District of Connecticut

John H. Durham, United States Attorney for the District of Connecticut, announced that LAVON YOUNG, 39, of Union City, New Jersey, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 96 months of imprisonment, followed by three years of supervised release, for bank robbery.

According to court documents and statements made in court, at approximately noon on January 27, 2018, YOUNG and David C. Earl drove to a Key Bank branch located on East Main Street in Branford, and planned to rob the bank.  They both exited the car wearing dark upper-body clothing.  YOUNG also wore a dark, hooded sweatshirt and a green “scream mask” over his face.  Earl wore a mask over his lower face, sunglasses over his eyes, and a red-hooded sweatshirt under his overcoat.  The two men walked up to the bank entrance and pulled on the doors, but they were locked.  They returned to their car and drove off.

Less than an hour later, YOUNG and Earl drove to a TD Bank branch on Route 81 in Killingworth.  Dressed the same way when they had attempted to enter the Key Bank in Branford, YOUNG and Earl entered the TD Bank, told everyone to get down and demanded money from the tellers or else they would “blow their heads off.”  Earl possessed a pellet gun during the robbery.  A teller handed over multiple stacks of bills, totaling $9,754, and YOUNG and Earl fled.

YOUNG and Earl threw most of the money out of the windows of their car while driving from the bank, and while being pursued by law enforcement.  They were eventually apprehended by East Haven Police.  Investigators successfully recovered $9,479 of the $9,754 taken during the robbery.

YOUNG and Earl have been detained since January 27, 2018.  On July 11, 2018, YOUNG pleaded guilty to one count of bank robbery.

Earl, also of Union City, New Jersey, pleaded guilty to the same charge on May 15, 2018.  He awaits sentencing.

YOUNG’s criminal history includes a federal conviction for robbing a bank in Linden, New Jersey, in December 2008.  In May 2013, he was sentenced in the District of New Jersey to 63 months of imprisonment and three years of supervised release.  He was released from federal prison in March 2017 and committed the Killingworth bank robbery while on supervised release.  Supervised release violation proceedings for YOUNG are pending in the District of New Jersey.

This matter was investigated by the Federal Bureau of Investigation, Connecticut State Police, Branford Police Department and East Haven Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Henry Kopel and Douglas Morabito.

John H. Durham, United States Attorney for the District of Connecticut, announced that BYRON ELLIOTT VAUGHN, 32, of Waterbury, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 24 months of imprisonment, followed by five years of supervised release, for violating the Sex Offender Registration and Notification Act (SORNA).

According to court documents and statements made in court, in July 2009, VAUGHN was convicted in the Commonwealth of Virginia of rape.  He was sentenced to 10 years of incarceration, suspended after serving two years, and 15 years of probation.  VAUGHN also was ordered to comply with lifetime sex offender registration requirements.

VAUGHN was released from prison in November 2009, registered as a sex offender in Virginia and verified his registration as required through 2012.

In 2015, VAUGHN failed to update his sexual offender registration in Virginia, failed to advise Virginia of his change of residence to Connecticut, and failed to register in Connecticut as a sex offender when he moved to Connecticut and applied for employment in Waterbury in November 2016.  VAUGHN worked a hospital in Waterbury until he was arrested by the U.S. Marshals Service on August 9, 2017, on a violation of probation warrant that was issued in Virginia in December 2015.

VAUGHN has been detained since his arrest.  He pleaded guilty on June 18, 2018.

VAUGHN was convicted in Virginia of the probation violation and was sentenced to 77 months of imprisonment suspended after 60 months.  Judge Underhill ordered that 18 months of the 24-month federal sentence will run concurrently with the Virginia sentence, and six months will be consecutive to the Virginia sentence.

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

John H. Durham, United States Attorney for the District of Connecticut, announced that JODI ZILS GAGNE, 43, of Bristol, waived her right to be indicted and pleaded guilty today in Hartford federal court to one count of mail fraud related to her theft of more than $169,000 from individuals for whom she served as a court-appointed conservator.

According to court documents and statements made in court, ZILS GAGNE, an attorney, was a court-appointed conservator for several individuals in Connecticut.  A conservator is a person appointed by the probate court to oversee the financial or personal affairs of an adult who is incapable of managing his or her finances or unable to care for himself or herself.  Beginning in approximately May 2015, ZILS GAGNE defrauded several conserved individuals by misappropriating their money and overbilling them.  The money that ZILS GAGNE misappropriated was intended for the conserved persons’ medical care, housing, bills, personal expenses, and legitimate conservator fees.  ZILS GAGNE also misrepresented, or failed to disclose, material facts about her conservatorship activities to the Bristol probate court and others.

Through this scheme, ZILS GAGNE defrauded six victims of a total of $169,402.74.  She defrauded one victim of approximately $130,000, and appropriated $113,000 of that money under the guise of an “investment” when, in fact, it was a 10-year note that paid only a prime rate and was signed between her (as the victim’s conservator) and ZILS GAGNE’s husband.  The money was used to fund her husband’s start-up company, a Bristol-based internet radio station.  The terms and details of this transaction were only disclosed after extended proceedings in the probate court, during which ZILS GAGNE made false statements, sometimes under oath, to the probate court.

ZILS GAGNE is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on January 23, 2019, at which time she faces a maximum term of imprisonment of 20 years.

ZILS GAGNE is released on a $50,000 bond pending sentencing.

In September 2018, a Connecticut Superior Court judge suspended ZILS GAGNE from the practice of law.

This matter is being investigated by the Federal Bureau of Investigation and the Greenwich Police Department, with the assistance of the Connecticut Office of Chief Disciplinary Counsel and the New Britain State’s Attorney’s Office.  The case is being prosecuted by Assistant U.S. Attorney David T. Huang.

John H. Durham, United States Attorney for the District of Connecticut, announced that CAREEM BENTLEY, also known as “C-Lows,” 35, of Bridgeport, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 36 months of imprisonment, followed by three years of supervised release, for distributing heroin to an overdose victim.

This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.

According to court documents and statements made in court, on November 23, 2016, Monroe Police and emergency medical personnel responded to a residence in Monroe on a report of a suspected drug overdose.  At the scene, responders encountered an unresponsive 37-year-old male lying on the floor.  The male was pronounced deceased.  Investigators seized the victim’s cellphone, multiple folds of suspected heroin, and other items, and subsequently concluded that the victim purchased heroin from BENTLEY in the late evening of November 22, 2016.

BENTLEY was arrested on a criminal complaint on April 26, 2017.  On August 14, 2017, he pleaded guilty to one count of distribution of heroin.

This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the Monroe Police Department.  The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.

John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that YVES AUBOURG, 49, of New London, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to a federal tax offense.

According to court documents and statements made in court, AUBOURG prepared more than 2,000 federal tax returns for the 2011 through 2015 tax years through a tax return preparation practice he operated in New London.  AUBOURG falsified information on numerous returns that he prepared for clients by fabricating the existence of education expenses, fabricating deductions for business expenses and charitable contributions, and by claiming exemptions for fictitious dependents.

Through AUBOURG’s preparation of false tax returns, including his own tax returns, the government lost a total of $264,870.

AUBOURG pleaded guilty to one count of aiding and assisting the filing of a false tax return, an offense that carries a maximum term of imprisonment of three years.  Judge Meyer scheduled sentencing for January 15, 2019.

AUBOURG is required to make full restitution to the government.  The IRS is taking action to recover unpaid taxes from AUBOURG’s clients, and his restitution figure will be reduced as money is recovered from his clients.

This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Lauren C. Clark.

John H. Durham, United States Attorney for the District of Connecticut, announced that JAVON MOORNING, 39, of New Haven, pleaded guilty today in New Haven federal court to one count of possession with intent to distribute, and distribution of, heroin and crack cocaine.  MOORNING also admitted that he violated the conditions of his supervised release from a prior federal convictiion.

According to court documents and statements made in court, on July 15, 2011, MOORNING was sentenced in New Haven federal court to 100 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.  In December 2014, the sentencing judge reduced MOORNING’s sentence to 84 months of imprisonment to give MOORNING credit for time that he had served in state custody on related charges.  MOORNING was released from federal prison on June 1, 2018.

On June 15, 2018, MOORNING sold heroin and crack cocaine to an individual working with law enforcement.  On July 9, 2018, MOORNING sold heroin to the same individual.  When officers arrested MOORNING on July 24, 2018, he possessed additional amounts of heroin and crack cocaine.

MOORNING is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on January 9, 2019, at which time he faces a maximum term of imprisonment of 20 years on the new charges, and up to two years of imprisonment for violating the terms of his supervised release.

MOORNING has been detained since his arrest.

This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.

John H. Durham, United States Attorney for the District of Connecticut, announced that DEJUAN WARD, also known as “Hot Boi,” 21, of New Haven, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to racketeering and firearm charges stemming from his role in a violent street gang.

According to statements made in court, the New Haven Police Department’s Shooting Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) have been investigating approximately 40 unsolved shootings in New Haven and Hamden.  Ballistic examination of recovered cartridge cases determined that three firearms were used in 18 shootings committed in or around New Haven in 2016.  The investigation has revealed that the firearms were possessed by members and associates of the Goodrich Street Boys (“GSB”), a New Haven street gang, and that GSB members also were involved in a number of other shootings in 2016, many of them retaliatory against rival gang members.

On August 3, 2017, a grand jury in New Haven returned a 13-count indictment charging WARD and five other GSB members with racketeering, attempted murder, firearm and narcotics trafficking offenses.  The indictment alleges that, between September 2015 and May 2016, GSB members and associates were involved in six gang-related shootings that caused injuries to five individuals.

WARD pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity and one count of carrying a firearm during and in relation to a crime of violence.  In pleading guilty, WARD admitted that he and other GSB members sold drugs, and that he was present when a rival gang member was shot on September 17, 2015.

At sentencing, the government will present evidence that WARD was the shooter during this incident.

The charge of conspiracy to engage in a pattern of racketeering activity carries a maximum term of imprisonment of 20 years, and the charge of possession of a firearm during an in relation to a crime of violence carries a mandatory consecutive prison term of five years.

WARD is detained pending sentencing.  Judge Shea scheduled a sentencing hearing for November 28, 2018. 

The other five defendants also have pleaded guilty and are detained while awaiting sentencing.

U.S. Attorney Durham noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity.  PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.  Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities.  Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.

This investigation is being conducted by ATF and the New Haven Police Department.  The FBI, Hamden Police Department and New Haven State’s Attorney’s Office have provided critical assistance in the investigation.

An instrumental component of this investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.

This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Peter D. Markle, Rahul Kale and Jocelyn Courtney Kaoutzanis.

John H. Durham, United States Attorney for the District of Connecticut, announced that CHRISTOPHER STEVENS, 27, of East Lyme, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 18 months of imprisonment, followed by three years of supervised release, for distributing heroin to an overdose victim.

This prosecution is part of an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.

According to court documents and statements made in court, early in the morning of June 4, 2016, East Lyme Police and emergency medical personnel responded to a vehicle parked on the side of a road with its engine running and found a 25-year-old male slumped over dead in the driver’s seat, and a young child in the rear seat.  Investigators also found a torn wax paper baggy in the man’s hand and several other baggies under his body.

The Office of the Chief Medical Examiner for the State of Connecticut subsequently determined that the victim died from acute heroin and fentanyl toxicities.  

The investigation revealed that, shortly before he overdosed, the victim met STEVENS at STEVENS’ East Lyme residence, and STEVENS provided heroin to the victim at that time.

STEVENS was arrested on a federal criminal complaint on July 8, 2016.  On May 11, 2017, he pleaded guilty to one count of distribution of heroin.

STEVENS who is released on a $50,000 bond, was ordered to report to prison on November 8.

This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force with the assistance of the East Lyme Police Department.

The case was prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.

John H. Durham, United States Attorney for the District of Connecticut, announced that JAVIER VASQUEZ MARTINEZ, 39, a citizen of Honduras last residing in Meriden, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to one count of reentry of a removed alien.

According to court documents and statements made in court, VASQUEZ MARTINEZ was deported from the U.S. to Honduras in May 2016 following two state convictions for operating under the influence of drugs and/or alcohol, and one conviction for failure to appear.

VASQUEZ MARTINEZ subsequently reentered the U.S. illegally.

On July 2, 2018, VASQUEZ MARTINEZ was arrested by the West Haven Police Department and charged with two counts of evading responsibility resulting in injury/property damage and one count of operating a motor vehicle without a license.

The investigation revealed that VASQUEZ MARTINEZ, using the name “Merary Vasquez,” also had two state convictions in 2007 for operating under the influence.

Judge Hall scheduled sentencing for December 20, 2018, at which time VASQUEZ MARTINEZ faces a maximum term of imprisonment of 10 years.

VASQUEZ MARTINEZ has been detained since his arrest.

The state charges from July 2018 are pending.

This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.  The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.

John H. Durham, United States Attorney for the District of Connecticut, Brian C. Turner, Special Agent in Charge of the Federal Bureau of Investigation, and Hartford Police Chief David Rosado today announced that, on October 2, 2018, a grand jury in Hartford returned an indictment charging five alleged members of the Almighty Latin Kings Nation (“Latin Kings”) with kidnapping a firearm offenses.

The four-count indictment charges each of the following individuals with one count of kidnapping, one count of conspiracy to commit kidnapping, one count of carrying and using a firearm in during and in relation to a crime of violence, and one count of conspiracy to possess a firearm in furtherance of a crime of violence:

LUIS PITT, a.k.a. “Macho,”Cuz-o,” 23, of Hartford
JONATHAN OTERO, a.k.a. “Jax” 25, of Hartford
PEDRO CARILLO, a.k.a. “P,” 23, of Hartford
ANTHONY CARILLO, a.k.a. “Boogie,” 20, of Hartford
JOSUE FRANCO, a.k.a. “Sway,” 23, of Hartford

Pitt and Anthony Carillo were arrested today.  They appeared before U.S. Magistrate Robert A. Richardson in Hartford and are detained.  Otero, Pedro Carillo and Franco are incarcerated in state custody for unrelated offenses.

As alleged in the indictment, on January 26, 2018, Franco and Anthony Carillo lured an individual (“the victim”) to a residence on Benton Street in Hartford.  When the victim entered the residence, Pitt and Otero were waiting.  Pitt, Otero, Anthony Carillo and Franco then threatened, assaulted, and tortured the victim and prevented him from leaving the residence.  After the victim was restrained, Pedro Carillo arrived at the residence and participated in the ongoing assault and torture of the victim.  At times, the victim was threatened and assaulted with a firearm.

The indictment alleges that the defendants forced the victim to call his father and demand a ransom.  The victim was threatened that, if the victim’s family did not pay the ransom, the victim would be harmed or killed.

It is alleged that the victim was moved to different locations in order to obtain the ransom.  The victim eventually escaped.

The kidnapping charges carry a maximum term of imprisonment of life, and the firearm charges carry a mandatory consecutive term of imprisonment of seven years.

U.S. Attorney Durham 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’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department.  The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.  The Hartford Police Department’s Major Crimes Division has provided critical assistance to the investigation.

The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.

John H. Durham, United States Attorney for the District of Connecticut, and Mickey D. Leadingham, Special Agent in Charge, ATF Boston Field Division, today announced that a grand jury in Hartford returned an indictment yesterday charging PATRICK ROGERS, 38, of Waterbury, with one count of possession of firearms by a previously convicted felon.  

As alleged in court documents, ATF received information that ROGERS was distributing heroin and was interested in acquiring firearms.  In August and September 2018, an ATF special agent working in an undercover capacity made two controlled purchases of suspected heroin from ROGERS.  ROGERS then agreed to provide a quantity of heroin to the undercover agent in exchange for two firearms.  ROGERS was arrested on September 26, 2018, after he met the undercover agent at a location in Waterbury and took possession of two firearms that he traded for 160 bags of heroin.

The indictment alleges that ROGERS was convicted in state court in 1998 of sale of a hallucinogen or narcotic and robbery in the second degree, in 2008 of violation of a protective order, and in 2016 of possession of narcotics with the intent to distribute.

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

The charge of possession of a firearm by a previously convicted felon carries a maximum term of imprisonment of 10 years.

ROGERS has been detained since his arrest.

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

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Waterbury Police Department.  The case is being prosecuted by Assistant U.S. Attorney Natasha Freismuth.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.

John H. Durham, United States Attorney for the District of Connecticut, announced that HERSON GONZALEZ, also known as “Titi,” 39, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 48 months of imprisonment, followed by five years of supervised release, for his role in a New Haven drug trafficking ring.

According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad targeted a New Haven-based heroin trafficking organization led by Herson Gonzalez’s brothers, Bienvenido and Antonio Gonzalez.  The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, revealed that Bienvenido and Antonio Gonzalez purchased bulk quantities of heroin from individuals in New York and sold the heroin through a network of redistributors, including Herson Gonzalez, in New Haven and elsewhere.

The investigation resulted in federal charges against 24 individuals.

Herson Gonzalez was arrested on March 16, 2017.  On January 16, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin.

Bienvenido Gonzalez and Antonio Gonzalez pleaded guilty to related charges.  On March 28, Bienvenido Gonzalez was sentenced to 144 months of imprisonment.  Antonio Gonzalez awaits sentencing.

Herson Gonzalez’s criminal history includes 13 criminal convictions.  After pleading guilty in this federal case and while released on bond pending sentencing, he was arrested on state charges in Bristol.  He subsequently pleaded guilty to criminal trespass and assault in the third degree.

The DEA’s New Haven Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments.  The New Haven, East Haven and West Haven Police Departments, together with the U.S. Coast Guard, provided valuable assistance to the investigation.

This case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Patrick F. Caruso.

John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE GONZALEZ, also known as “Montana,” “Beat Montana” and “Carl Montana,” 22, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 36 months of imprisonment, followed by three months of home confinement and four years of supervised release, for selling heroin and fentanyl to an East Hartford overdose victim.

This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.

According to court documents and statements made in court, at approximately 10:30 a.m., on April 26, 2017, East Hartford Police and emergency medical personnel were dispatched to a residence on Main Street in East Hartford on a report of an unconscious male who was not breathing.  First responders located a 20-year-old male on the couch in the living room and pronounced him deceased.  At the scene, investigators located and collected drug paraphernalia, several empty wax baggies, and the victim’s cellphone.

The Office of the Chief Medical Examiner subsequently determined that the victim’s death was caused by “acute intoxication due to the combined effects of alprazolam, fentanyl and heroin.”

The investigation, which included witness interviews and analysis of the victim’s cellphone, revealed that the victim traveled to Hartford the night before his death and purchased heroin/fentanyl from GONZALEZ.  Analysis of another individual’s cellphone revealed that GONZALEZ sold heroin and fentanyl from at least December 2016 through April 2017.

GONZALEZ has been detained since his arrest on a federal criminal complaint on November 30, 2017.  On May 22, 2018, he pleaded guilty to one count possession with intent to distribute, and distribution of, heroin and fentanyl.

This matter was investigated by the Drug Enforcement Administration’s Hartford Task Force and the East Hartford and Monroe Police Departments.  The case was prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.  The DEA Task Force includes participants from the Bristol, East Hartford, Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Willimantic and Windsor Locks Police Departments, and the Food and Drug Administration.

John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIAM REIDELL, 42, of Branford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to three months of imprisonment, followed by six months of home confinement and three years of supervised release, for his role in a large-scale fencing operation.  Judge Shea ordered REIDELL to perform 150 hours of community service while on supervised release.

According to the evidence presented during the trial of REIDELL and his co-defendant, George J. Connelly, Jr., Connelly and another co-defendant, Paul Muzyka, operated a licensed secondhand store, Ace Amusements, located at 42 Kimberly Avenue in New Haven.   At Ace Amusements, Connelly and Muzyka knowingly purchased stolen property from “boosters,” who typically were shoplifters with opioid addictions.  The boosters stole the goods from retail stores such as Home Depot, Target, CVS, and Lowe’s, and sold the goods at Ace Amusements for approximately one-third of their retail prices. Connelly and Muzyka then resold the stolen goods at Ace Amusements, and also online at websites such as eBay.  Connelly and Muzyka also sold property to resellers, including REIDELL, who then resold the property online using online websites.

The trial evidence showed at least $1.5 million in sales on eBay from 2007 to 2016 by individuals, including REIDELL, who purchased stolen items at Ace Amusements to resell online.

On May 23, 2018, REIDELL was found guilty of one count of conspiracy to commit the interstate transport of stolen property, and one count of interstate transport of stolen property.  Connelly was found guilty of one count of conspiracy to commit the interstate transport of stolen property, and two counts of interstate transport of stolen property.

On March 16, 2018, Muzyka, of North Haven, pleaded guilty to one count of conspiracy to commit the interstate transport of stolen property and one count of interstate transport of stolen property.

REIDELL, who is released on a $100,000 bond, was ordered to report to prison on December 3, 2018.

On October 1, 2018, Connelly was sentenced to 78 months of imprisonment and was ordered to forfeit an interest of $86,220.85 in a house he owns on Tuttle Drive in New Haven, $10,338.68 that was seized from his and Ace Amusements’ bank accounts, and $13,078.67 in cash that was seized from his person and from various locations inside Ace Amusements on January 25, 2016.

Muzyka is scheduled to be sentenced on November 15.

This investigation was conducted by the Federal Bureau of Investigation, with assistance from the Connecticut State Police, U.S. Marshals Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut Department of Correction, Connecticut Chief State’s Attorney’s Office, and the New Haven, North Haven, Milford, West Haven, Wallingford, Hamden and Orange Police Departments.

This case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and David T. Huang.

John H. Durham, United States Attorney for the District of Connecticut, announced that CHRISTINE MILES, 59, of Windsor Locks, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by three years of supervised release, for drug trafficking and money laundering offenses related to the distribution of heroin and various prescription medications.

According to court documents and statements made in court, beginning in approximately 1998, MILES and others conspired to possess and distribute heroin, oxymorphone, hydrocodone and alprazolam.  MILES is a retired nurse.

On August 4, 2016, members of the North Central Narcotics Task Force and the DEA conducted a court-authorized search of MILES and Montoya’s residence at 350 North Street in Windsor Locks and seized a large quantity of various prescription medications, approximately two pounds of marijuana, $10,093 in cash and more than $13,000 in gift cards.  MILES and her husband, Oscar Montoya, were arrested on state charges after the search.

The investigation revealed that, through this drug trafficking conspiracy, MILES and Montoya amassed more than $700,000 in a number of individual and jointly held bank accounts.  The investigation also revealed that, after MILES’ arrest on state drug charges in August 2016, MILES and Montoya used $17,359 of drug proceeds to purchase 11 U.S. Postal Service money orders and a bank cashier’s check payable to a New Jersey-based moving company for a planned move from Connecticut to New Mexico.

MILES and Montoya were arrested on federal charges on November 16, 2017, and have been detained since their arrests.  On February 2, 2018, another court-authorized search of their North Street residence revealed additional drug evidence and $41,904 in cash.

On May 15, 2018, MILES pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, oxymorphone, hydrocodone and alprazolam, and one count of engaging and attempting to engage in a monetary transaction affecting interstate commerce, involving criminally derived property of a value greater than $10,000.

As part of this case, MILES and Montoya agreed to forfeit their Windsor Locks residence and $767,056.74 seized from the residence and multiple bank accounts.

Montoya pleaded guilty to the same charges and, September 4, 2018, was sentenced to 36 months of imprisonment.

On May 22, 2018, Miles’s daughter, Christy Miles, pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, oxymorphone, hydrocodone and alprazolam.  She awaits sentencing.

This matter has been investigated by the Drug Enforcement Administration’s Hartford Resident Office and the U.S. Marshals Service, with the valuable assistance of the North Central Narcotics Task Force and the Windsor Locks, Enfield, Vernon, East Windsor and Manchester Police Departments.  The case is being prosecuted by Assistant U.S. Attorneys David X. Sullivan and Patrick F. Caruso.

John H. Durham, United States Attorney for the District of Connecticut, announced that GEORGE J. CONNELLY, JR., 48, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 78 months of imprisonment, followed by three years of supervised release, for his role in a large-scale fencing operation. 

According to the evidence presented during the trial of CONNELLY and his co-defendant, William Reidell, CONNELLY and another co-defendant, Paul Muzyka, operated a licensed secondhand store, Ace Amusements, located at 42 Kimberly Avenue in New Haven.   At Ace Amusements, CONNELLY and Muzyka knowingly purchased stolen property from “boosters,” who typically were shoplifters with opioid addictions.  The boosters stole the goods from retail stores such as Home Depot, Target, CVS, and Lowe’s, and sold the goods at Ace Amusements for approximately one-third of their retail prices.  CONNELLY and Muzyka then resold the stolen goods at Ace Amusements, and also online at websites such as eBay.  CONNELLY and Muzyka also sold property to resellers, including Reidell, who then resold the property online using online websites.

The trial evidence showed at least $1.5 million in sales on eBay from 2007 to 2016 by individuals, including Reidell, who purchased stolen items at Ace Amusements to resell online.

On May 23, 2018, CONNELLY was found guilty of one count of conspiracy to commit the interstate transport of stolen property, and two counts of interstate transport of stolen property.  Reidell was found guilty of one count of conspiracy to commit the interstate transport of stolen property, and one count of interstate transport of stolen property.

On March 16, 2018, Muzyka, of North Haven, pleaded guilty to one count of conspiracy to commit the interstate transport of stolen property and one count of interstate transport of stolen property.

As part of the sentence, Judge Shea ordered CONNELLY to forfeit an interest of $86,220.85 in a house he owns on Tuttle Drive in New Haven, $10,338.68 that was seized from his and Ace Amusements’ bank accounts, and $13,078.67 in cash that was seized from his person and from various locations inside Ace Amusements on January 25, 2016.

CONNELLY, who is released on a $100,000 bond, was ordered to report to prison on December 3, 2018.

Reidell, of Branford, is scheduled to be sentenced tomorrow, and Muzyka is scheduled to be sentenced on November 15.

This investigation was conducted by the Federal Bureau of Investigation, with assistance from the Connecticut State Police, U.S. Marshals Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut Department of Correction, Connecticut Chief State’s Attorney’s Office, and the New Haven, North Haven, Milford, West Haven, Wallingford, Hamden and Orange Police Departments.

This case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and David T. Huang.

John H. Durham, United States Attorney for the District of Connecticut, announced that PASQUALE F. FURANO, 48, of Greenwich, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 12 months of imprisonment, followed by one year of supervised release, for tax evasion.

According to court documents and statements made in court, FURANO is the sole owner of Pasquale Furano Landscaping, which generated business income by providing landscaping and snowplowing services to approximately 150 to 200 commercial and residential customers in Fairfield County, Connecticut, and Westchester County, New York.  For the 2009 through 2013 tax years, FURANO underreported more than $2.5 million in gross receipts on his federal tax returns.  For those five years, FURANO falsely reported total taxable income of $264,697 when his actual total taxable income was $1,751,727.  Consequently, he only paid a total of $44,213 in federal taxes when he actually owed an additional $540,182.

The investigation revealed that FURANO evaded the payment of his federal taxes by negotiating approximately 2,436 client checks, totaling approximately $1,295,990.23, at the bank for cash rather than depositing the checks into his business accounts, sometimes cashing up to 38 checks in one day.  FURANO also did not disclose to his tax return preparer his receipt of cashed client checks and other deposited client checks.

On October 16, 2014, IRS special agents conducted a court-authorized search of FURANO’s residence and seized handwritten business records of his actual gross receipts and $613,842 in cash.

Prior to his sentencing, FURANO paid the IRS $1,099,471.87, which represents all of the back taxes he owed for the 2009 through 2013 tax years, plus interest and penalties.

FURANO also has paid the Connecticut Department of Revenue Services (DRS) $112,360 in sales tax he collected from his customers from 2009 to 2013, but did not pay to the DRS.

On March 15, 2018, FURANO pleaded guilty to one count of tax evasion.

FURANO, who is released on bond, was ordered to report to prison on November 2, 2018.

This matter was investigated by the Internal Revenue Service, Criminal Investigation Division.  The case was prosecuted by Assistant United States Attorney Peter S. Jongbloed.

John H. Durham, United States Attorney for the District of Connecticut, today announced that three New Haven men have pleaded guilty in Hartford federal court to various charges related to their roles in a violent street gang.

According to statements made in court, the New Haven Police Department’s Shooting Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) have been investigating approximately 40 unsolved shootings in New Haven and Hamden.  Ballistic examination of recovered cartridge cases determined that three firearms were used in 18 shootings committed in or around New Haven in 2016.  The investigation has revealed that the firearms were possessed by members and associates of the Goodrich Street Boys (“GSB”), a New Haven street gang, and that GSB members also were involved in a number of other shootings in 2016, many of them retaliatory against rival gang members.

On August 3, 2017, a grand jury in New Haven returned a 13-count indictment charging MILTON WESTLEY, CLIFFORD BRODIE, SEDALE PERVIS, DEJUAN WARD, MICHAEL BELLE, and MICHAEL VIA with racketeering, attempted murder, firearm and narcotics trafficking offenses.  The indictment alleges that, between September 2015 and May 2016, GSB members and associates were involved in six gang-related shootings that caused injuries to five individuals.

On September 21, 2018, SEDALE PERVIS, also known as “Scope,” 26, pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity and one count of possession of a firearm in furtherance of a drug trafficking crime.  In pleading guilty, Pervis admitted that, on September 2, 2016, he possessed a distribution quantity of marijuana, and also possessed a loaded Ruger model P85, 9mm handgun.  During the investigation, law enforcement also recovered a .380 caliber firearm that contained Pervis’s DNA.

Pervis admitted that he knew that other GSB members planned to use the 9mm firearm to shoot an individual on May 27, 2016.  Ballistics from both the 9mm and .380 firearm were found at the scene of the shooting on that date.  The investigation revealed that the 9mm and .380 caliber firearms also were used in other shootings.

On September 26, 2018, CLIFFORD BRODIE, also known as Cliff G,” 21, pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity and one count of brandishing of a firearm during and in relation to a crime of violence.  In pleading guilty, Brodie admitted that he and other GSB members sold cocaine and heroin.  He also admitted that he was present and brandished a firearm at a February 6, 2016, shooting of rival gang members during which a bystander was shot and almost died.  He further admitted that, on April 4, 2016, after rival gang members were shot by a fellow GSB member, he drove the assailants home.

On September 27, 2018, MICHAEL BELLE, also known as “MB,” 20, pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity.  In pleading guilty, BELLE admitted that he was present at the January 23, 2016, shooting at a rival gang member’s house.  He also admitted that he and other GSB members agreed to shoot an individual on April 3, 2016, because the individual had information that led to the conviction of a GSB member.

The charge of conspiracy to engage in a pattern of racketeering activity carries a maximum term of imprisonment of 20 years.  As to Pervis, the charge of possession of a firearm in furtherance of a drug trafficking crime carries a mandatory consecutive prison term of five years.  As to Brodie, the charge of possession of a firearm during an in relation to a crime of violence carries a mandatory consecutive prison term of seven years.

Milton Westley, also known as “Reese,” and Michael Via, also known as “Mike Live,” previously pleaded guilty to related charges and await sentencing.

All of the defendants who have pleaded guilty are detained pending sentencing.

Dejuan Ward is awaiting trial.  As to Ward, U.S. Attorney Durham 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.

U.S. Attorney Durham noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity.  PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.  Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities.  Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.

This investigation is being conducted by ATF and the New Haven Police Department.  The FBI, Hamden Police Department and New Haven State’s Attorney’s Office have provided critical assistance in the investigation.

An instrumental component of this investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.

This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Peter D. Markle, Rahul Kale and Jocelyn Courtney Kaoutzanis.

John H. Durham, United States Attorney for the District of Connecticut, announced that RAFAEL NEFTALI CASTILLO BAEZ, 34, a citizen of the Dominican Republic last residing in the Bronx, N.Y., was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 24 months of imprisonment, followed by five years of supervised release, for supplying heroin to a New Haven drug trafficking ring.

According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad targeted a New Haven-based heroin trafficking organization led by Bienvenido and Antonio Gonzalez.  The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, revealed that the Gonzalez brothers purchased bulk quantities of heroin from CASTILLO BAEZ and other New York suppliers and sold the heroin through a network of redistributors in New Haven and elsewhere.  CASTILLO BAEZ regularly traveled from New York to Connecticut to deliver up to a kilogram of heroin at a time to the Gonzalez organization.

The investigation resulted in federal charges against 24 individuals.

CASTILLO BAEZ has been detained since his arrest on March 24, 2017.  On May 25, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin.

CASTILLO BAEZ, who illegally entered the U.S. in 2010, faces immigration proceedings when he completes his prison term.

Bienvenido Gonzalez and Antonio Gonzalez pleaded guilty to related charges.  On March 28, Bienvenido Gonzalez was sentenced to 144 months of imprisonment.  Antonio Gonzalez awaits sentencing.

The DEA’s New Haven Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments.  The New Haven, East Haven and West Haven Police Departments, together with the U.S. Coast Guard, provided valuable assistance to the investigation.

This case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Patrick F. Caruso.

John H. Durham, United States Attorney for the District of Connecticut, announced that ARGENYS RODRIGUEZ, 22, of Springfield, Massachusetts, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 12 months and one day of imprisonment, followed by two years of supervised release, for his role in an ATM “jackpotting” scheme. 

According to court documents and statements made in court, the matters stems from investigation into malware attacks on ATM machines in Connecticut and elsewhere.  In a scheme commonly referred to as “jackpotting,” individuals use malware that is designed to cause an ATM to eject all of the U.S. currency contained in the machine.  As part of the scheme, individuals dressed as legitimate repair technicians install malware on an ATM.  Other individuals then proceed to extract all of the cash from the ATM.

On January 27, 2018, Citizens Bank investigators contacted police after they observed what appeared to be a jackpotting attack on an ATM in Cromwell.  On that date, Cromwell Police encountered RODRIGUEZ and Alex Alberto Fajin-Diaz near an ATM that had been compromised with malware and was in the process of dispensing $20 bills.  A search of RODRIGUEZ and Fajin-Diaz’s vehicle revealed tools and electronic devices consistent with items needed to compromise an ATM machine to dispense its cash contents.  RODRIGUEZ and Fajin-Diaz were found in possession of approximately $5,600 in cash, but the investigation revealed that a total of $63,200 was taken from the ATM on that date.

The investigation further revealed that, on January 22, 2018, RODRIGUEZ, Fajin-Diaz and others illegally obtained $63,820 from a Citizens Bank ATM in Rhode Island.

Judge Bryant ordered RODRIGUEZ to pay restitution in the amount of $121,355.38.

On June 18, 2018, RODRIGUEZ pleaded guilty to one count of conspiracy to commit bank fraud.

RODRIGUEZ, who is released on a $250,000 bond, was ordered to report to prison on November 26, 2018.

Fajin-Diaz, a citizen of Spain, pleaded guilty to the same charge on June 12, 2018, and awaits sentencing.  He has been detained since his arrest on January 27.

This investigation is being conducted by the Connecticut Financial Crimes Task Force, U.S. Secret Service, Connecticut State Police, Chief State’s Attorney’s Office, Middlesex State’s Attorney’s Office, Cromwell Police Department, Middletown Police Department and Greenwich Police Department.  The case is being prosecuted by Assistant U.S. Attorney Ray Miller.

John H. Durham, United States Attorney for the District of Connecticut, today announced that HELAR CAMPOS, MD, a physician with a practice in New London and Norwich, has entered into a civil settlement with the government in which he will pay $99,912 to resolve allegations that he violated the False Claims Act.

The allegations against CAMPOS involve fraudulent billing to Medicare and Medicaid for evaluation and management (“E&M”) services, commonly referred to as physician office visits.  The government alleges that CAMPOS submitted claims to Medicare and Medicaid for E&M services that were not performed in accordance with program requirements.  The government alleges that CAMPOS “upcoded” certain office visit services, submitting claims to Medicare and Medicaid by using a higher-paying billing code when services with lower-paying billing codes were actually provided.  Specifically, the government alleges that CAMPOS submitted claims for E&M services under CPT code 99214 when he should have submitted the claims under CPT code 99213 or 99212, which are less complex services, reimbursed at a lower rate.

To resolve his liability under the False Claims Act, CAMPOS will pay $99,912 to reimburse the Medicare and Medicaid programs for conduct occurring from January 1, 2009, through December 31, 2012.

Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $11,181 to $22,363 for each false claim.

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

U.S. Attorney Durham encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force (203) 785-9270 or 1-800-HHS-TIPS.

John H. Durham, United States Attorney for the District of Connecticut, announced that that, on September 5, 2018, a federal grand jury in Hartford returned a superseding indictment charging DANIEL McCLAIN, 65, of Spotsylvania, Virginia, and KENNETH MIX, 60, of Ebensburg, Pennsylvania, with federal offenses related to the false certification of bridge inspection vehicles.

McClain and Mix appeared today in Hartford federal court and entered pleas of not guilty to the charges.

According to the superseding indictment, Under Bridge Inspection (“UBI”) vehicles are vehicles that contain a moveable boom with a platform.  The vehicles are used to conduct inspections of bridges by positioning the vehicle on top of the bridge and, using the boom, lifting a platform carrying inspectors alongside or beneath a bridge deck.  “Company A” rents or leases bridge access equipment, including UBI vehicles, to engineering companies and government agencies for use on bridge inspection and bridge maintenance projects.  Company A’s UBI vehicles travel on interstate highways to job locations throughout the U.S.  Company A has several locations, including one in Connecticut.

McClain is the sole owner and president of Company A, and Mix is an employee of the company.  The indictment alleges that, between approximately January 2012 and January 2015, McClain and Mix participated in the creation of false or fictitious Certificates of Unit Test/Examination of Material Handling Device for the UBI vehicles in Company A’s fleet.  The Certificates, which were provided to an investigator for the Occupational Safety and Health Administration (“OSHA”), represented that a UBI vehicle was examined and that the examination met federal requirements when McClain and Mix knew that, in fact, an examination was not conducted as set forth on the Certificates.

In addition, the indictment alleges that McClain falsified records in a federal investigation when he submitted an internal investigation report with false statements relating to a fatal accident that occurred on August 26, 2015.  McClain also transmitted false and fraudulent documentation to the Connecticut Department of Transportation in order to persuade officials to lift a moratorium preventing Company A from doing business in Connecticut while an investigation was conducted.

The indictment charges McClain and Mix with two counts of use of a false document, an offense that carries a maximum term of imprisonment of five years on each count.  The indictment also charges McClain with one count of falsifying records in a federal investigation, an offense that carries a maximum term of imprisonment of 20 years, and two counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count.

McClain and Mix are released pending trial.

Mix was originally charged in an indictment that was returned on March 6, 2018.

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

This matter is being investigated by the U.S. Department of Transportation – Office of Inspector General and the U.S. Department of Labor – Office of Inspector General.  The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.

John H. Durham, United States Attorney for the District of Connecticut, today announced that KinderCare Education LLC (“KinderCare”) of Portland, Oregon, has entered into a settlement agreement with the government to resolve allegations that KinderCare’s child care programs and other services were not accessible to children with Type 1 diabetes who are dependent on insulin injections, in violation of the Americans with Disabilities Act of 1990 (“ADA”).

KinderCare currently operates approximately 1,800 facilities in the U.S., and the settlement agreement applies to all of KinderCare’s facilities.

The matter was initiated by a complaint filed with the U.S. Attorney’s Office for the District of Connecticut by Connecticut’s Center for Children’s Advocacy (CCA) alleging violations of Title III of the ADA.  Specifically, the complaint alleges that KinderCare refused to assist two children who had been diagnosed with Type 1 diabetes with insulin administration.  A third complaint against KinderCare by the parent of another child with Type 1 diabetes was filed by CCA during the course of the investigation.  The government determined that KinderCare’s national policy and practice was that KinderCare staff would not directly administer insulin to children via a syringe or pen.  Instead, KinderCare required parents of the children identified in the complaint to appear at its facility to administer the insulin to their children or hire another person, at the parents’ own expense, to do so.

Title III of the ADA prohibits discrimination on the basis of disability in the full and equal enjoyment of the goods, services, facilities, privileges, advantages or accommodations of any place of public accommodation.  KinderCare is a private entity that operates child care facilities that are places of “public accommodation” within the meaning of Title III of the ADA. 

The settlement agreement resolves complaints that KinderCare was discriminating against three children with insulin dependent diabetes, on the basis of disability, by failing to make certain reasonable modifications for those children.  Under the agreement, KinderCare is obligated to take critical steps toward improving access for children with Type 1 diabetes, including revising its policies and procedures, revising its training, and performing initial and ongoing assessments of the need for reasonable accommodations.  KinderCare must evaluate each request on an individualized basis, relying on objective evidence and current medical standards.

KinderCare has agreed that “where a parent or guardian and a child’s physician or other qualified health care professional deem it appropriate … for a child to be assisted in diabetes care by a layperson, training child care staff members to assist with routine diabetes care tasks, including the administration of insulin by pen, syringe, or pump, is generally a reasonable modification under the ADA, unless KinderCare can demonstrate that the individual circumstances cause a fundamental alteration,” as defined under the ADA.

KinderCare also has agreed to pay $8,000 to each of the three Complainants to resolve this matter.

“The U.S. Attorney’s Office will continue to investigate and aggressively enforce violations of the Americas with Disabilities Act, especially violations that affect children and other vulnerable residents of Connecticut,” said U.S. Attorney Durham.  “Parents rely on dependable childcare in order to work or go to school, and every child should have equal access to childcare and educational facilities.  I thank KinderCare’s management for their cooperation during this investigation and for addressing these ADA issues without the need for litigation. Their actions will ensure that children with Type 1 diabetes can enjoy the same benefits that other children enjoy, while giving their parents the confidence that staff will be trained to ensure that their children are well cared for.”

The agreement is effective for three years, during which time the U.S. Attorney’s Office will monitor KinderCare’s compliance.

A copy of the settlement agreement may be found here.

This matter was handled by Assistant U.S. Attorney Vanessa Roberts Avery.

Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.

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

John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that STEVEN CIOFFI, 32, of Stamford, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to a federal tax offense.

According to court documents and statements made in court, CIOFFI owned 50 percent of Nepperhan Restaurants Group, Inc., doing business as ReNapoli Pizza, in Old Greenwich, Connecticut, and Pinocchio Pizza in Pound Ridge, New York.  He also owned 25 percent of Odell Pizza, Inc., doing business as Amore Cucina and Bar in Stamford, Connecticut.  CIOFFI’s business partner owned the other interests in these entities, as well as other pizza restaurants.

CIOFFI and others in the businesses engaged in a practice whereby cash was removed from the cash register and not deposited into the restaurant’s operating bank account.  The businesses’ outside bookkeeper and accountant used the bank records to determine business gross receipts.  When cash was removed from the register and not deposited into the business bank account, the cash would not be reported to the Internal Revenue Service.  CIOFFI also knew that certain employees had their wages paid in cash, and that a certain number of the employees were paid either a portion or the entirety of their wages “off the books.”  By paying various expenses in cash and “off the books,” CIOFFI, his business partner and others facilitated the manipulation of net income reported to the IRS and the underpayment of withholding taxes to the IRS.

As a result of the scheme, the loss to the IRS in income taxes and employment taxes for the 2013 through 2015 tax years was $122,177.59.

CIOFFI pleaded guilty to one count of aiding and assisting in the filing of a false tax return, an offense that carries a maximum term of imprisonment of three years, a fine of up to $250,000, and full restitution to the IRS.

A sentencing date is not scheduled.  CIOFFI is released on a $40,000 bond pending sentencing.

This ongoing investigation is being conducted by the Internal Revenue Service, Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.

John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIAM GAUVIN, 43, of Andover, Massachusetts, waived his right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of receipt of child pornography.

According to court documents and statements made in court, between approximately October 2016 and March 2017, GAUVIN, using the name “Will Wiggins,” solicited a 17-year-old boy in Connecticut to engage in sexually explicit conduct over Skype.  In exchange for the minor victim transmitting visual depictions of sexually explicit conduct to GAUVIN, GAUVIN paid the minor victim more than $3,000 using PayPal.  GAUVIN also asked the minor victim to persuade his brother, who was 15, to engage in sexually explicit conduct in exchange for money.

GAUVIN resided in Worcester, Massachusetts, at the time of the criminal conduct.

Judge Shea scheduled sentencing for December 20, 2018, at which time GAUVIN faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.

GAUVIN was arrested on a federal criminal complaint on November 1, 2017.  He is released on a $100,000 bond pending sentencing.

This matter has been investigated by Homeland Security Investigations and the Connecticut State Police, with the assistance of the Worcester Police Department.  The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.

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.

John H. Durham, United States Attorney for the District of Connecticut, announced that EDWARD J. KOSINSKI, MD, 70, of Weston, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to six months of imprisonment, two years of supervised release and a $500,000 fine for insider trading.

On November 28, 2017, a jury found KOSINSKI guilty of two counts of securities fraud-insider trading.  According to the evidence presented during the trial, on January 29, 2014, KOSINSKI, a cardiologist, entered into a Clinical Study and Research Agreement with an authorized agent of Regado Biosciences, Inc., formerly a Delaware corporation whose common stock traded on the NASDAQ under the ticker symbol “RGDO.”  KOSINSKI, as a principal investigator for Regado’s clinical trial, was required to maintain in strict confidence all confidential information he received from Regado or its agent during the course of the clinical trial.  In May 2014, KOSINSKI owned 40,000 shares of Regado common stock.

On June 29, 2014, KOSINSKI and other principal investigators received an email from the clinical trial team stating that there had been several allergic reactions during the clinical trial, the acceptance of new subjects was put on hold and the Data and Safety Monitoring Board (“DSMB”) would be reviewing the recent events.  On June 30, 2014, while in possession of this non-public information, KOSINSKI sold his 40,000 shares of Regado common stock for between $6.59 and $7.00 per share.  On July 2, 2014, after the close of the market, Regado publicly announced that the DSMB initiated an unplanned review of the clinical trial and patient enrollment had been suspended until the DSMB completed its review.  On July 3, 2014, the stock fell $3.95 from the day’s previous closing price, to close at $2.81.

By selling his shares of Regado stock KOSINSKI avoided a loss of approximately $160,000.

On July 29, 2014, KOSINSKI and other principal investigators received an email from the clinical trial team stating that a death occurred in the clinical trial and that the trial was on hold.  On July 31, 2014, while in possession of this material, non-public information, KOSINSKI purchased 50 Regado common stock put option contracts with a strike price of $2.50.  On August 25, 2014, before the market opened, Regado publicly announced that it permanently halted the clinical trial and the price of Regado common stock fell approximately 60 percent.  KOSINSKI then purchased 5,000 shares of Regado common stock for approximately $1.13 per share and exercised his put options, netting more than $3,000.

KOSINSKI, who is released on a $500,000 bond, was ordered to report to prison on January 4, 2019.

This matter was investigated by the Federal Bureau of Investigation was prosecuted by Assistant U.S. Attorneys Heather Cherry and Jonathan Francis.

In a related federal civil matter, KOSINSKY has been charged by the Securities and Exchange Commission.  (Securities and Exchange Commission v. Edward J. Kosinski 3:16-cv-01322)

John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that SERAFINO CANINO, 52, of Torrington, waived his right to be indicted and pleaded guilty today in Bridgeport federal court to one count of tax evasion.

According to court documents and statements made in court, CANINO was employed by and had an ownership interest in Innovative Concepts Corporation (“ICC”), a company that manufactured and distributed small power and hand tools.  ICC contracted with factories in Asia through intermediaries located in Taiwan.  The intermediaries were responsible for, among other things, negotiating with the factories in Asia, ensuring the shipment of manufactured products to ICC, and invoicing ICC for the manufacturing of its products.

From 2008 through 2011, CANINO engaged in fraudulent billing using two of ICC’s intermediaries in Taiwan whereby CANINO instructed the intermediaries to charge ICC an inflated price and kick back the overage to CANINO using overseas bank accounts and an overseas corporate entity.  Through this scheme, CANINO improperly received more than $633,000 in income.  CANINO failed to disclose this illegal income to his accountants who prepared his federal tax returns, and he failed to report the income on his 2008, 2009, 2010 and 2011 tax returns.  The total tax loss to the Internal Revenue Service was $186,358.

CANINO is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on December 17, 2018, at which time he faces a maximum term of imprisonment of five years and more than $430,000 in back taxes, interest and penalties.

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

John H. Durham, United States Attorney for the District of Connecticut, announced that TRAVIS W. McCOY, 24, of Houston, Texas, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 156 months of imprisonment, followed by a lifetime of supervised release, for enticing minors to engage in sexual activity over the internet.

According to court documents and statements made in court, between approximately August 2015 and March 2017, while he was attending college and living in New London, McCOY used internet-based video chatting services, including Kik and Google Hangouts, and internet-based gaming systems, such as Xbox Live, to entice four minor males between the ages of 9 and 14 to engage in sexually explicit conduct over video-chatting services, such as Skype.  McCOY either took screen shots of the minors engaged in sexual activity, or requested and received from the minors digital images and videos in which the minors are depicted engaging in sexual activity.  McCOY also sent sexually explicit images and videos of himself to the minor victims.

The investigation revealed that McCOY initially met one of the minor victims at a summer camp in Texas where McCOY had worked as a camp counselor.

The investigation further revealed that McCOY maintained three Dropbox accounts and gave the password to one of the accounts to a person living in Los Angeles as a way to share and receive child pornography.  The Dropbox accounts contained 684 images and more than 89 hours of videos of child pornography, and were accessed by people around the world.  There is no evidence that McCOY distributed any of the images or videos he received from the four minor victims he enticed.

McCOY has been detained since his arrest on June 28, 2017.  On June 27, 2018, he pleaded guilty to one count of enticement of a minor to engage in sexual activity.

This matter was investigated by Homeland Security Investigations, the New London Police Department and the Houston Police Department.  The case was prosecuted by Assistant U.S. Attorney Nancy V. Gifford.

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.

John H. Durham, United States Attorney for the District of Connecticut, and Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, today announced that, on September 18, 2018, a federal grand jury in New Haven returned a five-count indictment charging JAMES LEBEL, 40, of no certain address, and MICHELLE BARBEAU, 51, of Brooklyn, Conn., with offenses related to the theft of U.S. Postal money orders.

LEBEL was arrested yesterday and is detained pending a hearing that is scheduled for September 26.  BARBEAU was arrested today and was released on a $100,000 bond.

As alleged in the indictment, BARBEAU was employed by the U.S. Postal Service at the Wauregan Post Office in Plainfield.  Between April and September 2017, LEBEL and BARBEAU conspired to take blank U.S. Postal money orders from the Wauregan Post Office and imprint them in various denominations.  LEBEL then cashed more than $60,000 in fraudulently imprinted postal money orders at other post offices.

The indictment charges LEBEL and BARBEAU with one count of conspiracy to commit wire fraud.  The indictment also charges LEBEL with four counts of wire fraud.  Each charge carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.

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

This matter is being investigated by the U.S. Postal Service, Office of the Inspector General.  The case is being prosecuted by Assistant U.S. Attorney Ray Miller.

John H. Durham, United States Attorney for the District of Connecticut, today announced that, on September 6, 2018, a federal grand jury in Bridgeport returned an 11-count indictment charging BARRY DUCLOS, 39, of Norwich with fentanyl analogue trafficking and firearm possession offenses.

DUCLOS appeared today before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport and entered a plea of not guilty to the charges.  DUCLOS has been detained since his arrest on a criminal complaint on February 12, 2018.

As alleged in court documents and statements made in court, between September 2017 and February 2018, DUCLOS operated a vendor page known as “Dream Market” on the dark web.  DUCLOS, using the alias 1NOLEFB1, advertised the sale of fentanyl analogues on Dream Market.  He then used the U.S. Mail to ship fentanyl analogues to customers who paid for the drugs using Bitcoin.

A search of DUCLOS’s residence at the time of his arrest revealed a YHM rifle with multiple magazines, two of which were extended magazines.  The firearm was loaded with a round in the chamber.  Investigators also located and seized a quantity of fentanyl from the residence.

It is further alleged that DUCLOS was convicted in state court, in February 2001, of sale of narcotics and, in March 2017, of larceny in the third degree.

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.

The indictment charges DUCLOS with one count of possession with intent to distribute, and distribution of, 10 grams or more of fentanyl and fentanyl analogues, an offense that carries a mandatory minimum term of imprisonment of five years and maximum term of imprisonment of 40 years.  The indictment also charges DUCLOS with eight counts of possession with intent to distribute, and distribution of, fentanyl analogues, an offense that carries a maximum term of imprisonment of 20 years on each count.  DUCLOS also is charged with one count of possession of a firearm by a convicted felon, an offense that carries a maximum term of imprisonment of 10 years, and one count of possession of a firearm in furtherance of a drug trafficking crime, and offense that carries a mandatory consecutive five-year term of imprisonment.

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

This matter is being investigated by the U.S. Postal Inspection Service and the Drug Enforcement Administration.  The case is being prosecuted by Assistant U.S. Attorney Vanessa Richards.

John H. Durham, United States Attorney for the District of Connecticut, announced that DAVID MONSERATTE TORRES, 30, of New Jersey, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 170 months of imprisonment, followed by five years of supervised release, for trafficking heroin.

According to court documents and statements made in court, this matter stems from an investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, Stamford Police Department, Norwalk Police Department and Connecticut State Police into a drug trafficking organization led by Wilfredo Gutierrez, also known as “Bean” and “Big Pun,” and his brother, Bobby Gutierrez, also known as “B.O.”  The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that Wilfredo Gutierrez, Bobby Gutierrez and others conspired to distribute at least 10 kilograms of heroin in Fairfield County between September 2015 and May 2016.  TORRES was the Gutierrez brothers’ main source of heroin for several years.

TORRES was arrested on May 31, 2016.  On July 5, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute one kilogram or more of heroin, and admitted that he was involved in the distribution of more than 30 kilograms of heroin.

After TORRES pleaded guilty and while he was released on bond pending sentencing, an investigation revealed that he had purchased U-47700, a synthetic opioid also known as “Pink,” over the dark web.  On March 7, 2017, TORRES was arrested by the DEA in New York.  A search of his person and vehicle revealed approximately 60 grams of U-47700, approximately 100 grams of heroin, and $8,600 in cash.

TORRES has been detained since his arrest on March 7, 2017.

Nine individuals were charged as a result of the investigation.  All pleaded guilty, and TORRES is the last to be sentenced.

On March 16, 2017, Wilfredo Gutierrez was sentenced to 180 months of imprisonment and, on April 24, 2017, Bobby Gutierrez was sentenced to 160 months of imprisonment.  Bobby Gutierrez also was ordered to forfeit $171,462 in cash.

On April 13, 2018, TORRES pleaded guilty in the Southern District of New York to one count of conspiracy to possess with intent to distribute 100 grams or more of heroin.  He awaits sentencing in that case.

The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk, Milford and Trumbull Police Departments, and the Connecticut State Police.

This case was prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Heather Cherry.

John H. Durham, United States Attorney for the District of Connecticut, today announced that on September 12, 2018, a federal grand jury in New Haven returned an indictment charging LEONID POLLAK, also known as “Lenny,” 58, of Greenwich, with federal offenses related to an investment fraud scheme.

POLLAK was arrested this morning.  He appeared this afternoon before U.S. Magistrate Judge Robert M. Spector in New Haven and was ordered detained.

As alleged in the indictment, POLLAK owned a Norwalk-based company that organized trade shows and expositions throughout the U.S.  In mid-2013, POLLAK induced an acquaintance to invest $290,000 in a new business venture that was supposed to organize similar expositions in Ukraine.  Instead of using the money to build the new business, POLLAK spent nearly all of it on unrelated business and personal expenses, including POLLAK’s home mortgage loan, groceries and clothing, automobiles, and private school tuition.

The indictment charges POLLAK with six counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count, and two counts of illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years on each count.

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

This matter is being investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, and U.S. Secret Service, with assistance from the Greenwich Police Department.  The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.

John H. Durham, United States Attorney for the District of Connecticut, announced that LUIS PADILLA, also known as “Chewie,” 25, of New Haven, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 216 months of imprisonment, followed by five years of supervised release, for his role in a violent New Haven street gang.

According to court documents and statements made in court, in January 2014, ATF and the New Haven Police Department began “Operation Red Side” through a series of controlled narcotics purchases and firearms seizures.  The investigation revealed that members and associates of the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang based in New Haven, were engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies.  In addition to distributing crack cocaine and other narcotics in and around New Haven, the investigation indicated that members and associates of the RSGB, under the direction of Jeffrey Benton and others, transported the drugs to Bangor, Maine, and sold them in Bangor and its surrounding communities.  The RSGB also traded narcotics for firearms, brought the firearms back to New Haven and distributed them to gang members.

PADILLA was an RSGB enforcer who committed shootings and robberies on behalf of the gang.  He also traveled to Maine several times at Benton’s direction to watch over the gang’s drug trafficking operation.

PADILLA has been detained since August 18, 2014.  On that date, a search of his residence revealed a loaded .45 caliber handgun and a box of .45 caliber auto ammunition.

PADILLA subsequently began assisting the government in the prosecution of this matter.

On September 29, 2015, PADILLA pleaded guilty to one count of engaging in a pattern of racketeering activity, one count of murder in aid of racketeering, and one count of possession of a firearm by a previously convicted felon.

In pleading guilty, PADILLA admitted his involvement in the gang-related murders of Derrick Suggs on March 18, 2011; Kevin Lee on April 20, 2011, and Donell Allick on June 24, 2011.  He also admitted that he shot and wounded individuals in New Haven on February 23 and March 29, 2011, and that he participated in a home invasion robbery on Putnam Street in New Haven on May 30, 2012.  He further admitted his role in the trafficking of narcotics in Connecticut and Maine, and that, as a convicted felon, he illegally possessed a firearm and ammunition on August 18, 2014.

On March 16, 2017, PADILLA pleaded guilty to the additional offenses of attempted Hobbs Act robbery, and carrying and using a firearm during and in relation to a crime of violence.  In pleading guilty, PADILLA admitted that, on March 14, 2009, when he was 16 years old and prior to his membership in RSGB, he shot and killed Thomas Daniels, Jr., during a failed robbery attempt in New Haven.

As a result of this investigation, 21 members and associates of the RSGB were convicted of federal charges in Connecticut and Maine.  The investigation has resolved seven murder cases, four attempted murders and four armed robberies that occurred in 2011 and 2012, and the 2009 murder of Thomas Daniels, Jr.  PADILLA is the last defendant to be sentenced.

Benton pleaded guilty to various offenses stemming from this investigation and admitted that he participated in four gang-related murders and one attempted murder.  On October 4, 2017, he was sentenced to 40 years of imprisonment.

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

This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department.  The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.

An instrumental component of the investigation was the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.

This matter was prosecuted in the District of Connecticut by Assistant U.S. Attorneys Peter Markle and Jocelyn Kaoutzanis.  A related case in the District of Maine was prosecuted by Assistant U.S. Attorney Joel Casey.

John H. Durham, United States Attorney for the District of Connecticut, announced that ALEX ORTIZ-GOMEZ, 35, a citizen of Colombia last residing in Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 78 months of imprisonment for trafficking heroin.

According to court documents and statements made in court, the Drug Enforcement Administration Hartford Task Force identified ORTIZ-GOMEZ as the head of a drug trafficking organization that was distributing large quantities of heroin in the Hartford area.  The investigation, which included court-authorized wiretaps, revealed that members of the organization used an apartment on Wayland Street in Hartford to store heroin, cocaine, drug packaging materials and cash, and to process and package narcotics for street sale.

On May 13, 2015, ORTIZ-GOMEZ traveled from Hartford to New York City where law enforcement officers conducted a motor vehicle stop of the car and seized approximately $125,000 in cash.

ORTIZ-GOMEZ and several co-conspirators were arrested on June 4, 2015.  On that date, a search of the Wayland Street apartment revealed a bag of cocaine, approximately 400 bags of heroin, a heroin stamp, six boxes containing hundreds of stamped bags for packaging heroin, and other items used to process and package heroin for street sale.  A related search of co-conspirator’s residence in East Hartford revealed 500 grams of heroin, thousands of bags used to package heroin, a heroin brand stamp and other items.

ORTIZ-GOMEZ has been detained since his arrest.  On February 5, 2018, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.

ORTIZ-GOMEZ, who came to the U.S. from Colombia as a child, faces immigration proceedings when he completes his prison term.

Six other individuals were charged and convicted as a result of this investigation.

This matter was investigated by the Drug Enforcement Administration’s Hartford Task Force with the assistance of the Connecticut State Police.  The DEA Task Force includes participants from the Bristol, East Hartford, Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Willimantic and Windsor Locks Police Departments, and the Food and Drug Administration.  The case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.

John H. Durham, United States Attorney for the District of Connecticut, announced that IMRAN KHAN, 44, of North Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to three years of probation, the first six months of which KHAN must serve in home confinement, for violating U.S. export law.  Judge Underhill also ordered KHAN to perform 100 hours of community service and pay a $3,000 fine.

According to court documents and statements made in court, from at least 2012 to December 2016, KHAN and two of his family members engaged in a scheme to purchase goods that were controlled under the Export Administration Regulations (“EAR”) and to export those goods without a license to Pakistan, in violation of the EAR.  Through companies conducting business as Brush Locker Tools, Kauser Enterprises-USA and Kauser Enterprises-Pakistan, the three defendants received orders from a Pakistani company that procured materials and equipment for the Pakistani military, requesting them to procure specific products that were subject to the EAR.  When U.S. manufacturers asked about the end-user for a product, the defendants either informed the manufacturer that the product would remain in the U.S. or completed an end-user certification indicating that the product would not be exported.

After the products were purchased, they were shipped by the manufacturer to the defendants in Connecticut.  The products were then shipped to Pakistan on behalf of either the Pakistan Atomic Energy Commission (“PAEC”), the Pakistan Space & Upper Atmosphere Research Commission (“SUPARCO”), or the National Institute of Lasers & Optronics (“NILOP”), all of which were listed on the U.S. Department of Commerce Entity List.  The defendants never obtained a license to export any item to the designated entities even though they knew that a license was required prior to export.  The defendants received the proceeds for the sale of export-controlled items through wire transactions to a U.S. bank account that the defendants controlled.

On June 1, 2017, KHAN pleaded guilty to one count of violating the International Emergency Economic Powers Act.  In pleading guilty, he specifically admitted that, between August 2012 and January 2013, he procured, received and exported to PAEC an Alpha Duo Spectrometer without a license to do so.

On March 5, 2018, KHAN’s father, Muhammad Ismail, and his brother, Kamran Khan, each pleaded guilty to one count of international money laundering, for causing funds to be transferred from Pakistan to the U.S. in connection with the export control violations.  In pleading guilty, Ismail and Kamran Khan specifically admitted that, between January and July 2013, they procured, received and exported to SUPARCO, without a license to do so, certain bagging film that is used for advanced composite fabrication and other high temperature applications where dimensional stability, adherence to sealant tapes and uniform film gage are essential.  The proceeds for the sale of the bagging film was wired from Pakistan to the defendants in the U.S.

On July 18, 2018, Judge Underhill sentenced both Muhammad Ismail and Kamran Kahn to 18 months of imprisonment.  Ismail and Kamran Khan are both citizens of Pakistan and lawful permanent residents of the U.S.

This matter was investigated by the Defense Criminal Investigative Service, Federal Bureau of Investigation, Homeland Security Investigations, U.S. Postal Inspection Service and the U.S. Department of Commerce’s Office of Export Enforcement.  The case was prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss in coordination with Trial Attorney Scott McCulloch of the Justice Department’s Counterintelligence and Export Control Section (CES).

John H. Durham, United States Attorney for the District of Connecticut, today announced that JUAN HAZARD, also known as “Money,” 42, of Cranston, Rhode Island, pleaded guilty yesterday in New Haven federal court to a fentanyl trafficking offense.

According to court documents and statements made in court, in April 2017, HAZARD agreed to meet an individual at a location in Ledyard to conduct a narcotics transaction.  On April 26, 2017, investigators stopped HAZARD’s vehicle in Ledyard.  HAZARD was arrested after investigators located a wooden box containing three shrink-wrapped packages containing a total of approximately 338 grams of fentanyl in the rear of the vehicle.  HAZARD’s young child was in the back seat of the car at the time of the offense. 

HAZARD pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.  He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on December 10, 2018.

HAZARD has been detained since his federal arrest on May 4, 2018.

This investigation has been conducted by the FBI and the Ledyard, Town of Groton and Waterford Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.

John H. Durham, United States Attorney for the District of Connecticut, announced that a federal jury in Bridgeport today found THOMAS J. CONNERTON, 66, of Stamford, guilty of numerous offenses stemming from an investment scheme that defrauded individuals, including several women he met on a dating website, of more than $2 million.

The trial before U.S. District Judge Stefan R. Underhill began on August 28.

According to the evidence presented during the trial, CONNERTON was the founder, president, and CEO of Safety Technologies, LLC (“Safety Tech”), a Connecticut company that had its principal place of business at various times in Simsbury, Madison, Westport and Stamford.  Safety Tech was founded in 2006, purportedly for the purpose of developing and commercializing what was represented to be a highly durable puncture and cut resistant material that was to be used in the surgical glove market and other related markets.  Safety Tech has not yet obtained any patents from the U.S. Patent and Trademark Office, and CONNERTON did not register Safety Tech’s securities with the U.S. Securities and Exchange Commission (“SEC”).

Beginning in approximately June 2009, CONNERTON induced victim-investors to provide him funds and to purchase Safety Tech securities by falsely representing that the valuation of Safety Tech was realistically in the tens or hundreds of millions of dollars, that a lucrative deal to sell or license his glove technology was imminent, and that he would use their funds for research and development, product testing, and to bring the product to market.  CONNERTON offered his investors small amounts of equity in Safety Tech through “Subscription Agreements” or investments contracts through which he sold what he described as “Units.”

Several of the victim-investors were women who were drawn into the scheme after CONNERTON met them on a popular dating website.

CONNERTON made numerous other false representations to victim-investors, including stating in September 2015, “I will go on the record to state that there is not a single investor that will lose one dollar invested in Safety Technologies.”

Even though CONNERTON represented to victim-investors and potential victim-investors that the funds they invested would be used to fund research and development, for product testing, for business expenses and for legal fees, he used invested funds to pay personal expenses including, on two separate occasions, to purchase two diamond engagement rings from Tiffany & Co.  CONNERTON also used funds to repay loans to an earlier investor.

Through this scheme, CONNERTON defrauded more than 50 victim-investors of more than $2.2 million.

The investigation also revealed that CONNERTON engaged in monetary transactions in an attempt to conceal from the FBI and the SEC the nature and source of funds received by Safety Tech from the sale of Safety Tech securities.  CONNERTON negotiated checks and purchased bank checks in order to move the fraudulent proceeds from one account to another.

The investigation further revealed that CONNERTON willfully failed to pay $293,033 in federal income taxes between 2003 and 2015.

The jury found CONNERTON guilty of 12 counts of wire fraud, one count of mail fraud and 16 counts of securities fraud, offenses that carry a maximum term of imprisonment of 20 years on each count.  CONNERTON also was found guilty of four counts of money laundering, an offense that carries a maximum term of imprisonment of 10 years on each count, and one count of tax evasion, an offense that carries a maximum term of imprisonment of five years.

The government is seeking full restitution for the victim-investors and forfeiture of the two engagement rings that CONNERTON purchased with proceeds of the fraud scheme.  CONNERTON also owes more than $490,000 in back taxes, interest and penalties.

A sentencing date is not scheduled.

CONNERTON has been detained since his arrest on March 9, 2017.

This matter is being investigated by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division.

U.S. Attorney Durham also acknowledged the important assistance of the Securities and Exchange Commission.

The case is being prosecuted by Assistant U.S. Attorneys Michael S. McGarry and Lauren C. Clark.

John Durham, United States Attorney for the District of Connecticut, today announced that, on September 14, 2018, MILTON WESTLEY, also known as “Reese,” 20, of New Haven, pleaded guilty before U.S. District Judge Michael P. Shea in Hartford to a federal racketeering charge stemming from his role in a New Haven street gang.

According to statements made in court, the New Haven Police Department’s Shooting Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) have been investigating approximately 40 unsolved shootings in New Haven and Hamden.  Ballistic examination of recovered cartridge cases determined that three firearms were used in 18 shootings committed in or around New Haven in 2016.  The investigation has revealed that the firearms were possessed by members and associates of the Goodrich Street Boys (“GSB”), a New Haven street gang, and that GSB members also were involved in a number of other shootings in 2016, many of them retaliatory against rival gang members.

In pleading guilty, WESTLEY admitted that he was a member of GSB, that he sold drugs with other GSB members, and that he was involved in two gang-related shooting incidents.

The first shooting incident occurred after GSB members believed that an individual had disrespected them over social media and GSB members sought to retaliate.  In the early morning hours of January 23, 2016, GSB members fired multiple shots into the individual’s house in New Haven.  WESTLEY video recorded himself at the scene while shots were being fired and sent the video to other GSB members.

In the early morning hours of May 27, 2016, in the area of Sperry Street and Whalley Avenue in New Haven, WESTLEY shot an individual from afar, and then, while the victim was on the ground, shot him in the head at close range.  The victim survived the shooting.

On August 3, 2017, a grand jury in New Haven returned a 13-count indictment charging WESTLEY and five other individuals with racketeering, attempted murder, firearm and narcotics trafficking offenses.  The indictment alleges that, between September 2015 and May 2016, GSB members and associates were involved in six gang-related shootings that caused injuries to five individuals. 

WESTLEY pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity, an offense that carries a maximum term of imprisonment of 20 years.  A sentencing date is not scheduled.

WESTLEY had been detained since his arrest on August 9, 2017.

U.S. Attorney Durham noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity.  PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.  Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities.  Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.

This investigation is being conducted by ATF and the New Haven Police Department.  The FBI, Hamden Police Department and New Haven State’s Attorney’s Office have provided critical assistance in the investigation.

An instrumental component of this investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.

This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis, Peter D. Markle and Rahul Kale.

John H. Durham, United States Attorney for the District of Connecticut, today announced that ADRIAN BELLE, also known as “A.B.,” 24, of New Haven, pleaded guilty today in Bridgeport federal court to one count of possession of a firearm by a convicted felon.

According to court documents and statements made in court, on March 18, 2018, BELLE was the passenger in a vehicle stopped by New Haven Police officers.  When the officers asked BELLE to step out of the vehicle, he reached into the center console, exited the vehicle and then began to flee on foot.  Officers observed BELLE throw an object during the pursuit.

Once BELLE was stopped and secured in handcuffs, officers located a Smith and Wesson .380 Caliber firearm with an obliterated serial number in BELLE’s front right jacket pocket.  Officers also retrieved a loaded firearm magazine that BELLE had thrown while running.

BELLE’s criminal history includes a conviction in October 2014 for robbery in the first degree, and, in August 2011, convictions on three counts of assault on personnel.

The charge of possession of a firearm by a convicted felon carries a maximum term of imprisonment of 10 years.  A sentencing date is not scheduled.

BELLE has been detained since his arrest.

This matter is being investigated by the Bureau of Alcohol, Firearms, Tobacco and Explosives, and the New Haven Police Department.  This case is being prosecuted by Assistant U.S. Attorneys Peter D. Markle and Jocelyn Courtney Kaoutzanis.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.

John H. Durham, United States Attorney for the District of Connecticut, announced that Dr. RAMIL MANSOUROV, 49, of Darien, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to health care fraud and money laundering offenses.

According to court documents and statements made in court, MANSOUROV is a physician who operated out of Family Health Urgent Care, located at 235 Main Street in Norwalk.  The medical practice was formerly known as Immediate Health Care, which was owned by Dr. Bharat Patel.  In approximately 2012, MANSOUROV purchased the practice from Patel and renamed it Family Urgent Health Care, and Patel continued to work at the practice. 

Between 2014 and November 2016, MANSOUROV billed Medicaid approximately $4,994,027 for home, office and nursing home visits that never occurred.  MANSOUROV transferred some of the stolen funds to a bank account in Switzerland and then moved more than $1.3 million from the Swiss bank account to at least three of his own domestic bank accounts.  The investigation revealed that MANSOUROV used the stolen funds for both personal and business purposes.

Judge Arterton scheduled sentencing for December 5, 2018, at which time MANSOUROV faces a maximum term of imprisonment of 30 years, a fine of up to approximately $10 million, and an order of restitution.  MANSOUROV also has agreed to forfeit $50,000, and surrender his federal controlled substances registration to the Drug Enforcement Administration.

MANSOUROV has been detained since July 13, 2017, when he was apprehended after fleeing to Canada.

On June 25, 2018, Patel pleaded guilty to narcotics distribution and health care fraud offenses.  Patel admitted that he wrote hundreds of medically unnecessary prescriptions for oxycodone and hydrocodone, and received $158,523.95 from federal health programs as a result of this and related criminal conduct.  Patel has been detained since his arrest on July 12, 2017.

This investigation has been conducted by the DEA’s New Haven Tactical Diversion Squad and the Norwalk Police Department, with the critical assistance of the Connecticut Office of the Attorney General.  The DEA Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments.

The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.

John H. Durham, United States Attorney for the District of Connecticut, today announced that ANTHONY HUNT, 19, of Winsted, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court to one count of possession with intent to distribute, and distribution of, heroin.

This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.

According to court documents and statements made in court, on June 2, 2017, at approximately 5:41 p.m., members of the Connecticut State Police responded to a family-owned boat in Washington, Connecticut, on the report of a 17-year-old male in cardiac arrest.  Attempts to revive the victim were not successful and he was pronounced deceased.  Law enforcement officers seized various drug and non-drug evidence from the boat, including suspected heroin, miscellaneous pharmaceutical pills and an iPhone.

The State of Connecticut Medical Examiner determined that the victim died from toxicity associated with a number of controlled substances, including heroin and alprazolam (Xanax).

The investigation, which has included witness interviews and analysis of the seized iPhone, revealed that HUNT sold heroin and Xanax to the victim between May 17 and June 1, 2017, and that the victim traveled to Winsted to purchase drugs from HUNT the day before the victim died.

HUNT was arrested on a criminal complaint on March 22, 2018.

HUNT is scheduled to be sentenced by U.S. District Judge Vanessa L Bryant on December 12, 2018, at which time HUNT faces a maximum term of imprisonment of 20 years.  He is released on a $50,000 bond pending sentencing.

This matter is being investigated by the Drug Enforcement Administration New Haven Task Force and the Connecticut State Police.   The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.

John H. Durham, United States Attorney for the District of Connecticut, and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, today announced that MARK ROHRER, 37, of West Hartford, waived his right to be indicted and pleaded guilty yesterday in New Haven federal court to one count of receipt of child pornography.

According to court documents and statements made in court, ROHRER had a user account on a dark web internet site that promoted child pornography.  Using Bitcoin, ROHRER downloaded images and videos of child pornography from the website in January 2016.

Images of child pornography were found on ROHRER’s home computers after a court-authorized search of his residence in April 2018.

ROHRER faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years when he is sentenced by U.S. District Judge Stefan R. Underhill in Bridgeport.  A sentencing date is not yet scheduled.

ROHRER is released on a $50,000 bond pending sentencing.

This matter is being investigated by Homeland Security Investigations with assistance of the West Hartford Police Department and Connecticut State Police.  The case is being prosecuted by Sarah P. Karwan.

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.

John H. Durham, United States Attorney for the District of Connecticut, announced that DANIEL ADEKUNLE OJO, 34, a citizen of Nigeria last residing in Durham, N.C., was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 32 months of imprisonment, followed by three years of supervised release, for his participation in a scheme to obtain the personal identifying information of school employees in Connecticut and elsewhere, and to file false tax returns in the names of those identity theft victims.

According to court documents and statements made in court, in February 2017, an employee of the Glastonbury Public Schools received an email that appeared to be sent by another Glastonbury school system employee.  The email contained a request to send W-2 tax information for all employees of the school system.  The recipient of the email responded by sending copies of the W-2 information for approximately 1,600 Glastonbury Public Schools employees.  After the W-2 information was emailed, approximately 122 suspicious Forms 1040 were filed electronically with the IRS in the names of victims of the Glastonbury phishing scheme.  The 122 tax returns claimed tax refunds totaling $596,897.  Approximately six of the returns were processed, and $36,926 in fraudulently-obtained funds were electronically deposited into various bank accounts.

OJO controlled or used an aol.com email account and a gmail.com email account involved in this phishing scheme.  A search of OJO’s gmail account revealed emails implicating him in the scheme.  One email contained six W-2 forms of employees of Glastonbury Public Schools, and the employees’ personal identifying information.

This ongoing investigation by special agents from the FBI’s cybercrime squad in New Haven and the IRS includes phishing incidents that victimized the Groton Public Schools, and the Bloomington Independent School District in Bloomington, Minnesota.

OJO has been detained since his arrest on August 3, 2017.  OJO had entered the U.S. on a visitor’s visa in May 23, 2016, and failed to depart on his scheduled departure date of June 8, 2016.

On June 21, 2018, OJO pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft.

Judge Meyer ordered OJO to pay $36,926 in restitution to the IRS.

This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, with the assistance of the Durham (N.C.) Police Department.  The case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.

John H. Durham, United States Attorney for the District of Connecticut, announced that HOMERO JOSHUA GARZA, 33, of Texas, formerly of Somers, Connecticut, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 21 months of imprisonment, followed by three years of supervised release, the first six months of which GARZA must spend in home confinement, for his role in his companies’ purported generation and sale of virtual currency. 

According to court documents and statements made in court, “virtual currency” is a digital representation of a value that can be traded and functions as a medium of exchange.  Virtual currency generally is not issued or guaranteed by any jurisdiction or government, and its value is decided by consensus within the community of users of the virtual currency.  A virtual currency generally self-generates units of currency through a process called “mining.”  A virtual currency “miner” is computer hardware that runs special computer software to solve complex algorithms that validate groups of transactions in that virtual currency.  Once a complex algorithm is solved, a unit of currency, such as a bitcoin, is awarded to the individual operating the miner.  This process is known as “mining.”

Between approximately May 2014 and January 2015, GARZA, through GAW, GAW Miners, ZenMiner, and ZenCloud, companies he founded and operated, defrauded victims out of money in connection with the procurement of virtual currency on their behalf.  The companies sold miners, access to miners, and the right to purchase a virtual currency called PayCoin, as well as “hashlets.”  A hashlet entitled an investor to a share of the profits that GAW Miners or ZenMiner would purportedly earn by mining virtual currencies using the computers that were maintained in their data centers.  In other words, hashlet customers, or investors, were buying the rights to profit from a slice of the computing power owned by GAW Miners and ZenMiner.

To generate business and attract customers and investors, GARZA made multiple false statements related to the scheme, including stating that GAW Miners’ parent company purchased a controlling stake in ZenMiner for $8 million and that ZenMiner became a division of GAW Miners.  In fact, there was no such transaction.  GARZA also stated that the hashlets GARZA’s companies sold engaged in the mining of virtual currency.  In fact, GARZA’s companies sold more hashlets than was supported by the computing power maintained in their data centers.  Stated differently, GARZA’s companies sold the customers the right to more virtual currency than the companies’ computing power could generate.  GARZA also stated that the market value of a single PayCoin would not fall below $20 per unit because GARZA’s companies had a reserve of $100 million that the companies would use to purchase Paycoins to drive up its price.  In fact, no such reserve existed.

During the scheme, GARZA, through his companies, used money his companies had made from new hashlet investors to pay older hashlet investors.  The payments were money that the companies owed the older investors based on the purported mining GAW Miners and ZenMiner had done on the investors’ behalf.

Through this scheme, GARZA defrauded hundreds of individuals around the world of a total of $9,182,000.  Judge Chatigny ordered GARZA to pay restitution in that amount.

On July 20, 2017, GARZA pleaded guilty to one count of wire fraud.

GARZA, who is released on bond, was ordered to report to prison on January 4, 2019.

This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Jonathan Francis.

John H. Durham, United States Attorney for the District of Connecticut, announced that GISEL DE LA CRUZ, 44, of East Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 72 months of imprisonment, followed by four years of supervised release, for heroin trafficking and immigration offenses.

According to court documents and statements made in court, in October 2016, the Drug Enforcement Administration’s Hartford Task Force began an investigation of an organization that was trafficking large quantities of heroin, fentanyl and other narcotics in Connecticut and western Massachusetts.  The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that members of the organization were receiving bulk quantities of heroin and fentanyl from out-of-state suppliers.  They then stored, processed and packaged the heroin/fentanyl in multiple locations, including apartments located at 280 Collins Street in Hartford where some members of the organization also resided, and then distributed the drug in the Hartford area, and also the Springfield and Holyoke, Massachusetts area.  A significant amount of drug trafficking activity occurred at the Neighborhood Supermarket, located at 316 Farmington Avenue in Hartford, which was owned and operated by DE LA CRUZ.

Investigators made multiple controlled purchases of heroin and fentanyl from DE LA CRUZ and other members of the drug trafficking organization in and around the Neighborhood Supermarket.

The investigation also revealed that DE LA CRUZ’s boyfriend, who lived with DE LA CRUZ, helped her run the store and assisted in the drug trafficking operation, was a citizen of the Dominican Republic who had previously been deported after a conviction for a federal narcotics offense.  DE LA CRUZ paid $20,000 to smuggle her boyfriend back into the U.S. and, in December 2016, her boyfriend illegally reentered the country using fake Venezuelan identification documents.

During the investigation, law enforcement executed 12 search warrants in Connecticut and Massachusetts and seized approximately 10 kilograms of heroin and fentanyl, much of which was packaged for resale in hundreds of thousands of bags.  Investigators also seized numerous vials of Xylazine, which is a horse tranquilizer used by narcotics traffickers as a heroin additive. Seven firearms also were seized.

DE LA CRUZ has been detained since her arrest on June 29, 2017.  On May 23, 2018, she pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin, and one count of encouraging and inducing an alien to illegally come to, enter and reside in the U.S.

Fourteen individuals have been charged with various narcotics, firearms and immigration offenses as a result of this investigation.

The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.  Agencies assisting the investigation include the Federal Bureau of Investigation, U.S. Postal Inspection Service, U.S. Marshals Service and Connecticut State Police.

This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.

Peter Yuryevich Levashov, aka “Petr Levashov,” “Peter Severa,” “Petr Severa” and “Sergey Astakhov,” 38, of St. Petersburg, Russia, pleaded guilty today in U.S. District Court in Hartford, Connecticut, to offenses stemming from his operation of the Kelihos botnet, which he used to facilitate malicious activities including harvesting login credentials, distributing bulk spam e-mails, and installing ransomware and other malicious software.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Special Agent in Charge Brian C. Turner of the FBI’s New Haven Division made the announcement.

“For over two decades, Peter Levashov operated botnets which enabled him to harvest personal information from infected computers, disseminate spam, and distribute malware used to facilitate multiple scams,” said Assistant Attorney General Benczkowski. “We are grateful to Spanish authorities for his previous arrest and extradition.  Today’s guilty plea demonstrates that the Department will collaborate with our international law enforcement partners to bring cybercriminals to justice, wherever they may be.”

“Mr. Levashov used the Kelihos botnet to distribute thousands of spam e-mails, harvest login credentials, and install malicious software on computers around the world,” said U.S. Attorney Durham.  “He also participated in online forums on which stolen identities, credit card information and cybercrime tools were traded and sold.  For years, Mr. Levashov lived quite comfortably while his criminal behavior disrupted the lives of thousands of computer users.  Thanks to the collaborative work of the FBI and our partners in law enforcement, private industry and academia, a prolific cybercriminal has been neutralized, and has now admitted his guilt in a U.S. courtroom.”

“Today justice has finally arrived for Peter Levashov, who is perhaps better known in the cyber community by his online identity, Peter Severa,” said FBI Special Agent in Charge Turner.  “The FBI’s New Haven Division has been engaged in a multiyear investigation of Levashov, with evidence gathered from a number of countries around the world.   Today’s guilty plea should serve as an unequivocal reminder to all those who use the internet for illicit purposes:  The FBI will pursue you regardless of what country you live in and the length of time it might take to secure your eventual arrest.  As we move forward, no cyber criminal should rest easy.  The men and women of the FBI’s New Haven Division, along with the members of our Cyber Task Force and our many other federal, state, local, and tribal partners across the state, will continue to employ the same dedication and hard work, which made this effort such a success, to the continued protection of the citizens of Connecticut and the nation as a whole.”

According to court documents and statements made in court, a botnet is a network of computers infected with malicious software that allows a third party to control the entire computer network without the knowledge or consent of the computer owners.  Since the late 1990s until his arrest in April 2017, Levashov controlled and operated multiple botnets, including the Storm, Waledac and Kelihos botnets, to harvest personal information and means of identification (including email addresses, usernames and logins, and passwords) from infected computers.  To further the scheme, Levashov disseminated spam and distributed other malware, such as banking Trojans and ransomware, and advertised the Kelihos botnet spam and malware services to others for purchase in order to enrich himself.  Over the course of his criminal career, Levashov participated in and moderated various online criminal forums on which stolen identities and credit cards, malware and other criminal tools of cybercrime were traded and sold.

Spanish authorities arrested Levashov in Barcelona on April 7, 2017, based upon a criminal complaint and arrest warrant issued in the District of Connecticut.  At the time of Levashov’s arrest, Kelihos infected at least 50,000 computers.

On April 10, 2017, the Justice Department announced that it had taken action to dismantle the Kelihos botnet.

On April 20, 2017, a grand jury in the District of Connecticut returned an indictment charging Levashov with multiple offenses related to this scheme.  Levashov was extradited to the United States in February.

Levashov pleaded guilty before U.S. District Judge Robert N. Chatigny to one count of causing intentional damage to a protected computer, one count of conspiracy, one count of wire fraud and one count of aggravated identity theft.

Judge Chatigny scheduled sentencing for Sept. 6, 2019.  Levashov is detained pending sentencing.

The FBI’s New Haven Division and Anchorage Division are investigating the case, with the assistance from the Spanish National Police.  Assistant U.S. Attorneys Vanessa Richards and David Huang of the District of Connecticut and Senior Trial Attorney Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.  The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service.  The University of Alabama at Birmingham, ThreatStop, SpamHaus, Cisco, Cambridge University, and Cloudmark also provided invaluable assistance in the investigation and prosecution of Mr. Levashov.

John H. Durham, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an indictment today charging MIGUEL TORRES, 38, of Waterbury, with various offenses related to his alleged trafficking of crack cocaine.

As alleged in court documents, law enforcement conducted a series of controlled purchases of crack cocaine from TORRES between February and May 2018.

TORRES was arrested on a federal criminal complaint on May 8, 2018.  On that date, a court-authorized search of his residence revealed approximately 51 grams of crack cocaine and other controlled substances.

The indictment charges TORRES with one count of possession with the intent to distribute 28 grams or more of crack cocaine, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.  TORRES also is charged with five counts of possession with intent to distribute, and distribution, of crack cocaine, an offense that carries a maximum term of imprisonment of 20 years on each count.

TORRES has been detained since his arrest.

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

This matter is being investigated by the Drug Enforcement Administration New Haven Task Force, with the assistance of the Naugatuck Police Department.  The Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby and Middletown Police Departments, the U.S. Marshals Service and the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.

John H. Durham, United States Attorney for the District of Connecticut, announced that STEPHEN CARBONELLA, 59, of Hamden, pleaded guilty today in Hartford federal court to embezzling funds from his employer, Webster Bank Corporation, where he served as bank manager of the Orange branch office. 

According to court documents and statements made in court, between approximately 2003 and 2017, CARBONELLA withdrew $879,016.48 from approximately 20 account holders’ certificate of deposit (CD) accounts at Webster Bank, without the knowledge or consent of the account holders, and used the embezzled funds for his own purposes.  He also took steps to conceal his misconduct, including by forging signatures and falsifying documents.

CARBONELLA pleaded guilty to one count of embezzlement by a bank officer or employee, an offense that carries a maximum term of imprisonment of 30 years.  He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on December 4, 2018.

CARBONELLA has been released on a $200,000 bond since his arrest on July 3, 2018.

This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.

John H. Durham, United States Attorney for the District of Connecticut, announced that DAQUAN PATTERSON-GREENE, 22, of Hartford, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to drug and firearm charges.

According to court documents and statements made in court, on September 7, 2017, PATTERSON-GREENE led Hartford Police officers on a foot chase in Hartford’s North End.  During the chase, PATTERSON-GREENE discarded a loaded Glock 22 .40 caliber semi-automatic pistol, a firearm magazine containing 15 rounds of .40 caliber ammunition, and an orange backpack.

Officers apprehended PATTERSON-GREENE on Vineland Terrace and recovered the discarded pistol, ammunition and backpack.  A search of PATTERSON-GREENE’s person revealed $252 in cash and small amount of marijuana.  A search of the backpack revealed approximately 13 ounces of marijuana, 13 zip lock bags containing marijuana, a knotted plastic bag containing several pieces of a substance that field-tested positive for the presence of MDMA (ecstasy), a digital scale, and a box of sandwich bags.

Subsequent analysis of the suspected MDMA identified it as N-Ethylpentylone, which is a controlled analogue of MDMA.

PATTERSON-GREENE’s criminal history includes felony convictions for first-degree assault and possession of a pistol without a permit.  In addition, he was on state probation at the time of his arrest.

PATTERSON-GREENE pleaded guilty to one count of possession of marijuana with the intent to distribute, an offense that carries a maximum term of imprisonment of five years, and one count of possession of a firearm in furtherance of a drug trafficking crime, an offense that carries a mandatory consecutive term of imprisonment of five years.

Under the terms of a binding plea agreement, if accepted by the court, the parties have agreed that a term of imprisonment of 96 months is an appropriate sentence in this case.

Judge Thompson scheduled sentencing for December 4, 2018.

PATTERSON-GREENE has been detained since his arrest on September 7, 2017.

This matter is being investigated by the Hartford Police Department and the FBI’s Northern Connecticut Violent Crimes Gang Task Force.  The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson and Special Assistant U.S. Attorney John F. Fahey of the Hartford State’s Attorney’s Office.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.

John H. Durham, United States Attorney for the District of Connecticut, announced that MANUEL ARTEAGA, also known as “Manny,” 42, of New London, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford 16 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm and ammunition.

According to court documents and statements made in court, in December 2016, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned that ARTEAGA was attempting to sell firearms.  On January 26, 2017, an individual working with law enforcement purchased a 9mm Kahr handgun, which was loaded with five rounds of ammunition, from ARTEAGA for $650.  In a related state narcotics investigation, members of the Connecticut Statewide Narcotics Task Force – East conducted three controlled purchases of cocaine from ARTEAGA between April and June 2017.

ARTEAGA’s criminal history includes state felony convictions in 2003, in both Connecticut and New York, for firearm and drug offenses.

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

On May 15, 2018, ARTEAGA pleaded guilty to one count of possession of a firearm by a previously convicted felon.

State narcotics charges against ARTEAGA are pending in New London Superior Court.

This matter was investigated by ATF and the Connecticut Statewide Narcotics Task Force – East.  The case was prosecuted by U.S. Attorney Durham.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.