months of imprisonment, followed by three years of supervised release, for bank robbery.

According to court documents and statements made in court, on March 8, 2012, HUTCHINGS entered the TD Bank located at 466 Foxon Boulevard in New Haven, approached a teller and handed her a note stating “Please just the money No gets hurt.”

After the teller provided HUTCHINGS with $7,444 in U.S. currency, HUTCHINGS ran out of the bank and entered the driver’s side of a minivan.  He then drove away at a high rate of speed and engaged New Haven Police officers in a chase that ended when the minivan crashed in the vicinity of Hallock Street and Colombus Avenue in New Haven.  HUTCHINGS was apprehended a short distance from the accident scene.

HUTCHINGS has been detained since his arrest on March 8, 2012.  On August 6, 2012, he pleaded guilty to one count of bank robbery.

HUTCHINGS’s extensive criminal history includes convictions for manslaughter, assault, larceny and arson.

This matter was investigated by the Federal Bureau of Investigation and the New Haven Police Department.  The case was prosecuted by Assistant United States Attorney Anthony E. Kaplan.

PUBLIC AFFAIRS CONTACT:

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

February 5, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that RICHARD C. POUPART, 53, formerly of Middlefield, Conn., and Newport, Maine, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 240 months of imprisonment, followed by a lifetime term of supervised release, for possessing child pornography.  The penalties in this matter were enhanced based on POUPART’s previous conviction for sexual assault of a minor.

“This defendant has a history of sexually assaulting minors, and this significant sentence will protect children from future harm,” stated U.S. Attorney Fein.  “I commend the U.S. Postal Inspection Service and the Shelton and Milford Police Departments for their expert investigation of this matter.”

According to court documents and statements made in court, in September 2007, members of the Shelton Police Department executed a state search warrant at POUPART’s Middlefield residence and seized computers, zip drives, compact discs and other electronic storage media.  Subsequent forensic examination of the seized items revealed images and videos of child pornography, including images that POUPART took of one of his minor female relatives in 2003.

On June 17, 1991, POUPART was convicted in Vermont state court of sexually assaulting a 14-year-old girl.

On July 15, 2009, in Connecticut Superior Court in Derby, POUPART was convicted of two counts of sexual assault in the fourth degree.  The two victims in that case were POUPART’s minor female relatives, and the conduct occurred in 2006 and 2007.

POUPART has been detained in federal custody since August 6, 2010.  On May 25, 2012, he pleaded guilty to one count of possession of child pornography.

This matter was investigated by the United States Postal Inspection Service, the Shelton Police Department and the Milford Police Department.  The case was prosecuted by Assistant United States Attorneys Anastasia King and Neeraj 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

February 1, 2013

David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned an indictment charging ELIZABETH JO GUTIERREZ, 47, of Ridgefield, with one count of theft concerning programs receiving federal funds.  The indictment alleges that GUTIERREZ embezzled $30,000 from the Fairfield Housing Authority.

The indictment was returned on January 23, 2013, and GUTIERREZ appeared yesterday before United States Magistrate Judge Donna F. Martinez in Hartford, pleaded not guilty to the charge and was released on a $50,000 bond.

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 the indictment, GUTIERREZ served as the Executive Director of 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.

The charge of theft concerning programs receiving federal funds carries a maximum term of imprisonment of 10 years.

U.S. Attorney Fein 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.

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

This matter is being 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

February 1, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that JOSEPH JACKSON, also known as “Mighty” and “M.I.,” 37, of New Haven, pleaded guilty today before United States Magistrate Judge Joan G. Margolis in New Haven 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 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.

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 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. 

JACKSON is scheduled to be sentenced by Senior United States District Judge Ellen Bree Burns on May 2, 2013, at which time JACKSON faces a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.

If the binding plea agreement filed today is accepted by the Court, JACKSON will be sentenced to 25 years of imprisonment.

JACKSON also has agreed to forfeit two automobiles and two motorcycles seized during the investigation.

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

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

February 1, 2013

David B. Fein, United States Attorney for the District of Connecticut, today announced that DANA ADAMS, also known as “Soul,” 42, of Hartford, was sentenced yesterday by United States District Judge Janet C. Hall in New Haven to 156 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine and for violating the conditions of his supervised release from a previous federal conviction.

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

According to court documents and statements made in court, ADAMS and others supplied crack cocaine to numerous street-level dealers, including gang members, who primarily distributed the drug in the area of Enfield Street in Hartford.  On April 19, 2012, searches of residences on Bellevue, Enfield, Townley and Sharon Streets in Hartford, all of which ADAMS was suspected of using for his drug trafficking activities, revealed crack cocaine, drug paraphernalia, narcotics packaging materials and cash.

ADAMS’s criminal history includes multiple felony narcotics convictions, including a previous federal conviction in 2004 related to his distribution of crack cocaine in Hartford.  ADAMS was incarcerated for more than four years on that conviction, and he was serving a term of supervised release at the time of this most recent offense.

ADAMS has been detained since his arrest on April 19, 2012.  On November 6, 2012, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack cocaine”).

Judge Hall sentenced ADAMS to 138 months of imprisonment for conspiring to distribute crack cocaine, and a consecutive 18-month sentence for violating the conditions of his supervised release.

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

PUBLIC AFFAIRS CONTACT:

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

February 1, 2013

David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the FBI, today announced that a federal grand jury in Hartford returned an indictment yesterday charging SEAN DORAN, 20, of East Hampton, with one count of intentionally conveying false or misleading information and a hoax by leaving a fake bomb device at the front doors of East Hampton Middle School in East Hampton on January 12, 2013.

The indictment was unsealed today during DORAN’s initial appearance and arraignment before United States Magistrate Judge Donna F. Martinez in Hartford.  DORAN pleaded not guilty to the charge and was released on a $50,000 bond.

“As alleged, the defendant purposefully placed a fake bomb right at the door of a Connecticut middle school,” stated U.S. Attorney Fein.  “Hoaxes threaten the sense of security that children and teachers are entitled to enjoy in their school.  This indictment should be a clear signal that all threats to schools will be vigorously investigated by my office.”

“The indictment of Mr. Doran should be a warning to those individuals who choose to disrupt and threaten everyday public life, hoax or no hoax,” stated FBI Special Agent in Charge Mertz.  “Placing a hoax bomb in a public location is criminal.  Placing it outside a school is absolutely appalling.  The FBI and its law enforcement partners will work tirelessly to bring to justice those responsible for such criminal conduct.”

If convicted of the charge, DORAN faces a maximum term of imprisonment of five years and a fine of up to $250,000.

U.S. Attorney Fein 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.

The case has been assigned to Chief United States District Judge Alvin W. Thompson in Hartford.

This matter is being investigated by the Federal Bureau of Investigation’s JTTF, the East Hampton Police Department, the New Haven Police Department and the Connecticut State Police.  The case is being prosecuted by Special Assistant United States Attorney Anjna R. Kapoor.

PUBLIC AFFAIRS CONTACT:

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

January 31, 2013

David B. Fein, United States Attorney for the District of Connecticut, today announced that JAMES P. RALABATE, MD, a physician, and his professional corporation, PRIMARY CARE ASSOCIATES P.C., which is located at 2890 Main Street in Stratford, have entered into a civil settlement with the government in which they will pay $700,000 to resolve allegations that RALABATE violated the False Claims Act.

The allegations against RALABATE involve fraudulent billing to Medicare occurring over a five-year period for medical services allegedly provided at various nursing homes in Connecticut.  The government alleges that RALABATE billed Medicare for high-level physician services when the services of a physician were not medically necessary.  The medical records did not provide documentation necessary to meet the detailed history, examination or medical decision-making requirements necessary to justify the high level of physician care.  At times, there was no medical record documenting RALABATE’s visit.

The government further alleges that RALABATE billed Medicare for services he supposedly provided to patients in nursing homes when the patients were, in fact, not present in the nursing homes.  Instead, the patients had been transferred to local hospitals for treatment.  Yet RALABATE billed government health care programs as if he had provided medical services in the nursing homes.

To resolve their liability under the False Claims Act, RALABATE and his professional corporation will pay $700,000 in order to reimburse the Medicare programs for conduct occurring between January 1, 2006 and August 31, 2011.

In addition, RALABATE has agreed to be subject to an Integrity Agreement with the Office of Inspector General for the U.S. Department of Health and Human Services.

“Health care providers that overcharge Medicare drain critical funds from the Medicare program and increase health care costs,” U.S. Attorney Fein stated.  “The U.S. Attorney’s office is committed to vigorously pursuing physicians and other health care providers who submit fraudulent claims to federal health care programs.  Providers who submit false claims to the government face serious monetary and administrative sanctions.”

Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $5,500 to $11,000 for each false claim.

This case was investigated by the Office of Inspector General for the U.S. Department of Health and Human Services.  The case was prosecuted by Assistant United States Attorney Anne F. Thidemann, with the assistance of Auditor Kevin A. Saunders.

In entering into the settlement agreement, RALABATE and PRIMARY CARE ASSOCIATES P.C. did not admit liability.

U.S. Attorney Fein encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force 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

January 31, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that FILIPPOS (“FILIP”) MILIOS, 54, of Newington, was arrested today on a federal criminal complaint charging him with bank fraud stemming from his alleged involvement in an extensive mortgage fraud scheme in the greater Hartford area.

According to statements made in court, it is alleged that MILIOS led and organized a multi-year mortgage fraud scheme to purchase and sell houses using straw borrowers and false or fictitious loan applications, employment verifications, bank statements, and pay stubs.  MILIOS purchased numerous homes and then sold them at a significantly higher sales price to straw borrowers that he and his co-conspirators recruited.  In addition, it is alleged that MILIOS used his own funds to make the down payments on behalf of the borrowers, and that he made payments outside of closing to the straw borrowers and his co-conspirators.

This alleged scheme involved more than 40 fraudulent mortgages exceeding $10 million and losses exceeding $5 million.

Following his arrest this morning, MILIOS appeared before United States Magistrate Judge Donna F. Martinez in Hartford and was released on a $100,000 bond.

U.S. Attorney Fein noted that the investigation into these alleged schemes is ongoing and asked individuals who have information that may helpful to the investigation to contact the U.S. Department of Housing and Urban Development – Office of Inspector General at (860) 240-4800.

U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt.  The defendant is entitled to have this matter presented to a grand jury and, in the event an indictment is returned, he is entitled to a trial at which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
This case is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service, and the United States Postal Inspection Service and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant United States Attorney David T. Huang and Paul H. McConnell.

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

January 30, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that RICHARD PINTO, 68, of Wellington, Fla., was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by five years of supervised release, for his role in a mulitimillion dollar fraud scheme at Oxford Collection Agency, where PINTO served as Chairman of the Board.  Judge Underhill also ordered to PINTO to serve the first three years of his supervised release in home confinement, and to pay restitution of approximately $12.3 million.

“Over several years, this defendant orchestrated a substantial fraud through which his company stole millions of dollars from clients, lenders and investors,” stated U.S. Attorney Fein.  “We are committed to working with IRS-Criminal Investigation, the FBI, SIGTARP, and the other members of the Connecticut Securities, Commodities and Investor Fraud Task Force to root out financial fraud and prosecute responsible individuals.”

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.  Businesses and other entities contracted with Oxford to collect debts on their behalf.  Oxford’s clients included, among others, an educational institution, a laboratory, a computer company and various banks.  Oxford collected debts from consumers under the pretense that it would report all such collections to its clients and remit the appropriate amount to the client.  However, PINTO and other Oxford executives routinely caused Oxford to collect debts that were never remitted to its clients.  The co-conspirators referred to these unremitted collections as a client’s “backlog.”  To hide the backlog, co-conspirators would make periodic fraudulent collection reports to certain clients that under-reported the amount of funds collected.  PINTO and others diverted various funds from their client remittances and used them for their own ends.

Certain co-conspirators also transferred money from one client trust account to another client account, from Oxford’s operating account to a client account, or from a client account to Oxford’s operating account to cover various shortfalls and backlogs or to improperly use collections to directly fund Oxford’s operations.

Starting in April 2007, Oxford secured a line from credit from Connecticut-based Webster Bank, a bank that received funds through the Troubled Asset Relief Program (TARP), without informing Webster Bank about its significant client backlogs or outstanding payroll taxes.   PINTO and others sent falsified financial statements to Webster Bank, eventually increasing the credit line to $6 million, and laundered funds from the credit line to promote the ongoing fraud scheme against their clients.  During that same period, PINTO and others also solicited millions of dollars in investments from various investors, without ever disclosing to their investors the existence of their backlogs.  Some of the investor funds were deposited into PINTO’s personal bank account without investor knowledge.

Oxford’s victims lost more than $12 million as a result of this scheme.

The investigation also has revealed that Oxford sometimes obtained and retained business with its banking clients by paying bribes and kickbacks to bank officials.

On May 11, 2012, PINTO pleaded guilty to one count of conspiracy to commit wire fraud, bank fraud and money laundering, and one count of wire fraud.

Four other Oxford executives including PINTO’s son, Chief Executive Officer Peter Pinto, Vice-President of Finance and Chief Financial Officer Randall Silver, Executive Vice President Charles Harris, and Chief Operations Officer Carlos Novelli, have pleaded guilty to charges stemming from this scheme.  They await sentencing.

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, Special U.S. Attorney John McReynolds and Deputy U.S. Attorney Deirdre Daly.

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

January 30, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that JOSEPH DONABY, also known as “Bummy Jack,” 32, of New Haven, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 63 months of imprisonment, followed by three years of supervised release, for possessing a loaded sawed-off rifle.

According to court documents and statements made in court, on June 23, 2011, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) received information that an individual known as “Bummy Jack” was attempting to sell a sawed-off shotgun for $350.  At the direction of law enforcement, an individual called Bummy Jack’s cell phone to arrange a meeting in the area of Whalley Avenue and Blake Street in New Haven to conduct a transaction of the firearm.  However, in the late afternoon of June 23, while they were en route to the meet location, ATF Task Force Officers heard radio transmissions related to the arrest of an individual who was in possession of a sawed-off firearm in the area of the designated meet location.

At approximately 6:00 p.m. on June 23, New Haven Police Department Dispatch notified officers via police radio that “Shot Spotter” had detected one gun shot on Blake Street in between Osborn Avenue and Diamond Street.  Shot Spotter is a computerized system that has sensors throughout New Haven capable of detecting the location of gun shots through the monitoring of sound waves.  New Haven Police officers responding to the area saw DONABY walking quickly on Blake Street across Osborn Avenue.  As officers approached DONABY, he began to run.  DONABY then removed a large brown and black firearm from his waist area in the vicinity of 96 Blake Street, refused orders to “drop the gun,” and threw the firearm over a fence.  He then attempted to climb the fence and made further attempts to resist arrest before he was ultimately subdued by officers and placed under arrest.

New Haven Police subsequently recovered a sawed-off Weatherby, model Mark XXII, .22 caliber semi-automatic rifle, loaded with seven rounds of ammunition, in the area where DONABY had discarded a firearm.

Further investigation revealed that the number of a cell phone that was in DONABY’s possession at the time of his arrest is the same number used by ATF Task Force officers to arrange the firearm transaction with Bummy Jack earlier that day.

Prior to June 2011, DONABY had sustained several state convictions and a federal conviction for possession of a firearm by convicted felon.  It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.

DONABY has been incarcerated since his arrest on June 23, 2011.  On November 15, 2012, he pleaded guilty to one count of possession of a firearm by a convicted felon.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department.  The case was prosecuted by Assistant United States Attorney Tracy Lee Dayton.

PUBLIC AFFAIRS CONTACT:

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

January 30, 2013

David B. Fein, United States Attorney for the District of Connecticut, today announced that two men involved in a violent narcotics trafficking ring in Bridgeport were sentenced earlier this week in New Haven federal court to lengthy prison terms.

On January 28, United States District Judge Janet Bond Arterton sentenced STEFAN WINSTON, also known as “Cuda” and “Pooh,” 31, to 165 months of imprisonment and five years of supervised release.  On January 29, Judge Arterton sentenced ALEXIS RAMOS, also known as “Snake Rattle,” 31, to 100 months of imprisonment and four years of supervised release.

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

According to court documents and statements made in court, WINSTON, RAMOS and others were members of the Sex, Money, Murder set of the Marina Village Bloods and sold large quantities of narcotics from an abandoned residence at 105/107 Johnson Street, which is located across from the street from the Marina Village Housing Complex.  On multiple occasions, gang members were intercepted over court-authorized wiretaps discussing their narcotics trafficking activities.  The wiretapped conversations further revealed that members of the Marina Village Bloods alternately referred to the Johnson Street residence as the “kitchen,” “trap” or “white house.”

The investigation revealed that, in addition to narcotics trafficking, WINSTON was involved in the straw purchase of two firearms, and also possessed and used firearms on a regular basis.  At the time of his arrest on January 5, 2011, WINSTON possessed an assault rifle and a handgun, both of which were loaded.

On August 16, 2011, WINSTON pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and 28 grams or more of cocaine base (“crack cocaine”).  His criminal history includes multiple felony convictions, including convictions for unlawful possession of a firearm and armed robbery.

On August 14, 2012, RAMOS pleaded guilty to one count of conspiracy to possess with intent to distribute 28 grams or more of cocaine base.  His criminal history includes multiple convictions for sale and possession of narcotics and possession of weapons.

WINSTON and RAMOS have been detained since their arrests on January 5, 2011.

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

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

The case is being prosecuted by Assistant United States Attorneys Tracy Dayton, Doug Morabito and Jonathan Freimann.

PUBLIC AFFAIRS CONTACT:

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

January 29, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that QUIYON REED, also known as “Gutter,” 29, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 70 months of imprisonment, followed by four years of supervised release, for distributing heroin.

REED is one of 108 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.

According to court documents and statements made in court, in the fall of 2011, REED assisted a co-defendant’s large-scale drug trafficking operation.  REED packaged heroin for street sale and served his co-defendant’s drug customers.  The investigation also revealed that REED had access to firearms stored at one of his co-defendant’s residences.

REED has been detained since his arrest on May 17, 2012.  On October 25, 2012, he pleaded guilty to one count of conspiracy to distribute 100 grams or more of 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 invaluable assistance to the investigation.

This case is being prosecuted by Assistant United States Attorneys Dave Vatti and Marc Silverman.

PUBLIC AFFAIRS CONTACT:

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

January 29, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that HAROLD ANTHONY SOLTAU, 43, a citizen of Jamaica last residing in Bridgeport, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Thomas P. Smith in Hartford to one count of illegal reentry of a removed alien.

According to court documents and statements made in court, SOLTAU was deported from the United States to Jamaica in June 1990 after he was convicted of a felony drug trafficking offense.  He subsequently reentered the United States without first obtaining the consent of the Attorney General of the United States or his successor, the Secretary for the Department of Homeland Security, to reapply for admission into the United States.

SOLTAU has been detained since his arrest on July 31, 2012.

SOLTAU is scheduled to be sentenced by Senior United States District Judge Alfred V. Covello on April 23, 2013, at which time SOLTAU faces a maximum term of imprisonment of 20 years.

This case was investigated by U.S. Immigration and Customs Enforcement 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

January 28, 2013

David B. Fein, United States Attorney for the District of Connecticut, and Bruce M. Foucart, Special Agent in Charge of Homeland Securities Investigations (HSI) Boston, announced that RICHARD D. HENDRICKS, 32, of Ashford, was sentenced today by Senior United States District Judge Ellen Breen Burns in New Haven to 121 months of imprisonment, followed by five years of supervised release, for child sexual exploitation offenses.  HENDRICKS was formerly employed as a computer teacher at the East Hampton Middle School in East Hampton, Conn.

“This solemn but important prosecution revealed that the defendant, a middle school teacher, paid for and viewed live webcasts showing the sexual abuse of children overseas, and voyeuristically photographed and videotaped female students in his classroom,” said U.S. Attorney Fein.  “His criminal behavior represents an extreme violation of trust, which we at the U.S. Attorney’s Office, along with our law enforcement investigative partners, are committed to combatting.”

“The receipt and of possession of child pornography by a teacher is one of the most heartbreaking violations of trust imaginable,” said HSI Special Agent in Charge Foucart.  “We have an obligation to ensure that individuals who hold positions of trust in our community are held accountable for their actions.  Today’s sentence is a stern reminder about the consequences awaiting those who use the Internet to sexually exploit innocent children.”

According to court documents and statements made in court, a national HSI investigation revealed that HENDRICKS purchased Internet access to live sex shows involving minors from approximately October 2009 to April 2010.  The abusive shows originated in the Philippines.

On June 6, 2011, HSI agents seized two laptop computers, one desktop computer and two external hard drives from HENDRICKS’s residence.  Subsequent forensic evaluation revealed that HENDRICKS used his computer to receive numerous images and video files of child pornography, including images of children under the age of 12, and images portraying sadistic or masochistic conduct or other depictions of violence.

Investigators also discovered numerous images and videos of HENDRICKS’ students at East Hampton Middle School.  While many of the pictures were related to HENDRICKS’ duties as yearbook advisor, investigators discovered that HENDRICKS secretly took voyeuristic photos and videos of female students in his classroom.  He also manipulated some of these images to enhance their visibility, and used a software program to attempt to visualize the private areas of clothed girls.

During the course of the investigation, parental notification was made when investigators identified children who HENDRICKS secretly photographed or video recorded.  With parental consent, agents conducted dozens of forensic interviews of the children.

HENDRICKS has been detained since his arrest on June 9, 2011.  On January 19, 2012, he pleaded guilty to one count of receipt of child pornography.

This matter was investigated Homeland Security Investigations, with the assistance of the Connecticut State Police and the East Hampton Police Department.  The case was prosecuted by Assistant United States Attorneys Ray Miller and Deborah Slater.

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

January 28, 2013

David B. Fein, United States Attorney for the District of Connecticut, and Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), announced that a federal grand jury sitting in New Haven has returned a 16-count indictment charging JESSE C. LITVAK, 38, of New York, N.Y., with securities fraud, Troubled Asset Relief Program (TARP) fraud and making false statements to the federal government.  The indictment alleges that LITVAK, while a registered broker-dealer and managing director at Jefferies & Co., Inc., engaged in a scheme to defraud customers on residential mortgage-backed securities (RMBS) trades.  LITVAK’s victims are alleged to have included numerous investment funds, including six funds that the Department of Treasury established in 2009, as part of the federal government’s response to the financial crisis.

The indictment was returned on January 25, 2013, and LITVAK was arrested at his home this morning by SIGTARP agents.

This prosecution has been brought in coordination with the RMBS Working Group, and relates to alleged fraud committed against the government in response to the financial crisis through the pooling and sale of RMBS.  The RMBS Working Group is a joint federal and state initiative created last year to investigate those responsible for misconduct contributing to the financial crisis.  RMBS were pools of mortgages deposited into trusts and then sold as securities to investors who were to receive a stream of income from the mortgages packaged in the RMBS.

“As alleged, the defendant defrauded six funds established by Treasury and funded principally with government bailout money,” said U.S. Attorney Fein.  “Illegally profiting from a federal program designed to assist our nation in recovering from one of our worst economic crises is reprehensible.  I commend SIGTARP for its diligent work on this ongoing investigation.  The U.S. Attorney’s Office and our RMBS Working Group partners are committed to investigating fraud and abuse that helped lead to the 2008 financial crisis, as well any fraud related to the government’s response to the crisis.”

“As most Americans tried to keep their heads above water during the financial crisis, Jesse Litvak is charged with trying to profit from the taxpayer-funded bailout known as TARP,” said Special Inspector General for TARP Christy Romero. “The charges paint a picture of Litvak shamelessly lying to dupe the Government into overpaying for mortgage securities with bailout funds.  Today’s charges should stand as a warning to all who target bailout money:  We will work with our partners to uncover and stop bailout crime, and to investigate, prosecute, and punish those responsible.  I want to commend United States Attorney David Fein for his commitment to fighting TARP-related crime.”

As detailed in the indictment, in 2009, the U.S. Department of Treasury began the Legacy Securities Public-Private Investment Program (PPIP), in response to the financial crisis, using more than $22 billion of bailout money from TARP to restart the trading market for certain kinds of RMBS, among other troubled securities.  Over 100 firms applied to manage one of the nine PPIP funds established under the program, each of which received between $1.4 billion and $3.7 billion of bailout money from TARP to invest alongside private capital.

According to the indictment, LITVAK was a senior trader and managing director at Jefferies & Co, Inc. (“Jefferies”), a global securities and investment banking firm headquartered in New York.  Jefferies also has a trading floor in Stamford, Conn., where LITVAK and other members of its Mortgage and Asset-Backed Securities trading group worked.  The indictment alleges that LITVAK engaged in a scheme to defraud based on two different types of misrepresentations.  In certain transactions, LITVAK misrepresented the RMBS seller’s asking price to the buyer, or misrepresented the buyer’s price to the seller, keeping the difference between the price paid by the buyer and the price paid to the seller for Jefferies.  In other transactions, LITVAK misrepresented to the RMBS buyer that bonds held in Jefferies’ inventory were being offered for sale by a fictitious third-party seller invented by LITVAK, which allowed LITVAK to charge the buyer an extra commission that Jefferies was not entitled to.

Through these schemes, it is alleged that LITVAK defrauded six PPIP funds and multiple private investment funds of a total of more than $2 million.

The indictment charges LITVAK with 11 counts of securities fraud, which carry a maximum term of imprisonment of 20 years on each count, one count of TARP fraud, which carries a maximum term of imprisonment of 10 years, and four counts of making false statements to the federal government, which carry a maximum term of imprisonment of five years on each count.

The case is assigned to United States District Judge Janet C. Hall in New Haven.

Today’s announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group, a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis. The RMBS Working Group, which is chaired by Attorney General Eric Holder, brings together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, ten U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission, the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the Federal Housing Finance Agency’s Office of Inspector General, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and more than  ten state Attorneys General offices around the country.

This case is being prosecuted by Assistant United States Attorneys Jonathan Francis and Eric Glover.

U.S. Attorney Fein 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.

The RMBS Working Group is led by five co-chairs: Assistant Attorney General for the Justice Department’s Criminal Division Lanny Breuer, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division Stuart Delery, U.S. Attorney for the District of Colorado John Walsh, Director of Enforcement for the SEC Robert Khuzami and New York State Attorney General Eric Schneiderman. The RMBS Working Group Coordinator is Matthew Stegman.  For more information about the RMBS Working Group and the 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

January 24, 2013

David B. Fein, United States Attorney for the District of Connecticut, today announced that JOHNNY SERRANO, also known as “BeBe,” 24, of New Haven, was sentenced yesterday by United States District Judge Robert N. Chatigny in Hartford to 70 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”) and a quantity of cocaine.

This matter is being 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

January 24, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that JUAN RUANO, 49, a citizen of Guatemala last residing in Stamford, was sentenced today by United States District Judge Janet C. Hall in New Haven to 130 months of imprisonment, followed by five years of supervised release, for trafficking heroin.

According to court documents and statements made in court, on December 19, 2011, RUANO and his wife, Saira Ruano, were arrested in the parking lot of a Windsor Locks hotel moments after taking delivery of luggage containing approximately 11 kilograms of heroin.  The heroin was secreted in 15 cans marked as refried beans that had been smuggled into the United States from Guatemala City, Guatemala.  A search of RUANO’s car revealed a black plastic trash bag containing $18,000 in cash intended for other members of the conspiracy who arranged the transport the heroin.

Subsequent investigation revealed that from approximately May 2010 through December 2011, more than $200,000 in currency exchanges were transacted on joint back accounts owned by RUANO and his wife.

RUANO has been detained since his arrest on December 19, 2011.   On September 28, 2012, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin.

RUANO has forfeited the $18,000 seized at the time of his arrest.

On December 4, 2012, Saira Ruano pleaded guilty to structuring financial transactions to avoid currency reporting requirements.  She awaits sentencing.

This matter has been investigated by the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Protection, with the assistance of the Drug Enforcement Administration.

The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.

PUBLIC AFFAIRS CONTACT:

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

January 23, 2013

David B. Fein, United States Attorney for the District of Connecticut announced that PAUL ROGERS, 40, of Middlebury, pleaded guilty today before United States Magistrate Judge Joan G. Margolis in New Haven to one count of devising a scheme to bribe a public official, and one count of conspiring to make false statements to the Federal Election Commission (“FEC”) and to impede the FEC’s enforcement of federal campaign finance laws.  The charges stem from a scheme to direct illegal campaign contributions into the campaign of a candidate for the U.S. House of Representatives.

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

ROGERS owned a RYO smoke shop with two locations in Waterbury.  Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, ROGERS and others engaged in scheme to direct $27,500 in conduit campaign contributions into the campaign of a candidate for the U.S. House of Representatives.  The candidate was also a member of the Connecticut General Assembly.  ROGERS and his co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign.  These individuals wrote checks to the campaign in their own names, and ROGERS and his co-conspirators reimbursed them with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.

On approximately January 31, 2012, the Campaign Committee submitted to the Federal Election Commission (“FEC”) a report of the Campaign Committee’s receipts and disbursements for the period October 1, 2011 through December 31, 2011.  The report falsely stated the source and amount of four $2,500 contributions that were received and deposited by the Campaign Committee during that time period.

ROGERS is scheduled to be sentenced by United States District Judge Janet Bond Arterton on March 20, 2013, at which time ROGERS faces a maximum term of a maximum term of imprisonment of 20 years for devising a scheme to bribe a public official, and a maximum term of imprisonment of five years for conspiring to make false statements to the FEC and to impede the FEC’s enforcement of federal campaign finance laws.

ROGERS is the third defendant to plead guilty to charges related to this scheme.  On July 24, 2012, Harry Raymond “Ray” Soucy pleaded guilty to one count of devising a scheme to bribe a public official, and one count of conspiring to make false statements to the FEC and to impede the FEC’s enforcement of federal campaign finance laws.  On November 2, 2012, David 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 and Moffa also await sentencing.

Five other individuals have been charged as a result of this investigation.  As to these defendants, U.S. Attorney Fein 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 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

January 23, 2013

David B. Fein, United States Attorney for the District of Connecticut, today announced that ALEXANDER GARAY, 36, of Hartford, pleaded guilty today before United States District Judge Vanessa L. Bryant in Hartford to one count of possession of a firearm by a previously convicted felon. 

According to court documents and statements made in court, on May 22, 2012, GARAY was arrested after he engaged Hartford police officers in a car chase during which he nearly hit an officer, threw bags of heroin out of his car window and forced another individual’s vehicle off the road.  A subsequent search of GARAY’s vehicle revealed a Taurus 9 millimeter pistol and an additional quantity of heroin.

The firearm GARAY possessed had been reported stolen from its legal owner in 2006.

Prior to May 2012, GARAY had been convicted of multiple felony offenses, including weapon in a motor vehicle (twice), criminal possession of a firearm, sale of hallucinogens/narcotics, possession of narcotics (twice), and stealing a firearm.

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 Bryant has scheduled sentencing for March 20, 2013, at which time GARAY faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.

GARAY has been detained since his arrest by Hartford Police on May 22, 2012.

This case was investigated by the Hartford Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.  The case is being prosecuted by Assistant United States Attorneys Jonathan S. Freimann and Michelle McConaghy.

The Project Safe Neighborhoods Initiative is aimed at reducing gun and gang violence, deterring illegal possession of guns, and improving the safety of residents of Connecticut’s cities.

PUBLIC AFFAIRS CONTACT:

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

January 18, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that STEVEN DONALD LEWIS, 23, of Plainville, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 24 months of imprisonment, followed by 10 years of supervised release, for receiving and distributing child pornography. 

According to court documents and statements made in court, on November 9, 2010, a Bristol Police Department detective assigned to the Connecticut Computer Crimes Task Force in New Haven logged into a publicly available Internet file sharing program and downloaded 34 images of child pornography from a shared directory maintained by LEWIS.  On December 8, 2010, LEWIS was arrested at his dormitory residence at the University of Connecticut.  On that date, law enforcement agents also seized LEWIS’s laptop computer.

Analysis of the seized computer revealed thousands of images and videos of child pornography.  Included in his collection of child pornography were images of children under the age of 12 engaged in sexually explicit conduct.  Forensic review also revealed that LEWIS distributed child pornography images and videos through the file sharing program located on his computer.

On August 13, 2012, LEWIS waived his right to indictment and pleaded guilty to one count of receiving child pornography.

LEWIS has been released on bond under supervision of the United States Probation Office since shortly after his arrest.  He has been ordered to report to prison on March 1, 2013.

This case was investigated by the Federal Bureau of Investigation, the United States Secret Service and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies.  The case was prosecuted by Assistant United States Attorney Sarala V. Nagala.

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

January 16, 2013

David B. Fein, United States Attorney for the District of Connecticut, John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration for New England, and Colonel Danny R. Stebbins of the Connecticut State Police, today announced that a federal grand jury sitting in Bridgeport has returned an indictment charging three Connecticut men and two California residents with conspiring to distribute methamphetamine. The indictment was returned on January 15, 2013.

According to statements made in court, this matter stems from a joint investigation by the Drug Enforcement Administration and the Connecticut State Police's Statewide Narcotics Task Force. The investigation has included the use of court-authorized wiretaps, controlled purchases of methamphetamine, physical surveillance and the use of an undercover officer. The investigation revealed KEVIN WALLIN of Waterbury allegedly received shipments of methamphetamine from individuals in California. On six occasions between September 2012 and January 2013, it is alleged that the undercover officer purchased methamphetamine from WALLIN.

“This case is a model for cooperation between federal and state law enforcement agencies,” stated U.S. Attorney Fein. “The hard work of the DEA and the Connecticut State Police in this case resulted in the dismantling of what we allege was a significant methamphetamine distribution organization that spanned from California to Connecticut.”

The indictment charges the following five individuals with one count of conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine, and 50 grams of actual methamphetamine:

KEVIN WALLIN, 61, of Golden Hill Street, Waterbury
KENNETH DEVRIES, also known as "Lyme," 52, of Golden Hill Street ,Waterbury
MICHAEL NELSON, 40, of Buckland Hills Drive, Manchester
CHAD McCLUSKEY, 43, of San Clemente, Calif., KRISTEN LASCHOBER, 47, of Laguna Niguel, Calif.

The indictment also charges WALLIN with six counts of possession with intent to distribute methamphetamine.

WALLIN and DEVRIES were arrested on criminal complaints on January 3, 2013. According to statements made in court, a court-authorized search of WALLIN's residence on that date revealed suspected methamphetamine, as well as items that government alleges are drug paraphernalia and drug packaging materials.

McCLUSKEY and LASCHOBER were arrested on criminal complaints in Las Vegas, Nev., on January 10, 2013.

NELSON was arrested yesterday after the indictment was returned.

All five defendants are currently detained, and the investigation is ongoing.

If convicted of the charge of conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine, and 50 grams of actual methamphetamine, each of the defendants faces a minimum term of imprisonment of 10 years, a maximum term of imprisonment of life and a fine of up to $10 million. If convicted of the charge of possession with intent to distribute methamphetamine, WALLIN faces a maximum term of imprisonment of 20 years and a fine of up to $1 million, on each count.

U.S. Attorney Fein 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 prosecuted by Assistant United States Attorneys Patrick Caruso and H. Gordon Hall.

PUBLIC AFFAIRS CONTACT:

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

January 15, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that KYLE FARACE, 26, of Brattleboro, Vt., was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 36 months of imprisonment for dealing firearms without a license.  FARACE also was ordered to serve three years of supervised release and perform 150 hours of community service after his release from prison.

According to court documents and statements made in court, on at least three separate occasions between April and June 2011, FARACE, who is not a licensed firearms dealer, transferred five firearms to someone he believed to be a convicted felon and who resided in a different state.

It is a violation of federal law for a person to engage in the business of dealing in firearms without a license, to sell firearms to a convicted felon, or to transfer a firearm to a person residing in a different state.

On January 6, 2012, FARACE pleaded guilty to one count of dealing in firearms without a license.  When he pleaded guilty, FARACE also admitted that he illegally possessed and distributed marijuana in April and May 2011.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Hartford Police Department, the East Hartford Police Department and the Connecticut Department of Revenue Services.  The ATF and DEA in Burlington, Vt., the Addison County (Vt.) Sheriff’s Department, and the United States Attorney’s Office for the District of Vermont assisted the investigation of this matter.

The case was prosecuted by Assistant United States Attorneys Jonathan S. Freimann and Ndidi Moses.

PUBLIC AFFAIRS CONTACT:

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

January 15, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Bridgeport returned an indictment today charging NOUEL ALBA, 37, of Bronx, N.Y., with making false statements to FBI agents in connection with their investigation into a fraudulent fundraising scheme related to the Newtown school shooting tragedy.

The indictment alleges that ALBA used her Facebook account, telephone calls and text messages to falsely claim to be an aunt of a shooting victim and supply fictitious details about the aftermath of the tragedy in order to solicit donations on the pretext that she was collecting on behalf of the family for the child’s “funeral fund.”  At ALBA’s instruction, donor-victims sent money to a PayPal account controlled and accessed by ALBA.  The indictment further alleges that, when contacted by FBI Special Agents investigating fundraising and charity scams related to the Newtown school shooting, ALBA falsely stated 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.

The indictment charges ALBA with one count of making false statements to federal agents, an offense that carries a maximum term of imprisonment of five years and a fine of up to $250,000.

ALBA was arrested on a criminal complaint on December 27, 2012, and she has been released on a $50,000 bond since the date of her arrest.

“Investigators continue to monitor the Internet to uncover other fundraising scams arising from this tragedy, and any individuals who attempt to profit through these schemes will be prosecuted,” stated U.S. Attorney Fein.

U.S. Attorney Fein noted that potential federal charges associated with fraudulent fundraising and charity schemes include wire fraud (18 USC 1343, 20-year maximum prison term), access device fraud (18 USC 1029, 10-year maximum prison term) and interstate transportation of stolen property (18 USC 2314, 10-year maximum prison term).

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

U.S. Attorney Fein 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 case is being investigated by the Federal Bureau of Investigation.  The case is being 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

January 15, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that COREY WILLIAMS, JR., also known as “Little Corey,” 24, of Meriden, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 20 months of imprisonment, followed by three years of supervised release, for selling stolen firearms.

According to court documents and statements made in court, WILLIAMS told his father, Khalid Aziz, that he had stolen multiple firearms from a Meriden gun store and was having trouble selling some of the “big guns.”  Aziz put WILLIAMS in touch with Airess Johnson, who knew someone interested in purchasing firearms.  The potential purchaser was an individual cooperating with law enforcement, and that cooperator negotiated a purchase price for three firearms with Williams.

At approximately 8:30 p.m. on February 2, 2012, WILLIAMS, Aziz, and Johnson drove to the parking lot of a New Haven restaurant.  After WILLIAMS and Aziz exited the vehicle and waited in front of a nearby store, the cooperator purchased two 12 gauge shotguns and a .308 caliber semi-automatic rifle from Johnson in exchange for $1,200.  After the transaction, WILLIAMS, Aziz, and Johnson departed together.  WILLIAMS then paid Aziz approximately $50 for his role in facilitating the sale of the three firearms.

Law enforcement officers later recovered the three firearms from the cooperator’s vehicle.  All three had been reported stolen from a federal firearms licensee in Meriden on November 5, 2011.

The owner and employees of the Meriden gun dealer subsequently identified WILLIAMS as someone who had been in the store prior to the theft of nine firearms from the store.  On May 25, 2012, at WILLIAMS’s residence, law enforcement officers recovered a gun box for one of the six additional stolen firearms, as well as two boxes of ammunition, a ballistic vest carrier, and two rifle magazines.

The six additional firearms that were stolen from the Meriden gun dealer have not been recovered.

On November 2, 2012, WILLIAMS, pleaded guilty to one count of sale of stolen firearms.  He had no prior criminal history.

On October 22, 2012, Aziz pleaded guilty to the same charge.  On January 10, 2013, Aziz, whose criminal history included at least 19 felony convictions, was sentenced to 10 years of imprisonment.

Johnson, 35, of New Haven, pleaded guilty on July 3, 2012, to one count of possession of firearms by a previously convicted felon.  On January 3, 2013, she was sentenced to 20 months of imprisonment.

This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with substantial assistance provided by the New Haven Police Department and the Meriden Police Department.  The case was prosecuted by Assistant United States Attorney Marc H. Silverman.

PUBLIC AFFAIRS CONTACT:

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

January 14, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that JUAN CARTAGENA, 28, of Hartford, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 92 months of imprisonment for distributing crack cocaine in Hartford.  CARTAGENA also was ordered to serve five years of supervised release and perform 250 hours of community service after his release from prison.

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

According to court documents and statements made in court, CARTAGENA and others conspired to distribute crack cocaine in Hartford’s lower Vine Street area, as well as in other locations in Hartford and East Hartford.

CARTAGENA, whose criminal history includes multiple felony convictions, has been detained since his arrest on March 9, 2012.  On August 29, 2012, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack cocaine”).

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

PUBLIC AFFAIRS CONTACT:

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

January 11, 2013

David B. Fein, United States Attorney for the District of Connecticut, today announced that MICHAEL P. WEINSTEIN, 70, of West Hartford, was sentenced yesterday by United States District Judge Janet C. Hall in New Haven to two years of probation, the first six months of which WEINSTEIN must serve in home confinement, for filing false tax returns.  WEINSTEIN also was ordered to pay a fine of $100,000 and to forfeit more than $143,000.

According to court documents and statements made in court, WEINSTEIN lawfully engaged in gambling in Connecticut and elsewhere.  In 2009, WEINSTEIN had approximate gambling winnings of $448,400 and gambling losses of $268,990, resulting in net winnings of approximately $179,410.  In April 2010, WEINSTEIN signed and filed his 2009 U.S. Individual Income Tax Return, Form 1040, which under reported his income.  Consequently, he failed to pay an additional $50,235 in federal taxes that were owed for 2009.

In 2010, WEINSTEIN had approximate gambling winnings of $475,800 and gambling losses of $475,800, resulting in net zero gambling winnings.  On his 2010 tax return, WEINSTEIN failed to report his gambling winnings or losses, which affected the Alternative Minimum Tax on his return, and which resulted in his not paying $1,405 in federal taxes.

On October 3, 2012, WEINSTEIN waived his right to indictment and pleaded guilty to one count of filing a false federal income tax return.

As part of the resolution of this case, WEINSTEIN has paid more than $97,000 in back taxes, interest and penalties for the 2009 and 2010 tax years.  WEINSTEIN also has forfeited $143,562.46, which the IRS seized in November 2011 from two of WEINSTEIN’s bank accounts pursuant to a court-authorized seizure warrant.

This matter was investigated by the Internal Revenue Service – Criminal Investigation with the assistance of the Stamford Police Department.  The case was prosecuted by Assistant United States Attorney Peter S.  Jongbloed.

PUBLIC AFFAIRS CONTACT:

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

January 11, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that ARTHUR GALLOWAY, 38, of Shelton, waived his right to indictment and 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 statement made in court, on March 14, 2012, the Connecticut State Police Computer Crimes Unit, Shelton Police Department, 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.

Judge Arterton has scheduled sentencing for April 17, 2013, at which time GALLOWAY faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.

GALLOWAY has been released on bond under electronic monitoring by the U.S. Probation Office since shortly after his arrest.

This matter is being 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 is being prosecuted by Assistant United States Attorney Felice M. Duffy.

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

January 11, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that CHRISTOPHER ALLEN, 47, of Palm Beach Gardens, Fla., formerly a Transportation Security Administration officer based at Palm Beach International Airport, was sentenced today by United States District Judge Janet C. Hall in New Haven to 68 months of imprisonment, followed by three years of supervised release, for accepting cash in exchange for facilitating the transportation of illegal narcotics through airport security without detection.  Two other former TSA officers, a former Westchester County Police officer and a former Florida State Trooper have also been charged and convicted as a result of this investigation.

“This defendant received cash payments to assist a known drug trafficker pass safely through airport security with oxycodone pills destined for illegal trafficking in Connecticut,” stated U.S. Attorney Fein.  “Corruption within the ranks of those who are entrusted with the responsibility for screening air travelers and their baggage can never be tolerated.  I commend the DEA Task Force for shutting down a pipeline of highly addictive prescription pills from Florida to Connecticut, and for bringing to justice this federal employee and others who participated in this illegal scheme.”

This matter stems from “Operation Blue Coast,” an investigation headed by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force into the large-scale trafficking of oxycodone pills from Florida to Connecticut.  The investigation revealed that an individual regularly purchased oxycodone from suppliers in Florida, transported the oxycodone to Connecticut by commercial airline or automobile, and sold the pills to various Connecticut-based narcotics dealers.  The narcotics trafficker purchased oxycodone pills in Florida for approximately $5.00 per pill, and traveled from Florida to Connecticut several times a week carrying up to 8,000 oxycodone pills per trip.  He then used drivers to transport him to and from narcotics transactions during which he would sell the pills to Connecticut-based dealers for between $10.00 and $13.00 per pill.  After exchanging low-denomination currency for larger notes, he transported the proceeds of his oxycodone sales from Connecticut to Florida, either by having a courier drive the money or by using commercial airline flights.  The Connecticut-based dealers sold the pills to lower-level dealers and drug customers for between $23.00 and $30.00 per pill.

According to court documents and statements made in court, ALLEN, while employed as a TSA officer at Palm Beach International Airport in West Palm Beach, Fla., accepted cash payments from the narcotics trafficker to ensure that the trafficker would not be stopped by TSA officers as he carried oxycodone pills through airport security on his way to Connecticut.  On four occasions between May and August 2011, the narcotics trafficker, who by this time was cooperating with law enforcement, paid ALLEN $500 in cash to allow the trafficker to travel safely through airport security.  On two of these trips, the narcotics trafficker traveled with an undercover law enforcement officer.

As disclosed in court, the evidence in this case includes recorded conversations involving ALLEN, the cooperating narcotics trafficker and the undercover law enforcement officer.

ALLEN was arrested on September 13, 2011.  On April 16, 2012, he pleaded guilty to one count of extortion under color of right and one count of receipt of a bribe by a public official.

Twenty individuals have been charged as a result of this investigation.  Jonathan Best, a TSA officer based at Palm Beach International Airport, Brigitte Jones, a TSA officer based at Westchester County Airport in White Plains, Justin Kolves, a former Florida State Trooper and Michael Brady, a former Westchester County Police officer, also pleaded guilty and have been sentenced to prison terms of 76 months, 45 months, 84 months and 37 months, respectively.

This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force, which includes personnel from the Connecticut State Police and the Bridgeport, Milford, Norwalk, Stamford and Westport Police Departments; the Drug Enforcement Administration in Florida and the U.S. Department of Homeland Security Office of Inspector General.  In addition, the U.S. Marshals Service and the Greenwich, Monroe, Danbury and Waterbury Police Departments have assisted the investigation.

U.S. Attorney Fein also acknowledged the cooperation of the Westchester County Department of Public Safety and the Florida Highway Patrol, and the substantial assistance provided by the United States Attorney’s Office for the Southern District of Florida.

This case is being prosecuted in the District of Connecticut by Assistant United States Attorneys Rahul Kale and Tracy Lee Dayton.

PUBLIC AFFAIRS CONTACT:

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

January 10, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that KHALID AZIZ, also known as “Corey Williams, Sr.,” “Cory Williams,” “Avery Smith,” “Gregory Richardson,” “Andre Gorham,” and “Big Corey,” 43, of New Haven, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 120 months of imprisonment, followed by three years of supervised release, for selling stolen firearms.

According to court documents and statements made in court, AZIZ’s son, Corey Williams, Jr., told AZIZ that he had stolen multiple firearms from a Meriden gun store and was having trouble selling some of the “big guns.”  AZIZ put Williams in touch with Airess Johnson, who knew someone interested in purchasing firearms.  The potential purchaser was an individual cooperating with law enforcement, and that cooperator negotiated a purchase price for three firearms with Williams.

At approximately 8:30 p.m. on February 2, 2012, AZIZ, Williams and Johnson drove to the parking lot of a New Haven restaurant.  After AZIZ and Williams exited the vehicle and waited in front of a nearby store, the cooperator purchased two 12 gauge shotguns and a .308 caliber semi-automatic rifle from Johnson in exchange for $1,200.  After the transaction, AZIZ, Williams and Johnson departed together.  Williams then paid AZIZ approximately $50 for his role in facilitating the sale of the three firearms.

Law enforcement officers later recovered the three firearms from the cooperator’s vehicle.  All three had been reported stolen from a federal firearms licensee in Meriden on November 5, 2011.  Six additional firearms that were stolen at the same time remain unaccounted for.

AZIZ’s criminal history includes at least 19 felony convictions.

On October 22, 2012, AZIZ pleaded guilty to one count of sale of stolen firearms.

Williams, 24, of Meriden, pleaded guilty to the same charge on November 2, 2012.  He is scheduled to be sentenced on January 15.

Johnson, 35, of New Haven, pleaded guilty on July 3, 2012, to one count of possession of firearms by a previously convicted felon.  On January 3, 2013, she was sentenced to 20 months of imprisonment.

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with substantial assistance provided by the New Haven Police Department and the Meriden Police Department.  The case is being prosecuted by Assistant United States Attorney Marc H. Silverman.

PUBLIC AFFAIRS CONTACT:

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

January 10, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that ROLAND PREJEAN, also known as “Gary Joseph Gravelle,” 45, formerly of Thomaston and Morris, Conn., pleaded guilty today before Senior United States District Judge Warren W. Eginton in Bridgeport to federal charges stemming from his mailing of multiple threatening letters.

“We will vigorously investigate and prosecute hoax crimes that threaten violence,” stated U.S. Attorney Fein.  “These crimes cause emotional distress for victims and waste the valuable time and resources of our law enforcement community.”

According to court documents and statements made in court, in early September 2010, PREJEAN mailed a threatening letter to the Thomaston Post Office claiming that he had planted a hidden bomb on a remote timer in the Post Office.  The letter resulted in the evacuation of the Thomaston Post Office as well as the Thomaston Town Hall and a Thomaston Public School, which were in the immediate vicinity of the Post Office.  Bomb technicians from the Connecticut State Police Emergency Services Unit searched the post office for explosive or incendiary devices with negative results.

In addition, PREJEAN mailed a letter to a Connecticut Superior Court Judge in New London that included a substance that was represented to be “Liquid Anthrax,” and he sent threatening letters to a private individual and a probation officer in Connecticut.  In those letters PREJEAN threatened to kill numerous people, including a federal employee.

PREJEAN, who has been detained since his arrest in North Dakota on September 7, 2010, pleaded guilty to one count of using the U.S. Mail to communicate a bomb threat and four counts of mailing threatening communications.

Judge Eginton has scheduled sentencing for April 8, 2013, at which time PREJEAN faces a maximum term of imprisonment of 10 years for making a bomb threat through the mail, a maximum term of imprisonment of 10 years for mailing a threatening communication to federal employees and a maximum term of imprisonment of five years of each of the three counts of mailing a threatening communication.

At sentencing, the government will present evidence of more than 50 other threatening letters that PREJEAN mailed both prior to his arrest and while he was detained in federal custody.

U.S. Attorney Fein commended the substantial efforts and cooperation of the several agencies involved in this investigation including the Federal Bureau of Investigation in New Haven, Minneapolis, and Bismarck; the United States Postal Inspection Service in Connecticut and North Dakota; the United States Marshals Service in Connecticut; the Connecticut State Police Emergency Services Unit and the Thomaston Police Department.

U.S. Attorney Fein also acknowledged the critical assistance provided by the U.S. Attorney’s Office for the District of North Dakota.

This 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

January 9, 2013

David B. Fein, 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 RAZVAN DAVIDESCU, 39, a citizen of Romania, was sentenced today by United States District Judge Janet C. Hall in New Haven to 48 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.

DAVIDESCU 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 DAVIDESCU was heavily involved in the phishing conspiracy between 2004 and 2006, and he possessed personal and financial information of more than one thousand victims.  He also shared a program for harvesting email addresses with another co-conspirator, and possessed phishing emails and files for creating counterfeit Internet sites.

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 DAVIDSECU.

The first three defendants to face charges were extradited from Bulgaria, Croatia and Canada.  Following the ratification in 2010 of an amended treaty on mutual legal assistance between Romania and the United States, DAVIDESCU and six other defendants were extradited from Romania.  DAVIDESCU was extradited in December 2011.

On October 10, 2012, DAVIDESCU pleaded guilty to one count of conspiracy to commit access device fraud.  Eight of the other extradited defendants also have pleaded guilty, and one was convicted after trial in December 2012.  Nine defendants are still being sought.

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

U.S. Attorney Fein 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

January 9, 2013

David B. Fein, United States Attorney for the District of Connecticut, today announced that five Bridgeport men charged as a result of an FBI Bridgeport Safe Streets Task Force and Connecticut State Police Statewide Narcotics Task Force investigation into narcotics trafficking activity and violent criminal activity in and around the Trumbull Gardens housing complex in Bridgeport have been sentenced by Chief United States District Judge Alvin W. Thompson in Hartford.

Today, MICHAEL NEWSOME, also known as “Cream” and “DooDoo,” 29, was sentenced to 30 months of imprisonment, and RAHSHIM CARTER, also known as “Jinks” and “Mace,” 24, was sentenced to 18 months of imprisonment.  On Monday, January 7, HASSAN ROGERS, also known as “Boobie,” 41, was sentenced to 30 months of imprisonment, JAMIEL THOMPSON, also known as “Jamil” and “Tre,” 23, was sentenced to 18 months of imprisonment, and ALEX SANTANA, 19, was sentenced to 10 months of imprisonment followed by four months of community detention.

The investigation revealed that several individuals were selling narcotics from parking lots within Trumbull Gardens and utilized lookouts to detect the presence of law enforcement.  Between June 2011 and May 2012, Task Force officers made dozens of controlled purchases of narcotics from ROGERS, his sons THOMPSON and CARTER, and NEWSOME, who is THOMPSON’s uncle.  During the investigation, officers also purchased a semi-automatic handgun, through ROGERS, from SANTANA.

On May 9, 2012, one individual was killed by multiple gunshots and another was shot in the chest and abdomen while visiting the Trumbull Gardens housing complex.  On May 24, 2012, federal arrest warrants were issued after the government adopted pending state charges against the five defendants.  To date, no one has been charged in the shooting incident.

NEWSOME, CARTER, ROGERS and THOMPSON each previously pleaded guilty to one count of possession with intent to distribute and distribution of heroin.  SANTANA pleaded guilty to one count of illegally engaging in the business of dealing in firearms.

Each of the defendants will serve a three-year term of supervised release following their release from prison.  They have been detained since their arrests on May 24, 2012.

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

PUBLIC AFFAIRS CONTACT:

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

January 9, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that JOHN W. CARROLL, 42, of Colchester, was arrested today on a federal criminal complaint charging him with the unauthorized possession of an imitation United States Marshals Service badge.

The criminal complaint alleges that, on October 9, 2012, CARROLL possessed a fake U.S. Marshals Service badge that was substantially similar to an authentic badge, and two fake U.S. Marshals Service identification cards.

CARROLL was arrested this morning.  Following his arrest, he appeared before United States Magistrate Judge Joan G. Margolis in New Haven and was released on a $10,000 bond. 

If convicted of the charge, CARROLL faces a maximum term of imprisonment of six months and a fine of up to $5,000.

U.S. Attorney Fein 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 case is being investigated by the United States Marshals Service and state and local law enforcement agencies.  The case is being prosecuted by Special Assistant United States Attorney Anjna R. Kapoor and Assistant United States Attorney David E. Novick.

PUBLIC AFFAIRS CONTACT:

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

January 9, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that JESUS ROJAS-REYES, 22, a citizen of Mexico recently residing in Brooklyn, N.Y., was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to six months of imprisonment for illegally reentering the United States following his deportation.

According to court documents and statements made in court, ROJAS-REYES has been deported from the United States to Mexico on three prior occasions. In September 2011, he illegally reentered the United States through Arizona. On November 14, 2011, ROJAS-REYES was arrested by the Norwalk Police Department on a charge of unlawful restraint.

ROJAS-REYES, who has been detained since his arrest, pleaded guilty to the state charge on September 5, 2012. On September 6, 2012, he waived his right to indictment and pleaded guilty in federal court to one count of illegal reentry of a removed alien.

This case was investigated by ICE Homeland Security Investigations and 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

January 9, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that CARLOS GONZALEZ-VALDOVINOS, 45, a citizen of Mexico recently residing in New Haven, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 30 months of imprisonment for illegally reentering the United States following his deportation.

According to court documents and statements made in court, GONZALEZ-VALDOVINOS was deported from the United States to Mexico after he was convicted of state sexual assault and narcotics offenses.  In 2000, GONZALEZ-VALDOVINOS illegally reentered the United States without first obtaining the consent of the Attorney General of the United States or his successor, the Secretary for the Department of Homeland Security, to reapply for admission into the United States.

GONZALEZ-VALDOVINOS has been detained in federal custody since his arrest on March 27, 2012.  On August 30, 2012, he waived his right to indictment and pleaded guilty to one count of illegal reentry of a removed alien.

This case was investigated by ICE Homeland Security Investigations and 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

January 9, 2013

David B. Fein, United States Attorney for the District of Connecticut, and Bruce M. Foucart, Special Agent in Charge of ICE Homeland Security Investigations in New England, today announced that a federal grand jury in New Haven returned an indictment yesterday charging MICHAEL CRAWFORD, 35, of Canton, with one count of production of child pornography, one count of distribution of child pornography and one count of receipt of child pornography.

CRAWFORD was arrested today.  Following his arrest, he appeared before United States Magistrate Judge William I. Garfinkel in Bridgeport.  CRAWFORD is detained pending a hearing that is scheduled for January 14.

The indictment alleges that, between September and December 2011, CRAWFORD produced depictions of a minor engaging in sexually explicit conduct, and then distributed the images.  The indictment also alleges that CRAWFORD received visual depictions of other minors engaging in sexually explicit conduct.

If convicted of the charge of production of child pornography, CRAWFORD faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years.  The charges of distribution of child pornography and receipt of child pornography carry a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.

U.S. Attorney Fein 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.

The case has been assigned to United States District Judge Michael P. Shea in Hartford.

This matter is being investigated by Homeland Security Investigations, with assistance from the Connecticut State Police and the Canton Police Department.  The case is being prosecuted by Assistant United States Attorneys Sarala V. Nagala and Anastasia E. King.

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

January 8, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that BERNARD BYRD, also known as “BB” and “Chip,” 26, of New Haven, was sentenced today by United States District Judge Janet C. Hall in New Haven to 21 months of imprisonment, followed by three years of supervised release, for distributing marijuana.

BYRD is one of 108 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 in September 2011, BYRD conspired with others to purchase and redistribute between five and 10 kilograms of marijuana.

BYRD was on state probation at the time of the offense.

BYRD has been detained since his arrest on May 22, 2012.  On October 16, 2012, he pleaded guilty to one count of conspiracy to distribute 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 invaluable 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

January 8, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that PATRICIA A. BROWN, 22, a prisoner at the Federal Correctional Institution (FCI) in Danbury, pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to one count of assault with a dangerous weapon.

According to court documents and statements made in court, on May 4, 2012, BROWN assaulted another Danbury FCI inmate with two padlocks placed in a white athletic sock.  The victim suffered a laceration close to her right ear and required three stitches to close the wound, and also suffered from headaches.

BROWN is scheduled to be sentenced by United States District Judge Robert N. Chatigny on April 4, 2013, at which time BROWN faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.

BROWN is currently serving a 30-year sentence after having been convicted of murder in 2009 in the District of Minnesota.

This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Neeraj N. Patel and Special Assistant United States Attorney Anjna R. Kapoor.

PUBLIC AFFAIRS CONTACT:

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

January 7, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that PETER C. JOHNS, 39, of Wallingford, waived his right to indictment and pleaded guilty today before United States District Judge Robert N. Chatigny in Hartford to one count of receipt and distribution of child pornography.

According to court documents and statements made in court, on November 24, 2010, a detective assigned to the Richmond (Va.) Field Office of the Federal Bureau of Investigation and acting in an undercover capacity logged into a publicly available Internet file sharing program and downloaded several images and videos of child pornography from a shared directory maintained by JOHNS.

On March 25, 2011, JOHNS was arrested at his residence.  On that date, law enforcement agents also seized his computer and related components.  Forensic analysis of the seized computer and components revealed that JOHNS used the Internet to trade thousands of images and videos of child pornography.  Included in his collection of child pornography were images of children under the age of 12 engaged in sexually explicit conduct, and images of children engaging in sadistic or masochistic conduct.

Judge Chatigny has scheduled sentencing for April 4, 2013, at which time JOHNS faces a mandatory minimum term of imprisonment of five years, a maximum term of imprisonment of 20 years and a fine of up to $250,000.

JOHNS has been released on bond under electronic monitoring by the U.S. Probation Office since shortly after his arrest.

This matter has been 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 Wallingford Police Department provided assistance to the investigation. The case is being prosecuted by Assistant United States Attorney Sarala V. Nagala.

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

February 6, 2013

David B. Fein, United States Attorney for the District of Connecticut, announced that EMMANUEL BABE, also known as “Manny,” 39, of Mount Kisco, N.Y., pleaded guilty today before United States District Judge Janet C. Hall in New Haven to one count of conspiracy to commit money laundering.

This matter stems from “Operation Blue Coast,” an investigation headed by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force into the large-scale trafficking of oxycodone pills from Florida to Connecticut.  The investigation revealed that an individual regularly purchased oxycodone from suppliers in Florida, transported the oxycodone to Connecticut by commercial airline or automobile, and sold the pills for profit to various Connecticut-based narcotics dealers.  He then transported the proceeds of his oxycodone sales from Connecticut to Florida, either by having a courier drive the money or by using commercial airline flights.

In early 2011, the Florida narcotics trafficker hired BABE to drive large amounts of U.S. currency from New York or Connecticut to Florida.  BABE eventually learned that the money he was transporting were the proceeds of the narcotics trafficker’s oxycodone sales in Connecticut.  BABE, who was paid approximately $750 for each trip, transported at least $150,000 in cash to Florida in an effort to disguise the source of the funds.

BABE has been detained since his arrest on September 13, 2011.

Judge Hall has scheduled sentencing for May 1, 2013, at which time BABE faces a maximum term of imprisonment of 20 years.

Twenty individuals, including two law enforcement officers and three Transportation Security Agency officers, have been charged as a result of this investigation.

This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force, which includes personnel from the Connecticut State Police and the Bridgeport, Milford, Norwalk, Stamford and Westport Police Departments; the Drug Enforcement Administration in Florida and the U.S. Department of Homeland Security Office of Inspector General.  In addition, the U.S. Marshals Service and the Greenwich, Monroe, Danbury and Waterbury Police Departments have assisted the investigation.

U.S. Attorney Fein also acknowledged the cooperation of the Westchester County Department of Public Safety and the Florida Highway Patrol, and the substantial assistance provided by the United States Attorney’s Office for the Southern District of Florida.

This case is being prosecuted in the District of Connecticut by Assistant United States Attorneys Rahul Kale and Tracy Lee Dayton.

PUBLIC AFFAIRS CONTACT:

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