District of Connecticut

John H. Durham, United States Attorney for the District of Connecticut, announced that BRYAN KELLY, 46, of East Haven, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of possession with intent to distribute anabolic steroids.

According to court documents and statements made in court, in December 2017, the Statewide Narcotics Task Force West conducted a court-authorized search of an individual’s residence in Hamden and seized approximately 25,000 pills and 530 vials of anabolic steroids. Subsequent analysis of the individual’s cell phone revealed numerous text messages relating to KELLY’s purchase and redistribution of steroids.  At the time of the search, KELLY was a police officer with the Hamden Police Department.

The investigation revealed that KELLY purchased steroids from his source of supply since approximately October 2016.  He personally used some of the steroids and distributed some to friends and colleagues.

The offense carries a maximum term of imprisonment of 10 years and a fine of up to $500,000.  A sentencing date is not scheduled.

KELLY is released on a promise to appear pending sentencing.  He has retired from the Hamden Police Department.

This matter is being investigated by the Connecticut State Police, Statewide Narcotics Task Force West, and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan with the assistance of the State’s Attorney for the New Haven Judicial District.

John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached settlement agreements with ProHealth Physicians, Inc. (“ProHealth”) and Udolf 631, LLC (“Udolf Properties”) to resolve allegations that a ProHealth office in West Hartford was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).

The settlement agreements resolve an ADA complaint filed by an individual with disabilities alleging that the ProHealth office, located at 631 Quaker Lane South in West Hartford, was not accessible to individuals with physical disabilities.  ProHealth leases the premises from Udolf Properties.

ProHealth and Udolf Properties are in the process of making the changes to the Quaker Lane office required by the settlement agreements, which include improving the accessibility of the facility’s entrances and access routes, increasing the number of accessible parking spaces and adding a van accessible parking space, adding accessible features to restrooms, reducing barriers for patients to access check-in and check-out areas, ensuring access to all patient areas of the facility, and adding an accessible exam table and method for ensuring access to diagnostic testing facilities for individuals with disabilities.  Udolf Properties will make improvements over the next six months and ProHealth will continue to make improvements over the next two years.

Under federal law, professional offices of health care providers and their landlords are considered “public accommodations” and are prohibited from discriminating on the basis of disability.  The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities.  The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.

U.S. Attorney Durham noted that the leadership of both ProHealth and Udolf Properties have worked cooperatively and collaboratively with the U.S. Attorney’s Office to expeditiously address the ADA issues without litigation and to make comprehensive changes to the Quaker Lane office facility to improve accessibility.

“The Americans with Disabilities Act ensures that individuals are able to access the offices of health care providers and other public accommodations,” said U.S. Attorney Durham.  “We appreciate the willingness of ProHealth and Udolf Properties to greatly increase the accessibility and usability of the Quaker Lane office for individuals with disabilities.”

Any member of the public who wishes to file a complaint alleging that the office of a health care provider or any other 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 Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.

This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.

John H. Durham, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, announced that a federal grand jury in New Haven returned an indictment today charging OLUKAYODE IBRAHIM LAWAL, 35, a citizen of Nigeria residing in Smyrna, Georgia, with fraud and identity theft offenses stemming from a scheme to obtain the personal identifying information of school employees in Connecticut and elsewhere.

On May 9, 2018, LAWAL was arrested on a federal criminal complaint at his residence.  He appeared before a U.S. magistrate judge in Atlanta and was ordered detained pending his transfer to the District of Connecticut.

As alleged in the charging documents, special agents from the FBI’s cybercrime squad in New Haven and the IRS have been investigating “phishing” emails that were sent to various school districts in Connecticut last year.  In March 2017, an employee of the Groton Public Schools received an email that appeared to be sent by another Groton 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 1,300 Groton Public Schools employees.  After the W-2 information was emailed, approximately 100 suspicious Forms 1040 were filed electronically with the IRS in the names of victims of the Groton phishing scheme.  The 100 tax returns claimed tax refunds totaling $491,737.  Approximately three of the returns were processed, and $23,543 in fraudulently-obtained funds were electronically deposited into various bank accounts.

It is alleged that LAWAL controlled or used certain email accounts involved in this phishing scheme, and that he participated in the scheme to obtain the Groton school system employees’ personal identifying information and use it for personal gain.

The indictment charges LAWAL with one count of conspiracy to commit wire fraud and one count of wire fraud, offenses that carry a maximum term of imprisonment of 20 years.  The indictment also charges LAWAL with one count of aggravated identity theft, an offense that carries a mandatory consecutive term of imprisonment of at least two years.

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

It is alleged that LAWAL entered the U.S. on a visitor’s visa on November 24, 2016, and failed to depart on his scheduled departure date of December 1, 2016.

This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and Stephen B. Reynolds.

U.S. Attorney Durham thanked the FBI and IRS in Atlanta, and the U.S. Attorney’s Office for the Northern District of Georgia, for their valuable assistance in this matter.

United States Attorney John H. Durham and Connecticut Attorney General George Jepsen today announced that COMMUNITY RENEWAL TEAM and its president, LENA RODRIGUEZ, have entered into a civil settlement agreement with the United States and the State of Connecticut and have paid $362,000 to resolve allegations that they violated the federal and state False Claims Acts.

Community Renewal Team (“CRT”) is a Hartford-based community action agency that receives both federal and state grant funding.  The majority of CRT’s funding has come from federal agencies including the U.S. Department of Health and Human Services (“HHS”), the U.S. Department of Housing and Urban Development (“HUD”) and the U.S. Department of Energy (“DOE”).  Federal funds are awarded to CRT directly and indirectly through various state agencies and, in some cases, federal funding is combined with state funding and allocated to CRT.  Rodriguez has been the president of CRT since January 2006.

The United States and State of Connecticut allege that, from June 2009 through November 2010, Rodriguez directed that certain CRT employees work on a state funded grant program, called “Home Solutions,” while charging their time to federal grants funded by HHS, HUD and DOE, as well as other state grants passed through the Connecticut Department of Social Services.  In addition, between October 2009 and September 2010, CRT improperly charged the time of a budget analyst to a Head Start grant when the employee was working on other unrelated programs.  Finally, between June 2010 and April 2013, a CRT program manager for the HHS-funded Eviction and Foreclosure Prevention Program misappropriated $18,500 for her personal use.

To resolve the governments’ allegations under the federal and state False Claims Acts, CRT and Rodriguez have paid $362,000.

“Recipients of federal grants must adhere to the regulations applicable to those grants and manage federal funds efficiently,” said U.S. Attorney Durham.  “Failure to do so can result in significant consequences.”

“We take very seriously our responsibility to safeguard taxpayers by eliminating fraud in our public programs,” said Attorney General Jepsen, “and I appreciate the continued partnership with Connecticut’s U.S. Attorney to protect public funds.”

This investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General; U.S. Department of Housing and Urban Development, Office of Inspector General, and U.S. Department of Energy, Office of Inspector General.

The matter was handled within the U.S. Attorney’s Office by Assistant U.S. Attorney Ndidi N. Moses and Auditor Susan N. Spiegel.  The Office of the Attorney General for the State of Connecticut was represented by Assistant Attorney General Christopher M. Haddad.

John H. Durham, United States Attorney for the District of Connecticut, today announced that CHRISTINE MILES, 59, of Windsor Locks, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to 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’ 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 was arrested on state charges at that time.

The investigation revealed that, through this drug trafficking conspiracy, MILES and her husband amassed more than $700,000 in a number of individual and jointly held bank accounts.  The investigation also revealed that, after her arrest on state drug charges in August 2016, MILES 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 was arrested on federal charges on November 16, 2017, and she has been detained since her arrest.  On February 2, 2018, another court-authorized search of her North Street residence revealed additional drug evidence and $41,904 in cash.

MILES pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, oxymorphone, hydrocodone and alprazolam, an offense that carries a maximum term of imprisonment of 20 years, 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, an offense that carries a maximum term of imprisonment of 10 years.

In pleading guilty, MILES agreed to forfeit her interest in her Windsor Locks residence and $767,056.74 seized from the residence and multiple bank accounts.

Judge Meyer scheduled sentencing for August 7, 2018.

This matter is being investigated by the Drug Enforcement Administration’s Tactical Diversion Squad 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, Manchester and Suffield 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, today announced that a federal grand jury sitting in New Haven has returned an indictment charging YEHUDI MANZANO, 33, of Waterbury, with production and transportation of child pornography.

As alleged in the indictment, on or about August 21, 2016, MANZANO sexually assaulted a 15-year-old female victim in Connecticut, video recorded the assault with his cell phone, and uploaded the video to his Google account.

The indictment was returned on May 3, 2018, and was unsealed yesterday when MANZANO surrendered to authorities.  MANZANO appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport yesterday afternoon and entered a plea of not guilty to the charges.  He was released on a $300,000 bond and electronic GPS monitoring.

On November 10, 2016, MANZANO was arrested on related state charges.

The charge of production of child pornography carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, and the charge of transportation of child pornography carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.

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 and the Waterbury Police Department.  The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.

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

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

In my 40-year career as a state and federal prosecutor, I have had the pleasure of working side by side with hundreds of federal, state and local law enforcement officers in the cause of justice.  As a group, they are the finest people anyone could hope to know and work with.  I have the greatest respect and admiration for these men and women, whose mission encompasses the most dangerous work undertaken in our communities.

A quote attributed to George Orwell reminds us of the debt we owe to members of law enforcement:  “We sleep safe in our beds because rough men stand ready in the night to visit violence on those who would do us harm.”

In 1962, President Kennedy signed a proclamation designating today, May 15, as Peace Officers Memorial Day, and the week surrounding this date as National Police Week, to honor federal, state and municipal officers who made the ultimate sacrifice in the line of duty.  So far this year, 53 brave men and women of law enforcement have lost their lives in service to the citizens of the United States.  That figure includes Connecticut State Police Trooper First Class Kevin M. Miller, who was tragically killed in a vehicle crash on I-84 in Tolland on March 29.

Please take a moment today to remember them, and their families and loved ones who live with their loss.

I also encourage all to take some time this year to visit the Connecticut Law Enforcement Memorial, located at the Connecticut Police Academy in Meriden.  The Memorial, which was dedicated in 1989, recognizes the sacrifice of 139 men and women of law enforcement who died in service to the people of Connecticut.  This year, three more names will be added to the memorial, including Trooper Miller.

While most of us are fortunate to be able to live our lives freely without fear for our physical safety, too many of us take for granted that, in times of trouble, the police will be there to protect us from harm.  For this, we owe a debt of gratitude to all officers, detectives, troopers and agents, who put themselves at risk every day for the safety of our communities, for our peace of mind, and for the security of our loved ones.  It has been, and continues to be, my great honor to be able to work with all of them.

John H. Durham, United States Attorney for the District of Connecticut, announced that ALEX BORRERO, also known as “Red,” 50, of New Haven, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of possession with intent to distribute, and distribution of, heroin and fentanyl.

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 February 28, 2017, the Wallingford Police Department and emergency medical personnel responded to a report of an untimely death of a 25-year-old male at a residence in Wallingford.  At the scene, officers seized drug and non-drug evidence, including the victim’s cellphone and six empty wax folds bags that contained a white powder residue.

The Connecticut Office of the Chief Medical Examiner determined that the victim’s death was caused by a combination of fentanyl and alprazolam (Xanax).

The investigation revealed that BORRERO, who had been selling heroin and fentanyl in the New Haven area, was the source of the fentanyl involved in the overdose death of the victim.  The investigation also revealed that another of BORRERO’s drug customers, a 31-year-old male, died of an overdose in Branford on May 18, 2017.

BORRERO was arrested on a federal criminal complaint on October 23, 2017.  At the time of his arrest, he possessed approximately 30 grams of heroin and approximately $1,900 in cash.

Judge Underhill scheduled sentencing for August 7, 2018, at which time BORRERO faces a maximum term of imprisonment of 30 years.  BORRERO is released on a $50,000 bond pending sentencing.

BORRERO’s criminal history includes multiple convictions, including a federal conviction for conspiracy to possess with intent to distribute heroin.  In 1998, he was sentenced in the U.S. District Court for the Middle District of Florida, in Orlando, to 188 months of imprisonment.  He was released from federal prison in 2011.

This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and the Wallingford and Branford Police Departments.

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

John H. Durham, United States Attorney for the District of Connecticut, announced that DIANE DALMY, 63, of Denver, Colorado, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for her role in a securities fraud scheme.

According to court documents and statements made in court, DALMY, an attorney, performed securities-related legal work on behalf of several public companies, including Mammoth Energy Group, Inc., a company that later became known as Strategic Asset Leasing Inc.; and Fox Petroleum, Inc. (the “Subject Companies”).  Between approximately January 2009 and July 2016, DALMY conspired with others, including William Lieberman, of Boca Raton, Florida, and Christian Meissenn, of Suffield, Connecticut, to defraud investors through a stock “pump and dump” scheme.  During the course of the conspiracy, DALMY acted largely at Lieberman’s direction.

As part of the scheme, Lieberman, Meissenn and others induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated.  The issuing companies, which were essentially shell companies with virtually no legitimate business activities, were controlled by Lieberman and others.  After the hype led to artificially-inflated share prices for the company’s stock, Lieberman, Meissenn and others sold their own large positions in the stock at a profit.  They then ended the promotion and allowed the share price to plummet, leaving investors holding worthless and unsalable stock.  As a result, victim investors lost millions of dollars.

DALMY participated in the conspiracy by writing, and permitting Lieberman to write in her name, fraudulent opinion letters that were used to unrestrict the co-conspirators’ stock so that the stock could be freely traded on the open market (without having to register the stock with the Securities and Exchange Commission).  The opinion letters were materially false in various respects, including as to whether the issuing company was a shell company, whether the shareholder was an affiliate of the issuer, whether the transactions described in the letters actually had occurred, and whether DALMY had performed the due diligence that she described in the letters.  DALMY also ghost-wrote similarly fraudulent opinion letters for the Subject Companies in another Colorado attorney’s name and permitted Lieberman to do so.  These included “adequacy” letters that were posted on a website maintained by an electronic securities marketplace.  In general, an “adequacy” letter, which is intended to be relied upon by investors in making investment decisions, accompanies a public filing by an issuer and states that, after appropriate investigation, it is the authoring attorney’s opinion that adequate current information about the issuer is publicly available for investors to review.

At times, DALMY provided the co-conspirators with capital by advancing money from her Lawyer Trust Account (“IOLTA”).  These funds belonged to other clients of DALMY’s law practice who did not know that their funds had been advanced to the co-conspirators by DALMY.

Finally, between February 2015 and July 2016, DALMY laundered a portion of the proceeds of the scheme on behalf of the co-conspirators.  DALMY helped Lieberman to incorporate and open bank accounts for a private company, Queen Asia Pacific Ltd. (“Queen Asia”), which was controlled by Lieberman.  These bank accounts were used to receive proceeds of the scheme from a brokerage account in Queen Asia’s name. DALMY periodically received money in Queen Asia’s bank accounts, transferred those funds to her IOLTA, and then transferred the funds again to Lieberman, Meissenn, and their network of stock promoters.  In total, DALMY laundered approximately $825,000 on behalf of the co-conspirators through Queen Asia’s bank accounts and her IOLTA.

DALMY’s total gain from her participation in this conspiracy, and related legal work for the Subject Companies, was approximately $30,000.

Judge Meyer ordered DALMY to pay $2 million in restitution.

On February 6, 2018, DALMY pleaded guilty to one count of conspiracy.

Lieberman, Meissenn and four other individuals also pleaded guilty to various offenses stemming from this scheme. 

On January 20, 2017, Corey Brinson, a Hartford-based attorney, was sentenced to 36 months of imprisonment and, on September 27, 2017, Damian Delgado, also known as “Michael Neumann,” of Orlando, Florida, was sentenced to 84 months of imprisonment.  On May 7, 2018, Brian Ferraioli, of Sayville, N.Y., and Thomas Heaphy, Jr., of East Moriches, N.Y., were each sentenced to 72 months of imprisonment for their roles in this scheme and an unrelated investment fraud scheme.  Meissenn and Lieberman await sentencing.

DALMY, who is released on a $100,000 bond, was ordered to report to prison on June 14, 2018.

This investigation is being conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments.  This case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.

Citizens with information that may be helpful to this ongoing investigation, or who believe they may have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311.

John H. Durham, United States Attorney for the District of Connecticut, announced that DIANE DALMY, 63, of Denver, Colorado, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for her role in a securities fraud scheme.

According to court documents and statements made in court, DALMY, an attorney, performed securities-related legal work on behalf of several public companies, including Mammoth Energy Group, Inc., a company that later became known as Strategic Asset Leasing Inc.; and Fox Petroleum, Inc. (the “Subject Companies”).  Between approximately January 2009 and July 2016, DALMY conspired with others, including William Lieberman, of Boca Raton, Florida, and Christian Meissenn, of Suffield, Connecticut, to defraud investors through a stock “pump and dump” scheme.  During the course of the conspiracy, DALMY acted largely at Lieberman’s direction.

As part of the scheme, Lieberman, Meissenn and others induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated.  The issuing companies, which were essentially shell companies with virtually no legitimate business activities, were controlled by Lieberman and others.  After the hype led to artificially-inflated share prices for the company’s stock, Lieberman, Meissenn and others sold their own large positions in the stock at a profit.  They then ended the promotion and allowed the share price to plummet, leaving investors holding worthless and unsalable stock.  As a result, victim investors lost millions of dollars.

DALMY participated in the conspiracy by writing, and permitting Lieberman to write in her name, fraudulent opinion letters that were used to unrestrict the co-conspirators’ stock so that the stock could be freely traded on the open market (without having to register the stock with the Securities and Exchange Commission).  The opinion letters were materially false in various respects, including as to whether the issuing company was a shell company, whether the shareholder was an affiliate of the issuer, whether the transactions described in the letters actually had occurred, and whether DALMY had performed the due diligence that she described in the letters.  DALMY also ghost-wrote similarly fraudulent opinion letters for the Subject Companies in another Colorado attorney’s name and permitted Lieberman to do so.  These included “adequacy” letters that were posted on a website maintained by an electronic securities marketplace.  In general, an “adequacy” letter, which is intended to be relied upon by investors in making investment decisions, accompanies a public filing by an issuer and states that, after appropriate investigation, it is the authoring attorney’s opinion that adequate current information about the issuer is publicly available for investors to review.

At times, DALMY provided the co-conspirators with capital by advancing money from her Lawyer Trust Account (“IOLTA”).  These funds belonged to other clients of DALMY’s law practice who did not know that their funds had been advanced to the co-conspirators by DALMY.

Finally, between February 2015 and July 2016, DALMY laundered a portion of the proceeds of the scheme on behalf of the co-conspirators.  DALMY helped Lieberman to incorporate and open bank accounts for a private company, Queen Asia Pacific Ltd. (“Queen Asia”), which was controlled by Lieberman.  These bank accounts were used to receive proceeds of the scheme from a brokerage account in Queen Asia’s name. DALMY periodically received money in Queen Asia’s bank accounts, transferred those funds to her IOLTA, and then transferred the funds again to Lieberman, Meissenn, and their network of stock promoters.  In total, DALMY laundered approximately $825,000 on behalf of the co-conspirators through Queen Asia’s bank accounts and her IOLTA.

DALMY’s total gain from her participation in this conspiracy, and related legal work for the Subject Companies, was approximately $30,000.

Judge Meyer ordered DALMY to pay $2 million in restitution.

On February 6, 2018, DALMY pleaded guilty to one count of conspiracy.

Lieberman, Meissenn and four other individuals also pleaded guilty to various offenses stemming from this scheme. 

On April 13, 2017, Corey Brinson, a Hartford-based attorney, was sentenced to 36 months of imprisonment and, on September 27, 2017, Damian Delgado, also known as “Michael Neumann,” of Orlando, Florida, was sentenced to 84 months of imprisonment.  On May 7, 2018, Brian Ferraioli, of Sayville, N.Y., and Thomas Heaphy, Jr., of East Moriches, N.Y., were each sentenced to 72 months of imprisonment for their roles in this scheme and an unrelated investment fraud scheme.  Meissenn and Lieberman await sentencing.

DALMY, who is released on a $100,000 bond, was ordered to report to prison on June 14, 2018.

This investigation is being conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments.  This case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.

Citizens with information that may be helpful to this ongoing investigation, or who believe they may have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311.

United States Attorney John H. Durham and Connecticut Attorney General George Jepsen today announced that DR. ERUM SHAHAB and WAIRE, LLC, doing business as ELLINGTON BEHAVIORAL HEALTH (“EBH”), have entered into a civil settlement agreement with the federal and state governments in which they will pay $805,071 to resolve allegations that they violated the federal and state False Claims Acts.

SHAHAB, a psychiatrist, is the owner of EBH, a psychiatric medical practice located in Ellington, Connecticut.  As part of SHAHAB and EBH’s treatment of patients with substance use disorders, SHAHAB and EBH regularly conducted urine drug screening tests on urine samples collected from patients treated at the practice.  Urine drug screening tests use a single sample of a patient’s urine to test for multiple classes of drugs.  Although the test screens a patient’s urine for multiple classes of drugs, Medicare considers it a single test that should be billed only once per patient encounter.

The government alleges that SHAHAB and EBH submitted claims to Medicare for multiple units of urine drug screening tests when they knew or should have known that only one unit of service could be billed per patient encounter.  By coding their claims using multiple units instead of a single unit, SHAHAB and EBH received hundreds of thousands of dollars from the Medicare program that they were not entitled to receive.

In addition, the government alleges that SHAHAB and EBH submitted claims to the Medicaid program for urine drug screening tests when the urine samples were either never actually tested at all or were tested weeks or months after the samples were collected from the Medicaid beneficiaries.

To resolve the governments’ allegations under the federal and state False Claims Acts, SHAHAB and EBH have agreed to pay $805,071, which covers claims submitted to the Medicare program from January 1, 2011 to September 30, 2013, and claims submitted to the Medicaid program from January 1, 2014 to June 30, 2014.

A complaint against SHAHAB and EBH was filed in the U.S. District Court in Connecticut under the qui tam, or whistleblower, provisions of the both the federal and state False Claims Acts.  The relator (whistleblower), Dr. David Simon, a former employee at EBH, will receive a share of the proceeds of the settlement in the amount of $99,113.

The whistleblower provisions of both the federal and state False Claims Acts provide that the whistleblower is entitled to receive a percentage of the proceeds of any judgment or settlement recovered by the government.

“Physicians and their medical practices must carefully code their claims, honestly bill for services, and ensure that taxpayers’ health care dollars are properly spent,” said U.S. Attorney Durham.  “The U.S. Attorney’s Office and our federal and state investigative partners will hold to account all health care providers who submit false claims to federal health care programs.”

This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; the U.S. Postal Service, Office of Inspector General, and the Defense Criminal Investigative Service.  The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot, and by Assistant Attorney General Gregory O’Connell of the Connecticut Office of the Attorney General.

People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.

PROVIDENCE, RI – A Dominican national who had previously been convicted in federal court in Boston in 1998 for trafficking cocaine, sentenced to 72 months in federal prison and ordered deported, pleaded guilty in U.S. District Court in Providence today to reentering the county illegally and conspiring to possess and distribute nearly 300 grams of fentanyl laced heroin.

Juan Manuel Bautista Arias’ drug trafficking activity in Hartford, Conn., was identified by the Rhode Island FBI Safe Streets Task Force during an investigation into a drug trafficking organization that regularly imported kilograms of heroin and cocaine from Mexico via the Southwest border of the United States directly into Rhode Island and Massachusetts.

The investigation, dubbed “Operation Triple Play,” in reference to three brothers who entered the country illegally and allegedly ran the drug trafficking operation, was dismantled by law enforcement in April 2017. The investigation resulted in the arrest of 16 individuals, at least 9 of which have been determined to have been in the United States illegally. Numerous kilograms of heroin, fentanyl and cocaine, substantial amounts of cash, and at least 9 vehicles were seized.

Appearing in U.S. District Court in Providence, R.I., Bautista admitted that shortly after he was released from a prison in Bani, Dominican Republic, on an unrelated criminal matter, he was illegally brought to the United States by the Rhode Island and Massachusetts based drug trafficking organization. The organization provided him with an apartment in Hartford, Conn., from which he ran a heroin and cocaine drug distribution operation, at their direction.

In April 2017, law enforcement a executed a court authorized search warrant at Bautista’s residence and seized nearly 287 grams of heroin laced with fentanyl, and $3,200 in cash. Bautista was found to be in possession of a fraudulent Puerto Rican birth certificate. Bautista’s fingerprints had been surgically altered.

Bautista, who pleaded guilty to conspiracy to possess and distribute 100 grams or more of heroin and illegal reentry, is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr. on July 26, 2018.

Bautista’s guilty plea is announced by United States Attorney Stephen G. Dambruch and Special Agent in Charge of the FBI Boston Field Division Harold H. Shaw.

The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.

United States Attorney Stephen G. Dambruch acknowledges and thanks the United States Attorney’s Office for the District of Connecticut for their assistance in the government’s case against Juan Manuel Bautista Arias.

Operation Triple Play is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation initiated by the FBI Safe Streets Task Force. Under the direction of the FBI, the participating agencies in this investigation include the Drug Enforcement Administration (Providence and Boston Resident Agencies); Immigration and Customs Enforcement; Rhode Island State Police; Providence Police Department; Woonsocket Police Department; Central Falls Police Department; Cranston Police Department; Warwick Police Department and; the Rhode Island Department of Corrections.

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John H. Durham, United States Attorney for the District of Connecticut, announced that STEPHEN MAZZO, 34, of Norwalk, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 41 months of imprisonment, followed by three years of supervised release, for trafficking cocaine and illegally possessing firearms.  Judge Bryant also ordered MAZZO to pay a $5,000 fine.

According to court documents and statements made in court, the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force received information that MAZZO was trafficking cocaine in the Stamford area.  On May 31, 2017, investigators conducting surveillance on MAZZO observed him exit a Norwalk hotel carrying a plastic shopping bag that he had not been carrying when he had entered the hotel.  Law enforcement stopped MAZZO’s vehicle a short time later on Route 15 south in Stamford.  A search of the vehicle and the plastic shopping bag revealed more than 400 grams of cocaine.  MAZZO was arrested on state charges at that time.

Investigators returned to the hotel and determined that MAZZO had met with Dominick Pacifico, who had been residing at the hotel for several weeks.  A search of Pacifico’s hotel room revealed items used to package drugs for distribution, and a search of Pacifico’s vehicle revealed approximately 959 grams of cocaine separated in multiple packages for distribution, and $34,525 in cash.

A search of MAZZO’s residence revealed a semi-automatic pistol, a multi-caliber rifle, a 12-gauge shotgun, and shotgun shells.  As a result of his previous state convictions for felony drug offenses, MAZZO is prohibited from possessing firearms and ammunition.

On February 15, 2018, MAZZO pleaded guilty to one count of possession with intent to distribute cocaine, and one count of possession of firearms and ammunition by a convicted felon.

MAZZO, who is released on a $200,000 bond, was ordered to report to prison on June 21.

On December 7, 2017, Pacifico pleaded guilty to one count of possession with intent to distribute, and distribution of, 500 grams or more of cocaine.  On March 9, 2018, he was sentenced to 60 months of imprisonment.

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

This case was prosecuted Assistant U.S. Attorney Joseph Vizcarrondo.

John H. Durham, United States Attorney for the District of Connecticut, today announced that a grand jury in Hartford has returned a four-count superseding indictment charging RAHEEN THOMPSON, 38, of Hartford, with firearm and drug offenses.

The superseding indictment was returned on April 18, 2018.  THOMPSON appeared yesterday before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and pleaded not guilty to the charges.

As alleged in the indictment and court documents, in the early morning of August 7, 2016, Hartford Police officers arrested THOMPSON after they encountered him in a parked car outside of a nightclub in possession of a loaded .380 caliber pistol and distribution quantities of marijuana and pentylone.

The indictment alleges that THOMPSON has been previously convicted in federal court of conspiracy to distribute and to possess with intent to distribute cocaine base (“crack”), and in state court of multiple felony 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.

The indictment charges THOMPSON with one count of possession with intent to distribute pentylone, an offense that carries a maximum term of imprisonment of 20 years; one count of possession with intent to distribute marijuana, an offense that carries a maximum term of imprisonment of five years; one count of possession of a firearm by a previously 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, an offense that carries mandatory consecutive sentence of at least five years of imprisonment.

THOMPSON has been detained since his arrest.

U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.

This investigation is being conducted by the Federal Bureau of Investigation’s Violent Crime Task Force and the Hartford Police Department.  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 PERRY DeSHAZO, also known as “Hov” and “Amafia Hov,” 27, of Bridgeport, was sentenced today by U.S. District Judge Jeffery A. Meyer in New Haven to 48 months of imprisonment, followed by three years of supervised release, for distributing heroin and fentanyl to an overdose victim in 2016.

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 December 2, 2016, at approximately 1:35 a.m., Bridgeport Police responded to St. Vincent’s Medical Center after a report of a suspicious death.  Hospital staff told officers that a 40-year old female had been dropped off at the hospital and was dead upon arrival. 

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 fentanyl, heroin and alcohol.”

The investigation, which included witness interviews and analysis of cell phone records and social media sites, revealed that DeSHAZO supplied the narcotics consumed by the victim shortly before her death.

DeSHAZO has been detained since his arrest on July 17, 2017.  On January 2, 2018, he pleaded guilty to one count of distribution of heroin and fentanyl.

DeSHAZO’s criminal history includes multiple convictions, and he was on state probation at the time of this offense.

This matter was investigated by the DEA New Haven Task Force and the Bridgeport Police Department.  The case was prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis and Peter Markle.

John H. Durham, United States Attorney for the District of Connecticut, Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, and Chief State’s Attorney Kevin T. Kane today announced that BEVERLY COKER, 70, of Windsor, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to five years of probation for defrauding Connecticut’s Medicaid program.

According to court documents and statements made in court, COKER owned and operated New Beginnings Family Center, a behavioral health practice with an office located in Hartford.  In May 2010, Ronnette Brown, of Bristol, and another individual approached COKER and proposed a collaboration with COKER’s practice.  Under the proposal, Brown and the other individual would provide services to children and families through We-MPACT, a social services practice they operated in Bristol.  COKER was to provide supervision to Brown and the other individual, for which COKER would be paid 30 percent of the proceeds. COKER knew that Brown and Sharpe were not licensed to provide psychotherapy, but understood that they were working toward becoming licensed. 

Although COKER never provided supervision to Brown and the other individual, she submitted claims to Medicaid for psychotherapy services provided to We-MPACT’s clients using her provider number.  Pursuant to their agreement, COKER paid Brown and others at We-MPACT approximately 70 percent of the amount of money she received from Medicaid.  Beginning in January 2011, Brown and the other individual began billing Medicaid directly using COKER’s provider number.  COKER ended her relationship with We-MPACT in November 2011.

Through this scheme, COKER and Brown defrauded Medicaid of approximately $214,555.

On April 8, 2016, COKER pleaded guilty to one count of health care fraud.

On May 26, 2017, a jury found Brown guilty of 23 counts of health care fraud and one count of conspiracy to commit health care fraud, stemming from this scheme and related fraudulent billing of Medicaid for psychotherapy services that were not performed.  On April 19, 2018, Judge Bolden sentenced Brown to 48 months of imprisonment and ordered her to pay restitution in the amount of $2,033,962.

Three other individuals have been charged and convicted of health care fraud offenses stemming from this investigation.

This matter has been jointly investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office, with assistance from the Connecticut Attorney General’s Office.  U.S. Attorney Durham also thanked the Connecticut Department of Social Services for their role in identifying the fraudulent scheme and supporting the investigation and prosecution of the case.

The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group.  The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI.  The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.

This matter is being prosecuted by Assistant U.S. Attorneys David J. Sheldon and Christopher W. Schmeisser.

People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.

John H. Durham, United States Attorney for the District of Connecticut, today announced that MATTHEW PETROVITCH, 38, of Stratford, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of possession of a firearm by a previously convicted felon.

According to court documents and statements made in court, on September 26, 2017, Stratford Police responded to PETROVITCH’s residence after a female victim reported that PETROVITCH had physically assaulted her and threatened her with a firearm while she was holding a young child.  After PETROVITCH was taken into custody, officers searched the residence and seized an AK-74 semiautomatic rifle, a short-barreled shotgun, and more than 350 rounds of assorted ammunition.

The short-barreled shotgun was not registered to him in the National Firearms Registration and Transfer Record, as required.

In March 2000, PETROVITCH was convicted in state court of conspiracy to commit assault in the first degree, and robbery 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.

When he is sentenced, PETROVITCH faces a maximum term of imprisonment of 10 years.  PETROVITCH is detained pending sentencing.

On April 24, 2018, PETROVITCH pleaded guilty in Bridgeport Superior Court to state charges related to this incident.

This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Stratford Police Department.  The case is being prosecuted by Assistant U.S. Attorney Alina P. Reynolds, in coordination with the State’s Attorney for the Fairfield Judicial District.

John H. Durham, United States Attorney for the District of Connecticut, today announced that JOEL C. RILEY, 46, of Wallingford, was arrested yesterday on a criminal complaint charging him with bankruptcy fraud, identity theft, and conspiracy to commit bankruptcy fraud and identity theft.

As alleged in the complaint, on December 15, 2016, RILEY visited an attorney claiming that he had power of attorney for another individual (the “victim”) who was ill, and that he wanted to file a bankruptcy petition on the victim’s behalf.  The attorney told RILEY that the attorney needed to meet with the victim in person to confirm her identity.  After several delays, on June 6, 2017, RILEY and a woman claiming to be the victim met with the attorney at his office.  The woman presented a Connecticut driver’s license in the name of the victim as identification.  That same day, the parties reviewed and signed a Chapter 7 bankruptcy petition, which the attorney filed with the U.S. Bankruptcy Court for the District of Connecticut.  The petition listed unsecured debts of approximately $277,000.

The complaint further alleges that, later in June 2017, the victim tried to use a department store credit card and learned that a bankruptcy petition had been filed in her name, without her knowledge and authorization.  On June 28, 2017, the victim met with the attorney and stated that she did not file for bankruptcy.  That same day, RILEY sent an email to the attorney stating “I clearly owe you more than an apology and clearly have not been in the right frame of mind. I need to make this right. And I know that exposes myself. You have done so much for me and I betrayed that. Please let me know what I can do to resolve this.”  The attorney then notified the bankruptcy court. 

It is further alleged that the victim testified in bankruptcy court that her identification had been missing from her wallet when the petition was filed.  She further testified that other than a student loan, all of the other unsecured debt listed in the bankruptcy petition was not her debt and that RILEY had impersonated her in the past in order to obtain credit.  On July 21, 2017, the bankruptcy court dismissed the false bankruptcy petition in the victim’s name.

After his arrest, RILEY appeared before U.S. Magistrate Judge Robert M. Spector in New Haven and was released on a $100,000 bond and electronic monitoring.

Bankruptcy fraud, identity theft, and conspiracy each carries a maximum term of imprisonment of five years.  

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

This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.

John H. Durham, United States Attorney for the District of Connecticut, announced that TREYVON BATTLE, also known as “Joker,” 27, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 57 months of imprisonment, followed by three years of supervised release, for illegally possessing a loaded handgun.

According to court documents and statements made in court, on July 31, 2017, BATTLE fled from a rental truck as a New Haven Police officer was conducting a traffic stop of the vehicle on Ella T. Grasso Boulevard.  Pursuing officers located BATTLE and observed him carrying and then discarding a firearm on Truman Street.  Officers apprehended BATTLE shortly thereafter, and then collected the firearm, which was a semiautomatic 9mm handgun loaded with 18 rounds of ammunition.  The gun also had an obliterated serial number.

On August 26, 2010, BATTLE was convicted in state court for the felony offense of “No Pistol Permit” and “Assault Personnel,” on which he received a sentence of 10 years of incarceration, with five years to serve, followed by five years of probation.

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

BATTLE has been detained since his arrest.  On February 7, 2018, he pleaded guilty to one count of possession of a firearm and ammunition by a previously convicted felon.

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

John H. Durham, United States Attorney for the District of Connecticut, announced that ULPIANO LUGO, 37, of Groton, waived his right to be indicted and pleaded guilty today before Senior U.S. District Judge Alfred V. Covello in Hartford to one count of distribution of heroin and/or cocaine.

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 April 22, 2017, at approximately 7:37 p.m., Groton City Police and emergency medical personnel responded to a residence in Groton and found an unresponsive 37-year-old male in the bedroom of the residence.  The victim was pronounced deceased at the scene.  Officers collected from the bedroom one used syringe that was one-third full of an unknown liquid, a bent metal spoon with an off-white residue on the surface, one plastic bag with powder residue, and the victim’s cellphone.

Subsequent analysis of the powder residue revealed the presence of heroin and cocaine, and text messages from the victim’s cellphone confirmed that the victim had ordered narcotics from LUGO in the days before the victim’s death.

Judge Covello scheduled sentencing for August 1, 2018, at which time LUGO faces a maximum term of imprisonment of 20 years.  LUGO is detained pending sentencing.

This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force and the Groton City Police Department.  The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.

John H. Durham, United States Attorney for the District of Connecticut, announced that two Long Island residents were sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven for their roles in two separate investment fraud schemes. THOMAS HEAPHY, Jr., 43, of East Moriches, N.Y, and BRIAN FERRAIOLI, 41, of Sayville, N.Y., were each sentenced to 72 months of imprisonment, followed by three years of supervised release.

According to court documents and statements made in court, for several years, Heaphy, Ferraioli and others defrauded investors through a stock “pump and dump” scheme. As part of the scheme, Heaphy, Ferraioli and their co-conspirators induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. The issuing companies were essentially shell companies with virtually no legitimate business activities. Heaphy and Ferraioli’s numerous misrepresentations induced investors to purchase securities, thus causing the share price of the securities to become artificially inflated. Certain co-conspirators then sold their own preexisting positions in the securities at a profit. They then allowed he price of the securities to fall, leaving investors with worthless and unsalable stock. As a result, victim investors lost millions of dollars.

Heaphy and Ferraioli received approximately 25 percent of all money that they induced individuals to invest, and gained approximately $719,000 and $1.25 million, respectively, from the scheme. They disguised the income by having the funds flow through the trust accounts of various attorneys, including Corey Brinson in Connecticut, into bank accounts in the name of various shell entities under their control, and failed to pay federal income taxes on most of the income.

In the summer of 2016, after Heaphy and Ferraioli learned that they were under federal investigation for their roles in the stock pump and dump scheme, they became involved in the promotion and sale of securities of Waters Club Worldwide, Inc. and Waters Club Holdings, Inc. (collectively, “Waters Club”), which provided yacht charter services to customers. From approximately August 2016 to February 2017, Heaphy and Ferraioli solicited prospective investors to purchase shares of Waters Club stock purportedly in advance of an initial public offering (“IPO”).

Heaphy and Ferraioli represented that Waters Club intended to form a membershipbased “time share” club with a fleet of yachts that members jointly owned and could use for yachting vacations. They stated that investors’ money would be used to develop the business and fund the operations of Waters Club, and that Heaphy and Ferraioli were being compensated with stock for recruiting investors. In truth, Heaphy and Ferraioli received approximately half of all the money they induced investors in Waters Club to invest. Due in part to the payments to Heaphy and Ferraioli, Waters Club lacked the capital to develop its membership-based club, Waters Club did not pursue an IPO, and the shares purchased by investors were unsalable.

Heaphy and Ferraioli recruited at least 12 investors to pay a total of at least $1,289,500 for shares of Waters Club stock. One of the victims of the Waters Club scheme was a Connecticut resident who paid $475,000 to Waters Club. Heaphy’s total gain from the scheme was $307,658 and Ferraioli’s total gain was $297,546.

At least six Waters Club victim-investors have also been identified as victims of the earlier stock pump and dump scheme.

Heaphy and Ferraioli each pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of tax evasion related to the stock pump and dump scheme, and one count of conspiracy to commit mail and wire fraud related to the Waters Club investment scheme.

Judge Meyer ordered Heaphy to pay total restitution of $6,738,539, and Ferraioli to pay total restitution of $6,896,927. The restitution orders include restitution owed to victims of the schemes, and to the Internal Revenue Service.

Judge Meyer ordered Heaphy and Ferraioli, who are released on bonds, to report to prison on July 9.

On January 20, 2017, Brinson, of Hartford, pleaded guilty to one count of engaging in a monetary transaction in property derived from specified unlawful activity. On April 13, 2017, he was sentenced to 36 months of imprisonment.

This investigation has been conducted by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments. This 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 two Long Island residents were sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven for their roles in two separate investment fraud schemes.  THOMAS HEAPHY, Jr., 43, of East Moriches, N.Y, and BRIAN FERRAIOLI, 41, of Sayville, N.Y., were each sentenced to 72 months of imprisonment, followed by three years of supervised release. 

According to court documents and statements made in court, for several years, Heaphy, Ferraioli and others defrauded investors through a stock “pump and dump” scheme.  As part of the scheme, Heaphy, Ferraioli and their co-conspirators induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated.  The issuing companies were essentially shell companies with virtually no legitimate business activities.  Heaphy and Ferraioli’s numerous misrepresentations induced investors to purchase securities, thus causing the share price of the securities to become artificially inflated.  Certain co-conspirators then sold their own preexisting positions in the securities at a profit.  They then allowed he price of the securities to fall, leaving investors with worthless and unsalable stock.  As a result, victim investors lost millions of dollars.

Heaphy and Ferraioli received approximately 25 percent of all money that they induced individuals to invest, and gained approximately $719,000 and $1.25 million, respectively, from the scheme.  They disguised the income by having the funds flow through the trust accounts of various attorneys, including Corey Brinson in Connecticut, into bank accounts in the name of various shell entities under their control, and failed to pay federal income taxes on most of the income.

In the summer of 2016, after Heaphy and Ferraioli learned that they were under federal investigation for their roles in the stock pump and dump scheme, they became involved in the promotion and sale of securities of Waters Club Worldwide, Inc. and Waters Club Holdings, Inc. (collectively, “Waters Club”), which provided yacht charter services to customers.  From approximately August 2016 to February 2017, Heaphy and Ferraioli solicited prospective investors to purchase shares of Waters Club stock purportedly in advance of an initial public offering (“IPO”).

Heaphy and Ferraioli represented that Waters Club intended to form a membership-based “time share” club with a fleet of yachts that members jointly owned and could use for yachting vacations.  They stated that investors’ money would be used to develop the business and fund the operations of Waters Club, and that Heaphy and Ferraioli were being compensated with stock for recruiting investors.  In truth, Heaphy and Ferraioli received approximately half of all the money they induced investors in Waters Club to invest.  Due in part to the payments to Heaphy and Ferraioli, Waters Club lacked the capital to develop its membership-based club, Waters Club did not pursue an IPO, and the shares purchased by investors were unsalable.

Heaphy and Ferraioli recruited at least 12 investors to pay a total of at least $1,289,500 for shares of Waters Club stock.   One of the victims of the Waters Club scheme was a Connecticut resident who paid $475,000 to Waters Club.  Heaphy’s total gain from the scheme was $307,658 and Ferraioli’s total gain was $297,546.

At least six Waters Club victim-investors have also been identified as victims of the earlier stock pump and dump scheme.

Heaphy and Ferraioli each pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of tax evasion related to the stock pump and dump scheme, and one count of conspiracy to commit mail and wire fraud related to the Waters Club investment scheme.

Judge Meyer ordered Heaphy to pay total restitution of $6,738,539, and Ferraioli to pay total restitution of $6,896,927.  The restitution orders include restitution owed to victims of the schemes, and to the Internal Revenue Service.

Judge Meyer ordered Heaphy and Ferraioli, who are released on bonds, to report to prison on July 9.

On January 20, 2017, Brinson, of Hartford, pleaded guilty to one count of engaging in a monetary transaction in property derived from specified unlawful activity.  On April 13, 2017, he was sentenced to 36 months of imprisonment.

This investigation has been conducted by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments.  This case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.

John H. Durham, United States Attorney for the District of Connecticut, today announced that GILBERTO VALENTIN, also known as “Miguel Perez-Sanchez,” 28, of Stamford, has been charged by federal criminal complaint with possession with intent to distribute U-47700, a synthetic opioid.

VALENTIN, who was arrested on May 4, appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was ordered detained.

As alleged in court documents, law enforcement identified VALENTIN as a suspected drug supplier of a heroin distributor residing in Albany, New York.  On May 4, 2018, the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Stamford Police Department conducted a search of VALENTIN’s residence at 69 Turn of River Road and seized a shoebox containing approximately 1,950 glassine folds of suspected narcotics packaged for resale.  Preliminary testing of the seized substance indicated the presence of a synthetic opioid known as U-47700, commonly referred to by the street name “pinks.”  The shoebox also contained approximately 51 grams of a compressed powder, consistent with heroin/ fentanyl and their derivatives, which has not yet been tested for safety reasons.

The charged offense carries a maximum term of imprisonment of 20 years.

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

This matter is being investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Stamford Police Department, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.  The case is being prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.

John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL BAUER, 36, of North Branford, waived his right to be indicted and pleaded guilty today in Hartford federal court to one count of possession of child pornography.

According to court documents and statements made in court, on December 10, 2015, the Federal Bureau of Investigation conducted a court-authorized search of BAUER’s North Branford residence and seized approximately 19 electronic devices, including external hard drives.  A forensic examination of the seized devices revealed more than 600 images and videos of child pornography, including images and videos depicting children younger than 12 engaged in sexually explicit conduct.  Some of the images and videos depict sadistic and masochistic conduct.

BAUER is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on August 1, 2018, at which time he faces a maximum term of imprisonment of 20 years.

BAUER is released on a $100,000 bond pending sentencing.

This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies.  The case is being prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.

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 LUIS PALACIOS ORTIZ, 44, a citizen of Mexico, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 60 months of imprisonment, followed by 10 years of supervised release, for cocaine trafficking and immigration offenses.

According to court documents and statements made in court, on February 13, 2017, the Connecticut State Police stopped a car that PALACIOS ORTIZ was driving on I-84 East near Waterbury.  A subsequent search of the vehicle revealed approximately 4.5 kilograms of cocaine.

PALACIOS ORTIZ has been convicted of at least six federal immigration offenses since 1999, and he was previously deported from the U.S. multiple times, the last time occurring in September 2015.

PALACIOS ORTIZ has been detained since his arrest on February 13, 2017.  On February 15, 2018, he pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine, and one count of reentry of a removed alien.  He will be deported after he serves his 60-month prison term.

This matter was investigated by the Drug Enforcement Administration and the Connecticut State Police.  The case was prosecuted by Assistant U.S. Attorney Rahul Kale.

John H. Durham, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, and Hartford Police Chief David Rosado today announced the unsealing of a 41-count indictment charging 10 alleged members and associates of the Almighty Latin Kings Nation with narcotics offenses related to the distribution of heroin, fentanyl and crack cocaine in Hartford.  The indictment also charges four of the defendants with firearm offenses stemming from a shooting incident last year in Hartford’s South End.

The indictment, which was returned by a grand jury in Hartford on May 1 and unsealed today, stems from a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford.

Charged in the indictment are:

WILSON VELEZ, a.k.a. “Wiso,” 33, of Newington
MIGUEL CLAUDIO, a.k.a. “Mega,” 35, of Hartford
JOSHUA AMARAL, a.k.a. “Ill Child,” 33, of Hartford
ANGEL CABRERA, 23, of Hartford
SAMMY DIAZ, a.k.a. “Shorty,” 30, of Meriden
CRUZ FERNANDEZ, a.k.a. “Blood,” 27, of Hartford
JOSE RODRIGUEZ, a.k.a. “Juice,” 47, of Hartford
FRANKIE VEGA, a.k.a. “Lips,” 33, of Hartford
MIGUEL MARTINEZ, a.k.a. “Nitro,” 33, of Hartford
MARIO MERCADO, a.k.a. “Taz,” 33, of Hartford

Claudio, Diaz, Fernandez, Rodriguez, Vega, and Mercado were arrested today.  They appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford and are detained.

Velez was arrested on related narcotics offenses on December 7, 2017, and was subsequently released on bond.  He was arrested again on April 5, 2018, and his bond was revoked after the court determined there was probable cause that Velez committed additional offenses while he was released.  Amaral and Cabrera are incarcerated in state custody.  Martinez is still being sought.

The indictment alleges that between April 2017 and April 2018, Velez, Claudio, Amaral, Cabrera, Diaz, Fernandez, Rodriguez and Vega conspired to distribute and to possess with intent to distribute heroin, fentanyl, cocaine and cocaine base (“crack cocaine”).  If convicted of conspiracy, based on the type and quantity of narcotics charged, Velez faces a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; Claudio and Rodriguez face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and Amaral, Cabrera, Diaz, Fernandez and Vega face a maximum term of imprisonment of 20 years.

In addition to the conspiracy count, Velez, Claudio, Amaral, Cabrera, Fernandez, Vega, Martinez and Mercado are each charged with one or more counts of possession and/or distribution of various controlled substances.  Velez also is charged with one count of employing a minor to distribute heroin and fentanyl, and Diaz and Vega are charged in one or more counts with using a telephone to facilitate the distribution of heroin and/or fentanyl.

The indictment also charges Velez, Claudio, Amaral and Cabrera with firearms offenses stemming from a shooting incident that occurred on April 28, 2017, in the area of Franklin Avenue and Barker Street in Hartford.  If convicted of using and carrying a firearm in relation to, and furtherance of, a drug trafficking crime, these defendants face a mandatory consecutive 10-year term of imprisonment.  In addition, Martinez is charged with being a convicted felon in possession of a firearm on June 8, 2017, an offense that carries a maximum term of imprisonment of 10 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 Vice and Narcotics Division and Shooting Task Force have provided valuable 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, announced that JOHN RODRIGUEZ, 37, of West Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 27 months of imprisonment, followed by four years of supervised release, for distributing fentanyl to a Bridgeport man who overdosed on the drug in 2015.

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, shortly after midnight on November 7, 2015, Bridgeport Police and emergency medical personnel responded to a residence in Bridgeport after a 29-year-old male had been found unresponsive by his roommate.  The victim was transported by ambulance to the hospital where, after several attempts to revive him, he was pronounced dead.

The investigation, which included witness interviews and analysis of text message communication, revealed that RODRIGUEZ supplied what he believed to be heroin to the victim the day before the victim died.

A post-mortem toxicology report found fentanyl, marijuana and several anti-depressant drugs in the victim’s system, and the Office of the Chief Medical Examiner for the State of Connecticut concluded that the victim died from acute fentanyl intoxication.

RODRIGUEZ was arrested on a federal criminal complaint on September 22, 2016.  On December 12, 2017, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.

This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the West Haven and Bridgeport Police Departments.  The case was prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Jocelyn Courtney Kaoutzanis.

John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with Fritz’s Snack Bar in Oxford to resolve allegations that the restaurant was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).

The settlement agreement resolves an ADA complaint filed by an individual with disabilities alleging that Fritz’s Snack Bar was not accessible for individuals with physical disabilities.  The restaurant is in the process of making the changes required by the settlement agreement, including adding accessible parking, ensuring that there is an accessible entry route to the restaurant, increasing the number of accessible dining seats within the restaurant and in the patio area, ensuring that the patio area has an accessible entrance, and ensuring that the surface of the patio has a stable, firm and slip resistant surface so that it is accessible for individuals with mobility disabilities.  Fritz’s Snack Bar will continue to make improvements over the next nine months.

Under federal law, private entities that own or operate places of “public accommodation,” including restaurants, are prohibited from discriminating on the basis of disability.  The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities.  The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.

U.S. Attorney Durham noted that the owners of Fritz’s Snack Bar have worked cooperatively and collaboratively with the U.S. Attorney’s Office to address the ADA issues without litigation.

“The Americans with Disabilities Act ensures that individuals are able to access and enjoy the state’s restaurants and other places of public accommodation,” stated U.S. Attorney Durham.  “Our Office is committed to enforcing the ADA, which requires businesses to appropriately serve the diverse populations of patrons who live, work, and visit Connecticut.  We appreciate the cooperation of the owners of Fritz’s Snack Bar and their commitment to increase the accessibility of their restaurant.”

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

This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.

John H. Durham, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Shelly A. Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, today announced that a federal grand jury in New Haven returned a 12-count indictment yesterday charging LEON C. VACCARELLI, 41, of Waterbury, with fraud and money laundering offenses stemming from an investment scheme that defrauded individuals of more than $1 million.

VACCARELLI appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven, entered a plea of not guilty to the charges, and was released on a $100,000 bond.

As alleged in the indictment, VACCARELLI, was a registered representative of The Investment Center, a brokerage company, and was an investment adviser associated with IC Advisory Services, Inc.  He also was the owner and only member of LWLVACC, LLC, and conducted business through an entity named Lux Financial Services.  Using these various entities, VACCARELLI operated a financial advisory and brokerage service through which he offered investment advice and sold investments and securities to individuals and families in the Waterbury area.

Between approximately 2011 and 2017, it is alleged that VACCARELLI defrauded victim investors of more than $1 million by falsely representing that he would invest his clients’ money in IRA rollover accounts, money market accounts, certificates of deposit (“CDs”), or other types of interest-earning investments.  However, instead of investing customers’ funds as he had represented, VACCARELLI deposited customer funds into his own personal account and business bank accounts, commingled those funds with his own money, and used the funds to pay both business and personal expenses, including tuition and mortgage payments.  In some instances, he also used customer funds to make bogus “interest payments” to other victim-investors.

The indictment charges VACCARELLI with three counts of mail fraud, and six counts of wire fraud, offenses that carry a maximum term of imprisonment of 20 years on each count.  The indictment also charges VACCARELLI with three counts of money laundering, 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 and U.S. Postal Inspection Service.  The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.

In a parallel action, the Securities and Exchange Commission brought related civil charges against VACCARELLI.

John H. Durham, United States Attorney for the District of Connecticut, announced that STEVEN SINGH, also known as “Smurf,” 39, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 122 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm, and for violating the conditions of his supervised release from a prior federal conviction.

According to court documents and statements made in court, on June 14, 2017, the FBI executed a search warrant at SINGH’s resident on Hallock Street in New Haven and seized approximately five grams of crack cocaine, narcotics paraphernalia, and a Taurus 9mm semi-automatic pistol containing a magazine loaded with 10 rounds of ammunition.

This is SINGH’s fourth federal conviction.  In June 2011, he was sentenced in Bridgeport federal court to concurrent sentences of 24 months of imprisonment and five years of supervised release for two crack cocaine distribution offenses and, in July 2015, he was sentenced to 38 months of imprisonment and three years of supervised release for illegally possessing ammunition and violating the conditions of his supervised release imposed when he was sentenced in 2011.  He was released from federal prison in March 2016.

SINGH also has been convicted in state court for narcotics, weapons, assault, and reckless endangerment offenses.

SINGH has been detained since his arrest on June 14, 2017.  On November 16, 2017, he pleaded guilty to one count of possession of a firearm by a previously convicted felon, and admitted that he violated the conditions of his supervised release.

Judge Shea sentenced SINGH to 110 months of imprisonment for the firearm offense, and a consecutive 12 months of imprisonment for violating his supervised release.

This matter was investigated by the Federal Bureau of Investigation and the New Haven Police Department, and was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.

John H. Durham, United States Attorney for the District of Connecticut, today announced that RUBEN MORALES, 45, of Hartford, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 46 months of imprisonment, followed by five years of supervised release, for distributing drugs involved in two overdose deaths in December 2016.

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 December 24, 2016, Hartford police officers and emergency medical personnel responding to reports of unresponsive individuals discovered two male overdose victims in different locations on Zion Street in Hartford.  A 33-year-old victim was pronounced deceased shortly after he was discovered in the rear parking lot of an apartment complex on Zion Street.  At the scene, officers seized various items of drug-related paraphernalia.  Officers found a 25-year-old victim on the rear porch of an apartment on Zion Street.  The victim was transported to the hospital and later pronounced deceased.

The Connecticut Office of the Chief Medical Examiner subsequently determined that the 33-year-old victim’s death was caused by a combination of cocaine, heroin and fentanyl, and the 25-year-old victim’s death was caused by a combination of cocaine, ethanol and fentanyl.

The investigation revealed that MORALES supplied fentanyl-laced heroin that both victims consumed shortly before they died.

In January and February 2017, members of the FBI’s Northern Connecticut Violent Crime Gang Task Force conducted seven controlled purchases of heroin from MORALES.  Subsequent lab analysis confirmed the presence of fentanyl in six of the seven controlled purchases.

MORALES was arrested on a federal complaint on February 16, 2017.  On January 29, 2018, he pleaded guilty to one count of distribution of heroin and fentanyl.

Judge Bryant ordered MORALES, who is released on a $100,000 bond, to report to prison on June 6.

The FBI’s Northern Connecticut Violent Crime Gang Task Force includes members from the FBI, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.  This case was prosecuted by Assistant U.S. Attorney Natasha Freismuth.

John H. Durham, United States Attorney for the District of Connecticut, today announced that MIQUEL LEWIS, 21, of Hamden, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by three years of supervised release, for narcotics distribution and firearm possession offenses.

According to court documents and statements made in court, on September 6, 2017, LEWIS was arrested after members of the DEA New Haven Task Force and Hamden Police Department conducted a court-authorized search of LEWIS’s Hamden residence and seized 510 bags of heroin, approximately five grams of crack cocaine, narcotics paraphernalia, a loaded .38 caliber revolver and a loaded .45 caliber revolver.  A subsequent search of a rental vehicle located in the driveway of the residence revealed a loaded .40 caliber firearm, which had been reported stolen in New Haven.

On January 30, 2018, LEWIS pleaded guilty to one count of possession of heroin and cocaine base (“crack”) with intent to distribute, and one count of possession of a firearm by a convicted felon.

The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.

This case was prosecuted by Assistant U.S. Attorney H. Gordon Hall.

John H. Durham, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven returned an indictment yesterday charging JOHN FAUCHER, 40, with possession of contraband in a federal prison.

The indictment alleges that, on March 12, 2018, FAUCHER, an inmate at the Federal Correctional Institution in Danbury (FCI Danbury), possessed a weapon or an object designed or intended to be used as a weapon.

If convicted of the charge, FAUCHER faces a maximum term of imprisonment of five 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 Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Anastasia E. King.

John H. Durham, United States Attorney for the District of Connecticut, announced that GARRETT GOMEZ, 27, of Barkhamsted, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 12 months of imprisonment, followed by four years of supervised release, for distributing fentanyl involved in an overdose death in 2016.

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, on May 20, 2016, Torrington Police and emergency medical personnel responded to a residence in Torrington and found a deceased 30-year-old male lying on his bed.  At the scene, investigators collected six wax paper folds and three torn wax paper folds found on a bedside table.  They also found a hypodermic needle at the feet of the victim.

Subsequent laboratory testing of the contents of the wax folds confirmed the presence of fentanyl, and the State of Connecticut Office of the Chief Medical Examiner determined that the victim died from acute fentanyl intoxication. 

The investigation, which included analysis of text messages contained on the victim’s cell phone, revealed that in the evening of May 19, 2016, the victim agreed to meet with GOMEZ to purchase “9 for 60.”  In the victim’s automobile, investigators found an ATM receipt showing a $60 withdrawal.

GOMEZ was arrested on a federal criminal complaint on August 23, 2016.  On November 13, 2017, he pleaded guilty to one count of distribution of fentanyl. 

As part of the sentence, Judge Meyer ordered GOMEZ to pay restitution of $10,194 to the victim’s family to cover the victim’s funeral expenses.

This matter was investigated by the Drug Enforcement Administration’s Hartford Task Force and the Torrington Police Department.  The 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.  The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.

John H. Durham, United States Attorney for the District of Connecticut, today announced that EDDIE CHAN, 58, of Norwalk, was sentenced yesterday by U.S. District Judge Jeffrey A. Meyer in New Haven to five years of probation for filing false tax returns.  

According to court documents and statements made in court, CHAN was employed as a bookkeeper for a private art firm located in New York City.  Between 2013 and 2015, CHAN withdrew funds from the firm’s business accounts without authorization from his employer, and used the money for personal expenses.  CHAN failed to declare a total of $271,166 in misappropriated funds on his federal income tax returns for 2013 and 2014, resulting in a loss of $78,214 to the Internal Revenue Service.

CHAN admitted that he misappropriated additional funds from his former employer, and also borrowed thousands of dollars from other individuals, and used much of the money to gamble on horseracing.

On October 26, 2017, CHAN pleaded guilty to one count of making a false statement on a federal income tax return

Judge Meyer ordered CHAN to pay approximately $500,000 in restitution to his former employer, and to cooperate with the IRS to pay all outstanding taxes, interest and penalties.

This case was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney David J. Sheldon.

John H. Durham, United States Attorney for the District of Connecticut, announced that NEFTY RODRIGUEZ, 24, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 48 months of imprisonment, followed by three years of supervised release, for distributing heroin and crack cocaine to an overdose victim in 2015.

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 August 23, 2015, a 21-year-old Tolland woman was rushed to Rockville Hospital after her mother found her in medical distress as a result of a likely drug overdose.  The bloodwork from the hospital confirmed that the woman had heroin and cocaine in her system.  The victim, who is now at a hospital in New Hampshire, has no brain activity and is in a permanent vegetative state.

RODRIGUEZ was subsequently identified as the source of the drugs consumed by the victim that resulted in her overdose.

RODRIGUEZ was arrested on August 4, 2017.  On January 30, 2018, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin and cocaine base (“crack cocaine”).

This matter was investigated by the Manchester Police Department and the Drug Enforcement Administration’s New Haven Task Force.  The case was prosecuted by Assistant U.S. Attorney Peter D. Markle.

John H. Durham, United States Attorney for the District of Connecticut, announced that RICHARD ESTABA, also known as “Raw,” 23, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to one day of imprisonment, time already served, six months of home confinement and four years of supervised release, for distributing heroin to an overdose victim in Seymour.

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 July 9, 2017, Seymour Police and emergency medical personnel responded to a residence in Seymour on a report of a suspected drug overdose.  In the bathroom of the residence, responders encountered a 29-year-old male who was not breathing and did not have a pulse.  The male was pronounced deceased.  Investigators seized the victim’s cellphone, multiple folds of suspected heroin marked with two different brand stamps, and other drugs.  Subsequent cell phone analysis and witness interviews determined that ESTABA supplied the heroin consumed by the victim shortly before he was found dead.

The Connecticut Office of the Chief Medical Examiner determined that the victim’s death was caused by acute intoxication due to the combined effects of cocaine, etizolam, fentanyl, flubromazolam and heroin.

In August 2017, investigators made a controlled purchase of 10 wax folds of heroin from ESTABA.  The folds were marked with a brand stamp that was found on some of the wax folds at the victim’s residence.

ESTABA was arrested on September 20, 2017.  On that date, he possessed approximately 400 folds of heroin and $1,300 in cash.

On January 24, 2018, ESTABA pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.

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

John H. Durham, United States Attorney for the District of Connecticut, today announced that SHAMAR MADDEN, also known as “Sheist,” 38, of Atlanta, Georgia, pleaded guilty yesterday before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of conspiracy to distribute, and to possess with intent to distribute, 100 kilograms or more of marijuana.

According to court documents and statements made in court, between August 2016 and February 2017, MADDEN, Malek Long and others conspired to use the U.S. Mail to ship substantial quantities of marijuana from California to New Haven, and then distribute the marijuana throughout the area.  MADDEN regularly traveled from Georgia to Connecticut to pick up his share of the cash proceeds from the marijuana trafficking enterprise.

On February 22, 2017, MADDEN, who was traveling back to Georgia, was stopped at LaGuardia Airport in New York in possession of $19,740 in cash.  On that date, investigators also searched two storage lockers that Long maintained at a self-storage facility in West Haven and seized approximately $404,000 in cash.

Judge Underhill scheduled sentencing for July 23, 2018, at which time MADDEN faces a maximum term of imprisonment of 40 years.

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

On May 12, 2017, Long, of New Haven, pleaded guilty to the same charge.  On December 12, 2017, he was sentenced to 24 months of imprisonment.

This investigation is being conducted by the Federal Bureau of Investigation, U.S. Postal Inspection Service, New Haven Police Department and Connecticut Department of Correction.  The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.

John H. Durham, United States Attorney for the District of Connecticut, announced that ELIJAH CHIN, 28, of Federal Way, Washington, pleaded guilty today in Hartford federal court to fraud and identity theft offenses stemming from a credit card fraud scheme.

According to court documents and statements made in court, between approximately December 2016 and February 2017, CHIN was involved in a scheme in which credit card accounts were opened electronically using personal identifying information from Connecticut residents.  After the credit card issuers mailed credit cards to the victims’ home addresses, CHIN took the cards directly from the victims’ mailboxes.  CHIN then used the credit cards to purchase gift cards, prepaid cards and other items totaling $63,941.60 at various retail establishments in Connecticut.

The Wilton Police Department arrested CHIN on related state charges on February 22, 2017.  At the time of his arrest, CHIN possessed numerous fraudulently issued credit cards, prepaid cards purchased with the fraudulently obtained credit cards, and mail addressed to Connecticut residents.

CHIN pleaded guilty to one count of wire fraud, and offense that carries a maximum term of imprisonment of 20 years, and one count of aggravated identity theft, an offense that carries a mandatory consecutive term of imprisonment of two years.  He is scheduled to be sentenced by U.S. District Judge Michael P. Shea on July 23, 2018.

This ongoing investigation is being conducted by the U.S. Postal Inspection Service, Wilton Police Department and Ridgefield 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, announced that CANDIDO VALADARES, also known as Candide Valadares, 57, of Norwalk, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to two months of imprisonment, followed by one year of supervised release, for filing false tax returns.

According to court documents and statements made in court, VALADARES operates two Norwalk-based landscaping businesses, Candide’s Landscaping and Water Gardens, LLC and Candide Contractor & Natural Pools, LLC.  He also provides snow-removal services to his clients during winter months.  An investigation revealed that VALADARES deposited receipts from his businesses into both his business and personal bank accounts.  He also substantially underreported employee wages by paying certain employee wages out of his personal accounts.

VALADARES used a tax return preparer to prepare his yearly tax returns.  The tax preparer took figures from certain profit-and-loss statements obtained from VALADARES or his bookkeeper to prepare the relevant federal tax returns.  VALADARES knew that the profit-and-loss statements did not reflect all revenues deposited in VALADARES’ business and personal bank accounts, and substantially underreported payroll.  As a result, VALADARES’ federal tax returns for 2009, 2010 and 2011 tax years underreported $488,182 in gross receipts, underreported his business payroll by approximately $350,000, and resulted in a loss of $165,763.52 to the U.S. Treasury.

VALADARES is required to pay $165,763.52 in restitution, and cooperate with the IRS to pay any additional civil penalties and interest that have accrued on his unpaid taxes.

On November 16, 2017, VALADARES pleaded guilty to one count of filing a false tax return.

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

United States Attorney John H. Durham and Connecticut Attorney General George Jepsen today announced that NEW ERA REHABILITATION CENTER, DR. EBENEZER KOLADE and DR. CHRISTINA KOLADE have entered into a civil settlement agreement with the federal and state governments in which they will pay $1,378,533 to resolve allegations that they violated the federal and state False Claims Acts.   

NEW ERA REHABILITATION CENTER (“NEW ERA”) provides behavioral health and substance abuse services to patients at its clinics in New Haven and Bridgeport.  DR. EBENEZER KOLADE and DR. CHRISTINA KOLADE (the “KOLADES”) are the co-founders and owners of NEW ERA.

As part of their practice, NEW ERA and the KOLADES provide methadone maintenance services to Medicaid beneficiaries.  Medicaid pays providers a weekly “bundled rate” for methadone maintenance services.  Included in the bundled rate, pursuant to state regulations, is the intake evaluation of the patient; the initial physical examination; on-site drug abuse testing and monitoring; and individual, group, and family counseling services.  The counseling services provided to methadone maintenance patients are included in the bundled rate and should not be billed as separate services.

The government alleges that NEW ERA and the KOLADES provided methadone maintenance counseling services to its Medicaid patients and were paid the bundled rate for those services, but also submitted claims to Medicaid for psychotherapy services for the same patients.  The government alleges that NEW ERA and the KOLADES did not provide the psychotherapy services, but only provided methadone maintenance counseling services, which were already included in the weekly bundled rate.  The United States and the State of Connecticut contend that the claims NEW ERA and the KOLADES submitted for psychotherapy services constituted false claims submitted to the Medicaid program. 

To resolve the allegations under the federal and state False Claims Acts, NEW ERA and the KOLADES have agreed to pay $1,378,533, which covers conduct occurring from October 1, 2009 through November 30, 2013.

“We must ensure that taxpayers’ health care dollars used for substance abuse treatment are properly spent,” said U.S. Attorney Durham.  “Medical practices and physicians who treat patients for substance abuse must bill their services accurately and honestly.  Health care providers who submit false claims to federal health care programs will be held accountable.”

This matter was investigated by the Office of Inspector General for the Department of Health and Human Services.  The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and by Assistant Attorneys General Antonia Conti and Robert Teitelman of the Connecticut Office of the Attorney General.

People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.

John H. Durham, United States Attorney for the District of Connecticut, and Kenneth Kwak, Acting Special Agent in Charge of the ATF Boston Field Division, announced that SAAR Corporation, a firearms manufacturer in Farmington, and two of its principals pleaded guilty today in Hartford federal court to violating federal firearms laws.

According to court documents and statements made in court, on November 2, 2015, ATF Industry Operations Investigators performed a firearms compliance inspection of SAAR Corporation, located at 81 Spring Lane in Farmington.  SAAR Corporation manufactured firearms frames and receivers for other federal firearm licensees who built the frames and receivers obtained from SAAR into fully functioning firearms by adding other components, such as a barrel and trigger.  The frame or receiver of a firearm is the part of the firearm that provides housing for the hammer, bolt, or breechblock, and the firing mechanism.  Although a stand-alone frame or receiver cannot fire a round, it is deemed a firearm under federal firearm laws.

The investigation revealed that SAAR Corporation did not maintain proper Acquisition & Disposition (A&D) records for more than 40,000 frames and receivers it manufactured.

Despite the lack of A&D records, the ATF inspection team, with assistance from SAAR Corporation, was eventually able to account for, and ascertain the transfer location of, all of the frames and receivers.

In addition, the National Firearms Act (“NFA”) provides that it is unlawful for any person or entity to possess any NFA-regulated firearm, such as a machine gun, that is not registered to that person or entity.  Investigators determined that SAAR Corporation had manufactured, and was knowingly in possession of, three machine guns that were not registered to it in the National Firearms Registration and Transfer Record (NFRTR) maintained by ATF.  SAAR Corporation failed to register the machine guns in the NFRTR, and failed to maintain records required by the Gun Control Act reflecting SAAR Corporation’s manufacture of these firearms.  The machine guns were turned over to ATF.

“It is vitally important that all firearm manufacturers comply with federal firearms laws and maintain proper records throughout the production and distribution process,” said U.S. Attorney Durham.  “These laws exist so that all legal firearms are recorded and can be traced after they are manufactured.  Fortunately, thanks to the diligence of ATF investigators, all of the firearm frames and receivers involved in this case are now accounted for.  This case clearly demonstrates that gun manufacturers who violate federal laws will face license revocation and criminal prosecution.”

“When firearms licensees fail to comply with these federal regulations and laws, they open the door for firearms to wind up on the street in the hands of traffickers and criminals, said ATF Acting Special Agent in Charge Kwak.  “Today’s guilty pleas and the license revocations demonstrate our commitment to hold firearms licensees accountable when they place public safety at risk.”

SAAR Corporation, and its owners, Mariusz Saar 61, of Avon, and Luke Saar, 36, of Farmington, each pleaded guilty to a misdemeanor charge of failing to maintain firearms records.  Under the terms of binding plea agreements, if accepted by the court, the parties have agreed that sentences of probation and fines totaling $150,000 is appropriate in this case.  The defendants are scheduled to be sentenced by U.S. Magistrate Judge Robert A. Richardson on July 27, 2018.

SAAR Corporation’s federal license to manufacture firearms has been revoked, and the company has agreed that it will not reapply at any time in the future for a federal firearms manufacturing license.  In addition, Mariusz Saar and Luke Saar agree that they will not challenge SAAR Corporation’s revocation in any administrative or civil proceeding, and that they cannot be a “responsible person” on the license of any federal firearms licensee (FFL) in the future.

This matter is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.

John H. Durham, United States Attorney for the District of Connecticut, today announced that, on April 19, 2018, a federal grand jury in New Haven returned an indictment charging JOSE DEL CARMEN HERNANDEZ HERNANDEZ, 42, a citizen of Mexico last residing in Hartford, with one count of illegally reentering the U.S. after being deported.

HERNANDEZ appeared today before U.S. District Judge Jeffrey A. Meyer in New Haven and entered a plea of not guilty to the charge.

As alleged in court documents and statements made in court, between 1999 and 2009, HERNANDEZ, who has never held legal status in the U.S., sustained multiple state convictions, including convictions for assault, threatening and operating under the influence.  In April 2009, he was removed to Mexico.  HERNANDEZ unlawfully reentered the U.S., returned to Connecticut and was subsequently convicted in state court on charges of evasion with injury, and criminal mischief.  After he was arrested in Hartford, in March 2013, on breach of peace and criminal mischief offenses, HERNANDEZ was identified by federal immigration authorities and was charged and convicted in federal court of reentry of a removed alien.  On September 10, 2013, he was sentenced in Hartford federal court to 12 months of imprisonment.  In April 2014, he was again deported to Mexico.

It is further alleged that HERNANDEZ illegally reentered the U.S. a second time and returned to Connecticut.  In November 2015, HERNANDEZ was arrested by Hartford Police for driving under the influence.  He subsequently was charged and convicted in federal court of reentry of a removed alien and, on July 15, 2016, was sentenced to 12 months and one day of imprisonment, followed by three years of supervised release.  On July 26, 2016, he was convicted in state court of operating under the influence and was sentenced to three years of incarceration, suspended after one year.  After he served his federal and state sentences, he was removed to Mexico in May 2017.

It is further alleged that HERNANDEZ illegally reentered the U.S. a third time and, on January 11, 2018, was arrested by the Hartford Police Department for multiple motor vehicle violations, including operating under the influence.  He has been detained since his arrest.

If convicted of the charge of illegal reentry, HERNANDEZ faces a maximum term of imprisonment of 10 years.  HERNANDEZ also faces additional penalties if he is found to have violated the conditions of his supervised release that were imposed at the time of his most recent federal conviction.

U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.

This matter is being investigated 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, announced that ZACHARY PROVOST, 33, of Waterbury, waived his right to be indicted and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of armed bank robbery and admitted that he committed a series of robberies in Connecticut, Massachusetts and New Hampshire in late 2017.

According to court documents and statements made in court:

• On November 29, 2017, PROVOST entered the Mobil gas station located at 385 Watertown Avenue in Waterbury, pulled out a knife, had the cashier open the cash register, and took approximately $700 from the register.
• On November 30, 2017, PROVOST and another male entered the Cumberland Farms located at 1588 Watertown Avenue in Waterbury.  After a knife was displayed and held to the cashier’s back, PROVOST and the other individual took approximately $50 from the cash register.  They also stole other personal items from the cashier, and a customer’s wallet that contained approximately $150.
• On December 1, 2017, PROVOST entered the TD Bank located at 121 Main Street in Southington, presented the teller with a note stating that he had a knife, and demanded that the teller provide him with money.  The teller complied and gave PROVOST $350.
• On December 1, 2017, PROVOST entered the Putnam Bank located inside of the Price Chopper at 251 Kennedy Drive in Putnam and presented the teller with a note stating that he had a knife.  The teller provided PROVOST with $1,222.
• On December 3, 2017, PROVOST entered the Walgreens located at 225 Boston Turnpike in Shrewsbury, Massachusetts, demanded cash from the cashier and lifted his sweatshirt to display a knife.  The cashier provided PROVOST with $545.
• On December 4, 2017, PROVOST entered the TD Bank located at 10 Gusabel Avenue in Nashua, New Hampshire, handed the teller a note, and told the teller to give him all of the money in the drawer.  The teller complied and gave PROVOST $2,599.
• On December 6, 2017, PROVOST entered the Key Bank located at 232 West Main Street in Avon and gave the teller a note stating “I have a gun, hundreds, fifties and twenties and no ones and no dye pack.”  PROVOST also lifted his sweatshirt to reveal what appeared to be a firearm in his waistband.  The teller provided PROVOST with $1,053.  PROVOST fled the area in a vehicle driven by another man.
• On December 8, 2017, PROVOST entered the Mobil Gas Station and Dunkin Donuts located at 750 Straits Turnpike in Middlebury.  PROVOST first threatened the cashier at the Mobil station with what appeared to be a firearm, and instructed her to open the cash register and provide her with all of its contents.  The cashier complied and provided him with $578.  The cashier also complied with PROVOST’s demand that she give him cigarettes valued at approximately $131.  PROVOST then went to the cashier at the Dunkin Donuts, lifted his shirt to display what appeared to be a firearm and demanded money.  During the robbery, when a customer entered the premises, the PROVOST pointed the firearm at her and told her to keep her hands out of her pocketbook.  The cashier gave PROVOST approximately $350.  PROVOST then fled the premises in a vehicle driven by another man.
• On December 8, 2017, PROVOST entered the Thomaston Savings Bank located at 508 South Main Street in Thomaston and handed the teller a note stating “Robbery 20’s, 50’s, 100’s, quiet.”  PROVOST also displayed what appeared to be a firearm.   After the teller gave him money, PROVOST told her to get money from the other teller.  The teller complied, and PROVOST left the bank with $1,471.  He fled the area in a vehicle driven by another man.

On December 9, 2017, PROVOST was arrested by Waterbury Police officers after they responded to a call of an overdose of a woman at a motel in Waterbury.  At the scene, officers recovered a silver and beige handled CO-2 powered BB gun, a black ski mask, a gray ski mask, $542 in cash, multiple packs of cigarettes.  Officers also seized a red Ford Explorer that had been used during several of the robberies.

Officers were able to revive the overdose victim, who had been staying in the same room as PROVOST.

PROVOST has been detained since his arrest.

Judge Underhill scheduled sentencing for July 19, 2018, at which time PROVOST faces a maximum term of imprisonment of 25 years.

This investigation is being conducted by the Federal Bureau of Investigation and the Waterbury, Southington, Thomaston, Putnam, Avon, Middlebury, Shrewsbury (Mass.) and Nashua (N.H.) Police Departments.  This case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.

John H. Durham, United States Attorney for the District of Connecticut, Albert Angelucci, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, Patricia Ferrick, Special Agent in Charge of the Federal Bureau of Investigation for Connecticut, and Anthony Campbell, Chief of the New Haven Police Department, today announced the unsealing of an indictment charging 19 individuals with federal narcotics offenses related to the trafficking of heroin and cocaine in Connecticut.

Seventeen of the 19 defendants were arrested yesterday, one defendant is in state custody, and one defendant is in the custody of U.S. Immigration and Customs Enforcement (ICE) in Michigan.

This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department that has included the use of court-authorized wiretaps, controlled purchases of heroin and cocaine, and seizures of bulk heroin and cocaine.  It is alleged that Duane Filyaw, of New Haven, operated a heroin and cocaine trafficking ring in which he conspired with others to purchase narcotics from suppliers and then distribute the drugs to other suppliers of street-level dealers in and around New Haven.

During the course of the investigation, law enforcement officers seized more than 200 grams of heroin and more than one kilogram of cocaine through supervised purchases and interdictions of on-going transactions.  In association with today’s arrests and the execution of multiple search warrants, officers seized three firearms, approximately 360 grams of fentanyl, approximately 340 grams of suspected heroin, approximately 80 grams of cocaine, more than $90,000 in cash, vehicles, jewelry and precious metals.

On April 19, 2018, a grand jury in New Haven returned a six-count indictment charging

DUANE FILYAW, 34, of New Haven
NEFTALI FERNANDEZ, a.k.a. “Nef,” 31, of Meriden
LEON GREENE, a.k.a. “Gotti,” 43, of Cheshire
RAFAEL SERRANO, 43, of West Haven
SALVATORE ORSINI, 27, of West Haven
CHRISTOPHER SERRANO, a.k.a. “Mancho,” 34, of Milford
NORMAN EDGARDO PEREZ, a.k.a. “Rico,” of Oakland, Calif.
LORENZO MORALES-ARAMBULA, a.k.a. “Viejo,” 56, of Mexico (in ICE custody)
NATIVIDAD DIAZ, a.k.a. “Nat,” 34, of Meriden
JONATHAN BRITO, 24, of Waterbury
HARRISON ELBA, 27, of Simsbury
GABRIEL ROMERO ESCALERA, 27, of San Juan, P.R.
BIRL JACKSON, 36, of New Haven (in state custody)
STEVEN McCOY, a.k.a. “S Dot,” 25, of New Haven
STEPHEN JONES, a.k.a. “EVX” and “Stevie D,” 33, of New Haven
HAKEEM BASIR, a.k.a. “Neil Ford,” 54, of Waterbury
CARLOS OVALLE, a.k.a. “Carlos Tirado,” 46, of East Hartford
NIGEL JONES, 36, of New Haven
SAMUEL CRUZ, 40, of New Haven

Each of the defendants is charged with conspiracy to distribute and to possess with intent to distribute heroin and cocaine.  If convicted of this charge, based on the type and quantity of narcotics charged, Filyaw, Fernandez, Greene, Perez, Morales-Arambula, Diaz,  Escalera and Ovalle face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; Rafael Serrano, Orsini, Christopher Serrano, Brito, Elba, Jackson, McCoy, Stephen Jones, Basir and Cruz face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years; and Nigel Jones faces a maximum term of imprisonment of 20 years.

The indictment also charges Rafael and Christopher Serrano, Fernandez, Filyaw, Orsini, Elba and Brito counts of possession with intent to distribute, and distribution of, heroin or cocaine. 

“As alleged, this drug trafficking organization, which used multiple sources of supply, has been responsible for the distribution of significant quantities of heroin and cocaine in Connecticut,” said U.S. Attorney Durham.  “The U.S. Attorney’s Office is committed to working closely with the DEA, FBI, and our state and local law enforcement partners to disrupt drug networks – especially those that distribute heroin, fentanyl and other dangerous opioids – and prosecute those responsible.”

“DEA is committed to investigating and dismantling large scale poly drug trafficking organizations like this one operating in the New Haven area,” said DEA Acting Special Agent in Charge Albert Angelucci.  “Let these arrests serve as an example to those who distribute heroin and cocaine in order to profit and destroy people’s lives, that DEA will aggressively pursue and hold you accountable.  This investigation demonstrates the strength of collaborative law enforcement efforts in Connecticut and our strong partnership with the U. S. Attorney’s Office.”

“All illicit drugs being sold in our communities are a problem, but the illegal distribution of opioids has proven to be the greater issue here and across this country,” said FBI Special Agent in Charge Ferrick.  “We at the FBI along with the DEA, New Haven Police Department and many other law enforcement partners are once again proving that we will make illicit drug sales in our communities a priority.  We will continue to dismantle groups like this in every city in our effort to save lives.”

“The New Haven Police Department is proud of the hard work put in by our officers and our state and federal partners in bringing those involved in illegal drug trade to justice,” said New Haven Police Chief Campbell.  “Those that poison our kids and endanger our citizens deserve to be behind bars.  We’re a safer city now that these arrests have been made.”

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 investigation is being led by the DEA New Haven Task Force, Federal Bureau of Investigation and New Haven Police Department.  The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.  The Connecticut Department of Correction, Milford Police Department and East Haven Police Department are also assisting the investigation.

The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.

John H. Durham, United States Attorney for the District of Connecticut, today announced that JOHNNY BELTRE, 35, a citizen of the Dominican Republic last residing in Cromwell, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 108 months of imprisonment, followed by three years of supervised release, for distributing heroin.

According to court documents and statements made in court, BELTRE trafficked heroin from his business, the Beltre Family Grocery store, located at 955 Broad Street in Hartford.  Between July 2015 and January 2016, the DEA’s Hartford Task Force made seven controlled purchases of heroin from BELTRE and his associates.  For each purchase, an individual arranged to purchase heroin from BELTRE through telephone calls, text messages or in-person meetings.  The individual then travelled to Beltre Family Grocery and provided BELTRE with money.  BELTRE then sent the purchaser to the nearby residences of two co-conspirators, Elvis de los Santos and Domingo de los Santos, to obtain the heroin.

On February 22, 2016, investigators in Connecticut learned that BELTRE and two other associates were arrested in the Bronx, N.Y., after BELTRE and his associates provided a courier with a bag containing approximately $500,000 in exchange for 20 kilograms of heroin.  On that date, a search of BELTRE’s residence in Cromwell revealed $433,577 in cash; a search of Elvis de los Santos’s residence revealed two bags of raw heroin, cutting agents, a digital scale and baggies, and a search of Domingo de los Santos’s residence revealed a bag of heroin, a bag of cocaine, cutting agents, a kilogram press, pieces of an unassembled kilogram press, baggies, scales, gloves, a vacuum sealer and $6,000 in cash.

BELTRE has been detained since his arrest.  On January 22, 2018, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin.

Elvis and Domingo de los Santos previously pleaded guilty to related charges and were sentenced to prison terms of 18 months and 20 months, respectively.

BELTRE faces immigration proceedings when he completes his prison term.

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.

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

John H. Durham, United States Attorney for the District of Connecticut, today announced that LUQMAN GOTTI, formerly known as Timothy Pennington, 37, of Manchester, has been charged by federal criminal complaint with receiving and soliciting child pornography.

GOTTI appeared this morning before U.S. Magistrate Judge Robert A. Richardson in Hartford.  GOTTI has been in state custody since November 13, 2017, when he was arrested on related state charges.

According to the criminal complaint, on June 14, 2017, GOTTI and a 13-year-old boy were communicating through the Kik messaging application after GOTTI responded to an ad the boy had posted on Craigslist.  After the boy informed GOTTI that he was 14 years old, GOTTI asked the boy for pictures and sent the boy a sexually explicit image.  In return, the boy sent sexually explicit pictures himself to GOTTI.  Later in the conversation, GOTTI told the boy “I already went to jail over a 14 year old not trying to go through that again.”  GOTTI then asked the boy for more sexually explicit pictures.  In response, the boy sent GOTTI another sexually explicit photograph and video of himself.

The complaint further alleges that GOTTI has a prior felony conviction under the name Timothy Pennington in the state of Connecticut for second degree sexual assault of a 14-year-old girl.  According to the complaint, GOTTI legally changed his name from Timothy Pennington.

If convicted, GOTTI faces a mandatory minimum term of imprisonment of 15 years, a maximum term of imprisonment of 30 years, and a fine of up to $250,000.  The penalties in this matter are enhanced based on GOTTI’s criminal history.

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

This matter is being investigated by the Federal Bureau of Investigation and the Manchester Police Department.  The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.

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

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

John H. Durham, United States Attorney for the District of Connecticut, announced that RODRIGO RAMIREZ, also known as “Rico,” 36, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 156 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.  RAMIREZ was an associate of RSGB.

On April 20, 2011, Benton recruited RAMIREZ to assist in the robbery of money and marijuana from Kevin Lee of New Haven.  On that date, Benton, RAMIREZ, Luis “Chewie” Padilla and Miles “Molly Rock” Price drove to the vicinity of Lee’s residence.  Benton, Padilla and Price walked to the residence and Ramirez stayed in the car.  Benton handed Price a .45 caliber handgun as they approached the back door.  After Lee answered the door, Lee tried to grab Price’s gun and lunged at Price with a knife.  Padilla then shot Lee once in the stomach, once in the back, and finally in the head.

RAMIREZ also traveled to Maine at Benton’s request to assist in RSGB’s crack cocaine distribution enterprise.

On September 2, 2014, RAMIREZ was arrested on federal narcotics distribution charges in Maine.  His case was transferred to the District of Connecticut for further prosecution and, on June 16, 2015, he pleaded guilty to one count of engaging in a pattern of racketeering activity and admitted his involvement in the murder of Kevin Lee and in a conspiracy to distribute crack cocaine in Maine.  RAMIREZ has been detained since his arrest.

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.

Benton, Padilla and Price pleaded guilty to various offenses stemming from this investigation, and admitted to participating in the murder of Kevin Lee.  Benton also admitted that he participated in three other gang-related murders and one attempted murder, and Padilla admitted that he participated in two other gang-related murders and two attempted murders.

On October 4, 2017, Benton was sentenced to 480 months of imprisonment, and on March 7, 2018, Price was sentenced to 144 months imprisonment.  Padilla awaits sentencing.

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

This investigation has been 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 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 Markle and Jocelyn Kaoutzanis.  A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.

John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an Indictment charging ISMAEL SANCHEZ COLON, 44, with violating the Sex Offender Registration and Notification Act (SORNA).

The indictment was returned on April 12, 2018, and SANCHEZ COLON was arrested this morning.  He appeared before U.S. Magistrate Judge Robert A. Richardson in Hartford and was ordered detained.

According to court documents and statements made in court, in December 2001, SANCHEZ COLON was convicted in the State of Wisconsin of the felony offense of causing a child between the ages of 13 and 18 to view sexual activity.  He was sentenced to 60 days of incarceration and five years of probation.  He also was ordered to comply with sex offender registration requirements for a period of 15 years after completion of his term of probation.

It is alleged that SANCHEZ COLON began residing in Connecticut in approximately April 2016, based on evidence that he obtained food stamps and Husky healthcare benefits at that time, and he has not registered as a sex offender in this state, as required by law.  During this time, SANCHEZ COLON has been registered in Puerto Rico, and it appears that SANCHEZ COLON has traveled to Puerto Rico since April 2016 to update his registration.

SANCHEZ COLON’s alleged non-compliance with sex offender registration requirements in Connecticut was discovered when he used his Waterbury address in the process of renewing his U.S. passport.  

If convicted of the offense, SANCHEZ COLON faces a maximum term of imprisonment of 10 years.

U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.

This matter is being 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, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that OLUMUYIWA YAHTRIP ADEJUMO, also known as “Ade,” “Slimwaco,” “Waco,” “Waco Jamon,” “Hade” and “Hadey,” 32, of Toledo, Ohio, waived his right to be indicted and pleaded guilty today in New Haven federal court to a fraud offense stemming from his role in a business e-mail compromise scheme.

According to court documents and statements made in court, ADEJUMO, his co-conspirator Adeyemi Odufuye and others targeted CEOs, CFOs, controllers and others at U.S. businesses using sophisticated cyber techniques to defraud the businesses.  ADEJUMO and his co-conspirators sent e-mails addressed to executives that were made to appear to be sent from the legitimate e-mail address of the CEO or other executive from the business.  ADEJUMO and his co-conspirators sent the e-mails with the intent of having the recipients send or wire money to bank accounts used by members of the conspiracy.

The investigation revealed that scheme participants controlled multiple e-mail and social media accounts used in the scheme and, in certain instances, sent e-mails and attachments containing malware to the intended recipients.

As a result of this scheme, victimized businesses have suffered more than $2 million in total losses.  One company in Torrington, Connecticut, lost more than $500,000.

In pleading guilty, ADEJUMO admitted that his participation in the scheme caused total losses of more than $100,000 to at least three victims in Ohio, Illinois and the District of Columbia.

ADEJUMO pleaded guilty to one count of conspiracy to commit wire fraud, an offense that carries a maximum term of imprisonment of 20 years.  He is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on July 26, 2018.

ADEJUMO is a citizen of Nigeria and a lawful permanent resident of the U.S.  He has been detained since his arrest on November 16, 2017.

Odufuye, also known as “Micky,” “Micky Bricks,” “Yemi,” “GMB,” “Bawz,” and “Jefe,” is a citizen of Nigeria.  On December 19, 2016, he was arrested in the United Kingdom where he was a student at Sheffield Hallam University in Sheffield, England.  Odufuye was extradited from the U.K. to the U.S. and, on January 3, 2018, pleaded guilty to one count of wire fraud and one count of aggravated identity theft.  He is detained while awaiting sentencing.

This matter is being investigated by the Federal Bureau of Investigation and the Connecticut Cyber Task Force.  The case is being prosecuted by Assistant U.S. Attorney David T. Huang.

U.S. Attorney Durham thanked the Department of Justice’s Office of International Affairs, the United Kingdom’s National Crime Agency, and the United Kingdom’s Metropolitan Police for their assistance in this case.

To contact the Connecticut Cyber Task Force, please call the FBI in New Haven at 203-777-6311.